Annual report of the
Telekom Slovenije Group and
Telekom Slovenije, d. d.
for 2021
Integrated reporting on sustainable development indicators in accordance with
the GRI Standards
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
Contents
THE TELEKOM SLOVENIJE GROUP IN 2021 ........................................................................................... 1
1.1 About the Telekom Slovenije Group .............................................................................................. 1
1.2 Operating highlights of the Telekom Slovenije Group in 2021 ................................................... 4
1.3 Letter from the President of the Management Board................................................................... 9
1.4 Statement of responsibility of the Management Board ............................................................. 12
1.5 Report of the Supervisory Board ................................................................................................. 13
1.6 Markets and companies of the Telekom Slovenije Group ......................................................... 16
1.7 Commitments and membership in associations ........................................................................ 19
1.8 Development strategy and plans ................................................................................................. 20
1.8.1 Vision, mission and values ................................................................................. 20
1.8.2 Business model ................................................................................................... 21
1.8.4 Strategic projects ................................................................................................ 26
1.9 Significant events and achievements in 2021 ............................................................................ 31
1.10 Corporate governance statement ................................................................................................ 33
1.10.1 Corporate Governance Policy ............................................................................ 33
1.10.2 Statement of compliance with the Code ........................................................... 34
1.10.3 Management and supervisory bodies ............................................................... 36
1.11 Share trading and ownership structure ...................................................................................... 54
2.2 Financial performance of the Telekom Slovenije Group ........................................................... 62
2.3 Investments in fixed assets .......................................................................................................... 64
2.4 Risk management .......................................................................................................................... 65
2.5 Compliance, competition protection and auditing ..................................................................... 76
2.5.1 Compliance and anti-corruption ........................................................................ 76
2.5.3 Auditing ................................................................................................................ 81
2.5.4 Regulation of electronic communications ........................................................ 82
2.6 Business environment and trends in the sector ........................................................................ 84
2.7 Marketing and sales ...................................................................................................................... 89
2.7.3 Sales of the Telekom Slovenije Group .............................................................. 98
2.7.4 Market communication ...................................................................................... 107
2.8 Network, technologies and IT ..................................................................................................... 110
2.8.2 Access networks ............................................................................................... 112
2.8.3 ICT and network services ................................................................................. 114
2.9 Sustainable operations ............................................................................................................... 116
2.9.2 Inclusion and participation of stakeholders ................................................... 123
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
2.9.6 Quality management systems .......................................................................... 150
2.9.7 Environmental impact ....................................................................................... 153
2.9.8 Supply chain ...................................................................................................... 163
2.10 Content according to GRI Reporting Standards ...................................................................... 167
2.11 Sustainability report assurance statement ............................................................................... 179
3.1 Financial statements of the Telekom Slovenije Group and Telekom Slovenije .................... 182
4 APPENDIX ................................................................................................................................................ 274
4.1 Telekom Slovenije Group companies ........................................................................................ 274
4.2 Abbreviations of technical terms ............................................................................................... 276
4.3 Alternative performance measures ........................................................................................... 280
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
1
1 THE TELEKOM SLOVENIJE GROUP IN 2021
1.1 About the Telekom Slovenije Group
1
Telekom Slovenije, d. d. (hereinafter: Telekom Slovenije) connects users and simplifies their lives, and ensures
security through a range of the most advanced ICT services and solutions. As the leading Slovenian provider of
communication solutions, Telekom Slovenije continuously strives for the development and introduction of new
innovative technologies, facilitates the connectivity of users in the best network in Slovenia and provides them
the most advanced services and an excellent user experience. Telekom Slovenije manages the largest and
fastest network that, according to users, is also the best and most reliable.
In addition to the national operator in Slovenia, the Telekom Slovenije Group is also present through its
subsidiaries in Kosovo, Croatia, Bosnia and Herzegovina, Serbia, Montenegro, North Macedonia and Germany.
The Telekom Slovenije Group manages and markets a backbone network in South-East Europe.
The activities of the Telekom Slovenije Group comprise:
x fixed and mobile communication services, and ICT solutions,
x digital and multimedia content and services,
x system integration and cloud computing services,
x the development and implementation of solutions for managing business content, and tools for managing
and monitoring operations,
x the construction and maintenance of telecommunication networks,
x cyber security and the Internet of Things (IoT),
x other services, such as financial services, eCare solutions, insurance, smart home, city, community and
industry solutions, and e-mobility, and
x the preservation of natural and cultural heritage in the Sečovlje Salina Nature Park.
Company: Telekom Slovenije, d. d.
Registered office: Ljubljana
Address: Cigaletova ulica 15, 1000 Ljubljana
Registration number: 5014018000
VAT ID number: SI98511734
Entry in the companies register: 1/24624/00, Ljubljana District Court
Number of shares: 6,535,478
Ticker symbol of no-par-value shares: TLSG
Telephone: +386 1 234 10 00
Website: https://www.telekom.si/en
Email: info@telekom.si
LinkedIn: telekom-slovenije
Facebook: TelekomSlovenije
Instagram: Telekom_Slovenije
Twitter: @TelekomSlo
YouTube: TelekomSlovenije
The shares of Telekom Slovenije are listed on the prime securities market of the Ljubljana Stock Exchange. See section
Telekom Slovenije Group companies
See sections 1.6 Markets and companies of the Telekom Slovenije Group and 4.1 Telekom Slovenije Group companies for
more information.
Contacts for investors, shareholders and other interested users
ir@telekom.si and skupscina@telekom.si
Contact for information regarding the annual report and sustainable development report
2
Telekom Slovenije, d. d., Cigaletova ulica 15, 1000 Ljubljana
Corporate Communications
pr@telekom.si
1
GRI GS 102-1, GS 102-3, GRI 102-5
2
GRI GS 102-53
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
2
Key brands of Telekom Slovenije Group companies
3
Company name
Description
Telekom Slovenije
is a corporate brand.
It is used for communication with all
stakeholder groups (users,
investors, business partners, suppliers, employees and the media).
The Company manages the following brands:
NEO – a platform for smart living that links the best solutions for home
and entertainment in one place.
VALÚ – a smart wallet that allows users to enjoy a free, mobile lifestyle
to the fullest extent.
IZI – a brand that addresses young and less demanding users for
whom a contemporary prepaid offer is important.
TSmedia is a corporate brand.
The Company
manages the following brands:
Siol.net – the leading Slovenian digital media.
Najdi.si – an access point to the Slovenian web.
TIS – the Slovenian telephone directory.
1188 – value-added call centre services.
ADsolution – a brand covering production services.
Bizi.si – a business directory.
Avtenta is a corporate brand.
The company covers medium
-sized and large corporations and public
institutions in Slovenia and the wider region. It combines advanced
and verified business solutions for the optimisation and improvement
of the efficiency of companies, organisations and public
administration.
GVO is a corporate brand.
The company provides comprehensive and environmentally friendly
solutions in the
areas of project design, surveying and the
construction, management and maintenance of telecommunications
networks.
3
GRI GS 102-2
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
3
Company name
Description
Piranske soline is a corporate brand.
The Company manages the following brands:
Solnce
– a food line.
Lepa Vida – a cosmetic line and the Thalasso Spa of the same name.
SSNP
(Sečovlje Salina Nature Park) – a park responsible for
preserving nature and maintaining exceptional natural and cultural
values.
TSinpo is the corporate brand of a disabled workers’ company.
The company primarily operates in the areas of support services and
the manufacture of cardboard sleeves.
IPKO is a corporate brand in Kosovo.
The company provides telecommunication services. Its portfolio
includes mobile and fixed telephony, internet and cable TV services.
Hej!
– covers the segment of young users.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
4
1.2 Operating highlights of the Telekom Slovenije Group in 2021
4
Challenges, opportunities and response to the COVID-19 pandemic
We ensured the smooth functioning of networks and the safety of employees
For the smooth and continuous functioning of telecommunication networks in extraordinary circumstances,
such as the COVID-19 pandemic, we have in place a certified business continuity management system through
which we responded rapidly and effectively to the need to change processes.
→ We continued to invest a great deal of effort in improving the stability of networks and coverage by the 4G
and 5G networks, the expansion of the necessary capacities, support for remote work, and the adaptation of
work methods in call centres and Telekom centres. For more information, see section 2.8 Network,
technologies and IT.
→ At all Group companies, we carried out an additional quarterly risk assessment of the impact of COVID-19,
which is separate from the general risk assessment. Group companies regularly monitor the impact of COVID-
19 and implement control-preventive measures. For more information, see section 2.4 Risk management.
→ We ensured the smooth functioning of work processes and the safety of employees. We organised remote
work for employees where feasible. We adopted strict protective measures and provided the necessary
equipment to protect advisers and field technicians. For more information, see section 2.9.5 Employees.
x
Improved user experience through enhanced digital operations and an expanded portfolio
Remote work and the increased scope of contactless operations with users continued due to measures in
connection with the epidemic. We provided users an increased number of voice, data and video services, and
adapted the portfolio. We thus improved their satisfaction and the user experience.
→ We introduced new services for residential and business users, including cyber security services, and
expanded the offer in the Online Shop.
→ We upgraded smart home, cities, factories and industry solutions.
→ We improved the Customer Satisfaction Index (CSI) amongst the users of mobile and fixed services by 2
percentage points. Online shoppers recognised purchases in the Loyalty Programme as the simplest online
instalment purchases in the country.
For more information, see section 2.7.3 Sales of the Telekom Slovenije Group.
Responsibility to the environment and society remains our policy
In accordance with strategic policies, we incorporate sustainability principles in business processes, products,
services and content to the greatest extent possible. This has not changed during the COVID-19 pandemic.
→ Parents and their children spend an increasing amount of time online. For that reason, we offered the Varen
splet (Safe Web) solution for their protection and safe internet use.
→ We continuously provide users with special needs the appropriately adapted services and terminal equipment.
The eCare service for safer living at home is available to the elderly and their family members. The number of
Slovenian municipalities that co-finance the aforementioned service is growing in the scope of the Safe and
Connected at Home project. For more information, see section 2.9.4 Users.
→ We have supported humanitarian, cultural, environmental, educational and scientific projects and
institutions, as well as Slovenian athletes and sporting organisations for many years as a sponsor or donator.
We earmarked EUR 1.999 million for those purposes in 2021. For more information, see section 2.9.3 Social
environment.
→ Electricity accounts for the highest proportion of energy sources that we use. We reduced electricity
consumption at Telekom Slovenije by 1.16%. For more information, see section 2.9.7 Environmental impacts.
→ To mark the 30th anniversary of mobile telephony in Slovenia, we invited citizens to bring their old mobile
phones to points of sale. From there, we will ensure that they are recycled in an environmentally friendly manner.
For more information, see section 2.9.7 Environmental impacts.
→ With our partner ELES, we developed the intelligent management of charging stations with advanced software
that ensures the remote, multi-level management of charging power. These solutions contribute to the reduction
of CO
2
emissions and are in line with the green goals of the European Union for the decarbonisation of society.
4
GRI GS 201-1
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
5
Financial indicators for the Telekom Slovenije Group, in accordance with the accounting report
in EUR thousand and %
2021 /
31
December
2021
2020 /
31 December
2020*
Index
21/20
Sales revenue
648,247
647,177
100
Other operating income
5,303
7,694
69
Total operating revenues
653,550
654,871
100
EBITDA
220,752
209,882
105
EBITDA margin = EBITDA / sales revenue
34.1%
32.4%
105
EBIT
51,696
42,603
121
Return on sales =
EBIT / sales revenue
8.0%
6.6%
121
Net profit from continuing operations
37,888
34,084
111
Loss from discontinued operations
0
-9,219
0
Net profit for the financial year
37,888
24,865
152
Assets
1,250,339
1,227,839
102
Equity
600,431
590,484
102
Return on equity (ROE)
6.4%
4.2%
151
Equity ratio
48.0%
48.1%
100
Net financial debt
399,009
378,377
105
NFD / EBITDA
1.8
1,8
100
Investment in property, plant and equipment (CAPEX)
208,173
173,045
120
EBITDA – CAPEX
12,579
36,837
34
Ratio of (EBITDA – CAPEX) to EBITDA (cash margin)
5.47%
17.6%
32
Number of employees as at the last day of the period
3,284
3,392
97
CAPEX as a proportion of operating revenues
31.9%
26.4%
121
* The operations of Planet TV for 2020 are included in the item 'discontinued operations'. The year 2019 is adjusted for a prior-period
correction in the financial statements of IPKO and thus of the Telekom Slovenije Group. This applies to all items in the tables and graphs
presented below.
For more information, see point 41 of the accounting report.
Definitions can be found in point 4.3 Alternative performance measures.
Other economic performance indicators
in EUR thousand
2021
2020*
Index 21/20
Distributed economic value
454,886
473,741
97
Value added
164,963
155,881
106
Value added per employee (in EUR)
49,420
45,989
107
Gross value added per employee (in EUR)
99,468
94,699
105
Labour costs
111,271
111,101
100
Corporate income tax, including deferred taxes
-7,187
-523
-
Payments to owners – dividends
29,275
22,769
129
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
6
Social indicators – employees
2021
2020*
Index 21/20
Number of employees
3,284
3,392
97
Employee turnover
6.1%
5.8%
105
Number of training hours per employee
30.3
18.6
163
Direct training costs in EUR thousand
1,397
916
153
Proportion of employees with a master’s degree and doctorate
5.0%
4.7%
106
Number of personal data protection training hours
354
261
136
Social indicators – community
Connections / users
2021
2020
Index
21/20
Mobile telephony**
1,962,600
1,873,876
105
Fixed voice telephony
508,184
521,068
98
Broadband connections**
477,621
464,258
103
Complaint rate as a proportion of all issued invoices
0.53%
0.57%
93
Costs earmarked for sponsorships and donations as a proportion of operating revenues
0.3%
0.3%
100
** Retail and wholesale.
Energy and environmental indicators
Telekom Slovenije
2021
2020*
Index
21/20
Electricity consumption (in million kWh)
73
74
99
Total direct energy costs (in EUR thousand)
9,122
9,117
100
Total waste (in tonnes)
5,213
8,900
59
-
Waste electrical and electronic equipment collected at Telekom centres (in tonnes)
1
2
55
Use of office paper (in EUR)
10,975
14,759
74
Use of fuel for company cars (in litres)
791,053
788,544
100
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
7
Sales revenue and number of employees of the Telekom Slovenije Group
EBITDA and EBITDA margin (as a percentage of sales revenue) of the Telekom Slovenije Group
EBIT and net profit of the Telekom Slovenije Group
716
715
665
647
648
3.673
3.530
3.387
3.392
3.284
0
500
1.000
1.500
2.000
2.500
3.000
3.500
4.000
0
100
200
300
400
500
600
700
800
2017 2018 2019* 2020* 2021
Number of
employees
Sales revenue in
EUR million
Net sales revenues Number of employees
169
186
215
210
221
23,6%
25,9%
32,3%
32,4%
34,1%
0%
5%
10%
15%
20%
25%
30%
35%
40%
0
50
100
150
200
250
300
2017 2018 2019* 2020* 2021
EBITDA margin in %
EBITDA
in EUR million
EBITDA EBITDA margin in %
4,6
17,9
41,2
42,6
51,7
9,0
33,3
0,9
24,9
37,9
0
10
20
30
40
50
60
2017 2018 2019* 2020* 2021
in EUR million
EBIT Net profit
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
8
Structure of the Telekom Slovenije Group’s equity and liabilities, and net financial debt
CAPEX – investments in property, plant and equipment in EUR million, and as a proportion of operating revenues
681
620
591
590
600
671 613
660
637 650
282
302
403
378
399
0
50
100
150
200
250
300
350
400
450
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2017 2018 2019* 2020* 2021
NFD
in EUR million
Equity, EUR million Liabilities, EUR million Net financial debt, EUR million
159
134
185
173
208
21,9%
18,3%
27,6%
26,4%
31,9%
0%
5%
10%
15%
20%
25%
30%
35%
0
50
100
150
200
250
2017 2018 2019* 2020* 2021
in EUR milion
Capex in mio EUR Share in net oper. revenues in %
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
9
1.3 Letter from the President of the Management Board
5
Dear Shareholders, Investors, Business Partners and Co-Workers,
Our way of life, users’ needs for communication services and our operations were affected by the COVID-19
pandemic again in 2021. We nevertheless ensured continuous development, as well as business continuity and
the smooth and safe functioning of services. Through the appropriate organisation of work, we provided
employees a safe work environment, and optimised our operations by adapting processes. In accordance with
the business continuity management system, which is certified according to the ISO 22301 standard, Telekom
Slovenije is capable of ensuring key services and processes, even in extraordinary circumstances.
Despite the challenges brought about by the COVID-19 pandemic, the Telekom Slovenije Group remains
financially stable. The Telekom Slovenije Group generated EUR 653.6 million in operating revenues in 2021,
which is in line with plans and similar to the level generated the previous year. Sales revenue totalled EUR
648.2 million, despite the fact that international voice traffic and traffic from the roaming by foreign users in our
mobile network were lower than in the pre-pandemic period. IPKO also recorded higher revenues in 2021 than
in the previous year.
Earnings before interest, taxes, amortisation and depreciation (EBITDA) totalled EUR 220.8 million at the
Telekom Slovenije Group level, an increase of 5% relative to 2020 and 5% higher than planned. The EBITDA
margin (i.e. EBITDA as a proportion of net sales revenue) was 34% at the Group level. Following the
calculation of income tax (including deferred taxes), the Telekom Slovenije Group generated a net profit of
EUR 37.9 million in 2021, which is 23% higher than planned and up 52% relative to 2020. Earnings before
interest and taxes (EBIT) reached EUR 51.7 million in 2021, an increase of 21% relative to 2020.
The Group earmarked EUR 208.2 million for investments in 2021. At a public auction for the allocation of radio
frequencies for the provision of public communication services to end-users, Telekom Slovenije secured the
radio frequency spectrum in the 700 MHz FDD band, 700 MHz SDL band, 1500 MHz band, 2100 MHz band,
3600 MHz band and 26 GHz band, for which it paid EUR 52.1 million. During the auction, we secured the entire
planned frequency spectrum, through which we will continue to provide users the most advanced services and
solutions in the future, with the best user experience. The 5G network, which we were the first in Slovenia to
introduce back in October 2020, is an important building block for a modern digital society, which we are
actively co-creating. We are introducing innovations, and developing smart city and community solutions.
Together with our partners, we are an important part of Industry 4.0, while we focus on the areas of public
safety and healthcare. We have the largest network: at the end of 2021, we covered 96.8% of the population
with the LTE/4G signal, 84% of the population with the LTE-A/4G+ signal and 38.8% of the population with the
5G signal. To that end, we also upgraded and expanded the fibre optic access network in 2021. We facilitated
the connection of an additional 42,150 households to that network. We thus facilitate the connection of more
than 411,000 households to the fibre optic network, meaning more than half of all Slovenian households.
At the end of December 2021, we held the highest market share in the mobile telephony (36.7%) and IPTV
(42.4%) services segments in Slovenia, where we also held a 27.8% share of the fixed broadband internet
access segment. IPKO held a 49.7% share of the mobile services market at the end of December 2021, and a
28.2% share of the broadband access market.
In 2021, we halted the sale of TSmedia and the merger of Avtenta with Telekom Slovenije. Given the ICT
market dynamic, Avtenta will continue to strengthen its position on the market of advanced e-business solutions
as an independent company within the Telekom Slovenije Group. Telekom Slovenije’s five-year cooperation
agreement on the purchase of electricity expired at the end of the year. The Company thus ceased to supply
electricity to end users, effective 1 January 2022.
5
GRI GS 102-14
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
10
As the result of the increased scope of digitalisation and remote work and distance learning, we dedicated
special attention to security through the development of services for residential and business users, such as the
state-of-the-art Cyber Security Operation Centre, in which we are developing solutions adapted to the needs of
companies of all sizes. We ensure our own protection in the scope of the aforementioned centre, while an
increasing number of companies and organisations are entrusting us with their cyber security.
We recorded several important milestones in 2021. Exactly 30 years have passed since the introduction of
mobile telephony and the internet in Slovenia. The driver of development throughout that period has been
Telekom Slovenije and its subsidiaries. It has also been three years since we entered Slovenian homes with
the voice control of content and smart home devices in Slovene. Voice control has become extremely popular:
the NEO platform was used by more than 130,000 users at the end of the year, with number of users rising by
a third in one year. Users of the VALÚ Smart Wallet, which we included in our portfolio of financial services in
2019, executed more than 2 million transactions in 2021, with the number of VALÚ users rising by more than
40% to exceed 100,000 by the end of the year. We have developed and made available a technical solution,
through which Zavarovalnica Sava offers the subscribers of our mobile services a ‘pay-by-use’ travel insurance,
meaning payment according to the actual number of days an individual is abroad. There is growing demand for
eCare services, while we are also expanding the network through which we offer telemedicine solutions.
We are developing and constantly upgrading sustainable solutions for smart cities and communities that
facilitate the monitoring of various environmental parameters. We have established systems in several
municipalities for measuring and calming traffic flows. Together with ELES and other partners, we have
developed an advanced solution for the efficient mass charging of electric vehicles that is managed remotely
and ensures the stability of the electricity power grid. The aforementioned solution is part of the concept for the
integrated development of the infrastructure for the mass charging of electric vehicles. These are solutions that
we are developing for an environmentally friendly future, as they contribute to the reduction of CO
2
emissions
and support the European Union’s goals for the decarbonisation of society.
Sustainable operations are integrated into all of our business processes, and we report on our activities in this
area every year in the scope of the annual report. With the aim of continuing the decarbonisation of society, we
have also envisaged in the Strategic Business Plan until 2026 the construction of additional solar power plants
through which we will increase existing own production of electricity considerably. We are gradually increasing
the proportion of electric cars in the vehicle fleet and will also increase the proportion of electricity obtained
from low-carbon sources. We will continue to focus on providing digital services to the highest number of
households possible and on the digitalisation of operations We monitor the proportion of reused electronic
equipment and are implementing the circular economy concept. We also contribute to the latter by collecting
old mobile phones to mark the 30th anniversary of mobile telephony in Slovenia, and in exchange planted
1,000 honey-bearing trees in the spring of 2022.
We develop services in a way that is responsible to users, with special attention given to children, adolescents
and vulnerable groups. We nurture positive, long-term relationships in the supply chain, and strive for a higher
proportion of Slovenian suppliers. We expect suppliers to respect environmental and ethical standards.
Dividends were paid to shareholders in 2021 in the gross amount of EUR 4.50 per share.
Where the nature of their work allowed, we facilitated remote work by employees again for a part of 2021.
Nevertheless, the pandemic brought us together, as a great deal of attention was given to communication with
and the inclusion of employees. Our employees are motivated and committed. This can be seen in the results
of measurements of organisational vitality, which were carried out by Telekom Slovenije, Avtenta and IPKO at
the end of the year. In the context of continuous technological development and the introduction of innovations,
we dedicate special attention to training and the strengthening of employee competences. In 2021, Telekom
Slovenije raised the average number of training hours per employee by 7% and nearly achieved the pre-
pandemic level, which was actually exceeded at the Telekom Slovenije Group level. We are delighted that our
activities are recognised in the environment in which we operate, as Telekom Slovenije received an award as
the most reputable employer in the sector and ranked as one of the most reputable employers in Slovenia. We
received the Socially Responsible Employer Certificate, and were internationally recognised as a TOP
Employer in January 2022.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
11
We successfully overcame the challenges that the pandemic brought in the form of altered life and
communication habits, and different work and operating methods. Superior quality and the constant
development of comprehensive solutions will remain the competitive advantage of the Telekom Slovenije
Group in the future. The Telekom Slovenije Group is planning to generate operating revenues of EUR 660.6
million, EBITDA of EUR 211.2 million and a net profit of EUR 27.9 million in 2022, while investing EUR 203.1
million. Development will continue to be based on ensuring a superior user experience and high standards of
social responsibility and sustainable development. With the trust of shareholders, other stakeholders and highly
trained and committed employees, we consolidated our position as the leading and most advanced provider of
comprehensive ICT services and solutions.
Cvetko Sršen,
President of the Management Board
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
12
1.4 Statement of responsibility of the Management Board
The members of the Management Board of Telekom Slovenije, d. d. responsible for compiling the annual report
hereby confirm the financial statements of Telekom Slovenije, d. d. and the Telekom Slovenije Group for the
year ending 31 December 2021, as well as the accounting policies applied and the notes to the financial
statements.
The members of the Management Board of Telekom Slovenije, d. d. hereby find that:
– to the best of our knowledge, the annual report of the Telekom Slovenije Group and Telekom Slovenije,
d. d. for 2021 and all its constituent parts, including the corporate governance statement and the
statement regarding non-financial operations, have been compiled and published in accordance with
valid legislation and the International Financial Reporting Standards as adopted by the EU;
– the accounting report and accompanying notes have been compiled in accordance with the relevant
financial reporting framework, and provides a true and fair picture of the assets, liabilities, financial
position and operating results of Telekom Slovenije, d. d. and the Telekom Slovenije Group as a whole;
– the selected accounting policies were applied consistently in the compilation of the financial statements
and any changes to the policies were disclosed, and that accounting estimates were made fairly and
with careful consideration, according to the principle of prudence and the diligence of a good manager,
and under the assumption that Telekom Slovenije, d. d. and the Telekom Slovenije Group are going
concerns; and
– the business report includes a fair presentation of the development and operating results of the
Company and of its financial position, together with a description of the principal types of risk to which
Telekom Slovenije, d. d. and the Telekom Slovenije Group as a whole are exposed.
The Management Board is also responsible for taking appropriate measures to secure assets, and for
preventing and detecting fraud and other irregularities and unlawful acts.
The tax authorities may, at any time within five years following the year for which tax was levied, audit
companies’ operations, which can result in an additional tax liability. The Management Board is not aware of
any circumstances that could give rise to any significant liability on this account.
Cvetko Sršen,
President of the
Management Board
Tomaž Jontes
Vice
-
President of the
Management Board
Dr Mitja Štular
Member of the
Management Board
Barbara Galičič Drakslar
Member of the
Management Board
Špela Fortin
Member of the
Management Board
and Workers
Director
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
13
1.5 Report of the Supervisory Board
Telekom Slovenije’s Supervisory Board comprises nine members, and the composition of that body changed
during 2021.
On 21 January 2021, the General Meeting of Shareholders recalled member of the Supervisory Board and
shareholder representative Igor Rozman, and elected Iztok Černoša, Aleksander Igličar, MSc, Marko Kerin and
Radovan Cerjak to serve four-year terms of office as members and shareholder representatives, effective 22
January 2021. With the election of new members to the Supervisory Board, the terms of office of the following
persons, who were appointed under the decision of Ljubljana District Court of 3 November 2020, were
terminated: Boštjan Koler, Dimitrij Marjanović and Štefan Belingar, MSc.
On 11 February 2021, the members of the Supervisory Board elected Iztok Černoša to serve as President of
the Supervisory Board, while Barbara Kürner Čad and Drago Kijevčanin remained in their functions as Vice-
Presidents, the former as shareholder representative and the latter as employee representative.
The terms of office of Supervisory Board members and shareholder representatives Barbara Kürner Čad and
Barbara Gorjup, MSc expired on 27 April 2021. On 18 June 2021, the Company’s General Meeting of
Shareholders elected Karla Pinter, MSc and Dr Jurij Toplak to four-year terms of office as members of the
Supervisory Board and shareholder representatives, effective on the day of their election by the General
Meeting of Shareholders. On 22 June 2021, the Supervisory Board elected Karla Pinter, MSc to serve as Vice-
President of the Supervisory Board.
On 21 October 2021, Telekom Slovenije’s Works Council appointed Drago Kijevčanin, Dušan Pišek and Jana
Žižek Kuhar to four-year terms of office as employee representatives on the Supervisory Board, effective 14
November 2021.
The composition of the Supervisory Board is diverse, as its members complement each other in terms of their
expertise, competences, experience, age, gender, work method and other aspects. This facilitates the effective
exchange of opinions and views at sessions.
The Supervisory Board met at 15 regular and two extraordinary sessions, and held two correspondence
sessions in 2021. During the course of 2021, it ensured the responsible and high-quality supervision of the
operations of Telekom Slovenije and the Telekom Slovenije Group. The Supervisory Board discussed different
aspects of operations and monitored the implementation of plans. Specific topics were discussed in advance by
the Supervisory Board’s committees. Based on the findings, proposals and careful assessment of committees,
the Supervisory Board adopted the appropriate decisions and continuously informed stakeholders following
sessions.
In accordance with the Corporate Governance Code, the Supervisory Board hereby declares that all costs in
connection with its work are disclosed in this annual report.
Most important topics of sessions of the Supervisory Board
The most important topics at sessions of the Supervisory Board in 2021 were linked to the monitoring of the
ordinary operations and development of the Company, and the composition of the Management Board. The
Supervisory Board and Management Board focused on defining the strategy, and on identifying and managing
business risks, which is important for the successful future operations of both Telekom Slovenije and the
Telekom Slovenije Group.
On 10 March 2021, Telekom Slovenije’s Supervisory Board concluded an agreement with the President and
three members of the Company’s Management Board on the termination of their employment contracts and
their recall from those positions. The Supervisory Board appointed Cvetko Sršen to serve as new President and
Dr Mitja Štular and Tomaž Jontes to serve as members of the Management Board. Their four-year terms of
office began on 10 March 2021. On 22 March 2021, the Supervisory Board appointed Barbara Galičič Drakslar
to serve a four-
year term of office as member of the Company’s Management Board, effective 31 March 2021.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
14
Within the scope of its competences, the Supervisory Board made the following responsible decisions in 2021:
x adopted the Strategic Business Plan of the Telekom Slovenije Group and Telekom Slovenije for the
period 2022 to 2026, with the annual plan for the 2022 financial year;
x adopted the audited annual report of the Telekom Slovenije Group and Telekom Slovenije for 2020;
x appointed the President, Vice-President and two members to the Management Board;
x gave its consent to the appointment of managing directors of subsidiaries;
x gave its consent to participation in the public tender for the allocation of radio frequencies for the
provision of public communication services to end-users;
x gave its consent to halt the merger of Avtenta with Telekom Slovenije; and
x gave its consent to halt of the sale of TSmedia.
In its supervision of the management of the operations of the Company and Telekom Slovenije Group
subsidiaries, the Supervisory Board was briefed regularly on the following in 2021:
x reports on the operations of the parent company and subsidiaries;
x implementation of the Strategic Business Plan of the parent company and subsidiaries;
x assessments of the performance indicators of the Company and subsidiaries in each period; and
x other information in connection with the operations of the parent company and subsidiaries.
The Supervisory Board continuously resolved conflicts of interest (statements according to the reference code
are published on the Company’s website). During the 2021 financial year, one member of the Supervisory
Board informed the latter of specific facts that could affect their independence.
The Supervisory Board updated its rules of procedure in April 2021. In January 2022, the Supervisory Board
tasked itself with assessing its work, and will adopt a resolution in 2022 regarding improvements to that work in
the future.
Work of the Supervisory Board’s committees
The Supervisory Board had four permanent committees in 2021. They were the Audit Committee, HR
Committee, Strategy Committee and Marketing and Technology Committee. A Nomination Committee was
appointed for the selection of candidates for members of the Supervisory Board, and was dissolved in April
2021, as it had completed all assigned tasks by the set deadline.
Committees discussed topics related to the Supervisory Board’s work and advised the latter in important
matters. This contributed to the improved work and effectiveness of the Supervisory Board.
The Supervisory Board continuously monitored the work of committees and the implementation of resolutions.
The work of committees is described in detail in the section 1.10.3 Management and supervisory bodies in the
business report section of the annual report.
Assessment of the work of the Management Board and Supervisory Board
The work of members of the Supervisory Board, including their work on committees, was professional and
focused on the effective performance of their functions. Members of the Supervisory Board regularly attended
sessions, were well-prepared for topics of discussion and put forth constructive proposals.
The Supervisory Board adopted competent decisions in accordance with its rules of procedure, the Company’s
internal acts and legally prescribed powers on the basis of professionally prepared written and oral information
provided by the Management Board. The work of the Supervisory Board was complemented, in terms of
content, by the proposals made by its committees.
Based on the above-described continuous monitoring and supervision of the operations and management of
Telekom Slovenije and Group companies during the 2021 financial year, and based on the annual report of the
Telekom Slovenije Group and Telekom Slovenije for 2021, as compiled and submitted by the Management
Board, the Supervisory Board assesses that the annual report and disclosures contained therein reflect the
actual situation and position of Telekom Slovenije Group subsidiaries and Telekom Slovenije.
The Supervisory Board assesses that the Management Board of Telekom Slovenije successfully managed the
Company’s transactions during the 2021 financial year and achieved established objectives, particularly taking
into account operations in the highly competitive environment in which the parent company and subsidiaries
operate.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
15
Approval of the annual report and the proposed use of the distributable profit for 2021
The Supervisory Board discussed the annual report of the Telekom Slovenije Group and Telekom Slovenije for
2021 at its session on 20 April 2022. Based on its review of the annual report and financial statements
(including the notes thereto), and its review of the Management Board’s proposal on the use of distributable
profit and the certified auditor’s report, the Supervisory Board confirmed the audited annual report of the
Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021.
Pursuant to the third paragraph of Article 272 of the Companies Act (ZGD-1), Telekom Slovenije’s Management
Board submitted the annual report of the Telekom Slovenije Group and Telekom Slovenije for 2021, together
with the auditor’s report for 2021, immediately after compilation and the issuance of the auditor’s opinion. The
annual report was discussed by the Supervisory Board at its session held on 20 April 2022. The annual report
of the Telekom Slovenije Group and Telekom Slovenije for 2021 was audited by the audit firm
PricewaterhouseCoopers, d. o. o., which issued an unmodified opinion regarding the financial statements of the
Telekom Slovenije Group and Telekom Slovenije. At its session held on 11 April 2022, the Audit Committee of
Telekom Slovenije’s Supervisory Board discussed the audited annual report of the Telekom Slovenije Group
and Telekom Slovenije for 2021 and found that the annual report was compiled in a timely, clear and
transparent manner, and in accordance with the provisions of the Companies Act (ZGD-1), the applicable
International Financial Reporting Standards, as adopted by the European Community, and other relevant
legislation. The Audit Committee had no comments with respect to the annual report for 2021, and proposed
that the Supervisory Board approve the annual report of the Telekom Slovenije Group and Telekom Slovenije
for 2021 in accordance with Article 282 of the ZGD-1.
Based on the auditor’s opinion, the position of the Audit Committee, and data and disclosures in the annual
report, Telekom Slovenije’s Supervisory Board assesses that the auditor performed its work independently and
professionally in accordance with valid legislation and business practices, that the annual report was compiled,
in all material aspects, in accordance with the requirements of the ZGD-1, and that the financial statements
fairly present, in all material aspects, the assets and financial position of the Telekom Slovenije Group and
Telekom Slovenije as at 31 December 2021, and their operating results and cash flows for the year then ended
in accordance with the International Financial Reporting Standards, as adopted by the European Community.
The Supervisory Board has no remarks regarding the auditor’s report. It also has no comments regarding the
annual report of the Telekom Slovenije Group and Telekom Slovenije for 2021 that would in any way inhibit its
decision to approve that report.
Thus, in accordance with the third paragraph of Article 282 of the ZGD-1, the Supervisory Board of Telekom
Slovenije hereby approves the annual report of the Telekom Slovenije Group and Telekom Slovenije for 2021.
The Supervisory Board approved the annual report for 2021 by the prescribed deadline, i.e. within one month
from its submission by the Company’s senior management.
When adopting the annual report, the Supervisory Board also took a position with regard to the corporate
governance statement, which is included in the business report section of the annual report of the Telekom
Slovenije Group and Telekom Slovenije for 2021, and assessed that they are a reflection of the actual
governance of the Company in 2021.
Iztok Černoša,
President of the Supervisory Board
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
16
1.6 Markets and companies of the Telekom Slovenije Group
6
The Telekom Slovenije Group comprises the parent company Telekom Slovenije and its subsidiaries. The
Telekom Slovenije Group operates in eight countries, seven countries in South-Eastern Europe and Germany.
The composition of the Telekom Slovenije Group and participating interests as at 31 December 2021 are
presented in the picture below, and in more detail on the website https://www.telekom.si/en/about-
us/company/telekom-slovenije-group.
Composition of Telekom Slovenije as at 31 December 2021
Telekom Slovenije is the founder of the Heart Foundation, the aim of which is to help the children of employees
of Slovenian Telekom Slovenije Group companies who have lost a parent or who are seriously ill. The majority
of the foundation’s funds are contributed by the employees of Slovenian Telekom Slovenije Group companies.
Changes in the composition of the Group in 2021
7
x On 12 May 2021, Telekom Slovenije halted the merger of the subsidiary Avtenta, napredne poslovne
rešitve, d. o. o. (hereinafter: Avtenta) with Telekom Slovenije. Avtenta, the leading partner for managing
and implementing SAP solutions and paperless operations on the Slovenian market, will continue to
strengthen its position on the market of advanced e-business solutions as an independent company within
the Telekom Slovenije Group.
x On 12 May 2021, Telekom Slovenije halted the sale of the subsidiary TSmedia, medijske vsebine in
storitve, d. o. o. (hereinafter: TSmedia). That process was concluded without the selection of a buyer.
TSmedia thus remains part of the Telekom Slovenije Group.
6
GRI GS 102-4, 102-6, 102-18
7
GRI GS 102-10
Slovenia
Croatia
Bosnia and
Herzegovina
Serbia
Montenegro
Kosovo
North
Macedonia
SIOL d.o.o. Zagreb 100%
SIOL d.o.o. Sarajevo 100%
SIOL d.o.o. Beograd 100%
SIOL d.o.o. Podgorica 100%
IPKO Telecommunications LLC 100%
SIOL DOOEL Skopje 100%
GVO, d.o.o. 100%
GVO Telekommunikation
GmbH, Germany, 100%
AVTENTA, d.o.o. 100%
TSmedia, d.o.o. 100%
TSinpo, d.o.o. 100%
SOLINE, d.o.o. 100%
Germany
Subsidiary Company, owned by subsidiary
OPTIC-TEL, d.o.o. 100%
INFRATEL, d.o.o. 100%
SIOL Prishtina LLC 100%
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
17
Management and governance of subsidiaries
As the parent company of the Telekom Slovenije Group (also referred to below as the Group), Telekom
Slovenije manages the operations of subsidiaries in the scope of corporate governance by defining
subsidiaries’ strategic policies and operational objectives, and by monitoring the achievement of established
objectives. The Telekom Slovenije Group’s strategy lays out uniform corporate governance within the Group,
which facilitates the optimisation of the operations of companies, ensures the improved flow of information and
creates synergies at the Group level.
Rules, criteria and mechanisms for managing and supervising Group companies are defined in the Telekom
Slovenije Group’s Corporate Governance Rules, which is in line with Telekom Slovenije’s Corporate
Governance Policy.
Management and supervisory tasks are also performed in accordance with Slovenian law and the applicable
laws in the home countries of individual subsidiaries. In all business areas, subsidiaries operate in accordance
with local legislation, business cooperation agreements with Telekom Slovenije, and with internal rules and
instructions adopted by the management of an individual subsidiary or the Management Board of the parent
company.
The management and supervision of the operations of Telekom Slovenije Group companies is based on the
following core principles:
x links with the Group’s strategy;
x governance in the form of management by objectives, where those objectives derive from the Group’s
strategy;
x clearly defined roles (tasks, competences and responsibilities) of those responsible for the management
and supervision of the Group; and
x simplicity and flexibility (the ability to adapt to changes in the organisation and operations of the Group).
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
18
Composition of management and governance bodies at subsidiaries of the Telekom Slovenije Group
SLOVENIA
GVO, d. o. o.
Managing Director: Dr Zef Vučaj
Supervisory Board: Dr Mitja Štular, Sabina Merhar (both since 28 May 2021), Helena Jakič (since 17 June
2021)
Borut Radi served as the company’s Managing Director until 31 July 2021. Dr Mitja Štular managed the
company temporarily from 1 August to 31 August 2021. During that time, his function as member of the
Supervisory Board was suspended.
Infratel, d. o. o.
Managing Director: Dr Zef Vučaj
Borut Radi served as the company’s Managing Director until 20 September 2021.
Optic-Tel, d. o. o.
Managing Director: Dr Zef Vučaj
Borut Radi served as the company’s Managing Director until 20 September 2021.
Avtenta, d. o. o.
Managing Director: Primož Kučič
TSmedia, d. o. o.
Managing Director: Rajko Gerič
Simon Furlan, MSc served as the company’s Managing Director until 31 July 2021.
Soline, d. o. o.
Managing Director: Klavdij Godnič
TSinpo, d. o. o.
Managing Director: Sandra Peršak
Danilo Tomšič, MSc served as the company’s Managing Director until 31 July 2021. Vesna Lednik served
as the company’s procurator until 30
April 2021.
OTHER COUNTRIES
IPKO Telecommunications LLC, Kosovo
CEO: Tomaž Seljak, MSc
Robert Erzin, MSc served as CEO until 3 November 2021.
SIOL, d. o. o. Zagreb, Croatia
Managing Director: Simon Furlan, MSc
Matjaž Pogačnik, MBA served as the company’s Managing Director until 31 July 2021.
SIOL, d. o. o. Podgorica, Montenegro
Managing Director: Simon Furlan, MSc
Matjaž Pogačnik, MBA served as the company’s Managing Director until 14 September 2021.
SIOL, d. o. o. Sarajevo, Bosnia and Herzegovina
Managing Director: Simon Furlan, MSc
Matjaž Pogačnik, MBA served as the company’s Managing Director until 3 October 2021.
SIOL DOOEL Skopje, North Macedonia
Managing Director: Simon Furlan, MSc
Matjaž Pogačnik, MBA served as the company’s Managing Director until 21 September 2021.
SIOL DOO BELGRADE, Serbia
Managing Director: Simon Furlan, MSc
Matjaž Pogačnik, MBA served as the company’s Managing Director until 17 September 2021.
SIOL Prishtina LLC, Kosovo
Managing Director: Simon Furlan, MSc
Matjaž Pogačnik, MBA served as the company’s Managing Director until 27 July 2021.
GVO Telekommunikation GmbH
Managing Directors: Borut Radi, Darko Gradišnik and Roman Mazi
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
19
1.7 Commitments and membership in associations
8
In accordance with the strategic objectives and Code of Ethics of the Telekom Slovenije Group, our employees
establish links and exchange experience and expertise through corporate or individual membership in
numerous professional organisations and associations. We thus build successful business links, create
development opportunities and ensure the professional positioning of the Telekom Slovenije Group. Group
companies are members or their employees serve as members of the boards of directors, expert and strategic
councils, and other bodies of the following organisations:
Slovenia – Telekom Slovenije
Membership in international organisations –
Telekom Slovenije
• Slovenian Association of Facilitators
•
Marketing Society
of Slovenia (also TSmedia): annual partners of
the society
•
European Institute for Compliance and Ethics (EICE)
• Slovenian Chamber of Commerce and Industry: participant in the
general meeting and member of the management board of the
Information Technology
and Telecommunications Association,
and member of the Section of Electronic Communications
Operators
•
American Chamber of Commerce (also TSmedia)
•
INIS – Institute for Non-Ionising Radiation: participant in the
Forum EMS project
•
Institute for Corporate Security Studies
•
Institute of Labour at the Faculty of Law in Ljubljana
• Institute for Labour Relations and Social Security at the Faculty
of Law in Maribor
•
Slovenian Chamber of Engineers (also GVO)
•
Slovenian Chamber of Crafts (also GVO)
•
Palsit: membership in the ITM and KIRVI clubs
•
Slovenian Institute of Auditors
•
Slovenian Institute for Standardisation
•
Slovenian Initiative for transition to IPv6: gold membership
• Slovenian Advertising Chamber (also TSmedia): membership on
the board of dire
ctors, membership on the council of members,
executive board and expert committee of the council of members
of MOSS (measurement of visits to Slovenian websites)
•
Slovenian Public Relations Association
•
Slovenian Oracle Users Association (SIOUG)
•
Slovenian Advertising Association (functioning under the
auspices of the Slovenian Advertising Chamber)
•
Slovenian Project Management Association
•
Slovenian Association of Risk Management and Insurance
Management
•
Smart cities and communities strategic development-innov
ation
partnership (SRIP PMiS)
•
Study Centre for Industrial Democracy
•
IAB – Institute for a Digital Society (also TSmedia)
•
Institute for Identification and Electronic Data Exchange
•
ICT Technology Network
•
Chamber for the Development of Slovenian Private Security
•
Association of Employers of Slovenia (also GVO)
•
Cable Operators Association of Slovenia
•
Slovenian Directors’ Association
•
Institute of Internal Auditors (IIA)
•
Slovenian Corporate Treasurers Association
• Association of Slovenian Digital Television Operators
• Association of Certified Fraud Examiners
(ACFE)
•
Broadband Forum
•
ECO –
European Association of the Internet
Industry
• European Telecommunications Network
Operators’ Association (ETNO)
•
GSM Association
•
GEANT: membership in the Trusted
Introducer group in the area of Computer
Security Incident Response Teams (CSIRT)
•
Institute of Electrical and Electronics
Engineers (IEEE, Slovenian Section)
•
Information Systems Audit and Control
Association (ISACA)
•
TM Forum – association of ICT service
providers, their suppliers, integrators and
manufacturers
•
RIPE Network Coordination Centre
(regional web register)
•
Search and Information Industry
Association (SIINDA) – TSmedia
Social, environmental and economic
initiatives in which Telekom Sloveni
je
and Group companies are included:
•
Family-Friendly Company certificate
• European Framework for Safer Mobile Use
by Younger Teenagers and Children
•
Activities for safer internet use –
SAFE.SI
(also TSmedia)
•
a code for regulating hate speech on
websites (Siol.net digital media)
•
Natura 2000, a European network of
special protection areas (Soline)
• Alliance of Companies Employing Disabled
People of Slovenia (TSinpo, as founding
member of interest association)
•
Slovenian Corporate Integrity Guidelines
• Commitment to respect human rights in the
course of operations in the scope of the
National Action Plan of the Republic of
Slovenia on the Respect of Human Rights
in Business
• Socially Responsible Employer Certificate
Kosovo – IPKO
•
Chamber of Commerce
•
American Chamber of Commerce
• European Investors Council
8
GRI GS 102-12, 102-13
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
20
1.8 Development strategy and plans
1.8.1 Vision, mission and values
9
9
GRI GS 102-16
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
21
1.8.2 Business model
We proactively adapt the business model with which we generate value for our stakeholders,
and respond to changes in the environment:
• Technological development: the latest ICT trends, the development of services and solutions for
users, and the provision of cyber security;
• Economic conditions: macroeconomic conditions and market competition;
• Social conditions: demographic changes, legislation, the protection of privacy and data, and
changing user habits; and
• Environmental impacts: climate change and the preservation of natural resources.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
22
We create value for stakeholders
Our resources
Created value
•
• EUR 600.4 million in capital
• EUR 653.6 million in operating revenues
• 8,582 shareholders: 93.42% are domestic
shareholders
• 411,000 Slovenian households connected to
the fibre optic network
• 1,418 GSM base stations, 908 UMTS base
stations, 1,443 LTE/4G base stations and
302 5G base stations
• 16 Telekom centres, 8 business centres and
93 authorised agents
• EUR 208.2 million in investments in
property, plant and equipment
• Code of Ethics and Compliance
Management Policy of the Telekom
Slovenije Group
• Gross dividend per share of EUR 4.5
• Net profit of EUR 37.9 million
• 1.96 million users of mobile telephony and
508 thousand users of traditional fixed
telephony at the Group level
• 369 thousand fixed broadband connections
in Slovenia
• More than 96% of the Slovenian population
is covered by the LTE/4G signal, while more
than 38% of the population is covered by the
5G signal.
• EUR 455 million in distributed economic
value
• Customer Satisfaction Index (CSI) in the
mobile and fixed services segment rose by 2
index points
• Overall transactional Net Promoter Score
(NPS) rose by 9 index points
Economic-
governan-
ce aspect
•
• 3,284 Group employees
•
90.9% of employees included in training;
30.3 hours of training per employee
•
development of internal advanced
development-training programmes
•
150 key and 65 perspective employees
•
32.6%: proportion of female employees
•
Participation in EU research and
development projects
•
EUR 1.999 million in sponsorships and
donations
•
Concern for the online security of users,
children and adolescents, disabled persons
and the elderly
•
Cyber Security Operation Centre
•
Regional fibre optic network
•
Management of information security in
accordance with ISO/IEC 27001 (Telekom
Slovenije and IPKO)
• More than 130,000 users of the NEO
platform, with the use of voice queries rising
by 65% in 2021 to exceed 10 million per
month
•
Our telemedicine services are used by 7
hospitals and 8 health centres, while we
facilitate the monitoring of vital functions at
one retirement home
•
Full Family-Friendly Company certificate
•
Socially Responsible Employer Certificate
for all four certified areas
•
Heart Foundation to assist employees’
children
•
155 employees who donated blood 275
times
•
Provision of a healthy and safe work
environment, respect for diversity and
promotion of intergenerational cooperation
•
3.78: organisational vitality index (ORVI),
employee commitment at Telekom Slovenije
•
Successful establishment of smart city
systems for several Slovenian companies
and municipalities
Social
aspect
•
• Energy management in accordance with
ISO 50001 (Telekom Slovenije) and
environmental management in accordance
with ISO 14001 (Telekom Slovenije and
GVO)
•
Responsible waste management
•
319 MWh of energy generated by own solar
power plants
•
Management of the Sečovlje Salina Nature
Park
• 1.16% reduction in electricity consumption at
Telekom Slovenije
•
Carbon footprint of 19.4 tonnes per
employee
•
323 electromagnetic radiation
measurements
•
1.1 tonnes of waste electrical and electronic
equipment collected at Telekom centres
•
13 electric and 10 hybrid vehicles in the
Telekom Slovenije Group
Environ-
mental
aspect
•
Contribution to SDGs
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
23
1.8.3 Strategic Business Plan of the Telekom Slovenije Group until 2026, including
the plan for 2022
10
The Telekom Slovenije Group implements its established strategy in accordance with adopted
strategic policies. To that end, the Group updates its strategy and drafts a business plan for the next
period every year. The Strategic Business Plan is the Telekom Slovenije Group’s core corporate
document. Defined in that document through its mission, vision, values, business model, objectives
and strategy are the Group’s future development and strategic policies.
The document includes the future business strategy of the Telekom Slovenije Group, which comprises
the parent company Telekom Slovenije, and its subsidiaries in Slovenia and abroad.
The Strategic Business Plan, business plan for 2022 and projections until 2026 were formulated on
the basis of data and forecasts available until November 2021, taking into account the regulatory
environment and forecasts of macroeconomic trends for the region in which the Telekom Slovenije
Group operates. Taken into account during preparations were analyses of the operations and market
shares of comparable European operators, analyses of the competition, development expectations
and trends in the telecommunications sector, as well as a SWOT analysis for Telekom Slovenije
Group companies.
Sustainable operations
When planning the Group’s future development, we pursue the Sustainable Development Goals
(SDGs) of the United Nations and key content of the latter’s 2030 Agenda, as well as the principles of
the ESG (environmental, social and governance) model, through which we prevent the risk of
greenwashing. We include the principles of sustainability in our operations, products, services and
content to the greatest extent possible, while we understand sustainable operations as the responsible
management of the economic-governance, social and ecosystem impacts of our operations.
Updated material aspects and topics, included in the sustainable aspects of the Telekom Slovenije
Group’s operations, take into account the expectations of international guidelines for the responsible
operations of telecommunication service providers and the other core activities that we perform, and
are in line with the priority areas of the sustainability guidelines of the European Telecommunications
Network Operators' Association (ETNO). The latter bind us to constructive cooperation in the
mitigation of climate change and digitalisation as the EU’s priority policies, and to the achievement of
the United Nations’ global Sustainable Development Goals, to which we can contribute through our
activities. Material aspects and topics are presented in point 2.9.1 About the annual report.
Competition and the business environment
The markets on which the Telekom Slovenije Group operates are characterised by a high level of
competition, as users can choose between the competitive portfolios of various operators. Users
demand high-quality services at low prices. At the same time, markets are becoming increasingly
saturated. Thus, the ability to attract new users is constantly diminishing. Increasingly stiff competition
results in the lowering of prices.
A drop in revenues from basic telecommunication services is expected to continue on the Slovenian
telecommunications market, which is developed and already in the phase of saturation. Telekom
Slovenije holds the highest market share in terms of mobile and IP TV services, and the second
highest market share in terms of broadband, pay TV and IP telephony services. Competitive operators
are gaining market share primarily through an aggressive pricing policy that Telekom Slovenije cannot
follow due to regulatory limitations. We maintain our market share and position as the leading operator
through continuous technological development, through the development of services and the provision
of the best mobile and fixed networks, through targeted investments in the expansion and upgrading
of the fibre optic broadband network in combination with the fixed wireless access (FWA) network,
through targeted promotional campaigns to attract new and maintain existing subscribers, through the
expansion of the portfolio outside the basic telecommunications activity and cross-selling, through the
best user experience, and through a comprehensive portfolio of ICT services and solutions. There will
be an increasing number of competitors with new services on the ICT solutions market, while
operators will consolidate ICT in the scope of their services.
10
GRI GS 103-1, 103-2, 103-3
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24
IPKO has been positioned as one of the strongest market brands in Kosovo for a number of years,
and is the leading operator in the mobile and fixed segments. IPKO is known on the market as an
innovative brand with the fastest mobile internet, the best coverage by the 3G and 4G networks, the
best mobile and fixed networks, and the best content. It is also recognised as the most reliable and
trustworthy brand, with the best user support. The fixed segment of the market has become
exceptionally demanding in recent years, with price-aggressive competition. Competitive operators
promote their packages using lower prices and higher internet speeds, and focus on improving and
upgrading their digital programme schemes with sports and other TV content. Nevertheless, IPKO, as
a premium brand, remains the leading provider of fixed services (DTV and internet), and maintains its
leading position and premium prices.
The superior quality of its services is and will continue to be the Telekom Slovenije Group’s
competitive advantage in the future. The Group’s development will continue to be based on high
standards of social responsibility and sustainable operations.
Strategic objectives of the Telekom Slovenije Group
Leader in user experience
The leading user experience is based on the best, most reliable and largest network,
while we create that user experience in accordance with the latest trends and changing
user habits. Through a superior user experience, we achieve short
-term business
objectives and strengthen our long-term strategic position to remain the first choice of
users. Crucial in that regard are digital excellence, ensuring secu
rity, contactless
operations and the dynamic adaptation to the needs and habits of the users of
communication services.
Digitalisation of operations
We will improve the efficiency of operations through accelerated digitalisation. In the
digital transformation process, we will digitalise key business processes involving users.
This, in turn, will significantly improve the speed and efficiency of the Telekom Slovenije
Group’s operations, and also facilitate the improved competitiveness of the Group in the
future.
Growth in ICT services
Growth in ICT services and solutions will be based on the existing superior LTE/4G
network, and the opportunities offered by fifth generation (5G) mobile networks. 5G
technology will facilitate the development of smart industry and smart cities, as well as
the introduction of virtual campus networks, which in turn will enable the continued
digitalisation of various verticals, such as energy, transportation, logistics, industry,
smart cities, healthca
re, and protection and rescue (public safety). The Telekom
Slovenije Group will ensure the digitalisation of society as a whole on that basis. Overall
growth will be achieved through organic growth and the consolidation of the Slovenian
ICT market.
Stabilisation of the level of revenues from the core activity in Slovenia
The basic telecommunications market is stagnating in Slovenia, while Telekom
Slovenije is under additional pressure from regulatory bodies. We will preserve
revenues through accelerated digitalisation and the development of digital services, the
further development of the network, the development of services based on 5G
technology, successful cooperation with regulators, and above all the best user
experience.
Consolidation on individual markets
The European telecommunications market is experiencing the consolidation of the
sector, the merging of operators and a changing portfolio of services on the one hand,
and the entry of new competitors on the ICT market on the other hand, which will further
impact the operations of operators. The Telekom Slovenije Group is actively involved in
consolidation processes on the markets where it operates.
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25
Optimal employee structure
The Telekom Slovenije Group will continue to ensure the optimal employee structure,
taking into account the needs of work processes at individual companies. We are
optimising the employee structure through the strategic planning of needs for staff, and
the appropriate organisational structure and job classification. We build the employer
brand through an effective remuneration system, and the development of knowledge
and competences.
Financial stability and the optimisation of all types of costs
We are implementing activities that facilitate the effective management of liquidity, and
ensure a high level of financial stability and the optimal level of borrowing. We
continuously optimise all types of costs in connection with the performance of individual
processes and the provision of services.
Creating a sustainable future
The Group actively identifies opportunities where it can contribute to the development of
the social and economic environment in which it operates, through its expertise, and
financial and other resources. The principles of sustainable development are built into
our operations, products, services and content, while we also responsibly manage the
economic, social and environmental impacts of our operations.
Key financial objectives of the Telekom Slovenije Group for 2022
Operating revenues EUR 660.6 million
EBITDA EUR 211.2 million
Net profit EUR 27.9 million
Investments EUR 203.1 million
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
26
1.8.4 Strategic projects
NATIONAL FIFTH GENERATION (5G) MOBILE NETWORK
11
Telekom Slovenije is establishing a national fifth generation (5G) mobile network that
brings users faster and more reliable mobile data transfer and reduced lags relative to
LTE/4G technology. At the end of 2021, the 5G signal covered 38.8% of the
population in the 2600 MHz, 3.600 MHz and 700 MHz frequency bands. We are
establishing the smart 5G infrastructure in such a way that we will be able to facilitate
numerous virtual dedicated networks for specific business verticals, such as eCare,
energy, transport, factories, smart cities and communities, etc. In the scope of upgrading the network
with 5G technology, we have already connected the first production vertical and thus brought
digitalisation closer to the manufacturing sector and the economy as a whole. For more information,
TETRA project
Telekom Slovenije is the coordinator of the TETRA project for the construction and maintenance of a
digital radio system for state authorities, which is being established primarily for the needs of the
Ministry of the Interior (Police). Together with our partners, we are responsible for project
management, the start-up of base stations, and the set-up of work stations for administrators and
dispatchers, including the necessary network equipment. We are also participating in the set-up of
central locations and the implementation of a system of archiving and application work for dispatchers.
In 2021, the Company and its partners set up the entire central TETRA network and the majority of
base stations, which are placed throughout Slovenia. Following implementation, we will be responsible
for maintaining base stations, providing a technical help desk for users, and maintaining central
equipment and (indirectly through subcontractors) the system of archiving and application work for
dispatchers.
eHealth and eCare solutions
Together with our partners, we have developed eHealth and eCare solutions, and are
thus pursuing our strategic policies and upgrading existing healthcare and social
security services in Slovenia. Through such solutions, which numerous municipalities
are co-financing for their citizens, we are helping address the population’s need for
healthcare and social services (ageing population and a rising number of chronic
diseases), helping resolve the problem of limited resources (at hospitals and
retirement homes, a lack of medical and care staff, financial sources, etc.) and helping shorten waiting
lists.
12
Smart cities, smart factories and industry
13
Internet of Things (IoT) services for smart cities and industry and the energy sector
represent the next milestone in the development of the fifth generation mobile
network. In 2021, we expanded the range of verified partner solutions that use NB-IoT
(Narrowband Internet of Things) and LTE-M (Long-Term Evolution Machine Type
Communication) communication technologies. The aforementioned technologies
facilitate the effective mass communication of devices connected to the Internet of
Things. In cooperation with the Faculty of Mechanical Engineering of the University of Ljubljana, we
established local coverage with the 5G signal, and included the faculty’s laboratory in our cloud
infrastructure in the scope of the demo smart factory centre.
Together with the Port of Koper, we are participating in the European 5G-LOGINNOV project, in the
scope of which we will set-up a development-test 5G network in the vicinity of the Port of Koper. For
more information, see section 2.8.1 Development of networks, services and projects.
We also established a solution that facilitates digitalisation, the simplified central management of
meters by utilities companies, and the automatic metering of the consumption of energy sources.
Together with partners, we designed an advanced smart city solution for the Citypark shopping mall,
and prepared a range of Internet of Things solutions for potential subscribers with the common name
of Modro mesto (Smart City).
11
SDG 9
12
SDG 3
13
SDG 11
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27
EXPANSION AND UPGRADING OF THE FIXED NETWORK
14
Through the expansion and upgrading of the fixed network, we facilitate access to state-of-the-art
telecommunication services by an increasing number of users in urban, suburban and rural areas. We
are investing intensively for the most part in the construction of a fibre optic access network through
which we provide users the infrastructure for all existing and future broadband services. To that end,
we also pursue the vision of the development of the communications network in Slovenia, which was
defined by the Slovenian government in state strategic documents. For more information, see section
2.8.2 Access networks.
EXCELLENCE OF THE USER EXPERIENCE
The excellence of the user experience is one of the Company’s key strategic initiatives. Within this
framework, we have identified user journeys, as well as key physical and digital touchpoints with the
user. We have established a transaction system for measuring customer satisfaction (NPS) at
touchpoints. We monitor that system daily, while the target level of customer satisfaction has been a
part of the personal objectives of the Company’s employees since 2021. We implement
recommendations to improve the user experience at touchpoints in our work processes. With the aim
of improving employee competences, we introduced the S.M.A.R.T. advanced training and
development programme, which defines standards for the excellence of the user experience at key
touchpoints.
The leading user experience is based on the best network. We strive to remain the first choice of
users in order to achieve our short-term business objectives and strengthen our long-term strategic
position. Priority tasks in connection with delivering on the brand promise are linked to customer
relations, digital excellence, security and dynamic insights regarding users. We monitor the success of
programmes and activities through key indicators for residential and business users.
Digitalisation of operations
In accordance with strategic policies and the digital transformation, we made important steps on the
Online Shop in terms of the development of web platforms and the upgrading of existing functionalities
and systems. Important innovations for users include the possibility of renewing a fixed subscriber
agreement with the purchase of a device, and the signature of subscriber-related documents when
purchasing products from subscriber agreements during the purchase process itself. We also
automated the process of entering into mobile subscriber agreements via the call centre. We made it
possible for My Telekom users to select programme options and manage traditional and eSIM cards.
1.8.5 Achievement of planned objectives by the Telekom Slovenije Group in 2021
Through numerous projects and activities, the Telekom Slovenije Group actively achieved the
objectives for 2021 set out in the Strategic Business Plan for the period 2021 to 2025, and the annual
business plan for 2021. An overview of activities and achievements is presented in the table below.
Strategic objectives from the Strategic Business Plan and their realisation in 2021
Strategic objective
Achieved in 2021
Leader in user
experience
x We introduced the Varen splet (Safe Web) that provides users
comprehensive protection in the mobile and fixed network.
x
The Customer Satisfaction Index (CSI) improved by 2 percentage
points in the fixed and mobile segment, and by 6 percentage points in
the business user segment. With an index of 109, we exceeded the
target value of the overall transactional NPS, which we measure at
21 touchpoints.
x We received an award for marketing excellence for the Excellence of
14
GRI GS 103-1, 103-2, 103-3
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28
Strategic objective
Achieved in 2021
the User Experience project.
x
We continued to upgrade the network and base stations at existing
locations,
modernised 4G and 5G equipment, and updated software.
We upgraded the network with 5G technology at additional locations
in the 2600 MHz, 3600 MHz and 700 MHz frequency bands.
x
Due to the rising volume of mobile data traffic, we increased network
capacities and improved external and internal coverage with the
mobile radio signal, in part through the construction of new locations.
x
We carried out activities to connect 5G technology with DSS
technologies, which facilitates the simultaneous use of the
frequency
spectre by LTE and NR technologies. We began activities to
discontinue the use of 3G technology.
x
There were 1,418 GSM base stations, 908 UMTS base stations,
1,443 LTE/4G base stations and 302 5G base stations connected to
Telekom Slovenije’s radi
o access network in Slovenia at the end of
2021. We cover more than 96% of the population with the LTE/4G
network and more than 38% of the population with the 5G network.
We included 241 small cells for internal coverage needs.
x
We built 42,150 new fibre optic connections and thus facilitate
connections to the fibre optic network by more than 411,000
households in Slovenia. We increased speeds on the fibre optic
access network, which now includes more than half of our total
connections.
Digitalisation of
op
erations
x My Telekom subscribers are able to comprehensively manage
subscriber relationships remotely, including the confirmation of orders
via the call centre using an electronic signature. A single login had
been made possible for the use of Telekom Slovenije’s services:
website and NEO.IO, mobile NEO application, Online Shop and
VALÚ.
x
We have closely linked the VALÚ Smart Wallet and VALÚ Moneta
services in a single ecosystem. We simplified registration in the
application for VALÚ Moneta users, and facilit
ated the viewing and
monitoring of the monthly spending limit.
x
We introduced the possibility of payment in the App Store via invoices
for telecommunication services.
Growth in ICT services
x We expanded the use of the telemedicine solution to a network of
hospitals (general hospitals in Celje, Novo mesto, Murska Sobota,
Jesenice and Šempeter, and the Golnik Clinic) and health centres in
the scope of the national telemedicine centre for the treatment of
COVID-19 patients at the University Medical Centre (UMC) in
Ljubljana. We were selected in an international tender issued by the
UMC in Ljubljana for the provision of technical telemedicine services
for the next two years. With that solution, we supported user cases in
the treatment of patients with chronic diseases at the Ljubljana
Community Health Centre and at private-sector partners.
x
We set up traffic guidance systems with smart parking lots and traffic
calming systems in several Slovenian municipalities. We upgraded
services with the mobile Modro mesto (Smart City) application.
x
We added the Varen splet (Safe Web) and Varen poslovni splet
(Safe
Business Web) services to fixed and mobile packages with internet
access. Those services protect users against harmful websites.
x
Cyber Security Operation C
entre services are used by more than 50
business users.
x
We provided for the cyber security of networks and services at the
locations of events during Slovenia’s presidency of the EU Council.
x
We established a digital radio system for Slovenian state authori
ties
in accordance with the TETRA standard. The system was placed in
production in December 2021.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
29
Strategic objective
Achieved in 2021
x The eCare service was included in the implementation of national
pilot projects in the following test environments: Maribor, Ptuj,
Poljčane and Tržič. The Saf
e and Connected at Home project was
joined by several new municipalities that co-
finance the eCare service
for their citizens. We also offer the eCare service to AMZS members
and their relatives.
Maintaining the level of
revenues from the core
activity in Slovenia
x We maintained the highest market share in both the mobile and IPTV
services segments in Slovenia. Our market shares were as follows:
36.7% of the mobile telephony segment, 27.8% of the fixed
broadband internet access segment and 42.4
% of the IPTV segment
(figures for fourth quarter of 2021; source: AKOS).
Consolidation on
individual markets
x The merger of Avtenta with Telekom Slovenije was halted. Avtenta
will continue to strengthen its position on the market of advanced e
-
business solutions within the Telekom Slovenije Group.
x
The sale of the subsidiary TSmedia was also halted, meaning that
company remains part of the Telekom Slovenije Group.
Optimal employee
structure
x We expanded the S.M.A.R.T. advanced training and development
programme for strengthening employee competences
to the area of
customer technical support.
x
The number of employees was down by 3.2% at the Group level and
by 2.1% at Telekom Slovenije.
x
Group employees received an average of 30.3 hours of
training, while
that figure was 32 hours at Telekom Slovenije. The proportion of
employees included in education and training was 91% at the Group
level.
Financial stability
x We consistently fulfilled the financial commitments set out in loan
agreements.
x
We secured long-term sources for the repayment of bonds and
financing of investments in the total amount of EUR 130 million, and
reduced the effective interest rate considerably.
x Reserve liquidity was secured in the form of revolving loans.
Responsibility to the
environment and
society
x We support sports, humanitarian, educational and cultural
organisations and projects through sponsorships and donations.
x
During the Olympic Games, we actively supported the Slovenian
Olympic Committee and Slovenian athletes in Tokyo.
Together with
Janja Garnbret, Tadej Pogačar and Primož Roglič, who appeared in
our market communication campaign, we donated EUR 15,000 to
thre
e associations that support the development of young athletes
and help the most vulnerable groups in our society.
x
Worthy of note in the field of education is our participation in the
Reading Badge, Happy School and Eco-Quiz projects.
x
In 2021, we also suppo
rted the LIFFe international film festival, which
was held live last year and was also accessible via the NEO platform.
x
At the end of the year, we earmarked a total of EUR 30,000
to five
humanitarian organisations that make life easier for the socially
disadvantaged, elderly people who live alone and persons with
special needs.
x
In the scope of the Creating a Green Future sustainability campaign,
through which we ensure the appropriate recycling of used mobile
phones, we will plant one honey-bear
ing tree in Slovenia for every
five used mobile phones in cooperation with the company Treecelet.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
30
Fulfilment of the business expectations of the Telekom Slovenije Group for 2021
Planned in 2021 Achieved in 2021
Operating revenues
EUR 653.0 million
EUR 653.6 million
EBITDA
EUR 210.6 million
EUR 220.8 million
Net profit
EUR 30.8 million
EUR 37.9 million
CAPEX
EUR 203.7 million
EUR 208.2 million*
* At a public auction for the allocation of radio frequencies for the provision of public communication
services to end-users in April 2021, Telekom Slovenije secured the radio frequency spectrum in the
700 MHz FDD band, 700 MHz SDL band, 1500 MHz band, 2100 MHz band, 3600 MHz band and 26
GHz band for EUR 52,078,177.00. The aforementioned amount was not planned in 2021.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
31
1.9 Significant events and
achievements in 2021
FIRST QUARTER
x In January, Telekom Slovenije made 5G
roaming possible for its users for the first
time in the 5G network of the Austrian
operator Hutchison Drei Austria.
x In the scope of the NEO platform, which
has brought an entirely new experience to
Slovenian homes in terms of managing TV
content through voice control functionality,
we were the first in Slovenia to offer users
cloud gaming.
SECOND QUARTER
x The number of NEO platform users
surpassed 100,000. Voice control of
content is becoming increasingly popular
among users. Users gave 8.6 million voice
commands in March (of which 185,000
were different commands), which
translates to an average of 126 voice
commands a month per user.
x At a public auction for the allocation of
radio frequencies for end-users, Telekom
Slovenije secured the radio frequency
spectrum in the 700 MHz FDD band, 700
MHz SDL band, 1500 MHz band, 2100
MHz band, 3600 MHz band and 26 GHz
band for EUR 52 million. Telekom
Slovenije will thus provide residential
users, companies and operators that roam
in its network the most advanced services
and solutions in the future, with the best
user experience.
x We continuously develop the network of
international fibre optic connections and
actively work with domestic and foreign
operators. In the scope of those activities,
we upgraded the fibre optic network with
two new connections: a fibre optic
connection from Ljubljana to Vienna via
Völkermarkt and Graz, as an alternative to
the existing route through the Karawanks,
and the Company’s own fibre optic
connection from Ljubljana to Milan.
x Telekom Slovenije established a
comprehensive range of smart city
solutions. Using those solutions, cities and
communities can monitor emissions and
water loss, improve energy efficiency,
ensure the smart management of parking
lots and traffic flows, provide smart
lighting, etc. To that end, a free public WiFi
network is being set up in an increasing
number of Slovenian cities in the scope of
the WiFi4EU project.
THIRD QUARTER
x Telekom Slovenije is the only
telecommunications operator participating
in the European 5G-IANA (Intelligent
Automotive Network Applications) project.
Based on different scenarios, project
partners are developing an open platform
that will facilitate the more rapid
introduction of comprehensive
technological services for the automotive
industry, mobility and the road
infrastructure. The project includes sixteen
partners from eight European countries.
x Slovenia celebrated 30 years of mobile
telephony in 2021. To mark that occasion,
Telekom Slovenije invited all users to bring
their old mobile phones to any point of
sale. Telekom Slovenije will ensure the
recycling of those devices, and plant 1,000
honey-bearing trees in cooperation with
the Slovenian Beekeepers’ Association
and the company Treecelet. The Post
Office and Telecommunications Museum
in Polhov Gradec opened an exhibition to
commemorate the 30th anniversary of
mobile telephony in Slovenia.
FOURTH QUARTER
x The results of measurements once again
showed that Telekom Slovenije has the
best mobile network in Slovenia, as it was
the best in all seven categories: video
experience, gaming, use of voice
applications, upload speed, download
speed, 4G availability and 4G coverage.
x To mark the first anniversary of the largest
5G network in Slovenia, Telekom Slovenije
enriched the Naj mobile packages with
free additional quantities of gigabytes.
More than 50 thousand Telekom Slovenije
users selected 5G services during the first
year.
x Telekom Slovenije developed a technical
solution, through which Zavarovalnica
Sava offers the subscribers of Telekom
Slovenije’s mobile services a new
innovative product, which is something
entirely new on the Slovenian insurance
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
32
market: the first ‘pay-by-use’ travel
insurance.
x Together with ELES and other partners,
Telekom Slovenije developed an advanced
solution for the efficient mass charging of
electric vehicles that is managed remotely
and ensures the stability of the electricity
power grid.
x In accordance with a General Meeting of
Shareholders resolution, Telekom
Slovenije published a treasury share
repurchase programme. That programme
will be valid until 18 June 2022.
x Telekom Slovenije’s five-year cooperation
agreement on the purchase of electricity
expired at the end of the year. Due to the
rationalisation of operations and its
continued focus on the development of the
most advanced ICT services and solutions,
the Company ceased to supply electricity
to end users, effective 1 January 2022.
Significant events after the balance sheet date are presented in the accounting report in point 46
Events after the reporting date.
Recognitions and awards received in 2021:
The Telekom Slovenije Group is committed to the excellence of its operations and portfolio, and to a
responsible market approach. The success of our operations is confirmed by numerous professional
recognitions and awards, and by trust shown by users.
x Trusted Brand 2021: Telekom Slovenije received the title of Trusted Brand for mobile
telephony and internet services.
x Socially Responsible Employer Certificate: Telekom Slovenije received the certificate for
all four areas of certification: organisational governance, occupational health and safety,
intergenerational cooperation and work-life balance.
x Best shop with mobile accessories for 2021: we were selected by Siol.net readers as the
best online shop with accessories.
x According to research regarding online purchases and loyalty programmes (Valicon,
September−October 2021), our Loyalty Programme was recognised for the Simplest online
instalment purchase.
x VideoTech – Innovation Awards 2021: the NEO platform was nominated for best innovation
of the year in the Pay TV Services category.
x WEBSI: TSmedia ranked third in the Video category for Siol.net’s Train Like Tadej Pogačar
project, and ranked third in the Best Digital Tool category for the Bizi business assistant.
x Best Annual Report for 2020: Akademija Finance presented the Company the award for
best 2020 annual report for the introductory, risk management and corporate governance
sections amongst non-financial institutions.
x Most Respected Employer: Telekom Slovenije ranks among the ten most respected
employers in Slovenia, and was recognised as the most respected employer in the
telecommunications and networks sector in 2021.
x Prizma: The Public Relations Society of Slovenia recognised Telekom Slovenije for its
comprehensive communication programme, ‘Welcome to the first 5G network in Slovenia’.
x Slovenian Advertising Festival: Telekom Slovenije received a silver medal in the Industrial
Excellence category for its Creating the Future project.
x Marketing excellence in 2021: Telekom Slovenije won in the Transformation category for its
Excellence of the User Experience (CEX) project. We increased customer satisfaction at
touchpoints by 20% in two years and by 50% over the four-year project period. Contributing to
that success were the strong support of senior management, a committed and dedicated team
of employees from different areas, and a well-planned, systematic and, above all, long-term
approach to the transformation of operations.
x Golden Creditworthiness Certificate of Excellence GVO received the AAA Golden
Creditworthiness Certificate of Excellence, which is awarded by Dun & Bradstreet.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
33
1.10 Corporate governance statement
Telekom Slovenije, d. d. (hereinafter: Telekom Slovenije) hereby issues its corporate governance
statement in accordance with the fifth paragraph of Article 70 of the Companies Act, and the
recommendations of the Corporate Governance Code and the Corporate Governance Code for
Companies with Capital Assets of the State.
The corporate governance statement is an integral part of the audited annual report of the Telekom
Slovenije Group and Telekom Slovenije, d. d. for 2021. It relates to the period 1 January 2021 to 31
December 2021. We also disclose significant events after the aforementioned period and up to the
publication of the statement. The corporate governance statement is accessible in electronic form, for
a minimum of five years from the date of its publication, on the Company’s website at
https://www.telekom.si/en/about-us/company/corporate-governance and in the Ljubljana Stock
Exchange’s electronic information system at http://seonet.ljse.si.
1.10.1 Corporate Governance Policy
Corporate governance at Telekom Slovenije and within the Telekom Slovenije Group is based on the
following principles and guidelines:
– the Corporate Governance Policy of Telekom Slovenije, d. d., which was initially adopted in
December 2011 and last updated on 13 February 2020,
– the Corporate Governance Rulebook of the Telekom Slovenije Group, which was adopted on
22 August 2017, and
– the Instructions on the Implementation of the Corporate Governance Rulebook of the Telekom
Slovenije Group, which were adopted on 18 February 2020.
The Corporate Governance Policy defines a system for segregating responsibilities and competences
between members of management and supervisory bodies, the role of Supervisory Board’s
committees and the protection of employees’ interests. It also defines groups of stakeholders, a
strategy for communication and cooperation with those groups, a policy governing links between the
Company and its subsidiaries, and a commitment to identify conflicts of interest and to ensure the
independence of members of the Supervisory Board and Management Board.
The Supervisory Board and Management Board adopt updates to the Corporate Governance Policy,
taking into account current guidelines in the area of corporate governance, as well as binding
regulations and best practices.
The Corporate Governance Rulebook of the Telekom Slovenije Group defines the rules, criteria and
mechanisms for managing and supervising companies in the Telekom Slovenije Group. The
Instructions on the Implementation of the Corporate Governance Rulebook of the Telekom Slovenije
Group defines the way in which the corporate governance of subsidiaries is implemented in individual
areas.
The Management Board and Supervisory Board function in accordance with the law and other
regulations, the Articles of Association of Telekom Slovenije, d. d. and the rules of procedure of the
Management Board and Supervisory Board.
The Corporate Governance Policy of Telekom Slovenije, d. d., the rules of procedure of the
Management Board and the other documents linked to corporate governance are publicly accessible
on the website www.telekom.si/en, under https://www.telekom.si/en/about-us/company/corporate-
governance.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
34
1.10.2 Statement of compliance with the Code
Telekom Slovenije, as a public interest entity whose securities are traded on the regulated securities
market, and as a company with capital assets of the State, took into account the corporate
governance recommendations set out in the following documents to the greatest extent possible
during the 2021 financial year:
x the Corporate Governance Code adopted by the Ljubljana Stock Exchange and the
Slovenian Directors’ Association on 27 October 2016. The code entered into effect on 1
January 2017 and is published on the website www.ljse.si;
x the Corporate Governance Code for Companies with Capital Assets of the State, which
was adopted by Slovenski državni holding, d. d. in March 2021, and the Recommendations
and Expectations of Slovenski državni holding from August 2020 (both documents are
published on the website www.sdh.si); and
x the Recommendations to Public Companies Regarding Notification from 19 November
2020, which entered into force on 23 November 2020. The above recommendations were
adopted by the Ljubljana Stock Exchange and are published on the website www.ljse.si.
In its work and operations, Telekom Slovenije also complies with the guidelines set out in the Code of
Ethics of the Telekom Slovenije Group of 1 February 2017 (published on the Company’s website at
www.telekom.si/en).
Statement of compliance with the Corporate Governance Code
Telekom Slovenije explains below deviations from individual recommendations set out in the
aforementioned code:
Diversity policy
Recommendations 4.1 and 4.3: Telekom Slovenije adopted a diversity policy in 2020 in accordance
with the recommendation of the code. The policy deviates in part from the recommendation, as it does
not specifically define objectives. Objectives are of a descriptive nature, but are not stated in numbers
or percentages, except with respect to gender diversity.
Disclosure of the composition and remuneration of the Management Board and Supervisory
Board
Recommendation 5.6: Telekom Slovenije deviates in part from this recommendation because, in
accordance with appendices C3 and C4 to the code, the composition and remuneration of members of
the Management Board and Supervisory Board are not an integral element of the corporate
governance statement, but are published in the another section of the annual report, while reference
to the relevant chapter is given in the corporate governance statement.
Justification of proposals for the election of Supervisory Board members
Recommendation 8.5: Telekom Slovenije deviated in part from this recommendation in 2021 because
the justification of a proposal for shareholders at the 33rd General Meeting of Shareholders held on 18
June 2021 regarding the election of new members of the Supervisory Board did not include an
assessment of potential conflicts of interest and an assessment of whether the proposed candidates
are independent in relation to the Company according to the criteria set out in the code. Those
aspects were verified during the candidacy procedure in accordance with legal provisions and the
recommendations of the code.
Annual training plan for members of the Supervisory Board and its committees
Recommendation 13.1: Telekom Slovenije deviates in part from the recommendation with respect to
the definition of an annual training plan for members of the Supervisory Board and the members of its
committees, as an annual plan as a unique document is not defined. Members of the Supervisory
Board have an online overview of Telekom Slovenije’s current internal training programme and attend
training in accordance with available dates.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
35
External evaluation of the assessment of the Supervisory Board
Recommendation 14.4: Telekom Slovenije did not comply with this recommendation, as an external
evaluation of the assessment of the Supervisory Board was not performed. The Supervisory Board is
planning an external evaluation for the 2022 financial year.
President of the Supervisory Board
Recommendation 15.3: Telekom Slovenije deviates in part from this recommendation in 2021, as the
President of the Supervisory Board also served as chair of the HR Committee from 4 November 2020
to 21 January 2021 and chair of the Nomination Committee that was appointed during that time.
Term of office of external members of the Supervisory Board’s committees
Recommendation 18.3: Telekom Slovenije deviated in part from this recommendation in 2021, as the
contract with the external member of the Audit Committee stated that the aforementioned contract
ceases to be in force on the day the term of office of the Supervisory Board expires, or on the day the
function of the external member of the Audit Committee is terminated based on a Supervisory Board
resolution. With the appointment of a new external member of the Audit Committee on 11 February
2021, that deviation from the recommendation was eliminated in the associated contract.
Succession system for the Management Board
Recommendation 20.1: Telekom Slovenije deviates in part from this recommendation, as it does not
have in place a succession system for the Management Board. However, internal candidates were
included in the process of appointing Management Board members in 2021 and were appropriately
evaluated in that process.
Independence of members of the Supervisory Board and its committees
Recommendation 23: Telekom Slovenije deviated in part from this recommendation in 2021, as a
member (and President) of the Supervisory Board, Boštjan Koler, was not independent from Slovenski
državni holding, d. d., where he was also a member of the Management Board from 3 November 2020
to 21 January 2021.
Disclosure of the remuneration of members of the Management Board and Supervisory Board
Recommendation 29.7: Telekom Slovenije deviates from this recommendation to a lesser degree
because the variable element of the remuneration of Management Board members is not disclosed
separately in terms of qualitative and quantitative criteria.
Publication of rules of procedure of bodies
Recommendation 29.9: Telekom Slovenije deviates in part from this recommendation, as it has only
published the rules of procedure of the Management Board on its website.
Statement of compliance with the Corporate Governance Code for Companies with Capital
Assets of the State
Telekom Slovenije explains below deviations from individual recommendations set out in the
aforementioned code:
Independence of management and supervisory bodies from SDH and the state
Recommendation 4.1: Telekom Slovenije deviated in part from this recommendation in 2021, as a
member (and President) of the Supervisory Board, Boštjan Koler, was not independent from Slovenski
državni holding, d. d., where he was also a member of the Management Board from 3 November 2020
to 21 January 2021. Recommendation 4.1 is in contravention of recommendation 6.7, which stipulates
an exception for a link with a shareholder.
Succession policy
Recommendations 6.1, and 6.2.1 to 6.2.3: Telekom Slovenije deviates in part from these
recommendations, as it does not have a succession policy in the form of a unique document. The
succession process involves the identification of key and perspective employees, as well as potential
successors. In the scope of the process, potential internal candidates are also assessed every time
members are appointed to the Management Board.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
36
Justification of proposals for the election of Supervisory Board members
Recommendation 6.8: Telekom Slovenije deviated in part from this recommendation in 2021 because
the justification of a proposal for shareholders at the 33rd General Meeting of Shareholders held on 18
June 2021 regarding the election of new members of the Supervisory Board did not include an
assessment of potential conflicts of interest. There was likewise no information provided as to whether
the proposed candidates are independent in relation to the Company according to the criteria set out
in the code. Those aspects were verified during the candidacy procedure in accordance with legal
provisions and the recommendations of the code.
Number of sessions of the Audit Committee
Recommendation 6.14.2: Telekom Slovenije deviates in part from this recommendation. Given the
current relevance and complexity of individual matters, the Supervisory Board’s Audit Committee met
at more sessions in 2021 than the recommended number.
Disclosure of the remuneration of members of the Management Board and Supervisory Board
Recommendation 8.3: Telekom Slovenije deviates from this recommendation to a lesser degree
because the variable element of the remuneration of Management Board members is not disclosed
separately in terms of qualitative and quantitative criteria. The Company does not disclose the
remuneration and other rights of the management staff of subsidiaries in its annual report. It does,
however, present that information for the three largest subsidiaries at the General Meeting of
Shareholders.
Disclosure of the costs of the Supervisory Board’s work
Recommendation 8.4: Telekom Slovenije deviates in part from this recommendation, as all costs
incurred by the Supervisory Board are not disclosed separately as stated in the recommendation
because they are not booked to a separate cost centre.
Compliance and integrity officer
Recommendation 11.2.1: Telekom Slovenije deviates in part from this recommendation, as the
position of compliance and integrity officer is not classified separately. The compliance and integrity
officer is appointed by resolution of the Management Board.
Recommendations and expectations of Slovenski državni holding
Telekom Slovenije adheres to the Recommendations and Expectations of Slovenski državni holding to
the greatest extent possible. Telekom Slovenije’s position regarding the recommendations and
expectations is published on the Company’s website at: https://www.telekom.si/o-podjetju/upravljanje-
druzbe/Opredelitev-glede-priporocil-in-pricakovanj-SDH-ANG-2020.pdf.
1.10.3 Management and supervisory bodies
Telekom Slovenije is a public limited company. Its bodies comprise the General Meeting of
Shareholders, Supervisory Board and Management Board. The Company has a two-tier system of
governance. It is managed by the Management Board and supervised by the Supervisory Board.
General Meeting of Shareholders and shareholders’ rights
We ensure the equal treatment and consistent exercising of the rights of all shareholders in
accordance with the corporate governance system and a communication strategy for shareholders
and other stakeholders.
The convening, competences and functioning of the General Meeting of Shareholders are set out in
the ZGD-1, the Company’s Articles of Association and the rules of procedure of the General Meeting
of Shareholders. The Company convenes the General Meeting of Shareholders at least once a year,
when it benefits the Company or whenever required in accordance with the law and its Articles of
Association. The date that the convening of the General Meeting of Shareholders is published on the
website of the Agency of the Republic of Slovenia for Public Legal Records and Related Services is
deemed the official date of that convocation and the date from which the deadlines apply.
Shareholders exercise their rights at the General Meeting of Shareholders in person or through
authorised representatives.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
37
Shareholders have the right to participate in the management of the Company, the right to dividends
and the right to an appropriate share of residual assets after the Company’s liquidation or bankruptcy.
Shareholders exercise their right to information at the General Meeting of Shareholders. Detailed
information regarding shareholders’ rights set out in the first paragraph of Article 298, the first
paragraph of Article 300, Article 301 and Article 305 of the ZGD-1 are available on the Company’s
website at (https://www.telekom.si/en/investor-relations/shareholders-meeting).
Shareholders who are entered in the central register of securities at KDD (Central Securities Clearing
Corporation) at the close of business seven days prior to the General Meeting of Shareholders (cut-off
day) are entitled to participate and vote at the General Meeting of Shareholders, if they have
registered in writing at least three days prior to the General Meeting of Shareholders.
Telekom Slovenije’s shareholders met at the 33rd General Meeting of Shareholders held on 18 June,
when 80.76% of shares with voting rights were represented. At the General Meeting of Shareholders,
the Company’s shareholders:
x were briefed on the written report of the Supervisory Board on the approval of the annual report of
the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2020, on the remuneration of the
Company’s Management Board and Supervisory Board and the management bodies of
subsidiaries in 2020, and on information regarding the remuneration of members of the
management and supervisory bodies of the Company and the management bodies of its
subsidiaries in 2020;
x approved the proposed use of distributable profit for the 2020 financial year;
x conferred official approval on the Management Board and Supervisory Board for the 2020
financial year;
x were briefed on the expiry of the terms of office of Supervisory Board members, and elected two
new members to that body;
x defined the remuneration of members of the Supervisory Board; and
x authorised the Company’s Management Board to purchase and dispose of treasury shares.
No challenges against resolutions adopted by the General Meeting of Shareholders were announced.
The resolutions of General Meetings of Shareholders and documentation from previous meetings are
published on the Company’s website.
According to the Company’s financial calendar, the 34th General Meeting of Shareholders for 2022 is
planned for 16 June 2022.
Management Board
15
Composition of the Management Board
Pursuant to the Company’s Articles of Association, any person who, in addition to meeting the relevant
legal requirements, has a university-level qualification, at least five years of work experience in
management positions and active knowledge of at least one foreign (global) language, and who fulfils
other conditions defined by the Supervisory Board may be appointed as a member of the
Management Board. The Supervisory Board also takes into account the Policy Governing the Diversity
of the Management Board and Supervisory Board when selecting candidates to serve as members of
the Management Board. These conditions do not apply to the Workers’ Director as member of the
Management Board. The conditions and criteria that apply to the aforementioned person are defined
jointly by the Supervisory Board and Works Council.
Telekom Slovenije’s Management Board comprises five members who were appointed for a four-year
term of office.
On 10 March 2021, Telekom Slovenije’s Supervisory Board concluded an agreement with the
President and three members of the Company’s Management Board on the termination of their
employment contracts and their recall from those positions. Accordingly, the terms of office of the
President of the Management Board Tomaž Seljak, MSc and members Dr Vida Žurga, Matjaž Beričič,
15
GRI GS 102-18, GS 405-1
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
38
MSc and Tomaž Jontes were terminated, effective 10 March 2021. The Supervisory Board appointed
Cvetko Sršen to serve as new President and Dr Mitja Štular and Tomaž Jontes to serve as members
of the Company’s Management Board. Their terms of office began on 10 March 2021.
On 22 March 2021, the Supervisory Board appointed Barbara Galičič Drakslar to serve as member of
the Company’s Management Board, effective 31 March 2021.
The composition of the Management Board was as follows in 2021:
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
39
Name
Office
Area of work on the Management
Board
First
appointment
to function
Completion
of
function/term
of office
Gender
Nationality
Year
of
birth
Education /
professional profile
Membership in
supervisory bodies of
unaffiliated companies
Cvetko
Sršen
President
Human Resource Management and
General Affairs, Public Relations,
Legal Affairs and Regulation, and
Security,
Compliance and Risk Management,
and the subsidiaries: IPKO and
TSinpo
10 March
2021
9
March
2025
Male
Slovenian
1966
Holds a master’s
degree in
intercultural
mana
gement.
GEN energija, d.
o. o.
INFRA izvajanje
investicijske dejavnosti,
d.
o. o.
Tomaž
Jontes
Member
Member
Vice
-
President
B2C, B2B, Central Marketing, and the
subsidiaries: Avtenta and Soline.
22 June
2020
10 March
2021
22 March
2021
10 March
2021
22
March
2021
9
March
2025
Male
Slovenian
1971
Holds a bachelor’s
degree in economics.
Triglav, pokojninska
družba, d.
d.
Dr Mitja
Štular
Member
ICT and Network Services, Access
Networks and the subsidiaries: GVO,
SIOL Zagreb, SIOL Podgorica, SIOL
Sarajevo, SIOL Skopje, SIOL DOO
Belgrade and SIOL Prishtina.
10 March
2021
9
March
2025
Male
Slovenian
1970
Holds a doctorate in
electrical
engineering.
Barbara
Galičič
Drakslar
Member
Finance and Accounting, Controlling
and
Strategy, Wholesale Market,
Procurement, Logistics and Real
Estate, Internal Auditing and
the subsidiary: TSmedia.
31
March
2021
30 March
2025
Female
Slovenian
1971
Holds a bachelor’s
degree in economics.
Špela
Fortin
Member of the
Management
Board
and
Workers’
Director
Responsibilities derive directly from the
law.
14 September
2019
13
September
2023
Female
Slovenian
1978
High school
graduate.
Tomaž
Seljak,
MSc
Vice-President
President
Corporate Governance, Human
Resource Management and General
Affairs, Public Relations, Legal Affairs
and Regulation, Compliance, Risk
Management, Security
and the
subsidiaries: IPKO and TSinpo.
1 May
2014
10 December
2019
10 December
2019
10 March
2021
Male
Slovenian
1972
Holds master’s and
bachelor’s degrees in
electrical
engineering.
Dr Vida
Žurga
Member
Finance and Accounting, Controlling
and Strategy, Wholesale Market,
1 February
2019
22 January
2020
Female
Slovenian
1984
Holds a doctorate in
science and a
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
40
Name
Office
Area of work on the Management
Board
First
appointment
to function
Completion
of
function/term
of office
Gender
Nationality
Year
of
birth
Education /
professional profile
Membership in
supervisory bodies of
unaffiliated companies
Vice-President
Procurement, Logistics and Real
Estate,
Internal Auditing and
the subsidiary: TSmedia.
22 January
2020
10 March
2021
bachelor’s degree in
economics
.
Matjaž
Beričič,
MSc
Member
ICT and Network Services, Access
Networks and the subsidiaries: GVO,
SIOL Zagreb, SIOL Podgorica, SIOL
Sarajevo, SIOL Skopje, SIOL DOO
Belgrade and SIOL Prishtina.
10 December
2019
10 March
2021
Male
Slovenian
1974
Holds master’s and
bachelor’s degrees in
electrical
engin
eering.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
41
Work of the Management Board
The Management Board manages transactions and represents the Company independently, and is
liable for its own actions in that regard. It makes decisions that are in line with the Company’s strategic
objectives, taking into account the principles of sustainable development and the interests of
shareholders and other stakeholders. The areas of responsibility of specific Management Board
members are set out in the Rules of Procedure of the Management Board to which the Supervisory
Board grants its consent.
The Management Board met at 63 regular and nine correspondence sessions in 2021.
It dedicated special attention to the establishment of a national fifth generation (5G) network, and to
the preparation and implementation of preventive measures following the declaration of the COVID-19
pandemic.
The Management Board adopted decisions regarding the following:
x the halting of the sale of TSmedia; and
x the halting of the merger of Avtenta with Telekom Slovenije.
The Management Board also adopted numerous business decisions and carried out activities that
included the following:
x ensuring development and the achievement of established objectives;
x the introduction of new and upgraded services;
x the development of cyber security, healthcare, financial, transport, logistics and smart city
services;
x the adaptation of network capacities as the result of the mass migration of users to work from
home and distance learning;
x the adaptation of processes for business continuity during the pandemic;
x additional attention to ensuring cyber security during the pandemic;
x the development of new opportunities to use mobile networks in connection with the
introduction of the 5G network, and ensuring a superior user experience;
x the upgrading of the comprehensive portfolio of ICT services and solutions;
x the optimisation and rejuvenation of the employee structure; and
x the optimisation of business processes.
Remuneration of the Management Board
The remuneration, composition and amount of earnings of the Management Board are set out in
members’ employment contracts, taking into account the Act Governing the Earnings of Management
Staff at Companies Under the Majority Ownership of the Republic of Slovenia and Self-Governing
Local Communities (ZPPOGD).
The Supervisory Board sets objectives for the Management Board for every financial year, based on
the approved annual business plan and certain key indicators. The Management Board’s objectives
comprise quantitative and qualitative objectives, as well as financial and non-financial objectives that
are defined for the purpose of monitoring the performance of Management Board members.
The conditions for profit sharing by the Management Board are governed by the Company’s Articles of
Association. The earnings of the Management Board in 2021 are presented in the accounting report in
point 41 Transactions with related parties.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
42
Supervisory Board
Composition of the Supervisory Board
16
The Supervisory Board comprises nine members, six of whom are shareholder representatives and
three of whom are employee representatives.
When selecting candidates for Supervisory Board members, diversity in terms of knowledge, skills,
experience and other personal circumstances of candidates (gender, age, education, etc.) is taken
into account, in addition to the required level of qualifications, reputation and integrity.
At the 32nd General Meeting of Shareholders held on 21 January 2021, shareholders recalled
member of the Supervisory Board and shareholder representative Igor Rozman, and elected Iztok
Černoša, Aleksander Igličar, MSc, Marko Kerin and Radovan Cerjak to serve four-year terms of office,
effective 22 January 2021. With the election of new members to the Supervisory Board, the terms of
office of the following persons, who were appointed under the decision of Ljubljana District Court of 3
November 2020, were terminated: Boštjan Koler, Dimitrij Marjanović and Štefan Belingar, MSc.
On 11 February 2021, the members of the Supervisory Board elected Iztok Černoša to serve as
President of the Supervisory Board, while Barbara Kürner Čad and Drago Kijevčanin remained in their
functions as Vice-Presidents, the former as shareholder representative and the latter as employee
representative.
The terms of office of Supervisory Board members and shareholder representatives Barbara Kürner
Čad and Barbara Gorjup, MSc expired on 27 April 2021. On 18 June 2021, the Company’s General
Meeting of Shareholders elected Karla Pinter and Dr Jurij Toplak to four-year terms of office as
members of the Supervisory Board and shareholder representatives, effective on the day of their
election by the General Meeting of Shareholders. On 22 June 2021, the Supervisory Board elected
Karla Pinter, MSc to serve as Vice-President of the Supervisory Board.
On 21 October 2021, Telekom Slovenije’s Works Council appointed Drago Kijevčanin, Dušan Pišek
and Jana Žižek Kuhar to four-year terms of office as employee representatives on the Supervisory
Board, effective 14 November 2021.
The composition of the Supervisory Board is diverse, as its members complement each other in terms
of their expertise, competences, experience, age, gender, work method and other aspects. This
facilitates the effective exchange of opinions and views at sessions.
The Supervisory Board comprised the following members in 2021:
16
GRI GS 102-18, 405-1
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
43
Name
Office
First
appoint-
ment to
function
Completion
of function/
term of
office
Shareholder/
employee
representative
Particip
ation in
Supervi
sory
Board
session
s with
respect
to total
number
Gen-
der
Nationality
Year
of
birth
Education /
professional
profile
Independ
ence
in
accordan
ce with
Article 23
of the
Code
Existenc
e of
conflicts
of
interest
during
the
financial
year
Members
hip in
supervis
ory
bodies of
other
compani
es
Employment
Iztok Černoša
President
22 January
2021
21 January
2025
Shareholder
representative
20/20*
Male
Slovenian
1984
Holds a
bachelor’s
degree in civil
engineering
/ technology
YES
NO
Istrabenz
Turizem,
d. d.,
turizem in
storitve
Managing Director
of RGP d.o.o.
Karla Pinter,
MSc
Vice-
President
18 June
2021
17 June
2025
Shareholder
representative
9/9*
Fem
ale
Slovenian
1982
Holds a
bachelor's
degree in law
and a
master’s
degree in
law.
YES
NO
Director General of
the Internal Market
Directorate at the
Ministry of
Economic
Development and
Technology
Radovan
Cerjak
Member
22 January
2021
21 January
2025
Shareholder
representative
20/20*
Male
Slovenian
1967
Holds a
bachelor's
degree in
law.
YES
NO
Slovensk
a
tiskovna
agencija,
d. o. o.,
Ljubljana
Attorney at law
Aleksander
Igličar, MSc
Member
22 January
2021
21 January
2025
Shareholder
representative
20/20*
Male
Slovenian
1962
Holds a
master's
degree in
economics /
accounting.
YES
NO
Iskra
Mehaniz
mi
Holding,
Senior lecturer at
the University of
Ljubljana’s faculty
of economics
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
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Name
Office
First
appoint-
ment to
function
Completion
of function/
term of
office
Shareholder/
employee
representative
Particip
ation in
Supervi
sory
Board
session
s with
respect
to total
number
Gen-
der
Nationality
Year
of
birth
Education /
professional
profile
Independ
ence
in
accordan
ce with
Article 23
of the
Code
Existenc
e of
conflicts
of
interest
during
the
financial
year
Members
hip in
supervis
ory
bodies of
other
compani
es
Employment
d. d.
Lipnica,
Slovensk
a
tiskovna
agencija,
d. o. o.,
Ljubljana
Marko Kerin
Member
22 January
2021
21 January
2025
Shareholder
representative
20/20*
Male
Slovenian
1978
Holds a
bachelor’s
degree in
economics /
accounting,
auditing,
business
finance
department,
risk
management.
YES
NO
Head of the office
for monitoring and
controlling the
intra
-group
business
operations and
transactions of the
Slovenske
Železnice Group
Dr Jurij Toplak
Member
18 June
2021
17 June
2025
Shareholder
representative
9/9*
Male
Slovenian
1977
Holds a
bachelor's
degree in
law/doctorate
in
constitutional
law.
YES
NO
MEJA
kmetijsko
podjetje
Šentjur,
d. d.
Head of the
Department of
Public Law and a
full professor in the
area of law at the
Faculty of Law at
the University of
Maribor. He is also
the Managing
Director and a full
professor at Alma
Mater Europaea
ECM.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
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Name
Office
First
appoint-
ment to
function
Completion
of function/
term of
office
Shareholder/
employee
representative
Particip
ation in
Supervi
sory
Board
session
s with
respect
to total
number
Gen-
der
Nationality
Year
of
birth
Education /
professional
profile
Independ
ence
in
accordan
ce with
Article 23
of the
Code
Existenc
e of
conflicts
of
interest
during
the
financial
year
Members
hip in
supervis
ory
bodies of
other
compani
es
Employment
Boštjan Koler
**
President
3 November
2020
21 January
2021
Shareholder
representative
1/1*
Male
Slovenian
1961
Holds a
bachelor's
degree in law.
NO
NO
Barbara
Kürner Čad **
Vice-
President
27 April
2017
27 April
2021
Shareholder
representative
10/10*
Fem
ale
Slovenian
1964
Holds a
bachelor's
degree in law.
YES
NO
Attorney at the Čad
Law Firm
Barbara
Gorjup, MSc **
Member
27 April
2017
27 April
2021
Shareholder
representative
10/10*
Fem
ale
Slovenian
1973
Holds a
master’s
degree in
science.
YES
NO
Managing Director
of Baklus, d.
o.
o.
Štefan
Belingar, MSc
**
Member
3 November
2020
21 January
2021
Shareholder
representative
1/1*
Male
Slovenian
1965
Holds a
master’s
degree in
science.
YES
NO
/
Dimitrij
Marjanović **
Member
13 May
2016
3 November
2020
13 May
2020
21 January
2021
Shareholder
representative
1/1*
Male
Slovenian
1970
Holds a
bachelor’s
degree in
economics.
YES
NO
Iskra
ESV, d. d.
Senior manager in
the Financial
Management
Department at
Slovenski državni
holding, d. d.
Igor Rozman **
Member
30 August
2019
21 January
2021
Shareholder
representative
1/1*
Male
Slovenian
1959
Holds a
bachelor's
degree in
computer
engineering.
YES
NO
Expert in the areas
of television
production,
programme
production systems
and information
systems at RTV
Slovenija
Drago
Kijevčanin
Vice-
President
19
September
2018
(first term of
office)
14
November
2021
Employee
representative
21/21
Male
Slovenian
1964
Telecommuni
cations
engineer/tech
nology.
YES
NO
NO
Telekom Slovenije,
network engineer in
the ICT and
Network Services
organisational unit,
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
46
Name
Office
First
appoint-
ment to
function
Completion
of function/
term of
office
Shareholder/
employee
representative
Particip
ation in
Supervi
sory
Board
session
s with
respect
to total
number
Gen-
der
Nationality
Year
of
birth
Education /
professional
profile
Independ
ence
in
accordan
ce with
Article 23
of the
Code
Existenc
e of
conflicts
of
interest
during
the
financial
year
Members
hip in
supervis
ory
bodies of
other
compani
es
Employment
15
November
2021
(
current
term
of
office)
14
November
2025
President of the
SELEKS trade
union and member
of the Works’
Council.
Dušan Pišek
Member
19
September
2018
(first term of
office
)
15
November
2021
(
current
term
of
office)
14
November
2021
14
November
2025
Employee
representative
21/21
Male
Slovenian
1964
Telecommuni
cations
engineer/tech
nology.
YES
NO
NO
Telekom Slovenije,
team leader in the
ICT and Network
Services
organisational unit
and President of
the Works’ Council.
Jana Žižek
Kuhar
Member
19
September
2018
(first term of
office
)
15
November
2021
(
current
term
of
office)
14
November
2021
14
November
2025
Employee
representative
20/21
Fem
ale
Slovenian
1974
Holds a
bachelor’s
degree in
economics/re
al estate
management.
YES
NO
NO
Telekom Slovenije,
expert in the
Procurement,
Logistics and Real
Estate
organisational unit,
member of the
Works Council.
* Participation in sessions convened during the term of office of a specific member (number).
** The data relate to the date on which the term of office ended.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
47
Work of the Supervisory Board
The Supervisory Board met at 15 regular and two extraordinary sessions, and held two
correspondence sessions in 2021. It ensured the responsible and high-quality supervision of the
operations of Telekom Slovenije and the Telekom Slovenije Group.
The Supervisory Board discussed different aspects of operations and monitored the implementation of
plans. Specific topics were discussed in advance by the Supervisory Board’s committees. Based on
the findings, proposals and assessments of committees, the Supervisory Board adopted the
appropriate decisions.
The Supervisory Board performed its work in accordance with the powers and competences
prescribed by the law, the Company’s Articles of Association and its own rules of procedure. It is fully
liable for the performance of its supervisory function and makes its decisions independently. All
members of the Supervisory Board submitted statements of compliance with the criteria of
independence in accordance with the Corporate Governance Code (the statements are published on
the website of Telekom Slovenije).
Composition and functioning of Supervisory Board committees
The Supervisory Board had four permanent committees: the Audit Committee, HR Committee,
Strategy Committee and Marketing and Technology Committee. The aforementioned committees
discussed individual areas of expertise in accordance with their respective competences and tasks.
The composition and most important tasks of individual committees in 2021 are described below:
Following change in the members of the Supervisory Board, that body reconstituted its committees on
11 February, 12 May and 22 June 2021.
The Audit Committee assists the Supervisory Board in its supervision of financial reporting, internal
controls and risk management at Telekom Slovenije and at the Telekom Slovenije Group level, and in
cooperation with external and internal auditors. The Audit Committee’s key tasks are to ensure
professional cooperation in the corporate governance process, where it functions for the good of the
Company and protects the interests of its stakeholders.
In accordance with valid legislation, Telekom Slovenije’s Supervisory Board decided that the tasks of
the audit committee of Soline, which became a public interest entity in 2021, will be performed by the
Audit Committee of Telekom Slovenije’s Supervisory Board from 24 May 2021 on.
The Audit Committee’s members were as follows as at 31 December 2021:
x Aleksander Igličar, MSc (chair),
x Marko Kerin,
x Drago Kijevčanin,
x Barbara Gorjup, MSc – external member, and
x Dr Marko Hočevar – external member.
The composition of the Audit Committee changed in 2021. Barbara Gorjup, MSc chaired the Audit
Committee until 27 April 2021. She was succeeded by Aleksander Igličar, MSc on 12 May 2021.
Dr Marko Hočevar was appointed external member of the Audit Committee on 11 February 2021,
while Barbara Gorjup, MSc was appointed to that position on 22 June 2021.
Information regarding the members of the Audit Committee who are also members of the Supervisory
Board in 2021 is presented in the table detailing the members of the Supervisory Board on pages 43
to 46, while information regarding the external members is presented in the table below:
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
48
Name
Committee
Participation
in
committee
sessions
with respect
to total
number
Gender
Nationality
Level of
education
Year of
birth
Professional
profile
Membership in
supervisory bodies of
other companies
Dr Marko
Hočevar
Audit
Committee
13/14*
Male
Slovenian
Holds a
doctorate in
economics.
1962
Accounting
Member of the
Supervisory Board of
Hidria holding, d. o. o.
Barbara
Gorjup,
MSc
Audit
Committee
6/6*
Female
Slovenian
Holds a
master’s
degree in
science.
1973
Accounting,
auditing,
business
finance,
business
valuation
Barbara
Nose
Audit
Committee
1/1*
Female
Slovenian
Holds a
bachelor’s
degree in
economics
and
specialises in
auditing and
accounting.
1964
Auditing and
accounting
* Participation in sessions convened during the term of office of a specific external member (number).
The Audit Committee met at eleven ordinary sessions, and held four correspondence sessions and
two extraordinary sessions in 2021. As a rule, all members were present at sessions.
Members of the Supervisory Board who are not members of the Audit Committee were kept abreast
about the latter’s work through the review of the minutes of the committee’s sessions. The chair of the
Audit Committee also regularly reported on the committee’s work and findings at sessions of the
Supervisory Board. The Audit Committee addressed issues in accordance with the ZGD-1,
recommendations for the work of audit committees, the Audit Committee’s rules of procedure, its work
plan adopted for 2021 and the resolutions of Telekom Slovenije’s Supervisory Board.
Key tasks performed by the Audit Committee in 2021 were as follows:
x it monitored and discussed financial reporting procedures, and monitored the progress of the
external audit of the annual report and annual financial statements of the Telekom Slovenije
Group and Telekom Slovenije;
x it discussed the annual report of the Telekom Slovenije Group and Telekom Slovenije for 2020;
x it discussed the Internal Audit Service’s reports regarding audits performed and the
implementation of issued recommendations;
x it discussed the annual report on the work of the Internal Audit Service for 2020, the service’s work
plan for 2021 and 2022, and the strategic plan of the Internal Audit Service for the period 2022 to
2026, and discussed the service’s independence in the absence of the Management Board;
x it periodically monitored the risk management system, the functioning of internal controls,
compliance, reports on lawsuits and supervision proceedings, and reports on suspected breaches
of corporate integrity;
x in accordance with the Guidelines for Ensuring the Independence of the Auditor of the Annual
Report and Financial Statements of the Telekom Slovenije Group and Telekom Slovenije, which
define the methods and procedures for monitoring the independence and impartiality of the
auditor, as well as protective measures, the selection of the auditor and procedures for non-audit
services:
– it discussed all transactions with audit firms and assessed the independence of the
certified auditor of the annual report and financial statements of the Telekom Slovenije
Group and Telekom Slovenije;
– it monitored and assessed the quality of the work of the certified auditor for 2020; and
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
49
x it performed the tasks of the audit committee of Soline in accordance with the resolution of
Telekom Slovenije’s Supervisory Board.
The Director of the Telekom Slovenije’s Internal Audit Service was invited to all sessions of the Audit
Committee. The Audit Committee also invited the certified auditor to sessions at which quarterly
reports on the operations of Telekom Slovenije and the Telekom Slovenije Group were discussed.
With the aim of continuously improving the quality of its work, the Audit Committee performed a self-
assessment in January 2021 and adopted an action plan of improvements. All resolutions adopted
under the aforementioned action plan were implemented by the end of the financial year.
The HR Committee met at seven regular sessions and one extraordinary session. Significant
activities of the HR Committee included:
x implementation of the process of appointing Management Board members;
x the discussion of proposals of the Management Board on the appointment of managing directors
at Telekom Slovenije Group subsidiaries; and
x the discussion of the objectives of Management Board members for 2021, and the methodology
for calculating the performance factor and criteria in connection with the right of Management
Board members to the variable component of wages for 2020.
The HR Committee’s members were as follows as at 31 December 2021:
x Radovan Cerjak (chair),
x Iztok Černoša,
x Marko Kerin,
x Drago Kijevčanin, and
x Dr Jurij Toplak.
The HR Committee was chaired by Boštjan Koler until 21 January 2021, and has been chaired by
Radovan Cerjak since 11 February 2021. Dr Jurij Toplak was appointed member of the HR Committee
on 22 June 2021. Information regarding the members of the HR Committee in 2021 is presented in the
table detailing the members of the Supervisory Board on pages 43 to 46.
The Marketing and Technology Committee met at three sessions. It discussed the Company’s
market position by key segment, as well as the marketing strategy. It also discussed activities in
connection with the development of the 5G network and activities relating to the eCare service.
The Marketing and Technology Committee’s members were as follows as at 31 December 2021:
x Dušan Pišek (chair),
x Aleksander Igličar, MSc, and
x Karla Pinter, MSc.
Dušan Pišek chaired the Marketing and Technology Committee until 11 February 2021, when the
Supervisory Board appointed Aleksander Igličar, MSc to chair that committee. Dušan Pišek was
reappointed chair of the committee on 12 May 2021. Karla Pinter, MSc was appointed member of the
committee on 22 June 2021.
Information regarding the members of the Marketing and Technology Committee in 2021 is presented
in the table detailing the members of the Supervisory Board on pages 43 to 46.
The Strategy Committee met at two sessions in 2021. At its first session, it discussed the draft
strategy of TSmedia for the period 2021 to 2026. At its next meeting, it discussed the amended draft of
TSmedia and the bases of the Strategic Business Plan of the Telekom Slovenije Group for the period
2022 to 2026.
The Strategy Committee’s members were as follows as at 31 December 2021:
x Marko Kerin (chair),
x Radovan Cerjak, and
x Jana Žižek Kuhar.
The Strategy Committee was chaired by Štefan Belingar, MSc until 21 January 2021, and has been
chaired by Marko Kerin since 11 February 2021.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
50
Information regarding the members of the Strategy Committee in 2021 is presented in the table
detailing the members of the Supervisory Board on pages 43 to 46.
Remuneration of Supervisory Board members
Supervisory Board members are entitled to attendance fees, basic payment for performing their
functions and additional payments for participation in Supervisory Board committees. The
remuneration of Supervisory Board members is defined by a resolution of the General Meeting of
Shareholders. Also defined are the maximum annual amounts of and eligibility criteria for the
reimbursement of transportation expenses, daily allowances and costs of overnight stays. The
amounts of payments made to members of the Supervisory Board are disclosed in the accounting
report.
When they assumed their function, every member of the Supervisory Board submitted a statement of
compliance with the criteria of independence according to point C.3 of the appendix to the Corporate
Governance Code. Those statements are accessible on the website of Telekom Slovenije.
Diversity policy
The aim of the Policy Governing the Diversity of the Management Board and Supervisory Board of
Telekom Slovenije, d. d. (hereinafter: the Policy) is the improved effectiveness of the Management
Board and Supervisory Board, and the increased diversity of the members of both bodies. The
Management Board and Supervisory Board can use the diversity of members in terms of knowledge,
skills, experience, professional qualifications, age, gender, work methods and other aspects to the
good of the Company. The Policy is published on Telekom Slovenije’s website at
https://www.telekom.si/en/about-us/company/corporate-governance.
In accordance with the Policy and in addition to legal requirements and requirements set out in the
Company’s Articles of Association, the following primary objectives and/or aspects of diversity must be
taken into account to the greatest extent possible when determining the optimal composition of the
Company’s Management Board and Supervisory Board, to ensure the effectiveness of an individual
body as a whole: professional profile, continuity, experience, gender, age and personal integrity.
In terms of gender, the Policy pursues the objective of heterogeneity, whereby an under-represented
gender should account for 40% of all members of the Supervisory Board and 33% of all members of
the Management Board and Supervisory Board together by the end of 2026. The Company achieved
that objective in 2021 in terms of composition of the Management Board. With regard to the
composition of the Supervisory Board, that objective was achieved in 2021 until the expiry of the terms
of office of two female members of the Supervisory Board in April. The proportion of members
accounted for by the under-represented gender is currently 22.22%.
In accordance with point 7 of the fifth paragraph of Article 70 of the ZGD-1, Telekom Slovenije
presents the representation of both genders on the Company’s Management Board and Supervisory
Board:
Diversity of members of the Management Board in terms of gender
17
31 December 2021
Men
Women
Total
Number of Management Board members
3
2
5
Proportion
60%
40%
100%
Diversity of members of the Supervisory Board in terms of gender
31 December 2021
Men
Women
Total
Number of Supervisory Board members
7
2
9
Proportion
77.78%
22.22%
100%
17
GRI GS 405-1
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
51
1.10.4 Other explanations in accordance with the Companies Act
Pursuant to the fifth paragraph of Article 70 of the Companies Act (ZGD-1), Telekom Slovenije hereby
issues the following explanations:
Main features of internal control systems and risk management within the Group in connection
with financial reporting procedures
Risk management and the system of internal controls represent integral elements of corporate
governance within the Group. The established risk management framework also includes a system of
internal controls, which serves as the basis for the identification, assessment, management, reporting
on and monitoring of risks, with the aim of responding and mitigating exposure to risks in a timely
manner.
In connection with the financial reporting process, the system of internal controls ensures the
appropriate management of risks, the ethical operations of Group companies, and reliable, timely and
transparent external and internal financial reporting that is in accordance with the law, the adopted
accounting framework and regulations, and the guidelines and policies of the Group. Information
support is provided for the accounting process. Internal controls are therefore linked with controls built
into the IT infrastructure, which comprises controls over restrictions on access to data and
applications, and controls over the accuracy and completeness of data capture and processing.
Established internal accounting controls are an integral part of the Group’s system of internal controls
in the processes and organisational units of companies, and at all levels of operations.
The Telekom Slovenije Group strives to ensure an appropriate system of internal controls that
includes precisely defined procedures, competences and responsibilities for specific tasks, as well as
automated and manual controls in all processes. Internal controls are regularly adapted to legislation,
standards, processes, organisational changes, findings from self-assessments of internal controls,
findings from other reviews, recommendations of internal and external audits, and best practices.
The owners of internal controls are responsible for the consistent implementation of controls, the
documentation of the functioning of internal controls and proposals for improvements. A report is
drafted once a year on the self-assessment of internal controls at the parent company and
subsidiaries to provide a comprehensive overview of the establishment and functioning of internal
controls. Implementation is systematic, planned and structured, and is appropriately documented.
Data and explanations related to the Mergers and Acquisitions Act
– Share capital of Telekom Slovenije
There were no changes to the structure of share capital in 2021. The value of Telekom Slovenije’s
share capital is EUR 272,720,664.33 and is divided into 6,535,478 ordinary registered no-par-value
shares. All shares constitute one class and are issued in dematerialised form. Each share
represents the same stake and corresponding amount in share capital, while all shares have been
paid up in full. Each share gives its holder the right to one vote at the General Meeting of
Shareholders, a proportionate share of profits (payment of dividends) and a proportionate share of
residual assets after the liquidation or bankruptcy of the Company. Shares are listed on the prime
securities market of the Ljubljana Stock Exchange. Detailed information regarding shares and the
ownership structure is presented in section 1.11 Share trading and ownership structure.
– Restrictions on the transfer of shares
All shares are freely transferable.
– Qualifying holdings according to the Takeovers Act
There were two holders of a qualifying holding as set out in the Takeovers Act as at 31 December
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
52
2021: the Republic of Slovenia with 4,087,569 shares or 62.54% of the issuer’s share capital and
Kapitalska družba, d. d. with 365,175 shares or 5.59% of the issuer’s share capital.
– Holders of securities that provide special controlling rights
Telekom Slovenije has not issued securities that would provide special controlling rights.
– Share scheme for shareholders
Telekom Slovenije does not have a share scheme for shareholders.
– Agreements between shareholders that might place limits on the transfer of securities or
voting rights
Telekom Slovenije is not aware of any such agreements.
– Rules on the Appointment and Replacement of Members of Management and Supervisory
Bodies
The Supervisory Board appoints members of the Management Board in accordance with its legal
powers and statutory provisions. To that end, it prudently and responsibly assesses the fulfilment
of the required qualifications. In accordance with the above, the Supervisory Board also defined the
candidate selection process, additional conditions that candidates must meet and procedures for
determining the appropriateness of candidates in the Criteria and Procedures for Determining the
Appropriateness of Candidates for Members of the Management Board.
The Supervisory Board formulated criteria and professional profiles for members of the Company’s
Supervisory Board (competence profile) in June 2016, taking into account the specific nature of the
Company. Those criteria ceased to apply with the adoption of the Competence Profile for Members
of the Supervisory Board of Telekom Slovenije, d. d. of 12 February 2020. That profile is publicly
accessible on Telekom Slovenije’s website.
– Rules on amendments to the Articles of Association
Telekom Slovenije does not have any special rules governing changes to its Articles of
Association. Changes to the Company’s Articles of Association are made in accordance with the
law and the Articles of Association themselves.
– Special agreements that come into effect, are amended or terminated on the basis of a
change in control at the Company as the result of a bid as defined by the act governing
mergers and acquisitions
Telekom Slovenije is not aware of any such agreements.
– Agreements concluded between the Company and the members of its management or
supervisory body or employees that envisage compensation if they resign or are laid off
without justification in the event of a bid as set out in the act governing mergers and
acquisitions or if their employment is terminated
Telekom Slovenije has no such agreements in accordance with the Takeovers Act.
Telekom Slovenije constantly strives to improve corporate governance practices in its operations,
including proactive corporate communication with various stakeholders. The Company communicates
in the manner set out in Telekom Slovenije, d. d.’s Corporate Governance Policy, the Communications
Strategy of Telekom Slovenije, d. d. and the Policy on Communication with the Shareholders of
Telekom Slovenije, d. d.
With the listing of its shares on the prime market of the Ljubljana Stock Exchange, Telekom Slovenije
undertook to comply with the relevant reporting standards. Telekom Slovenije once again provided
investors with high-quality, timely, relevant and reliable information in 2021.
With the aim of ensuring that Telekom Slovenije Group companies and employees comply with the
law, other rules, applicable recommendations and bylaws, the Telekom Slovenije Group’s Compliance
Management Policy defines the purpose and objectives of compliance management, an integrity plan
and powers and responsibilities. The compliance management system facilitates the identification of
risks and the implementation of measures to manage those risks. Playing an important role in that
framework are preventive actions, and rapid and effective measures in the event of identified
breaches. For more information, see section 2.5.1 Compliance and anti-corruption.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
53
Telekom Slovenije will continue to strive in the future to comply with and introduce the highest
standards and best practices in the area of corporate governance, both at the parent company and at
other Telekom Slovenije Group companies.
Cvetko Sršen, Iztok Černoša,
President of the Management Board President of the Supervisory Board
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
54
1.11 Share trading and ownership structure
18
General information regarding Telekom Slovenije shares as at 31 December 2021
General information regarding shares
Ticker symbol
TLSG
ISIN
SI0031104290
Listing
Ljubljana Stock Exchange, prime
Share capital (EUR)
272,720,664.33
Number of ordinary registered no-par value shares
6,535,478
Number of shares held in treasury
30,000
Number of shareholders as at 31 December 2021
8,582
Trading in TLSG shares in 2021
The shares of Telekom Slovenije are listed on the prime securities market of the Ljubljana Stock
Exchange under the ticker symbol TLSG. The shares are included in the SBITOP and SBITR share
indices, and accounted for 4.11% of those indices according to the quarterly review of computational
parameters conducted on 20 December 2021.
The SBITR is the Slovenian ‘blue chip’ total return index, which was introduced on 3 May 2021 and
takes into account both market prices and confirmed dividends in its calculation. TLSG shares are also
included in the ADRIAprime share index, which is a composite index of selected companies listed on
the prime markets of the Ljubljana Stock Exchange and Zagreb Stock Exchange. It is a total return
index that takes into account both changes in share prices and dividend yield.
The TLSG share price closed at EUR 56.20 on the last trading day of 2021 and gained 28.90% in
value during the year. The SBITOP index, which provides information regarding the movement of the
most liquid and largest shares on the stock exchange, was up by 39.81% during the same period.
Total turnover in Telekom Slovenije shares (including block trades) was EUR 12.89 million. The
Company’s shares ranked eighth amongst all shares on the Ljubljana Stock Exchange in terms of
turnover, excluding block trades. The market capitalisation of Telekom Slovenije’s shares stood at
EUR 367.29 million at the end of the year, and accounted for 3.86% of the market capitalisation of all
shares on the stock exchange.
Trading statistics for TLSG shares on the Ljubljana Stock Exchange
Standard price in EUR
2021
2020
Highest daily price
64.60
59.60
Lowest daily price
44.00
41.00
Average daily price
54.37
48.00
Volume in EUR thousand
2021
2020
Total volume for the year
12,892.90
16,650.20
Highest daily volume
558.10
572.82
Lowest daily volume
0.00
0.10
Average daily volume
51.16
66.34
18
GRI GS 102-10
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
55
Movement in the TLSG share price compared to the SBITOP index and volume of trading in TLSG
shares
Sources: Ljubljana Stock Exchange, archive of share prices.
Key financial data relating to shares
31
December
2021
31
December
2020
Closing price of one share on the last trading day of the period in EUR
56.20
43.60
Book value of one share in EUR*
91.87
90.35
Net earnings per share in EUR**
5.82
3.82
P/BV
0.61
0.48
Capital return per share during the period in %***
28.90
-19.85
* The book value of one share is calculated as the ratio of the book value of the Telekom Slovenije Group’s equity
on the last day of the period to the number of issued ordinary shares.
** Net earnings per share is calculated as the ratio of the Telekom Slovenije Group’s net operating profit for the
accounting period to the average number of issued ordinary shares, excluding treasury shares.
*** The capital return per share is calculated as follows (share price on the final trading day of the period – share
price on the final trading day of the previous period) / share price on the final trading day of the previous period.
900
1,000
1,100
1,200
1,300
1,400
1,500
40
42
44
46
48
50
52
54
56
58
60
62
64
SBITOP
TLSG
EUR
TLSG in EUR SBITOP SBITR
Index
SBITR
0
50
100
150
200
250
300
350
400
450
500
550
600
EUR thousand
Turnover in EUR thousand
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
56
Ownership structure and largest shareholders at the end of 2021
19
Telekom Slovenije had 8,582 shareholders at the end of 2021, a decrease of 283 relative to the
previous year. The number of individual shareholders was down by 262.
Ownership structure of shareholders at the end of 2021
With a total stake of 93.42% at the end of the year, domestic investors were predominant in the
Company’s ownership structure. Among them, the Company’s largest shareholder remained the
Republic of Slovenia, together with Kapitalska družba, Slovenski državni holding, the First Pension
Fund of Modra zavarovalnica and the latter’s guarantee fund. A total of 73.36% of the Company’s
shares were directly or indirectly held by the State at the end of the year.
Changes in the ownership structure by shareholder category
Shareholder category
% of ownership as at
Annual change in
percentage points (21/20)
31 December
2021
31 December
2020
Individual shareholders (domestic and
foreign)
13.72
13.74
-
0.02
Domestic legal entities
3.91
3.90
0.01
Domestic financial corporations and funds
3.06
3.14
0.08
Foreign legal entities
6.47
6.38
0.09
Ten largest shareholders
The structure of the ten largest shareholders changed slightly, as evident from the graph below. The
concentration of ownership, as measured by the ownership stake held by the ten largest shareholders,
stood at 80.10% at the end of the year, an increase of 0.25 percentage points in year-on-year terms.
19
GRI GS 102-5
Republic of Slovenia 62.54%
Individual shareholders (domestic and foreign)
13.72%
Foreign legal entities 6.47%
Kapitalska družba d.d. (pension fund manager;
KAD) 5.59%
Slovenian Sovereign Holding , d.d. 4.25%
Domestic companies 3.91%
Domestic financial companies and funds 3.06%
Treasury shares 0.46%
62.54%
5.59%
4.25%
2.69%
1.86%
1.22%
0.73%
0.46%
0.38%
0.37%
0%10%20%30%40%50%60%70%
Republic of Slovenia
Kapitalska družba, d.d.
Slovenian Sovereign Holding,…
Citibank N.A. - fiduciary account
Raiffeisen Bank International…
Perspektiva FT, d.o.o.
Guarantee Fund of the First…
Telekom Slovenije, d.d.
Lisca d.o.o.
NLB Funds – Multi -…
31.12.2021
62.54%
5.59%
4.25%
2.55%
1.77%
1.22%
0.73%
0.46%
0.38%
0.36%
0%10%20%30%40%50%60%
70%
Republic of Slovenia
Kapitalska družba, d.d.
Slovenian Sovereign Holding,…
Citibank N.A. - fiduciary account
Raiffeisen Bank International…
Perspektiva FT, d.o.o.
Guarantee Fund of the First…
Telekom Slovenije, d.d.
Lisca d.o.o.
Guaranteed fund of…
31.12.2020
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
57
Members of the Management Board and Supervisory Board held 974 TLSG shares as at 31
December 2021.
Name
Office
Number of
shares
% in equity
Management Board
Cvetko Sršen
President of the Management Board
150
0.00230
Dr Mitja Štular
Member of the Management Board
470
0.00719
Barbara Galičič Drakslar
Member of the Management Board
100
0.00153
Supervisory Board
Marko Kerin
Member of the Supervisory Board
2
0.00003
Drago Kijevčanin
Vice-President of the Supervisory Board
212
0.00324
Dušan Pišek
Member of the Supervisory Board
36
0.00055
Jana Žižek Kuhar
Member of the Supervisory Board
4
0.00006
Total Management Board
and Supervisory Board
974
0.01490
When the Company’s shares are traded by its representatives and when reporting on such
transactions at Telekom Slovenije, we comply with the applicable legislation and the Rules Restricting
Trading in the Shares of Telekom Slovenije.
Investor relations
20
In the area of investor relations, we adhere to the principle of ensuring equal treatment, transparency,
timeliness and the accuracy of information. We communicate regularly and comprehensively with
existing and potential shareholders, and other interested parties. The transparency of operations is
achieved by complying with the criteria and standards that apply to the issuers of shares on the prime
market. The Company communicated with interested domestic and foreign investors and analysts at
individual meetings and investor conferences, and via conference calls and email (ir@telekom.si and
skupscina@telekom.si).
Shareholders may send proposals and suggestions via the investor relations email (ir@telekom.si). In
addition to regular communication, we carried out the following activities in 2021:
– we sent the quarterly TLSG newsletter to registered domestic and foreign recipients following
the publication of operating results. That publication included a selection of the most important
news for a specific period, supported by actual data regarding operations;
– we attended two meetings with investors; and
– we organised two General Meeting of Shareholders.
We regularly publish price-sensitive and other important information on the website in the Investor
relations section and in the Ljubljana Stock Exchange’s SEOnet system. A total of 38 press releases
were issued in 2021, with simultaneous publication in Slovene and English.
Financial calendar
The financial calendar for 2021 is published in the Ljubljana Stock Exchange’s SEOnet system, and is
also accessible on the Company’s website at https://www.telekom.si/en/investor-relations/financial-
calendar. Any changes to the financial calendar are also published on the same websites.
Dividend policy
Telekom Slovenije has a clearly defined stable dividend policy that facilitates a balance between
profits for owners and the use of free cash flow for the financing of investments. Such a policy ensures
long-term growth and the maximisation of value for owners.
At the 33rd General Meeting of Shareholders held on 18 June 2021, shareholders adopted a
resolution on the use of distributable profit for 2020. The Company paid shareholders gross dividends
of EUR 4.50 per share on 3 August 2021. In accordance with the Common European Standards for
Corporate Actions, dividend payments are carried out via KDD and its members, brokerage firms and
banks.
20
GRI GS 102-43
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
58
Treasury shares
The number of treasury shares was unchanged in 2021, as it has been since the last acquisition in
2003. The Company held 30,000 treasury shares on the final day of 2021, representing 0.46% of
equity.
The 33rd General Meeting of Shareholders authorised the Company’s Management Board to
purchase and dispose of treasury shares. In accordance with the relevant General Meeting of
Shareholders resolution, the Company published a treasury share repurchase programme in the
Ljubljana Stock Exchange’s SEOnet system on 4 November 2021. That programme is also accessible
on the Company’s website at https://www.telekom.si/en/investor-relations/tlsg-share/share-
repurchase-programme.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
59
2 BUSINESS REPORT
2.1 Financial results
Analysis of the consolidated income statement
The Telekom Slovenije Group generated EUR 653.6 million in operating revenues in 2021, similar to
the level generated the previous year. Sales revenue amounted to EUR 648.2 million. Revenues were
higher in the mobile segment of the end-user market, primarily on account of higher revenues from the
sale of mobile merchandise at Telekom Slovenije and higher revenues at IPKO. IPKO is attracting
new users through intensive marketing activities, while revenues were also higher due to an increased
number of visits by expatriates in 2021. Revenues were lower in the fixed segment of the end-user
market due to a decline in revenues from traditional voice telephony, as the result of the falling number
of traditional connections and their replacement with mobile and IP telephony, and due to lower
revenues from the sale of licences, which resulted in lower costs of subcontractors. Revenues on the
wholesale market were higher than in 2020, primarily due to higher revenues from the roaming of
foreign users in the mobile networks of Telekom Slovenije and IPKO, and higher revenues from
incoming international traffic at IPKO.
The operating expenses of the Telekom Slovenije Group amounted to EUR 601.9 million, a decrease
of 2% relative to 2020. Primarily the following costs were lower: the costs of subcontractors and
licences, as the result of lower revenues from the sale of licences, the costs of multimedia services
and content, and the costs of telecommunication services, as the result of lower revenues from
international voice services.
Earnings before interest and taxes (EBIT) reached EUR 51.7 million in 2021, an increase of 21% or
EUR 9.1 million relative to the previous year.
Earnings before interest, taxes, amortisation and depreciation (EBITDA) totalled EUR 220.8
million at the Telekom Slovenije Group level, an increase of 5% relative to 2020. The EBITDA margin
(i.e. EBITDA as a proportion of sales revenue) was 34.1% at the Group level (2020: 32.4%).
Finance income and finance costs were both down relative to 2020 to stand at EUR 2.0 million and
EUR 8.6 million, respectively.
Following the calculation of income tax (including deferred tax assets), the Telekom Slovenije Group
generated a net profit of EUR 37.9 million in 2021, an increase of EUR 13.0 million relative to 2020.
The Telekom Slovenije Group also uses the Alternative Performance Measures (APMs) defined by the
ESMA to present its operating results (for more information, see point 4.3 Alternative performance
measures).
Analysis of the consolidated balance sheet
Total assets as at 31 December 2021 amounted to EUR 1,250.3 million, an increase of 1.8% or EUR
22.5 million relative to the situation as at 31 December 2020.
Non-current assets totalled EUR 1,033.2 million, an increase of 3.1% or EUR 31.1 million relative to
the end of 2020. The proportion of the Group’s total assets accounted for by non-current assets rose
to 82.6% (2020: 81.6%). Primarily intangible assets were higher on account of concessions acquired
in 2021 for the frequency spectre for the 5G network.
Current assets amounted to EUR 217.1 million, a decrease of 3.8% or EUR 8.6 million. Of that
amount, trade and other receivables were down by EUR 6.8 million.
Equity totalled EUR 600.4 million, an increase of 1.7% or EUR 9.9 million relative to the end of 2020,
and represented 48.0% of total assets (2020: 48.1%).
Non-current liabilities in the amount of EUR 424.6 million represented 34.0% of total assets. Those
liabilities were up by EUR 104.4 million relative to the end of 2020, primarily on account of new long-
term loans, which were up by EUR 124.8 million as at 31 December 2021 relative to the end of 2020.
Other non-current liabilities were down by EUR 20 million.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
60
Current liabilities amounted to EUR 225.3 million, a decrease of EUR 91.9 million relative to the end
of 2020. The proportion of total assets accounted for by current liabilities fell to 18.0% (2020: 25.8%),
primarily due to the repayment of maturing bonds classified as current financial liabilities.
Analysis of the consolidated statement of cash flows
The Group recorded investments in fixed assets in the amount of EUR 199.0 million and outflows for
loans granted and deposits placed in the amount of EUR 0.3 million in outflows for investing
activities.
The Group’s inflows from investing activities in 2021 primarily comprised proceeds from the sale of
fixed assets in the amount of EUR 5.8 million (with the sale of real estate accounting for EUR 5.5
million of that amount) and inflows from dividends in the amount of EUR 0.1 million.
The Group’s outflows from financing activities included the repayment of the issued bonds in the
amount of EUR 100 million in June, the repayment of the short-term portion of long-term loans in the
amount of EUR 35.5 million, the repayment of a short-term loan in the amount of EUR 26 million at the
end of the year, net outflows from revolving loans in the amount of EUR 1.5 million, and the payment
of interest on loans received and assets under lease in the amount of EUR 8.5 million. Outflows for the
approval of loans received amounted to EUR 0.6 million. Based on the dividends approved by the
General Meeting of Shareholders, the total amount of EUR 29.3 million was paid to Telekom
Slovenije’s shareholders in August. In accordance with the entry into force of IFRS 16, payments of
lease liabilities (excluding interest) in the amount of EUR 12.6 million were included in outflows from
financing activities.
The Group’s inflows from financing activities include the receipt of two long-term (syndicated) loans
in the total amount of EUR 170 million, and a short-term loan received during the first quarter of the
year in the amount of EUR 26 million.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
61
Key financial indicators for the Telekom Slovenije Group and Telekom Slovenije, in accordance with
the accounting report
21
Telekom Slovenije Group Telekom Slovenije
in EUR thousand and %
I –
XII 2021 /
31 December
2021
I – XII 2020 /
31
December
2020*
Index
21/20
I –
XII 2021 /
31 December
2021
I –
XII 2020 /
31 December
2020
Index
21/20
Sales revenue
648,247
647,177
100
577,630
591,693
98
Other operating income
5,303
7,694
69
3,421
5,254
65
Total operating revenues
653,550
654,871
100
581,051
596,947
97
EBITDA
220,752
209,882
105
175,773
174,281
101
EBITDA margin = EBITDA /
sales revenue
34.1%
32.4%
105
30.4%
29.5%
103
EBIT
51,696
42,603
121
33,598
36,930
91
Return on sales = EBIT / sales
revenue
8.0%
6.6%
121
5.8%
6.2%
93
Net profit from continuing
operations
37,888
34,084
111
-
24,174
-
Loss from discontinued
operations
0
-
9,219
0
-
0
-
Net profit for the financial year
37,888
24,865
152
34,371
24,174
142
Assets
1,250,339
1,227,839
102
1,237,941
1,226,566
101
Equity
600,431
590,484
102
612,241
605,784
101
Return on equity (ROE)
6.4%
4.2%
151
5.6%
4.0%
141
Equity ratio
48.0%
48.1%
100
49.5%
49.4%
100
Net financial debt
399,009
378,377
105
408,293
390,050
105
NFD / EBITDA
1.8
1.8
100
2.3
2.2
104
Investment in property, plant and
equipment (CAPEX)
208,173
173,045
120
188,704
164,680
115
EBITDA – CAPEX
12,579
36,837
34
-12,931
9,601
-
Ratio of (EBITDA – CAPEX) to
EBITDA
(cash margin)
5.7%
17.6%
32
-
7.4%
5.5%
-
Number of employees as at the
last day of the period
3,284
3,392
97
2,119
2,165
98
Investments as a proportion of
operating revenues
31.9%
26.4%
121
32.5%
27.6%
118
* The operations of Planet TV for 2020 are included in the item 'discontinued operations'. The year 2019 is adjusted for a prior-
period correction in the financial statements of IPKO and thus of the Telekom Slovenije Group. This applies to all items in the
tables and graphs presented below.
Definitions can be found in point 4.3 Alternative performance measures.
More information can be found in the accounting report beginning on page 181.
Segment reporting
The criterion for segment reporting is the registered office where an activity is performed. The
Telekom Slovenije Group thus presents its operations in two segments: Slovenia and other countries.
More details are provided in the accounting report in point 6 Segment reporting.
21
GRI GS 102-7, 201-1, 102-10
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
62
2.2 Financial performance of the Telekom Slovenije Group
Through the implementation of the Telekom Slovenije Group’s financial policy, we ensure the financial
stability of the entire Group. We achieve this through successful operations, the active planning and
management of cash flows, ensuring the appropriate maturities and the diversification of financial
debt, financing within the Group, the optimisation of working capital and the effective management of
financial risks.
For the purpose of ensuring a high level of liquidity, the Group has open short-term credit lines at
banks that are regularly rolled over taking into account planned needs. The Group’s liquidity reserves
amounted to EUR 74 million at the end of 2021, and took the form of approved but undrawn revolving
credit lines.
Indebtedness is relatively low at the Group level. The net financial debt to EBITDA ratio was 1.8 at the
end of 2021. The Group’s total financial liabilities amounted to EUR 415.7 million at the end of 2021,
and primarily comprised two long-term syndicated loans in the amount of EUR 309.9 million, a long-
term loan from the European Investment Bank in the amount of EUR 40 million and liabilities from
finance leasing in the amount of EUR 66.6 million.
Net financial debt (NFD) of the Telekom Slovenije Group
* The results of Planet TV for 2020 and 2019 are included in the item ‘discontinued operations’. This applies to all accounting
items in the tables and graphs presented below.
The Group regularly settles its liabilities to creditors. A total of EUR 35.5 million in long-term loans was
repaid in 2021, as were five-year bonds in the amount of EUR 100 million that matured in June 2021.
Repayment plan for existing long-term debt (loans and bonds)
As a rule, subsidiaries secure borrowings from the parent company. Internal financing within the Group
and the reallocation of surplus cash between companies facilitate more effective cash management
and the optimisation of net financial debt, as well as a reduction in the Group’s exposure to external
borrowing, which in turn ensures greater flexibility.
The Group further stabilised the structure of its financing in 2021, when Telekom Slovenije signed a
long-term loan agreement with a syndicate of domestic banks in the amount of EUR 130 million. The
full amount of that loan was drawn down in 2021. That loan ensured the liquidity required for the
1,5
1,6
1,7
1,8
1,9
2,0
0
50
100
150
200
250
300
350
400
450
31.12.2019 31.12.2020 31.12.2021
NFD / EBITDA
in mio EUR
Financial liabilities Net financial debt (NFD) NFD / EBITDA
0
50
100
150
200
250
300
350
2021 2022 2023 2024 2025 2026
v mio EUR
Principal repayment Oustanding debt
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
63
repayment of issued bonds in the amount of EUR 100 million that fell due for payment in June 2021.
The Company will earmark the remainder of the loan for investments in connection with the continued
implementation of its established strategy. The first tranche of a loan from the European Investment
Bank in the amount of EUR 40 million was also drawn down in 2021. The Company may draw down
the remaining EUR 60 million until the end of 2023.
Maturity breakdown of financial liabilities
Loans included in the balance at the end of the year bear variable interest rates linked to the 6-month
EURIBOR. The weighted mark-up on the variable portion of the interest rate on all loans within the
Group stood at 126 basis points at the end of 2021. Fixed or hedged interest rates account for 28.4%
of interest-bearing financial liabilities at the Group level.
22
Financial risk management
A detailed description of financial risk management is found in section 2.4 Risk management and in
the accounting report in point 44 Financial risk management.
Fulfilment of financial commitments
Creditor banks require the maintenance of the values of financial commitments and indicators set out
in loan agreements. Failure to fulfil those commitments could result in the early maturity of loans. All
financial commitments at the Group level were met as at 31 December 2021.
22
Takes into account loan principal and finance leases.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
31.12.2019 31.12.2020 31.12.2021
Dolgoročne finančne obveznosti Kratkoročne finančne obveznosti
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
64
2.3 Investments in fixed assets
Investments in fixed assets
23
The Telekom Slovenije Group earmarked EUR 208.2 million for investments in fixed assets in 2021,
an increase of 20% or EUR 35.1 million relative to 2020. Of the aforementioned amount, 90.6% of all
investments or EUR 188.7 million was earmarked for investments by Telekom Slovenije, an increase
of 15% relative to the previous year. The remainder was earmarked for investments in development by
subsidiaries.
The altered conditions due to the increased scope of work from home and distance learning resulted in
increased network traffic and thus an increase in investments to ensure capacities in both the mobile
and fixed networks. Representing a particular challenge due to the closure of borders and the
adoption of measures to prevent the spread of the pandemic were ensuring materials and equipment,
and an adjusted regime for implementing works to realise investments.
Through investments in the construction, modernisation and development of networks and services,
we are creating a platform to attract new and retain existing subscribers, and to secure new revenue
sources and maintain a high level of quality. The majority of investments in 2021 were earmarked for
the expansion of the fibre optic access network, which will provide users a superior user experience in
terms of broadband content and high-speed internet access. Investments were also earmarked for the
modernisation of the mobile network and the establishment of the first national fifth generation (5G)
mobile network, and for the development of new services and the further optimisation of operations.
For more details, see section 2.8 Network, technologies and IT.
Investments by company
in EUR thousand
2021
2020*
Index
21/20
Telekom Slovenije
188,704
164,680
115
Other companies in Slovenia
5,734
3,246
177
IPKO – Kosovo
13,343
8,728
153
Other companies abroad
1,900
1,365
139
Exclusions and adjustments
-1,508
-4,974
170
Telekom Slovenije Group
208,173
173,045
120
* Excluding Planet TV for 2020.
Structure of investments by purpose
23
GRI GS 103-1, 103-2, 203-1, GRI IO1
Frequency fees 25.8%
Network 36.1%
CPE - Customer equipment 7.7%
Customers solutions 14.6%
IT, internal ICT infrastructure, R&R
projects 7.5%
IFRS 16 4.4%
Other 3.9%
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
65
2.4 Risk management
The identification and management of risks are an integral part of our business processes and
decisions, and are crucial for achieving established objectives and exploiting opportunities.
There is a risk management framework in place that serves as the basis of the corporate governance
of the Telekom Slovenije Group. The maintenance of that framework is a permanent and recurring
process. We continuously strive to raise awareness, which facilitates the effective identification and
assessment of risks, and the management of those risks through appropriate measures, reporting and
monitoring, and a suitable control environment.
We have defined four types of risks for which we identify external and internal factors:
x strategic risks,
x financial risks,
x operational risks, and
x regulatory and compliance-related risks.
We define risks as potential events that could have an adverse on the achievement of our objectives,
while opportunities are potential events with a positive impact on the Company’s ability to achieve its
objectives.
The Internal Audit Service’s audit activities include an audit of risk management and a self-
assessment of internal controls. The Management Board is briefed continuously on risk assessments,
the findings of internal audits and other reviews of operations. It responds to assessments and findings
appropriately through a range of measures to manage risks and ensure compliance. It reports to the
Supervisory Board and the latter’s committees regularly with regard to key risks, findings and adopted
measures.
Risk management framework
The risk management framework is integrated into all Group companies, and includes a model
comprising three lines of defence against risks. That model provides an overview of risks and a
uniform basis for understanding them. Transparent and effective communication about risk
management is ensured through the definition of duties, powers and responsibilities. That process
facilitates the identification and assessment of risks, and the management of those risks, reporting and
monitoring.
The result of risk identification is risk assessment. Risk owners assess risks based on the effect and
probability of an event. They are also responsible for formulating measures to manage those risks.
The identified level of risk takes into account measures and internal controls. The Company also
monitors exposure to risk based on calculations using an internal risk quantification methodology, and
draws up strategies for responding. Subsidiaries report to the parent company with regard to all risks.
Representing an integral part of risk management is the review of key internal controls that are in
place in the implementation of business processes. The Group verifies the functioning and
establishment of internal controls once a year in accordance with the methodology on the self-
assessment of internal controls, and reports to the Internal Controls Committee, Risk Committee and
Supervisory Board’s Audit Committee in that regard. The self-assessment of internal controls
contributes to the more transparent identification of weaknesses and to more effective risk
management.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
66
The risk officer reports on risks quarterly
to the
Supervisory Board’s Audit
Committee for both the parent company
and subsidiaries.
4 sessions
The risk officer reports on key risks to the
Risk Committee
, which discusses
exposure to risks, the implementation of
measures and target levels of risk, as well
as risk management documents. The
committee meets quarterly and more
frequently as required.
5 sessions
The risk officer reports to the Internal
Controls Committee regarding the self-
assessment of internal controls within the
Group. The committee also discusses
new internal controls and the bases for
changes to existing internal controls.
3 sessions
Improvements to the risk management framework
The risk management framework is continuously upgraded. We continued to improve the risk
identification and assessment process in 2021. We enhanced the review of key risk factors, and took
an even more dynamic approach to assessing risks and monitoring measures. We take an active
approach to the review of key internal controls and to the development of risk assessment models,
and we monitor events in the environment and identify new risks.
Risks in connection with the achievement of objectives
When planning the objectives and strategy of the Telekom Slovenije Group, we take into account
opportunities and identified risks, as well as measures to manage those risks. Having the most
significant impact on the achievement of established objectives are risks linked to the market and
competition, risks relating to the confidentiality, integrity and availability of networks (including cyber
security risks), risks associated with the regulatory framework, the risk of disruptions in the supply
chain and HR risks, and pressures for change that derive from new technologies and rapid
development.
Supplementation of the bases for risk assessment
Based on the monitoring of risk factors in the external and internal environment, we supplemented
internal risk assessments with the acceptable levels of individual risks. We also updated the
assessment of the target risk level, which depends on planned measures and factors affecting risks.
Quantification of risks at subsidiaries
We monitor risk exposure based on an internal Monte Carlo simulation.
Key risk indicators
We supplemented key risk indicators for major risks in the scope of the quarterly risk assessment.
Risks and scenarios
We address risks individually, and assess various scenarios for the improved and more
comprehensive understanding of the spectre of those risks.
Self-assessment of internal controls
We updated the bases for the self-assessment of internal controls, and established the digital signing
of statements regarding exposure in connection with and the functioning of those controls.
Risk assessment models
Models are continuously updated and adjusted to the requirements and needs of the Group. In the
areas of business continuity and information security, we assess risks in connection with key services
Identification
of risks
Assessment
of risks
Management
of risks
Reporting
on risks
Monitoring
of risks
Risk Committee
Internal Controls Committee
OU responsible for compliance and risk
management
Risk owners
Risk management
process
Internal audit
Supervisory Board
Audit Committee of the Supervisory Board
Management Board
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
67
and processes in terms of confidentiality, integrity and availability. Those models are discussed once a
year by the Risk Committee. We drew up an assessment of internal risks for the integrity plan and
fraud prevention programme.
Culture of risk and opportunity management
We build the risk culture and develop the appropriate employee competences through training and
awareness-raising, as the environment, and methods and measures for managing risks are constantly
changing. We organise mandatory training at the Group level every year in cooperation with the
Internal Audit Service and compliance officers.
New risks
The identification of new, emerging risks is crucial for long-term successful operations. We regularly
monitor the effects of the external and internal environment, and assess new risks and their impact on
existing risks on that basis. New risks may comprise additional regulations or the expectations of
stakeholders with respect to ESG (the environmental, social and economic aspects of operations).
Also representing additional challenges are risks from the environment (e.g. natural disasters and
outbreak of disease). These are seen more frequently and with greater intensity, and increase
assessments of risk linked to the functioning of services and systems, and the provision of security.
Risk management strategies
The risk environment is increasingly complex. It is therefore important that we remain agile when
identifying and responding to risks. We will thus continue to develop the risk management process in
2022 to ensure the most effective support possible for the objectives and strategies of Group
companies. We will supplement key risk indicators with the monitoring and management of risks in the
area of sustainable operations.
Risks within the Telekom Slovenije Group
The risk management
and internal controls
framework is based on
the practices of the
COSO and is in line
with the ISO 31000
standard.
Risks are
classified
with regard to the level
of risk (very high, high,
moderate and low).
Presented below are key risks during the final quarter of 2021, assessed for the next 12 months, and a
comparison of their trend relative to the same period in 2020. The level of risk takes into account
measures and internal controls.
Probability
Impact
Very
high
High
H
Moderate
M
Low
Low
probability
Possible
Very
possible
Almost
certain
Very high
High
Moderate
Low
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
68
Trends are indicated as follows:
→ assessed risk is unchanged
↓ assessed risk is lower
↑ assessed risk is higher
Risk assessment due to the impact of COVID-19 for all Group companies
We carried out an additional quarterly risk assessment at all Group companies of the impact of
COVID-19, which is separate from the general risk assessment, and only includes factors that are
connected with COVID-19.
Group companies regularly monitor the impact of COVID-19 and have control-preventive measures in
place. When analysing the response to COVID-19, we search for opportunities to enhance our ability
to manage and maintain the resilience of our network, even in critical conditions. We continue to
develop state-of-the-art and digitally supported solutions for products and services.
Risk
What is the risk?
What is the effect?
How is the risk managed?
Impact of COVID-19
Delayed projects, closed
points of sale, less
roaming, disruptions in
the supply chain, higher
prices of products and
services, and less
development of services.
Malfunctioning of
services. Absence of
employees. Economic
recession.
Lower revenues
and loss of
revenues.
Higher costs.
Impact on cash
flow.
Implementation of measures to
protect the health and safety of
employees.
Ensuring the continuity of
services and processes.
Intensive communication with
suppliers, the search for more
supply sources and increase in
stock of strategic goods.
Telekom Slovenije
Strategic risks
On the Slovenian market, we face stiff competition, regulatory effects, price-sensitive users, and the
migration of voice traffic to OTT platforms (services that function independent of the
network). Users demand high-quality and more extensive services at lower prices. Their habits are
changing. The management of such risks requires a flexible market approach and the constant
introduction of innovations that track market trends and the expectations of users. We place emphasis
on the high-quality and availability of services for all user segments. At the forefront of the
development of services is the digitalisation of processes, where the emphasis is on the digital
ordering of services.
Risk
What is the risk?
What is the effect?
How is the risk managed?
Diminishing profitability
and the loss of
subscribers
– B2C
Aggressive competition
on the market of services
and package offers,
reduction of the general
level of prices of
services, rapid changes
to the portfolio and
unlimited packages. Loss
of subscribers due to
migrations between
operators.
Delays in digitalisation.
Loss of revenues.
Lower margin.
Loss of market
share.
Competitive offer and
programmes to maintain
subscribers. Target
-oriented
approach by subscriber
segment
.
Improvement of the
user experience. Product
lifecycle management. Lean
business
model and the
digitalisation programme. Use of
advanced programmes to
analyse data.
Level of risk
→
Trend
Strategic objective
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
69
Risk
What is the risk?
What is the
effect?
How is the risk managed?
Drop in revenues due
to regulatory
obligations and
diminishing profitability
of services
–
wholesale
market
New and/or additional
regulatory obligations on
regulated markets.
Saturated wholesale
services market,
migration of voice traffic
to OTT platforms, and
ever increasing
competition in terms of
services and the
infrastructure.
Loss of revenues.
Lower margin.
Proactive participation in market
analysis and supervision
processes by the regulator, and
the monitoring of market
development. Adaptation of the
wholesale portfolio in accordance
with regulatory obligations and
the needs of the market.
Competitive offer
on the
wholesale market. Conclusion of
longer
-
term agreements and an
agreed traffic volume. Expansion
of roaming capacities.
Level of risk
→
Trend
Strategic objective
Loss of subscribers
and diminishing
profitability
– B2B
Aggressive competition
with a range of
alternative solutions, and
switching of subscribers
between operators. New
technologies and price
erosion.
Migration of traffic to
OTT. Increased scope of
services at a lower price.
Loss of revenues.
Lower margin.
Integrated solutions for the ‘cross
sell’ and ‘upsell’ programme.
Programme to maintain
subscribers. Strategic
partnerships for innovative
solutions in the following areas:
cyber security, safe internet,
modern workplace, 5G mobile
ICT solutions, telemedic
ine,
smart cities and smart mobile
infrastructure. Reduced
development time for new
solutions. Events for business
users, webinars.
Level of risk
↓
Trend
Strategic objective
Financial risks
We regularly monitor changes in the financial environment that are reflected in various types of
financial risks to which we are exposed in our operations.
We manage long-term solvency and capital adequacy through the regular planning and balancing of
cash flows for different time periods. We ensure the appropriate maturity and diversification of financial
debt, the optimisation of working capital and the appropriate use of liquid assets.
We manage credit risk through the active monitoring of the operations of subscribers and their credit
ratings, and by limiting maximum allowable exposures. We further hedge against the risk of the
deteriorating financial position of subscribers through credit insurance and by regularly monitoring the
appropriateness thereof. Monitoring of the settlement of contractual obligations and the active
recovery of past-due debt are also elements of comprehensive credit risk management.
Risk
What is the risk?
What is the
effect?
How is the risk managed?
Long-term solvency and
capital adequacy
Additional long-term
borrowings.
Reduced financial
flexibility.
Higher net debt
.
Creation of a structure of
financing for the fulfilment of
financial commitments from loan
agreements. Appropriate debt
-
to-
equity ratio.
Level of risk
↑
Trend
Strategic objective
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70
Subscriber credit risk
Increased proportion of
past
-due receivables.
Scope and
structure of
receivables. Write-
offs of
unrecoverable
receivables.
Subscriber credit assessment,
credit check process, obtaining
credit insurance. Recovery of
past
-due receivables.
Level of risk
→
Trend
Strategic objective
Regulatory and compliance-related risks
Telekom Slovenije processes a large quantity of personal data relating to users, business partners,
employees and other stakeholders. The processing of personal data brings risks that we monitor and
assess. On that basis, we formulate the appropriate measures for the management of those risks. We
ensure compliance with regulations governing personal data protection through the continuous
monitoring of personal data protection processes, and by updating and improving personal data
processing and internal control processes.
In our operations, we comply with valid legislation, as well as decisions and aspects of sectoral
regulations and other competent bodies. We manage regulatory risks through organisational and
procedural measures in the Company’s operations, through constructive dialogue, by putting forth
opinions, comments and suggestions in public consultations regarding drafts of general and specific
laws issued by the regulator, and by taking legal action against issued regulatory decisions, whenever
that is justified.
Through constructive and professional proposals, we are involved in the process of drafting the new
Electronic Communications Act (ZEKom-2), which will transpose the European Electronic
Communications Code (EECC) into Slovenian law, and the drafting of the new Personal Data
Protection Act (ZVOP-2).
At the European level, the Digital Services Act (DSA) package is currently the subject of public
consultations. That legislative package includes proposed new and amended rules for the
strengthening of the Single Market for digital services. Also in the process of being drafted is a new
directive on privacy and electronic communications (e-privacy), which will affect the processing of data
in the provision of our services, in particular the processing of data on communications.
Risk
What is the risk?
What is the effect?
How is the risk managed?
Risk of regulatory
pressures on the
markets of fixed and
mobile electronic
communications
New models for setting
prices and additional
obligations for regulated
services.
Higher costs and
loss of revenues.
Active participation in market
analyses, and in the adoption of
new laws and other acts.
Appropriate implementation of
issued regulatory decisions and
regulatory compliance.
Monitoring of changes in the EU
regulatory framework.
Level of risk
→
Trend
Strategic objective
Compliance in the area
of personal data
protection
Breach of personal data
protection.
Loss of users’ trust.
Payment of fines
and claims for
damage.
Implementation of internal
controls for maintaining records
of personal data, the handling of
personal data and assessments
of effects. Monitoring of changes
in the regulatory framework in
Slovenia and the EU. Employee
training
in the area of personal
data protection.
Level of risk
→
Trend
Strategic objective
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71
Operational risks
Telekom Slovenije gives a great deal of attention to managing ICT-related operational risks. The
complexity of comprehensive risk management in this area is increasing due to the development of
new ICT technologies and services, and the growing expectation of users and regulatory
requirements. We manage those risks through the development and management of subsystems, by
improving operational efficiency and through employee training. The comprehensive management of
the aforementioned area also facilitates the identification of new business opportunities.
In the scope of business continuity, we ensure the necessary topologies and capacities of the
infrastructure and ICT services, and of the transmission, backbone and access segments. The risks
associated with the malfunctioning of connections and services provided by other entities are
managed by introducing processes to monitor and report on service-level agreements on leased
networks, and by standardising our requirements vis-à-vis network providers for newly leased
networks. We update and increase capacities through redundancy in those network segments where
we have identified increased functional and security-related risks.
We continuously develop systems for monitoring technologies and anomalies in the infrastructure and
ICT services, and conduct internal and external penetration testing. We have in place the state-of-the-
art Cyber Security Operation Centre. We manage risks through the implementation of the security
policy, by identifying security threats and vulnerabilities, and by spreading the security culture to
employees and users.
We manage procurement risks through a centralised procurement function, a standard process for the
implementation of procurement procedures and a methodology for assessing the risk of cooperation
with suppliers. To that end, we monitor compliance with contractual provisions. The Supplier Code of
Conduct falls into this category of activities. We ensure the timely supply of equipment and services in
changing market conditions through more frequent contacts with suppliers. We ensure the necessary
safety stocks of strategic materials, and at least two supply sources where possible.
We are also exposed to human resource risks, in particular the risk of retaining and recruiting key staff
with specific expertise and certificates, as there is increased demand for professionally qualified
employees on the labour market. We manage that risk in the scope of the system for managing key
and perspective employees, through career planning, internal mobility, the transfer of knowledge,
inclusion in development-training programmes and the mentoring system, and through a flexible
remuneration and motivation system. We attract potential jobseekers with our enticing employer
brand. We ensure the development of the appropriate staff in strategically important areas by offering
scholarships to the best pupils and students, and by establishing and maintaining new strategic
partnerships with faculties and schools. We thus create a database of potential new employees.
The range of operational risks also includes risks relating to sustainable operations, where we classify
environmental risks, risks in connection with the development of and care for employees, and risks
relating to a safe work environment. Those risks derive from compliance with regulations, and the
corporate policy governing respect for human rights, ethical principles and environmental standards.
We have also identified reputation risk, which includes the management of stakeholder relations.
Risk
What is the risk?
What is the
effect?
How is the risk managed?
Functioning of systems
–
ICT security
Threats to the
confidentiality, integrity
and
availability of networks,
systems or data that are
the result of a
cyber
-attack. Weak
security culture.
Loss of revenues
and reputation,
higher costs and
user dissatisfaction.
Strict implementation and
updating of the security policy
and processes of planned
works, and internal and external
assessments. Strengthening of
the employee structure of the
Operational Service Centre,
processes and tools. Ensuring
the appropriate identification,
redundancy and suitable
capacities to protect against
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
72
DDoS (distributed denial of
service) attacks. Focus on user
security. Adequate ext
ernal
insurance.
Level of risk
→
Trend
Strategic objective
Functioning of systems
–
fixed core, aggregation
and package core
The disruption or limited
performance of key
business processes due
to the failure of network
elements in national or
international fixed
telephony, and on the
mobile and fixed
aggregate network,
where the traffic of
mobile base stations and
fixed network CPE
devices are
concentrated.
Malfunctioning of
services, poor
quality of services,
loss of revenues
and reputation, and
dissatisfied users.
Preventive inspections of the
functioning of systems and the
adaptation of capacities, and
regular upgrades of software
and the aggregate part of the
mobile and fixed elements of
the network. Continuous
improvements to operational
and security procedures and
knowledge; strengthening of
personnel. Comprehensive
information security
management system (ISMS).
Level of risk
↑
Trend
Strategic objective
Management of
procurement process
Dependence on
suppliers. Strength of
suppliers, weaker
negotiating position of
the Company. Supply
delays. Ability of
suppliers to execute
transactions. Breach of
contractual provisions by
suppliers.
Higher costs of
goods and
services. Higher
stocks of strategic
materials. Impact
on the Company's
reputation. Longer
delivery times.
Longer
procurement
procedures.
Termination of
agreements with
suppliers.
Centralised procurement.
More frequent communication
with suppliers. Management of
the impact of rising prices
through intensive negotiations
and improvements in the
procurement process.
Collection of offers from several
suppliers and search for new
suppliers. Monitoring of the
cooperation of strategic
partners, and supplier
assessment. Ensuring the
necessary safet
y stocks of
strategic materials.
Level of risk
→
Trend
Strategic objective
Departure of key
employees, appropriate
employee structure and
organisational culture
Departure of key
employees, and
employees with crucial
knowledge and
certificates.
Lack of
competences and
major certificates
for strategic
projects and the
smooth
implementation of
business
processes.
Systematic approach in the
scope of the system for
managing key and perspective
employees, career planning,
internal mobility, the transfer of
knowledge, inclusion in
development
-training
programmes and mentoring
systems, and a flexible
remuneration and motivation
system. Company scholarships.
Activities that actively support
the building of the employer
brand.
Level of risk
→
Trend
Strategic objective
Presentation of risks by risk category
The graph presents levels of risk at Telekom Slovenije by risk category during the final quarter of 2021
and a comparison with target levels of risk. Target levels reflect risk management efforts at the
Company, and are reviewed and defined once a year.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
73
Avtenta
Risk
What is the risk?
What is the effect?
How is the risk managed?
Human resource risks
Lack of experts for
project implementation.
Higher costs and
impact on project
implementation.
HR strategy focused on
retaining and recruiting staff.
Employee motivation.
Level of risk
→
Trend
Strategic objective
GVO
Risk
What is the risk?
What is the effect?
How is the risk managed?
Risks associated with
rising prices of
construction services
and materials
Rising prices of
subcontractors on
account of economic
growth and an increase
in demand for
construction works.
Higher costs and
loss of revenues.
Coordination with
subcontractors and the
continuous review of
implemented works. Adaptation
of the work organisation and
processes.
Level of risk
→
Trend
Strategic objective
TSinpo
Risk
What is the risk?
What is the
effect?
How is the risk managed?
Risks associated with
achieving planned
revenues
Reduced volume of
sales, rising raw material
prices, supply delays
and pressure from the
competition.
Lower revenues
and higher costs.
Conclusion of annual
agreements, modernisation of
production and introdu
ction of
new programmes.
Level of risk
↑
Trend
Strategic objective
Failure of systems and disruptions to
operations
Credit risks
Corporate governance
Internal and external fraud and material
damage
Interest-rate risks
Regulatory and compliance-related risks
Business risks
Development and management of
products/services
Capital adequacy, long-term and short-
term solvency
Compliance with regulations and business
practices
Financial risk management
Market risks
Data management
Management and implementation of
processes
Currency risks
Management of projects and work teams
HR management and workplace safety
Level of residual risk Q4 2021
Target level of risk
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
74
TSmedia
Risk
What is the risk?
What is the
effect?
How is the risk managed?
Risks associated with
achieving planned
revenues
Reduction in the scope of
advertising.
Lower revenues.
Conclusion of annual
agreements, new advertising
products, new sales campaigns
and new contextual video
projects.
Level of risk
→
Trend
Strategic objective
Soline
Risk
What is the risk?
What is the effect?
How is the risk managed?
Risks associated with
adverse weather
conditions
Loss of salt production
due to adverse weather
conditions.
Reduced salt
production,
insufficient
inventories and
drop in number of
visits to the spa.
No insurance product to transfer
risk.
Level of risk
→
Trend
Strategic objective
IPKO
Risk
What is the risk?
What is the
effect?
How is the risk managed?
Failure to achieve the
planned number of
postpaid subscribers –
mobile segment
Risk of failure to achieve
planned number of
postpaid subscribers due
to the traditional prepaid
market. Changing user
habits and aggressive
competition through
favourably priced prepaid
packages.
Lower revenues.
Innovative offers to attract new
users. Up
selling of existing
private users and maintenance
of existing postpaid subscribers.
Adaptation of offer.
Level of risk
→
Trend
Strategic objective
Falling number of
prepaid residential users
–
fixed segment
Aggressive competition,
lower prices of
competitors, migrations of
users of prepaid services
to other operators.
Loss of revenues.
Reduced number
of subscribers.
Innovative offers to attract new
users and maintain existing
users, upselling and
maintenance of existing users
and campaigns to attract
inactive users. Adaptation of
offer.
Level of risk
→
Trend
Strategic objective
Diminishing profitability
of users and services –
fixed segment
Aggressive competition,
low prices and migration of
users to more affordable
packages.
Lower margin.
Monitoring of market
development. Additional benefits
for users, increase in sales and
cross
-selling.
Level of risk
→
Trend
Strategic objective
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75
Removal of local TV
channels from IPKO’s
platform
Failure to achieve planned
number of fixed network
users due to removal of
major local TV
programmes from IPKO’s
platform.
Loss of revenues
and higher costs.
Negotiations with other local TV
channels. Production of
appropriate local TV content.
Intensive promotion of other
content available via IPKO’s
platform.
Level of risk
New
Trend
Strategic objective
Risk associated with
ensuring high
-quality
programme content
Change in programme
content.
Increased funds
for exclusive content.
Loss of premium segment
users.
Lower revenues
and higher costs.
Loss of customers.
Constant monitoring of
broadcast content.
Regular
communication and negotiations
with suppliers. Search for new
partners to deliver content.
Intensive promotion of
alternative content.
Level of risk
↓
Trend
Strategic objective
Risks associated with
the payment of copyright
fees for the transmission
of programmes via the
cable network
Additional fees paid to the
collective association for
programme broadcasting.
Higher costs.
Negotiations with government
bodies regarding the level of
fees. Lawsuits before the courts.
Active communication with all
stakeholders.
Level of risk
→
Trend
Strategic objective
Compliance with tax
legislation governing
VAT and corporate
income tax
Compliance risks
associated with tax
legislation.
Higher costs.
Inclusion of a tax consultant.
Preparation of documentation.
Communication with the tax
authorities.
Level of risk
↑
Trend
Strategic objective
Payment of additional
fees for the use of the
infrastructure in
municipalities
Additional fees for the fixed
and mobile infrastructure in
municipalities.
Higher costs.
Use of all legal remedies.
Level of risk
↑
Trend
Strategic objective
Unfavourable outcome
from the purchase of
frequencies and
potential delays
Higher prices than planned
for the purchase of
frequencies and additional
conditions.
Delay in the acquisition of
frequencies for the
provision of broadband
mobile services.
Higher costs.
Inability to ensure
new traffic.
Reduced quality of
services and
impact on
brand.
Commitment to 800 MHz
frequencies, which are
important for the
development of mobile
services in Kosovo, and the
completion of digital
programmes. Preparations
for the purchase of
frequencies and the
restructuring of the network,
as required.
Lev
el of risk
↑
Trend
Strategic objective
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76
2.5 Compliance, competition protection and auditing
2.5.1 Compliance and anti-corruption
24
The Telekom Slovenije Group has identified compliance as a crucial element for long-term successful
operations. By ensuring compliance, we safeguard the rights and legitimate interests of Group
companies, senior management, employees and other stakeholders. We also ensure compliance with
the law, regulations and internal acts, and thus contribute to the strengthening of the integrity and
reputation of Group companies.
Key areas of the compliance management system
The compliance management system is
based on the identification and mitigation of
risks. To that end, special emphasis is placed
on measures in the area of competition law,
the prevention of corruption, conflicts of
interest, personal data protection and the
prevention of money laundering and terrorist
financing. Playing an important role in that
process are the prevention of irregularities
through preventive actions, and rapid and
effective measures in the event of identified
breaches.
The area of compliance is governed by the Telekom Slovenije Group’s Compliance Management
Policy, which applies to all Group companies. Telekom Slovenije has appointed officers for specific
areas of compliance. Those persons perform their functions independently.
Through Telekom Slovenije’s integrity plan, we have established an additional mechanism for
operations that are compliant with legislation, other rules, applicable recommendations, internal
regulations and ethical principles. That plan is a strategic, development and operational document
used to enhance the integrity of Telekom Slovenije’s operations. We use the plan, which we update
regularly, to assess risks and monitor measures.
The Code of Ethics of the Telekom Slovenije Group governs the basic principles of operations and
the responsibilities of employees in mutual relationships, and in relationships with the users of services
and all other stakeholders. It commits us to fair and transparent operations, to the protection of
personal data, information and business data, to the avoidance of conflicts of interest and the pursuit
of personal interests, to the prevention of corrupt acts, money laundering and the restriction of
competition, and to report dishonest conduct. Certain areas of the aforementioned code are also
defined in more detail in other internal acts. The content of the code is verified and updated by the
compliance and integrity officer. The importance of ethical and business standards for successful
operations is presented regularly during employee training. The code is published on Telekom
Slovenije’s website.
By signing the Commitment to respect human rights in the course of operations, Telekom
Slovenije further committed itself to respect human rights in the course of operations and to prevent
potential negative effects on human rights. The aforementioned commitment is part of the National
Action Plan of the Republic of Slovenia on the Respect of Human Rights in Business.
We dedicated special attention to compliance along the entire supply chain. To that end, we adopted
the Code of Conduct for the Suppliers of the Telekom Slovenije Group back in 2018. The content
of that code is included in business relationships with suppliers, while the code binds suppliers to act
in accordance with valid national and international regulations in their operations, and to respect the
highest standards of ethics and business conduct.
24
GRI GS 103-1, 103-2, 103-3, 102-16, 102-12
Prevention of
corruption and
conflicts of
interest
Competition law
Protection of
personal data
Prevention of
money laundering
and terrorist
financing
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
77
We manage conflicts of interest through the transparency of business and personal connections. The
Rules Governing Conflicts of Interest define the activities expected of employees to prevent the
occurrence of conflicts of interest. They also define the obligation of management staff to submit
annual statements regarding conflicts of interest, and the role of the Compliance Committee, which
assesses employee notifications (regarding the disclosure of circumstances that could result in the
existence of potential conflicts of interest) via an online application. The rules also include basic rules
on lawful lobbying before the bodies of the central government and local communities, and the holders
of public authorisations.
When transacting with related parties, Telekom Slovenije complies with the provisions of the new
ZGD-1k, which in certain cases requires the Supervisory Board’s prior consent for the conclusion of
such transactions, as well the publication of transactions with related parties in certain cases. We
established an internal procedure for that purpose in 2021. In the scope of that procedure, we
regularly verify whether a specific transaction is concluded in the ordinary course of operations and
under typical market conditions.
With the Rules on the Acceptance and Offering of Gifts and Invitations, we defined in more detail
rules regarding the acceptance and offering of gifts and invitations in the course of daily transactions
with business partners, public servants and officials. We thus further protect Telekom Slovenije Group
employees from erroneous assessments regarding the acceptance and offering of gifts and invitations,
which could result in financial damage, and damage to the reputation of management, employees or
the company.
We updated the Rules on Ensuring Compliance with Competition Law in 2021 by supplementing
the internal process of ensuring compliance with competition law and taking into account changes to
regulatory obligations. Those rules define procedures and internal controls for ensuring compliance
with competition law, and provide various instructions to employees on how to act in certain situations.
To that end, we also organise regular employee education and training.
Via different channels, employees and other stakeholders may anonymously and confidentially report
breaches of the Code of Ethics and other internal acts, or potential illegal conduct. A system for
receiving, handling and investigating reports was established at the Telekom Slovenije Group level in
2014, and is defined in the Rules on the Management of Reports and Protection of Whistleblowers.
We updated those rules in 2021 taking into account the guidelines set out in Directive (EU) 2019/1937
on the protection of persons who report breaches of Union law (the Whistleblower Directive). The
Whistleblowing Committee is responsible for the receipt, handling and investigation of complaints, and
proposes the adoption of measures when breaches are identified.
Telekom Slovenije manages potential risks associated with corruption in sponsorship and donation
activities through the Rules on the Treatment and Approval of Sponsorships and Donations.
Those rules are in line with the Code of Ethics, which states that Group companies may not use their
financial resources or in any other way support political parties.
25
No cases of corruption were identified and confirmed within the Telekom Slovenije Group in 2021.
26
Protection of privacy and personal data
27
The Telekom Slovenije Group is aware that the protection of the privacy and data of our users and
other stakeholders is crucial for maintaining trust in the Group and its services. High standards of
personal data protection and privacy form an integral part of our operations, and are supported by our
mission, vision and values.
Telekom Slovenije processes a large quantity of personal data relating to users, as well as the
personal data of other stakeholders (e.g. employees and business partners) as a large company. We
developed new services in 2021, such as a comprehensive IT solution for secure remote work, smart
city and safe web services, and an innovative insurance product. Data processing represents an
important element in all of those solutions, services and products. In that respect, we carefully verify
data processing rules and processes, and formulate them in such a way to ensure the safety and
compliance of data processing. We are aware that users will only use our services if they are confident
25
GRI GS 415-1
26
GRI GS 205-3
27
GRI GS 103-1, 103-2, 103-3, SASB: TC-TL-220a.1, TC-TL-230a.2
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
78
that their data are safe.
Also important in the context of the ever-increasing digitalisation of operations is constantly ensuring
cyber security. We thus ensure the cyber security of personal data at the Group level through Cyber
Security Operation Centre services and the continuous updating thereof.
We ensure the necessary level of employee awareness and knowledge through training in the area of
personal data protection and through instructions on how to work with personal data. We organised
mandatory personal data protection training in 2021 that was also mandatory for all employees who
come into contact with the personal data of users at authorised agents. Authorised agents also
received a total of seven hours of training on the substantive requirements the GDPR and practical
instructions. Telekom Slovenije employees completed 2,669 hours of training in the areas of
information security, safe/unsafe web, information security in work from home and phishing. We also
organised 332 hours of training at which we presented the basics of personal data protection and the
lawful processing thereof, improved knowledge of rules governing the protection and processing of
personal data and increased employee awareness. GVO organised a total of six hours of training in
this area, while TSmedia organised 16 hours, Soline eight hours and IPKO 3,381 hours.
28
Telekom Slovenije ensures the protection of the personal data and communication privacy of users.
Based on the law, we are also obliged to submit data regarding users to official authorities and
facilitate the lawful interception of communications. We thoroughly review and discuss every such
request. We received 1,926 requests from official authorities for user data in 2021, and rejected 38
requests as inappropriate.
29
We continuously monitor, update and improve personal data processing processes and procedures,
taking into account feedback from users and other stakeholders, as well as information obtained in the
scope of internal and external controls, in complaint resolution procedures and in the handling of
potential breaches of personal data protection. We also adapt processes and procedures with respect
to changes in the environment, which include changes due to measures in connection with the
COVID-19 pandemic, and changes in the regulatory environment.
Six supervision proceedings were conducted at Telekom Slovenije in 2021 (including three
proceedings that began in 2020) by the Information Commissioner and AKOS. Three proceedings
have already been completed, without identified breaches. We received 57 reports of events relating
to the privacy of users in 2021. No breaches were identified that could threaten the rights and freedom
of individuals. There was thus no reason to file reports with supervisory authorities. In cases where
irregularities were identified, we adopted measures to rectify them. In no cases that we handled did we
identify material breaches of personal data protection.
30
We did not record any losses in 2021 from legal proceedings against the Company as the result of
events in connection with privacy or the protection of the personal data of individuals.
31
Telekom Slovenije is bound to comply with the Prevention of Money Laundering and Terrorist
Financing Act, as it provides payment services (VALÚ Moneta) and electronic money issuing
services (VALÚ), and also transacts in own real estate. A system is in place for the aforementioned
services, as are rules, measures, procedures and internal controls aimed at the prevention of money
laundering and terrorist financing. In the scope of these activities, we did not identify any transactions
in 2021 for which money laundering or terrorist financing was suspected.
The Telekom Slovenije Group organises regular training, workshops and e-learning on the subject of
compliance for employees and authorised agents. We organised 349 hours of training in 2021
regarding compliance, competition law and the regulatory framework. TSinpo organised additional
training for the company’s management staff, while IPKO organised training regarding anti-corruption
policies and practices. We inform employees via the intranet or electronically about the importance of
compliance, current topics and challenges, and about specific activities and previously implemented
mechanisms in the area of compliance.
32
28
GRI GS 412-2
29
SASB: TC-TL-220a.4
30
GRI GS 418-1, SASB: TC-TL-230a.1
31
SASB: TC-TL-220a.3
32
GRI GS 205-2
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
79
Together with all subsidiaries, we strive to pursue the highest ethical and business standards, such
that we have established and regularly upgrade the compliance management system for the entire
Group. TSmedia adopted rules and appointed a compliance and whistleblowing officer in 2021.
Information of a public nature
In accordance with the Access to Public Information Act (ZDIJZ), we publish on the websites of
Telekom Slovenije and individual subsidiaries basic information regarding representatives, members
of management and supervisory bodies (the agreed amount and payment of remuneration to those
bodies), and regarding transactions concluded in connection with donations, sponsorships,
consultancy and copyright or other intellectual services (type of transaction, contractual partner, value
of transaction, date of conclusion and duration of transaction).
We published 532 proactive announcements in accordance with the ZDIJZ in 2021 and handled two
new requests for access to information, and implemented support activities (e.g. employee training).
Slovenian companies appointed officers responsible for the dissemination of information of a public
nature. Employees at Telekom Slovenije have an internal portal at their disposal with all relevant
information. Contact data for the submission of requests for electronic access to information of a public
nature can also be found on the websites of Telekom Slovenije and individual subsidiaries.
Reporting on taxes
33
The organisation and functioning of the tax function are governed at Telekom Slovenije by the
document Organisation of the Tax Function at Telekom Slovenije, d. d., which is approved by the
Company’s Management Board. The Finance and Accounting organisational unit is responsible for
drafting and monitoring the tax policy.
The Telekom Slovenije Group is committed to legally compliant operations. Tax-related risks are
therefore unacceptable. We have in place internal controls and procedures in accordance with the
Methodology on the Self-Assessment of Internal Controls and Reporting within the Telekom Slovenije
Group, which ensures proper tax treatment.
The document Tax Strategy and Tax Management within the Telekom Slovenije Group defines a tax
policy at the Group level, the management of tax-related risks and transfer prices. The underlying
principle of the Telekom Slovenije Group’s tax policy is the functioning of all Group companies in
accordance with local tax legislation in the countries where those companies are registered to perform
an activity.
The Telekom Slovenije Group’s tax policy has been defined to ensure the appropriate organisation
and functioning of the tax function within the Group, with the aim of optimising the tax burden through
the accurate, lawful and timely calculation and payment of taxes.
Tax-related risks are included in the risk assessment and reporting process. The Company’s
catalogue of identified risks includes risks associated with compliance with tax legislation, i.e. the
accurate and timely fulfilment of all types of tax obligations.
Telekom Slovenije reports on taxes for itself and the Telekom Slovenije Group, while subsidiaries
report for themselves in accordance with the laws of the countries in which they are registered.
Subsidiaries are obliged to establish the appropriate internal controls, and to report all deviations from
the provisions of the adopted tax policy to the parent company regularly and in a timely manner.
Every subsidiary must define the areas and adopt the general guidelines set out in the tax policy
independently, taking into account valid laws in the specific tax jurisdiction in which a company
operates.
Telekom Slovenije cooperates with the tax authorities in the course of ordinary operations, while
complying with valid legislation and fulfilling all tax obligations (registration, record keeping,
accounting, reporting, payment, etc.) in a timely manner.
33
GRI GS 103-1, 103-2, 103-3, 207-1, 207-2, 207-3
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
80
2.5.2 Competition protection and proceedings before the courts and other bodies
34
No new proceedings were initiated against Telekom Slovenije in 2021 due to the potential breach of
competition protection rules. There were two proceedings in this area before the Competition
Protection Agency (AVK) in previous years. Those proceedings are still pending. In 2021, the AVK
halted the proceedings to determine the breach of the prohibition of the abuse of a dominant position
as set out in the Prevention of Restriction of Competition Act and the Treaty on the Functioning of the
European Union, which it initiated on 19 March 2009. The AVK was unable to obtain evidence in the
retrial that would support the existence of Telekom Slovenije's predatory and exclusionary strategy in
Itak Džabest package. There were also no new proceedings initiated against Group subsidiaries.
Telekom Slovenije was party to the following significant proceedings before the courts in 2021:
x On 2 March 2021, Telekom Slovenije was notified by the Ljubljana District Court of a lawsuit
filed against the Company by T-2 for the payment of ordinary damages in the amount of EUR
12,195,656, payment for lost profit in the amount of EUR 35,760,909 and the non-existence of
claims in the amount of EUR 1,778,033, with appertaining amounts. The aforementioned claim
represents damages that the plaintiff allegedly incurred in the period 1 September 2018 to 31
July 2020. Telekom Slovenije believes that the plaintiff’s lawsuit will be rejected in full.
x Telemach filed a lawsuit against Telekom Slovenije (on 2 August 2021) for the payment of
damages in the amount of EUR 28,795,802 plus legally prescribed default interest from 1
June 2021 until payment. Telemach’s lawsuit is based on the alleged breach of regulatory
decisions issued by the Agency for Communication Networks and Services of the Republic of
Slovenia, and the alleged abuse of a dominant position. Telekom Slovenije believes that the
plaintiff’s lawsuit will be rejected in full.
x On 29 November 2021, Telekom Slovenije (previously Mobitel, d. d.) received a ruling and
decision from the Higher Court in Ljubljana in the economic dispute with the plaintiff Sky Net in
connection with the execution of an agreement under two lawsuits (total of EUR 33 million)
and in connection with the nullification of the agreement under a counterclaim (in the amount
of EUR 25 million). Under that ruling and decision, the Higher Court rejected Sky Net’s claim
and upheld the ruling of the court of the first instance, which rejected the remainder of Sky
Net’s claim regarding the issue of orders for the construction of 414 base stations and orders
to obtain documentation for 434 base stations. The court also ruled that Sky Net is obliged to
reimburse Telekom Slovenije’s legal fees in the amount of EUR 39,611.52 and the costs of
appeals proceedings in the amount of EUR 5,480. The Higher Court also amended the
decision of the court of the first instance regarding Telekom Slovenije’s counterclaim in
connection with the nullification of the agreement in question. The Higher Court determined
that the agreement concluded between the contracting parties in 2001 is null and void and
without any legal effect. With that decision, the Higher Court also rejected Sky Net’s
subordinated claim.
Provisions for obligations arising from legal actions are disclosed in the accounting report in point 31
Provisions.
External supervision proceedings
35
The Telekom Slovenije Group has established the uniform recording and monitoring of external
supervision proceedings initiated against the Company and/or its responsible person, and outlined the
conduct of employees in such proceedings. We define external supervision as an examination of the
Company’s operations to verify compliance with legal or contractual provisions or standards in the
performance of its activities.
There was a total of 91 external supervision proceedings within the Telekom Slovenije Group in 2021:
69 at Telekom Slovenije and 22 at subsidiaries. A total of 81 external supervision proceedings were
completed, 73 at Telekom Slovenije and eight at subsidiaries. More than one-third of external
supervision proceedings within the Telekom Slovenije Group derive from verification of compliance
with measures in connection with COVID-19. No breaches were identified at Telekom Slovenije in that
respect.
34
GRI GS 206-1, SASB: TC-TL-520a.1
35
GRI GS 307-1, 419-1
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
81
Review of supervision proceedings within the Telekom Slovenije Group in 2021 by area
2.5.3 Auditing
Internal auditing
The Internal Audit Service (IAS) performs transactions for all Telekom Slovenije Group companies,
and provides internal auditing services for two subsidiaries as an external contractor. The IAS
performs its work in accordance with expert bases, included in the Hierarchy of Internal Auditing Rules
and the Rules of Procedure for Internal Auditing within the Telekom Slovenije Group. The compliance
and quality of the IAS’s work are confirmed every year by internal quality assessment. An independent
external quality assessment was also carried out in 2021. The IAS works with senior management and
the supervisory body, and reports regularly to both with regard to its work.
The IAS’s work is performed by a team of professional and highly motivated internal auditors, each of
whom holds a professional title in the area they audit. They attend professional training regularly and
are active members of professional associations. Their experience facilitates the in-depth
understanding of the complex operations of the Telekom Slovenije Group.
The IAS plans transactions based on a collection of various data and information regarding operations
and risks, global trends, the Telekom Slovenije Group’s strategy, and information provided by senior
management and the supervisory body. When planning its work, it takes into account key business
objectives and the associated risks. Through audit transactions, objective assurances and other
transactions, including consultancy, it contributes to the strengthening and protection of the
organisation’s value, to continuous improvements in the effectiveness of risk management, control
procedures and corporate governance at Group companies, and to the fulfilment of the Group’s
mission.
Work in 2021 was defined in the IAS’s current work plan, which was prepared on the basis of its multi-
year plan for the period 2021 to 2025. Annual and multi-year plans are adopted by the Management
Board, and were also reviewed by the Audit Committee and approved by the Supervisory Board. In
addition to the transactions set out in the annual plan, two extraordinary audits were also performed in
2021.
Based on transactions performed, we find that risk management systems for achieving objectives are
in place and functioning. There are opportunities for improvements. For this reason, the IAS also
submitted recommendations for improving internal controls and the more effective management of
risks in areas subject to audit. In addition to internal recommendations, we also monitor the
recommendations of the external auditor and certain other assurance providers. We have a well-
developed system in place for monitoring recommendations that facilitates transparency in the
monitoring and assessment process, and ensures an appropriate reporting system.
0 5 10 15 20 25 30 35 40
Consumer protection
Electronic communications
Environment and spatial planning
Finance, taxes and accounting
Audio-visual content, culture, media
Employment relationships, safety and health…
Compliance with COVID measures
Personal data protection
Energy, traffic, fire safety
Other
Completed in 2021 New in 2021
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
82
External auditing
In accordance with the Guidelines for Ensuring the Independence of the Auditor of the Financial
Statements of the Telekom Slovenije Group, the audit firm PricewaterhouseCoopers (PwC) was
appointed to audit the financial statements of Telekom Slovenije and the Telekom Slovenije Group for
the 2020, 2021 and 2022 financial years at Telekom Slovenije’s 31st General Meeting of
Shareholders. Costs associated with the auditor are disclosed in the accounting report in point 42
Auditor’s fee.
2.5.4 Regulation of electronic communications
Frequencies
The public tender issued by the AKOS for the allocation of radio frequencies for the provision of public
communication services to end-users in the fifth generation (5G) mobile network was completed in
April 2021. Telekom Slovenije secured the radio frequency spectrum in the 700 MHz FDD band, 700
MHz SDL band, 1500 MHz band, 2100 MHz band, 3600 MHz band and 26 GHz band. We received a
decision on the allocation of radio frequencies on 10 June 2021. On 26 November 2021, the AKOS
published its strategy for managing the frequency spectrum for the period 2021 to 2023.
Development of next generation broadband networks
In March 2021, the Ministry of Public Administration published a tender for the co-financing of the
construction of the next generation of open broadband networks (5G). The ministry also began to draw
up the Digital Slovenia 2030 strategy, which will define in detail strategic guidelines for the
digitalisation of society in the future.
National legislation and EU regulations
The Ministry of Public Administration formulated the draft text of the new Electronic Communications
Act (ZEKom-2). That act transposes into Slovenian law the directive on the implementation of the
European Electronic Communications Code (EECC), which entered into force on 20 December 2018.
Telekom Slovenije submitted comments and proposed amendments to the draft act.
Relevant markets
The regulatory body (AKOS) conducted various inspections with respect to Telekom Slovenije in
connection with imposed obligations on regulated relevant markets. Single rates for call termination in
the mobile and fixed networks entered into force in July 2021 in accordance with Commission
Delegated Regulation (EU) 2021/654. The AKOS published analyses of two relevant markets on its
website in April 2021: relevant market 1 ‘Wholesale local access at a fixed location’ (formerly relevant
market 3a) and relevant market 3b ‘Wholesale central access at a fixed location for mass-market
products’. In September 2021, it published supplemented and partially amended analyses with
corrections following public consultations, and put them forth for further public debate.
Relevant market
Change
Relevant market 1 (2014/710/EU) ‘Wholesale
call termination in individual public telephone
networks at a fixed
location’
Relevant market 2 (2014/710/EU)
‘Wholesale
voice call termination in individual mobile
networks’
Relevant market 1 (2020/2245/EU) ‘Wholesale
local access at a fixed location’
Relevant market 3b (2014/710/EU) ‘Wholesale
central access at a
fixed location for mass-
market products’
Decision regarding the enforcement of a single
call termination rate at the EU level; the new call
termination rate
entered into force on 1 July
2021.
Decision regarding the enforcement of a single
call
termination rate at the EU level; the new call
termination rate
entered into force on 1 July
2021.
The agency published and called for public
consultation regarding market analysis.
The agency published and called for public
consultation regarding market analysis.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
83
Universal services
On 12 February 2021, the AKOS published changes to two general acts, through which it raised the
transfer speed for the universal service of internet access to 10/1 Mbit/s (previously 4 Mbit/s/512
kbit/s). The changes to those general acts entered into force on 13 April 2021.
Resolution of disputes in proceedings before the regulatory body
We inform users regularly and correctly about special conditions, sales offers, prices and changes in
the portfolio, which reduces the number of complaints. We also strive for the continuous improvement
of the complaint resolution at the first instance. According to data from the AKOS, Telekom Slovenije
has the lowest proportion of complaints before the aforementioned agency amongst Slovenian
operators. Findings from the resolution of complaints are always implemented in the process of
improving services and operations.
New services
Telekom Slovenije’s insurance, payment and energy services are also subject to the law and to
regulation by the competent supervisory authorities. Telekom Slovenije takes into account all
regulations and laws in the provision of those services.
Regulatory development in Kosovo
On 1 June 2021, the electronic communications regulator in Kosovo (ARKEP) issued IPKO a decision
regarding the allocation of rights to use 2x5 MHz in the 1800 MHz frequency band. The ARKEP began
the process of analysing relevant markets 3a and 3b in August 2021.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
84
2.6 Business environment and trends in the sector
2.6.1 Impact of the macroeconomic environment on operations
Slovenia
The COVID-19 pandemic had a diminished impact on economic activity in Slovenia in 2021 compared
with 2020, primarily due to the gradual adjustments made by companies and consumers to the new
situation. Measures to prevent the spread of COVID-19 primarily limited service activities, while other
activities largely linked to international trade for the most part functioned smoothly. Service activities
also recovered in the course of 2021 with the improving conditions.
Growth in economic activity in the euro area was higher than expected during the first half of 2021
(6.1% in year-on-year terms), with growth expected to continue in the future according to the forecasts
of international institutions. Euro area GDP is expected to grow by 5.1% in 2021, followed by 4.4%
growth in 2022, with the pre-crisis level expected to be achieved in the final quarter of 2021.
In its autumn forecast, the UMAR is expecting 6.1% GDP growth in Slovenia in 2021. Growth is then
expected to slow to 4.7% in 2022 and 3.3% in 2023. The situation on the labour market will improve
over the next two years, while limits in connection with the availability of the workforce will increase.
Risks and opportunities in connection with faster economic growth primarily relate to the
epidemiological conditions, the release of high savings, inflation and shocks in the economic and
social structure (bankruptcies, job losses, the impact on the banking and financial sectors, etc.). Global
growth and the more efficient use of funds from the Next Generation EU instrument could also result in
higher economic growth in Slovenia.
Key macroeconomic indicators in Slovenia
Sources: SURS, Bank of Slovenia, ECB and UMAR calculations and forecasts (Autumn Forecast of Economic Trends, September
2021).
Kosovo
Kosovo is a developing country, with GDP that is six times lower than Slovenia’s. Due to low GDP and
high unemployment, the prices of telecommunication services in Kosovo, where IPKO operates, are
still significantly lower than in Slovenia. The economy remains dependent on economic and
employment developments in Western Europe, and on foreign direct investments.
The economy is recovering quickly after the COVID-19 pandemic, and is expected to surpass the level
recorded in 2019 already in 2021. Economic activity will grow by 7.1% due to a stronger recovery in
the number of visits by expatriates, renewed consumer confidence and higher consumer lending.
Merchandise exports have been rising since 2020. Lower GDP growth of 4.1% is forecast for 2022,
while growth is expected to rise to 4.4% in 2023.
Significant inflationary pressures, primarily due to higher import prices, could undermine a stronger
recovery in private investments.
4.4
3.3
-4.2
6.1
4.7
3.3
2018 2019 2020 2021 2022
2023
GDP, real growth in %
3.6
4.8
-6.6
5.6
6.0
3.1
3.0
2.0
4.2
1.8
1.5
1.0
2018 2019 2020 2021 2022 2023
Private consumption (real growth %)
Government consumption (real growth %)
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
85
Gross domestic product in Kosovo
Source:
World Bank Group estimates and projections, Western Balkans regular economic report, No.20, Fall 2021.
2.6.2 Comparison of the Slovenian telecommunications sector with the EU
Source: European Commission, Digital Economy and Society Index, DESI 2021, Slovenia; AKOS – Household penetration rate
of active mobile telephony users (source for EU: GSMA).
Fixed broadband access market
Coverage by the very high-capacity fixed network is very good in Slovenia (66% compared with the
EU average of 59%). The penetration of broadband connection with a speed of at least 100 Mb/s has
increased in Slovenia (from 21% of households in 2019 to 29% in 2020), but continues to lag behind
the EU average (34% of households in 2020). A total of 88% of Slovenian households are covered by
high-speed next-generation networks, which is one percentage point higher than the EU average. The
coverage of households in rural areas has fallen to 63%.
A total of 66% of Slovenian households access the internet via fibre optics (figures for 2020) compared
with 43% of EU households. FTTX connections accounted for 48.7% of all broadband connections in
Slovenia in the fourth quarter of 2021.
The fixed broadband connection market in Slovenia continues to grow at a slow pace. IP television
(IPTV) continues to record growth, which is otherwise slowing, while IP telephony (VoIP) records the
lowest growth.
Telekom Slovenije is upgrading and expanding its fibre optic access network, and is thus laying the
infrastructure foundations for the future of the telecommunications activity.
3.4
4.8
-5.3
7.1
4.1
4.4
2018 2019 2020 2021 2022
2023
GDP (real growth in %)
80%
29%
0.02%
88%
66%
73%
99.9%
124%
98%
72%
77%
34%
1.3%
87%
59%
71%
99.7%
131%
51%
69%
Overall fixed
broadband take-up, %
households
At least 100 Mbps
fixed broadband take-
up, % households
At least 1 Gbps take-
up, % households
Fast broadband (NGA)
coverage, %
households
Fixed Very High
Capacity Network
(VHCN) coverage, %
households
Mobile broadband
take-up, Subscriptions
per 100 people
4G coverage, %
households (average
of operators)
Mobile take-up (voice
or data), subscriptions
per 100 people
5G readiness
(Assigned spectrum as
a % of total
harmonised 5G
spectrum)
Broadband price index,
Score (0 to 100)
Slovenia EU
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
86
Growth in fixed broadband connections in Slovenia
Source: AKOS, SURS, Q3 2021
Pay TV market
According to the forecasts of analysts from Analysys Mason, IPTV will continue to grow in Central and
Eastern Europe until 2026, both in terms of the number of connections and value (from 20.1 million
connections in 2021 to 24.9 million in 2026). Outlooks for growth in operator revenues focus on OTT
video services. By 2026, OTT video services will be used by nearly as many people as IPTV services.
IPTV accounts for 58.0% of all TV connections in Slovenia and continues to grow. It is followed by
cable TV (36.6%), where the number of connections has stagnated (fourth quarter of 2021; source:
AKOS). At 42.4% (fourth quarter of 2021), Telekom Slovenije holds the highest share of the IPTV
market (source: AKOS).
Mobile broadband access
Mobile broadband internet access remains one of the fastest growing segments in Europe. Primarily
smart phones are used for that access, followed by tablets and laptop computers. Europeans primarily
use fixed technologies to access the internet at home, while an increasing number of households are
also opting for mobile internet services.
The household mobile broadband access penetration rate stood at 91.2% in Slovenia in the fourth
quarter of 2021 and will continue to rise.
In 2020, Telekom Slovenije was the first in Slovenia to establish a national fifth mobile generation (5G)
network on existing base stations and in the existing 2600 MHz frequency spectrum, which is also
used for the fourth mobile generation network. Coverage with the 5G network stood at 38.8% at the
end of 2021.
Fixed and mobile telephony
According to the forecasts of analysts at Analysys Mason, the fixed telephony market will contract at
an annual rate of 5.0% (CAGR) in Central and Eastern Europe until 2026, to stand at EUR 2.8 billion
in revenues in 2026, compared with EUR 3.7 billion in 2020.
The proportion of VoIP connections stood at 89,4% in Slovenia at the end of the fourth quarter of
2021. That proportion is rising, albeit more slowly than in previous years. The proportion of traditional
telephony continues to decline and stood at 10.6%.
In the mobile segment, Slovenia’s per capita penetration rate of active mobile telephony users is
lower than in the EU (123.6% in the fourth quarter of 2021), meaning there is sufficient manoeuvring
room for further development.
The introduction of 5G services will have a minimum impact on average revenue per user (ARPU) in
Central and Eastern Europe until 2026. After declining in the majority of countries due to uncertainty
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
4q2017 4q2018 4q2019 4q2020 4q2021
BB connections VOIP IP TV
2%
5%
9%
2%
1%
8%
1%
4%
4%
2%
3%
3%
3%
1%
4%
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
87
in connection with the COVID-19 pandemic, ARPU will recover in Central and Eastern Europe due to
increased data usage.
Average revenue per user (ARPU) in Central and Eastern Europe until 2026
Source: Analysys Mason – Central and Eastern Europe telecoms market: trends and forecasts 2021–2026, January 2022,
based on data up to 2Q 2021.
B2B market
36
Revenues from telecommunications and ICT services for large enterprises in Western Europe will
rise from USD 32.5 billion in 2020 to USD 37.3 billion in 2025, at an annual growth rate (CAGR) of
2.8%. Revenues in Central and Eastern Europe will rise from USD 8.7 billion in 2020 to USD 10.2
billion in 2025, at a CAGR of 3.4%.
The majority of operator revenues in Western Europe will derive from dedicated connections and ICT
services, while growth in revenues is expected on account of the increased use of mobile data. Growth
in Central and Eastern Europe will be driven by the increased use of ICT services and a recovery in
the use of mobile data services. Revenues from voice services will continue to decline with the
discontinuation of copper networks across Europe, which will in turn accelerate the transition to
alternative cloud services.
Revenues from small and medium-sized enterprises in Western Europe will rise from USD 44
billion in 2020 to USD 48 billion in 2025, at a CAGR of 1.9%. Revenues in Central and Eastern
Europe will rise from USD 10.7 billion in 2020 to USD 11.5 billion in 2025, at a CAGR of 1.6%.
According to the forecasts of analysts at Analysys Mason, growth in revenues from ICT services in
Slovenia is expected to be 5.6% in 2021 (relative to 2020) and 6.8% in 2022. CAGR of 6% is
expected to be achieved until 2025.
Growth in the ICT services and solutions of the Telekom Slovenije Group will be based
on the existing superior LTE/4G network, and the opportunities offered by fifth
generation (5G) mobile networks. 5G technology will facilitate the development of the
smart industry and the further development of smart cities, as well as the introduction
of virtual campus networks, which in turn will enable the continued digitalisation of
various verticals, such as energy, transportation, logistics, industry, smart cities,
healthcare, and protection and rescue. The Telekom Slovenije Group will ensure the digitalisation of
society as a whole. Overall growth will be achieved through organic growth and the consolidation of
the Slovenian ICT market.
The number of cyber security threats will continue to grow. Ensuring appropriate information security
and the continuous control of the network and services therefore serve as the basis of the operations
of Telekom Slovenije. We thus facilitate the secure connectivity of fixed and mobile services via the
internet and provide cloud services for residential and business users.
36
SDG 8.2
4.3
4.3
4.5
4.8
5.0
5.2
5.4
5.6
5.8
5.9
6.1
6.2
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
20.0
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
ARPU (EUR na mesec)
Bulgaria Croatia Czech Republic
Estonia Hungary Latvia
Lithuania Montenegro Central and Eastern Europe
17.9
17.1
16.2
15.9
15.5
14.6
14.3
14.0
13.8
13.5
13.3
13.3
4.3
4.3
4.5
4.8
5.0
5.2
5.4
5.6
5.8
5.9
6.1
6.2
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
20.0
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
ARPU (EUR na mesec)
Poland Romania Russia
Serbia Slovakia Slovenia
Turkey Ukraine Central and Eastern Europe
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
88
Revenues from ICT services, forecast for Slovenia, EUR million
Source: Analysys Mason – Central and Eastern Europe telecoms market: trends and forecasts 2019–2025, February 2021,
based on data up to 3Q 2020.
21.8
25.9
30.7
33.8
35.6
37.5
39.6
42.3
44.8
48.0
50.6
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
CAGR 2019 - 2025 = 6 %
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
89
2.7 Marketing and sales
2.7.1 Market and market shares in key service segments
37
Key indicators of the Slovenian communications market
Source: Analysys Mason, Slovenia telecoms market report 2021, February 2021, Figures updated in July 2021 with data to 1Q
2021; AKOS, SURS (fourth quarter of 2021).
The fixed and mobile segments of the Slovenian communications market are dominated by four
convergent operators. Telekom Slovenije, A1 Slovenija (Telekom Austria Group), Telemach (United
Group) and T-2 compete amongst each other with a range of package services. Competition is stiff,
while the purchase of smaller operators by larger ones is common.
37
GRI GS 102-6, SDG 8.10
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
90
Leading operators on the Slovenian communications market
OPERATOR
TELEKOM SLOVENIJE
A1 SLOVENIJA
TELEMACH
T2
FIXED TELEPHONY
PSTN, ISDN, VoIP
VoIP
VoIP
VoIP
FIXED INTERNET
ADSL, VDSL, FTTH
ADSL, VDSL, FTTH,
CABLE
VDSL, CABLE, FTTH
VDSL, FTTH
PAY-TV
IPTV, CABLE, OTT
IPTV, OTT
CABLE, DTH, IPTV, OTT
IPTV, OTT
MOBILE SERVICES
9
9
9
9
INTEGRATED IT
SERVICES
99
XX
Market shares of leading operators in key segments, in %
Source: AKOS, fourth quarter of 2021.
Market shares in key service segments
The Slovenian telecommunications market (including systems integration and cloud services) is
developed and already in the phase of saturation. Telekom Slovenije maintains a high market share in
all segments in which it operates, and provides the most advanced services, tailored to the needs of
users. We maintain the leading market share in the IPTV, mobile telephony and mobile internet
segments.
Changes in the number of connections on the electronic communications market in Slovenia
Source: Statistical Office of the Republic of Slovenia, fourth quarter of 2021.
2,443,172
2,465,857
2,511,979
2,550,895
2,607,268
718,006
704,564
691,468
691,658
684,320
601,820
612,737
627,936
651,604
671,642
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Q4
2017 2018 2019 2020 2021
mobile telephony fix telephony BB connections
2,
50
0
0
0
0
0,
0
0,
,
00
0
500 000
1,
00
00
00
00
00
0
0
00
00
0
00
00
00
00
0
0
00
0
00
0,
0,
0,
0
0
0
0,
0
0,
00
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
91
Telekom Slovenije’s market shares in key segments
Source: Report on the development of the electronic communications market for the fourth quarter of 2021, AKOS; internal
Telekom Slovenije figures.
Fixed broadband access
There was a total of 671,642 broadband connections in Slovenia at the end of the fourth quarter of
2021 (compared with 651,604 during the same period in 2020), 86.2% of which were accounted for by
residential connections. The household fixed broadband access penetration rate reached 86.7% in
Slovenia (84.8% in 2020).
38
Telekom Slovenije holds a 27.8% market share in the aforementioned
segment.
The trend of a rising proportion of fibre optic connections and the offer of high-speeds in operator
packages continue. At the end of the fourth quarter of 2021, the number of active fibre optic
connections in Slovenia was already 327.006, which represents 48.7% of all connections. The number
of fibre optic connections rose by 13.7% in one year.
Market shares of fixed broadband technologies in terms of the number of broadband internet
connections in Slovenia
Source: Report on the development of the electronic communications market for the fourth quarter of 2021, AKOS.
Pay TV market
IPTV accounts for 58.0% of all TV connections in Slovenia, and is followed by cable TV (36.6%),
where the number of connections has stagnated (fourth quarter of 2021). According to figures from the
AKOS, pay TV is already present in 82.6% of households, compared with 81.7% in 2020.
38
Source: AKOS: amongst the most important indicators of the level of development of the electronic
communications market is broadband access penetration, which is calculated as the number of residential and
business broadband connections relative to the number of citizens or households in the Republic of Slovenia.
Fixed broadband access IP TV VOIP
Market share 27.8% 42.2% 32.1% 36.7%
Annual change (p.p.) -1.1% -2.0% -0.8% -1.2%
Connections 199,386 166,691 181,760 955,648
Annual change -1.0% -0.8% -0.8% -1.1%
Mobile telephony
28%
72%
42%
58%
37%
63%
32%
68%
IP TV
VOIP
M
obile telephon
y
ADSL: 8.8%
VDSL: 13.6%
DOCSIS 2.0:
2.7%
DOCSIS 3.0:
24.5%
FTTH: 48.7%
Other
technologies:
1.7%
Telekom Slovenije had more than
103,000 users on FTTH
connections at the end of the
fourth quarter of 2021 (2020:
94,700).
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92
Market shares of TV connections by technology
Source: Report on the development of the electronic communications market for the fourth quarter of 2021, AKOS.
Mobile telephony
The number of active mobile telephony users in Slovenia was up by 2.2% in the fourth quarter of 2021
or by more than 56,000 users relative to the same period the previous year. The penetration rate was
also up, to stand at 123.6%. At 36.7%, Telekom Slovenije maintains the leading share of the mobile
telephony market.
Shares of the mobile telephony market in Slovenia
Source: Report on the development of the electronic communications market for the fourth quarter of 2021, AKOS.
The volume of data traffic in 4G networks and the most advanced networks with mobile broadband
access is growing. At 31.8%, Telekom Slovenije holds the highest share of the mobile broadband
internet access market. The household mobile broadband access penetration rate stood at 91.2% in
Slovenia in the fourth quarter of 2021 and will continue to rise.
Cable
television:
36.6%
IPTV: 58.0%
Satellite
television:
4.8%
MMDS:
0.7%
At 42.4%, Telekom Slovenije
holds the highest share
of the
IPTV market.
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93
Advertising market in Slovenia
IPKO and the competitive environment in Kosovo
IPKO is one of the strongest market brands in Kosovo, and is the leading operator in the
fixed segment and the second largest operator in the mobile segment, where it enjoys a
continuous growth trend. IPKO is known on the market as an innovative brand with the
fastest mobile internet, the best coverage by the 3G/4G network, the best mobile and fixed network,
and the best content. It is also known as the most reliable and trustworthy brand, with the best user
support.
On the mobile services market, IPKO holds a share of 49.7% in terms of revenues and 48.0% in
terms of users (fourth quarter of 2021). The household penetration rate of active mobile telephony
users has reached 97.9%, which translates to 1.8 million users (source: Kosovo ARKEP regulatory
authority).
The mobile segment in Kosovo is dominated by two mobile network operators: Vala and IPKO. Vala
has been stagnating for years, while Zmobile (MVNO) has been dormant since 2019. The third
operator, MTS, operates to a limited extent with a temporary licence as the local subsidiary of Telekom
Srbija. The mobile market remains largely prepaid, with the widespread use of OTT applications and a
significant shift from voice to data services. IPKO remains the only operator in Kosovo with a fully
implemented internal country code (+383).
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Market shares of operators in the mobile telephony segment in Kosovo
Source: Kosovo regulatory authority (ARKEP), Q4 2021 report.
The fixed services market has become extraordinarily demanding in recent years. Three main
players compete for market share: IPKO, Kujtesa and Artmotion, followed by PTK and
Telkos/Orange/Ardi net (as an interconnected group). These operators promote their packages using
lower prices and higher internet speeds, and continue to focus on improving and upgrading their digital
programme schemes with sports and other TV content. IPKO, as a premium brand, remains the
leading provider of fixed services (DTV and internet), and maintains its leading position and premium
prices.
Despite stiff competition, IPKO has succeeded with a range of long-term subscriber agreements, and
has maintained a stable base of fixed subscribers by offering certain benefits.
Both the mobile and fixed segments are heavily influenced by the seasonal effect of expatriates, which
due to the easing of measures in connection with COVID-19, made an above-average contribution to
total growth in the number of users and revenues in 2021.
Market shares of operators in the internet segment in Kosovo
Source: Kosovo regulatory authority (ARKEP), Q4 2021 report.
50%
59%
59%
50%
37%
39%
39%
48%
12%
2%
2%
2%
2%
2018 2019 2020 2021
TK - VALA IPKO Zmobile mts Doo
IPKO:
28%
KUJTESA:
18%
Artmotion:
26%
PTK:
7%
Others:
21%
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95
2.7.2 Management of the portfolio of Telekom Slovenije’s brands
The Telekom Slovenije Group develops the most advanced digital technologies and services. We
believe in simple and secure solutions, and act prudently and responsibly in our everyday work to
achieve that end, with the knowledge that we generate benefits. We pay constant attention to the
portfolio of brands through the development of services. We thus registered six new brands in 2021,
which are presented below.
Identity of the umbrella brand
The main communication theme of the Telekom Slovenije brand in 2021 was ‘Creating the future’,
which we are doing on the basis of superior connectivity (with a superior fibre optic network: super-
fast, safe and reliable internet), the best TV experience (with content for the entire family: film
experiences, animated adventures, sporting spectacles and new worlds of games), the fastest mobile
network (5G), socially responsible conduct (donations, sponsorships and partnerships) and concern
for a sustainable future.
On the fixed services market, the Telekom Slovenije brand reassumed the role of strongest operator,
and remains the first choice and the brand with the highest recall rate on the market. Through our
efforts invested in the development of the network, we maintain our position as the leading Slovenian
operator with the best and fastest network. The brand is making advancements in terms of trust and
recognition as the brand that offers the most for the money. Users also highlight strong technical
support, loyalty and a feeling of security (BrandTrack, autumn 2021).
Telekom Slovenije is also the leader in brand strength in the mobile services category. It offers more
choices that the competition, while its strength derives from a base of satisfied and loyal users.
(BrandTrack, autumn 2021).
The brand ranked amongst the 10 most reputable Slovenian companies again in 2021 in the eyes of
both the general public and business public (Reputation of Slovenian Companies, autumn 2021).
As an employer brand, the Telekom Slovenije brand is accompanied by the slogan #connected. We
use the slogan in the communication of HR activities, in communication with employees and in
communication on social networks. The common theme of activities is the commitment of the
employer brand: Co-creating the digital future of Slovenia.
Portfolio of brands
The Telekom Slovenije Group has 291 registered brands, while Telekom Slovenije has 198
39
brands,
broken down as follows:
• 142 national brands,
• 18 European brands,*
• 20 international brands,*
• 8 national brands in North Macedonia,
• 8 national brands in Kosovo,
• 1 brand in Bosnia and Herzegovina, and
• 1 brand in Serbia.
* Due to Brexit, we further protected 18 European brands and two international brands in the United
Kingdom in 2021.
Telekom Slovenije registered six new brands in 2021: Brihtanavt, Brihtanavtka, Brihtaplac, Modro
mesto, Supr and Zavarovanje brezskrbni.
39
GRI GS 102-7
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
96
We extended the registration of 13 brands, while we let the registration of 14 brands expire.
Registered brands owned by the Company include Mobitel, SiOL, Mobi, Itak, PIAZZ, NekiNeki, TViN,
Moneta and WiFreeLjubljana (a partner brand).
The complete list can be found on the website http://www2.uil-sipo.si/.
Key brands in the portfolio
The NEO brand is a platform for smart living that links the best solutions for home and entertainment
in one place: simplified viewing and advanced searches for TV content, including voice-control in
Slovene, the simplified management of smart devices, and purchases via the TV screen. NEO
facilitates back viewing for up to seven days and recording for later viewing for up to 30 days. It offers
safe content for children and cloud gaming for the entire family, which can be used without a console
on the user’s television.
The NEO platform had more than 130,000 satisfied users in 2021. We continuously add new features,
and develop and upgrade NEO. The new graphical adaptation of the interface in 2021 provides users
a standard user experience on all devices (including PC, mobile phone and tablet).
VALÚ is more than a smart wallet and payment and identification system; it is a comprehensive
service that changes a mobile phone into a handy smart device for accessing everything the user
needs in today’s life. In 2021, we linked the VALÚ Smart Wallet and the VALÚ Moneta payment
service, and thus further simplified the use of both services for users. We added to the VALÚ
ecosystem the new related Sitium application that is intended for accessing services in the
municipalities of Novo Mesto and Nova Gorica.
We also enriched the portfolio of products in the VALÚ Market, where we also sell Paysafe products,
prepaid cards for the mobile telephony services of Slovenian operators, and tickets for skiing, events,
trains and city buses in Maribor. We will also supplement the range of products in the future.
At the request of the regulator, we introduced an additional authentication element (PIN) in VALÚ
Moneta. At the end of 2020, we also offered users the VALÚ MasterCard that they can use to make
payments at 53 million points of sale across the globe.
The IZI brand addresses young and less demanding users for whom a contemporary prepaid offer is
important. Additional operator services are not so important to them, and they are not interested in a
subscriber relationship. At the identity level, the brand is friendly and affable, while relationships are
important for the brand, whose tagline is ‘Simply IZI’.
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97
Values and brands
Brands have defined elements, such as a brand’s essence and the values of the umbrella brand,
followed by a brand’s own values, approach strategy, primary segment, possibility of extensions and
key indicators. All elements are reviewed and updated every year.
More detailed guiding principles for all key brands are accessible at https://www.telekom.si/o-
podjetju/skupina-telekom-slovenije/blagovne-znamke.
Other Telekom Slovenije Group companies operate on the market independently, and are represented
by their own logo and corporate identity. In addition to the corporate brand, the portfolio of subsidiaries
in Slovenia also includes the key sub-brands of individual companies and their services. A detailed
description of individual brands and services can be found on the websites of the associated
companies.
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2.7.3 Sales of the Telekom Slovenije Group
40
The number of the Telekom Slovenije Group’s retail and wholesale broadband connections was up
by 3% at the end of 2021 relative to the previous year. The total number of connections was up by 2%
in Slovenia and by 6% in Kosovo.
The number of retail and wholesale mobile telephony users was up by 1% in Slovenia and by 11% in
Kosovo. The total number of mobile telephony users was up by 5%.
The number of traditional fixed voice telephony connections is in constant decline on developed
markets. In Slovenia, the number of connections was down by 4% in 2021 relative to the end of 2020.
Together with VoIP services, the number of voice telephony connections was down by 2% relative to
the previous year.
TELEKOM SLOVENIJE GROUP CONNECTIONS AND SERVICES BY TYPE AND MARKET
Broadband connections
Number of connections as at
31 December 2021
31 December 2020
Index
21/20
Slovenia – retail
199,386
201,420
99
Slovenia – wholesale
169,937
160,323
106
Slovenia total
369,323
361,743
102
Kosovo – retail
108,298
102,515
106
Telekom Slovenije Group
477,621
464,258
103
Mobile telephony
Number of connections as at
31 December 2021
31 December 2020
Index
21/20
Slovenia – retail
955,648
965,867
99
Slovenia – wholesale
150,341
132,861
113
Slovenia total
1,105,989
1,098,728
101
Kosovo – retail
856,611
775,148
111
Telekom Slovenije Group
1,962,600
1,873,876
105
Fixed telephony and VoIP services
Number of connections as at
31 December 2021
31 December 2020
Index
21/20
Slovenia – traditional fixed voice telephony
291,335
302,867
96
Slovenia – VoIP
181,760
183,174
99
Slovenia total
473,095
486,041
97
Kosovo – VoIP**
35,089
35,027
100
Telekom Slovenije Group
508,184
521,068
98
40
GRI PA4, GRI GS 102-2, 102-6, 102-7, SASB: TC-TL-000.A, TC-TL-000.B, TC-TL-000.C
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
99
Sales revenue of the Telekom Slovenije Group
The Telekom Slovenije Group's net sales revenue totalled EUR 648.2 million in 2021, a slight increase
relative to 2020. Data for 2020 do not include the revenues of Planet TV.
Breakdown of sales revenue by company
41
in EUR thousand
2021
2020*
Index
21/20
Telekom Slovenije
577,630
591,693
98
Other companies in Slovenia
77,710
78,180
99
IPKO – Kosovo
70,904
56,156
126
Other companies abroad
3,897
3,908
100
Exclusions and adjustments
-81,894
-82,761
-
Telekom Slovenije Group
648,247
647,177
100
* Excluding Planet TV.
TELEKOM SLOVENIJE
Telekom Slovenije’s sales revenue was down by 2% or EUR 14.1 million in 2021 relative to 2020, to
stand at EUR 577.3 million. Revenues from the mobile segment of the end-user market were up
relative to the previous year, primarily due to higher revenues from the sale of mobile merchandise.
Revenues were lower in the fixed segment of the end-user market due to a decline in revenues from
traditional voice telephony, as the result of the falling number of traditional connections and their
replacement with mobile and IP telephony, and due to lower revenues from the sale of licences, which
resulted in lower costs of subcontractors.
B2C market
We face very price-aggressive competition on the mobile and fixed services market. The mobile
telephony market continues in the direction of unlimited call minutes and messages, both in Slovenia
and countries covered by the EU tariff. We have been facing a rising number of subscribed agreement
terminations on the fixed market since the introduction of an ERT model of regulation by the AKOS
(the use of Telekom Slovenije’s network by alternative operators). We have partially halted that trend
through continuous activities.
In accordance with the relevant EU directive, we have increased data transfer quantities included in
mobile packages and in options for additional purchases of quantities for use in countries covered by
the EU tariff. With the aim of facilitating the 5G experience, we updated packages, and transformed
the old Naj C package into the Naj 5G package. We also standardised the line of Naj packages and
increased the quantity of gigabytes (GB).
In February, we offered users the new Za dva mobile package, which facilitates the conclusion of two
subscriber agreements on a joint account. An extended period of work from home and distance
learning led to an increase in users’ needs for higher mobile data transfer quantities. To meet those
needs, we developed the new Mobilni Net Neomejeni 5G package, which facilitates unlimited data
transfer at home. Users thus have at their disposal an additional three Mobilni Net packages.
We developed an entirely new strategy in the segment of young users. At the beginning of the
school year, we launched the mobile SUPR package for young users between the ages of 15 and 31
years. The service includes two exceptionally innovative ways to obtain additional gigabytes. The first
is a reward for loyalty, where we increase the quantity of gigabytes by 1 GB every month. The second
way is to obtain additional gigabytes by staying active and exploring Slovenia. We also updated the
packaging in which new users receive a SIM card. With stylishly adapted packaging from recycled
paper, we have covered another of the main values of today’s youth. In accordance with the updated
portfolio, we discontinued the sale of NekiNeki packages in September.
We adapted the portfolio of small and medium-sized business users who were forced to adapt their
operations due to the COVID-19 pandemic. We stood by their side and helped them implement
changes in their operations with services for the digitalisation of operations. We offered them
41
GRI GS GS 201-1
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
100
affordable services that serve as the basis for successful operations. We updated mobile internet
packages and added the Mobilni Net Neomejeni 5G package, which facilitates the exploitation of all
advantages of the 5G network.
We offered business users who work in the field or smaller retail outlets the compact portable Sunmi
V2 PRO, which combines a printer and tablet for petty cash operations in one device. Entrepreneurs
get everything in one place that they need for quick transactions at mobile points of sales.
In the segment of prepaid users, we prepared different specially priced offers for Mobi users
throughout the year: 10+10 e-vouchers, double quantities for the Mini Mobi and Čvekaj Mobi packages
at the end of the school year and SIM cards for EUR 1 at the beginning of the school year. We gifted
the MultiSIM Mobi package with the purchase of a smart watch for kids, and facilitated the free transfer
of numbers to Mobi packages.
We offer IZI users: the IZI SuperKUL package at the end of the school year, SIM cards for EUR 1 at
the beginning of the school year, the use of HR-internet Plus during summer holidays and the free
transfer of numbers to IZI. We began to optimise and simplify the portfolio, updated additional
purchases of quantities, and discontinued the existing IZI Diskont and IZI Vračilo packages.
We updated packages for the users of SPAR MOBIL, where we discontinued the Spar 6000 and
Spar 500 packages, and introduced the Spar XL and Spar L. The transfer of numbers to SPAR MOBIL
was free throughout 2021.
In the fixed segment, we upgraded the basic internet speed in the NEO Svet B package free-of-
charge to meet the growing needs of users for higher data transfer speeds. We upgraded internets
speeds to 60/30 Mbit/s free-of-charge for users who do not yet have a fibre optic connection and use a
copper connection to access the internet and IPTV.
We increased the number of wireless fixed package subscribers in all locations where there is no fibre
optic connection. We can thus provide those users data transfer speeds of up to 100/20 Mbit/s, while
users can watch two TVs at the same time. They also have at their disposal the same programme
scheme as subscribers on fibre optic and copper connections.
We upgraded 54 older fixed packages with current NEO packages free-of-charge, and facilitated the
use of the most advanced services.
We launched NEO Games in the scope of the NEO platform and introduced a new form of
entertainment to TV screens. Telekom Slovenije is consolidating its position as the most advanced
operator, as we are the first and only operator on the Slovenian market to offer cloud gaming. We
refreshed the online NEO experience on the neo.io portal and in the mobile NEO application.
With the NEO Smartbox, we offered users numerous new functionalities and several new TV
programmes, including new Disney Junior programmes for kids, the Cinestar TV 2 and Cinestar TV
Fantasy movie channels, Fox News and Pickbox TV, Adria Music Television, Folx Music Television,
Slovenija and One Adria Music Television, and the Arena Sport 3, Arena Sport 4 and Arena Fight
sports programmes. Sport is home again on NEO with the connection of the entire range of Arena
programmes.
We were the only operator in Slovenia to offer NEO Smartbox users the programme option Chess
with Laura Unuk, Slovenia’s leading chess player and holder of the title ‘International Master’. Via the
video store on the NEO platform, Laura Unuk offers chess lessons for complete beginners and more
experienced players.
For sports enthusiasts, we set up the thematic page Olympic Games Tokyo 2020 in NEO, where
users could watch broadcasts by category and Olympic sport on different TV programmes. Users were
able to access the thematic page on all platforms. We introduced the new Highlights function.
We also provide smart home services in the scope of the NEO platform, where users can select
between a range of different smart sensors, cameras and other devices for controlling, managing and
automating the home.
We added 11 new radio stations to the TV programme scheme.
The Ljubljana International Film Festival (LIFFe) made it possible for Telekom Slovenije’s
subscribers to watch movies from the comfort of their homes again last year due to the restriction on
the number of visitors to cinemas. We made 44 films from the festival available to our subscribers in
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
101
the DKino video store. As the main sponsor of the festival, we also facilitated the exclusive viewing of
four films from last year’s LIFFe after LIFFe series.
We brought the advanced VALÚ and VALÚ Moneta payment services even closer to users in 2021:
we facilitated the use of higher monthly limits and deferred payments, and ensured an even higher
level of payment security and full control over use in the upgraded user interface of the mobile
application. Users of iOS mobile phones can pay for purchases in the App Store via invoices for
telecommunication services.
We made an important step forward in the Online Store in terms of the development of online
platforms and the upgrading of existing functionalities and systems, such as the possibility of
extending subscriber agreements for fixed packages online and the fully digital signing of subscriber
documentation.
We continued to expand the portfolio by making products for home, work, school, sports and
entertainment available to users and customers in one place. We expanded the portfolio to over 5,200
products spanning more than 130 categories, with more than 2,900 of those products available in the
Loyalty Programme with the option of instalment payments. When selecting products, we place special
emphasis on sustainable use. We increased the number of products available for sale in the Online
Store by 25%. Online shoppers recognised purchases in the Loyalty Programme as the simplest
online instalment purchases in the country (source: research regarding online purchases and loyalty
programmes, Valicon, September-October 2021), which is further proof that our strategy of continuous
development is appropriate.
The VALÚ KLUB loyalty programme remains an important factor in ensuring customer satisfaction,
which we achieve through continuous development and the personalised treatment of members. The
number of members continues to grow.
We enhanced the insurance of mobile devices in 2021 with new coverages. Amongst risks covered
by insurance, we added an extended guarantee of up to 36 months from the date of purchase for
mobile phones, and coverage for the unauthorised use of the VALÚ Smart Wallet in the event of
burglary, theft or pick-pocketing. We also expanded extended guarantees to tablets, laptops and smart
watches.
We presented an important milestone in the Slovenian insurance sector. We developed an innovative
solution, through which Zavarovalnica Sava offers the subscribers of mobile services the Worry-Free
travel insurance product. This is the first ‘pay-by-use’ travel insurance, meaning payment according
to the actual number of days an individual is abroad. This technical solution is the result of our own
expertise, and was patented with the Slovenian Intellectual Property Office by Telekom Slovenije.
We supplied electricity to households and small business customers in 2021. We withdrew from the
electricity supply market on 1 January 2022.
Points of sale and sales network
Our points of sales were closed from the beginning of the year until 9 February 2021 due to the
COVID-19 pandemic. During that time, we transformed them into pick-up points where users could
pick up or exchange equipment with prior notice. We also made available to users a video call option
to Telekom centres (TC) via the Viber and WhatsApp platforms during that period. We moved 37 sales
counsellors from Telekom centres, 16 advisers for small and medium-sized enterprises and five sales
trainers to various call centre teams. We accelerated the execution of outgoing call campaigns for the
retention of users and the migration to the fibre optic network, and for obtaining approvals. We made a
total of 198,314 calls in 2021, compared with 157,446 calls in 2020. We also introduced universal work
stations, meaning users can satisfy all of their needs in one place.
Net revenues from the sale of additional equipment were up by 53% in 2021 relative to 2019, prior to
the COVID-19 pandemic, and by 46% relative to 2020. We recorded record sales of NEO Smartboxes
in an extremely positive user response during NEO action week. We continued to implement the Sales
Excellence programme and introduced the certification of sales staff in all sales channels.
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102
B2B market
Through a comprehensive approach, we
provide the private and public sectors vertical
solutions and access to the most advanced
technologies. For the provision of
comprehensive ICT solutions, we obtain the
requisite certificates and partner statuses, and
strengthen employee competences. Worthy of mentioning are
the following important partner statuses and certificates:
x CSP (Cloud Solution Provider) status and Direct Partner
for the sale of Microsoft cloud services (Microsoft 365,
Azure and Express Route). In that respect, we also supply
Microsoft software through SPLA (Service Provider
Licence Agreement) channels and high-volume
agreements (Open License and Open Value Program). We have Gold Partner Status for eight
competences and Silver Partner Status for four competences. The most important are Gold
Partner Status for Cloud Productivity and Cloud Platform, and Silver Partner Status for Security.
We have become the leading provider of business telephony in the MS Teams environment. Our
comprehensive portfolio also includes our own services, such as management, maintenance,
migration and various consultancy services.
x We enjoy Premier Partner Status in the area of systems integration (Premier Integrator) for
Cisco technological solutions.
x We have HP Partner First Platinum Status for the sale of personal and printing systems, and are
an HP Amplify Power Services Partner – Workstations Specialist. We are registered with HPE as
a Business Partner for the sale of server and network systems, and data storage systems, while
we have also received the statuses of Silver Hybrid Cloud Specialist, Silver Aruba Specialist and
Silver Pointnext Services Sales Specialist.
x Platinum Solution Provider status for Dell Technologies, which combines Dell, EMC, VMware
and AirWatch, and security portfolio that primarily comprises RSA and CarbonBlack.
Cyber security is an element of operational risk management at an increasing number of
organisations. The Cyber Security Operation Centre (CSOC) monitors, analyses and responds to
security events for Telekom Slovenije, and other organisations and companies. An integral part of the
CSOC is the Telekom Slovenije Computer Emergency Response Team (TSLO-CERT), which is a
member of the community of Trusted Introducer response centres.
Through cyber security solutions, services and projects, we round off the increasingly well-established
concept of zero trust, which dictates constant verification at all points in the IT system.
We continuously upgrade the portfolio of business data and mobile services, and combine it with the
Safe Business Web service. We presented the 360 Safe mobile package to business users. Together
with Cisco, we expanded business telephony with the globally recognised Webex tool for cooperation
between teams and virtual meetings.
DIGITALISING
THE FUTURE
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Telekom Slovenije’s cyber security solutions and services
In 2021, we upgraded IoT services for smart cities, which are provided in an environment with NB-
IoT communication protocols. In the scope of a single platform, we facilitate the collection and
processing of data, the inclusion of the solutions of partners who are experts in specific areas and a
single overview of data. The platform includes a control application for municipalities and the mobile
Smart City application for residents.
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At various utilities companies that supply water and energy and provide rubbish collection services, we
implemented pilot projects for the advanced collection of data regarding consumption via our mobile
network. We participate in major projects relating to the smart supply of water and energy and smart
farming.
We implemented three major projects aimed at introducing solutions for smart parking lots. We
established a traffic-calming system in three municipalities. It is a sectional speed measurement
system used to measure vehicle speeds on specific road sections.
Comprehensive 360° review of IoT services for smart cities
The smart system of integrated healthcare allows healthcare institutions to provide telemedical
treatment to treat patients with the most common chronic diseases (chronic heart
failure, asthma, chronic obstructive pulmonary disease, diabetes and high blood
pressure), and to monitor and treat them remotely. A solution for the telemedicine
treatment of COVID-19 patients with milder indications who are recovering at home
has been introduced in clinical practice at the national level via the national
telemedicine centre at the University Medical Centre in Ljubljana. The solution is in
place in a network of hospitals and health centres throughout Slovenia. We ensure the centralised,
real-time monitoring of the vital functions of patients seriously affected by the coronavirus (in so-called
COVID-19 wards) at the University Medical Centre in Ljubljana and the Celje General Hospital.
The smart system of integrated healthcare makes it possible for chronic patients to remain in constant
contact with healthcare staff from anywhere (e.g. from their home environment). Vital functions can
also be monitored remotely, without visiting a clinic. A special remote care eCare service is available
to patients, the elderly, disabled persons and others requiring assistance to live independently in their
home environment. One of the things that the aforementioned service facilitates is the detection of falls
at home.
Inter-operator segment
Domestic wholesale services
On the domestic wholesale market, we increased the number of broadband connections on our fibre
optic access network in 2021, and decreased the number connections on the copper network, while
recording total growth of 5.7%.
Revenues in 2021 were at the level recorded in 2020. We achieved higher revenues from broadband
services in connection with operators who roam in our fibre optic access network, and higher revenues
from the leasing of the mobile infrastructure.
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International wholesale services
Revenues on the international wholesale market were also at the level recorded in 2020. We recorded
growth in data services relative to 2020, primarily due to the monetisation of the Milan–Sofia section of
the network.
Due to reduced travel opportunities (impact of COVID-19) during the first six months of the year, we
saw negative effects primarily in roaming and voice services, while revenues from roaming services
were up during the summer. The drop in voice traffic was also due to the increased scope of work from
home and growth in the use of alternative technologies that facilitate user calls and content in one
place. Despite that and falling prices, we were able to maintain a solid market position. Special
attention was given to cost control in the area of roaming services, as the traffic of Telekom Slovenije’s
subscribers in countries covered by the EU tariff is rising sharply as the result of roaming services on
the single market (‘roam like at home’). Internet traffic was up, forcing us to increase existing
capacities.
The regional fibre optic network, which is based on Telekom Slovenije’s backbone network, brings
an alternative connection between the Balkans and other major hubs in Western Europe. That network
represents an important strategic advantage of Telekom Slovenije on the data services market in the
region. We sell free capacities on the regional network to our international partners and large end-
users on the wholesale and retail markets. In 2021, we modernised and upgraded the network
between Milan and Vienna, where we noticed growth in revenues.
Telekom Slovenije’s regional fibre optic network
TSMEDIA
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TSmedia is the leading provider of digital media content and advanced advertising solutions in
Slovenia. The company co-creates the media space with one of the leading online media in the form of
Siol.net and represents a business information centre with the Bizi.si business assistant, the only
official telephone directory in Slovenia (itis.si), the najdi.si website and outdoor digital screens.
In 2021, TSmedia introduced a new registration system and upgraded several functionalities in the
Siol.net online media, replaced old screens with higher quality equipment and expanded the network
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GRI TA2
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of screens it manages (Nova Gorica, Kranj and Novo Mesto). It published the TIS 2022 telephone
directory in print and DVD form and upgraded the itis.si website.
TSmedia generated sales revenues of EUR 6.1 million in 2021. Revenues were up by 9% relative to
the previous year, primarily as the result of advanced and creative forms of advertising in the scope of
the SiOl product.
AVTENTA
Avtenta is the leading partner for managing and implementing SAP solutions and paperless
operations on the Slovenian market. It specialises in:
• the implementation of SAP ERP solutions;
• the implementation of paperless operations;
• the provision of expert support and assistance to more than 15,000 users of solutions (SLA);
and
• information support for business processes with standardised package solutions (SAPaaS and
BCaaS) and integration with various systems.
Avtenta generated net sales revenue of EUR 8.6 million in 2021, an increase of 6% relative to 2020.
Revenues were up primarily due to improved results in the sale of document system solutions.
SOLINE
As the manager of the Sečovlje Salina Nature Park (SSNP), Soline protects and sustainably
preserves natural and cultural heritage in the park and produces salt using a traditional method. It
also offers salt-based cosmetic and food products, and manages the Lepa Vida Thalasso Spa.
Soline generated net sales revenue of EUR 4.3 million in 2021, an increase of 51% relative to 2020,
but still below the pre-pandemic level. Soline produced 1,671 tonnes of salt in 2021, which is lower
than the long-term average. Lower production was the result of climate change. The Lepa Vida
Thalasso Spa received 7,201 visitors, an increase of 11% relative to the previous year, while the
SSNP received 31,000 visitors, an increase of 73% relative to 2020.
GVO
GVO is the leading provider of comprehensive solutions in the areas of project design, and the
construction, management and maintenance of telecommunications networks in Slovenia. The
company is also expanding to related activities in the construction and maintenance of infrastructure
facilities. projects co-financed by the European Union from the European Regional Development Fund
and by funds from the Slovenian budget. These are projects to construct and manage open
broadband networks in rural areas.
The company generated sales revenue of EUR 53 million in 2021, a decrease of 9% relative to 2020.
The company continues to record growth in revenues from the management and maintenance of open
broadband networks, and revenues from services for the parent company. The company generated
lower revenues from investments and maintenance for the parent company and on the market.
IPKO
IPKO has developed from the first internet provider to cover all of Kosovo into a contemporary
company that offers a comprehensive range of convergent mobile communication, fixed
telephony, internet and cable TV services.
The company generated sales revenue of EUR 70.9 million in 2021, an increase of 26% relative to 2020.
That increase was the result of intensive marketing activities and less-stringent covid-related measures
relative to the previous year, which led to the influx of expatriates to Kosovo from abroad, which in turn
had a positive effect on sales in all segments.
IPKO remains the strongest brand amongst telecommunication companies in Kosovo.
TSINPO
TSinpo is a service and disabled workers’ company. The company produces and markets
cardboard tubes and packaging under its own brand. The company is present primarily on the
Slovenian market with small-batch production, but is also present to a lesser extent in neighbouring
countries, almost exclusively on the B2B market. TSinpo provides the parent company various support
services, such as the control, servicing and distribution of telecommunications terminal equipment, the
technical preparation of telecommunication works, the compilation of sales and other packages, the
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distribution of marketing materials, the preparation and distribution of CRM materials for end-users,
the maintenance of the documentary material archive and a correspondence contact centre. It is also
present on the market with documentary material scanning and packaging services.
TSmedia generated sales revenues of EUR 1.4 million in 2021, similar to the level generated the
previous year.
2.7.4 Market communication
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With the aim of rejuvenating our umbrella brand and building awareness that we are the operator with
the best network in Slovenia, we presented three new creative platforms in the spring: Creating the
Future (for residential users), Small Company. Big Entrepreneur. (for small and medium-sized
enterprises) and 360˚ Do Business Safely, Do Business Digitally. (for large enterprises).
Review of market communication activities
We executed more than 120 advertising campaigns and projects (compared with 100 in 2020), with a
major emphasis on targeted segments and digital campaigns. Through communication based on the
Creating the Future platform, we communicate that, with the best services in the best network, the
future is literally in our hands and we are actively creating it today.
In the scope of that platform, we presented the range of NEO Svet
packages and mobile NAJ packages. We rounded off the year in
the mobile segment of the portfolio with various promotional offers
and the associated communication activities, with an emphasis on
the 5G network, Naj packages and promotional offers of different
mobile phones. We presented NEO as an integrated platform
throughout the year via different new content, with the launch of
NEO Igre in January and thereafter with an emphasis on
expanding the range of the most popular sport content.
The 2020 Summer Olympic Games were held in Tokyo in 2021, with Telekom Slovenije serving as a
traditional partner of the Slovenian Olympic Committee. For this reason, we recruited Olympic athletes
for advertising in the summer: Janja Garnbret, Primož Roglič and Tadej Pogačar, who presented the
potential uses of the NEO platform. All three won Olympic medals. We also recruited athletes to
support 5G technology in all mobile packages.
We continuously supported sales activities by communicating the ever-expanding portfolio of the
Loyalty Programme.
According to research regarding online purchases and loyalty programmes (Valicon,
September−October 2021), our Loyalty Programme was recognised for the Simplest online instalment
purchase.
We celebrated 30 years of mobile telephony in Slovenia with a New Year’s campaign.
During the first half of the year, we primarily addressed the segment of young users through digital
activities with special mobile phone offers. We launched an entirely new offer in September in the form
of the SUPR package or movement for young people.
We communicated the range of VALÚ Smart Wallet services via digital activities in which we
encouraged the updating of profiles and attracted new users (prize games, cooperation with the
Slovenian Student Union). We also presented the VALÚ Market offer.
We presented the eCare service to the elderly and their families. The service facilitates carefree and
safe living for older people, especially if they live alone. We supported services in the autumn months
with a broad communication campaign.
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Monthly campaigns included Smart Phone and Black Friday (in November). Two Smart Phone
campaigns were also of a charitable nature.
Through the communication of IZI prepaid services, we addressed the target group of simple, primarily
young users. We supported the spring campaign with entertaining radio advertisements and
advertisements on YouTube, which we continued in the autumn, together with activities on social
networks.
As the first sustainable story in the scope of the Creating the Future platform, we presented the
Creating a Green Future campaign in the autumn. In exchange for used mobile phones brought by
users to any Telekom Slovenije point of sale, we planted 1,000 honey-bearing trees in Slovenia in
March 2022. Users receive a Treecelet sustainable bracelet for every used mobile phone they bring.
In the small and medium-sized enterprise segment, we presented the new communication platform,
‘Small Company. Big Entrepreneur’. The emphasis of communication throughout the year was on the
digitalisation of operations, and was supported by products such as Pantheon Web Light, Mobile Cash
Register, e-pricelist, Business Net and NEO Business. We addressed Slovenian farmers with a special
offer.
We addressed the large enterprise segment with the ‘360˚’ communication platform under the slogan
‘Do Business Safely. Do Business Digitally’. In 2021, we organised fourteen webinars and four
events at which we presented current topics in the areas of cyber security, Microsoft web services, the
smart infrastructure, workplace management, 5G, eCare and video communications. We also
organised three major events:
x a meeting with business partners, with whom we celebrated 30 years of mobile telephony and
presented the opportunities brought by 5G technology;
x together with ELES, we presented a solution for the mass charging of electric vehicles, and
demonstrated for the first time in Slovenia a link between the charging and energy
infrastructure, and the functioning of the remote management of electrical vehicle charging;
and
x with Akademija Finance, we organised the event ‘Smart municipalities through digitalisation’,
at which we presented smart city solutions.
Through lectures and presentations, we actively participated in the Digital Innovation Hub Slovenia
during Slovenia’s presidency of the EU Council.
Events, promotions and communications with users
We participated in more than 40 events and promotions that were organised live, virtually and in hybrid
form. We addressed users via 450 campaigns using text messages and direct mail.
We presented Telekom Slovenije’s portfolio to users in seven catalogues, three of which were sales
catalogues, while two catalogues were intended for small and medium-sized enterprises and two
catalogues of products were for members of the Loyalty Programme. We also prepared more than
100 other pieces of printed materials (flyers, leaflets and brochures).
Over a three-month period, we visited more than 15 cities and towns, and addressed more than 4,000
people at 44 promotional events with the NEO house.
Digital presence
The main website www.telekom.si/en recorded more than 24 million visits, which is slightly less than
the record number of visits in 2020. The proportion of total visits using mobile devices has stabilised at
70%.
On social networks (Facebook, Twitter, Instagram, YouTube and LinkedIn), we have one of the largest
bases of followers among companies in Slovenia who transact directly with users, while we are a
leader amongst telecommunication operators in that regard. We refreshed our communication on
Instagram and brought it closer to a younger audience, and thus increased the number of followers by
18%.
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Facebook
Twitter
Instagram
YouTube
LinkedIn
209,349
12,136
16,222
3,941
8,689
Also rising is the number of followers of the VALÚ and IZI brands on social networks, where we are
present on Facebook, and on Instagram where we are present with the VALÚ brand. We repeated a
communication campaign for the IZI brand on the still fast-growing TikTok social network.
For effective user lifecycle management, we updated rules on the execution of campaigns in 2021,
and adjusted the timing of user contacts, so that the latter would be continuously informed about new
developments, the current portfolio and personalised content to the greatest extent possible. We
added special automated campaigns to celebrate users’ birthdays and thank them for their loyalty. We
sent more than 12 million emails (an increase of 20% relative to 2020) in the scope of more than 400
e-campaigns, organised 1,300 text-message campaigns, sent more than 1.5 million short text
messages and organised nearly 700 call campaigns with more than 35,000 calls.
Ethical marketing
Telekom Slovenije is a signatory of the code of conduct for providers of electronic communication
services for the protection of users, the code of mobile operators and internet providers aimed at user
protection, and the ETNO Corporate Responsibility Charter. To that end, we follow the
recommendations of the AKOS relating to concern for users.
Through its responsible editorial policy, TSmedia ensures safe and transparent access to freely
accessible content in our media. We call on those making comments on the Siol.net website to respect
the etiquette of online communication, and moderate user comments, so that comments encouraging
hate speech are not published.
The market communication activities of Telekom Slovenije and TSmedia are in line with the Media Act
and the Slovenian Advertising Code, while we also self-regulate our advertising. This means we verify
compliance with the law and codes every time communication projects are planned. We also adhere to
the examples of best practices drawn up by the Slovenian Advertising Chamber
(www.soz.si/projekti_soz/dobra_praksa/). IPKO also complies with general professional advertising
codes.
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In 2021, the Healthy Society movement raised concerns about the ‘Experience 5G in the best network’
advertisement due to the use of children to promote the use of a mobile phone and the 5G network. A
young girl appears in the advertisement, standing in front of an athletics stadium. Via a mobile phone,
which she used solely as a training aid, she received instructions from top athletes on how to train to
achieve even better results. At the same time, she was able to connect with other young athletes to
support and encourage each other. The purpose of the campaign was to encourage and motivate
users to achieve their goals. The aforementioned movement also reported the advertisement to the
Slovenian Advertising Tribunal, which ruled that we did not breach Article 18 of the Slovenian
Advertising Code. As a socially responsible company, we comply with professional recommendations
and guidelines, and warn and teach adolescents and children about the correct and safe use of
screens and the internet. The advertisement in question was of an informative nature and did not
contain direct commercial content.
No Telekom Slovenije Group companies breached codes or voluntary standards in the area of market
communication in 2021.
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2.8 Network, technologies and IT
2.8.1 Development of networks, services and projects
46
Research projects
Participation in European projects facilitates the development of new services and technologies in the
international environment, as well as cooperation with domestic and foreign partners. It also opens
new business opportunities on the ICT market.
The majority of European research projects in 2021 were carried out in the scope of the Horizon 2020
programme. We focus on areas where the intensive development of new technologies is in progress,
in particular the Internet of Things, cyber security and support for critical communications.
Major research and development projects in which we participated included:
x 5G Safety,
x 5G-LOGINNOV,
x 5G-IANA, and
x PRECINCT.
We are closely monitoring and applying for new tenders together with international partners. We have
applied for the SUNRISE, ATLANTIS, LIZARD, DRONECIS2 and CROSS-DEAL projects, which will
contribute to the improved reliability of networks.
The strategic objective of the 5G Safety project (https://5gvarnost.iskratel.com/), which was completed
on 30 November 2021, was the development of 5G products and services adapted to the needs of the
Public Protection and Disaster Relief (PPDR) sector, and the development of a new generation of
user-oriented applications for the personal security needs of citizens. The project also studied
strategies for introducing user-oriented applications in a virtualised 5G environment for shared use,
with security, privacy and compatibility with current PPDR communication systems ensured.
In the scope of the project, we carried out studies relating to the radio network and mobile core to
ensure a mobile network that will meet the needs of PPDR users. We studied the needs of PPDR
users in connection with the information security of the mobile network and mobile terminals. We also
identified different user groups in the PPDR system. Various rights for individual services or the
system itself are allocated to those users depending on their role.
The project was co-financed by the Ministry of Education, Science and Sport as part of the Operational
Programme for the Implementation of European Cohesion Policy in the period 2014 to 2020. The
project included four consortium partners: Iskratel, the Faculty of Electrical Engineering at the
University of Ljubljana, Telekom Slovenije and OSI.
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The 5G-LOGINNOV project (https://5g-loginnov.eu/) focuses on the 5G network, and the development
of innovative logistics solutions in the scope of Industry 4.0. Solutions will be tested at the ports in
Koper, Hamburg and Piraeus.
We are setting up a development-test 5G network with additional MEC (Multi-Access Edge
Computing) capacities in the vicinity of the Port of Koper in the scope of the project. That network is
intended for the development and testing of solutions for optimising processes, increasing efficiency
and reducing environmental impacts in the management of transport logistics. When testing solutions,
we and our project partners will use the latest fifth generation mobile network technologies and
devices, sensors, automation, analytics and traffic management systems, including the use of self-
driving freight vehicles.
As part of the project, we defined in detail potential applications that will be implemented in the test
environment at the Port of Koper. We analysed the 5G network in order to make the necessary
adaptations to the network in the test-development environment, taking into account the specific
needs of ports.
5G-LOGINNOV is a European development project that is being financed by the European
Commission in the scope of the Horizon 2020 programme. The project consortium comprises
15 partners from eight European countries, including three partners from Slovenia: the Port of Koper,
Telekom Slovenije and Internet Institute. The project is expected to be completed in September 2023.
The aim of the European 5G-IANA project (https://www.5g-iana.eu/) is to establish an open 5G
experimental platform for the needs of the automotive industry. The platform will be intended primarily
for small and medium-sized enterprises, and will facilitate the development, set-up and testing of
innovative solutions in connection with self-driving vehicles and communication between devices in
vehicles.
Telekom Slovenije participates in the project with fifteen partners from eight European countries. In the
scope of the project, we will provide the 5G infrastructure necessary to test the experimental 5G
platform. In addition to the 5G network, we will provide a cloud service infrastructure and the
necessary virtualised environment, in which partners will establish virtual network functions (VNFs).
The aim of the European PRECINCT project (https://www.precinct.info/) is to connect critical
infrastructure managers to protect against cyber threats and natural disasters in a specific
geographical area.
In the scope of the project, we will use simulations and artificial intelligence to develop tools for
identifying security vulnerabilities, and various measures for the more effective provision of critical
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infrastructure security. Successfully developed security concepts will then be transferred to other
geographical areas and used to upgrade security mechanisms there. They will thus contribute to the
increased security of the population and the improved reliability of the European critical infrastructure.
The project is expected to last until the end of September 2023, and will include 40 international
partners from different European countries, including seven from Slovenia. With those Slovenian
partners, we will establish a test environment to ensure the security of the critical infrastructure at the
Ljubljana train station and the surrounding area.
2.8.2 Access networks
Through the fixed access network, we ensure broadband coverage, and the high performance of the
cable network and active access devices. We continued to modernise radio and fibre optic access
networks in 2021, while development activities focused on the Internet of Things, 5G technology and
the provision of services through the mobile network.
FTTH fibre optic access network and access devices
We have provided users transfer speeds of up to 1 Gbit/s on the fibre optic network since 2007, and
up to 10 Gb/s upon request, which more than meets the bandwidth needs of current and future
telecommunication services.
We continue to expand and upgrade Telekom Slovenije’s fibre optic access network. We facilitated the
connection of an additional 42,150 Slovenian households to the fibre optic infrastructure in 2021.
Together, more than 411,000 households in Slovenia have access to the fibre optic network. We
provide users higher internet speeds and a superior user experience in terms of broadband content.
We are also optimising cost efficiency and working to achieve the objectives of the Digital Agenda for
Europe, which lays down development until 2025 (Connectivity for a European Gigabit Society).
We introduced an advanced technological access solution that enables symmetrical gigabit
connections on the fibre optic network with a speed of up to 10 Gb/s.
We are also introducing GPON and XGS-PON technologies on the existing FTTH network using point
to point topology, which allows us to optimise the number of functional locations with active equipment,
reduce the scope of required active equipment and achieve higher speeds throughout the entire
network.
We are making a technological migration from the copper to the fibre optic network. ADSL2+
technology is making way for VDSL2 technology on the copper network. The latter facilitates higher
speeds and the improved transmission symmetry, in particular from the user to the network.
Transmission systems
We continued to expand the DWDM ROADM network, and included 100G and 10G interfaces in
accordance with traffic requirements.
We tested synchronisation distribution for the 5G network via DWDM systems and achieved excellent
results, which served as the basis for the planned upgrade of the DWDM network. We will thus
facilitate synchronisation transmission in the network.
We built the Ravne na Koroškem–Vienna and Nova Gorica–Milan DWDM sections on the regional
optical network (RON). We included a higher number of 100G connections on the Balkan–
Vienna/Milan section. Representing a major project on RONs in 2021 was the inclusion of a 12 x 100G
connection on the Sofia–Ljubljana–Milan section.
Telecommunications cable network
We are building a network in urban centres and rural areas in accordance with the development
strategy, economic criteria and the expectations of users and owners. In that respect, we are
consistently fulfilling all commitments we have given regarding the construction of a fibre optic network
in locations where we have expressed interest. We are working with municipalities, local communities
and other infrastructure operators in the joint construction and upgrading of the infrastructure, and are
thus facilitating the more rapid and efficient construction and connection of users to the broadband
network. We are expanding fibre optic connections to base stations and for business users.
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Radio network
We continued to upgrade base stations at existing and new locations in 2021, and upgraded software
and modernised 4G and 5G equipment. We modernised and upgraded additional locations with 5G
technology in the 2600 MHz frequency band, and in the newly acquired 700 MHZ and 3600 MHz
frequency bands. We increased the capacities of base stations due to the rising volume of mobile data
traffic, and improved the external and internal coverage of the mobile radio signal, in part through the
construction of base stations at new locations.
At the frequency auction organised by the AKOS, we acquired new radio frequencies in the 700 MHz,
700 MHz DSL, 1500 MHz, 2100 MHz, 3600 MHz and 26 GHz frequency bands for a period of 15
years.
The following were connected to Telekom Slovenije’s radio access network in Slovenia at the end of
2021:
x 1,418 GSM base stations,
x 908 UMTS base stations,
x 1,443 LTE/4G base stations, and
x 302 5G base stations.
We cover more than 96% of the population with the LTE/4G network, more than 84% of the population
with the LTE-A/4G+ network, and more than 38% of the population with the 5G network. We included
241 small cells for internal coverage needs.
The superior user experience of our mobile network is confirmed by internal measurements, according
to which we are the leader in terms of:
x coverage of territory and the population;
x average download speeds;
x average upload speeds;
x the time required to establish a call and the success of that process.
Internal measurements are also confirmed by independent international research, which reaffirmed in
2021 that Telekom Slovenije’s mobile network is the leader or shares the leading position in all
categories of the measurement of user experience quality.
Users’ needs for even higher-capacity mobile internet access are growing every year. That trend was
particularly evident in 2021 due to the COVID-19 pandemic.
We increased the number of 5G base stations to 302 in 2021. We continued
with the first phase of the upgrading of the network with 5G technology
according to the NSA (non-standalone) principle. We are also planning
implementation according to the SA (standalone) principle. With the connection
of the first production verticals, we brought digitalisation even closer to the
manufacturing sector and the economy as a whole. We ensure coverage with
the 5G network in the 2600 MHz, 3600 MHz and 700 MHz frequency bands,
primarily in cities, business centres and along transport routes, and also in
some rural areas. 5G technology has brought users faster and more reliable mobile data transfer.
We are planning the smart 5G infrastructure in such a way that facilitates numerous virtual dedicated
networks for specific business verticals, such as e-healthcare, energy, transport, factories, smart cities
and communities, etc.
Provision of services to users
We provide services to the entire segment of residential users and to companies of all sizes. We
ensure the rectification of service-related incidents, and the inclusion of new users and changes to the
configurations and user devices. We also implement technical solutions adapted to the needs of large
business users and provide connectivity at major sports and social events.
We are implementing the S.M.A.R.T. development and training programme, which affects the
excellence of the user experience. We achieved a high transactional NPS (technician visit), which was
85 index points in 2021, an increase of 4 index points relative to the previous year. We also provide
consultancy services to users.
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We carried out the ‘Lightning-quick visit’ communication campaign again in 2021, through which we
raised users’ awareness about the consequences of lightning strikes, and advised users to disconnect
their electronic devices from the electricity and communications networks during storms and when
they are away for extended periods. Users in Slovenia also have at their disposal the text-message
alarm service, which provides real-time information regarding lightning strikes close to their
connection. Activities bring tangible results, a reduction in the amount of damaged terminal equipment
and fewer interventions by field technicians.
We launched an application that gives technicians standard access to digital tools and improves
communication between them. We continued to optimise the organisation, which can be seen in the
reduction of labour costs, improved efficiency, and reduced time to market and fault clearance times.
We adapted to conditions in connection with the COVID-19 pandemic again in 2021, and continuously
provided services without disruptions.
2.8.3 ICT and network services
47
We have drawn up a key technological tender for the upgrading of the core network with 5G
technology. Procurement procedures are in progress and will be completed in 2022. In order to
prepare the network and infrastructure for 5G technology, we are upgrading the core and aggregation
network, implementing cyber security elements at the level of the telecommunications signal, and
introducing containerisation technology. In terms of the development of private 5G networks, we have
set up a dedicated 5G network for smart factories in conjunction with the Faculty of Mechanical
Engineering at the University of Ljubljana, and have begun to set up a dedicated 5G network at the
Port of Koper (as part of the 5G-LOGINNOV project).
We ensure the smooth functioning of the network and services 24 hours a day, every day of the year.
In 2021, we expanded the offer of proactive control for business users, which is an integral part of the
Security and Control Centre.
The Technical Help Desk achieved the best results in terms of success, response time and average
fault clearance time for both residential and business users. All of this is reflected in a high level of
customer satisfaction. We also provide technical support to users via bot technology.
We continued to develop the Cyber Security Operation Centre by ensuring additional employee
competences and developing tools. We thus provide an increasing number of companies and
organisations cyber security services, as well.
48
Ensuring cyber security and business continuity is one of the strategic priorities of our operations,
which was seen quite clearly during the COVID-19 pandemic. Both areas represent important support
processes in ensuring the functioning and security of the network, and in the management of key
services and processes.
We successfully completed various specialist certifications in the area of information technology and
cyber security. Our activities included:
x the renewal of the ISO 27001 certificate for the information security management system
(ISMS);
x the renewal of the ISO 22301 certificate for its business continuity management system
(BCMS); and
x the acquisition of ISO 27018 certificates for the protection of personal data in Telekom
Slovenije’s cloud.
ISO 27018 represents the international Code of practice for the protection of personally identifiable
information (PII) in public clouds acting as PII processors. It includes guidelines for the establishment
of generally accepted control objectives, controls and guidelines for the implementation of measures to
protect personal data. It thus helps Telekom Slovenije, as a provider of cloud services, to ensure high
standards of protection for the information and data of its users.
47
GRI PA6
48
SASB: TC-TL-550a.2
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We increased capacities in the network and at inter-network connections due to users’ needs for
increasingly higher data transfer speeds. Due to an increase in data traffic on the network and growth
in traffic in the public ICT cloud, we have updated certain elements of the network and upgraded
various service platforms. We implemented numerous activities to ensure the maximum availability of
the fixed and mobile network.
The reliability of the network is also seen in a high network availability rate of 99.99%. The average
duration of network disruptions was 0.86 hours during the year. The average actual continuous data
transfer speed in Telekom Slovenije’s network is illustrated in the table below.
49
IP traffic,
average in Gbit/s
Residential
users
Business
users
Mobile
network
download
46.9
19.5
4.7
upload
789.1
31.6
32.8
We established alternative channels for emergency calls to 113 during the upgrading of the network.
We have discontinued the majority of the TDM-based exchanges for voice services and migrated all
remaining TDM users to a single TDM switch, which will remain in the network until the final retirement
of TDM technology. We fully upgraded the core element of the MPLS backbone network and began
the upgrading of the aggregation network, which also serves as the basis for the development of 5G
technology in the 3600 MHz spectrum.
We continued to implement projects on the B2B market for atypical ICT solutions, such as network
solutions, technical support and the maintenance of communications equipment, workstation support,
etc.
Through the continued development of the NEO platform, we have facilitated new functionalities; we
launched cloud gaming and continuously improve voice control in Slovene. We updated the online and
mobile NEO applications, added safe home functions and devices, provided a comprehensive range
of programmes via Adaptive Video Streaming (OTT), and added new programmes and content.
In the area of IoT, we expanded the first commercial smart parking project, which currently includes
eight parking lots with more than 300 parking spaces, and implemented several pilot projects in the
area of remote meter reading.
To support business processes and BSS/OSS, we are carrying out a number of activities to support
sales campaigns, new packages and new products. We updated the application for managing
telephone numbers on the cloud infrastructure as part of the modernisation of OSS.
We continued activities in connection with solutions to prevent customer turnover, and expanded the
option of concluding a binding subscriber agreement in the fixed segment with the purchase of
products in the Online Store. We integrated the new Safe Web service into our portfolio for residential
and business users to protect them against online fraud, while the service is also appropriate for
parental control. In September, we introduced something new on the Slovenian market in the form of
the SUPR subscriber package for young people, which rewards customer loyalty with an additional 1
GB of data per month. Together with Zavarovalnica Sava, we developed an advanced travel insurance
product that is linked to mobile roaming, where users only pay a premium for days they are actually
abroad.
To simplify and optimise work at the Technical Help Desk, we linked the ITSM Remedy fault
management and CRM systems, and thus facilitated the more efficient recording and clearing of non-
technical service faults.
49
SASB: TC-TL-520a.2, TC-TL-550a.1; GRI PA4
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
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2.9 Sustainable operations
Slovenia celebrated 30 years of mobile telephony and the internet in 2021. The driver of development
throughout that period has been the Telekom Slovenije Group. Through our infrastructure and services
and the most advanced solutions, we are contributing to Slovenia’s development into a digital society.
We develop the most advanced digital technologies and services, and generate benefits with ICT.
Benefits for the Company and its employees. Benefits for shareholders. Benefits for society. Benefits
for the environment. Benefits for all stakeholders. We responsibly manage the economic, social and
environmental impacts of our operations, and build principles of sustainable development into our
operations, products, services and content.
When reporting on sustainable development, we focus on the material topics that are presented in the
table below, and include content throughout the entire report.
Material topics regarding the Telekom Slovenije Group’s sustainable development
50
Material sustainability
aspects
Material sustainability topics
Superior user experience
x Provision of high-quality access to telecommunication services
x Superior quality and the prompt elimination of faults
x Development of innovative products and services
x Cyber security
x Personal data protection
Responsible and
successful operations in
the long term
x Ethical and transparent operations
x Effective corporate governance
x Long-term value of investment
x Performance that facilitates a stable dividend policy
x Compliance
x Respect for human rights
Concern for talented
employees and a
stimulating work
environment
x Healthy and safe working environment
x Attractive employment opportunities for perspective employees
x Employee involvement in decision-making
x Training and personnel development
x Diversity of employees and equal opportunity
Digitalised and inclusive
society
x Promotion of digital literacy
x Technological solutions for tackling today’s social challenges
x Wide access to services and responsible infrastructure expansion
x Support for sport, culture, science and humanitarian causes
Mitigation of climate
change and the efficient
consumption of natural
resources
x Responsible consumption and protection of natural resources
x Climate change, biodiversity and carbon footprint
x Circular economy and waste management
x Energy efficiency
Comprehensive supply
chain management
x Partnerships and long-term cooperation
x Management of sustainability aspects in the supply chain
x Clear supplier selection criteria
2.9.1 About the annual report
Statement regarding the non-financial operations of the Telekom Slovenije Group
Reporting on the operations of the Telekom Slovenije Group and Telekom Slovenije is carried out in
line with the requirements of the International Financial Reporting Standards and national legislation
(ZGD-1K).
Our progress in environmental, social, governance and economic areas (ESG) is presented
comprehensively in the annual report in accordance with the international Global Reporting Initiative
(GRI) standards. We have been reporting in accordance with the GRI guidelines since 2009 and in
accordance with that organisation’s Global Standards since 2016, while taking into account previous
50
GRI GS 102-47
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
117
generations of GRI recommendations for the ICT and IT sectors, and the media. Compliance with
those guidelines is verified by independent external institutions. We also disclose in the annual report
our contribution to the sustainable development goals of the United Nations and, for the first time this
year, compliance with certain indicators of the SASB (Sustainability Accounting Standards Board)
standard for the ICT sector.
Non-financial information is included in all chapters, which can be seen from the references to GRI
indicators throughout the report and from the transparent GRI content index. The inclusion of
information regarding non-financial operations and the diversity of management and supervisory
bodies is thus in line with the requirements of the new Companies Act (ZGD-1K) adopted in 2021. The
operating highlights take into account the Alternative Performance Measures set out in the ESMA
Guidelines, while we also monitor the relevant legislation in the area of non-financial reporting.
The Company established a permanent task force for sustainable operations that monitors legislation
and trends in the area of sustainable development, and adopts recommendations and measures for
their implementation in the operations of the Telekom Slovenije Group. The Company will
subsequently publish disclosures of shares of taxonomy eligible and non-eligible economic activities
as set out in Commission Delegated Regulation (EU) 2021/2178 of 6 July 2021 supplementing
Regulation (EU) 2020/852.
Drafting of the report and scope of reporting
51
The Controlling and Corporate Communications organisational units coordinate the compilation and
publication of the annual report. Data and information are captured with the help of structured
questionnaires, the content of which is prepared by experts for specific areas from Telekom Slovenije,
GVO, TSmedia, Soline, Avtenta, TSinpo and IPKO. The accounting report is compiled by the Finance
and Accounting organisational unit.
Information regarding operations and indicators of sustainable operations in the annual report relates
to the calendar year from 1 January to 31 December. The most recent annual report, for 2020, was
published on 26 April 2021. The report is primarily intended for shareholders and the financial public,
as well as users, employees and other stakeholders. Reporting relates primarily to the Telekom
Slovenije Group and Telekom Slovenije. For content where standard reporting guidelines are not yet in
place for the entire Group, we explain in each specific case that the content applies only to the parent
company or a specific Group company.
There were no significant changes to data from previous years or to reporting limitations. In the event
of changes in a methodology used to disclose data, those changes and the associated reasons are
clarified in the accompanying comments.
When defining the scope and content of the annual report, we have been performing materiality and
stakeholder analyses for a number of years. We again verified the scope, content and topics of the
annual report for 2021 using a questionnaire found on the website www.telekom.si/en. That
questionnaire was completed by 407 stakeholders from Slovenia, broken down as follows: 226
employees from the Telekom Slovenije Group, 111 suppliers, 111 users, 65 shareholders and
investors, 17 representatives of the media, 14 representatives of local communities, seven
representatives of analysts and other financial publics, and three regulatory bodies. We asked each
stakeholder group to assess individual interest on a scale of 1 to 5, where 1 means least important
and 5 means most important. We also asked stakeholders which content from the annual report is
most important to them and which content they would like us to report on to a greater extent. The
results indicate that stakeholders identified the following as the most important elements of the annual
report: the development strategy and plans, technology, the network and IT, financial results, the HR
policy and concern for employees. They would like to see more information regarding the strategy and
projects, and regarding technology and development.
Based on the results, we defined categories of interests most important to individual stakeholders.
Their importance in terms of their impact on the operations of the Telekom Slovenije Group was
assessed by 17 directors of Telekom Slovenije’s organisational units. This year, we also verified which
existing topics are gaining in importance, and which new and emerging topics must be taken into
account in the future. A materiality matrix is presented below.
51
GRI GS 102-46, 102-48, 102-49, 102-50, 102-51, 102-52
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
118
The results of stakeholder analyses are reviewed every year by experts who prepare the content for
the annual report of the Telekom Slovenije Group and Telekom Slovenije. That review was carried out
in 2021 via an online workshop attended by 54 persons responsible for preparing content.
Verification of non-financial reporting
Disclosures of non-financial data and the sustainable development report are submitted for
independent external verification, which includes the verification of reporting according to the GRI
Standards. The statement regarding external verification of the sustainable development report
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
119
Matrix of the materiality of stakeholders’ interests
1
2
3
4
5
6
7
8
9
10
111213
14
15
16
17
18
20
21
22
24
25
26
27
28
29
30
Guaranteed functioning
of the network in
emergency situations
Provision of high-quality
access to
telecommunication services
Cyber security
Superior quality of the
network and the
development of services
that meet users’ needs
and expectations
Best quality-to-price ratio for services
Personal
data
protection
Compliance with regulations and
decisions of the regulatory body
Healthy and safe working
Medium-high
High
Importance for the Telekom Slovenije Group
Importance for stakeholders
Medium-high
High
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
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Key:
Superior user experience
1. Guaranteed functioning of the network in emergency
situations
2. Provision of high-quality access to telecommunication
services
3. Cyber security
4. Superior quality of the network and the development of
services that meet users’ needs and expectations
5. Best quality-to-price ratio for services
6. Personal data protection
7. Prompt fault clearance
8. Simple and prompt communication with Telekom Slovenije
advisers
Responsible and successful operations in the long term
9. Compliance with regulations and decisions of the regulatory
body
10. Business ethics and compliance
11. Operations that enable the payment of stable dividends
12. Effective corporate governance
13. Long-term value of investment
14. Respect for human rights
Concern for talented employees and a stimulating work
environment
15. Healthy and safe working environment
16. Professional and effective management
17. Acquisition of further knowledge
18. Career development opportunities
19. Employee involvement in decision-making
Digitalised and inclusive society
20. Wide access to services and responsible infrastructure expansion (fixed
and mobile network)
21. ICT solutions to tackle today’s healthcare challenges
22. Social responsibility (support for sport, culture, science and
humanitarian causes in the form of sponsorships and donations)
23. Media and ICT literacy
Mitigation of climate change and the efficient consumption of natural
resources
24. Limitation of environmental impacts and a focus on sustainable
development
25. Reducing electromagnetic interference
Comprehensive supply chain management
26. Respect for the rights of workers, and the safety and health of
employees in the supply chain
27. Client responsiveness and approach
28. Responsible energy and waste management in the supply chain
29. Long-term cooperation
30. Clear supplier selection criteria and compliance with business
agreements
EMERGING TOPICS
x Attractive employment opportunities for perspective employees
x Diversity of employees and equal opportunity
x Responsible consumption and protection of natural resources
x Climate change, biodiversity and carbon footprint
x Circular economy and waste management
x Energy efficiency
Topics that are gaining in importance
Realisation of the United Nation’s Sustainable Development Goals
We strive to include the Sustainable Development Goals (SDGs) of the United Nations and key content of the latter’s 2030 Agenda in our operations and the
management of sustainable impacts to the greatest extent possible. Below we present an overview of how and in what areas we contribute to the achievement of
those goals and which goals the Telekom Slovenije Group has set itself in that respect.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
121
Overview of the realisation of SDGs
SDG
Our efforts
Our
objectives
To provide all persons,
particularly the poor and
vulnerable groups, equal access
to economic resources, basic
services, natural resources, new
technologies and financial
services.
x
Broad access to our services:
more information in point 2.9.4.
x
Services for vulnerable user
groups: more information in point
x
Employment and training of
disabled persons: more
information in point 2.9.5.
x
Sponsorship and donation
activities: more information in point
x
To ensure access to 5G technology by 99% of the
Slovenian population by 2026.
x
We are committed to giving back to the social
environment and vulnerable groups to the best of
our ability, and to ensuring the security of the
internet, connections and systems.
x
We follow strategic policy of earmarking 0.3% of
total
sales revenue per year for sponsorships and
donations.
To develop a high-quality,
sustainable and reliable
infrastructure that will support
economic
development and human welfare,
with an emphasis on affordable
and attractive access.
To achieve universal access to
healthcare, high
-quality
healthcare services, and safe,
effective and
affordable medicines.
x
Smart system of integrated
healthcare: more information in
point 2.7.3.
x
To provide eCare and technical ICT telemedicine
services to 10% of the Slovenian population older
than 65 years (around 40,000 citizens) by 2030.
To improve energy efficiency.
x
Efficient energy management
system: more information in point
x To increase the proportion of electricity obtained
from low-carbon sources by 8 percentage point
s
until 2026.
x
To increase electricity generated by own solar
power plants.
To achieve the sustainable
management and efficient use of
natural resources.
x
Efficient energy management
system: more information in point
x
Paperless operations: see point
2.9.7 of this report for more
information.
x
To increase the proportion of electric vehicles in
the car fleet by 7 percentage points until 2026.
x
We will increase the proportion of all customer
invoices issued accounted for by e-
invoices by 15
percentage points until 2026.
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122
SDG
Our efforts
Our
objectives
To promote inclusive and
sustainable economic growth,
full employment and decent
work.
x
Comprehensive ICT solutions:
more information in point 2.7.3.
x
Family-friendly company: more
information in point 2.9.5.
x We are committed to respecting human rights, and
will draw up rules and appoint a human rights
officer by 2023.
x
In the scope of intergenerational cooperation, we
established a standard mentor
ing system with the
aim of retaining key knowledge at the Company.
We ensure the development of mentors and their
mentoring skills.
To promote sustainable
urbanisation, and the sustainable
planning and management of
cities. Implementation of an
integrated policy for inclusion,
the efficient use of resources and
the mitigation of and adaptation
to climate change.
x
Smart cities, smart factories and
industry: more information in point
x
To design and ensure an integrated solution for
managing traffic flows in urban settlements, to
provide subscribers an overview of air and water
quality, with services to support the smart and
efficient management of energy.
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123
2.9.2 Inclusion and participation of stakeholders
52
The key stakeholders of the Telekom Slovenije Group include employees, shareholders and potential investors, users of our services, regulatory and state
authorities, financial analysts and other financial publics, suppliers and other business partners, the media, and the local and wider communities. We strive for an
inclusive and long-term relationship with stakeholders, through which we strengthen trust and cooperation. The strategy for communication with those groups is
defined in Telekom Slovenije’s Corporate Governance Policy.
Based on direct and indirect relations (research, data analyses, statistics, etc.), we identify mutual impacts and the interests of stakeholders.
Communication with stakeholders is open, balanced, proactive and reactive. We focus on the provision of accurate, relevant and clear messages. We also report
on communication with stakeholders in specific sections where they are addressed comprehensively.
Overview of Telekom Slovenije’s stakeholders and the inclusion thereof
Stakeholders
What is most important to
them?
How they are included and frequency of contact
Activities
Shareholders,
analysts and
other
financial
circles
– Effective corporate
governance;
–
long-term value of an
investment;
– operations that facilitate the
payment of stable dividends;
– relevant, current and timely
information regarding
operations and TLSG
shares.
– Investor relations section of the Company’s
website;
– General Meeting of Shareholders (at least once a
year);
–
participation at investment conferences
(occasional);
–
via email ir@telekom.si, skupscina@telekom.si
;
answers to questions;
– publication of business information in the Ljubljana
Stock Exchange’s SEOnet system;
– quarterly contact through the publication of reports
on operations and the issue of the electronic TLSG
newsletter;
–
once a year in conjunction with
the publication of
the annual report.
– We communicated regularly, proactively and
comprehensively with existing and potential
shareholders regarding the operations of the
Telekom Slovenije Group. We communicated
transparently about the impact of the COVID-19
pandemic on operations.
– We organised two General Meeting of Shareholders.
– We paid shareholders gross dividends of EUR 4.50
per share in August 2021.
Users
– Prompt fault clearance;
– security of personal data;
– superior quality networks
and the development of
services that meet their
needs and expectations;
–
the best quality-to-
price ratio
for services;
– Personal contacts (regular): Telekom centres, 24/7
contact centre, communication via
info@telekom.si
and social networks.
–
web services;
–
regular communication regarding the portfolio,
services and innovations in broad-
reaching media
and communication via other channels (invoices,
direct mailing, catalogues, trade fairs, social
– We present users new services, the portfolio and
content that is important to them through numerous
personal and electronic channels.
–
We
currently cover 96.8% of the population with the
LTE/4G signal, 84.0% of the population with the
LTE/4G+ signal and 38
.8% of the population with
the 5G signal. A total of 241 small cells were
included for internal coverage needs.
52
GRI GS 102-40, 102-42, 102-43, 102-44
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
124
Stakeholders
What is most important to
them?
How they are included and frequency of contact
Activities
– simple and prompt
communication with the
Group.
networks, promotions at events, special events,
etc.);
– possibility of selecting a return call option to avoid
extended waits for responses to calls to the
contact centre;
– twice a year through migration analyses according
to the mystery shopping principle;
–
through annual user satisfaction research;
–
regular contact through page view statistics;
–
regular measurement of the NPS (
Net Promoter
Score) at touchpoints.
– We improved the satisfaction of the users of fixed
and mobile services by 2 percentage points (CSI).
–
In 2021, we received 482,892 calls and 146,910
emails from users, and made 10,984 video
identification calls. More than 30,000 users have
contacted the digital adviser Maks.
Employees
– Healthy and safe working
environment;
– professional and effective
management;
–
acquisition of additional
knowledge and
competences;
–
inclusion in decision-
making;
–
education and career
development opportunities;
– information regarding the
Company’s operations and
strategic plans, and on
current
developments at the
Company and in its
activities.
– Regular briefing of employees on events and
current activities at the Company and within the
Group via established channels (intranet, electronic
screens, bulletin boards, email, the system of
meetings, etc.);
– promotion of innovation in the scope of the Brihta
programme;
–
cooperation with the Works Council and trade
unions (regular dialogue);
– activities relating to employee health, in the scope
of the Modro jabolko
(Wise Apple) portal and the
Živijo, stres!
(Hello, Stress!) projects, and inclusion
via the TSsport sports club;
– measurement of organisational vitality and culture
(every other year) and appraisal-development
interviews with employees (twice a year).
– A total of 90.9% of Group employees were included
in education and training in 2021.
–
During the 2020/2021 scholastic year, Telekom
Slovenije supported five secondary school and
university students by providing them company
scholarships, bringing the total to 24 scholarship
holders.
–
Persons with a level
VII education account for the
highest proportion of employees at the Telekom
Slovenije Group level (35.3%).
– We maintained regular dialogue with social partners
(notifications, joint consultations, issuing of
consents, etc.).
–
The Works Council met at 12
regular sessions in
2021.
–
We include employees in the design and
development of systems and tools.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
125
Stakeholders
What is most important to
them?
How they are included and frequency of contact
Activities
Suppliers and
other
business
partners
– Clear supplier selection
criteria and compliance with
business agreements;
–
responsiveness and
approach of the orderi
ng
party;
–
long-term cooperation;
–
respect for the rights of
workers, and the safety and
health of employees in the
supply chain;
–
responsible energy and
waste management in the
supply chain.
– Clear communication and
feedback regarding
satisfaction with servic
es
rendered;
– compliance with the Rules on the Procurement of
Goods and Services at Telekom Slovenije, and
other internal acts;
– Code of Conduct for the Suppliers of the Telekom
Slovenije Group;
–
establishment of long-term relationships with
suppliers;
–
cooperation in the fulfilment of contractual
obligations;
–
common marketing approach;
–
common development of services;
– questionnaires for the purpose of risk assessment;
–
meetings and presentations.
–
annual questionnaire;
–
cooperation in the scope of tenders and
procurement procedures.
– The transparent and equal treatment of potential
suppliers is ensured through a standardised
procurement procedure.
– We dedicated a great deal of attention to addressing
challenges as they arose.
–
Based on an assessment of each supplier, we
define a development strategy, possibilities for
additional cooperation, or measures to
mitigate/eliminate risks.
–
We settle liabilities by the agreed payment
deadlines, and even before those deadlines in the
event of surplus liquid funds.
–
Telekom Slovenije cooperates with
3,021 suppliers
from 40 countries. The majority or 97% of suppliers
are from the European Union.
– Total turnover between Telekom Slovenije and its
Slovenian subsidiaries and their business partners
amounted to more than EUR 677 million in 2021,
including VAT.
Regulatory
and
government
bodies
– Compliance with regulations
and decisions of the
regulatory body;
–
provision of high-quality
access to
telecommunication services;
– limitation of environmental
impacts and a focus on
sustainable development.
– Expert responses to decisions of regulatory bodies;
–
participation in the drafting of legislation, with
expert comments (as required);
–
regular contact following inspections in co
nnection
with imposed obligations by the AKOS on
regulated relevant markets.
– We consistently adhered to applicable laws,
regulatory measures, regulations and best practices
in all phases of the business process and
operations.
–
We responded by
preparing comments to published
analyses of relevant markets.
– We submitted comments, independently or together
with professional organisations, in the process of
amending legislation relevant to our operations.
Local and
wider
community
– Wide access to services and
responsible infrastructure
expansion (fixed and mobile
network);
–
respect for human rights;
–
ICT solutions to tackle
today’s healthcare
challenges;
– guaranteed functioning of
– Support for sporting, cultural, education and
humanitarian organisations and projects (regular
activities);
–
selection of projects with an emphasis on social
responsibility and the monitoring of associated
effects;
–
assessment of
environmental impacts as an integral
aspect of all development activities;
– Sponsorships and donations were earmarked for
organisations and projects at the national and
regional levels. The Telekom Slovenije Group
earmarked close to EUR 2 million for those
purposes in 2021.
– Due to the expansion of the LTE/4G network and
establishment of the 5G network, we performed
additional measurements of electromagnetic
radiation and thus ensured that they do not exceed
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
126
Stakeholders
What is most important to
them?
How they are included and frequency of contact
Activities
the network in emergency
situations.
– regular contact with local communities when
upgrading and building networks.
the legally prescribed thresholds. We conducted 323
measurements in Slovenia in 2021.
The results of
measurements of electromagnetic radiation are
accessible by local communities.
Media
– Business ethics and
compliance;
–
media and ICT literacy;
–
social responsibility;
–
continuous and current
information about the
operations of the Telekom
Slovenije Group and the
development of services.
– Proactive and reactive management of media
relations (press conferences, press releases and
responses to journalists’ questions, maintenance of
formal and informal relationships);
–
organisation of occasional events;
–
regular communication about corporate to
pics, new
services and products, and other topics related to the
Company’s operations.
– We responded to around 250 questions from
journalists in 2021 and drafted 43 press releases for
the Slovenian media and three for foreign outlets,
while around 4,400 art
icles about Telekom Slovenije
were published in the media.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
127
2.9.3 Social environment
53
The Telekom Slovenije Group actively identifies opportunities where it can contribute to the
development of the social and economic environment in which it operates through its expertise, and
financial and other resources.
We have supported humanitarian, cultural, environmental, educational and scientific projects and
institutions, as well as Slovenian athletes and sporting organisations for many years as a sponsor or
donator.
Special emphasis is placed on sports, as we provide assistance to individuals and teams, sporting
associations and sporting events. As the leading Slovenian operator, closely tied to the environment in
which we operate, we wish to give back responsibly to the society in which we live. We are thus one of
biggest supporters of Slovenian sport and athletes, while Primož Roglič, Tadej Pogačar and Janja
Garnbret, who later won Olympic medals, appeared in our market communication campaign that
coincided with the Summer Olympic Games.
Requests for sponsorships and donations are reviewed by a committee that makes decisions regularly
throughout the year. That committee takes into account the interests of those requesting help and
Telekom Slovenije Group’s strategic business plan when allocating funds.
The Telekom Slovenije Group earmarked a total of EUR 1.999 million or 0.3% of its operating
revenues for sponsorships and donations in 2021.
Proportion of sponsorships and donations in the Telekom Slovenije Group in 2021
Major sponsorships and donations in 2021
Humanitarian projects
We are regularly included in humanitarian projects, both voluntarily and at the social level. Our
activities in 2021 included the support of the following organisations:
- the Slovenian Red Cross for the renovation of the Martinček Youth Home at that
organisation’s Debeli rtič youth spa and resort;
- the Humanitarček organisation for providing assistance to socially disadvantaged elderly
people;
53
GRI GS 201-1
6%
81%
4%
5%
4%
Education and training
Sport
Culture
Humanitarian activities
Other
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
128
- the Olympic Committee’s Foundation for athletes from socially disadvantaged backgrounds;
- the Zlata mreža institute to provide free transportation for elderly people who live alone;
- the Ljubljana Moste-Polje chapter of the Friends of Youth Association in the Botrstvo child
sponsorship project, and
- the Friends of Youth Association for the TOM telephone intended for children and adolescents
in distress;
- the Association of Counsellors to help those in distress via telephone line;
- the Association of Disabled Persons – Forum of Slovenia;
- the Slovene Federation of Pensioners’ Associations (ZDUS);
- the Elvira Vatovec Strunjan Training Centre; and
- the CIRIUS Kamnik Centre for Training and Rehabilitation.
Education and science
For many years, we have supported numerous educational and scientific projects, conferences and
events, and serve as an important sponsor of projects and organisations, including:
- the Reading Badge project,
- the Varno na kolesu (Safe Cycling) project,
- the Happy School project,
- the Eco-Quiz project for primary schools,
- the Corporate Security Days conference,
- the Technical Culture Association of Slovenia,
- the multimedia educational programme at the Faculty of Electrical Engineering at the
University of Ljubljana, and
- the Post and Telecommunications Museum, which Telekom Slovenije co-founded.
Culture
In the area of culture, we support contextually varied and geographically dispersed events, as well as
cultural events that with our support have become an essential element of cultural expression, both in
Slovenia and internationally. Such events in 2021 included:
- the Ljubljana Festival,
- the Ljubljana International Film Festival – LIFFe,
- the Ljubljana Puppet Theatre,
- the Maribor Puppet Theatre,
- the National Opera and Ballet in Maribor,
- Carnival in Ptuj, and
- Felina Films (sponsorship of the film Gajin svet 2).
Sports
We continuously support numerous major and minor events that are intended primarily for children
and adolescents. Our sponsorship activities in 2021 included support for the following:
- sporting associations: the Slovenian Olympic Committee, the Slovenian Football
Association, the Ski Association of Slovenia, the Ice Hockey Federation of Slovenia, the
Slovenian Volleyball Association, the Slovenian Athletics Association, the Slovenian Kayaking
Association, the Slovenian Handball Association, the Alpine Association of Slovenia, the
Slovenian Cycling Federation, the Slovenian Sailing Federation, the Shooting Union of
Slovenia, the Slovenian Gymnastics Association and the Rowing Association of Slovenia;
- sporting clubs: the Maribor football club, the Cedevita Olimpija basketball club, the Krka and
Domžale basketball clubs, the Celje Pivovarna Laško and Gorenje Velenje handball clubs, the
Mura Football School and others;
- sporting events: the 2021 Ski Flying World Championship in Planica, the 2021 World Cup
women’s ski jumping competition in Ljubno, the Tour of Slovenia, the Franja Marathon, the
Red Bull Goni Pony na Vršič event, the Spartan Race in Slovenia, the I Feel Slovenia Ironman
event in Slovenian Istria, the Triglav The Rock Ljubljana international climbing spectacle, the
3-on-3 national basketball championship and others.
Socially responsible conduct is integrated into all Telekom Slovenije Group companies.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
129
We made donations of EUR 15,000 in the name of medal winners at the 2020 Summer
Olympic Games in Tokyo.
Janja Garnbret, Primož Roglič and Tadej Pogačar, our medal winners at the Summer Olympic
Games in Tokyo, selected three institutions to which we donated EUR 5,000 for a total of EUR
15,00
0. Telekom Slovenije
shares common values with the best athletes. We fight and strive to
be better every day on the one hand, while we are a responsible member of society on the other,
and never forget those who we can help to develop and overcome obstacles through funding or
other resources.
We thus made a donation to the
Palčica pomagalčica in dobrodelni škratki
association to help
two
-
year old Urban who is fighting a genetic disease that has left him unable to walk or talk, and
whose only help lies in a drug being developed in Australia. We made a donation to Pogi Team
for the development of young cyclists, and another donation to the
Primož Roglič Foundation to
help young athletes from socially disadvantaged backgrounds.
2.9.4 Users
54
5.7 million 0.53%
NO. OF ISSUED INVOICES PROPORTION OF COMPLAINTS
Significant activities
We put a great deal of effort in to user lifecycle management. Conditions as the result of the COVID-
19 pandemic demanded an even more in-depth understanding of users and the environment, and the
inclusion of the user lifecycle in business processes through segmentation of users and by addressing
them with personalised and relevant market messages.
In 2021, we celebrated the 10th anniversary of My Telekom as the central point that allows users to
independently manage services and subscriber agreements. It is used by more than 60% of the users
of our services, while more than 100,000 different users visit My Telekom an average of twice a
month. In 2021, we made it possible for the subscribers of mobile services to conclude Worry-Free
travel insurance, while young people can only take advantage of certain benefits from the SUPR
package via My Telekom. Users can also enter into a binding subscriber agreement via My Telekom.
New services in our portfolio are increasingly conditional on the use of My Telekom, through which
users can manage services remotely and thus take advantage of numerous benefits. Satisfaction with
the use of My Telekom applies to business users, for which a broader range of services for integrated,
secure and reliable operations will be available in the future.
10,984 video identification calls
482,892 received calls
146,910 answered emails
30,000 users of the digital adviser Maks
Technical Help Desk
We launched the digital adviser Maks for the Technical Help Desk in 2020. Maks eased the burden
on advisers at support touchpoints and contributed to the faster resolution of users’ technical
challenges. Maks upgraded his technical knowledge and expanded to the Technical Help Desk for
VALÚ services in 2021, and also expanded his knowledge of the NEO platform. He thus helps users
by answering questions about smart homes, NEO TV Lite and WiFi access points.
Transparency in the charging of services
55
We issued 5.7 million invoices for telecommunication services (excluding non-standard invoices and
credit notes), compared with 6.2 million in 2020. The complaint rate relative to the total number of
invoices issued was 0.53%, compared with 0.57% in 2020.
54
GRI GS 103-1, 103-2, 103-3
55
GRI PA10
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
130
Because we are aware of the importance of sustainable operations and concern for the environment,
we implement numerous initiatives and activities to reduce the number of printed invoices and
gradually discontinue paper operations. The proportion of invoices issued in some electronic form rose
from 25% in 2020 to 30% in 2021.
We improved the transparency of invoices in terms of content and form. We thus improved the visibility
of the amount due for payment and due date, as well as the number and date of issue of invoices. We
will continue to make improvements in the future.
Customer satisfaction
56
The results of customer satisfaction measurements provide us important feedback that serves as a
guide in the development and upgrading of services tailored to the needs of users. We monitor the
satisfaction of residential and business users through regular surveys, while we regularly measure
surveyed monthly and transactional NPS (recommendation). NPS is one of the key indicators for
monitoring customer satisfaction, and tells us whether or not users recommend Telekom Slovenije.
Satisfaction of residential users with Telekom Slovenije’s services
Telekom Slovenije maintains a high level of customer satisfaction (Valicon, autumn 2021). The
proportion of satisfied and completely satisfied users remains high and stable. Fewer negative
experiences with Telekom Slovenije also contributes to a stable level of satisfaction.
Amongst the five highest rated elements in the mobile services segment are the best and fastest
network, while the scores of competitive operators are nearly one-half lower (Valicon market
research, Monitoring of brand strength and image in the mobile category; October 2021, n = 728).
In the category of fixed services, the best network is amongst the top three elements, while the
fastest network receives a similar score to fastest internet and is ranked somewhere in the middle,
but is still ranked higher than the competition (Valicon market research, Monitoring of brand strength
and image in the fixed category; October 2021, n = 720).
The satisfaction of users of the Online Shop is measured in the scope of the Certified Shop
measurement. Users rated their satisfaction with Telekom Slovenije’s Online Shop as excellent (9.6).
We improved customer satisfaction with the following elements:
x internet speed, which remains our strong competitive advantage;
x the responsiveness of the call centre; and
x the price-to-quality ratio in the mobile segment.
General satisfaction and advantages of Telekom Slovenije:
x reliability of the operator (mobile and fixed segments);
x functional stability (network, internet, TV and mobile internet); and
x fault clearance (fixed segment).
Satisfaction index for Telekom Slovenije’s users
Source: Valicon, Satisfaction of the users of telecommunication services; autumn 2021, n= 1,003.
56
GRI GS 103-1, 103-2, 103-3, GS 102-43, 102-44
15%
61
62
63
64
65
66
67
68
69
6%
11%
16%
21%
26%
Autumn 2019 Autumn 2020 Autumn 2021
Customer satisfaction index (CSI) - mobile segment
(growth in one year)
CSI CSI % completely satisfied
+2% YOY
9%
60
61
62
63
64
65
66
6%
8%
10%
12%
14%
16%
18%
20%
Autumn 2019 Autumn 2020 Autumn 2021
Customer satisfaction index (CSI) - fixed segment
(growth in one year)
CSI CSI % completely satisfied
+2% YOY
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
131
NEO is a generator of positive experiences. It wins over users primarily as an interface with simplified
voice control and quick start-up (Valicon, Monitoring of product brands – NEO, December 2021,
n = 1,020).
A total of 89% of NEO users are satisfied, while 49% of them are completely and very satisfied. More
than 90% of users are satisfied with the most commonly used user functions in TV services: content
search functions (92% of satisfied users), voice-controlled searching and continue viewing option
(91% of satisfied users), and all-in-one functionality and WiFi access point (90% of satisfied users)
(Valicon, Satisfaction of the users of telecommunication services; autumn 2021, n = 1,003).
Payment cards and cash remain the most frequently used forms of payment, while the share of e-
wallet users was up by 3 percentage points (e-wallets are now used by every fourth inhabitant of
Slovenia aged 15 to 75 years).
In the mobile payment services and mobile wallet category, the visibility of the VALÚ brand has
improved significantly in the last year. The VALÚ brand continues to maintain its strength (Valicon,
Monitoring of product brands – VALÚ; December 2021, n = 1,020).
Satisfaction of business users
The overall satisfaction of Telekom Slovenije’ users is high, and continues to improve over time
(Valicon, autumn 2021). Most important to business users are the quality and functioning of services,
reliability, responsiveness, fault clearance speed and availability.
Index of business user satisfaction
Source: Valicon, Satisfaction amongst business users; autumn 2021, n = 470.
Satisfaction with Telekom Slovenije’s points of sale
We measure satisfaction with our points of sales twice a year via Mystery Shopper research. To that
end, we measure the satisfaction of visitors to points of sale, and satisfaction with contact centres and
20%
6%
11%
16%
21%
26%
Autumn 2019 Spring 2020 Spring 2021 Autumn 2021
58
60
62
64
66
68
70
Customer satisfaction index (CSI) - business users
(growth in one year)
CSI CSI % completely satisfied
+6% YOY
NEO achieves the highest satisfaction scores amongst users of the smart living platform for:
x the quick and easy (voice-controlled) search for content;
x the quick start-up of the interface;
x innovativeness and the best platform for smart living; and
x the best coverage in the area of smart homes, device management and TV gaming.
Users perceive VALÚ as follows:
x easy to use;
x trustworthy;
x backed by a friendly provider; and
x
it’s intended for different purposes and situations.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
132
responsiveness to messages sent via email to info@telekom.si. All measurements achieve high
ratings, which are continuously on the rise.
Source: Valicon, Mystery Shopper research; autumn 2021.
Net Promoter Score (NPS)
Net Promoter Score (NPS) is the most widely used measure for monitoring user experience. It
indicates to what extent users are prepared to recommend services to others. It combines in one
figure the indicator of a user’s willingness to recommend a company/product/service, user satisfaction,
perception of user experience excellence and an expression of the user’s loyalty to a provider.
Telekom Slovenije takes measurements monthly for the users of fixed and mobile services, and at the
most important touchpoints. Telekom Slovenije ranks in the top third compared with the NPS of
telecommunication operators from foreign markets.
Transactional NPS:
Source: Telekom Slovenije, Transactional NPS, 2021.
The satisfaction index for Telekom Slovenije’s users is rising continuously. It has risen by more than
20% in the past two years (December 2021 relative to 2019).
The 2021 financial year was characterised by the COVID-19 pandemic for the second year. Our points
of sale were closed at the beginning of the year. For this reason, the work load of our call centres and
digital touchpoints was high. Satisfaction was above-average during the first quarter of the year, while
users showed their satisfaction with our excellent response to conditions with very high NPS. The
second half was stable, without major fluctuations in the mood of users.
Spring
2018
Autumn
2018
Spring
2019
Autumn
2019
Spring
2020
Autumn
2020
Spring
2021
Autumn
2021
Overall assessment by sales channel
Telekom centres Authorised dealers
jan.19
feb.19
mar.19
apr.19
maj.19
jun.19
jul.19
avg.19
sep.19
okt.19
nov.19
dec.19
jan.20
feb.20
mar.20
apr.20
maj.20
jun.20
jul.20
avg.20
sep.20
okt.20
nov.20
dec.20
jan.21
feb.21
mar.21
apr.21
maj.21
jun.21
jul.21
avg.21
sep.21
okt.21
nov.21
dec.21
((t)NPS_total of 21 contact points
Achieved tNPS Linear (achieved tNPS)
Visitors to Telekom Slovenije’s points of sale
express
general satisfaction
with the
following factors (Mystery Shopper
research):
9
the orderliness of surroundings and
the interior of branches;
9
the pleasant atmosphere created by
sales staff at points of sale;
9
the pleasantness and helpfulness of
sales staff;
9 the advice given by sales staff in
response to users’ wishes and
needs.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
133
Customer satisfaction at other companies
TSmedia measures customer satisfaction using the research of online products with the help of web
analytics (e.g. MOSS, which measures visits to Slovenian websites, the number of views, the number
of visitors and bounce rate) and using online questionnaires and forms to collect users’ opinion
regarding all products.
Avtenta measures the satisfaction of business partners once a year using various KPIs, such as CSI,
NPS and CIT (ratio of negative experiences to positive experiences). Avtenta’s customer satisfaction
index (CSI) fell to the level recorded in 2018 to stand at 61, a decrease of 3 points relative to the
previous year. The proportion of users fully satisfied with Avtenta’s services remains high at 17% (as
recorded the previous year), while falling sharply was the proportion of users fully satisfied with
implementation deadlines (from 15% in 2020 to 8% in 2021), partnerships (from 20% to 15%) and the
stability of operations (from 15% to 10%). Affecting the aforementioned results was a reduced
personal presence at the premises of users due to the COVID-19 pandemic, while Avtenta also
implemented several more complex projects in 2021.
GVO regularly measures customer satisfaction after the completion of construction works using a
questionnaire. In accordance with the international ISO 9001 standard, it also analyses the areas of
construction and project design once a year. In the area of construction, GVO received 150
assessments from Telekom Slovenije in 2021, with an average score of 4.68, with 1 being the lowest
score and 5 being the highest score. GVO received 26 assessments in the area of project design, 17
from Telekom Slovenije and nine from external partners. The average assessment from Telekom
Slovenije was 4.76, while external partners gave project design an average assessment of 4.68.
TSinpo carries out unstructured interviews with users once a year. Qualitative assessments of
satisfaction were at the level recorded in previous years.
IPKO regularly monitors the user experience via market research, social networks and internal
quantitative studies. Measurements of customer satisfaction and NPS are carried out for fixed and
mobile services. The findings of primary research (BrandTrack Study) indicate that there has always
been an upward trend in NPS amongst users, while NPS for both mobile and fixed services was
higher than those of competitive operators on the market. IPKO also measures customer satisfaction
and NPS regularly by surveying users who visit points of sale, using surveys via the call centre and
through surveyors in the field. The overall satisfaction score in the mobile segment was 8.3 in 2021
(on a scale of 1 to 10) and 7.6 in the fixed segment. Both scores were at the level recorded in 2019.
No measurements were performed in 2020.
Soline does not measure satisfaction.
Concern for the security of children and adolescents
57
As a responsible operator, Telekom Slovenije dedicates special attention to the security of users in the
use of communication services.
Children are spending an increasing amount of time online, while the scope of distance learning has
risen recently. Children are able to access a great deal of online content using smart mobile phones
and mobile devices. We offer the Varen splet (Safe Web) solution to protect children while they are
online and thus facilitate the safe use of the internet. In addition to protecting devices, the
aforementioned solution also allows parents to limit access to websites they deem inappropriate.
The service can also be managed via My Telekom using pre-set content categories that ensure a child
cannot access inappropriate content immediately after it is activated. The Safe Web solution can be
connected to all mobile devices without additional installation, meaning the user is protected in both
the domestic mobile network and abroad.
The NEO Smartbox facilitates the creation of various profiles, through which it is possible to switch
on parental control and thus determine which TV content requires the entry of a PIN. In the scope of
the NEO platform, we continue to carefully select a range of cartoons and other content for our
youngest users, which are available in the Children’s Park. We thus provide children (and parents) a
carefree area in which they can only view content that is appropriate depending on their age. Da Vinci
Kids content is also available to children through the NEO platform. The aforementioned content
57
GRI G4-DMA, G4-M4
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
134
brings children closer to science, math, technology, history, culture, nature and sports in Slovene in a
humorous and interesting way.
We provide advice to users regarding the safe use of modern communication devices and services at
our points of sale and on the website in the tab Recommendations for the safe use of mobile
devices and services. Accessible on the website is the Moja prva pogodba (My First Contract)
project, through which parents can make a plan and set rules for using a mobile phone as their child
takes their first steps into the world of telecommunications. We gave the parlour game Vprašaj me,
vprašaj se (Ask Me, Ask Yourself) to children and their parents to mark various occasions. We
developed the aforementioned game in conjunction with the Logout organisation. The game is
designed in such a way that carefully selected questions stimulate conversation through which
parents, guardians, teachers, grandmothers and grandfathers encourage children in a fun way to use
the internet and mobile devices responsibly. We have published on the intranet and website
educational videos produced by the Logout organisation, through which we warn young people
about the dangers and pressures they could face, particularly during a period of distance learning.
Services for vulnerable user groups
58
We continuously adapt the portfolio to the needs of vulnerable user groups. Available to retirees is the
Ugodni package, which includes fixed internet, advanced television and fixed telephony services at an
affordable price. If they link that package to the Naj A package, they also receive unlimited
communication and sufficient mobile internet quantities for an affordable monthly subscription fee.
We provide users with special needs the appropriate services, terminal equipment and a list of
public telephones and terminals accessible by wheelchair. We give priority to them in connection to
the public communications network and fault clearance, and provide access to the universal directory
service (the blind and visually impaired and the deaf and hearing impaired) and emergency services
for the deaf and hearing impaired. With a valid disability status certificate, disabled persons are
afforded a discount of EUR 2 on their monthly subscription fee for fixed packages. The Gluhi A mobile
package is available for the deaf and hearing impaired for worry-free communication.
We offer volunteer protection and rescue organisations mobile service packages with no subscription
fee. The members of fire fighter and police associations and trade unions and their immediate family
members are entitled to a discount on the monthly subscription fee for mobile packages.
The eCare service for safer living at home is available to the elderly and their family
members in the scope of the smart system of integrated healthcare (see section 2.7.3
for more about the service). The aforementioned socially responsible service ensures a
continuous (24/7) link to an assistance centre. A call may be made by a user or
triggered by a fall or a sudden change in movement detected by sensor equipment
installed in a user’s home, and the assistance centre informed accordingly. The service
is co-financed by a number of Slovenian municipalities in the scope of the Safe and Connected at
Home project (https://www.telekom.si/Documents/Moznost-subvencije-E-oskrba-seznam-obcin.pdf).
58
PA2
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135
Broad access to Group services
59
We ensure access to the most advanced ICT services and content in urban and rural areas, and thus
contribute to the bridging of the digital divide in society. The mobile telephony signal is accessible by
99.74% of the Slovenian population, while a large portion of territory is covered by broadband internet
access and fixed telephony.
Fixed services are provided to users via the mobile network in areas
where setting up a fixed connection is not possible. We are
constructing at an accelerated pace the most advanced fibre optic
network, to which we already facilitate connections by more than
411,000 Slovenian households.
60
Coverage of the population with individual radio network technologies in Slovenia on 31
December 2021:
2G/GSM
3G/UMTS
4G/LTE
4G+/LTE-A
5G
99.74%
93.07%
96.8%
84.04%
38.8%
IPKO in Kosovo also facilitates broad access to ICT services. A project to upgrade hardware and
software at five 2G/4G locations was implemented in 2021 and will facilitate the upgrade to 5G
technology. The Ministry of Economy in Kosovo is co-financing 80% of the project. IPKO continuously
upgrades locations in city centres and moves existing equipment to rural areas and areas with a low
population density.
Coverage of the population with individual radio network technologies in Kosovo on 31
December 2021:
2G
3G
4G
99.74%
93.07%
96.8%
59
GRI PA1, PA2, SDG 9.1
60
GRI PA4, SDG 1.4
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
136
2.9.5 Employees
The Telekom Slovenije Group strives to provide a stimulating and pleasant work environment, open to
innovation and cooperation. To that end, we provide for continuous employee training and education
in various areas, and introduce innovative approaches for empowering employees. We are active in
the areas of health and the prevention of burnout, and upgrade employee remuneration and
motivation systems. We dedicate special attention to young families, facilitate flexible working hours to
simplify the balancing of work and personal obligations, and organise numerous activities to
strengthen the employer brand and our organisational culture in the direction of mutual cooperation.
61
We promote fair and ethical treatment, and operations in line with valid legislation. The Code of Ethics
of the Telekom Slovenije Group lays down the guiding principles and responsibilities in mutual
relationships and in relationships with users, shareholders and other stakeholders (for more about the
Code, see section 2.5.1).
To that end, we reject all forms of bullying, harassment or discrimination on the basis of gender, race,
skin colour, age, state of health, religious, political or other conviction, national and social origin,
financial status, sexual orientation or other personal circumstances. Individual Group companies have
appropriate mechanisms in place for identifying potential cases of discrimination and for taking action
in such cases.
Similar to previous years, Telekom Slovenije Group companies did not receive any complaints due to
discrimination in 2021.
62
Structure of employees
63
The Telekom Slovenije Group had 3,284 employees on the last day of the year, with Slovenian
companies accounting for 2,795 of that number, a decrease of 3.2% relative to 2020. The number of
employees was down primarily due to the termination of employment for business reasons and
retirements at Telekom Slovenije, GVO and IPKO. IPKO has an additional 106 workers who are not
full-time employees.
61
GRI GS 103-1, 103-2, 103-3
62
GRI GS 406-1
63
GRI GS 401-1, GS 102-7
Telekom
Slovenije
Group
150
new hires
218
departures
65.4% men
34.6%
women
98.1%
permanent
6.13%
turnover
98.1% full
time
3,284
employees
98.5%
collective
agreement
97 disabled
workers
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
137
At 6.1%, employee turnover within the Telekom Slovenije Group was up by 0.3 percentage points
relative to 2020.
Structure of employees at Telekom Slovenije Group companies
64
Other Telekom Slovenije Group companies that are not presented in the above graph and companies
of the subsidiary GVO do not have employees.
Number of new hires and departures in 2021 by age group
65
Telekom Slovenije
Group
Telekom Slovenije
Other companies
in Slovenia
Kosovo –
IPKO
Age group
New
hires
Depar-
tures
New
hires
Depar-
tures
New
hires
Depar-
tures
New
hires
Depar-
tures
18–30
86
27
37
3
20
14
29
10
31–40
32
54
14
15
11
18
7
21
41–50
24
48
13
33
11
11
0
4
51–60
6
72
3
49
3
23
0
0
61–65
2
17
2
15
0
2
0
0
Total
150
218
69
115
45
68
36
35
The average age of employees at Telekom Slovenije is 45.9 years. The average employee age at
IPKO is 37 years, followed by GVO with an average age of 40.3 years. At 52.1 years, TSinpo has the
highest average employee age.
A total of 98.5% of Telekom Slovenije Group employees have an employment contract based on a
collective agreement, which was close to the same proportion in 2020 (98.3%). The remaining 1.5% of
employees have contracts outside the collective bargaining system. These are primarily employees in
management positions.
66
64
GRI GS 102-8
65
GRI GS 401-1
66
GRI GS 102-41
2182
444
55
40
95
43
528
3429
2165
462
58
46
89
44
528
3392
2119
445
54
46
86
45
489
3284
Telekom
Slovenije
GVO TSmedia Avtenta Soline TSinpo IPKO Telekom
Slovenije
Group
31.12.2019 31.12.2020 31.12.2021
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
138
Employees by type of employment and gender
67
A total of 92.3% of Telekom Slovenije Group employees are on
permanent contracts (men account for 68% of those employees),
while that proportion is 98.1% at Telekom Slovenije (men account
for 65% of those employees). A total of 92.2% of employees at
Slovenian Group companies are on permanent contracts (men
account for 81% of those employees), while that proportion is
67.3% at IPKO (men account for 58% of those employees).
The main reason Slovenian companies employ workers for a fixed
period of time is to cover temporary increases in the work load.
There are more employees on fixed contracts in Kosovo, which is
an indication of local legislation and the company’s employment
policy. Full-time employees account for the largest proportion
(98.1%) of employees at the Group level, while part-time workers
account for 1.9%.
68
Men accounted for 67.4% of all Telekom Slovenije Group
employees in 2021, while women accounted for 32.6%. Men
are prevalent at companies in Slovenia, while the gender ratio
in favour of men is slightly lower at IPKO (56.6%).
69
This ratio
differs from company to company depending on their activity.
Educational structure of employees
At 35.3%, persons with a level VII education account for the highest proportion of employees at the
Telekom Slovenije Group level, followed by persons with a level V education (29.5%) and those with a
level VI education (21.4%). The Group has 165 employees with a master’s degree or doctorate (5% of
employees).
Employment and training of disabled persons
70
The Telekom Slovenije Group strives to facilitate the continuation of the regular employment of
persons with work limitations due to disability. The Group has 97 employees of various disability levels
(2.9% of all employees). Of those persons, 48.5% are full-time workers. In that respect, Telekom
Slovenije and GVO regularly exceed the legally prescribed quota of disabled employees. The quota
for the information and communications sector is 2%, while the quota for the construction sector is 3%.
These companies were therefore entitled to compensation in the amount of 20% of the minimum
monthly wage for each disabled employee over the prescribed quota. Companies abroad do not have
such a compensation system in place.
Functioning within the Telekom Slovenije Group is TSinpo, a service and disabled
workers’ company that facilitates the employment and training of disabled persons,
and the adaptation of jobs to their needs. The company employs disabled persons
from within the Group and from the labour market. The company, which has 45
employees, addressed the temporary increase in the workload in 2021 by employing
disabled persons from the labour market for a fixed period of time. In cooperation with
external authorised organisations and with the help of its own mentoring team, TSinpo trains
67
GRI GS 102-8
68
GRI GS 102-8
69
GRI GS 405-1
70
GRI GS 405-1, SDG 1
92%
8%
Permanent employment
Temporary employment
67%
33%
Men Women
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
139
employees with work limitations for adapted work. In this way, it increases the employment of disabled
persons in the wider social community and opens opportunities to advance their careers.
Training and HR development
71
We dedicate a great deal of attention to strengthening employee competences and the acquisition of
new knowledge, which we share in our everyday work, as only in this way can we develop the most
advanced services and new business opportunities. Through continuous planned education and
training, and the management and transfer of knowledge, we ensure the growth and development of
the Company and its employees. The training and education programme is updated every year with
new and current content.
Employee education and training at Telekom Slovenije are defined by annual plans in accordance with
the Education and Training Rules. Employee development and training plans are drafted every year in
the context of annual development interviews, and are based on the Education and Training
Programme. In the planning process, we define the purpose and objectives of education and training,
which derive from the organisation’s overall objectives. Objectives are clear and measurable, which is
important for monitoring the effectiveness of education and training.
We also assess the effects of education and training by measuring the satisfaction of participants. We
receive an assessment of the implementation of education or training and feedback regarding its
usefulness through an electronic questionnaire. We use internal coaching, workplace mentoring and
focus groups to measure acquired knowledge and skills.
We continued with the implementation of projects and planned education and training in 2021. A
number of locally organised and international training events were cancelled or shifted to the virtual
environment. We continued with best practices from the previous year when organising employee
education and training, and organised a number of workshops that could not be held live virtually in
the form of webinars. Employees expressed a great deal of interest in technical content and soft skills,
stress management workshops, workplace endurance, safety and health in work from home, etc.
Practice has indicated that online forms of training are appropriate for shorter courses, while live
workshops are preferred for longer training, more interactive training and teamwork.
Key figures regarding employee training
72
Telekom Slovenije Group
Telekom Slovenije
2021
2020
2019
Index
21/20
2021
2020
2019
Index
21/20
Number of participants in
training*
2,985
3,085
3,150
97
2,163
2,170
2,205
100
Number of training hours
99,660
63,069
91,368
158
67,884
54,635
75,131
124
Proportion of employees
included in training*
90.9%
90.9%
92%
100
100%
100%
100%
100
Number of training hours per
employee
30.3
18,6
26.6
163
32,0
25.2
34.4
127
* The proportion of employees included in education and training also includes persons who attended training in 2021 but were
no longer employed by the Telekom Slovenije Group as at 31 December.
With the adaptation to current conditions and the introduction of new forms of education and training,
the number of education and training hours was up by 58% and 24% at the Telekom Slovenije Group
and Telekom Slovenije, respectively, in 2021 relative to 2020. At Telekom Slovenije, 57% of education
and training was organised remotely, 31% took the form of traditional workshops and 12% was in the
form of e-courses in the scope of the internal Znam! learning portal. Internal lecturers conducted 42%
of education and training hours or 66% of all courses.
Men accounted for 65% and women for 35% of Telekom Slovenije employees included in education
and training, which corresponds to the ratio of employees by gender.
71
GRI GS 103-1, 103-2, 103-3
72
GRI GS 404-1
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
140
Of the total of 99,660 education and training hours, 62.8% or 62,588 hours were organised for
technicians and sales staff.
Number of education and training hours by employee category
73
Employment category
Telekom Slovenije Group
Telekom Slovenije
2021
2020
2019
Index
21/20
2021
2020
2019
Index
21/20
Technology and sales
62,588
42,096
58,071
149
45,484
36,064
47,873
126
Administration
9,914
6,843
11,668
145
8,831
6,396
10,810
138
Team leaders
8,376
6,922
10,771
121
7,333
6,321
9,606
138
Middle management
9,201
4,545
8,469
202
4,416
3,817
5,836
116
Others
9,582
2,664
2,390
360
1,820
2,037
1,006
116
Total
99,660
63,069
91,368
158
67,884
54,635
75,131
124
Structure of training by area
The majority or 28% of education and training within the Telekom Slovenije Group was in the area of
products and services, followed by content from the area of occupational health and safety. In the
scope of the Živijo, stres! (Hello, Stress!) project, Telekom Slovenije educated employees and raised
their awareness about stress management and the prevention of burnout. Because we performed
work remotely for part of the year where the nature of work so allowed, we informed employees about
occupational safety and health at home, a healthy lifestyle, etc. We also dedicated a great deal of
attention to education and training in the areas of information security and personal data protection,
and the professional training of managers.
Structure of training by area within the Telekom Slovenije Group in 2021
We published 271 e-courses on the Znam! e-training portal, meaning 30% of all training at Telekom
Slovenije. The portal, with the latest knowledge, is accessible by all employees of Telekom Slovenije,
TSmedia, Avtenta and TSinpo, and by our authorised agents.
73
GRI GS 404-1
Product knowledge: 28%
Occupational health and safety: 24%
Sales: 12%
Other knowledge/skills: 9%
Information and communication technology: 8%
Business communication and business skills: 7%
IT and computer science: 4%
Management: 4%
Legislation: 2%
Economy: 1%
Foreign languages: 1%
Energy and machinery: 0%
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
141
S.M.A.R.T. – an advanced development-training programme
74
S – self-responsible and simple
M – motivated and wise
A – engaged and authentic
R – serious and committed
T – team player and precise
Through the S.M.A.R.T. training and development programme, we ensure the excellence of the user
experience at all major touchpoints with the users of services. Through that programme, we are
building four key elements in contact with users: a uniform approach, the raising of values, the
development of competences and team work.
We enhanced activities at existing touchpoints in 2021: sales channels (e.g. call centres, Telekom
centres and field teams), customer technical support and field technicians. Advisors, technicians and
sales staff participated in numerous training events and workshops to improve the desired behaviours.
Through a consistent and systematic approach, we empower employees to achieve a superior user
experience.
Investments in employee knowledge
Activities that we carry out for employees include the financing of on-the-job studies and paid leave to
prepare for study requirements. At the end of 2021, a total of 42 employees had contracts with the
Telekom Slovenije Group to obtain a higher level of education, 38 employees at Telekom Slovenije,
three employees at GVO and one employee at Avtenta.
Knowledge Transfer Competence Centre
75
The aim of the Knowledge Transfer Competence Centre is to promote the internal transfer of
knowledge. That centre has four pillars. In the scope of each, we develop tailored development and
training programmes that help knowledge ambassadors develop the necessary skills, themselves,
mutual links and the exchange of knowledge. During the year, the competence centre trained 190
knowledge ambassadors in the areas of presentation skills, the preparation of e-courses, and
mentoring and coaching skills.
Mentorship
76
Systematic development and the preservation and upgrading of key knowledge is ensured through a
single mentoring system. To that end, we keep records of technical and key knowledge and the
persons who possess it. The latter transfer that knowledge to employees in the mentoring process –
successors, new employees, employees who change work areas or who return to work after a
prolonged absence, and high school and college students completing their internship, working via
student services or on scholarship. We trained 29 mentors in 2021, while 50 employees were included
in the mentoring process.
Key and perspective employees
77
Included in Telekom Slovenije’s system of key and perspective employees are individuals who
contribute an above-average share to the achievement of the Company’s objectives, who have highly
developed competences or who demonstrate potential and the motivation for further development.
We break them down into the following categories:
x key personnel – creators who with their creativity and commitment achieve better results, and
who have high development potential to take on more demanding work and to advance to higher
professional and management positions;
74
GRI GS 404-2
75
GRI GS 404-2
76
GRI GS 404-2
77
GRI GS 404-2
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
142
x key personnel – experts are the bearers of knowledge that is crucial and specific to the
Company, and that has been gained through rich experiences and is difficult to find on the labour
market; and
x perspective employees are young employees who are still developing as managers or
professionals.
This involves a continuous process in which we identify key and perspective employees. Through
planned training, we develop their potentials, prepare successors, give them priority in the recruitment
process for more demanding positions, and strive to keep them employed at the Company.
We carried out a new cycle of identifying key and perspective personnel in 2021 for the next two
years, and carried out the following activities:
• directors held calibration workshops to harmonise lists of proposed candidates;
• we conducted structured development interviews with candidates;
• an additional assessment was carried out in the development-assessment centre for
individuals who demonstrate management potential;
• following expert verification, 150 key and 65 perspective employees were confirmed,
representing close to 10% of all employees; and
• we drew up individual development plans to obtain the necessary expertise and desired
competences.
Cycle of identifying key and perspective employees
Recruiting new employees, professional training of secondary school and university students,
and the awarding of scholarships
Our aim is to recruit the best secondary school and university students, primarily in strategically
important areas, such as multimedia, cloud services, user interfaces, etc. Telekom Slovenije therefore
facilitates the practical training of secondary school students and the practical education of university
students from technical professions. The best candidates who could be potential employees are
identified and entered into a database of employment candidates.
Telekom Slovenije provided practical training opportunities to 46 secondary school and university
students in 2021. For the fourth year in a row, Telekom Slovenije has also awarded company
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
143
scholarships. We awarded an additional five company scholarships for the 2021/2022 academic year.
We employed four scholarship holders in 2021, bringing the total to 24 active scholarship holders.
Management of older employees
78
Telekom Slovenije implements measures to strengthen the competences of older employees and to
promote intergenerational cooperation. Those measures are linked to values and strategic pillars of
the Company. The measures are an important element of the HR management strategy for the period
2021 to 2025, and represent our response to current and future demographic challenges, as the
average age of Telekom Slovenije employees is 45.9 years.
To that end, we also continuously carry out activities that cover several areas, as follows: the
protection of health, ergonomics and the workplace, working hours and the nature of work, career and
personal development, training to improve competences and intergenerational cooperation, and
awareness. In addition to mentoring and the transfer of knowledge, we also dedicated a great deal of
attention in 2021 to awareness about the importance of ensuring our own health, formulating a healthy
lifestyle, intergenerational cooperation and the acceptance of diversity.
Through internal communication and the organisation of webinars for employees, we shed light on
certain aspects of ageing as a natural process. We organised workshops for managers on the
importance of accepting diversity and intergenerational cooperation.
All retiring Telekom Slovenije Group employees are entitled to severance pay in accordance with valid
legislation and the provisions of the collective agreement, where it applies. IPKO pays its employees’
compulsory contributions for pension insurance in accordance with local laws.
79
Research regarding the lifestyle of employees
We carried out research amongst employees in 2021 regarding lifestyle to determine how they
perceive the activities that we implement in connection with concern for health in the workplace, and
how aware they are of the importance of caring for their own mental and physical health. A total of
1,617 employees took part in the research, translating to a participation rate of 74.9%.
The results were encouraging, as employees gave a high score to work at the Company during the
pandemic and remote work. Awareness is high amongst employees regarding the importance of
caring for their own health. They are also aware of the Company’s numerous activities aimed at
ensuring health, while they also pointed out certain burdens of the work environment, particularly with
regard to workload, burnout and stress.
Stress management and the prevention of employee burnout
80
Activities relating to stress management and the prevention of employee burnout are carried out in the
scope of the Živijo, stres! (Hello, Stress!) project, through the organisation of webinars with various
experts from the fields of psychology, psychiatry, neurology, kinesiology, occupational medicine,
nutrition, etc. We also continued to raise employee awareness in the scope of periodic educational
workshops and through the promotion of active work breaks, and exercise and sporting activities.
Employees may talk with a psychologist via the special Modri telefon (Wise Telephone). Useful
information and advice regarding a healthy lifestyle are also available to all employees on a special
intranet portal.
Motivation of employees
Where the nature of their work allowed, we facilitated remote work by employees again in 2021. We
therefore dedicated special attention to activities to stay #connected. Through continuous and
transparent communication, we created a workplace in which employees are satisfied, motivated and
committed, even in extraordinary circumstances.
The Telekom Slovenije Group has in place a precisely structured bonus system in the form of
monetary and non-monetary bonuses that are awarded in accordance with the collective agreement
and other internal acts. The most frequent form of employee remuneration remains material
remuneration.
78
GRI GS 404-2
79
GRI GS 201-3
80
GRI GS 403-6
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
144
Collective remuneration is based on pre-defined and expected results. A year-end bonus (13th salary)
is paid based on business results, while a Christmas bonus is paid in the amount of 70% of the
average wage in the Republic of Slovenia. Certain Group companies pay a lower Christmas bonus
depending on operating results, while employees also receive stimulation for performance, and non-
monetary and monetary bonuses for outstanding achievements.
Individual remuneration depends on an assessment of the achievement of personal objectives
(stimulation), and may be paid to employees twice a year. Non-monetary forms of employee
remuneration also derive from our activities (VALÚ credit notes, gift certificates for Soline, getaways at
Hotel Tisa, etc.). We also offer employees other benefits, such as additional medical examinations,
payments to the second pension pillar, preventive treatments and flexible working hours, etc.
Full-time and temporary employees enjoy the same benefits, except the payment of voluntary pension
insurance premiums, which new employees are entitled to after one year of employment. The
premium for employees who have been employed by their respective company for at least one year is
paid by Telekom Slovenije (96% of employees), GVO (92% of employees), TSmedia (96% of
employees), Avtenta (91% of employees) and TSinpo (95% of employees).
81
A Telekom Slovenije Group employee’s base salary is not based on gender, location or activity, but is
defined in their employment contract taking into account their position. The wage of employees at
companies in Slovenia is at least as high as the legally prescribed minimum wage in Slovenia, while
the lowest wage at the majority of companies is higher than the minimum wage. Employees at IPKO
also have a higher wage than the minimum prescribed wage in Kosovo (index of 252).
82
Cooperation with research institutions
The Telekom Slovenije Group has well-established cooperation with universities, faculties and
secondary schools, where it participates in regular lectures (as guest lecturers) and themed events
with faculties. We regularly organise meetings for students in Telekom Slovenije’s premises, where we
present work content, best practices and the technologies with which we work. We also work with
secondary school and university students via compulsory internships and scholarships, and provide
them assistance in the form of mentorship in the drafting of their theses.
Through a partnership, Telekom Slovenije supports the multimedia study programme at the University
of Ljubljana’s Faculty of Electrical Engineering and Faculty of Computer and Information Science. In
the area of employee education and e-training, we work with the Telecommunications Laboratory at
the University of Ljubljana’s Faculty of Electrical Engineering (LTFE), and enjoy good cooperation with
the School of Economics and Business and the Faculty of Computer and Information Science at the
same university, and with the School Centre for Postal Services, Economics and Telecommunications.
We work with the University Medical Centre in Ljubljana and the Ljubljana Community Health Centre in
the continued development of telemedicine services. TSmedia cooperates with the Mediana and
IPSOS market research agencies. IPKO facilitates internships for students from RIT Kosovo (formerly
American University), the University of Pristina and the University of Dardania.
Organisational vitality
We measure organisational vitality, which includes the organisational climate, and employee
satisfaction and commitment, every two years. Measurements were carried out at three Group
companies in 2021: Telekom Slovenije, Avtenta and IPKO. In addition to typical questions, research
also included questions in connection with commitment and proactivity, burnout, criticality, team work
and so-called ambassadorship.
At Telekom Slovenije, the results of the research, in which more than 88% of employees participated,
indicated the following:
- employee commitment is high (84.9% of employees are highly or moderately committed);
- employees are aware of the strategic policies and objectives of their organisational units;
- employees demonstrate a high level of personal satisfaction;
- that relationships with direct supervisors, leadership and the feedback employees receive are
good;
81
GRI GS 401-2
82
GRI GS 202-1, 405-2
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
145
- there is a system of incentive-based remuneration in place;
- we have a good education and training system in place, and there are opportunities for
personal development; and
- employees are proud to work at Telekom Slovenije.
Certain challenges were highlighted and will serve as the basis for the drafting of action plans for the
future.
The ORVI, which includes responsiveness, the work environment, systems, operational management,
personal views and commitment, rose at Telekom Slovenije and IPKO, and was down slightly at
Avtenta. At 3.78, the aforementioned index improved by 0.03 points relative to 2019. At IPKO that
index stood at 3.71, which is 0.02 higher than two years ago. The ORVI was 3.61 at Avtenta and was
down by 0.02 points relative to the previous measurement.
The directors of organisational units and team leaders presented the results of the research to their
employees. They discussed those results and prepared action plans in areas where the results
deviated from the average. Employees were also notified of the research results at individual
companies via the intranet.
Organisational culture
Telekom Slovenije is shifting the organisational culture towards a constructive style of employee
behaviours and attitudes. A constructive style positively promotes superior quality, development,
mutual cooperation and business excellence. Activities are being carried out with an emphasis on
cooperation between organisational units and employees, and on the promotion of innovation and
creativity.
Appraisal-development interviews
83
Telekom Slovenije conducts appraisal interviews twice a year with all employees covered by the
collective agreement and with employees under individual contracts who are not first and second level
directors. Interviews with the latter are conducted once a year. Appraisal-development interviews are
conducted once a year at the majority of subsidiaries. The overall assessment of work performance
comprises an assessment of the achievement of objectives and an assessment of competences. A
training programme for the upcoming year is drawn up for every employee at the beginning of the year
in the scope of appraisal interviews. Annual appraisal-development interviews were conducted with all
employees at the majority of companies in Slovenia, and with 90% of employees at GVO and 96% of
employees at IPKO.
Managing innovation
We use the Brihta digital collection box for the collection of ideas and
innovative proposals of employees. In place is an established procedure and
comprehensive overview of proposals, from submission to potential
implementation or feedback. Employees receive practical awards for useful
ideas. Ideas that become innovations with higher added value may also be
rewarded financially.
In 2021, we used the Brihta 3.0 project to link the Company’s strategy, values
and a range of interdependent activities that bring a change in the way
employees think to make innovation a part of our regular processes. We created the image of ‘Brihta-
nauts’, who became our companions on the road to creativity and innovation. The motto of the Brihta-
nauts is that every idea counts, which is also reflected in thinking of employees and the number of
submitted ideas.
In addition, an in-house team of animators runs TIMO, an attractive inter-team programme that
focuses on innovation, workshops for managers and brainstorming workshops (workshops where
ideas are generated based on the so-called brainwriting method). In 2021, we also organised an all-
day BrihtaLive creativity event, where employees searched for new solutions to simplify the lives of
users.
83
GRI GS 404-3
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
146
To facilitate the development of ideas, we developed the BrihtaKit internal tool for addressing
challenges, and for seeking out and developing (the right) solutions. That tool is based on the so-
called design thinking method.
The employees of Avtenta, TSmedia and GVO also have the opportunity to submit proposals for
improvements, ideas and innovations in individual areas. IPKO holds a competition to collect
proposals, with rewards given for the best.
Cooperation with employee representatives
84
In accordance with the Workers’ Participation in Management Act, we cooperate constructively with
the works councils of Telekom Slovenije, GVO and TSmedia, and maintain constant social dialogue
with trade union representatives (notification, joint consultation, issuing of consent, etc.).
Telekom Slovenije’s Works Council met at twelve regular sessions in 2021. Five sessions were held
live, while seven were organised via MS Teams. The majority of initiatives and questions put forth by
employees and their representatives related to the COVID-19 pandemic, operations, the HR Policy
and activities in connection with care for employees. The members of the Management Board and
director of HR Management and General Affairs reported to the members of the Works Council
accordingly on a regular basis.
There are also three employee representatives on Telekom Slovenije’s Supervisory Board, who
regularly inform employees and their representatives about activities in accordance with valid
legislation.
Responsibility for employees and their activities outside the workplace
We organise leisure-time activities for employees, with special attention given to the children of
employees and to retirees. We organise events with employees, give gifts to employees’ first-graders,
employees celebrating work anniversaries and new-borns, organise holiday day care services for
employees’ children, and support Telekom Slovenije’s pensioners clubs.
Functioning under the auspices of Telekom Slovenije is the TSsport sports club, which facilitates the
participation of employees in recreational activities and national Telekom Slovenije Group
championships in various sports. The club’s members are all employees, who can sign up for regular
notification about activities. The club provides employees affordable offers for different branches of
sports and the purchase of equipment. We organised championships in tennis, running, shooting and
golf in 2021. We organise recreational activities at locations throughout Slovenia. Those activities were
curtailed due to epidemiological measures. We encouraged employees to exercise during working
hours by providing video content and via the #vadidoma platform, which we developed in the scope of
the NEO platform.
Occupational health and safety
85
The year was difficult in the area of occupational safety and health due to the continuation of the
COVID-19 pandemic. The Telekom Slovenije Group implemented measures to prevent the spread of
infections, taking into account the instructions of professional institutions. We informed employees
about preventive activities at home and in the workplace, and established protocols and instructions
on what employees should do in the event of infection. Telekom Slovenije audited its declaration of
safety with risk assessments accordingly.
Where the nature of their work allowed, we facilitated remote work by employees again in 2021 to
reduce the possibility of the spread of infections. We regularly provide employees all necessary
protective equipment: protective masks, hand disinfectant, disinfectant wipes, disinfectant spray to
disinfect work surfaces, protective gloves, etc. If employees become infected or are in contact with
high-risk persons, we continuously provide professional responses to questions and protocols, and
establish the necessary communication with all stakeholders. We organised COVID-19 testing for
employees at professional institutions, and reimbursed employees for the costs of testing for work
purposes and provided HAG tests for self-testing in accordance with government ordinances. We also
organised vaccination against COVID-19 for employees.
84
GRI GS 103-1, 103-2, 103-3, GS 102-43, 102-44, GS 402-1
85
GRI GS 103-1, 103-2, 103-3, IO3
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
147
The management of Occupational health and safety within the Telekom Slovenije Group is in
accordance with legal requirements that are defined for all employees and for each sector separately.
We implemented all key measures relating to occupational health and safety, and fire protection in
2021. We took regular measurements of environmental conditions and lighting in the work
environment for all locations where deemed necessary. The identification of dangers associated with
safe work was carried out via regular occupational safety training, regular on-site inspections and
various project groups.
All training, both theoretical and practical, in the area of occupational health and safety was in line with
the requirements of the law. Training was organised in the form of lectures, and took place primarily
via e-training in 2021. We organised training in the following areas: workplace injuries, fire safety, work
at height and training for those persons responsible for carrying out evacuations. We regularly
provided personal protective equipment and supervised its use. Major locations and Telekom
Slovenije centres are equipped with semi-automatic defibrillators to provide aid in the event of cardiac
arrest.
86
Telekom Slovenije notifies employees about additional preventive
medical examinations, vaccinations against various diseases and
current health content via the Modro jabolko (Wise Apple) portal. We
promote a healthy lifestyle by publishing various articles and
information about physical activity and a healthy diet. Via the portal,
employees are also provided access to supplementary healthcare
services (that are not part of regular occupational medicine
examinations). At the beginning of every year, we publish a schedule
of additional medical examinations that employees may sign up for.
87
The area of occupational health and safety is comprehensively governed at companies in Slovenia by
the Occupational Health and Safety Act (ZVZD-1) and by declarations of safety with risk assessments.
This area is governed at IPKO by local legislation and through a health, safety and quality control
system that includes all employees. That company carried out measurements of microclimatic
conditions, defined potential risks in the workplace, and adopted measures and recommendations in
2021. It also organised training for all employees.
88
Telekom Slovenije employees attending training are encouraged to participate in the development,
implementation and evaluation of occupational health and safety. Responsibility is defined by the law
and authorisations, while decisions are made by managers at various levels in cooperation with
employees. We also encourage employees to report potential dangers whenever they arise. In this
way, we prevent or mitigate potential negative effects on health and safety. GVO has an Occupational
Safety Committee that is appointed by the Works Council. Every workplace injury is analysed and
reported to the competent authorities (form ER-8). IPKO has a Health and Safety Team that comprises
representatives of employees from various organisational units, and employs an expert in the
aforementioned area. Together, those persons monitor the implementation of the health, safety and
quality control programme, and issue recommendations for amendments to that programme. The
members of the above-described team are available to employees at all times in the resolution of
issues. Three IPKO employees are certified in the area of occupational health and safety.
89
Healthcare
90
Telekom Slovenije organises preventive medical examinations for all employees and for employees at
other Slovenian Group companies in accordance with the law. To that end, medical doctors inspect
work areas, working conditions and work processes at the Company as necessary. Based on those
inspections and specific identified health indicators, they propose measures to improve the situation.
Occupational medical services are accessible via preliminary, periodic or control examinations. We
organised vaccinations against tick-borne meningoencephalitis for employees working in forests (or
86
GRI GS 403-5
87
GRI GS 403-6
88
GRI GS 403-1, 403-2, 403-8
89
GRI GS 403-4
90
GRI 403-3
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
148
where so stipulated by the risk assessment). We also organise flu vaccinations for employees in
Slovenia.
91
IPKO organises preventive medical examinations for employees in accordance with labour legislation
in Kosovo, as well as special training for employees who work in the field.
Healthcare and workplace injuries in the Telekom Slovenije Group
92
Occupational health and safety
2021
2020
2019
Index
21/20
Number of injuries
38
34
44
112
Number of working days lost
1,177
1,345
1,536
88
Number of working hours lost
8,935
10,719
11,138
83
Number of medical examinations
1,093
835
998
131
- preliminary examinations
147
114
135
129
- periodic examinations
946
721
863
131
Number of deaths
0
0
0
0
The Telekom Slovenije Group has no employees at high risk to occupational diseases.
Slips as the result of wet, muddy, steep and icy surfaces and stairs accounted for the most injuries
(12). They were followed by cuts with working tools and collisions with objects.
Fire safety
We drafted new fire safety rules and revised evacuation and fire plans for buildings where major
changes were made. Fire safety training is carried out in the scope of occupational safety training. Fire
extinguishers and hydrant networks were inspected and serviced in all buildings, while several
evacuation drills were conducted. We regularly maintained and serviced active fire safety systems at
buildings throughout Slovenia, and began to implement separate fire sectors for the building located at
Cigaletova 15. Telekom Slovenije Group companies did not record any fires in 2021.
The Heart Foundation
The aim of the Heart Foundation is to help the children of employees of
Slovenian Telekom Slovenije Group companies who have lost a parent or
who are seriously ill and require extended treatment. A total of
1,190 employees donated to the foundation monthly at the end of 2021.
Employees can make monthly donations of EUR 2, EUR 4 or EUR 6 to
the Heart Foundation, and can also donate via text messages, in the form
of a one-time donation or periodic contribution. We used monthly
donations to help 34 children in 2021. We also helped four seriously ill
children through one-time donations.
Family-Friendly Company certificate
93
We extended the full Family-Friendly Company certificate, which is
reflection of our awareness of the Company’s social responsibility
and organisational culture. The Family-Friendly Company
certificate is an investment that brings positive results to the
Company and its employees. Through adopted measures, we
ensure the short- and long-term effects of successful HR
management, a friendly work environment and a competitive
advantage in recruitment.
Parental leave
94
The successful balancing of family life and professional life is the foundation of employee satisfaction.
Employees are afforded the opportunity to take parental leave. Employees with the right to parental
leave exercise that right in full. The use of parental leave is one of the indicators that are included in
91
GRI IO3
92
GRI GS 403-9
93
SDG 8
94
GRI GS 401-3
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
149
measures relating to the Family-Friendly Company certificate. Fathers also take child care leave in the
early child development stage in the form of paternity leave. The majority of employees return to their
jobs following the end of parental leave, as adopted measures provide them opportunities that make it
easier to find the right work-life balance.
Telekom Slovenije Group
Telekom Slovenije
2021
2020
2019
2021
2020
2019
Number of employees on parental leave
91
101
132
26
22
45
of which: women
72
82
102
25
22
43
men
19
19
30
1
0
2
Employees who returned to work following parental
leave:
76
84
109
25
22
45
proportion in %
83
83
83
96
100
100
- of which: women
56
65
80
24
22
43
proportion in %
78
79
78
96
100
100
men
19
19
29
1
0
2
proportion in %
100
100
97
100
0
100
Socially responsible employer
We received the Socially Responsible Employer Certificate in 2021. That
certificate covers the following four areas:
x organisational governance (social responsibility, sustainable
development, efficient energy consumption and the environment);
x occupational safety and health (the promotion of the health and safety
of employees and projects in the area of occupational safety and
health);
x intergenerational cooperation (HR strategy, management of older staff,
education and training, etc.); and
x the balancing of work and family life (measures in the scope of the Family-Friendly Company
Certificate, updated with additional/basic measures).
The certificate represents our commitment to strive for further improvements and refine our activities in
these areas in the future. It also represents a strategic tool and thus the opportunity to address
challenges relating to socially responsible behaviour in one place. We include various stakeholders in
our activities. We thus enhance our reputation, build the brand and consolidate our competitive
advantage on the market.
Most respected employer
We were recognised again last year as the most respected employer in the telecommunications sector
in research organised by MojeDelo.com, and ranked amongst the 10 most respected employers in
Slovenia. This is recognition for all Telekom Slovenije employees who are helping create the digital
future of Slovenia. The last year brought many changes for all of us. Those changes were an
opportunity for us to prove once again that we are fast, agile, effective, creative and focused on
supporting the society in which we operate. We demonstrate that we are #connected. In our work
environment, we are afforded the opportunity for career and personal development, and together we
are creating a culture that is based on mutual cooperation. All of this is also reflected outwards.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
150
Communication with employees
The Telekom Slovenije Group communicates proactively with employees throughout the year via
various communication channels. The main tool for communicating with employees at Telekom
Slovenije is the intranet news portal, where all of the latest information regarding events at the
Company is accessible by employees. That portal is accessible by all employees and also facilitates
the secure transfer of internal documents, such as manuals, rules, instructions, forms, etc. We also
communicate with employees via other channels, such as electronic screens and emails, and through
various events, such as virtual meetings with the Management Board and co-workers, workshops with
internal and external experts, work meetings and other special events. Every Telekom Slovenije Group
company has its own channels for communicating with employees.
Since the declaration of the COVID-19 pandemic in 2020, we have dedicated even more attention to
communication with employees, with those activities continuing in 2021. Our main objective is to
provide information to employees regarding the changing conditions as the result of measures to
prevent the spread of infections continuously, clearly and transparently, and thus remain #connected.
The Business Recovery Team communicated regularly with employees in this regard, and monitored
the situation at the national level and at the Company and adopted the appropriate measures
throughout the year. We strengthened trust, reduced uncertainty, improved employees’ sense of
affiliation and built connectivity again in 2021 through the appropriate communication. This was also
seen in research regarding lifestyles that we conducted amongst employees in June. The majority of
employees stated that the Company has adopted the appropriate measures and ensured the health of
employees during the pandemic. The high level of employee engagement is also reflected in research
regarding organisational vitality.
2.9.6 Quality management systems
Through effective quality management, we manage the entire lifecycle of our services, from design
and development, the securing of resources, logistics and maintaining the quality of services to the
conclusion of the lifecycle.
We monitor the lifecycle comprehensively through:
x measurements of key performance indicators;
x measurements of user and stakeholder satisfaction;
x initiatives for improving satisfaction (e.g. CEX – excellence of the customer experience)
95
; and
x the introduction of tools for quality management.
In 2021, Telekom Slovenije added to its range of certified quality management systems an information
security management system for ICT cloud services, according to the requirements of the ISO/IEC
27018 standard. The business continuity management system passed all required tests again in 2021,
when we successfully transitioned to the requirements of the newly issued ISO 22301 standard. We
also passed the first verification of the Socially Responsible Employer Certificate. The Group also
successfully maintained and certified all previously introduced systems.
95
For more details, see section 1.8.4 Strategic Projects.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
151
Review of compliance certificates for management systems based on ISO, IEC, EN and SIST
standards
Company – confirmation of
conformance
Validity
Telekom Slovenije
SIST EN ISO 22301
Valid until: 11 April 2022
Services and processes of Telekom Slovenije
SIST EN ISO/IEC 27001
Valid until: 28 April 2023
Cyber Security Operation Centre, financial services, commercial ICT
services, network and service control, and technical support for business
solutions
SIST EN ISO/IEC 27018
Valid until: 28 April 2023
Public cloud, ICT cloud services
SIST EN ISO 50001
Valid until: 31 January 2023
Energy services of Telekom Slovenije for internal needs
SIST EN 50518
Valid until: 27 October 2022
Telekom Slovenije’s Security and Control Centre
SIST EN ISO 14001
Valid until: 31 January 2023
Environmental management system in real estate management
GVO
SIST EN ISO 9001
Valid until: 31 December
2023
Design, construction and maintenance of telecommunications and
electricity networks.
SIST EN ISO 14001
Valid until: 31 December
2023
Design, construction and maintenance of telecommunications and
electricity networks.
Avtenta
SIST EN ISO 9001
Valid until: 30 June 2022
Development and integration of business solutions, service delivery and
consulting, system integration, project management and sales.
IPKO
SIST EN ISO 9001
Valid until: 24 December
2023
Digital cable TV, internet services, and fixed and mobile telephony.
SIST EN IEC/ISO 27001
Valid until: 24 December
2023
Digital cable TV, internet services, and fixed and mobile telephony.
We successfully passed other assessments to maintain the certificates of manufacturers, such as MS
Partner, Cisco, Oracle and HP (for more details, see section 2.7.3 Sales and marketing activities), and
for other systems that are based on other recommendations (internal rules, Family-Friendly Company
requirements, the ECS-PPT/DARSGo management system, etc.).
We verified the performance and functioning of systems through measurements of objective progress
indicators, and promoted the increased integration of management systems into the everyday
sustainable operations and management of companies. In accordance with the Company’s plans and
the Recommendations and Expectations of Slovenian Sovereign Holding, we carried out a self-
assessment of the excellence of the parent company’s operations according to the global EFQM 2020
method. Through the application of the GRI GS in the annual report, we fulfil the requirements of the
non-financial reporting directive and the Companies Act (ZGD-1).
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152
Quality management systems at Telekom Slovenije – situation as at 31 December 2021
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
153
2.9.7 Environmental impact
96
The key strategic policies of the Telekom Slovenije Group include sustainable operations, which we
understand as the responsible management of the economic-governance, social and environmental
impacts of our operations.
We consistently comply with environmental legislation when purchasing products and services, and
when developing the most advanced ICT services and solutions. We systematically reduce
environmental impacts with the help of certified quality management systems, anddeclarations of
energy efficiency and the Company’s environmental statement.
We are included in professional initiatives aimed at development and the communication of scientific
positions regarding the impacts of our sector on the environment and world we live in. With respect to
concern for the environment, we encourage the participation of all stakeholders: employees, suppliers,
contractors, business partners and local communities. We receive their initiatives and questions, and
respond to them constructively.
The Telekom Slovenije Group operates in the telecommunications sector. The greatest environmental
impact for us is therefore in the area of energy. The subsidiary Soline, which manages the Sečovlje
Salina Nature Park, has a significant impact on wetlands and coastal biodiversity. Its activities and
impacts are therefore reported on in more detail at the end of this section. We measure our progress
using measurable indicators.
Key policies in this regard are:
x regular monitoring of the use of resources, in particular energy consumption and associated costs;
x strategic and operational energy objectives that are in line with our operations and development;
x monitoring and compliance with the requirements of Slovenian and European law; and
x methodical prevention and reduction of the impacts of the Group’s activities on the environment
and the world we live in.
Energy report
97
We improve energy efficiency primarily through the achievement of strategic and operational
objectives that are in line with business needs and the expectations of our stakeholders. We include
employees, suppliers, external contractors and business partners in those objectives. Awareness
amongst employees about the importance of this area is spread through training and communication
at all levels of the Company’s operations.
We encourage our users to take a responsible approach to energy and the environment. Through e-
services, they are able to reduce their carbon footprint. We also take into account energy efficiency
over the entire lifecycle in the procurement process and in the development of services.
We report to regulatory and other government authorities (in Slovenia: MI, ARSO, SURS, FURS and
AKOS) in accordance with the law
.
The total energy costs of the Telekom Slovenije Group amounted to EUR 11.6 million in 2021, an
increase of 2% relative to the previous year, primarily due to rising energy prices. Electricity and
heating costs account for the majority or EUR 8.2 million of that amount.
Telekom Slovenije implemented an energy management system
(EMS) back in 2009, and uses that system to successfully reduce total
energy consumption. Our energy management system is subject to
independent external assessments (according to ISO 50001), and we
fulfil the conditions to perform energy audits with our own experts. With
more than 170 completed energy audits, we are among the leaders in
Slovenia and save around EUR 40 thousand a year. We performed internal energy audits again in
2021 for all buildings for which the validity of the previous audit expired.
96
GRI GS 103-1, 103-2, 103-3, SDG 12.2
97
GRI GS 302-1, 302-4, SDG 7, SASB: TC-TL-130a.1
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
154
The figures below illustrate electricity consumption and costs at Telekom Slovenije by year compared
with changes in gross energy costs.
Costs and consumption of energy sources at Telekom Slovenije
Telekom Slovenije
2021
2020
2019
Index 21/20
Electricity costs (in EUR thousand)
7,462
7,728
7,660
97
Consumption of electricity (in
GWh)
72.6
73.5
73.8
99
Cost of fuel for vehicle fleet (in
EUR thousand)
898
755.4
953.7
119
Cost of fuel for heating (in EUR
thousand)
761
633.5
616.1
120
Sources: SAP; except for electricity consumption – energy management system.
Electricity
Electricity is the prevalent energy source in terms of quantity and costs. Electricity consumption was
reduced by 1.16% in 2021 relative to 2020, while electricity costs were down by 3.45%. Energy
consumption was up primarily at base stations due to the upgrading of capacities to the latest mobile
generations, growth in mobile traffic and the increased use of the devices of other users in our
premises. Other users of our real estate account for a fifth of electricity consumption. Production by
Telekom Slovenije’s own solar power plants accounted for close to a quarter of a percent of total
electricity consumption (around 200 thousand kWh).
Telekom Slovenije’s energy management system facilitates effective control over energy consumption,
and includes 2,400 metering points, 85 locations with heating devices and more than 12 thousand
data entities. We continuously upgrade and supplement the system through the development of the
network.
IPKO in Kosovo also reduced energy consumption through numerous projects and has generated total
energy savings of 534,200 kWh. It has achieved this through the upgrading of algorithms and
improving the monitoring of the functioning of generators, through the sharing of base stations and
generators with Vala (21 base stations) and by producing its own electricity with a solar power plant on
the roof of its warehouse (119 thousand kWh a year).
Achievement of energy objectives
Our overall energy objective is to reduce total electricity consumption as the largest energy source.
That objective is integrated into the personal goals of entire responsible organisational unit, while the
energy management system itself is likewise integrated into regular work processes. We also take
other environmental objectives into account in our operations (e.g. to improve the energy efficiency of
the vehicle fleet, reduce noise and emissions into the atmosphere by modernising technological
devices, etc.).
Objectives in connection with efficient energy consumption, both strategic and annual, were achieved
in 2021. By optimising equipment and premises at functional locations, we succeeded in exceeding
the majority of established objectives for reducing energy consumption in the fixed segment of the
network, while energy costs were slightly lower in 2021 than in 2020. Energy costs incurred for
existing services will be higher in the coming years, despite efforts to reduce consumption. This is
primarily due to higher energy prices, and in part due to the accelerated increase in radio network
capacities. Telekom Slovenije intends to increase the number of own solar power plants and thus the
quantity of energy generated by 2026.
We replaced old air conditioning units in several buildings with technologically more advanced and
more energy efficient units, and upgraded direct and alternating current systems in buildings in the
fixed and mobile network with the aim of ensuring a continuous and back-up power supply.
The transition to new generations of ICT equipment and the discontinued use of older generations
represent an important element of energy savings.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
155
Electromagnetic radiation (EMR)
98
Telekom Slovenije carried out 323 EMR measurements in 2021 (267 in 2020) due to the expansion of
the mobile network and the fifth generation network. A total of 190 measurements were carried out for
5G technology alone. Measurements were carried out by authorised institutions in Slovenia. The level
of radiation at base stations upgraded with LTE/4G and NR5G technology has increased slightly, but
remains environmentally acceptable and within the limits established by Slovenian law, which in some
respects is even stricter than European law. IPKO has not carried out measurements of EMR during
the last two years.
We have responded transparently to users' concerns about the potential harm of 5G technology.
Based on sales results, we believe that the general public opinion is in favour of the 5G network. We
received a professional award from the Public Relations Society of Slovenia in 2021 for our successful
communication campaign to mark the launch of the 5G network, and for our positive, open and
progressive communication to present the opportunities that 5G technology and digitalisation bring to
the economy, users and society as a whole.
In 2021, we received one request from the competent inspector to provide all documentation regarding
electromagnetic radiation for the Strunjan base station. We delivered the requested documentation by
the prescribed deadline. The Inspectorate of the Republic of Slovenia for the Environment and Spatial
Planning had no comments regarding that documentation.
All reports regarding the measurement of EMR are submitted to the Slovenian Environment Agency
(ARSO), where the latest data regarding environmental impacts are stored and accessible by all
citizens.
In cooperation with Forum EMS, the population is informed about radiation and other environmental
impacts through brochures at Telekom Slovenije’s points of sale. In the scope of the e-card EMS
project, Forum EMS developed a mobile application that allows the general public to access data
regarding harmful impacts on the environment due to high-frequency EMR and the effect of exposure
due to the use of mobile phones (http://www.inis.si/index.php?id=348&no_cache=1#.WIHhbVzNQvU).
Vehicle fleet
99
By increasing the number of electric vehicles, we increase the need for charging stations. It is thus
crucial that we establish a network of smart charging stations in Slovenia at private locations, and
make the charging of an increased number of electric vehicles affordable for users. The charging of
electric vehicles is cheapest if they are connected to charging stations for an extended period of time,
while the regulation of production and the consumption of electricity is ensured during charging.
Telekom Slovenije currently has eight charging stations, six of which were set up in Koper and
Ljubljana in 2021. GVO has seven internal and three public charging stations, while there is also a
charging station at the entrance to the Sečovlje Salina Nature Park. We are planning to set up five
new charging stations in 2022, while the network will be upgraded in the future in accordance with
needs.
With its partner ELES, Telekom Slovenije developed the intelligent management of charging stations
with advanced software that ensures the remote, multi-level management of charging power.
Over the long term, that infrastructure will also be able to support the V2G (vehicle-to-grid) concept,
where electric vehicles will function as electricity storage systems, with electricity released into the grid
as required.
The above-described solutions have been developed for an environmentally friendly future, as they
support the introduction of electric vehicles and thus the reduction of CO
2
emissions. The solutions are
also in line with the green goals of the European Union for the decarbonisation of society and support
Slovenia’s efforts to achieve established environmental objectives.
The Telekom Slovenije Group had a total of 1,148 vehicles in 2021, including 13 electric and 10 hybrid
vehicles. Telekom Slovenije had 646 vehicles. We consumed a total of 791,053 litres of fuel,
comparable with the level recorded in 2020, but 11% lower than prior to the COVID-19 pandemic.
Employees in Ljubljana and Maribor are able to share electric vehicles.
98
GRI PA8, GRI GS 102-11, 103-2
99
GRI GS 302-1
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
156
Number of vehicles by fuel type and consumption in litres in the Telekom Slovenije Group
Telekom
Slovenije
Diesel,
no. of
vehicles
Diesel,
consumption
in litres
Petrol,
no. of
vehicles
Petrol,
consumption
in litres
Total no.
of vehicles
Total
consumption
in litres at
Telekom
Slovenije
Total
consumption
in litres in
the Telekom
Slovenije
Group
2021
368
529,220
278
261,833
646
791,053
1,441,841
2020
380
519,741
278
268,803
658
788,544
1,352,401
2019
387
556,543
296
326,801
683
883,344
1,431,377
Sources: SAP/BI
In accordance with established programmes aimed at the achievement of environmental objectives,
GVO purchased seven additional electric vehicles in 2021 to be used at the electric vehicle charging
stations currently located at four locations (Ljubljana, Maribor, Celje and Nova Gorica). GVO thus
continues to implement its established sustainable development strategy, which it will continue to
pursue in the coming years.
Carbon footprint
100
In accordance with the Strategic Business Plan, we assessed Telekom Slovenije’s carbon footprint in
cooperation with an external consultancy firm. Used for the calculation is a standardised method in
accordance with the international standard on the accounting and reporting of greenhouse gas
emissions (GHG Protocol Corporate Accounting and Reporting Standard).
We included under Scope 1 direct emissions from the consumption of fuels (e.g. heating and company
vehicles) and fugitive emissions from electricity and air conditioning systems (HVAC). The estimated
value of the aforementioned scope is 2,916 tonnes of CO2 equivalents.
We included under Scope 2 indirect emissions from consumed electricity and heat. The estimated
value of this scope is 38,138 tonnes of CO2 equivalents
101
, which represents 85% of all greenhouse
gas emissions. Consumed electricity accounts for the majority
102
.
Scope 3 represents the organisation’s indirect emissions, which are not obligatory under the GHG
Protocol. This scope includes the consumption of drinking water and paper, waste management,
business travel, the transportation of employees to and from work, and assets leased to others
(lessees). The estimated value of the aforementioned scope is 3,688 tonnes of CO2 equivalents.
100
GRI GS 103-1, 103-2, GS 305-1, 305-2, 305-3
101
The emission factors (EFs) of suppliers (market) for the 2021 financial year are not yet known. The last known
EFs from 2020 are therefore taken into account. The estimated value may change when the market emission
factors for 2020 are published.
102
The calculation includes the electricity consumption of other operators in our premises and the associated
equipment (locations and site sharing).
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
157
Overview of the carbon footprint by categories in tonnes of CO2-equates for Telekom Slovenije in
2021
Real estate management
In real estate management, we strive for the optimisation and management of the costs of fees,
energy, maintenance, insurance, amortisation and depreciation and investments. Technological
premises are an important element of ensuring a stable and secure network. Because we have
concluded easement or lease agreements for the majority of that real estate, special attention is given
to ensuring legal aspects are in order. We also strive for the most appropriate and rational use
possible.
Our activity impacts people, the local community and the natural environment, but we strive to reduce
those impacts through sustainable solutions, while ensuring a high-quality and healthy living
environment.
Waste management
103
The Telekom Slovenije Group forwarded a total of 5,341 tonnes of waste in 2021.
Telekom Slovenije has a certified environment management system (in accordance with ISO 14001),
through which we demonstrate our awareness of and responsibility to the environment, and our waste
management efforts. The following types of waste are generated by Telekom Slovenije and its
subsidiaries: construction waste from the construction of the fibre optic network, municipal and
hazardous waste, and other separately collected fractions.
103
GRI GS 103-1, 103-2, 306-1, 306-2, 306-3
CO2 emission categories (t)
S1-1: Stationary emissions 0,8%
S1-2: Mobile emissions 4,5%
S1-4: Fugitive emissions from HVAC and refrigeration systems 1,1%
S2-1 and 2: Indirect emission from electricity consumption 79,9%
S2-3 and 4: Indirect emission from heat consumption 5,3%
S3-1: Purchased goods and services 0,0%
S3-5: Waste management 0,5%
S3-6: Business travel 0,0%
S3-7: Transportation of employees to and from work 3,1%
S3-8: Assets under lease 0,0%
S3-13: Assets leased to others 4,6%
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
158
Telekom Slovenije forwarded a total of 5,213 tonnes of waste in 2021, or around one half of the
amount recorded the previous year. Hazardous waste accounted for 10 tonnes of the aforementioned
total. The above-described reduction relative to the previous year was the result of a significant decline
in construction waste, which amounted to 4,651 tonnes or 89.21% of total waste. The majority of
forwarded waste is recycled or reused. Soil from construction waste is reused for agricultural
purposes. All waste electrical and electronic equipment is dismantled, resulting in reusable plastic
(18%) and metal (78%), while only 3% of the aforementioned waste is incinerated. Remaining waste is
also forwarded for material recovery (around 87%), while only 13% is forwarded for energy recovery
(incineration). When managing waste, we ensure that forwarded waste is recycled in an
environmentally friendly way. Waste for energy recovery is only forwarded to facilities that hold the
relevant environmental licences and that comply with the highest environmental standards in
accordance with European legislation.
We have placed special containers at Telekom centres for the collection of used batteries and ensure
the environmentally friendly disposal thereof. Users can also dispose of waste packaging from
purchased products and used electronic devices, such as mobile phones, at points of sale. To mark
the 30th anniversary of mobile telephony in Slovenia, we invited citizens to bring their old mobile
phones to points of sale. From there, we will ensure that they are recycled in an environmentally
friendly manner. In this way, we collected 500 kg of used mobile phones from September to December
2021, while the collection campaign will continue into 2022.
104
We have adopted a plan for the management of waste electrical and electronic equipment that is
based on the Decree on the Management of Waste Electrical and Electronic Equipment. Telekom
Slovenije manages waste electrical and electronic equipment responsibly following the end of a
device’s lifecycle. Based on the separate waste collection system, we have forwarded waste to an
authorised collector for destruction since 2017. That collector awarded us the ‘Resources SAVED
2020’, certificate, which indicates the quantities of raw materials saved. By operating in this way, we
contribute significantly to the achievement of the European Green Deal, which envisages the reduction
of greenhouse gas emissions to zero and the establishment of the circular economy by 2050.
We forward an average of close to 170 tonnes of waste electrical and electronic equipment a year,
while last year we forwarded 190 tonnes. Employees may also hand over equipment at 15 locations
throughout Slovenia in accordance with the specific instruction of a particular location at the Company.
Quantities of separated waste at Telekom Slovenije in tonnes
Type of waste (in tonnes)
2021
2020
2019
Index
21/20
Waste electrical equipment and electronic equipment,
batteries and metal
343
302
208
114
Waste packaging
144
150
177
96
Other (mixed municipal waste)
75
100
134
75
Construction waste
4,651
8,347
7,815
55
TOTAL
5,213
8,900
8,333
89
Water management
Water does not represent an important environment aspect at Telekom Slovenije, as it is not a major
consumer of water and it does not need water to perform its core activity. We monitor data manually
due to the scattering of locations owned by the Company throughout Slovenia (only a few of which are
in water protection areas) and due to various ordinances on the provision of municipal services.
Drinking water is monitored via received calculations, and we cannot currently disclose consumption in
terms of quantity. The majority of the locations owned by the Company comprise properties where
employees are not always present. Water consumption at those locations is thus low. Water
(specifically seawater) is only of material importance to Soline, which manages Sečovlje Salina Nature
Park (SSNP).
Because tap water is potable, we encourage employees to drink tap water where ever the work
process so allows. With respect to environmental protection and concern for the health of employees,
104
SASB: TC-TL-440a.1
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
159
we discontinued the use of water coolers in 2021 and thus contributed to the reduction
of plastic waste.
Paperless operations
105
Through the gradual discontinuation of paper operations, we are helping to create a
caring and environmentally friendly society. To that end, we implement numerous initiatives and
activities to reduce the number of printed invoices. Through activities implemented in 2021, we
succeeded in improving the ratio of electronic invoices to printed invoices relative to the previous year.
A total of 48.7% of invoices were thus received in electronic form in 2021, an increase of 2 percentage
points relative to 2020. The consumption of office paper was down by 26% compared with 2020, as
the result of digitalisation and remote work.
Consumption of office paper at Telekom Slovenije in euros
2021
2020
2019
Index
21/20
10,975
14,759
19,533
74
We use a qualified digital certificate for the signing of subscriber-related documents. Users are also
able to sign documents using a digital tablet, meaning an increasing proportion of documents retain
their original form and remain in electronic form for their entire life cycle. Our field technicians also sign
documents electronically in their work. A large proportion of agreements and other documents are sent
to users in electronic form after they are signed. We also digitalise incoming documents, so that more
than 70% of those documents are already digitalised.
Users who gave their consent for direct debit only receive their monthly invoice for services in
electronic form. We also encourage users to receive electronic invoices for the purpose of electronic
banking.
The Company’s archive materials represent an important part of its documentary materials and are of
permanent importance for its history, the broader environment, science, culture and legal protection.
The management of Telekom Slovenije’s documentary materials is governed by internal acts that
together make up internal rules in the aforementioned area. In August 2021, we received a new 5-year
certificate in the form of a decision from the Archives of the Republic of Slovenia, which states that
Telekom Slovenije’s internal rules are compliant with the law governing the protection of documentary
and archive materials.
TSmedia also uses e-invoices, as well as electronic forms for procurement and the reservation of
company vehicles, while orders are sent to suppliers electronically. The telephone directory, which is
accessible on DVD and on the itis.si website, is also issued electronically.
105
GRI TA2, SDG 12, 306-2
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160
Soline: diligent management of the Sečovlje Salina Nature Park
Soline manages the state-protected Sečovlje Salina Nature Park (SSNP) under a concession
agreement concluded with the Republic of Slovenia. In 2021, the park celebrated its 20th anniversary
since the Slovenian government defined the area that makes up the Sečovlje Salina Nature Park. The
SSNP was the first managed nature park on the Slovenian coast.
Key administrative objectives for the park were set out in the plan for managing the SSNP adopted by
the Slovenian government. The most important of those objectives include the preservation of the
wetland characteristics of the saltpan ecosystem, its biodiversity and the economic and cultural values
of the region. Soline submits an annual plan and a report on the management of the park to the
Ministry of the Environment and Spatial Planning for approval. Every activity that exceeds the normal
impacts on the environment must be approved by the department responsible for the protection of
nature and cultural heritage.
106
The Company is achieving administrative objectives through the following activities:
x maintaining the saltpan ecosystem;
x preserving traditional salt production processes and centuries-old technological processes; and
x continuing the production of salt, which has been the historical driving force behind the economic
development of the region.
The area of the SSNP, measuring 700 hectares, land and other real estate are owned by the
Slovenian government. Of the once numerous saltpans in the Gulf of Trieste, only the Sečovlje and
Strunjan saltpans have been preserved, and are therefore of exceptional importance in terms of
ethnological, technical, historical, settlement and landscape heritage. The immovable cultural heritage
of the Sečovlje saltpans includes salt fields, channels and embankments with stone walls, steps and
sluice gates, saltworkers’ houses and the surrounding area, paths, bridges, pumps, etc. The Saltworks
Museum in Fontanigge presents how salt was produced in medieval times. In the scope of the climate
fund, we renovated around 400 meters of embankments in the Lera salt production area in 2020 and
2021, as well as 15 sluice gates for controlling seawater in the Fontanigge area.
107
Likewise with the assistance of the climate fund, we purchased two electric vehicles in 2021, bringing
the total number to seven. The Garia utility vehicle comes in handy for minor maintenance works on
the SSNP infrastructure and in clean-up campaigns. The electric Peugeot e-Traveller is intended for
the transport of employees, the renters of berths, the elderly and disabled persons in the SSNP. Our
objective is to be the first protected area in Slovenia to completely abandon access to the park by
motor vehicles, ensure environmentally acceptable visits to the park and thus contribute to the
reduction of the carbon footprint.
We set up a new, modern bike shed with a charging unit for electric bikes and scooters at the entrance
to the SSNP. The Clorofilla charging station is intended for the charging of electric bikes and the
accelerated development of eco-tourism. We were the first to independently test the charging station
to which we connected our new Silence electric scooter, which is used for nature conservation. The
purchase of the electric scooter and the set-up of the bike shed were part of the activities supported by
the climate fund.
In 2021, we invested EUR 827,000 in the achievement of objectives that contribute significantly to the
EU’s environmental objectives to mitigate and adapt to climate change, as follows:
- measures to prevent and control the spread of non-native species in the amount of EUR 10,000;
- measures to manage the effects of climate change on the saltpan ecosystem in the Sečovlje and
Strunjan saltpans and other wetlands in the amount of EUR 705,000; and
- EUR 112,220 to ensure sustainable mobility and decarbonisation.
106
GRI GS 103-1, 103-2, 103-3
107
GRI GS 304-1, 304-3
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
161
New bike shed with a charging unit for electric bikes and scooter at the entrance to the SSNP.
The saltpan ecosystem is specific to the coastal wetlands. The entire salt production process is based
on traditional, 700-year-old processes and components from the local environment, and thus does not
produce any environmentally harmful by-products. The aforementioned concession agreement
requires us to continue producing salt using traditional processes, as the latter are crucial for
maintaining the cultural landscape and biodiversity. The use of the civil works and traffic infrastructure
is kept to a minimum.
Research confirms that invasive exotic species have not been introduced to the saltpans due to the
production process. The presence and number of such species are not yet so high as to have
significant consequences for ecosystems or communities. The number of species in the Sečovlje
Salina Nature Park has not fallen over the last ten years; on the contrary, we have recorded
continuous growth in populations. Additional measures aimed at the state of the hydrological regime
have led to an increase in the number of natural habitats for which halophilus plants are characteristic.
No major changes in ecological processes were seen in 2021.
There are no endangered animal or plant species from the IUCN’s global list of endangered species
present in the SSNP.
108
Around 20 bird species are included in the annexes to the Birds Directive,
while two species of fish, four amphibious species and one reptilian species are included in the
annexes to the EU’s Habitat Directive. At least 45 plants are included on the national list of
endangered plant species.
The Sečovlje Saltpans are included in the European Natura 2000 network. The region is recognised
as one of two that are of national importance to the migration of birds according to the Bird Directive,
while the saltpans are defined as a wetland of international importance according to the Ramsar
Convention.
The saltpans are best known for birds, as they are a large body of water that birds use for food,
overnight shelter or wintering during their migration. Certain species nest in the saltpans. We observed
new bird species in 2021. With the addition of the ringed teal, there are now 308 bird species
registered in the area of the SSNP. The park is also home to characteristic flora and fauna habitats
that are limited to various salt fields, saltpan channels and embankments.
We observed the ringed teal in the SSNP for the first time in 2021, bringing the number of bird species in the park
to 308.
108
GRI GS 304-4
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162
The inclusion of the local community in the raising of awareness and the preservation of cultural
heritage is crucial. The local community is included in the management of the park through its
participation in the Sečovlje Salina Nature Park Committee. This cooperation also takes place through
the organisation of joint on-site events and presentations.
We have recorded a drop in the number of foreign tourists and local visitors to the park in the last two
years due to the COVID-19 pandemic. The SSNP received 32,000 visitors in 2021, a decrease of 30%
relative to the pre-pandemic period, but an increase of 30% compared with 2020.
The sensitive natural environment in which the park is situated dictates that the company continuously
improves environmental and energy efficiency. The consumption of electricity was reduced in previous
years through changes in the regime for managing cooling and heating devices in visitor buildings. We
are gradually replacing company vehicles with electric models. We use web conferencing and mobile
telephones to communicate in the area of international cooperation in the scope of park management,
through which we reduce work-related travel. There was a sharp decrease in the latter during the last
two years due to pandemic-related measures. Soline was not fined for failure to comply with
environmental laws and regulations.
109
Consumption of energy and natural resources at Soline
110
2021
2020
2019
Index
21/20
Consumption of natural gas (in m
3
)
2,497
4,006
4,129
62
Consumption of electricity (in MWh)
403
401.43
392.12
100
Consumption of fuel (in litres)
35,111
25,970
35,295
135
Consumption of sanitary water in m
3
1,820
1,582
6,292
115
Consumption of sea water in m
3
- salt production
- Thalasso Spa Lepa Vida
220,050
218,050
2,000
184,050
182,000
2,050
196,210
194,000
2,210
Waste in m
3
137
117
135
117
Paper consumption in t
7
4
9
175
We maintained the consumption of fuel and electricity at a level similar to the previous year, while the
consumption of natural gas (which we use for the additional heating of pool water) was down slightly
due to the favourable conditions for the operations of the Lepa Vida Thalasso Spa. Sea water is
essential to the operations of Soline, as it is required for the production of salt and the functioning of
the Lepa Vida Thalasso Spa.
Sea water from the production of salt is returned to the sea uncontaminated. We segregate the salt
pan area into crystallisation basins, salt water tanks and evaporation basins for salt production. We
collect water at high tide and thicken it 21 days, while salt is produced daily. The seawater capture
cycle is repeated weekly during the salt production season. Brine is gradually released back into the
sea following salt production.
Only used sanitary water that is discharged into the public sewerage network is treated as waste
water. Due to the rehabilitation of the water supply network within the Lera salt production area, we
reduced the consumption of sanitary water by 75% in 2020, while consumption in 2021 was at a
comparable level. We used 2,000 litres of sea water for the functioning of the Lepa Vida Thalasso
Spa, in particular for the pool and salt-water showers, where the use of soap and shampoo is
forbidden. The sea water that is used for showering and the rinsing of salt-pan mud from the body
passes through two collectors to separate mud from the water, which is discharged back into the sea.
The sea water used in the swimming pool flows to a collection tank during filtering, where it is
dechlorinated and passes to a drainage system for its return to the sea.
111
Waste is consistently separated and disposed of by the competent municipal department.
109
GRI GS 307-1
110
GRI GS 302-1, 303-3, 306-3
111
GRI GS 303-1, 303-2
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
163
2.9.8 Supply chain
112
Procurement function
Group companies have a coordinated and standard procurement policy that includes the strategic
policies and principles of a transparent procurement process. We develop long-term relationships with
suppliers through correct and balanced communication, the fulfilment of agreements, the reliability of
payments and the inclusion of suppliers in the process. To that end, we respect all legal and ethical
principles on the market where we operate.
The procurement function is centralised, and thus facilitates the use of funds in an economic, efficient
and transparent manner. For easier management, purchases of specific goods and services, for which
procedures are carried out by experts from the ordering area, are excluded from central procurement.
The procurement of those goods and services is carried out by decentralised procurement units at the
Company that are given the necessary authorisations to carry out procurement procedures.
We have a standardised procurement procedure in place that facilitates the transparent and equal
treatment of potential suppliers. We assess the risks of cooperation with new suppliers, and thus
prevent increased costs and the loss of reputation. We regularly review existing strategic suppliers,
assess them and define measures for improving cooperation. The selection of the most appropriate
supplier is carried out in accordance with an offer assessment methodology.
Our supply chain comprises the suppliers of goods and services, operators and agents in the sale of
goods and the conclusion of subscriptions. Telekom Slovenije cooperates with 3,000 suppliers from 40
countries. The majority or 97% of suppliers are from the European Union.
Total turnover between Telekom Slovenije and its Slovenian subsidiaries and their business partners
amounted to more than EUR 677 million in 2021, including VAT. That amount also includes
sponsorships and donations.
To ensure compliance in procurement procedures, we include anti-corruption clauses in general
procurement terms and conditions, and in agreements with suppliers. By signing a statement, we
eliminate potential conflicts of interest with those involved in the process, while we also verify potential
conflicts of interest on the side of suppliers.
In terms of a sustainable supply chain, we expect suppliers to respect the Code of Conduct for the
Suppliers of the Telekom Slovenije Group, which defines basic principles of conduct and standards.
We dedicate a great deal of attention to environmental protection and energy efficiency. All sectoral
legislation is taken into account when ordering electrical and electronic equipment, batteries,
accumulators and air conditioning systems. Priority is given to energy efficient services, products and
equipment. The Group thus takes into account an assessment of energy efficiency over the entire
expected lifecycle of a service, product or equipment.
We also require suppliers to provide information regarding their efficient energy and waste
management. We obtain information via a questionnaire that serves as the basis for assessing one of
the criteria of cooperation with strategic suppliers and is the first step to promoting sustainability in
partnerships in the procurement process.
We will work even closer with suppliers and contractual partners in the future in the management of
material environmental aspects and indicators, and focus our energy on the improved identification of
the sustainability dimensions of the supply chain and purchased materials and services. We will also
inform key suppliers about sustainability commitments and goals, and thus encourage them to take a
step together on the path to sustainability.
Conditions on global markets were very unpredictable in 2021, as we encountered a lack of raw
materials, and rising prices of commodities, materials and equipment. We communicated constantly
with suppliers and regularly monitored the impact on supply to ensure the uninterrupted supply of
equipment and the provision of services. We carried out additional procurement procedures to seek
112
GRI GS 102-9, 102-10
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
164
out new, reliable suppliers who will supply us materials of the requisite quality for the best price. We
increased inventories of strategic materials and consistently ensured buffer stocks. With the exception
of a few minor delays that did not affect operations, we did not encounter any major problems in
supply.
Sustainable aspects of procurement
Financial benefits
Relations with suppliers and the Company’s reputation
• Liabilities are settled by agreed payment deadlines. We also settle liabilities early in the event of
surplus liquidity.
• We strive to meet the expectations of suppliers through correct communication, by respecting
agreements and through the reliability of payments, and thus enhance the Company’s
reputation.
• We strive to contribute as much as possible to the competitiveness and profit of the Company
through centrally managed procurement processes, a standard policy on the management of
partners and suppliers, the exploitation of synergies and the reduction of procurement costs.
Environmental benefits
Energy and environmental responsibility
• We comply with energy efficiency principles and responsible environmental management in
procurement processes in accordance with ISO 50001 and ISO 14001.
• In those processes we take into account an assessment of energy efficiency over the entire
expected lifecycle of a service, product or equipment.
• We insist that suppliers are committed to complying with legal requirements and best practices
in the areas of energy and environmental management.
• The assessment of our strategic suppliers includes sustainability criteria (efficient energy and
waste management).
• 17% of suppliers have a certified ISO 14001 environmental management system.
• 6.3% of suppliers have a certified ISO 50001 energy management system.
• 85% of suppliers include environmental management and energy efficiency in their development
criteria and use environmentally more acceptable and recycled materials.
• We facilitate paperless operations and encourage suppliers to do the same. One of the most
important elements of paperless operations are e-invoices, which account for 48.7% of all
received invoices.
Benefits for society
Social responsibility
• 0.38% of suppliers are registered as disabled workers’ companies. 0.55% of turnover is
generated with those suppliers.
Local economy
• Our procurement processes support the local economy, as the majority of turnover is generated
with Slovenian suppliers.
• Procurement outside of Slovenia is carried out for the supply of goods and services that we are
unable to secure in Slovenia or that are uncompetitive in terms of price.
• 97% of suppliers are from the European Union, while 90% of suppliers are from Slovenia.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
165
Human rights and labour law
• As a socially responsible company, we expect suppliers to respect human rights, ensure equal
opportunity in the workplace, and implement employment procedures that are fully compliant
with the law and regulations.
• We expect suppliers to respect the Code of Conduct for the Suppliers of the Telekom Slovenije
Group.
• We include an anti-corruption clause in agreements with the aim of preventing acts of
corruption.
• We use control points to prevent cross-interests and conflicts of interest in the procurement
process.
Logistics
We adapt to the dynamics of the market through the optimisation of logistics processes, and by
supporting IT and all those involved in the supply chain. We are raising social and environmental
awareness by establishing more sustainable and responsible logistics at the Company. Despite the
increased scope of work, we are participating in various campaigns and exploiting opportunities for the
circular economy.
Telekom Slovenije is establishing an EDI system that will facilitate the documentary exchange of data
and other information crucial for ensuring the traceability and transparency of operations, document
retention and prompt analysis reports.
Due to measures in connection with the COVID-19 pandemic, we identified a significant increase in
the activities of the Online Store in 2021, and made the necessary adjustments for the delivery of
goods to all stakeholders.
2.9.9 Protecting the Company, networks, systems and services
Ensuring the secure functioning of the work environment and the comprehensive protection of the
Company’s assets remain two of the priority corporate security tasks within the Telekom Slovenije
Group. Through the comprehensive management of corporate security, we facilitate a more rapid
response to recorded security events and mitigate security risks. By constantly monitoring
development in the area of corporate security, implementing innovative solutions to prevent security
events and rapidly identifying new threats, we ensure the security and quality of the network and
services, which represents an important competitive advantage of the Group.
The area of general security encompasses the management and planning of corporate security, where
we ensure the protection of people and the Company’s property through physical security measures
and the use of various technical/mechanical security systems. The continuous monitoring of
development and the inclusion of innovations in the management of the security of the Company’s
property are mainstays. To that end, we completed the partial replacement of the locking system in
2021 with a modern system that facilitates improved security (reduces security risks) and more
efficient management than the current system.
In the area of corporate security, we manage technical security systems through our own Security and
Control Centre and cooperate with various contractual partners. The Security and Control Centre
functions in accordance with valid regulations in this area and is certified according to the SIST EN
50518 standard. Such functioning ensures continuous control, the prompter adoption of measures
and, above all, important information that facilitates the inclusion and planning of new technologies.
Activities aimed at adapting and changing the Company’s processes due to the impact of the
pandemic continued in 2021. With the help of the BCMS (business continuity management system),
we adapted rapidly and effectively to the need to change processes, while we adapted and further
strengthened security measures through the ISMS (information security management system). We
placed a great deal of emphasis on cyber security, where Telekom Slovenije’s Cyber Security
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
166
Operation Centre plays a key role in the rapid identification of and appropriate response to cyber
threats. Systems and the network thus functioned without major disruptions or effects on the
availability and provision of services.
Through continuous training and the testing of the identification of security threats, primarily in the area
of cyber security, we continuously raise standards and ensure that the security culture and employees’
awareness of the importance of information security at Telekom Slovenije are at a high level. An
increasing amount of content regarding security threats and the safe use of electronic communications
equipment is intended for the users of our services, with the aim of raising their awareness.
In the area of security, we also ensure the fulfilment of legal requirements regarding the protection of
confidential data, as the Company receives requests from government authorities that are marked with
the level of confidentiality, and ensures the secure storage of that data. The Company also fulfils other
legal obligations in connection with civil protection, civil defence and the critical infrastructure.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
167
2.10 Content according to GRI Reporting Standards
113
Content according to GRI GS – core option
“This report has been prepared in accordance with the GRI Standards: Core option.”
GENERAL STANDARD DISCLOSURES
GRI standard
and disclosure
Description
Reporting boundaries
(within and outside the
organisation)
Section/page
Comments/external
assurance
114
GRI 101: Foundation 2016
GRI 102: General disclosures 2016
Presentation of the organisation
102-1
Name of the
organisation
Telekom Slovenije
Group
D
102-2
Brands, products and
services
Telekom Slovenije
Group
– brands and
products:
–
service types:
D
There are no limitations on the
services marketed by Telekom
Slovenije Group companies.
102-3
Location of
headquarters
Telekom Slovenije
Group
D
102-4
Location of
operations
Telekom Slovenije
Group
1.6/16
102-5
Ownership and legal
form
Telekom Slovenije
Group
D
102-6
Markets served
(geographical and
sectoral breakdown
and types of
customers)
Telekom Slovenije
Group
– geographical
breakdown:
1.6/16
,
–
service segments
(Telekom Slovenije,
T
Smedia, IPKO):
–
customer types:
D
102-7
Size of organisation
Telekom Slovenije
Group
- number of
employees:
2.9.5/
136,
-
sales revenue,
debt
-to-equity:
- number of products
and services:
2.7.2
/95,
D
We do not report on the number
of organisational units and the
number of products. No
employees, with the exception
of IPKO, a foreign company,
and the parent company GVO.
102-8
Employees by type of
employment, type of
contract, region and
gender
Telekom Slovenije
Group
D
We only report on the activities
of contracted workers for IPKO.
Data regarding employees are
collected via a questionnaire
completed by all Group
companies.
102-9
Description of the
organisation’s supply
chain
Telekom Slovenije
2.9.8/163
We report on types of suppliers
and the scope of cooperation
with them.
102-10
Significant changes
regarding the
organisation’s size,
structure, ownership
and supply chain
Telekom Slovenije
Group, Telekom
Slovenije
-
-
ownership: 1.11/
-
supply chain:
D
There were no significant
changes in the supply chain in
2021.
113
GRI GS 102-47, 102-54, 102-55
114
GRI GS 102-56
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
168
102-11
Clarification whether
and how the
organisation takes
into account the
precautionary
principle
Telekom Slovenije,
IPKO, local and wider
environment
D
We take a
precautionary
approach to electromagnetic
radiation, which is taken into
account in the expansion of
networks.
102-12
External documents,
principles and other
economic,
environmental and
social initiatives to
which the
organisation is a
signatory or supports
Telekom Slovenije
Group
D
102-13
Membership in
organisations
Telekom Slovenije
Group
D
Strategy and analysis
102-14
Statement of the
highest decision
-
making body on the
importance of
sustainable
development for the
organisation and
strategy
Telekom Slovenije
Group
D
The Group’s sustainable
development objectives are
defined in the Strategic
Business Plan (SBP) for the
period until 2026, which was
adopted by Telekom Slovenije’s
Management Board. Strategic
policies are also accessible on
the
Company’s website at
http://www.telekom.si/o
-
podjetju/predstavitev/strateske-
usmeritve.
Ethics and integrity
102-16
Values, principles
and standards of
behaviour, such as
codes of conduct and
ethics
Telekom Slovenije
Group, suppliers, local
and wider community
– values: 1.8.1/20
–
Code of Conduct:
2.5.1/
D
Governance
102-18
Governance structure
of the organisation,
including committees
of the highest
governance body
Telekom Slovenije
Group
D
Stakeholder engagement
102-40
List of stakeholder
groups engaged by
the organisation
Telekom Slovenije
Group
D
102-41
Percentage of
employees covered
by collective
agreements
Telekom Slovenije
Group
2.9.5/137
D
102-42
Basis for
identification and
selection of
stakeholder groups
with whom to
engage.
Telekom Slovenije
Group
D
The communication strategy
with stakeholders is an integral
part of Telekom Slovenije, d.
d.’s Corporate Governance
Policy, which is accessible on
the Company’s website.
102-43
Approaches to
stakeholder
engagement and
frequency of
engagement by
stakeholder group
Telekom Slovenije
Group
Key information:
–
shareholders:
1.11/
57, - users:
2.9.4/
–
employees:
2.9.5/146
D
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
169
102-44
Key topics and
concerns that have
been raised through
stakeholder
engagement, and
how the organisation
has responded to
them, including
through reporting
Telekom Slovenije
Group
Key information:
–
users:
2.9.4/
–
employees:
2.9.5/
D
Report profile
102-45
Entities included in
the consolidated
financial statements
Telekom Slovenije
Group
Note 5 in the
accounting report
(composition of the
Telekom Slovenije
Group), pp. 205–208
D
102-46
Process of defining
report content and
aspect boundaries
Telekom Slovenije
Group
D
102-47
List of material topics
Telekom Slovenije
Group
Material topics that the Telekom
Slovenije Group has identified
are stated in the GRI content
index. We do not report on
immaterial topics.
102-48
Effects of
restatements of
information provided
in previous reports,
and the reasons for
such restatements
Telekom Slovenije
Group
D
102-49
Significant changes
from previous
reporting periods in
the scope of
reporting and aspect
boundaries
Telekom Slovenije
Group
D
102-50
Reporting period
Telekom Slovenije
Group
D
102-51
Date of most recent
previous report
Telekom Slovenije
Group
D
102-52
Reporting cycle
(annual, quarterly)
Telekom Slovenije
Group
D
102-53
Contact point for
questions regarding
the report
Telekom Slovenije
Group
D
102-54
Claims of reporting in
accordance with GRI
Standards
D
102-55
GRI content index
102-56
External assurance
of reporting
Telekom Slovenije
Group
D
We regularly submit the annual
report for external assurance
since 2009. The scope and
basis of external assurance are
evident from the sustainability
report verification statement.
SPECIFIC STANDARD DISCLOSURES
Management
approaches
and
disclosures
Material topics
Reporting boundaries
Page
Reasons for
omission/explanati
ons
External
assuranc
e
ECONOMIC IMPACTS
GRI 201: Economic performance 2016
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
170
103-1
103
-2
103-3
Explanation of the
material topic and its
boundaries
1.8.3/23
D
201-1
Direct economic
value generated and
distributed
Telekom Slovenije
Group, shareholders,
local and wider
community
- revenues, labour
costs, payments to
shareholders:
-
revenues: 2.1/61
- donations and other
investments in the
commu
nity:
2.9.3/
We only report on
taxes for the
Telekom Slovenije
Group.
D
201-2
Financial implications
and other risks and
opportunities for the
organisation’s
activities due to
climate change
Telekom Slovenije
Group, users
Due to the
exposure of the
Telekom Slovenije
Group’s
telecommunication
s equipment, our
definition of key
risks includes risks
associated with
the external
environment and
climate change.
Those risks are
also present at
Soline, and impact
salt production
and the number of
visitors to the Lepa
Vida spa. These
risks are
prevented in
investments in
new networks
through
underground
construction.
We do not report
on financial
consequences.
D
201-3
Defined benefit plan
obligations and other
retirement plans
Telekom Slovenije
Group (employees)
2.9.5/143
D
GRI 202: Market presence 2016
103-1
103
-2
103-3
Explanation of the
material topic and its
boundaries
1.8.3/23
D
202-1
Ratios of standard
entry level wage by
gender compared to
local minimum wage
Telekom Slovenije
Group
2.9.5/144
We only report on
ratios for IPKO.
GRI 203: Indirect economic impacts 2016
103-1, 103-2
103
-3
Explanation of the
material topic and its
boundaries
Telekom Slovenije
Group
- 103-1, 103-2:
-
103-3:
2.8.1/110
D
203-1
Development and
impact of significant
infrastructure
investments and
services supported
by the organisation
Telekom Slovenije
Group, users, local
and wider community
D
GRI 205: Anti-corruption 2016
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
171
103-1
103
-2
103-3
Explanation of the
material topic and its
boundaries
Telekom Slovenije
Group
2.5.1/76
D
205-1
Number and
percentage of
activities assessed
for risks related to
corruption and the
significant risks
identified
Telekom Slovenije
Group
D
205-2
Communication and
training about anti-
corruption policies
and procedures
Telekom Slovenije
Group
2.5.1/78
The number of
hours is reported
for Telekom
Slovenije.
D
GRI 206: Anti-competitive behaviour 2016
103-1
103
-2
103
-3
Explanation of the
material topic and its
boundaries
Telekom Slovenije
Group
This area is
governed by the
Guidelines for
ensuring
compliance with
competition law,
which were
updated in 2021.
D
206-1
Number of legal
proceedings for anti-
competitive
behaviour, anti
-
trust
and monopoly
practices and their
outcomes
Telekom Slovenije
D
GRI 207: Tax 2019
103-1
103
-2
103
-3
207
-1
Approach to tax
Telekom Slovenije
Group
We do not report
on the evaluation
of the approach to
the management
of taxes or on the
link between the
management of tax
liabilities and
sustainable
development.
D
207-2
Tax governance,
control and risk
management
Telekom Slovenije
Group
D
207-3
Stakeholder
engagement
Telekom Slovenije
Group
2.5.1/79
We include
stakeholders and
tax
-related
regulatory bodies
in the process of
fulfilling tax
obligations.
D
207-4
Country-by-country
reporting
Telekom Slovenije
Group
Note 5 in the
accounting report
(composition of the
Telekom Slovenije
Group)
, pp. 205–2
08,
and Note 13
Corporate income
tax, deferred tax
assets and liabilities,
p. 215.
D
ENVIRONMENTAL IMPACTS
GRI 302: Energy 2016
103-1
103
-2
103-3
Explanation of the
material topic and its
boundaries
Telekom Slovenije
The area of energy
is governed in
Slovenia by the
D
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
172
Energy Act. We
also have in place
a system in
accordance with
international
standards ISO
50001 (energy
management
system) and ISO
14001
(environmental
management
system).
302-1
Energy consumption
within the
organisation
Telekom Slovenije
We do not report
on energy sources
consumed
(renewable and
non
-renewable
sources).
D
302-4
Reduction of energy
consumption
Telekom Slovenije,
IPKO
D
GRI 303: Waste and effluents 2018
103-1
103
-2
103
-3
303-1
Interactions with
water as a shared
resource
Soline
2.9.7/162
We only report on
how water is
withdrawn and
discharged.
D
303-2
Management of
water discharge
-
related impacts
Soline
2.9.7/162
We do not report
on the
methodology/stan
dards used to
determine the
consumption and
quality of the
discharge of water.
D
303-3
Water withdrawal
Soline
D
GRI 304: Biodiversity 2016
103-1
103
-2
103-3
Explanation of the
material topic and its
boundaries
Soline
D
304-1
Location and size of
land managed in, or
adjacent to, protected
areas and areas of
high biodiversity
value outside
protected areas
Soline, local and wider
community
We report on the
location and size
of land managed
by the company in
protected natural
areas.
D
304-3
Habitats protected or
restored
Soline, local and wider
community
2.9.7/160
We do not report
on the
methodologies
that were used for
that purpose.
304-4
Number of IUCN Red
List species and
national conservation
list species with
habitats in areas
affected by
operations
Soline, local and wider
community
D
GRI 305: Emissions 2016
103-1
103
-2
103
-3
Explanation of the
material topic and its
boundaries
Telekom Slovenije,
local and wider
community
103-3: We control
the evaluation of
the approach in
accordance with
the ISO 14001
standard.
D
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
173
305-1
Direct (Scope 1)
GHG emissions
Telekom Slovenije
D
305-2
Energy indirect
(Scope 2) GHG
emissions
Telekom Slovenije
D
305-3
Other indirect (Scope
3) GHG emissions
Telekom Slovenije
D
GRI 306: Waste 2020
103-1
103
-2
103
-3
Explanation of the
material topic and its
boundaries
Telekom Slovenije
103-3: We control
the evaluation of
the approach in
accordance with
the ISO 14001
standard.
D
306-1
Waste generation
and significant waste-
related impacts
Telekom Slovenije
306-2
Management of
significant waste
-
related impacts
Telekom Slovenije
306-3
Waste generated
Telekom Slovenije
Group Telekom
Slovenije
Quantitative data
regarding disposal
methods are
partially included
for Telekom
Slovenije. The
data presented are
taken from record
sheets.
D
GRI 307: Environmental compliance 2016
103-1
103
-2
103
-3
Explanation of the
material topic and its
boundaries
Telekom Slovenije
Regular and
transparent reporting
to the regulatory
body and other
government
authorities (e.g.
ARSO, SURS,
FURS, AKOS and
ETNO) also
represent an
important element of
the Group’s energy
and environmental
activities. We also
ensure compliance
with environmental
laws in the scope of
the ISO 14000
standard.
D
307-1
Value of significant
fines and non
-
monetary sanctions
for non
-
compliance
with environmental
laws and regulations
Telekom Slovenije,
Soline
No monetary or
non
-monetary
sanctions with
respect to the
environment were
imposed against
Telekom Slovenije
and its
subsidiaries.
D
SOCIAL IMPACTS
GRI 401: Employment 2016
103-1
103
-2
103-3
Explanation of the
material topic and its
boundaries
Telekom Slovenije
Group
2.9.5/136
D
401-1
Total number and
rate of new employee
Telekom Slovenije
Group
Data by gender
are not disclosed.
D
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
174
hires and employee
turnover
401-2
Benefits provided to
full
-
time employees
that are not provided
to temporary or part-
time employees
Telekom Slovenije,
GVO, TSmedia,
Avtenta, TSinpo
2.9.5/144
D
401-3
Return to work and
retention rates after
parental leave, by
gender
Telekom Slovenije
Group, Telekom
Slovenije
2.9.5/148
We report on the
number and
proportion of
employees who
took advantage of
and returned from
parental leave by
gender.
D
GRI 402: Labour/management relations 2016
103-1
103
-2
103-3
Explanation of the
material topic and its
boundaries
Telekom Slovenije
2.9.5/146
D
402-1
Minimum notice
period regarding
significant
operational changes,
including whether this
is specified in the
collective agreement
Telekom Slovenije
2.9.5/146
Deadlines for
notifying
employees are in
line with valid
legislation and are
not included in the
collective
agreement.
D
GRI 403: Occupational health and safety 2018
103-1
103
-2
103-3
Explanation of the
material topic and its
boundaries
Telekom Slovenije
Group
2.9.5/146
D
403-1
Occupational health
and safety
management system
All companies in
Slovenia, except
Soline.
2.9.5/147
D
403-2
Hazard identification,
risk assessment and
incident investigation
All companies in
Slovenia, except
Soline.
2.9.5/147
The Health
Committee
monitors and
handles
recommendations
to improve the
safety and health
of employees.
D
403-3
Occupational health
services
All companies in
Slovenia, except
Soline.
2.9.5/147
D
403-4
Worker participation
in the development,
implementation and
evaluation of the
occupational health
and safety system
All companies in
Slovenia, except
Soline.
2.9.5/147
D
403-5
Training in the area
of occupational
health and safety
All companies in
Slovenia, except
Soline.
2.9.5/147
D
403-6
Promotion of health
All companies in
Slovenia, except
Soline.
2.9.5/147
D
403-7
Prevention and
mitigation of
occupational health
and safety impacts
directly linked to a
company’s services
and products
Telekom Slovenije
We define
electromagnetic
radiation as one of
the more
significant impacts
of our operations.
We inform
employees about
this topic via the
D
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
175
intranet and users
via brochures at
points of sale.
403-8
Workers covered by
an occupational
health and safety
management system
Telekom Slovenije
Group
2.9.5/147
403-9
Number of work-
related injuries and
rate
Telekom Slovenije
Group
2.9.5/148
Reporting relates
to the number of
injuries.
D
GRI 404: Training and education 2016
103-1
103
-2
103-3
Explanation of the
material topic and its
boundaries
Telekom Slovenije
Group
2.9.5/139
D
404-1
Average hours of
training per employee
by gender and by
employee category
Telekom Slovenije
Group, Telekom
Slovenije
We report the
absolute number
of hours for the
number of training
hours by employee
category.
D
404-2
Programmes for
training and lifelong
learning
Telekom Slovenije
D
404-3
Percentage of
employees receiving
regular performance
and career
development reviews
by gender
Telekom Slovenije
Group
2.9.5/145
We do not report
by employee
category. We do
not report by
gender, as we do
not make a
distinction in this
regard.
D
GRI 405: Diversity and equal opportunity 2016
103-1
103
-2
103-3
Explanation of the
material topic and its
boundaries
Telekom Slovenije
Group
2.5.1/76
D
405-1
Composition of
governance bodies
and the breakdown of
employees by
employee category
(gender, age,
minority group
membership and
other relevant
indicators of
diversity)
Telekom Slovenije
Group
We do not report
data regarding
employees by age.
We also do not
report by
minorities, as we
do not make a
distinction in this
regard
.
D
405-2
Ratio of basic salary
and remuneration of
women to men, by
significant locations
of operation
Telekom Slovenije
Group
2.9.5/144
We do not report
the ratio for
companies in
Slovenia.
D
GRI 406: Non-discrimination 2016
103-1
103
-2
103
-3
Explanation of the
material topic and its
boundaries
Telekom Slovenije
Group
2.5.1/76
D
406-1
Total number of
incidents of
discrimination and
corrective
actions
taken
Telekom Slovenije
Group
2.9.5/136
D
GRI 412: Human rights assessment 2016
103-1
103
-2
103-3
Telekom Slovenije
Group
2.5.1/77
D
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
176
412-2
Total hours of
employee training on
policies and
procedures
concerning aspects
of human rights that
are relevant to
operations, including
the
percentage of
employees trained
Telekom Slovenije,
GVO, TSmedia,
Soline, IPKO
2.5.1/78
Training on human
rights focused on
the protection of
personal data. The
Group does not
report on the
percentage of
employees
included in
training.
D
GRI 415: Public policy 2016
103-1
103
-2
103
-3
Explanation of the
material topic and its
boundaries
Telekom Slovenije
Group
Telekom Slovenije
issued a Corporate
Governance
Statement on
compliance with
corporate integrity
guidelines and on
the prevention of
conflicts of interest
by members of the
Supervisory Board
and Management
Board (see section
1.10 Corporate
Governance
Statement).
D
415-1
Political contributions
Telekom Slovenije
Group
No political
contributions were
made.
D
GRI 417: Marketing and labelling 2016
103-1
103
-2
103-3
Explanation of the
material topic and its
boundaries
Telekom Slovenije,
TSmedia, IPKO,
users
2.7.4/109
We do not report
on product
marking.
D
417-3
Total number of
incidents of non
-
compliance with
regulations and
codes concerning
marketing
communications,
including advertising,
promotion and
sponsorship, by type
of non
-
compliance
and by outcomes
Telekom Slovenije,
TSmedia, IPKO,
users
2.7.4/109
D
GRI 418: Customer privacy 2016
103-1
103
-2
103-3
Explanation of the
material topic and its
boundaries
Telekom Slovenije
2.5.1/77
418-1
Substantiated
complaints
concerning breaches
of customer privacy
and losses of
customer data
Telekom Slovenije
2.5.1/78
GRI 419: Socioeconomic compliance 2016
103-1
103
-2
103-3
Explanation of the
material topic and its
boundaries
Telekom Slovenije
Group
2.5.1/76
D
419-1
Monetary value of
fines and number of
non
-monetary
sanctions for non
-
compliance with laws
Telekom Slovenije
Group
Telekom Slovenije
Group companies
did not receive any
fines.
D
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
177
and regulations in the
social and economic
area
SPECIFIC SECTOR INDICATORS (GRI G4) – MEDIA
Accessibility to media content
DMA
Telekom Slovenije,
TSmedia, users, local
and wider community
2.9.4/133
D
G4-M4
Measures to improve
accessibility to media
content and the
protection of
vulnerable audiences
Telekom Slovenije,
TSmedia, users, local
and wider community
2.9.4/133
D
SPECIFIC SECTOR INDICATORS (GRI G4) – TELECOMMUNICATIONS
Internal operations
IO1
Infrastructure
investments in the
telecommunications
network by region
Telekom Slovenije
Group, users, local
and wider community
D
IO3
Health and safety
measures for field
personnel
Telekom Slovenije
D
Provision of access to ICT products and services
PA1
Policies and
practices for
providing access to
the
telecommunications
infrastructure,
products and
services to the
population in remote,
less populated
regions
Telekom Slovenije,
IPKO, users, local
and wider community
2.9.4/135
D
PA2
Policies and
practices for
overcoming
obstacles in
accessing and using
telecommunication
products and
services relating to
the language, culture,
illiteracy, deficient
education, revenues,
special needs and
age
Telekom Slovenije,
users
2.9.4/134
D
PA4
Quantitative level of
available
telecommunication
products and
services in operating
regions
Telekom Slovenije,
IPKO
2.9.4/
D
PA6
Programmes for
providing and
maintaining
telecommunication
links and services in
extraordinary
circumstances and in
the event of natural
disasters
Telekom Slovenije
2.8.3/114
We manage
emergencies with
the business
continuity
management
system.
D
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178
PA8
Policies and
practices to publicly
communicate on
EMR-related issues
Telekom Slovenije,
users, local and wider
community
2.9.7/155
D
PA10
Initiatives to ensure
the clarity of charges
and tariffs
Telekom Slovenije,
users
2.9.4/129
D
Technological
applications
TA2
Examples of
telecommunication
products, services
and applications that
can replace some
physical form of use
(e.g. online telephone
directories and video
conferences).
Telekom Slovenije,
TSmedia, users
D
Content according to Sustainability Accounting Standard of the SASB (Sustainability Accounting Standards
Board)
Topic
Description of indicator
Section/page
Indicator code
Environmental
footprint of
operations
Energy consumption
2.9.7/153
TC-TL-130a.1
Competitive
behaviour &
open internet
Total amount of monetary losses as a result of
legal proceedings associated with
anticompetitive behaviour regulations
2.5.2/80
TC-TL-520a.1
Average actual sustained download speed of
owned and commercially-associated content
2.8.3/115
TC-TL-520a.2
Managing
technology
disruptions
System average interruption frequency and
customer average interruption duration
2.8.3/115
TC-TL-550a.1
Systems to provide unimpeded service during
service interruptions
2.8.3/114
TC-TL-550a.2
Product end-
of
-life
management
Materials recovered through take back
programmes, percentage of recovered
materials that were used, reused, recycled
and landfilled
2.9.7/158
TC-TL-440a.1
Data privacy
Description of policies and practices relating to
behavioural advertising and customer privacy
2.5.1/77
TC-TL-220a.1
Total amount of monetary losses as a result of
legal proceedings associated with customer
privacy
2.5.1/78
TC-TL-220a.3
Number of law enforcement requests for
customer information, number of customers
whose information was requested
2.5.1/78
TC-TL-220a.4
Data security
Number of personal data breaches
2.5.1/78
TC-TL-230a.1
Description of approach to identifying and
addressing data security risks, including use
of third-party cybersecurity standards
2.5.1/77
TC-TL-230a.2
Data
regarding
operations
Number of wireless subscribers
2.7.3/98
TC-TL-000.A
Number of wireline subscribers
2.7.3/98
TC-TL-000.B
Number of broadband subscribers
2.7.3/98
TC-TL-000.C
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179
2.11 Sustainability report assurance statement
115
115
GRI GS 102-56
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
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Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
181
3 ACCOUNTING REPORT OF THE TELEKOM SLOVENIJE GROUP
AND TELEKOM SLOVENIJE, D. D. FOR 2021
1. Reporting entity ..................................................................................................................190
2. Basis for preparation .........................................................................................................190
3. Summary of significant accounting policies ...................................................................193
4. Fair value determination ....................................................................................................205
5. Composition of the Telekom Slovenije Group ................................................................205
6. Segment reporting ..............................................................................................................208
7. Sales revenue .....................................................................................................................210
8. Other operating income .....................................................................................................211
9. Cost of goods sold, costs of materials, energy and services .......................................212
10. Labour costs .......................................................................................................................213
11. Other operating expenses .................................................................................................213
12. Finance income and finance expenses ............................................................................214
13. Income tax, deferred tax assets and tax liabilities ..........................................................215
14. Earnings per share .............................................................................................................217
15. Intangible assets ................................................................................................................218
17. Right-of-use assets ............................................................................................................227
18. Investments in subsidiaries ..............................................................................................229
19. Other investments ..............................................................................................................230
20. Contract assets ...................................................................................................................231
21. Deferred costs ....................................................................................................................231
22. Investment property ...........................................................................................................232
23. Assets held for sale ............................................................................................................233
24. Inventories...........................................................................................................................233
25. Trade and other receivables ..............................................................................................233
26. Contract assets ...................................................................................................................235
27. Deferred costs ....................................................................................................................235
28. Cash and cash equivalents ...............................................................................................235
29. Equity and reserves ...........................................................................................................236
30. Contract liabilities ..............................................................................................................237
31. Provisions ...........................................................................................................................238
32. Other liabilities ....................................................................................................................242
33. Loans and borrowings .......................................................................................................242
34. Lease liabilities ...................................................................................................................243
35. Other financial liabilities ....................................................................................................244
36. Trade payables ...................................................................................................................245
37. Contract liabilities ..............................................................................................................245
38. Accrued liabilities ...............................................................................................................245
39. Book and fair values ..........................................................................................................246
40. Contingent liabilitiess ........................................................................................................249
41. Related party transactions ................................................................................................250
43. Categories of financial instruments .................................................................................257
44. Financial instruments and financial risk management ..................................................257
46. Events after the reporting date .........................................................................................265
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
182
3.1 Financial statements of the Telekom Slovenije Group and Telekom
Slovenije
The consolidated and separate statement of profit or loss
Telekom Slovenije
Group
The Company
Telekom Slovenije
in EUR thousand
Note
I–XII 2021
I–XII 2020
I
–
XII 2021
I–XII 2020
Sales revenue
7
Other operating income
8
Cost of goods sold
9
-93,961
-90,427
-100,989
-98,493
Costs of materials and energy
9
-16,498
-14,546
-10,613
-10,752
Costs of services
9
-204,561
-226,036
-193,544
-217,367
Labour costs
10
-111,271
-111,101
-92,688
-93,320
Depreciation/Amortisation
15, 16, 17, 22
-169,056
-167,279
-142,175
-137,351
Other operating expenses
11
-6,507
-2,879
-7,444
-2,734
Total operating expenses
-601,854
-612,268
-547,453
-560,017
Operating profit
Finance income*
12
Finance expenses*
12
-8,617
-10,173
-8,746
-18,501
Profit before tax
Income tax
13
-4,705
-636
-3,553
Deferred taxes
13
-2,482
-2,153
Net profit from going concern
Loss from discontinued operations
13
-9,219
Net profit for the period
Basic and diluted earnings per share - in EUR
14
*The Company Telekom Slovenije’s finance income includes dividends received and interest on loans granted to
subsidiaries. The Company Telekom Slovenije’s finance expenses include the effects of impairment of the company
TSmedia.
More details in Note 12.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
183
The consolidated and separate statement of other comprehensive income
Telekom Slovenije
Group
Telekom Slovenije
in EUR thousand
Note
I–XII 2021
I–XII 2020
I–XII 2021
I–XII 2020
Net profit for the period
Other comprehensive income that may
subsequently be reclassified to the
statement of profit or loss
Translation reserves
29
-18
Change in fair value of hedging financial
instruments
29
Deferred tax
13
-15
-54
-15
-54
Change in fair value of
hedging
financial instruments (net)
Other comprehensive income that may
not be reclassified subsequently to the
statement of profit or loss
Actuarial gains and losses
29
-638
-
Change in fair value of investments in
equity instruments measured at fair value
through other comprehensive income
29
-
-
Deferred tax
13
-86
-86
Change in fair value of investments in
equity instruments measured at fair
value through other
comprehensive
income
-
-
Other comprehensive income for the
period after tax
-
-
Total comprehensive income for the
period
Comprehensive income attributable to
owners
Going concern
Discontinued operations
-9,219
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
184
The consolidated and separate balance sheet
Telekom Slovenije Group
Telekom Slovenije
in EUR thousand
Note
31 Dec 2021
31 Dec 2020
31 Dec 2021
31 Dec 2020
ASSETS
Intangible assets
15
Property, plant and equipment
16
Right-of-use assets
17
Investments in subsidiaries
18
Other investments
19
Contract assets
20
Other receivables
25
Deferred costs
21
Investment property
22
Deferred tax assets
13
Total non-current assets
Assets held for sale
23
Inventories
24
Trade and other receivables
25
Contract assets
26
Deferred costs
27
Investments
19
Cash and cash equivalents
28
Total current assets
Total assets
EQUITY AND LIABILITIES
Share capital
29
Share premium
29
Profit reserves
29
Legal reserves
29
Reserves for treasury shares and
interests
29
Treasury shares and interests
29
-3,671
-3,671
-3,671
-3,671
Statutory reserves
29
Other profit reserves
29
Retained earnings
29
Retained earnings from previous periods
Profit or loss for the period
Fair value reserve
29
-66
-497
-66
-497
Reserves for actuarial gains/losses
29
-2,139
-2,988
-1,863
-2,733
Translation reserves
29
-25
Total equity
Contract liabilities
30
Provisions
31
Other liabilities
32
Accrued liabilities
Loans and borrowings
33
Lease liabilities
34
Other financial liabilities
35
Deferred tax liabilities
13
Total non-current liabilities
Trade payables
36
Income tax payable
13
Loans and borrowings
33
Lease liabilities
34
Other financial liabilities
35
Contract liabilities
37
Accrued liabilities
38
Total current liabilities
Total liabilities
Total equity and liabilities
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
185
Consolidated Statement of changes in equity of the Telekom Slovenije Group
in EUR thousand
Share
capital
Share
premium
Profit reserves
Retained earnings
Fair value
reserve for
financial
instruments
Fair value
reserve for
hedging
instruments
in net
amount
Reserves
for actuarial
deficits and
surpluses
Translation
reserves
Total
Legal
reserves
Treasury
shares
reserve
Treasury
shares
Statutory
reserves
Other
profit
reserves
Retained
earnings
from
previous
periods
Profit or
loss for
the
period
Balance as at 1 Jan 2021
-3,671
-219
-278
-2,988
-25
Net profit or loss for the period
Other comprehensive income
for the period
Total comprehensive
income for the period
Dividends paid
-29,275
-29,275
Write-downs of unpaid
dividends
from previous years
Transactions with owners
-29,214
-
Transfer of profit or loss from
previous period to retained
earnings
-24,865
Other movements in equity
-29
Changes in equity
-24,865
Other
-12
-10
Balance as at 31 Dec 2021
-
-26
-40
-
More details in Note 29.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
186
Consolidated Statement of changes in equity of the Telekom Slovenije Group
in EUR thousand
Share
capital
Share
premium
Profit reserves
Retained earnings
Fair value
reserve for
financial
instruments
Fair value
reserve for
hedging
instruments
in net
amount
Reserves
for actuarial
deficits and
surpluses
Translation
reserves
Total
Legal
reserves
Treasury
shares
reserve
Treasury
shares
Statutory
reserves
Other
profit
reserves
Retained
earnings
from
previous
periods
Profit or
loss for
the
period
Balance as at 1 Jan 2020
-3,671
-507
-2,347
-6
Net profit or loss for the period
Other comprehensive income
for the period
-
-
-18
-
Total comprehensive
income for the period
-
-
-18
Dividends paid
-22,769
-22,769
Write-downs of unpaid
dividends
from previous years
Transactions with owners
-22,702
-
Transfer of profit or loss from
previous period to retained
earnings
-
Changes in equity
-941
Other
-
-3
-1
-
31 Dec 2020
-3,671
-219
-278
-2,988
-25
Notes on pages
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
187
Statement of changes in equity of the Company Telekom Slovenije
in EUR thousand
Share
capital
Share
premium
Profit reserves
Retained earnings
Fair value
reserve for
financial
instruments
Fair value
reserve for
hedging
instruments
in net
amount
Reserves
for
actuarial
deficits and
surpluses
Total
Legal
reserves
Treasury
shares
reserve
Treasury
shares
Statutory
reserves
Other
profit
reserves
Retained
earnings
from
previous
periods
Profit or
loss for
the period
Balance as at 1 Jan 2021
-3,671
-219
-278
-2,733
Net profit or loss for the period
Other comprehensive income
for the period
Total comprehensive income
for the period
Dividends paid
-
-
Write-downs of unpaid dividends
from previous years
Transactions with owners
-
-
Transfer of profit or loss from
previous period to retained
earnings
-
Changes in equity
-24,174
Other
Balance as at 31 Dec 2021
-3,671
-27
-39
-1,863
More details in Note 29.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
188
Statement of changes in equity of the Company Telekom Slovenije
in EUR thousand
Share
capital
Share
premium
Profit reserves
Retained earnings
Fair value
reserve for
financial
instruments
Fair value
reserve for
hedging
instruments
in net
amount
Reserves
for
actuarial
deficits
and
surpluses
Total
L
egal
reserves
Treasury
shares
reserve
Treasury
shares
Statutory
reserves
Other
profit
reserves
Retained
earnings
from
previous
periods
Profit or
loss for
the
period
Balance as at 1 Jan 2020
-3,671
-507
-2,069
Net profit or loss for the period
Other comprehensive income
for the period
-
-
-
Total comprehensive
income for the period
-
-
Dividends paid
-
-
Write-downs of unpaid
dividends
from previous years
Transactions with owners
-
-
Transfer of profit or loss from
previous period to retained
earnings
-
Changes in equity
-
Other
-2
-2
31 Dec 2020
-3,671
-219
-278
-2,733
Notes on pages
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
189
The consolidated and separate cash flow statement
Telekom Slovenije
Group
Telekom Slovenije
in EUR thousand
Note
I–XII
2021
I–
XII 2020
I–
XII 2021
I–
XII 2020
Cash flows from operating activities
Net profit for the period
Adjustments for:
Depreciation/Amortisation
15, 16,
17, 22
Impairment and write-offs of property, plant and
equipment, and intangible assets
Gain/loss on disposal of property, plant and equipment
-1,245
-1,079
Adjustment for discontinued operations
Impairment and write-off of inventories
11
Net impairment of receivables
11
Change in provisions and other changes
-1,005
-4,344
-4,500
Finance income
-1,996
-2,177
-15,225
-5,724
Finance expenses
Income tax expense with deferred taxes
-21
Cash flows from operating activities prior to
changes in working capital and provisions
Change in inventories
-5,421
-4,867
Change in trade and other receivables
-13,466
-14,761
Change in accrued and deferred asset items and
contract assets
Change in provisions
Change in trade and other payables
-7,332
-582
Change in accrued and deferred liability items and
contract liabilities
-
-
Income tax paid
-691
-848
Net cash from operating activities
Cash flows from investing activities
Proceeds from investing activities
Proceeds from the sale of property, plant and
equipment
Dividends received
Proceeds from interest
Proceeds from investments in subsidiaries
Proceeds from repayment of loans and deposits
Disbursements from investing activities
-199,217
-160,279
-185,521
-153,932
Disbursements from property, plant and equipment
-94,693
-97,475
-82,148
-89,013
Disbursements from intangible non-current assets
-104,274
-62,798
-100,673
-63,464
Investments in subsidiaries and associated companies
-1,500
Disbursements for loans and deposits issued
-250
-6
-1,200
-1,455
Net cash used in investing activities
-193,157
-154,710
-152,966
-136,803
Cash flows from financing activities
Proceeds from financing activities
Proceeds from other financial liabilities
Proceeds from borrowings
Proceeds from current loans
Disbursements from financing activities
-213,990
-72,136
-224,708
-71,401
Disbursements for approval of borrowings and issue of bonds
-646
-646
Maturity of bonds issued
-100,000
-100,000
Repayment of lease liabilities – principal
-12,593
-9,819
-11,655
-9,113
Repayment of current borrowings
-27,500
-39,100
Repayment of non-current borrowings
-35,495
-30,801
-35,495
-30,769
Disbursements for interest
-8,481
-8,747
-8,537
-8,750
Dividends paid
-29,275
-22,769
-29,275
-22,769
Net cash used in financing activities
-17,985
-71,136
-28,708
-64,401
Net increase/decrease in cash and cash equivalents
-5,096
Opening balance of cash
Effect of exchange rate changes on cash and cash equivalents
Closing balance of cash
Notes on pages
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
190
3.2 Notes to the consolidated financial statements of the Telekom
Slovenije Group and the separate financial statements of Telekom
Slovenije
1.
Reporting entity
the Telekom Slovenije Group (hereinafter: Telekom Slovenije Group or Group). A detailed overview of
the Group’s composition is given in the business report herein.
Telekom Slovenije is a public limited company . The Company's registered address is:
The controlling company’s shares are listed on the Prime Market of the Ljubljana Stock Exchange.
The Company’s ultimate owner is the Republic of Slovenia , which holds a 62.54% share in the
Company Telekom Slovenije (Note 29).
2.
Basis for preparation
a. Statement of compliance
The consolidated financial statements of the Telekom Slovenije Group and separate financial
statements of the Company Telekom Slovenije have been prepared in accordance with International
Financial Reporting Standards (IFRS) as adopted by the European Union, and in line with the
provisions of the Companies Act (ZGD-1).
The Management Board approved the consolidated financial statements of the Telekom Slovenije
Group and the separate financial statements of the Company Telekom Slovenije on 18 February 2022.
b. Measurement bases
The financial statements have been prepared based on historical cost, with the exception of:
• financial assets and liabilities measured at fair value or amortised cost, and
• assets held for sale measured at the lower of cost or recoverable value.
The Group’s and the Company’s financial statements have been prepared based on the going
concern assumption. (accounting assumption of going concern). The operations are not of seasonal
nature.
c. Functional and presentation currency
The attached financial statements of the Telekom Slovenije Group and separate financial statements
of the Company Telekom Slovenije have been prepared in Euros, which is the functional and
presentation currency of the controlling company and the Telekom Slovenije Group. All financial
information is presented in Euros and rounded to thousand unless otherwise defined.
d. Use of significant estimates and judgements
The preparation of the financial statements requires management to make certain estimates,
judgements and assumptions that impact the carrying values of assets and liabilities and the
disclosure of contingent liabilities on the balance sheet date and the balances of income and
expenses for the period then ended. Future events and their effects cannot be determined with
certainty. Accordingly, the accounting estimates made require the exercise of judgement, which
changes as new events occur, as more experience is acquired, as additional information is obtained
and as the business environment changes. The actual values may differ from those estimates.
Estimates and underlying assumptions are reviewed on a regular basis. Changes in accounting
estimates are recognised for the period in which the estimates change and in any future periods
affected.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
191
Estimates and assumptions that have the most significant effect on the amounts recognised in the
financial statements include:
Determining the useful lives of property, plant and equipment, intangible assets, and right-of-use
assets
In estimating the useful lives of assets, the Group takes into account the expected physical wear and
tear, as well as technical or commercial obsolescence. The adequacy of the useful lives is monitored
by a working group, which annually checks the useful lives and the residual value; if expectations differ
significantly from earlier estimates of depreciation/amortisation rates, the useful lives and residual
values are restated for the current and future periods.
For right-of-use assets, the Group and the Company determine the useful life based on the lease
contract term if the latter is shorter than the useful life. If the contract is concluded for an indefinite
period or is renewed annually, the expected depreciation periods for each category of assets are
Impairment of assets
Property, plant and equipment and intangible assets
The Group and the Company check on an annual basis the book values of significant items of
property, plant and equipment and intangible assets in order to establish whether there is any need to
impair any of the assets. Upon assessing whether indication for impairment exists, it is checked
whether significant technological changes, market changes or a significant decrease in interest rates
occurred. If this is the case, the asset’s recoverable amount is established. Impairment is carried out if
the asset's book value exceeds its estimated recoverable amount.
Impairment of goodwill is established at least once a year. For this purpose, the Group obtained a
certified business appraiser and carried out a valuation on 30 November 2021 according to which the
recoverable amount of goodwill exceeds its book value.
Information about other significant assessments of uncertainty taken into consideration by
management in the case of asset impairment are described in the following notes:
- Property, plant and equipment – Note 3.d and Note 16.
Investments in subsidiaries
For impairment of investments in subsidiaries, the Group checks indicators of impairment particularly
for companies that reported negative operating results and/or disclosed negative equity, or if there
were other indicators of impairment. In such cases, the Company obtains an estimate of the
recoverable amount of investments in subsidiaries by a certified business appraiser. Cash generating
units (CGU) at Group level are individual group companies. Details of establishing recoverable
amounts are described in Note 3.f.
Investments in interests and shares of other companies
The Group and the Company record investments in shares and interests of other companies under
financial assets measured at fair value through other comprehensive income.
Loans granted
In accordance with the requirements of standards, the Company and the Group assess on the need
for impairment for loans granted as well. The method of judgement is described in Note 3.f.
Trade receivables
To valuate receivables in accordance with IFRS 9, the Group and the Company use a simplified
approach with lifetime expected credit losses over the entire useful life. Probability of default
represents the key input data used to measure expected credit losses. Probability of default is
estimated based on experience from past years and future expectations. The Group’s policies are
Deferred tax assets
Deferred tax is calculated using the balance sheet liability method, providing for all temporary
differences between the book values and tax bases of assets and liabilities. The amount of deferred
tax is determined based on the expected method of payment or settlement of the book value of assets
and liabilities using the tax rates expected in future periods. Upon any change in the tax rate the
Group and the Company would make corresponding recalculations for deferred tax assets. The Group
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
192
and the Company recognise deferred tax assets if it is probable that sufficient future taxable profit will
be available, against which deductible temporary differences can be utilised. Detailed disclosure
Provisions for lawsuits
Provisions are recognised if a present obligation (legal or constructive) exists as a result of a past
event and it is probable that an outflow of resources embodying economic benefits will be required to
settle the obligation, and if the amount of the obligation can be estimated reliably. Provisions are
recognised depending on management’s estimation of the amount and timing of the obligation and the
probability of an outflow of resources required to settle the obligation, either legal or constructive.
Managements of individual companies within the Group check regularly, i.e. on a monthly basis,
whether the circumstances surrounding the formation of the amount of provisions have changed. In
the event of a change, the estimate of the amount of provision may change depending on the
estimated expected date and the amount of settlement. Formation of individual provisions is detailed in
Service concession arrangements at Soline, d. o. o.
The Group assessed the importance of applying provisions of IFRIC 12 Service Concession
Arrangements and SIC-29 Service Concession Arrangements: Disclosures and estimated that items
from the financial statements of Soline, d. o. o. as at 31 December 2021 are immaterial and that no
adjustment to individual items in the consolidated financial statements of the Telekom Slovenije Group
are needed.
e. New accounting standards and amendments to existing ones
Initial application of new amendments to the existing standards effective for the current
reporting period
The following new accounting standards, amendments to the existing standards and new
interpretations issued by the International Accounting Standards Board (IASB) and adopted by the EU,
are effective for the current reporting period:
COVID-19-Related Rent Concessions Amendment to IFRS 16 beyond 30 June 2021 and
effective for annual periods beginning on or after 1 April 2021. The amendment provides lessees
(but not lessors) with relief in the form of an optional exemption from assessing whether a rent
concession related to COVID-19 is a lease modification. Lessees can elect to account for rent
concessions in the same way they would as if they were not lease modifications. In many cases, this
will result in accounting for rent concessions in the form of variable lease payments. The practical
expedient only applies to rent concessions occurring as a direct consequence of the COVID-19
pandemic and only if all of the following conditions are met: the change in lease payments results in
revised consideration for the lease that is substantially the same as, or less than, the consideration for
the lease immediately preceding the change; any reduction in lease payments affects only payments
due on or before 30 June 2021; and there is no substantive change to other terms and conditions of
the lease. If the lessee chooses to apply the practical expedient, this would mean that the subject
practical expedient is consistently applied to all leases with similar characteristics and similar
circumstances. The amendment needs to be applied retrospectively in accordance with IAS 8,
however, in accordance with paragraph 28 (f) of the IAS 8, the lessees need not amend the
data/numbers from previous periods or declare any disclosures.
The amendment was expected to be applicable until 30 June 2021, however, as the impact of the
Covid-19 pandemic continued, IASB had, on 31 March 2021, extended the period of application of the
practical expedient until 30 June 2022. The amendment is applicable for annual periods beginning on
or after 1 April 2021.
The Group and the Company did not make significant COVID-19-related rent concessions.
The Group and the Company have applied certain standards and amendments which apply to
annual periods beginning on or after 1 January 2021 (unless otherwise stated) for the first time.
The Group has not adopted early any other standard, clarification, or amendment that has been
issued but is not yet valid.
Interest rate benchmark (IBOR) reform – phase 2 amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4
and IFRS 16 (issued on 27 August 2020 and effective for annual periods beginning on or after 1
January 2021). The Phase 2 amendments address issues that arise from the implementation of the
reforms, including the replacement of the existing benchmark with an alternative one. The
amendments cover the following areas:
- Accounting for changes in the basis for determining contractual cash flows as a result of IBOR
reform: For instruments to which the amortised cost measurement applies, the amendments
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
193
require entities, as a practical expedient, to account for a change in the basis for determining the
contractual cash flows as a result of IBOR reform by updating the effective interest rate using the
guidance in paragraph B5.4.5 of IFRS 9. As a result, no immediate gain or loss is recognised. This
practical expedient applies only to such a change and only to the extent it is necessary as a direct
consequence of the IBOR reform, with the new basis being economically equivalent to the
previous basis. Insurers applying the temporary exemption from IFRS 9 are also required to apply
the same practical expedient. IFRS 16 was amended in such a way that it requires lessees to use
a similar practical expedient when accounting for lease modifications that change the basis for
determining future lease payments as a result of the IBOR reform;
- End date for Phase 1 relief for non-contractually specified risk components in hedging
relationships: Phase 2 amendments require an entity to cease to apply Phase 1 reliefs in the
future for the non-contractually specified risk components when changes are made to the non-
contractually specified risk component, or when the hedging relationship is discontinued,
depending on whichever occurs earlier. No end date was provided in Phase 1 amendments for
risk components;
- Additional temporary exceptions from applying specific hedge accounting requirements: Phase 2
amendments provide some additional temporary reliefs from applying specific IAS 39 and IFRS 9
hedge accounting requirements to hedging relationships directly affected by the IBOR reform;
- Additional IFRS 7 disclosures related to IBOR reform: The amendments require disclosure of: (i)
how the entity is managing the transition to alternative benchmark rates, its progress and the risks
arising from the transition; (ii) quantitative information on derivatives and non-derivatives that have
yet to transition, broken down by significant interest rate benchmark; and (iii) a description of any
changes to the risk management strategy as a result of the IBOR reform.
The Telekom Slovenije Group and the Company Telekom Slovenije anticipate that the adoption of
these new standards and amendments to the existing standards will have no material impact on the
financial statements of the Group and the Company in the period of initial application. Amendments to
other accounting standards that are not binding for the Group and the Company or that are not
relevant for the Company, will not have an impact on the financial statements and are therefore not
disclosed.
3.
Summary of significant accounting policies
a. Basis for consolidation
The consolidated financial statements are comprised on the basis of the financial statements of the
controlling company Telekom Slovenije and its subsidiaries for the financial year 2021. Financial
statements of individual Group companies have been prepared for the same reporting year as the
financial statements of the controlling company using consistent accounting policies. In the event of
inconsistencies in accounting policies, individual companies make the relevant modifications in their
financial statements, which form the basis for the consolidated financial statements.
Business combinations
Business combinations are accounted for using the acquisition method on/as of the date when the the
controlling company obtains control over the subsidiary. The acquired assets and liabilities are
recognised in the consolidated financial statements at fair value estimated on the acquisition date.
The excess purchase consideration of the net fair value of the acquired assets is disclosed under
intangible assets as goodwill. If the excess purchase consideration is negative, it is recognised directly
in the statement of profit or loss as finance income.
Subsidiaries
Subsidiaries are entities controlled, indirectly or directly, by the Company Telekom Slovenije via its
own subsidiaries. The Company controls a subsidiary if it is exposed to or has rights to variable
returns from its involvement with the company. Control exists when the controlling company Telekom
Slovenije has the ability to affect the financial and business decisions of the company in order to
benefit from its operations.
Financial statements of subsidiaries are included in the consolidated financial statements from the
date on which such control begins. Subsidiaries are de-consolidated from the consolidated financial
statements from the moment when the control over the subsidiary by the controlling company or
another Group company ceases. If control over a subsidiary ceases during the year, the consolidated
financial statements include the results of the subsidiary up until the date on which such control over
the subsidiary still existed. Upon loss of control, all assets and liabilities of the subsidiary are
derecognised and the gain or loss due to the deconsolidation is recognised in the consolidated
statement of profit or loss. If the Group retains an interest in the previous subsidiary, this interest is
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
194
measured at fair value as at the date of losing control. Subsequently, this interest is accounted for as
investment in an associate (applying the equity method) or as financial investment in equity
instruments in accordance with IFRS 9, depending on the level of control in equity.
Consolidated financial statements do not include intra-group transactions, assets and liabilities, equity,
income and expenses, and cash flows between Group companies.
b. Foreign currencies
Foreign currency transactions
Foreign currency transactions are translated into the functional currency using the exchange rate at
the date of the transaction. Cash, receivables and liabilities and other monetary assets are translated
into the functional currency on the balance sheet date using the daily exchange rate as at the balance
sheet date. Non-monetary assets and liabilities expressed in a foreign currency and measured at
historical cost are translated using the exchange rate applicable on the date of transaction. Non-
monetary assets and liabilities expressed in a foreign currency and measured at fair value are
translated using the exchange rate as at the date on which the fair value was determined. All
exchange rate differences are recognised in the statement of profit or loss, except for differences that
arise on restatement of investments in equity instruments classified as measured at fair value through
other comprehensive income that are recognised directly in other comprehensive income.
Companies conducting business operations in foreign currencies
On the reporting date, foreign subsidiaries whose functional currency is not Euro translate their assets
and liabilities into Euro by using the exchange rate of the European Central Bank (ECB) as at the
reporting date, while the average exchange rate of the reporting period is applied for the statement of
profit or loss.
Until the foreign subsidiary is disposed of, exchange differences that occur in the translation from the
functional into the presentation currency are recorded in the statement of other comprehensive income
and accumulated within equity as translation reserve; Upon the disposal, these exchange differences
are transferred from the other comprehensive income to the statement of profit or loss.
c. Intangible assets
An item of intangible assets is recognised when it is probable that future economic benefits associated
with the item will flow to the the Group or the Company and the cost of the item can be measured
reliably. Upon initial recognition, intangible assets with finite useful lives are stated at cost less
accumulated amortisation and less any impairment possible losses. For intangible assets with an
indefinite useful life, it is ascertained at least once a year whether they need to be impaired in
accordance with IAS 36.
All intangible assets have finite useful lives, except the item of goodwill.
The Group and the Company monitor the useful lives of significant items of intangible assets through
administrators of these assets and within a working group, which annually checks the useful lives and
residual values. If estimated expectations differ significantly from the applicable estimates of
amortisation rates, the impact is restated for the current and future periods. The effect of such a
change is described in the notes within the accounting period in which the change in estimate
occurred. Compared to the previous year, estimated useful lives have not changed.
Amortisation of intangible assets is accounted on a straight-line basis over their estimated useful
lives and begins when assets are available for use.
Estimated useful lives of groups of intangible assets for the year 2021
Groups of intangible assets
Useful lives in years
– concessions
15 to 20
– trademarks
10
– licences
1 to 7
– programme rights – TV content
1 to 6
– cost of obtaining contracts with customers
2 to 3.5
– customer list
3 to 5
– computer software
3 to 7
– other property rights, patents, trademarks and licences
3 to 20
The costs of concessions obtained for the use of the radio frequency spectrum are capitalised at cost
and amortised on a straight-line basis over the useful life of the concession contract, which is between
3 and 20 years – Note 45.
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The costs of obtaining contracts with customers are costs that are directly related to the obtaining of
subscribers and represent additional costs the Group and the Company have with obtaining contracts
with customers and which would not have been incurred had the Group or the Company not obtained
the contract. Sales commissions are recorded as costs of obtaining contracts with customers and are
amortised in line with the transfer of the economic benefits to the customer, i.e. within the period of
expected contract term. If terminated subscriptions and subsequent accounting of sales commissions
exceeded 5% of the annual capitalised commissions, the Group would adequately decrease intangible
assets relating to sales commissions. The termination-related estimate is verified on an annual basis.
Capitalised costs comprise costs of material, direct labour costs, and other costs that can be directly
attributed to bringing the asset to the condition necessary for the intended use. The Group and the
Company monitors by project administrators to ensure that only those costs are capitalised that meet
the criteria defined.
Development costs are recognised under intangible assets if they can be measured reliably, if the
product or the process is technically and commercially feasible, if future economic benefits will result
from its use, if sufficient resources are available to complete development and if the entity intends to
use or sell the asset.
An intangible asset is derecognised upon disposal or when no future economic benefit is expected
from its use or disposal. Gains or losses arising from the derecognition of an intangible asset and
measured as the difference between the net disposal proceeds and the book value of the asset are
recognised in the statement of profit or loss upon their derecognition.
Through administrators of assets the Company assess annually whether there are any internal or
external circumstances which could provide significant indication that any of the intangible assets
should be impaired. Upon assessment of whether this indication of impairment of intangible assets
exists, it is checked whether significant technological changes, market changes or a significant
decrease in interest rates occurred. If such indications exist, the asset’s recoverable amount is
determined. Impairment is carried out if the book value of an intangible asset exceeds its recoverable
amount. The Group and the Company plan positive results and cash flows for the current and coming
years as well as cash flows from economic benefits of intangible assets, therefore, the need for
impairment was not established.
Goodwill
Goodwill arises upon acquiring a subsidiary and is measured at cost less accumulated impairment
losses. Impairment of goodwill is established for the cash generating unit (CGU) at least once a year.
Determining the present value requires the management to estimate future cash flows from the CGU
and set an appropriate discount rate. Impairment is recognised in the statement of profit or loss among
other operating expenses under the item 'impairment of intangible assets and property, plant and
equipment.
d. Property, plant and equipment
Upon acquisition, items of property, plant and equipment owned by Group companies are disclosed at
their cost. Cost includes all costs that may be directly attributed to getting an item of property, plant
and equipment ready for its intended use.
Estimated costs of restoring locations for receiving-transmitting stations to their original condition are
disclosed as an integral component of the asset's cost and are amortised over the asset's residual
useful life. Provisions required to restore the original condition, discounted to present value, are
reported under non-current provisions.
The cost of an item of property, plant and equipment constructed/made within the Group companies
includes the costs of material and direct labour. The costs of construction/making of property, plant
and equipment which are included in cost are recognised as cost reduction within profit or loss.
When an item of property, plant and equipment comprises major components with different useful
lives, these components are accounted for as separate items of property, plant and equipment.
Subsequent costs relating to property, plant and equipment increases their cost if it is probable that
their future economic benefits will flow to the Group or Company.
The progress of projects and investments is monitored by the Group and the Company through project
administrators on a monthly basis. If it is established that a certain project will not be finished, a write-
off is carried out.
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Upon initial recognition, property, plant and equipment are measured at cost and reduced according to
value due to depreciation or potential impairment.
Residual values and useful lives of significant items of property, plant and equipment are reassessed
on an annual basis and if expectations differ significantly from earlier estimates, depreciation rates are
adjusted for the current and future periods. The effect of the change in estimate is described by the
Group and the Company in the notes on the accounting period in which the change in estimate
occurred.
Depreciation is recognised in the statement of profit or loss on a straight-line basis over the estimated
useful lives of items of property, plant and equipment.
Estimated useful lives of groups of property, plant and equipment for the year 2021
Groups of property, plant and equipment
Useful lives in years
– buildings
50
– electrical and machine installations
15 to 30
– cable lines
33.3
– cable network – air
10
– cable network – land
20 to 25
– exchange switches
5 to 12.5
– other equipment
1 to 15
Compared to the previous year, estimated useful lives have not changed.
Items of property, plant and equipment under construction are recognised at their cost formed thus far.
Land and items of property, plant and equipment under construction are not depreciated. Depreciation
begins when items of property, plant and equipment are made available for use.
An item of property, plant and equipment is derecognised upon disposal or when no future economic
benefit is expected from its use or disposal. Gains or losses arising from the derecognition of an item
of property, plant and equipment, measured as the difference between the net disposal proceeds and
the book value of the asset, are recognised in the statement of profit or loss upon their derecognition.
Administrators of fixed assets assess annually whether there are any internal or external business
circumstances (significant technological changes, market changes, obsolescence or physical condition
of an item of property, plant and equipment) that could provide significant indication on the (non-
)suitability of the useful life or indication that an item of property, plant and equipment should be
impaired. An item of property, plant and equipment is subject to impairment if its book value exceeds
its recoverable amount. The recoverable amount equals fair value, less the estimated costs of sale or
value in use, whichever is higher. Value in use is assessed as the present value of expected future
cash flows, whereby the expected future cash flows are discounted to the present value by means of
the discount rate before income taxes.
Impairment of property, plant and equipment equipment is recognised in the statement of profit or loss
among other operating expenses under the item “impairment of intangible assets and property, plant
and equipment. . The Group and the Company plan positive results and cash flows for the current and
coming years as well as cash flows from economic benefits of property, plant and equipment,
therefore, the need for impairment was not established.
e. Leases
The Group and the Company as the lessee
Upon signing the lease contract, the Group and the Company assesses whether the contract contains
a lease in line with IFRS 16. Under this standard, a contract is, or contains, a lease if it conveys the
lessee the right to control the use of an identified asset for a period of time in exchange for
consideration. The Telekom Slovenije Group and the Company Telekom Slovenije have not used
exemptions envisaged by the standard for low-value lease contracts and for leases expiring earlier
than 12 months from the initial application.
For lease contracts, the standard requires a lessee to recognise a right-of-use asset (lease liability) at
the start of the lease.
A right-of-use asset is recognised on the day the lease begins, i.e. when the asset is available for
use. The initial measurement of an asset includes the amount of the lease liability at its initial
recognition (discounted present value of lease payments outstanding as at that date), lease payments
made at or before the lease commencement date less any lease incentives received and an estimate
of potential costs to be incurred by the lessee in dismantling and removing the underlying asset.
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Variable lease payments, which are not subject to inflation or interest rates are not included in the
measuring of lease liabilities and the right-of-use assets. The related payments are recognised upon
emergence of an event as an operating expense.
Right-of-use assets are subsequently measured at cost less any accumulated depreciation and less
impairment losses and adjusted for any remeasurement of the lease liability. The asset is depreciated
from the beginning of the lease until the end of its useful life or until the end of the lease term,
whichever is shorter. If the contract is concluded for an indefinite period or is renewed annually, the
expected depreciation periods for each category of assets are used.
Right-of-use assets are classified in the groups stated below. In the case of contracts of indefinite
duration, the following useful lives are applied:
Category or right-of-use assets
Useful lives in years
Base stations – easement and lease
15
Rental of premises
10
Technological premises – easement and lease
15
Lease of lines
15
Other
5
Compared to the previous year, estimated useful lives have not changed.
Indication of impairment is annually checked and in case of their occurrence, their recoverable amount
is determined. In the event of impairment, such impairment is recognised in the statement of profit or
loss in line with IAS 36.
Lease liabilities are recognised on the asset’s lease commencement date at the present value of
lease payments that have not been paid yet. Liabilities represent discounted contractually agreed
rents, while some contracts also include adjustment of liabilities to amend the cost of living index. The
discount rate is determined using the interest rate derived from borrowing costs and based on the
interest rate at which the Group and the Company, taking credit rating into account, can obtain a loan
for the purchase of property, plant and equipment of a comparable amount (value) and maturity. Upon
subsequent measurement of lease liabilities, the latter increase to reflect the interest on the lease
liability and decrease by the value of the lease payments, additionally, in the event that the lease
terms change, the present value is remeasured based on a reassessment of future lease payments or
a change in the lease term (duration or price).
After the lease commencement date, the financial liability from lease is remeasured using the new
discount rate if the lease term or future lease payment amount has changed. If a lease is terminated or
there is a decrease in scope, the gain or loss associated with the partial or full termination of the lease
is recognised in the statement of profit or loss.
Lease liabilities are recognised under non-current liabilities, except for liabilities that will be settled
over the following 12-month period from the balance sheet date and are stated in the balance sheet as
current lease liabilities.
Leases comprise the lease of lines, business and technological premises, the creation of easement or
lease of land or premises for base stations, and functional locations. Inter-operator leases in Slovenia
are regulated by published price lists for most services. Non-current leases are subject to conclusion
of contracts with a fixed-term period of predominantly 15 years.
For business premises, base stations and functional locations, easement compensation or lease
payment is set on the basis of agreements, valuations and the lessors’ price lists. Lease contracts are
concluded for a definite or indefinite period of time, while easement agreements are entered into for
the period of operation of electronic communication network and the pertaining infrastructure, or for a
fixed term with the possibility of extension based on new negotiations. Contracts or agreements
concluded for an indefinite period of time and for the period of operation can be terminated based on
certain conditions. These are as follows:
- the lessee or the easement beneficiary may terminate the contract in writing within 3 months if the
property in question does not meet the technical requirements or is no longer necessary;
- the owner can terminate the contract without a notice period if the lessee destroys the building;
- a notice period of 3 to 12 months applies if the lessee breaches provisions of the concluded
contract;
- the possibility of termination by the owner within 1 year pursuant to provisions of the Code of
Obligations and the Office Buildings and Business Premises Act.
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The Group and the Company as the lessor
The Telekom Slovenije Group and the Company classifies all leases under operating leases, as the
lease does not involve transferring all significant risks and benefits connected to the ownership of the
asset that is the subject of the lease. Lease payments arising from operating lease are recognised as
income in the statement of profit or loss within the lease term period. These refer primarily to co-
locations, lease of business premises and base stations. For the purpose of determining possible
lease payments, sample contracts are provided for regulated services, while commercial tariffs are
applied for unregulated services. The bases for lease payments are prepared under the same terms
and conditions as when the Group acts as a lessee. Lease contracts for the use of premises, co-
locations and base stations are mostly concluded for an indefinite period of time. The notice periods
range from 2 to 12 months. The right to terminate the contract lies with the customer under the terms
set out in the subject contract. In case of extraordinary circumstances (default) the contract may also
be terminated by the Group.
f. Financial instruments
Financial assets
A financial asset is recognised when the Group or the Company becomes a party to contractual
provisions of the financial instrument.
When a financial asset is recognised for the first time, the classification will depend on the business
model for managing financial assets and on their contractual cash flow characteristics of the acquired
financial asset, then the asset will be classified into one of the following categories:
– financial assets measured at amortised cost;
– financial assets measured at fair value through other comprehensive income.
Financial assets measured at amortised cost are financial instruments which the Group and the
Company hold within a business model whose objective is to hold financial assets in order to collect
contractual cash flows and the financial asset gives rise on specified dates to cash flows that are
solely payments of principal and interest on the principal amount outstanding. This category includes
borrowings, trade and other receivables, deposits, cash and cash equivalents.
Borrowings and receivables are recognised on day of the settlement and are initially measured at fair
value, plus any direct transaction costs. Upon initial recognition, they are measured at amortised cost
using the effective interest rate method, less expected credit losses.
Incurred profit and loss is recognised in the statement of profit or loss:
– if the financial asset is derecognised;
– if the financial asset is reclassified into a category measured at fair value through profit or loss;
– as a result of impairment.
Financial assets measured at fair value through other comprehensive income
This category includes investments in debt and equity financial instruments or shares and interests of
other companies.
Upon initial recognition of investments in equity instruments not held for trading, the Group irrevocably
decides to measure these investments at fair value through other comprehensive income. This
decision is made individually for each asset.
The fair value of investments that are listed on the stock exchange is measured at the closing stock
market price on each reporting date.
Investments are recognised/derecognised as at the date of purchase/sale, respectively.
Any gains or losses arising from changes in fair value of the financial asset are recognised in other
comprehensive income and presented directly in capital within the financial instruments fair value
reserve in the net amount. Amounts presented in other comprehensive income may not be
subsequently transferred to profit or loss. However, the Group may transfer the cumulative gain or loss
within equity’s item.
Dividends received on such investments are recognised in profit or loss only:
– upon establishment of the company’s right to receive a dividend;
– if it is likely that economic benefits arising from the dividend will flow into the company, and
– if it is possible to reliably measure the amount of the dividend,
except if the dividend clearly represents a recovery of part of the cost of the investment.
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Derivative financial instruments are used to hedge a company's exposure to risks arising from
financing and investing activities. The method of recognition of gains or losses arising from the change
in fair value of these instruments depends on whether hedge accounting has been applied or not.
Interest rate swap liabilities are measured at fair value obtained by the Company from the banks
participating in the transaction. The Company checks at least on a three-month basis whether interest
rate hedging is still adequate and, if so, discloses valuation effects in other comprehensive income. In
the event of positive valuation, the fair value is disclosed in the balance sheet under financial assets,
and in the event of negative valuation, it is disclosed under financial liabilities.
Trade and other receivables
Trade receivables are amounts of receivables due from business partners from the sale of goods and
services within the ordinary course of business.
To measure expected credit losses in accordance with MSRP 9, the Group uses a simplified
approach. Impairment of receivables is calculated as the amount equal to the expected credit losses
over the entire useful life of a receivable. To measure expected credit losses, receivables were
grouped together on the basis of common credit risk characteristics and maturities. Expected loss
rates are based on payment data in the last 36 months and past credit losses incurred during the
subject period. The effect of future-facing macroeconomic data on expected credit losses was
assessed as insignificant.
Loss due to impairment of receivables is recognised among operating expenses in the statement of
profit or loss and as decrease (impairment of receivables).
Impairment of financial assets
In line with IFRS 9, the Group and the Company use the expected loss model , and must, in addition
to the losses incurred, recognise losses expected to arise in the future. To that end, the Group and the
Company assess evidence of impairment of financial assets.
On each reporting date, the Group and the Company must recognise expected credit losses for the
entire duration, for all financial assets where an increase in credit risk has been noted since initial
recognition. In this context, they consider all relevant and provable information, including future-facing
information.
To estimate impairment, the Group and the Company apply the ECL measurement methodology,
which is based on the risk parameters:
- Exposure at Default (EAD),
- Probability of Default (PD) and
- Loss Given Default (LGD).
The risk parameter assessments, which they consider in estimating expected credit losses, are based
on a combination of own and external (market) data.
For the purpose of potential impairment, financial assets are assessed individually.
If, on the reporting date, the credit risk for the said financial instrument has not significantly increased
since initial recognition, the Group and the Company recognise net impairment losses on financial and
contract assets as an amount that is equivalent to expected credit losses over an Income 12-month
period.
For trade receivables and current contract assets that do not include a significant financing
component, a simplified approach is used which requires credit loss to always be measured as an
amount that is equivalent to expected credit losses in the entire duration.
In 2021, the Group and the Company did not change the valuation technique or significant
assumptions in assessing impairment of these financial assets.
Derecognition of financial assets
A financial asset is derecognised when:
- the contractual rights to receive cash flows from the financial asset are transferred, or
- contractual rights to receive cash flows are retained, but an obligation to pay those cash flows to
one or more recipients (ultimate beneficiaries) is assumed and there is no obligation to pay any
amounts unless the relevant amounts from the underlying asset are received.
On derecognition of an entire financial asset, the difference between its book value (on the date of
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derecognition) and the consideration received (including any newly acquired asset, minus any newly-
undertaken liability) is recognised in profit or loss, with the exception of investments in shares and
interests of other companies, for which the Group and the Company irrevocably decided to present
subsequent changes in fair value under other comprehensive income.
Financial liabilities
The Group’s and the Company’s financial liabilities mainly comprise borrowings.
Upon initial recognition, borrowings are disclosed at their fair value less possible costs. After initial
recognition, borrowings are stated at amortised cost using the effective interest rate method.
Under financial liabilities, liabilities arising from profit or loss distribution (dividends) are disclosed as
well until they are paid out. Dividends are recognised as a liability in the period in which they are
approved at the General Meeting of Shareholders and at the amount at which they are approved.
Borrowings are derecognised when all contractual obligations and liabilities are fulfilled, annulled or
statute-barred.
Trade and other payables
Upon initial recognition, trade and other payables are disclosed at fair value. Subsequently, they are
stated at amortised cost. Non-current trade payables primarily include programme rights and other
payables arising from operating activities.
Investments of the Company Telekom Slovenije in subsidiaries
Investments in subsidiaries are disclosed in Telekom Slovenije’s separate financial statements at cost,
less any impairment losses. Investments in subsidiaries are recognised on the date when risks and
benefits are transferred to the controlling company, i.e. when control is obtained.
The Group has no investments in associates and joint ventures.
Indications for impairment of investments in subsidiaries are assessed primarily under two criteria,
namely:
comparing the investment's book value with the proportionate share of the book value of the total
equity of the subsidiary on the cut-off date. Indication of impairment exists when the book value of
the investment on cut-off date exceeds the subsidiary’s proportionate share of equity by more than
20%;
comparing the key indicators for the financial year with projections of the subsidiary’s operation.
g. Investment property
Investment property is initially stated at cost. The cost of an investment property comprises its
purchase price and costs that may be directly attributed to the acquisition (transaction costs). After
initial recognition, investment property is stated at cost less accumulated depreciation and impairment
losses.
Depreciation is calculated on a straight-line basis over the useful lives of the assets. Land is not
depreciated. The useful life of investment property equals the useful lives of property, plant and
equipment.
Indication of impairment is assessed in the same way as for property, plant and equipment.
Investment property is derecognised upon disposal or when it is permanently withdrawn from use and
no future economic benefits are expected. Gains or losses arising from the derecognition of an item of
property calculated as the difference between the net disposal proceeds and the book value of the
asset are recognised in the profit or loss for the period during which the item of property is
derecognised.
h. Assets held for sale
Assets held for sale are assets that are expected to be recovered through sale rather than through
continuing use. The sale of these assets must be highly probable and anticipated in the coming 12
months. The sale is highly probable when the Group or the Company receives a buyer’s written
commitment for purchasing the assets.
Assets are reclassified under assets held for sale at the lower of their book value and fair value, less
costs to sell. Assets held for sale are not subject to depreciation.
Impairment losses on assets held for sale are recognised in the statement of profit or loss under “other
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operating expenses”, “impairment of intangible assets and property, plant and equipment” (Note 11).
The Group and the Company periodically check whether the asset meets the criteria for being
classified as held for sale. If the asset no longer meets these criteria, it is reclassified back as an item
of property, plant and equipment. This type of assets are measured at the lower of the following
values:
– book value prior to the asset's classification among assets held for sale, adjusted for possible
depreciation that would have been recognised if a property were not classified as property held for
sale;
– the recoverable amount on the date of the subsequent decision that the asset will not be sold.
Adjustments of the book values of assets which are no longer treated as assets held for sale are
included in the profit or loss for the period in which the recognition criteria are no longer met.
i. Inventories
Inventories are initially recognised at cost comprising the purchase price inclusive of discounts
granted, import duties and other non-refundable purchase duties, as well as costs directly attributable
to the acquisition.
Inventories are accounted for using the moving average price method.
Slow-moving, obsolete or damaged inventories are impaired to their net realisable value, which is
lower than the book value or the estimated sales value in the ordinary course of business, less the
estimated costs of completion and costs of selling the quantity unit.
j. Deferred costs
They mainly represent prepaid costs of leased capacities of the lines not defined under lease
according to IFRS 16 and other assets deferred that are transferred on a straight-line basis to costs,
with the transfer commencing on the effective date of the contract. In terms of duration, they are
classified as non-current (over 12 months) and current assets (up to 12 months).
Deferred costs include mostly costs in connection with calculation of international services.
k. Cash and cash equivalents
Cash and cash equivalents include cash in hand and available bank balances, short-term deposits
with original maturity of up to 3 months, where the risk of fair value change is minimal.
l. Provisions
Provisions are recognised if a present obligation (legal or constructive) exists as a result of a past
event and it is probable that an outflow of resources embodying economic benefits will be required to
settle the obligation, and if the amount of the obligation can be estimated reliably. If the effect is
material, provisions are determined by discounting the expected future cash flows.
Obligations with uncertain timing and amount are treated depending on management’s estimation of
the amount and timing of the obligation and the probability of an outflow of resources that will be
required to settle the obligation, either legal or constructive.
Contingent liabilities are not recognised in financial statements as their exact amount could not be
measured reliably or their existence will be confirmed only upon the occurrence or non-occurrence of
one or more uncertain future events not wholly within the control of the Group or the Company.
The management of each Group company continually assess contingent liabilities to determine
whether an outflow of resources embodying economic benefits has become probable. In this case, a
provision is recognised in the financial statements of the period in which the change in probability
occurs.
Provisions are reduced directly by costs or expenses for the covering of which they were created.
Provisions for liabilities from legal claims are formed on the basis of the estimate of the litigation
outcome made by the relevant departments or external parties. The formation of provisions is
assessed individually in view of the amount of the legal claim, its subject matter, the plaintiff's
assertions and the course of each individual procedure. Due to uncertainty, actual liabilities may differ
from those initially assessed. Management's estimates may change if new information is received.
Amendments to these estimates can have a significant impact on the business results. The amount of
provisions for liabilities from legal claims is disclosed in Note 31.
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Provisions for severance pays upon retirement and jubilee rewards are formed based on
statutory requirements, collective agreements and internal rules and regulations, according to which
the company is obliged to pay severance pays upon retirement and jubilee rewards. Provisions are
formed based on an actuarial calculation prepared by a certified actuary. They are formed in the
amount of estimated future payments of severance pays upon retirement and jubilee rewards
discounted at the balance sheet date. A calculation is made per individual employee, taking into
account the cost of severance pays upon retirement and the cost of all expected jubilee rewards by
the time of retirement. At each year-end, the amount of provisions is assessed and either increased or
decreased accordingly. This applies mostly for determining the discount rate, the estimate of staff
fluctuation and salary growth. The estimate on these liabilities can change in the future due to the
complexity of the actuarial calculation and its long-term nature. Assumptions applied are disclosed in
Note 31.
Provisions for costs of removing base stations refer to the costs of removing receiving-transmitting
base stations and restoring leased property to its original condition. Provisions are considered the best
estimate for the costs of removal of base stations. They are recorded at the amount of the discounted
value for the duration of the concession contract. The applied discount rate is based on the long-term
return rate of the risk-free securities. The cost analysis on the removal of base stations, which is
usually compiled every three years, is used as basis for the estimate. As at the year-end, the Group
and the Company assess whether the amount of formed provisions is sufficient; if not, the value is
properly adjusted.
Provisions for restructuring the company refer to severance payments to employees upon staff
restructuring and are formed when they become part of a strategic business plan and the dynamics of
employment-related changes (changed number of staff) is known.
m. Non-current trade payables
Non-current trade payables primarily include programme rights and other payables arising from
operating activities.
n. Accrued costs
Accrued costs comprise costs of unused annual leave, costs arising from calculation of international
services assessed on the basis of turnover made for which invoices have are not yet been received,
and other accrued costs. Differences between accrual and actual costs are included in profit or loss
upon the receipt of invoices. If no invoice is received for the already accrued costs within three years
after recognition, they are derecognised after this period expires. The latter does not apply to costs
arising from calculation of international services, whose derecognition is assessed individually.
o. Sales revenue
Sales revenue is recognised solely on the basis of the contract entered into with the customer. It is
recognised when goods and services are transferred to the customer in the amount that reflects the
compensation expected in exchange for these sold goods and services.
Each promised good or service is treated as a separate performance obligation if it is distinct. It is
distinct when the customer can benefit from said good or service. Performance obligation is a promise
to provide goods or services to the customer. The Group and the Company have identified the
following performance obligations:
– service,
– goods.
In the case of contracts with customers with a term of 12 or 24 months that include several
performance obligations (e.g. partially subsidised mobile phone or other communication device,
bundled with the service), the price of the whole transaction is allocated to individual performance
obligations on the basis of relative stand-alone selling prices of the device and service. Revenue from
the sale of goods is recognised immediately, while revenue from services is recognised over the
contractual term. In this context, recognised contract assets are those associated with the right to
consideration for sold goods or services which were rendered, but not billed, on the reporting date.
Payments are due in up to 90 days.
The value of the whole transaction is the amount of the compensation expected in exchange for
transferring promised goods or services. The value can be fixed or variable.
Revenue is recognised when the performance obligation is satisfied, i.e. when control of a good or
service is transferred to a customer. Control means that the customer has the ability to direct the use
of and obtain substantially all of the main benefits from the asset and the ability to prevent others from
directing the use of and obtaining the benefits from the asset. With services where performance
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obligations are met gradually, the Group and the Company recognise revenue on a monthly basis in
the amount that directly corresponds to the value of the part of the obligation fulfilled up to that
moment. On the basis of services rendered or the transfer of goods to the customer, the Group and
the Company recognise revenue in the accounting period in which the services or transfer of goods
are performed and in the amount it is entitled to charge.
Discounts granted upon contract signing are allocated between all performance obligations and are
deferred over the contract term. All discounts granted subsequently are recognised in the period for
which they were granted, as a revenue decline. Revenue is recognised in a net amount, exclusive of
value added tax, other taxes and any sales-related discounts.
Revenue relating to the mobile segment includes revenue from connection fees, subscriptions,
conversations, messages, data transfer, roaming out and additional services (e.g. service with added
value, M-vrata), and revenue from the sale of mobile phones and accessories.
Revenue from the sale of prepaid cards is deferred and recognised in the period when the customer
uses prepaid services. Should the customer fail to make use of them, the revenue is recognised when
the validity of an individual prepaid account expires.
Revenue from the fixed-line segment comprises revenue from connection fees, subscriptions,
conversations, and revenue from the sale of merchandise. Fixed-line services comprise revenue from
broadband services, classic fixed-line phone services and Centrex, fixed-line data services (services
with added value), data communication, IT-services and goods, and revenue from other
telecommunications services.
Connection fees in the mobile and fixed-line segment are recorded in the period in which the
connection of the customer is completed. Subscriptions are charged on a monthly basis. Revenue
from services with added value is disclosed on the net basis in the amount of the contractual
commission. Revenue from IT services and goods (e.g. system integrations, cloud computing,
management of integrated IT solutions) is recorded depending on the contractual relationship with the
customer. For providing services and maintenance thereof, the revenue is charged on a monthly basis
or deferred in the contract period. Revenue generated from the sale of licences or IT products is
recognised in the period when the sale is made.
Revenue from new services mainly include the income from electricity and financial services (VALÚ
Moneta), eHealth and insurance. In the sale of electricity, the Group and the Company act as the
principal, and therefore revenues are recognised on the gross basis. Excise duty, contributions and
use of network for electricity are not included in sales revenue.
Revenue from wholesale market comprises broad-band access, stream broad-band access, network
interconnection, lease of network, national tracking, and foreign inter-operator services.
Revenue from network interconnection is recognised based on the estimated value expected in view
of the traffic performed in the previous month. Monthly differences between estimated and actual
revenue arise mostly as a result of the tolerance allowed with data about traffic, and the price
changes. The tolerance allowed differs from one contract to another, amounting to a maximum of 2%
of the contractual value. These differences are included in profit or loss when the actual balance of
revenue is established. Revenue is recognised on the gross basis, as the Group provides services by
means of own network and equipment, based on contractually defined prices. Revenue is recognised
in the period in which the services are rendered.
Other revenue and other merchandise of the Telekom Slovenije Group include revenue generated
through network construction and maintenance by GVO, business IT solutions provided by Avtenta,
salt and related products of the company Soline, and multi-media contents of TSmedia.
With services where performance obligations are met gradually (e.g. telecommunication network
construction and maintenance), the , Group recognises revenue on a monthly basis in the amount that
directly corresponds to the value of the part of the company’s obligation fulfilled up to that moment.
The Group measures gradual progress towards complete fulfilment of performance obligation by
applying the output method. The Group has contracts in place under which the interim situation in
terms of the work done is established on a monthly basis. Based on the completed situations
confirmed by the customer, a monthly invoice is issued and revenue is recognised.
Other revenue and other merchandise of Telekom Slovenije include costs of income from rendering
support services for subsidiaries, lease of premises and equipment, tourism, other non-
telecommunication services, and income from the sale of material and other merchandise.
In all previously mentioned cases, the Group and the Company observe the policy of concurrent
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
204
recognition of revenue and costs in the period when the service is rendered or goods sold, regardless
of when the payment is made.
Contract assets and contract liabilities
A contract asset from contracts with customers is the Group’s and the Company’s right to
consideration in exchange for goods or services that the Group or the Company has transferred to a
customer, if this right is conditional on something other than the passage of time (e.g. the performance
of future obligations). A contract asset arises if goods or services are transferred to a customer before
the consideration is paid. In terms of time, assets are classified as non-current and current contract
assets.
It is checked on the reporting date whether contract assets should be impaired. To determine
impairment of contract assets which do not include a significant financing component, a simplified
approach is used, which requires impairment loss to always be measured as an amount that is
equivalent to expected credit losses in the entire duration. The Group and the Company impair the
contract assets for expected losses. Upon terminating a contract, the contract asset is derecognised
and expense arising from write-off of contract assets is recognised.
Contract liabilities are obligations to transfer goods or services to the customer, for which The Group
and the Company have already received consideration from the customer. Contract liabilities,
regarding which it is expected that the goods or services will be transferred to the customer in a period
longer than 12 months, are recorded as non-current liabilities.
Contract liabilities mainly refer to co-locations billed in advance, which are defined as a service under
IFRS 15 and are transferred among operating income according to the contractually agreed term of
co-location. Contract liabilities involve the estimate of issued credit notes arising from calculation of
international services, valued by turnover made, liabilities arising from the sale of prepaid phone cards,
and the customer loyalty programme. Co-funded projects refer to cash received from these projects.
Upon terminating a contract with customers, which caused the liability to be recognised, the liability is
derecognised and income arising from write-of of liabilities from contracts with customers is
recognised.
Government grants and co-funded projects
Government grants from co-funded projects are recognised in the balance sheet depending on the
contract and documentation for an individual project, when there is assurance that the Company will
receive the grant and fulfil the related conditions. Deferred income refers to cash received from
projects, which is not yet income, as the costs which these amounts are meant to cover have not been
incurred yet. The Group and the Company reverse the recognition of such accruals and deferrals by
calculating eligible costs. Accrued revenue arises when project-related costs have already been
incurred but the conditions for issuing the invoice have not been fulfilled yet.
In line with IAS 20 - Accounting for Government Grants and Disclosure of Government Assistance, the
Company and the Group present income-related grants by applying the method under which they are
disclosed under other income items.
p. Finance income and finance expenses
Finance interest income and expenses are recognised in the statement of profit or loss in the period in
which they occurred on the basis of the contractually set interest rate. Income from dividends received
is recognised on the day when the Group becomes entitled to the dividend.
q. Income tax
Income tax for the year comprises current and deferred tax.
Income tax is recognised in the statement of profit or loss except to the extent that it relates to items
directly recognised in other comprehensive income or equity, In this case it is recognised in other
comprehensive income. Current tax is the expected tax payable on the taxable income for the year,
using tax rates enacted at the reporting date, and any adjustments to tax payable in respect of
previous years.
Deferred tax is calculated using the balance sheet liability method, providing for all temporary
differences between the book values and tax bases of assets and liabilities. The amount of deferred
tax is determined based on the expected method of payment or settlement of the book value of assets
and liabilities using the expected tax rates of income taxes in future periods. Deferred tax assets are
recognised if it is probable that sufficient taxable profit will be available in the future, against which the
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
205
deductible temporary tax differences can be utilised.
Deferred tax assets and deferred tax liabilities are offset if there is a legal right to offset current tax
assets and current income tax liabilities and if the deferred tax is related to the same taxable legal
entity and the same taxation authority. Deferred tax is charged or credited directly to equity or other
comprehensive income if the tax relates to items that are credited or charged in the same or a different
period, directly to other comprehensive income.
r. Statement of cash flows
The statement of cash flows is compiled using the indirect method based on items of the balance
sheet as at 31 December 2021 and 31 December 2020, statement or profit or loss for 2021, and
additional information necessary to make adjustments of cash inflows and outflows.
4.
Fair value determination
In view of the accounting policies and breakdown, the fair value of financial and non-financial assets
and liabilities is to be determined in certain cases. The Group and the Company apply the following
hierarchy in determining fair values:
Level 1: determination of fair value directly by referencing the official published price on an active
market;
Level 2: other models used to determine fair value based on assumptions and material impact on fair
value in line with observed current market transactions with the same instruments either directly or
indirectly;
Level 3: other models used to determine fair value based on assumptions and material impact on fair
value that are not in line with observed current market transactions with the same instruments and
investments. The fair values of individual groups of assets are defined for the purpose of
measurement and reporting using the methods described below. With reference to assumptions for
determining fair values, additional clarifications are required and thereby stated in the breakdown to
individual items of assets and liabilities. For more details see Note 39.
Investment property
Due to the disclosure of fair value of investment property, fair value is determined annually with the
help of certified property appraisers. The fair value defined as the price that would be received in case
of the assets' sale or paid for the transfer in an agreed transaction among the market participants as at
the date of measurement is used as the basis for assessing the value. During the value assessment,
the suitability of valuation methods used for measuring the values of ownership rights within all three
methods is examined: market approach, income approach and cost approach.
Investments in equity instruments
Fair value of investments in equity instruments that are listed on the stock exchange is defined on the
basis of the closing stock exchange rate as at the reporting date. The fair value of investment in
ABCITI, Družba za investiranje, d.o.o., is determined based on an appraisal conducted by a certified
business appraiser. The impacts of appraisals are described in Note 19.
Trade and other receivables
Current trade receivables are not discounted due to their short-term nature. Upon initial recognition,
their cost is decreased by expected credit losses.
Financial liabilities
In financial liabilities relating to borrowings, the fair value does not deviate from the amortised cost.
5.
Composition of the Telekom Slovenije Group
Subsidiaries
116
As at the reporting date, the Telekom Slovenije Group comprises the controlling company Telekom
Slovenije and the following subsidiaries:
116
GRI GS 102-45
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
206
SUBSIDIARIES
Name Address
Country
Activity
Tax rate
Share in
equity in
%
Share in
voting
rights in
%
Share in
voting
rights in
%
Book value of equity
in EUR thousand
Profit or loss in EUR
thousand
2021
2020
2021
2020
2021
2020
SLOVENIA
1
GVO, gradnja in
vzdrževanje
telekomunikacijskih
omrežij, d.o.o.
Cigaletova 10, Ljubljana
Slovenia
construction, maintenance
works and management of
telecommunications
network
19%
100%
100%
100%
24,629
30,824
4,931
2,915
2
Avtenta, napredne
poslovne rešitve,
d.o.o.
Stegne 19, Ljubljana
Slovenia
system integrator 19%
100%
100%
100%
3,296
2,915
354
240
3
TSmedia, medijske
vsebine in storitve,
d.o.o.
Cigaletova 15, Ljubljana
Slovenia
multimedia and internet
content
19%
100%
100%
100%
342
-
1,215
31
-
453
4
SOLINE Pridelava
soli, d.o.o.
Seča 115, Portorož
Slovenia
production of salt and
preservation and
management of a
landscape park
19%
100%
100%
100%
1,207
1,470
-
265
-
1,012
5
TSinpo, d.o.o.
Litostrojska cesta 58 A
Slovenia
paper and cardboard tubes
19%
100%
100%
100%
57
16
19
19
6
Optic
-Tel, d.o.o.
Cigaletova 10, Ljubljana
Slovenia
telecommunication services
19%
100%
100%
100%
5,282
5,137
145
20
7
Infratel, d.o.o.
Cigaletova 10, Ljubljana
Slovenia
telecommunication services
19%
100%
100%
100%
4,995
4,981
14
6
8
USTANOVA SRČNI
SKLAD
Cigaletova 15, Ljubljana
Slovenia
humanitarian organisation
19%
100%
100%
100%
17
23
-6
12
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
207
SUBSIDIARIES
Name Address
Country
Activity
Tax rate
Share in
equity in
%
Share in
voting
rights in
%
Share in
voting
rights in
%
Book value of
equity in EUR
thousand
Profit or loss in
EUR thousand
2021
2020
2021
2020
2021
2020
ABROAD
9
IPKO
Telecommunications
LLC
Lagija Ulpiana, Rruga
"Zija Shemsiu", nr 34,
Prishtina
Kosovo
telecommunication services
10%
100%
100%
100%
14,862
2,995
11,867
-
1,601
10
SIOL, d.o.o., Zagreb
Margaretska 3, Zagreb
Croatia
telecommunication services
20%
100%
100%
100%
862
839
18
58
11
SiOL d.o.o.,
Sarajevo
Fra Anđela Zvizdovića
1, Sarajevo
Bosnia and
Herzegovina
telecommunication services
10%
100%
100%
100%
1,746
1,762
-16
-20
12
SIOL, d.o.o.,
Podgorica
Bulevar Svetog Petra
Cetinjskog br.106,
Podgorica
Montenegro
telecommunication services
9%
100%
100%
100%
2,776
2,695
81
75
13
SIOL, d.o.o., Skopje
Dimitrie Chupovski no.
4-1/14, Skopje
North
Macedonia
telecommunication services
10%
100%
100%
100%
1,443
1,363
75
78
14
SIOL DOO
BEOGRAD
-
PALILULA
Dvadesetsedmog Marta
11, Beograd Palilula
Serbia
telecommunication services
15%
100%
100%
100%
437
424
1
-4
15
GVO
Telecommunikation
GmbH
Daimlerstr. 3, Stadtlohn,
Germany
building and maintenance
works on
telecommunication
networks
15%
100%
100%
100%
25
27
-1
-1
16
SIOL, d.o.o.
Prishtina
Pejton, Str. Mujo
Ulqinaku 5/1, 10000
Prishtina
Kosovo
telecommunication services
10%
100%
100%
100%
264
182
83
-27
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
208
Changes in the composition of the Group
There were no changes in the Group composition in 2021. In 2021, a decision was made to start the
process of closing and closing down GVO Telecommunication GmbH.
6.
Segment reporting
Segment reporting disclosures are based on an internal reporting system which management uses in
decision-making. The criterion for segment reporting is the country of a company's headquarters;
hence, the Group records two segments: Slovenia and other countries.
Slovenia – this segment encompasses all Group companies with a registered office in Slovenia and
activities in the areas of fixed and mobile telephony telecommunication services, the installation and
maintenance of telecommunications network, the provision of multimedia and internet services, and
digital content and television. This segment includes: Telekom Slovenije, GVO, Avtenta, TSmedia,
Soline, TSinpo, OPTIC-TEL, and Infratel as well as Ustanova Srčni sklad, which organises and
collects donations, subsidies and other monetary and non-monetary assets to pursue its charity
mission. Planet TV, which is disclosed as discontinued operations due to its sale in 2020, is not
disclosed in the segments.
Other countries – includes all other Group companies, namely IPKO, SiOL Zagreb, SiOL Sarajevo,
SiOL Podgorica, SiOL Skopje, SiOL Beograd, SiOL Pristhine and GVO Telekommunikation GmbH.
The core activity of this segment is the provision of telecommunication services.
Sale transactions between individual segments are effected at market conditions. Intragroup
transactions are eliminated in the consolidation procedure and included among eliminations and
adjustments.
The Group does not disclose finance income and expenses per segments as the Group's financing is
centralised and conducted on the level of the controlling company. Disclosures on revenue from
external sales by type of product are provided in Note 7.
Segments’ accounting policies equal those applied by the Group, as outlined in Section 3.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
209
Segment reporting
in EUR thousand
Slovenia
Other countries
Eliminations and
adjustments*
Total
2021
2020
2021
2020
2021
2020
2021
2020
External sales
580,610
592,883
67,637
54,294
648,247
647,177
Inter
-segment sales
74,810
79,074
7,165
5,771
-
81,975
-
84,845
0
0
Total segment revenue
655,420
671,957
74,802
60,065
-81,975
-84,845
648,247
647,177
Other income
4,472
7,167
831
527
5,303
7,694
Cost of goods and material
sold
-
92,090
-
88,488
-
1,871
-
1,939
-
93,961
-
90,427
Costs of materials and energy
-
14,600
-
12,709
-
1,898
-
1,837
-16,498
-14,546
Costs of services
-185,238
-210,340
-19,323
-15,696
-204,561
-226,036
Labour costs
-104,925
-105,340
-
6,346
-
5,761
-111,271
-111,101
Depreciation/Amortisation
-143,649
-138,417
-25,407
-28,862
-169,056
-167,279
Other operating expenses
-
5,292
-
1,479
-
1,215
-
1,400
-6,507
-2,879
Total operating expenses
-545,794
-556,773
-56,060
-55,495
-601,854
-612,268
Operating profit per
segment
114,098
122,351
19,573
5,097
-
81,975
-
84,845
51,696
42,603
Finance income
1,996
2,177
Finance expenses
-
8,617
-
10,173
Profit before tax
45,075
34,607
Income tax
-4,705
-636
Deferred taxes
-2,482
113
Net profit for the period
37,888
34,084
Other data by segment
31 December
Slovenia
Other countries
Eliminations and
adjustments*
Total
2021
2020
2021
2020
2021
2020
2021
2020
Segment assets
1,307,526
1,315,843
122,128
132,105
-
179,315
-
220,109
1,250,339
1,227,839
Carrying amount of goodwill
3,718
3,718
0
0
0
0
3,718
3,718
Investments in intangible
assets
100,948
61,208
3,326
1,590
0
0
104,274
62,798
Investments in property, plant
and equipment
86,884
91,571
10,671
7,945
0
0
97,555
99,516
Segment liabilities
655,461
655,272
99,713
121,819
-
105,266
-
139,736
649,908
637,355
*Amounts of mutual relations between companies are excluded from the consolidated financial statements.
Segment revenue
in EUR thousand
Slovenia
Other countries
Total
2021
2020
2021
2020
2021
2020
Mobile services on
end-customer market
210,416
207,521
41,577
31,889
251,993
239,410
Fixed
-line telephone services on end-
customer market
191,180
207,893
22,521
21,276
213,701
229,169
Additional services
7,090
7,209
0
0
7,090
7,209
Wholesale market
143,002
143,963
3,539
1,128
146,541
145,091
Other revenue and merchandise
28,922
26,297
0
1
28,922
26,298
Total sales revenue
580,610
592,883
67,637
54,294
648,247
647,177
in EUR thousand
Slovenia
Other countries
Total
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
210
2021
2020
2021
2020
2021
2020
Revenue from services rendered
484,884
500,260
66,309
53,216
551,193
553,476
Revenue from the sale of goods
95,726
92,623
1,328
1,078
97,054
93,701
Total sales revenue
580,610
592,883
67,637
54,294
648,247
647,177
7.
Sales revenue
Breakdown of sales revenue by service groups
Telekom Slovenije
Group
Telekom Slovenije
in EUR thousand
I–XII 2021
I–XII 2020
I–XII 2021
I–XII 2020
Mobile services on end-customer market
251,992
239,410
210,592
207,727
Fixed-line telephone services on end-customer market
213,701
229,169
192,985
209,839
Additional services
7,090
7,209
7,091
7,209
Wholesale market
146,542
145,091
144,912
144,654
Other revenue and merchandise
28,922
26,298
22,050
22,264
Total sales revenue
648,247
647,177
577,630
591,693
Telekom Slovenije Group
Telekom Slovenije
in EUR thousand
I–XII 2021
I–XII 2020
I–XII 2021
I–XII 2020
Revenue from services rendered
551,193
553,476
476,905
491,855
Revenue from the sale of goods
97,054
93,701
100,725
99,838
Total sales revenue
648,247
647,177
577,630
591,693
Sales revenue represents sales revenue from contracts with customers. The Group and the Company
recognise revenue on the basis of a contract with a customer and when goods and services are
passed to the customer in the amount that reflects the compensation to which the Group expects to be
entitled.
In the case of contracts with customers with a term of 12 or 24 months that include several
performance obligations (e.g. partially subsidised mobile phone or other communication device,
bundled with the service), the price of the whole transaction is allocated to individual performance
obligations on the basis of relative stand-alone selling prices of the device and service. Revenue from
the sale of goods is recognised immediately, while revenue from services is recognised over the
contractual term. In this context, the contract assets are recognised that are associated with the right
to consideration for sold goods or services which were rendered, but not billed, on the reporting date.
Management expects that 75 % of the transaction price, allocated to unfulfilled obligations as at 31
December 2021, will be recognised as revenue in the amount of EUR 59,952 thousand in the next
reporting period. The remaining 25 %, i.e. EUR 19,543 thousand, will be recognised in the 2023
financial year. All other contracts with customers are valid for a period of one year or less, or are
charged according to the agreed term. The Group and the Company used the practical expedient
provided under IFRS 15.121 and chose not to disclose information about the unsatisfied performance
obligations.
In 2021, the Group recognised EUR 4,691 thousand in revenue (in 2020: EUR 5,034 thousand), which
was included at the start of the period under the balance of liabilities from contracts with customers.
Revenue from sales in the Telekom Slovenije Group amounted to EUR 648,2 million in 2021, which is
at the 2020 revenue level.
As for the mobile services on end-customer market, revenue has increased mostly due to higher
revenue from sale of mobile merchandise in Telekom Slovenije and higher revenue in IPKO. Through
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
211
intensive marketing activities, IPKO is gaining new users, and at the same time higher revenue was
also due to an increase in expatriates’ visits in 2021.
In the fixed-line telephone services on end-customer market, revenue is lower as a result of a
decrease in revenue from fixed-line phone services, which is the result of a decline in classical
connections and their replacement with IP-telephony, as well as due to lower revenue from the sale of
licenses; consequently, the costs of subcontractors decreased.
New sources of revenue include revenue from financial services, energy services, eHealth and
insurance. In 2021, eHealth recorded an increase.
Revenue on the wholesale market was higher than in 2020, primarily because of increased revenue
from roaming of foreign users in the Telekom Slovenije and IPKO mobile networks.
Other revenue and merchandise increased compared to 2020 due to higher revenue generated by
the subsidiaries outside of telecommunications activity.
Revenue from leases
The Telekom Slovenije Group generated EUR 9,698 thousand of revenue from leases in 2021 and
EUR 9,468 thousand in 2020.
The Company Telekom Slovenije generated EUR 10,492 thousand of revenue from leases in 2021
and EUR 10,392 thousand in 2020.
Lease maturity analysis – non-discounted leases which will be received in the period
in EUR thousand
Telekom Slovenije Group
Telekom Slovenije
Maturity
2021
2020
2021
2020
- up to 1 year
11,051
6,377
11,862
7,168
- between 1 and 2 years
6,428
10,790
7,165
11,581
- between 2 and 3 years
6,252
5,964
6,989
6,681
- between 3 and 4 years
6,111
5,814
6,295
6,530
- between 4 and 5 years
5,520
5,723
5,704
5,921
- over 5 years
32,211
34,928
32,577
35,509
8.
Other operating income
Telekom Slovenije
Group
Telekom Slovenije
in EUR thousand
I–XII 2021
I–XII 2020
I–XII 2021
I–
XII 2020
Government grants and other aids
1,722
2,910
371
1,228
Gains on disposal of property, plant and equipment
2,234
278
2,053
182
Revaluation other income
46
101
8
1
Revenue from write-off of liabilities from contracts with customers
19
22
19
14
Revenue from humanitarian foundation
52
60
0
0
Other income
1,230
4,323
970
3,829
Total other operating income
5,303
7,694
3,421
5,254
Other income relates mainly to received compensations, income from payment reminders, received
court-related expenses and other expenses.
Government grants and other aids mainly include state aid measures for mitigating the covid-19
epidemic effects. Pursuant to the Act Determining the Intervention Measures to Contain the COVID-19
Epidemic and Mitigate its Consequences for Citizens and the Economy, some of the Telekom
Slovenije Group companies used individual state aid measures:
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
212
- reimbursement of compensation for short-term absence from work due to COVID for up to 3
days, at the expense of the employer, was used by the following companies: Telekom
Slovenije, GVO, Avtenta, TSinpo and TSmedia, in the total amount of EUR 12 thousand.
- reimbursement of salary compensation when an employee did not perform work due to force
majeure was used by the following companies: Telekom Slovenije, GVO, Avtenta, TSinpo and
Soline, in the total amount of EUR 105 thousand.
- reimbursement of compensation for the quarantine period was used by the following
companies: Telekom Slovenije and GVO, in the total amount of EUR 26 thousand.
- reimbursement of fixed costs was used by the company Soline, in the amount of EUR 178
thousand.
- reimbursement of compensation for reduced working hours was used by the company Soline,
in the amount of EUR 18 thousand.
- Reimbursement of additional crisis allowance was used by the following companies: Telekom
Slovenije, GVO, Avtenta, TSmedia and TSinpo, in the total amount of EUR 111 thousand.
9.
Cost of goods sold, costs of materials, energy and services
Cost of goods sold
The cost of goods sold includes the cost of mobile and fixed telephony goods and other goods. Mobile
telephony goods include mobile phones, whereas fixed telephony goods comprise TV sets, tablets,
lap-tops, IT goods. Other goods consist of household equipment, material and electricity. In 2021, the
cost of goods sold of the Telekom Slovenije Group and the company Telekom Slovenije totalled EUR
93,961 thousand (in 2020: EUR 90,427 thousand) and EUR 100,989 thousand (in 2020: EUR 98,493
thousand), respectively.
Costs of materials and energy
Telekom Slovenije Group
Telekom Slovenije
in EUR thousand
I–XII 2021
I–
XII 2020
I–
XII 2021
I–
XII 2020
Costs of material
4,860
3,092
1,491
1,635
Costs of energy
11,638
11,454
9,122
9,117
Total costs of materials and
energy
16,498
14,546
10,613
10,752
The costs of material mainly include material for maintenance of the network, office supplies and
computer accessories, sales of promotion material, professional literature and small tools. The bulk of
the costs of energy is accounted for by electricity and fuel.
Cost of services
Telekom Slovenije Group
Telekom Slovenije
in EUR thousand
I–XII 2021
I–XII 2020
I–XII 2021
I–XII 2020
Telecommunications services
106,696
110,722
105,174
109,705
Costs of leased lines, networks and
platforms
5,322
5,819
7,978
8,365
Multimedia contents
8,976
16,559
8,944
17,845
Costs of subcontractors
22,393
34,067
18,053
28,409
Maintenance of property, plant and
equipment
21,972
21,335
22,183
21,912
Costs of other services
39,202
37,534
31,212
31,131
Total costs of services
204,561
226,036
193,544
217,367
The Group’s costs of services in 2021 are lower by EUR 21,475 thousand compared to 2020. In 2021,
income from international call services, and consequently also cost of international call services, was
lower, resulting in lower costs of telecommunication services. The costs of leased lines, networks and
platforms also declined.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
213
In comparison to 2020, costs of subcontractors decreased by EUR 11.7 million, as a consequence of
decreased revenue from the sale of licenses.
Costs of other services mainly comprise advertising and sponsorship costs in the amount of EUR
8,559 thousand (in 2020: EUR 7,271 thousand), costs of intellectual and personal services in the
amount of EUR 7,583 thousand (in 2020: EUR 7,480 thousand), and insurance premiums in the
amount of EUR 3,173 thousand (in 2020: EUR 2,826 thousand), respectively.
In 2021, the costs related to variable lease payments of the Telekom Slovenije Group stood at EUR
154 thousand (in 2020: EUR 159 thousand) and of the company Telekom Slovenije at EUR 35
thousand (in 2020: EUR 41 thousand).
10.
Labour costs
Telekom Slovenije Group
Telekom Slovenije
in EUR thousand
I–XII 2021
I–XII 2020
I–XII 2021
I–XII 2020
Salaries and compensations
95,782
96,077
73,226
74,529
Social security contributions
18,883
18,696
15,016
15,179
- of which pension insurance contributions
12,380
11,996
9,710
9,663
Other labour costs
12,684
12,429
9,249
8,903
Provisions for jubilee rewards
59
82
33
47
Provisions for severance pays
772
734
427
382
- of which provisions for restructuring
268
273
0
0
Capitalised own products and services
-
16,909
-
16,917
-
5,263
-
5,720
Total labour costs
111,271
111,101
92,688
93,320
In the Telekom Slovenije Group, of the total capitalised own products and services in the mound of
EUR 19,130 thousand (in 2020; EUR 19,037 thousand), EUR 16,909 thousand were disclosed under
labour costs (in 2020: EUR 16,917 thousand), respectively. The rest is disclosed under Other
operating expenses (Note 11). Services rendered for the needs of the Group are capitalised among
intangible assets and property, plant and equipment (Notes 15 and 16).
In 2021, the average number of employees by hours worked in the Telekom Slovenije Group was
3,234 (in 2020: 3,176 employees).
In the Company Telekom Slovenije, of the total capitalised own products and services in the amount
of EUR 6,112 thousand (in 2020: EUR 6,629 thousand), EUR 5,263 thousand were disclosed under
labour costs (in 2020: EUR 5,720 thousand), respectively. The rest is disclosed under Other operating
expenses (Note 11). Services rendered for the needs of the Group are capitalised among intangible
In 2021, the average number of employees by hours worked in the company Telekom Slovenije was
2,076 (in 2020: 2,103 employees).
Employee structure by level of education
Telekom Slovenije Group
Telekom Slovenije
Level/ Number of employees
31 Dec 2021
31 Dec 2020
31 Dec 2021
31 Dec 2020
Level I–IV
287
312
106
116
Level V
970
1,022
697
722
Level VI
704
706
382
384
Level VII
1,158
1,191
823
829
Level VIII
165
161
111
114
Total
3,284
3,392
2,119
2,165
11. Other operating expenses
Telekom Slovenije Group
Telekom Slovenije
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
214
in EUR thousand
I–XII 2021
I–XII 2020
I–XII 2021
I–XII 2020
Provisions
-1.005
-4,587
0
-4,500
Loss on disposal of intangible assets and
property, plant and equipment
989
564
974
552
Impairment and write-off of inventories
2,192
1,231
2,161
1,000
Impairment and write-off of operating and
other receivables
2,395
2,487
1,952
2,038
Adjustment and write-off of contract assets
682
795
677
769
Impairment of intangible assets and
property, plant and equipment
686
222
0
59
Impairment of leased (ROU) assets
54
35
55
39
Capitalised own products and services
-2,221
-2,120
-849
-909
Other humanitarian expenditure – Srčni
sklad
58
63
0
0
Other expenses
2,677
4,189
2,474
3,686
Total other operating expenses
6,507
2,879
7,444
2,734
In 2021, expenditure for provisions in the Group was negative due to the reversal of provisions for
performance bonds. In 2021, there was no forming or reversal of provisions in the company Telekom
Slovenije. In 2020, expenditure for provisions was negative due to the reversal of provisions for
probable liabilities resulting from legal claims, both in the Group and the Company. For more details
see Note 31.
Other expenses mostly relate to the cost of compensation for the use of land.
12.
Finance income and finance expenses
Telekom Slovenije Group
Telekom Slovenije*
in EUR thousand
I–XII 2021
I–XII 2020
I–XII 2021
I–XII 2020
Dividend income
128
8
11,128
841
Interest income
1,317
1,375
3,569
4,087
Net exchange gains
0
688
1
691
Revenue from write-off of liabilities for right-of-use
assets
78
75
77
75
Other finance income
473
31
450
30
Total finance income
1,996
2,177
15,225
5,724
Interest on bonds issued
872
1,992
872
1,992
Interest expenses
4,756
4,825
4,783
4,804
Foreign exchange net losses
549
0
538
1
Impairments and write-offs of investments
1
0
225
8,888
Interest expenses from lease liabilities
2,214
2,348
2,227
2,352
Other finance expenses
225
1,008
101
464
Total finance expenses
8,617
10,173
8,746
18,501
Financial result
-6,621
-7,996
6,479
-12,777
*The Company Telekom Slovenije’s finance income includes dividends received and interest on loans granted to
subsidiaries.
In 2021, the company Telekom Slovenije received dividends from its subsidiary GVO in the amount
of EUR 11,000 thousand (dividend income).
In 2021, the Company impaired the investment in its subsidiary TSmedia and recognised EUR 225
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
215
thousand of expenses. In 2020, the Company sold a 100% interest in its subsidiary Planet TV. The
purchase price amounted to EUR 5,000 thousand. From impairments and sale of the investment in
Planet TV, the Company recognised EUR 8,888 thousand of expenses (impairments and write-offs of
investments).
13.
Income tax, deferred tax assets and tax liabilities
Telekom Slovenije Group
Telekom Slovenije
in EUR thousand
I–XII 2021
I–XII 2020
I–XII 2021
I–XII 2020
Current tax payable
-4,705
-636
-3,553
0
Deferred tax assets/ liabilities
-2,482
244
-2,153
152
Other taxes not disclosed under other items
0
-131
0
-131
Total tax
-7,187
-523
-5,706
21
Other taxes not disclosed under other items include the write-off of the withholding tax paid abroad,
which cannot be claimed as the company Telekom Slovenije recorded tax loss in 2020 and had no tax
liabilities.
Reconciliation of the actual and accounted tax expenses considering the effective tax rate
Telekom Slovenije Group
Telekom Slovenije
in EUR thousand
2021
2020
2021
2020
Profit before tax
45,075
34,607
40,077
24,153
Income tax using the prescribed tax rate
-8,393
-6,575
-7,615
-4,589
Tax-free dividends received
124
154
2,011
154
Tax relief used in the current period
959
240
690
0
Reversal of tax relief used in previous periods
-1
-1,034
0
-1,034
Expenses not recognised for tax
-1,897
-3,356
-1,731
-3,242
Deductible expenses/revenues that were non-
deductible in previous years
1,064
13,472
1,022
13,473
Tax loss
-356
-6,061
0
-6,061
Unused reliefs
-84
1,450
-84
1,450
Other items
1,397
1,187
1
-131
Total tax
-7,187
-523
-5,706
21
Effective tax rate
15.9%
1.5%
14.2%
0.0%
The tax loss of the Telekom Slovenije Group as at 31 December 2021 stood at EUR 106,367
thousand (31 December 2020: EUR 116,606 thousand), respectively.
The tax loss of the company Telekom Slovenije as at 31 December 2021 stood at EUR 91,967
thousand (31 December 2020: EUR 91,967 thousand), respectively.
The unused tax reliefs of the Group stand at EUR 70,547 thousand for 2021, and at EUR 66,508
thousand for 2020. The unused tax reliefs of the company Telekom Slovenije as at 31 December 2021
stood at EUR 69,852 thousand (31 December 2020: EUR 65,771 thousand), respectively.
Deferred tax assets and liabilities are calculated on the basis of temporary differences under the
balance sheet liability method using the corporate income tax rate in the following years.
In the period concerned, corporate income was taxed at a 19% tax rate (2020: 19%) in Slovenia. Tax
rates in other companies are defined in the table of subsidiaries in Note 5.
Deferred tax assets
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
216
Telekom Slovenije Group
Telekom Slovenije
in EUR
thousand
2021
2020
Across
statement
of profit or
loss
Across com-
prehensive
income
2021
2020
Across
statement
of profit or
loss
Across com-
prehensive
income
Intangible
assets, and
property,plant
and equipment
20,194
17,000
3,194
20,185
16,990
3,195
Investments
1,217
1,232
-15
1,217
1,232
-15
Receivables
2,605
2,493
112
2,483
2,371
112
Tax loss and
unused tax
reliefs
17,713
23,156
-
5,443
17,712
23,155
-
5,443
Provisions
283
567
-
284
164
181
-17
Deferred tax
assets
42,012
44,448
-
2,421
-15
41,761
43,929
-
2,153
-15
Deferred tax assets from intangible assets and property, plant and equipment arise from the difference
between business-related and tax depreciation.
As at 31 December 2021, the Group and the Company have EUR 6,300 thousand of deferred tax
assets from unused investment incentives. In their tax declarations, the Group and the Company took
into account the investment incentives from the previous years and used deferred tax assets in the
amount of EUR 5,443 thousand. Deferred tax assets from investment incentives for 2021 were not
formed.
The use of deferred tax assets from unused tax loss carry-forwards is based on the going concern
criterion of use of tax loss and the possibility of reduction of tax base by 50% at most. As at 31
December 2021, the Group and the Company have EUR 11,413 thousand of deferred tax assets from
tax loss.
The Group and the Company take in consideration two criteria for tax planning: strategic business plan
and applicable tax legislation. For the next five years, the Group and the Company have a confirmed
strategic business plan stating future taxable profit. In tax planning, the Group and the Company
prepared the plan of using tax deductions in the next 5-year period, stating that deferred tax assets
from investment incentives of the planned 5-year period will be fully used by 2024, and the deferred
tax assets from tax loss, which is not restricted by law, will start being used in 2025, with different
dynamics.
Deferred tax liabilities
Telekom Slovenije Group
Telekom Slovenije
in EUR
thousand
2021
2020
Across
statement
of profit or
loss
Across com-
prehensive
income
2021
2020
Across
statement
of profit or
loss
Across com-
prehensive
income
Intangible
assets, and
property,plant
and equipment
1,389
1,328
61
0
0
0
0
0
Investments
321
235
0
86
321
235
0
86
Deferred tax
liabilities
1,710
1,563
61
86
321
235
0
86
Changes in deferred tax assets
in EUR thousand
Telekom Slovenije
Group
Telekom Slovenije
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
217
Balance as at 1 Jan 2020
44,044
43,545
Drawing
-5,704
-5,662
Reversal
-1,957
-1,806
Formation
8,065
7,852
Balance as at 31 Dec 2020
44,448
43,929
Drawing
-7,735
-7,704
Reversal
-1,078
-767
Formation
6,377
6,303
Balance as at 31 Dec 2021
42,012
41,761
Changes in deferred tax liabilities
in EUR thousand
Telekom Slovenije
Group
Telekom Slovenije
Balance as at 1 Jan 2020
1,676
275
Reversal
-113
-40
Balance as at 31 Dec 2020
1,563
235
Reversal
23
-38
Formation
124
124
Balance as at 31 December 2021
1,710
321
In Telekom Slovenije, the amount of deductible temporary differences, unused tax losses and unused
tax credits for which deferred tax assets were not formed, amounts to:
- on 31 December 2020; EUR 35,866 thousand, and deferred tax assets would amount to EUR
6,814 thousand;
- on 31 December 2021; EUR 68,591 thousand, and deferred tax assets would amount to EUR
13,032 thousand.
In the Telekom Slovenije Group, the amount of deductible temporary differences, unused tax losses
and unused tax credits for which deferred tax assets were not formed, amounts to:
- on 31 December 2020; EUR 50,655 thousand, and deferred tax assets would amount to EUR
9,624 thousand:
- on 31 December 2021; EUR 83,500 thousand, and deferred tax assets would amount to EUR
15,865 thousand.
The Group and the company did not form deferred taxes because long-term projections do not show
the possibility of use.
Income tax payables
The current income tax payables for 2021 amount to EUR 3,595 thousand for the Telekom Slovenije
Group (EUR 90 thousand in 2020).
For Telekom Slovenije, the income tax payables amount to EUR 3,553 thousand; in 2020, the
Company had no liabilities.
14.
Earnings per share
Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to
ordinary shareholders by the weighted average number of ordinary shares, excluding ordinary shares
owned by the Company or Group.
The Group and the Company do not have any dilutive potential ordinary shares, which is why the
basic and diluted earnings per share are equal.
Weighted average number of ordinary shares
Telekom Slovenije Group
Telekom Slovenije
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
218
In EUR thousand
I–XII 2021
I–XII 2020
I–XII 2021
I–XII 2020
Weighted average number of
ordinary shares
6,535,478
6,535,478
6,535,478
6,535,478
Less treasury shares of the
Company
-
30,000
-
30,000
-
30,000
-30,000
Total
6,505,478
6,505,478
6,505,478
6,505,478
Earnings per share
Telekom Slovenije Group
Telekom Slovenije
In EUR thousand
I–XII 2021
I–XII 2020
I–XII 2021
I–XII 2020
Net profit or loss from going concern
37, 888
34,084
34,371
24,174
Weighted average number of ordinary shares
for earnings per share
6,505,478
6,505,478
6,505,478
6,505,478
Earnings per share from going concern
5.82
5.24
5.28
3.72
Net profit or loss from discontinued operations
0
-9,219
Profit per share from discontinued
operations
0.00
-
1.42
0.00
0.00
15.
Intangible assets
Concessions refer to the right to use the GSM, UMTS and LTE frequency spectrum on the territory of
the Republic of Slovenia, and GSM in Kosovo in the total amount of EUR 109,392 thousand (31
December 2020: EUR 65,910 thousand), respectively. Under concessions and licences, the Group
also discloses programme rights and licences for use of computer software. Details on individual
concessions are disclosed in Note 45 in the table Concessions for mobile phone services.
Goodwill of EUR 3,718 thousand in the Telekom Slovenije Group occurred during the takeover of
companies TSinpo (EUR 115 thousand) in 2017 and the takeover and acquisition of the company
Debitel in 2015 (EUR 3,603 thousand). The reduction of goodwill is due to the derecognition of the
previously impaired goodwill arising from the takeover of companies, which the Group had already
disposed of in the past years.
At the end of 2021, the Group and the company made an assessment of the recoverable amount of
goodwill occurring in the acquisition of the company Debitel. The valuation was conducted by a
certified business appraiser. The present value method of expected cash flows was used for the
recoverable amount assessment of non-current assets of the Debitel cash generating unit (CGU). It
was established that the recoverable value of non-current assets of the Debitel CGU exceeds its
carrying amount, thus requiring no impairment of goodwill.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
219
Telekom Slovenije Group
Changes in intangible assets of the Telekom Slovenije Group in 2021
in EUR thousand
Goodwill
Concessions
and licences
Cost of
obtaining
contracts
with
customers
Computer
software
Other
intangible
assets
Intangible
assets under
construction
Total
Cost
Balance as at 1 Jan 2021
107,654
364,567
20,900
279,791
67,161
15,520
855,593
Additions
0
0
0
8
3
102,332
102,343
Assets generated in the
Group
0
0
0
0
0
1,931
1,931
Transfer into use
0
69,595
7,182
29,457
229
-
106,463
0
Disposals
-
57,917
-
6,517
-
7,564
-
6,662
-27
-7
-78,694
Other transfers*
0
2,697
0
485
0
-518
2,664
Balance as at 31 Dec 2021
49,737
430,342
20,518
303,079
67,366
12,795
883,837
Impairment
Balance as at 1 Jan 2021
103,936
255,792
10,454
249,041
46,070
267
665,560
Disposals
-57,917
-
3,939
-
7,564
-
6,095
-27
0
-75,542
Other transfers*
0
353
0
594
0
0
947
Depreciation/Amortisation
0
39,795
7,198
23,419
2,344
0
72,756
Balance as at 31 Dec 2021
46,019
292,001
10,088
266,959
48,387
267
663,721
Carrying amount
Balance as at 1 Jan 2021
3,718
108,775
10,446
30,750
21,091
15,253
190,033
Balance as at 31 Dec 2021
3,718
138,341
10,430
36,120
18,979
12,528
220,116
Changes in intangible assets of the Telekom Slovenije Group in 2020
in EUR thousand
Goodwill
Concessions
and licences
Cost of
obtaining
contracts
with
customers
Computer
software
Other
intangible
assets
Intangible
assets under
construction
Total
Cost
Balance as at 1 Jan 2020
107,654
359,630
16,683
265,574
66,740
14,612
830,893
Additions
0
614
0
114
269
59,954
60,951
Assets generated in the
Group
0
0
0
193
0
1,654
1,847
Transfer into use
0
36,066
7,775
16,443
244
-60,528
0
Disposals
0
-31,744
-3,558
-4,017
-89
0
-39,408
Other transfers*
0
1
0
1,484
-3
-172
1,310
Balance as at 31 Dec 2020
107,654
364,567
20,900
279,791
67,161
15,520
855,593
Impairment
Balance as at 1 Jan 2020
103,936
254,855
7,944
228,473
40,473
267
635,948
Disposals
0
-31,562
-3,558
-3,991
-89
0
-39,200
Other transfers*
0
-1
-1
1,189
-2
0
1,185
Depreciation/Amortisation
0
32,500
6,069
23,370
5,688
0
67,627
Balance as at 31 Dec 2020
103,936
255,792
10,454
249,041
46,070
267
665,560
Carrying amount
Balance as at 1 Jan 2020
3,718
104,775
8,739
37,101
26,267
14,345
194,945
Balance as at 31 Dec 2020
3,718
108,775
10,446
30,750
21,091
15,253
190,033
* Other transfers include transfers between intangible assets and property, plant and equipment, transfers among groups of assets.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
220
Significant additions in intangible assets relate primarily to the allocation of radio frequencies for the
provision of public telecommunications services to end users, which were acquired by Telekom
Slovenije at a public auction. The radio frequency spectrum in the amount of EUR 52,078 thousand
was obtained in the 700 MHz FDD band, 700 MHz SDL band, 1500 MHz band, 2100 MHz band, 3600
MHz band and 26 GHz band. Other additions relate to purchase and development of software.
As at 31 December 2021, the Group disclosed contractual commitments for intangible assets in the
amount of EUR 8,056 thousand (31 December 2020: EUR 6,057 thousand) which relate to the set-up
of computer systems and to software licences.
Telekom Slovenije
Changes in intangible assets of the company Telekom Slovenije in 2021
in EUR thousand
Goodwill
Concessions
and licences
Cost of
obtaining
contracts
with
customers
Computer
software
Other
intangible
assets
Intangible
assets
under
construction
Total
Cost
Balance as at 1 Jan 2021
3,602
224,008
20,900
267,480
18,893
14,543
549,426
Additions
0
0
0
0
0
99,109
99,109
Assets generated in the
company
0
0
0
0
0
1,564
1,564
Transfer into use
0
67,898
7,182
27,443
207
-102,730
0
Disposals
0
-3,962
-7,564
-6,289
0
-5
-17,820
Other transfers*
0
230
0
486
0
-1
714
Balance as at 31 Dec 2021
3,602
288,174
20,518
289,120
19,100
12,480
632,994
Impairment
Balance as at 1 Jan 2021
0
147,865
10,454
234,282
15,374
0
407,975
Disposals
0
-3,937
-7,564
-5,722
0
0
-17,223
Other transfers*
0
96
0
594
0
0
690
Depreciation/Amortisation
0
31,096
7,198
22,217
790
0
61,301
Balance as at 31 Dec 2021
0
175,120
10,088
251,371
16,164
0
452,743
Carrying amount
Balance as at 1 Jan 2021
3,602
76,143
10,446
33,198
3,519
14,543
141,451
Balance as at 31 Dec 2021
3,602
113,054
10,430
37,749
2,936
12,480
180,251
Changes in intangible assets of the company Telekom Slovenije in 2020
in EUR thousand
Goodwill
Concessions
and licences
Cost of
obtaining
contracts
with
customers
Computer
software
Other
intangible
assets
Intangible
assets under
construction
Total
Cost
Balance as at 1 Jan 2020
3,602
216,896
16,683
253,812
18,649
14,111
523,753
Additions
0
0
0
0
0
61,858
61,858
Assets generated in the
company
0
0
0
0
0
1,606
1,606
Transfer into use
0
38,695
7,775
16,317
244
-63,031
0
Disposals
0
-31,583
-3,558
-3,926
0
0
-39,067
Other transfers*
0
0
0
1,277
0
-1
1,276
Balance as at 31 Dec 2020
3,602
224,008
20,900
267,480
18,893
14,543
549,426
Impairment
Balance as at 1 Jan 2020
0
156,875
7,944
215,028
11,214
0
391,061
Disposals
0
-31,469
-3,558
-3,926
0
0
-38,953
Other transfers*
0
-3
-1
1,187
0
0
1,183
Depreciation/Amortisation
0
22,462
6,069
21,993
4,160
0
54,684
Balance as at 31 Dec 2020
0
147,865
10,454
234,282
15,374
0
407,975
Carrying amount
Balance as at 1 Jan 2020
3,602
60,021
8,739
38,784
7,435
14,111
132,692
Balance as at 31 Dec 2020
3,602
76,143
10,446
33,198
3,519
14,543
141,451
* Other transfers include transfers between intangible assets and property, plant and equipment, transfers among groups of
assets.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
221
The Group companies have unlimited property rights on intangible assets, which are free of
encumbrances.
As at 31 December 2021, the company disclosed contractual commitments for intangible assets in the
amount of EUR 9,280 thousand (31 December 2020: EUR 6,585 thousand) which relate to the set-up
of computer systems and to software licences.
As capitalised non-current deferred costs of development, the Group and the company disclose
internal and external project development or development activities or activities that meet the criteria
for intangible asset recognition. Key to the assessment are professional feasibility of the project, the
purpose of completion and the ability to use or sell and thus generate future economic benefits.
Development projects are strategic projects that are planned in advance and provided with sufficient
technical, financial and human resources that are key for the completion of the project, and the results
of these projects are significantly improved products, processes, systems or services before use.
Non-current deferred costs of development as at 31 December 2021 amount to EUR 11,056 thousand
for the Telekom Slovenije Group and EUR 10,310 thousand for the company Telekom Slovenije, and
mostly relate to the development of computer software. The useful lives for non-current deferred costs
of development are finite and follow the estimated useful lives of intangible assets with annual
amortization on a straight-line basis. The balance of non-current deferred costs of development is a
deductible item in the calculation of accumulated profit.
Changes in non-current deferred costs of development of the Telekom Slovenije Group in 2021
in EUR thousand
Computer
software
Own work -
development
Other
intangible
non
-
current
assets
Own work -
development
Computer
software
External -
development
Other
intangible
non-current
assets
External -
development
Ongoing
investments
Total
Cost
Balance as at 1 Jan 2021
10,477
4
34,694
318
3,488
48,981
Additions - external development
0
0
0
0
1,445
1,445
Increases - own development
0
0
0
0
368
368
Transfer from assets under
construction
469
0
4,054
0
-
4,523
0
Disposals
-845
0
-380
0
-5
-1,230
Balance as at 31 Dec 2021
10,101
4
38,368
318
773
49,564
Impairment
Balance as at 1 Jan 2021
8,807
3
24,066
80
0
32,956
Disposals
-682
0
-246
0
0
-928
Depreciation/Amortisation
1,021
1
5,442
16
0
6,480
Balance as at 31 Dec 2021
9,146
4
29,262
96
0
38,508
Carrying amount
Balance as at 1 Jan 2021
1,670
1
10,628
238
3,488
16,025
Balance as at 31 Dec 2021
955
0
9,106
222
773
11,056
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
222
Changes in non-current deferred costs of development of the Telekom Slovenije Group in 2020
in EUR thousand
Computer
software
Own work -
development
Other
intangible
non-current
assets
Own work -
development
Computer
software
External -
development
Other
intangible
non
-
current
assets
External -
development
Ongoing
investments
Total
Cost
Balance as at 1 Jan 2020
10,100
4
31,456
318
3,670
45,548
Additions - external development
0
0
0
0
3,212
3,212
Increases - own development
0
0
0
0
307
307
Transfer from assets under
construction
440
0
3,261
0
-3,701
0
Disposals
-63
0
-23
0
0
-86
Balance as at 31 Dec 2020
10,477
4
34,694
318
3,488
48,981
Impairment
Balance as at 1 Jan 2020
7,491
2
18,411
64
0
25,968
Disposals
-22
0
-22
0
0
-44
Depreciation/Amortisation
1,338
1
5,677
16
0
7,032
Balance as at 31 Dec 2020
8,807
3
24,066
80
0
32,956
Carrying amount
Balance as at 1 Jan 2020
2,609
2
13,045
254
3,670
19,580
Balance as at 31 Dec 2020
1,670
1
10,628
238
3,488
16,025
Changes in non-current deferred costs of development of the company Telekom Slovenije in 2021
in EUR thousand
Computer
software
Own work -
development
Other
intangible
non
-
current
assets
Own
work -
development
Computer
software
External -
development
Other
intangible
non-current
assets
External -
development
Ongoing
investments
Total
Cost
Balance as at 1 Jan 2021
8,639
4
33,055
318
3,190
45,206
Additions
- external development
0
0
0
0
1,340
1,340
Additions
- own development
0
0
0
0
136
136
Transfer from assets under
construction
198
0
3,950
0
-4,148
0
Disposals
-845
0
-380
0
-5
-1,230
Balance as at 31 Dec 2021
7,992
4
36,625
318
513
45,452
Impairment
Balance as at 1 Jan 2021
7,121
3
22,625
80
0
29,829
Disposals
-681
0
-246
0
0
-927
Depreciation/Amortisation
927
1
5,296
16
0
6,240
Balance as at 31 Dec 2021
7,367
4
27,675
96
0
35,142
Carrying amount
Balance as at 1 Jan 2021
1,518
1
10,430
238
3,190
15,377
Balance as at 31 Dec 2021
625
0
8,950
222
513
10,310
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
223
Changes in non-current deferred costs of development of the company Telekom Slovenije in 2020
in EUR thousand
Computer
software
Own work -
development
Other
intangible
non-current
assets
Own work -
development
Computer
software
External -
development
Other
intangible
non
-
current
assets
External -
development
Ongoing
investments
Total
Cost
Balance as at 1 Jan 2020
8,264
4
29,904
318
3,404
41,894
Additions - external development
0
0
0
0
3,105
3,105
Additions - own development
0
0
0
0
259
259
Transfer from assets under
construction
424
0
3,154
0
-3,578
0
Disposals
-49
0
-3
0
0
-52
Balance as at 31 Dec 2020
8,639
4
33,055
318
3,190
45,206
Impairment
Balance as at 1 Jan 2020
5,984
2
17,122
64
0
23,172
Disposals
-7
0
-2
0
0
-9
Depreciation/Amortisation
1,144
1
5,505
16
0
6,666
Balance as at 31 Dec 2020
7,121
3
22,625
80
0
29,829
Carrying amount
Balance as at 1 Jan 2020
2,280
2
12,782
254
3,404
18,722
Balance as at 31 Dec 2020
1,518
1
10,430
238
3,190
15,377
16.
Property, plant and equipment
Significant additions in property, plant and equipment in use refer in 2021 mostly to the construction
and upgrade of cable network and obtainment of cable lines, telecommunications and other
equipment. The item of other equipment comprises modems, set-up boxes, other equipment at clients,
furniture, cars and other equipment.
Fixed assets generated in the Group and the Company relate to services rendered for the Group and
the Company and mostly refer to the set-up of base stations, air-conditioners, electrical power devices
and terminal equipment at clients.
Borrowing costs that may be directly attributed to the acquisition, construction, or production of a
qualifying asset are included in the cost of that asset. Borrowing costs related to the acquisition and
construction of the assets are capitalised if they are related to the acquisition of a material asset, the
construction of which would require more than 12 months. In 2021, more than 90% of investments
were completed within less than 12 months, also in the cable network construction segment, as these
were mainly upgrades to existing networks. In 2021, the Group utilised a purpose-specific loan for the
acquisition or construction of optic network assets. In 2021, the Group classified the costs of taking out
non-purpose loans as costs for the period; the same applies to the costs of taking out a special-
purpose loan for the construction of the optical network being that the amount of interest from the
drawing of the loan is immaterial.
Telekom Slovenije Group
Contractual commitments for property, plant and equipment as at 31 December 2021 amounted to
EUR 5,159 thousand (31 Dec 2020: EUR 5,273 thousand) and mostly refer to the set-up of
telecommunications network.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
224
Changes in property, plant and equipment of the Telekom Slovenije Group in 2021
in EUR thousand
Land,
buildings,
and
cable
lines
Cable
networks
Telephone
exchanges
Mobile
network
equipment
Other
equipment
Assets
under
construction
Other
Total
Cost
Balance as at 1 Jan 2021
479,628
1,166,201
105,528
326,580
382,369
36,402
111
2,496,819
Difference from the
translation to the
presentation currency
0
5
0
0
11
0
0
16
Additions
128
329
0
0
1,516
79,536
157
81,666
Fixed assets generated in
the Group
0
0
0
0
0
15,889
0
15,889
Transfer into use
20,166
25,132
1,835
11,674
32,219
-91,026
0
0
Disposals
-
9,844
-
1,375
-
17,620
-
22,907
-
30,779
-
495
0
-
83,020
Other transfers*
4
0
-911
138
54
517
0
-198
Balance as at 31 Dec 2021
490,082
1,190,292
88,832
315,485
385,390
40,823
268
2,511,172
Impairment
Balance as at 1 Jan 2021
206,279
930,137
97,239
275,918
311,212
11,390
0
1,832,175
Difference from the
translation to the
presentation currency
0
2
0
0
2
0
0
4
Additions
3
0
0
0
6
0
0
9
Disposals
-
2,369
-
1,360
-
17,603
-
22,783
-
26,957
0
0
-
71,072
Depreciation/Amortisation
12,833
22,581
3,694
13,690
30,889
0
0
83,687
Other transfers*
1
0
-717
0
26
0
0
-690
Balance as at 31 Dec 2021
216,747
951,360
82,613
266,825
315,178
11,390
0
1,844,113
Carrying amount
Balance as at 1 Jan 2021
273,349
236,064
8,289
50,662
71,157
25,012
111
664,644
Balance as at 31 Dec 2021
273,335
238,932
6,219
48,660
70,212
29,433
268
667,059
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
225
Changes in property, plant and equipment of the Telekom Slovenije Group in 2020
in EUR thousand
Land,
buildings,
and
cable
lines
Cable
networks
Telephone
exchanges
Mobile
network
equipment
Other
equipment
Assets
under
construction
Other
Total
Cost
Balance as at 1 Jan 2020
466,622
1,130,374
111,950
506,633
407,157
34,727
23
2,657,486
Difference from the
translation to the
presentation currency
0
-7
0
0
-3
-23
0
-33
Additions
20
3,066
4
1,377
4,138
74,916
0
83,521
Fixed assets generated in
the Group
0
47
0
39
0
15,909
0
15,995
Transfer into use
12,912
33,471
1,649
9,462
29,114
-
86,607
0
1
Disposals
-
327
-
4,432
-
8,075
-
186,735
-
57,997
-26
0
-257,592
Other transfers*
401
3,682
0
-4,196
-40
-2,494
88
-2,559
Balance as at 31 Dec 2020
479,628
1,166,201
105,528
326,580
382,369
36,402
111
2,496,819
Impairment
Balance as at 1 Jan 2020
193,284
911,852
101,077
447,344
336,156
11,390
0
2,001,103
Difference from the
translation to the
presentation currency
0
-22
0
4
-
728
0
0
-
746
Additions
0
0
0
20
16
0
0
36
Disposals
-
275
-
4,347
-
8,057
-
186,611
-
54,521
0
0
-253,811
Depreciation/Amortisation
12,950
22,634
4,219
16,922
30,380
0
0
87,105
Other transfers*
320
20
0
-1,761
-91
0
0
-1,512
Balance as at 31 Dec 2020
206,279
930,137
97,239
275,918
311,212
11,390
0
1,832,175
Carrying amount
Balance as at 1 Jan 2020
273,338
218,522
10,873
59,289
71,001
23,337
23
656,383
Balance as at 31 Dec 2020
273,349
236,064
8,289
50,662
71,157
25,012
111
664,644
* Other transfers include transfers between intangible assets and property, plant and equipment, transfers among groups of
assets.
Of total assets, the Telekom Slovenije Group let assets in the (carrying) amount:
In 2021
in EUR thousand
Land,
buildings,
and cable
lines
Cable
networks
Telephone
exchanges
Mobile
network
equipment
Other
equipment
Assets
under
construction
Other
Total
Assets let out under
operating lease
8,483
0
0
0
217
0
0
8,701
In 2020
in EUR thousand
Land,
buildings,
and cable
lines
Cable
networks
Telephone
exchanges
Mobile
network
equipment
Other
equipment
Assets
under
construction
Other
Total
Assets let out under
operating lease
4,491
301
0
0
321
0
0
5,113
Telekom Slovenije
As at 31 December 2021, the Company disclosed contractual commitments for property, plant and
equipment in the amount of EUR 16,526 thousand (31 Dec 2020: EUR 22,862 thousand), which relate
to network construction, purchase of telecommunications equipment, acquisition and construction of
real estate, and purchase of hardware and other equipment.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
226
Changes in property, plant and equipment of the company Telekom Slovenije in 2021
in EUR thousand
Land,
buildings,
and cable
lines
Cable
networks
Telephone
exchanges
Mobile
network
equipment
Other
equipment
Assets
under
construction
Total
Cost
Balance as at 1 Jan 2021
450,523
1,092,744
104,352
213,758
363,176
40,956
2,265,509
Additions
0
0
0
0
0
79,549
79,549
Fixed assets generated in the
Company
0
0
0
0
0
4,547
4,547
Transfer into use
19,779
22,422
1,835
8,183
28,729
-80,948
0
Disposals
-9,844
0
-17,620
-17,124
-27,037
-24
-71,649
Other transfers*
4
0
-911
138
54
0
-715
Balance as at 31 Dec 2021
460,462
1,115,166
87,656
204,955
364,922
44,080
2,277,241
Impairment
Balance as at 1 Jan 2021
198,208
886,373
96,024
185,733
298,639
0
1,664,977
Additions
3
0
0
0
0
0
3
Disposals
-2,369
0
-17,603
-17,065
-24,231
0
-61,268
Depreciation/Amortisation
12,281
18,230
3,692
8,473
26,830
0
69,506
Other transfers*
1
0
-716
0
27
0
-688
Balance as at 31 Dec 2021
208,124
904,603
81,397
177,141
301,265
0
1,672,530
Carrying amount
Balance as at 1 Jan 2021
252,315
206,371
8,328
28,025
64,537
40,956
600,532
Balance as at 31 Dec 2021
252,338
210,563
6,259
27,814
63,657
44,080
604,711
Changes in property, plant and equipment of the company Telekom Slovenije in 2020
in EUR thousand
Land,
buildings,
and cable
lines
Cable
networks
Telephone
exchanges
Mobile
network
equipment
Other
equipment
Assets
under
construction
Total
Cost
Balance as at 1 Jan 2020
438,151
1,059,317
110,774
391,394
385,997
37,112
2,422,745
Additions
0
0
4
0
2,049
83,990
86,043
Fixed assets generated in the Company
0
0
0
0
0
5,024
5,024
Transfer into use
12,882
33,471
1,649
9,461
27,685
-85,148
0
Disposals
-276
-42
-8,075
-185,840
-52,514
-22
-246,769
Other transfers*
-234
-2
0
-1,257
-41
0
-1,534
Balance as at 31 Dec 2020
450,523
1,092,744
104,352
213,758
363,176
40,956
2,265,509
Impairment
Balance as at 1 Jan 2020
186,304
868,180
99,863
363,312
320,969
0
1,838,628
Additions
0
0
0
20
14
0
34
Disposals
-236
-39
-8,057
-185,775
-49,344
0
-243,451
Depreciation/Amortisation
12,393
18,232
4,218
9,352
27,014
0
71,209
Other transfers*
-253
0
0
-1,176
-14
0
-1,443
Balance as at 31 Dec 2020
198,208
886,373
96,024
185,733
298,639
0
1,664,977
Carrying amount
Balance as at 1 Jan 2020
251,847
191,137
10,911
28,082
65,028
37,112
584,117
Balance as at 31 Dec 2020
252,315
206,371
8,328
28,025
64,537
40,956
600,532
* Other transfers include transfers between intangible assets and property, plant and equipment, transfers among groups of
assets.
The Company and the Group have unlimited property rights on property, plant and equipment, which
are free of encumbrances.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
227
Of total assets the company Telekom Slovenije let assets in the (carrying) amount:
In 2021
in EUR thousand
Land,
buildings,
and cable
lines
Cable
networks
Telephone
exchanges
Mobile
network
equipment
Other
equipment
Assets
under
construction
Other
Total
Assets let out under
operating lease
12,448
0
0
0
70
0
0
12,518
In 2020
in EUR thousand
Land,
buildings,
and cable
lines
Cable
networks
Telephone
exchanges
Mobile
network
equipment
Other
equipment
Assets
under
construction
Other
Total
Assets let out under
operating lease
10,041
404
0
0
36
0
0
10,482
17.
Right-of-use assets
The Group and the Company have concluded lease contracts for various assets, such as base
stations, premises, lines, vehicles and other. Typically, the term of lease contracts is 10–15 years.
Changes in right-of-use assets of the Telekom Slovenije Group in 2021
in EUR thousand
Base
stations -
easement
and lease
Technological
premises -
easement and
lease
Lease of
business
premises
and land
Vehicles
Lease
of
lines
Other
Total
Cost
Balance as at 1 Jan 2021
60,304
8,421
8,877
2,587
18,826
2,354
101,369
Difference from the translation to the
presentation currency
0
0
9
0
0
0
9
Contract modifications
1,193
84
439
-1
-8
671
2,378
Transfer to use
- new contracts
4,307
383
16
173
1,807
143
6,829
Disposals
-
185
-
315
-94
-
502
-68
-9
-
1,173
Other transfers
0
-66
-4
0
0
687
617
Balance as at 31 Dec 2021
65,619
8,507
9,243
2,257
20,557
3,846
110,029
Impairment
Balance as at 1 Jan 2021
14,272
1,765
3,123
1,185
3,053
551
23,949
Disposals
-89
-84
-48
-
478
-3
0
-
702
Depreciation/Amortisation
7,318
881
1,568
603
1,689
491
12,550
Other transfers
0
-29
-2
0
0
293
262
Balance as at 31 Dec 2021
21,501
2,533
4,641
1,310
4,739
1,335
36,059
Carrying amount
Balance as at 1 Jan 2021
46,032
6,656
5,754
1,402
15,773
1,803
77,420
Balance as at 31 Dec 2021
44,118
5,974
4,602
947
15,818
2,511
73,970
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
228
Changes in right-of-use assets of the Telekom Slovenije Group in 2020
in EUR thousand
Base
stations -
easement
and lease
Technological
premises -
easement and
lease
Lease of
business
premises
and land
Vehicles
Lease of
lines
Other
Total
Cost
Balance as at 1 Jan 2020
52,656
7,493
8,236
2,541
18,492
2,401
91,819
Contract modifications
1,583
445
403
-167
-40
97
2,321
Transfer to use - new contracts
6,282
690
614
755
1,022
253
9,616
Disposals
-217
-207
-376
-585
-648
-464
-2,497
Other transfers
0
0
0
43
0
67
110
Balance as at 31 Dec 2020
60,304
8,421
8,877
2,587
18,826
2,354
101,369
Impairment
Balance as at 1 Jan 2020
6,999
863
1,592
925
1,568
572
12,519
Contract modifications
0
0
16
-68
0
-297
-349
Disposals
-83
-35
-58
-535
-121
-464
-1,296
Depreciation/Amortisation
7,356
937
1,587
846
1,592
520
12,838
Other transfers
0
0
-14
17
14
220
237
Balance as at 31 Dec 2020
14,272
1,765
3,123
1,185
3,053
551
23,949
Carrying amount
Balance as at 1 Jan 2020
45,657
6,630
6,644
1,616
16,924
1,829
79,300
Balance as at 31 Dec 2020
46,032
6,656
5,754
1,402
15,773
1,803
77,420
Changes in right-of-use assets of Telekom Slovenije in 2021
in EUR thousand
Base
stations -
easement
and lease
Technological
premises -
easement and
lease
Lease of
business
premises
and land
Vehicles
Lease
of
lines
Other
Total
Cost
Balance as at 1 Jan 2021
54,081
7,824
3,884
2,352
39,285
661
108,088
Contract modifications
368
22
-10
-5
-
861
-16
-
502
Transfer to use - new contracts
4,307
99
0
173
1,807
0
6,385
Disposals
-116
-
267
-89
-
466
-68
0
-
1,006
Balance as at 31 Dec 2021
58,640
7,678
3,785
2,054
40,163
645
112,965
Impairment
Balance as at 1 Jan 2021
11,208
1,491
1,128
1,055
6,543
156
21,581
Disposals
-37
-43
-44
-
442
-3
0
-
569
Depreciation/Amortisation
5,762
740
554
550
3,514
165
11,286
Balance as at 31 Dec 2021
16,933
2,188
1,638
1,163
10,054
321
32,298
Carrying amount
Balance as at 1 Jan 2021
42,872
6,333
2,756
1,298
32,742
505
86,506
Balance as at 31 Dec 2021
41,706
5,490
2,147
891
30,109
324
80,667
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
229
Changes in right-of-use assets of Telekom Slovenije in 2020
in EUR thousand
Base
stations -
easement
and lease
Technological
premises -
easement and
lease
Lease of
business
premises
and land
Vehicles
Lease of
lines
Other
Total
Cost
Balance as at 1 Jan 2020
46,491
6,900
3,250
2,080
38,335
333
97,389
Contract modifications
1,501
694
273
-17
159
446
3,056
Transfer to use - new contracts
6,282
401
614
724
1,022
90
9,134
Disposals
-193
-171
-253
-435
-230
-209
-1,491
Balance as at 31 Dec 2020
54,081
7,824
3,884
2,352
39,285
661
108,088
Impairment
Balance as at 1 Jan 2020
5,474
728
576
767
3,226
217
10,987
Disposals
-71
-21
-28
-423
-79
-209
-830
Depreciation/Amortisation
5,805
784
580
711
3,396
148
11,424
Balance as at 31 Dec 2020
11,208
1,491
1,128
1,055
6,543
156
21,581
Carrying amount
Balance as at 1 Jan 2020
41,017
6,172
2,674
1,314
35,108
117
86,402
Balance as at 31 Dec 2020
42,872
6,333
2,756
1,298
32,742
505
86,506
The amounts recognised in the statement of profit or loss
in EUR thousand
Telekom Slovenije Group
Telekom Slovenije
31 Dec 2021
31 Dec 2020
31 Dec 2021
31 Dec 2020
Depreciation costs of the right-of-use assets
12,550
12,838
11,286
11,424
Interest expenses from lease liabilities
2,214
2,348
2,227
2,352
Expenses related to variable lease payments
not included in the measuring of lease liabilities
154
159
35
41
Total
14,918
15,345
13,548
13,817
18.
Investments in subsidiaries
Telekom Slovenije holds a 100% interest in the following subsidiaries, the value of which, as at 31
December 2021, amounts to:
in EUR thousand
31 Dec 2020
Additions
Impairment
31 Dec 2021
GVO
5,758
0
0
5,758
Avtenta
1,323
0
0
1,323
TSmedia
2,485
1,500
-225
3,760
IPKO
20,730
0
0
20,730
Soline
147
0
0
147
SIOL Zagreb
501
0
0
501
SIOL Podgorica
2,620
0
0
2,620
SIOL Sarajevo
1,710
0
0
1,710
SIOL Skopje
1,005
0
0
1,005
SIOL Beograd
100
0
0
100
TSinpo
419
0
0
419
Institution Ustanova Srčni sklad
3
0
0
3
SIOL Prishtina
200
0
0
200
Investments in subsidiaries
37,001
1,500
-225
38,276
Telekom Slovenije verified the existence of indicators of impairment and assessed the fair value of the
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
230
companies TSmedia and TSinpo, d.o.o.
TSmedia
The recoverable amount of the 100% share capital in TSmedia for the purpose of financial reporting
equals EUR 3,760 thousand. During the value assessment, the present value method of expected free
cash flows for a five-year period was used, excluding indebtedness. The discount rate applied in the
projection was 9.6% and the assessed long-term growth rate was 2.00%.
Based on the valuation, the Company impaired the investment in TSmedia in the amount of EUR 225
thousand (Note 12).
The appraisal of TSinpo showed no need for impairment of the investment, as the recoverable
amount exceeded the book value.
19.
Other investments
Non-current investments
Telekom Slovenije Group
Telekom Slovenije
in EUR thousand
31 Dec 2021
31 Dec 2020
31 Dec 2021
31 Dec 2020
Investments in other shares and interests
3,241
2,965
3,241
2,963
Loans to companies
0
0
53,950
60,885
- of which to companies in the Group
0
0
53,950
60,885
Loans to employees
44
103
44
103
Other non-current financial assets
7
0
0
0
Total non-current investments
3,292
3,068
57,235
63,951
Other investments in shares and interests are classified as investments measured at fair value through
other comprehensive income. Of the total value of investments, EUR 2,305 thousand (31 Dec 2020:
EUR 1,854 thousand) relates to investments which are listed on the stock exchange. Investments are
not pledged as collateral and are free of encumbrances.
At the end of 2021, the Group checked for indications of impairment of a more significant investment,
namely the 11.94% share capital in the company ABCITI, Družba za investiranje, d.o.o. A certified
business value appraiser carried out a valuation of the companies. On the basis of the obtained
valuation, the Group impaired the investment in the amount of EUR 173 thousand. The effects of
impairments are disclosed in the statement of other comprehensive income as fair value reserve for
financial instruments (note 29).
Current investments
Telekom Slovenije Group
Telekom Slovenije
in EUR thousand
31 Dec 2021
31 Dec 2020
31 Dec 2021
31 Dec 2020
Current loans granted to companies
0
0
12,139
17,353
* of which to companies in the Group
0
0
12,139
17,353
Loans to employees
38
61
38
61
Bank deposits
702
451
0
0
Total current investments
740
512
12,177
17,414
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
231
Loans granted
Telekom Slovenije Group
Telekom Slovenije
in EUR thousand
31 Dec 2021
31 Dec 2020
31 Dec 2021
31 Dec 2020
Non-current loans granted
44
103
53,994
60,988
Loans granted
0
0
53,950
60,885
Loans to employees
44
103
44
103
Current loans granted
38
61
12,177
17,414
Non-current loan portion falling due in 12
months - loans granted
0
0
10,985
15,270
Non-current loan portion falling due in 12
months - loans to employees
38
61
38
61
Current loans granted and interest
0
0
1,154
2,083
Closing balance – loans granted
82
164
66,171
78,402
The maturity of current and non-current loans as well as other data are disclosed in Note 44.
The interest rate for loans granted to employees ranges between 4.08% and 6.23%.
At Telekom Slovenije, non-current loans refer entirely to loans to subsidiaries. The interest rate for
loans granted to subsidiaries ranges between 0.513% and 3.032%. For more details see Note 44.
20.
Contract assets
Telekom Slovenije Group
Telekom Slovenije
in EUR thousand
31 Dec 2021
31 Dec 2020
31 Dec 2021
31 Dec 2020
Contract assets
2,854
2,668
2,469
2,337
Total contract assets
2,854
2,668
2,469
2,337
Non-current contract assets arise if a group performs a transfer of goods or services to a customer
before the consideration is paid. Buyers of telecommunication goods and services may commit to a
certain subscription period (e.g. 24 months) in order to become eligible for discounts on goods and/or
services. Due to the reclassification of revenue based on the relative standalone price, the revenues
from the sale of goods are recognised sooner, giving rise to contract assets.
Non-current contract assets are impaired in the event that the buyer terminates the contract before
expiry. In this case, the contract assets are de-recognised, and impairment is recognised. In 2021, the
Group impaired contract assets in the amount of EUR 682 thousand (in 2020: EUR 795 thousand),
and the company Telekom Slovenije EUR 677 thousand (in 2020: EUR 769 thousand).
21.
Deferred costs
Telekom Slovenije Group
Telekom Slovenije
in EUR thousand
31 Dec 2021
31 Dec 2020
31 Dec 2021
31 Dec 2020
Prepaid leases
38
194
38
194
Other non-current assets
1,021
1,244
1,571
885
Total deferred costs
1,058
1,438
1,608
1,078
Other non-current assets represent the balance of non-current deferred costs of license maintenance
and similar costs.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
232
22.
Investment property
Telekom Slovenije Group
Telekom Slovenije
in EUR thousand
Land
Buildings
Total
Land
Buildings
Total
Cost
Balance as at 1 Jan 2021
1,924
2,149
4,073
4,896
2,149
7,045
Additions
62
4,156
4,218
62
4,282
4,344
Balance as at 31 Dec 2021
1,986
6,305
8,291
4,958
6,431
11,389
Impairment
Balance as at 1 Jan 2021
1,689
1,126
2,815
1,689
1,126
2,815
Additions
0
850
850
0
850
850
Depreciation/Amortisation
0
81
81
0
83
83
Balance as at 31 Dec 2021
1,689
2,057
3,746
1,689
2,059
3,748
Carrying amount
Balance as at 1 Jan 2021
235
1,023
1,258
3,207
1,023
4,230
Balance as at 31 Dec 2021
297
4,248
4,545
3,269
4,372
7,641
Telekom Slovenije Group
Telekom Slovenije
in EUR thousand
Land
Buildings
Total
Land
Buildings
Total
Cost
Balance as at 1 Jan 2020
1,893
1,914
3,807
4,865
1,914
6,779
Additions
31
235
266
31
235
266
Balance as at 31 Dec 2020
1,924
2,149
4,073
4,896
2,149
7,045
Impairment
Balance as at 1 Jan 2020
1,689
1,088
2,777
1,689
1,088
2,777
Additions
0
2
2
0
2
2
Depreciation/Amortisation
0
36
36
0
36
36
Balance as at 31 Dec 2020
1,689
1,126
2,815
1,689
1,126
2,815
Carrying amount
Balance as at 1 Jan 2020
204
826
1,030
3,176
826
4,002
Balance as at 31 Dec 2020
235
1,023
1,258
3,207
1,023
4,230
The Group and the Company carry investment property at cost less accumulated depreciation and
impairment losses. Fair value of investment property is presented in Note 39.
As at 31 December 2021, Telekom Slovenije Group disclosed land, landscaping and the Tisa Hotel
building on Pohorje in the amount of EUR 980 thousand (EUR 1,016 thousand in 2020) among its
investment property, as well as land and the building Rakovnik in the amount of EUR 219 thousand
(EUR 242 thousand in 2020). In 2021, the Group added land and a building on Vilharjeva ulica in
Ljubljana to its investment property, its total investment property thus amounting to EUR 3,346
thousand.
Among its investment property, Telekom Slovenije additionally discloses land and a building at the
Sečovlje saltpans amounting to EUR 3,096 thousand and, as at 31 December 2021, holds investment
property in the total amount of EUR 7,641 thousand.
Revenue generated on investment property in 2021 is recognised in the Group’s profit or loss in the
amount of EUR 360 thousand (2020: EUR 283 thousand).
The Group does not have any limited title to investment property, nor are investments subject to
encumbrance.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
233
23.
Assets held for sale
As at 31 December 2019, assets held for sale include the value of land and buildings that the Group
companies will no longer use for business purposes and which the companies’ managements decided
to sell within the next 12 months.
Telekom Slovenije Group
Telekom Slovenije
in EUR thousand
Assets held for sale
Assets held for sale
Balance as at 1 Jan 2020
500
500
Additions
12
12
Sale
-12
-12
Transfer to property, plant and equipment
-286
-286
Balance as at 31 Dec 2020
214
214
Additions
4,071
4,071
Sale
-3,486
-3,486
Balance as at 31 Dec 2021
799
799
In 2021, the Group transferred a part of the land and the building on Vilharjeva ulica in Ljubljana from
“property, plant and equipment” to assets held for sale, and also sold them. The Group thus generated
EUR 1,877 thousand in gains on sale, which were recognised in the statement of profit or loss under
Gains on disposal of property, plant and equipment (Note 8).
24.
Inventories
Telekom Slovenije Group
Telekom Slovenije
in EUR thousand
31 Dec 2021
31 Dec 2020
31 Dec 2021
31 Dec 2020
Material
11,664
13,663
10,044
11,362
Products
527
764
0
0
Merchandise
10,287
11,748
9,559
10,449
Total inventories
22,478
26,175
19,603
21,811
In 2021, the Telekom Slovenije Group impaired and wrote off EUR 2,192 thousand of inventories (in
2020: EUR 1,231 thousand).
In 2021, Telekom Slovenije wrote off or impaired EUR 2,161 thousand worth of inventories (in 2020:
EUR 1,000 thousand).
25.
Trade and other receivables
Under non-current trade receivables, the Group and the Company disclose receivables from the sale
of goods with maturity of over one year. Impairments of receivables refer to expected credit losses.
Maturity analysis of receivables is presented in Note 44.
Telekom Slovenije Group
31 Dec 2021
31 Dec 2020
in EUR thousand
Gross amount
Impairment
Net amount
Net amount
Non-current trade receivables
18,387
-87
18,300
17,081
Total trade and other receivables
18,387
-87
18,300
17,081
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
234
Current trade receivables
31 Dec 2021
31 Dec 2020
in EUR thousand
Gross
amount
Impairment
Net amount
Net amount
Trade receivables
136,135
-11,651
124,484
121,195
Trade receivables due from foreign operators
13,771
-1,751
12,020
16,925
Trade receivables due from domestic operators
15,440
-3,447
11,993
18,651
Total trade receivables
165,346
-16,849
148,497
156,771
Paid advances
824
0
824
646
VAT and other tax receivables
5,536
0
5,536
4,232
Income tax receivables
205
0
207
94
Other receivables
1,095
-8
1,087
1,193
Total other receivables
7,663
-8
7,655
6,165
Total trade and other receivables
173,009
-
16,857
156,152
162,936
Trade receivables do not bear interest.
Changes in impairment of receivables
in EUR thousand
2021
2020
Balance as at 1 Jan
-15,968
-18,344
Changes in Group
0
91
Impairments
-5,373
-6,520
Reversal of impairments
3,346
4,502
Write-offs
1,051
4,303
Balance as at 31 Dec
-16,944
-15,968
Telekom Slovenije
31 Dec 2021
31 Dec 2020
in EUR thousand
Gross amount
Impairment
Net amount
Net amount
Non-current trade receivables
18,381
-87
18,294
17,639
Total trade and other receivables
18,381
-87
18,294
17,639
Current trade receivables
31 Dec 2021
31 Dec 2020
in EUR thousand
Gross amount
Impairment
Net amount
Net amount
Trade receivables
124,325
-7,817
116,508
114,865
Receivables due from foreign operators
13,873
-1,752
12,121
17,680
Receivables due from domestic operators
16,918
-3,455
13,463
21,143
Total trade receivables
155,116
-13,024
142,092
153,688
Paid advances and warranties
645
0
645
460
VAT and other tax receivables
4,739
0
4,739
4,391
Income tax receivables
116
0
116
0
Other receivables
786
0
786
821
Total other receivables
6,286
0
6,286
5,672
Total trade and other receivables
161,402
-13,024
148,378
159,360
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
235
Changes in impairment of receivables
in EUR thousand
2021
2020
Balance as at 1 Jan
-12,532
-11,985
Impairments
-5,244
-6,090
Reversal of impairments
3,220
3,975
Write-offs
1,445
1,568
Balance as at 31 Dec
-13,111
-12,532
Further information on the structure of receivables according to their maturity is disclosed in Note 44.
26.
Contract assets
Telekom Slovenije Group
Telekom Slovenije
in EUR thousand
31 Dec 2021
31 Dec 2020
31 Dec 2021
31 Dec 2020
Contract assets from mobile and fixed-line
segment
6,867
8,312
6,868
8,312
Other contract assets
10,396
15,215
10,299
14,951
Total contract assets
17,263
23,527
17,167
23,263
Current contract assets arise mainly from the sale of telecommunication services and goods, where
customer contracts comprise the subscription fee and a subsidised service or goods and where
customers commit to a 12-month contract period, and accrued revenue - roaming.
27.
Deferred costs
Telekom Slovenije Group
Telekom Slovenije
in EUR thousand
31 Dec 2021
31 Dec 2020
31 Dec 2021
31 Dec 2020
Deferred costs
3,766
4,250
3,150
3,764
Total deferred costs
3,766
4,250
3,150
3,764
Current deferred costs include mostly deferred costs in connection with calculation of international
services.
28.
Cash and cash equivalents
Telekom Slovenije Group
Telekom Slovenije
in EUR thousand
31 Dec 2021
31 Dec 2020
31 Dec 2021
31 Dec 2020
Cash on hand and bank balances
15,935
8,167
3,754
2,086
Total cash and cash equivalents
15,935
8,167
3,754
2,086
To balance short-term liquidity, the Group and the Company have credit lines or revolving loans with
banks in the total amount of EUR 100 million and a transaction account overdraft in the amount of
EUR 5 million. Credit lines are outlined by the Group in Note 33.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
236
29. Equity and reserves
Authorised, issued and fully paid-up share capital amounts to EUR 272,721 thousand and is divided
into 6,535,478 ordinary registered no-par value shares. Each ordinary no-par value share has the
same share and attributable amount in the share capital.
Ownership structure
31 Dec 2021
31 Dec 2020
Shareholder
Number of shares
Interest in %
Number of shares
Interest in %
Republic of Slovenia
4,087,569
62.54%
4,087,569
62.54%
Individual
shareholders
(domestic and
foreign)
896,517
13.72%
897,734
13.74%
Foreign legal entities
422,864
6.47%
417,069
6.38%
Kapitalska družba
d.d.
365,175
5.59%
365,175
5.59%
Slovenian Sovereign
Holding (Slovenski
državni holding d.d.)
(SSH – SDH)
277,839
4.25%
277,839
4.25%
Domestic legal
entities
255,688
3.91%
254,874
3.90%
Domestic financial
companies and
funds
199,826
3.06%
205,218
3.14%
Treasury shares
30,000
0.46%
30,000
0.46%
Total
6,535,478
100.00%
6,535,478
100.00%
The balances and changes in equity items are presented in the statement of changes in equity. There
were no changes in the number of issued shares in 2021.
The share premium may be used under the conditions and for the purpose set by the law. As at 31
December 2021, Telekom Slovenije's share premium amounted to EUR 180,954 thousand, of which
EUR 126,135 thousand of share premium arises from the company’s ownership transformation
process. Share premium in the amount of EUR 54.821 thousand in substance represent revaluation
surpluses. Share premium did not change in 2021.
Legal reserves are formed in such amount that the sum of legal reserves and the share premium
equals 20% of share capital.
In accordance with the Companies Act, the share premium and legal reserves can in their excess
amount be used to increase share capital from a company's assets and to cover losses brought
forward, if profit reserves are not simultaneously used for pay-out of profits to shareholders.
As at 31 December 2021, Telekom Slovenije had 30,000 treasury shares, representing 0.46% of all
shares. The number of treasury shares has not changed since their acquisition in 2003. The value of
treasury shares in the amount of EUR 3,671 thousand is disclosed as equity’s deductible item and is
disclosed at the cost value of the purchased treasury shares. Reserves for treasury shares are formed
in the same amount in compliance with legal requirements.
The Group may acquire treasury shares for the purposes defined in the provisions of Article 247 of the
Companies Act (ZGD-1).
Statutory reserves are used for forming the treasury share reserve, for covering losses, for share
capital increases, and for covering diverse trade and other risks. These reserves can be used in
accordance with the Articles of Association, namely for the share capital increase, for the coverage of
current and brought forward loss if this loss cannot be settled by means of any other sources, and for
creating treasury shares if no other funds are available.
When compiling the Annual Report, the Group can form other profit reserves up to 50% of net profit
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
237
for the year, less amounts used for statutory or legal reserves. Other profit reserves can be used for
any purpose in accordance with the law, the Articles of Association, business policy and resolutions
adopted by the General Meeting of Shareholders.
Retained earnings
Retained earnings include brought-forward retained net earnings from previous years and net
earnings for the current year.
Based on the resolution adopted by the General Meeting of Shareholders on 18 June 2021, the
accumulated profit for 2020 in the amount of EUR 34,981 thousand was used for dividend pay-out in
the amount of EUR 29,275 thousand, i.e., EUR 4.50 gross per share (in 2020, dividends for the year
2019 were paid out in the amount of EUR 22,769 thousand or EUR 3.50 per share). The remaining
part of the accumulated profit in the amount of EUR 5,706 thousand was not allocated and increases
the retained net earnings of previous years.
Dividends were paid to the shareholders registered in the share register on the cut-off date of 2 August
2021 as stockholders with the right to dividends, and to other parties entitled to dividends.
Determination of accumulated profit of Telekom Slovenije for 2021
in EUR thousand
Net profit/loss for 2021
34,370,988.72
Retained net profit/loss
21,144,258.24
Decrease in non-current deferred development costs
-10,310,292.67
Total
45,204,954.29
Recommended dividend pay-out for 2021
in EUR
Dividends per ordinary share
3.50
Fair value reserve for financial instruments
Fair value reserve for financial instruments includes the change in fair value of investments in equity
instruments, measured at fair value through other comprehensive income, and the change in fair value
of hedging financial instruments.
Fair value reserve for financial instruments is shown in the statement of other comprehensive income.
At the end of 2021, the Group checked for indications of impairment of investments in ABCITI, Družba
za investiranje, d.o.o. The effects of valuations and impairments are disclosed in Note 19.
Reserves for actuarial deficits and surpluses
Reserve for actuarial deficits and surpluses includes changes in the present value of payables to
employees due to changed actuarial assumptions and on the basis of experience-based adjustments.
The changes in actuarial deficits and surpluses are shown in the statement of changes in equity.
30.
Contract liabilities
Telekom Slovenije Group
Telekom Slovenije
in EUR thousand
31 Dec 2021
31 Dec 2020
31 Dec 2021
31 Dec 2020
Non-current contract liabilities
278
451
191
318
Contract liabilities - leases
13,480
13,887
13,480
13,886
Contract liabilities - other
520
617
81
97
Total contract liabilities
14,278
14,955
13,752
14,301
Non-current contract liabilities represent the Group’s obligation to either transfer the goods or services
to the customer in the future or to refund the consideration received. In both cases, the obligation is
measured as the amount of the consideration received from the customer.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
238
31. Provisions
Changes in provisions of the Telekom Slovenije Group in 2021
in EUR thousand
31 Dec
2020
Transfer
from
current
portion
Utilisated
Reversal
Formation
Changes
in
discount
rates
31 Dec
2021
Provisions for probable
liabilities resulting from
legal claims
251
0
0
-1
0
0
250
Provisions for jubilee
rewards
2,351
0
-167
-5
65
-87
2,157
Provisions for severance
pays upon retirement
12,052
0
-63
-
964
651
55
11,731
Provisions for estimated
costs of the removal of
receiving
-transmitting
stations
4,232
0
-24
-15
74
-311
3,956
Other provisions
1,248
3,988
-528
-
638
631
0
4,701
Provisions for
restructuring
273
0
-273
0
268
0
268
Total provisions
20,407
3,988
-
1,055
-
1,626
1,689
-343
23,063
Changes in provisions of the Telekom Slovenije Group in 2020
in EUR thousand
31 Dec
2019
Increase in
business
combinations
Drawing
Reversal
Formation
Changes in
discount
rates
31 Dec
2020
Provisions for probable
liabilities resulting from
legal claims
4,666
0
0
-
4,536
119
3
251
Provisions for severance
pays upon retirement
10,920
-66
-14
-182
1,283
111
12,052
Provisions for jubilee
rewards
2,298
-22
-140
-1
90
126
2,351
Provisions for estimated
costs of the removal of
receiving
-
transmitting
stations
3,868
0
-13
-5
119
263
4,232
Other provisions
1,438
0
-649
-47
505
0
1,248
Provisions for
restructuring
103
0
-103
0
273
0
273
Total provisions
23,293
-88
-919
-
4,771
2,389
502
20,407
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
239
Changes in provisions of Telekom Slovenije in 2021
in EUR
thousand
31 Dec 2020
Transfer
from/to
current
portion
Drawing
Reversal
Formation
Changes
in
discount
rates
31 Dec
2021
Provisions for
jubilee rewards
1,897
0
-139
0
33
-72
1,719
Provisions for
severance pays
upon retirement
10,050
0
-45
-869
426
46
9,608
Provisions for
estimated costs
of the removal
of receiving
-
transmitting
stations
4,232
0
-24
-15
74
-311
3,956
Other provisions
5
4,274
-28
0
27
0
4,278
Total
provisions
16,184
4,274
-236
-884
560
-337
19,561
Changes in provisions of Telekom Slovenije in 2020
in EUR thousand
31 Dec
2019
Drawing
Reversal
Formation
Changes
in
discount
rates
31 Dec
2020
Provisions for probable
liabilities resulting from legal
claims
4,500
0
-
4,500
0
0
0
Provisions for severance pays
upon retirement
8,916
0
0
1,044
90
10,050
Provisions for jubilee rewards
1,847
-104
0
47
107
1,897
Provisions for estimated costs
of the removal of receiving
-
transmitting stations
3,868
-13
-5
119
263
4,232
Other provisions
7
-14
0
12
0
5
Provisions for restructuring
0
0
0
0
0
0
Total provisions
19,138
-131
-
4,505
1,222
460
16,184
Provisions for probable liabilities resulting from legal claims
Provisions for liabilities from probable legal claims are formed on the basis of the estimated outcome
of actions, conducted with a high level of prudence. Maturity date of the liability cannot be determined.
Legal claims in relation to which provisions were formed are at various stages. The Telekom Slovenije
Group was primarily successful in cases definitively concluded up to this date, which it also publishes
promptly in accordance with the rules of the Stock Exchange.
In 2021 and 2020, the Telekom Slovenije Group and Telekom Slovenije did not draw or establish
significant provisions for probable liabilities resulting from legal claims. In 2020, Telekom Slovenije
eliminated the provisions established in 2019. In 2021, no new provisions were established.
Total damages claimed in pending legal claims brought against the Telekom Slovenije Group
companies amount to EUR 128,158 thousand (2020: EUR 43,136 thousand). Total damages claimed
in pending legal claims brought against Telekom Slovenije amount to EUR 125,326 thousand (2020:
EUR 40,691 thousand). More details in Note 40.
Provisions for severance pays and jubilee rewards
Provisions for severance pays and jubilee rewards are based on actuarial calculations.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
240
Telekom Slovenije Group
Telekom Slovenije
in EUR thousand
Provisions
for jubilee
rewards
Provisions
for
severance
pays
Total
Provisions
for jubilee
rewards
Provisions
for
severance
pays
Total
Provisions as at 1 Jan 2020
2,298
10,920
13,218
1,847
8,916
10,763
Interest cost
25
112
137
19
90
109
Current service cost
154
477
631
114
382
496
Past service cost
-2
-15
-17
0
0
0
Actuarial gains (+) and losses (-)
38
638
676
21
662
683
Changes in Group
-22
-66
-88
0
0
0
Payments during the year
-141
-13
-154
-104
0
-104
Provisions as at 31 Dec 2020
2,350
12,053
14,403
1,897
10,050
11,947
Interest cost
11
56
67
9
46
54
Current service cost
159
524
682
118
426
544
Turnover (termination of
employment)
-3
-29
-32
0
0
0
Actuarial gains (+) and losses (-)
-198
-819
-1,016
-166
-869
-1,035
- due to changes in financial
assumptions
-101
-602
-702
-80
-618
-698
- due to experience-based
adjustments
-97
-217
-314
-85
-251
-336
Payments during the year
-163
-52
-215
-139
-45
-184
Provisions as at 31 Dec 2021
2,156
11,732
13,888
1,719
9,608
11,327
The company Telekom Slovenije and the Telekom Slovenije Group are exposed to the risks arising
from long-term employee benefits, primarily on the basis of:
- changes to legislation governing employment, retirement, contributions, and taxes,
- changes to collective agreements, business agreements and other internal acts that affect the type
and level of benefits,
- significant changes in the amounts to which the benefits relate: average salaries in the Republic of
Slovenia, employees’ salaries, fixed amounts of rewards and tax-free amounts of rewards,
- changes in the economic environment, e.g., severance pay upon termination of employment.
Present values of long-term employee benefits are exposed to the following risks:
- all risks to which long-term employee benefits are exposed,
- difference between actual experience and actuarial assumption (mortality, employee turnover, early
or late retirement, salary growth rate and tax-free reward amounts),
- changes in discount rates used in measuring, according to the different balance sheet dates.
The following actuarial assumptions were taken into account in the calculation of provisions for jubilee
rewards and post-employment benefits:
- demographic assumptions:
• expected mortality is determined on the basis of life tables of the population in the Republic
of Slovenia (published for 2007),
• fluctuation indicating the leaving of the company by one's own decision is determined as
linearly decreasing according to the age of the employee and averages 2.4% for the
company Telekom Slovenije, d.d. for 2021, and 2.8% for the Telekom Slovenije Group for
2021, weighted by the number of employees in each company, while the estimated
retirement date is determined as the day when the first condition for retirement is met, taking
into account the legislation of the Republic of Slovenia.
- financial assumptions:
• expected growth of average salaries in the Republic of Slovenia takes into account the
projections of the Institute of Macroeconomic Analysis and Development: Autumn forecast of
economic trends 2021 and is determined as a 2.5% long-term annual growth,
• expected increase in the salaries of employees in the Telekom Slovenije Group takes into
account the growth due to inflation, promotion and length of service allowance and amounts
to:
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
241
Long-term salary growth in the Company
since 2022
Telekom Slovenije
0.76%
GVO
2.74%
Avtenta
1.00%
TSmedia
0.85%
Soline
2.00%
TSinpo
0.72%
- the applied interest rate equals 0.95 p.a., which corresponds to the 2021 year-end yield on 10-year
corporate bonds from Euro area issuers, for Telekom Slovenije, Soline, GVO and TSinpo, and 1.17%
p.a., which corresponds to the 2021 year-end yield on 15-year corporate bonds from Euro area
issuers, for Avtenta and TSmedia.
Sensitivity analysis of changes in actuarial assumptions in the Telekom Slovenije Group
Assumption
Deviation
Description
Total
Severance
pays
Jubilee rewards
Central scenario
0.00%
balance
13,888
11,732
2,156
Discount interest rate
-0.50%
balance
14,715
12,465
2,250
(difference)
827
733
94
0.50%
balance
13,130
11,060
2,070
(difference)
-759
-671
-88
Salary growth
-0.50%
balance
13,131
11,060
2,071
(difference)
-758
-671
-87
0.50%
balance
14,706
12,457
2,249
(difference)
817
725
92
Sensitivity analysis of changes in actuarial assumptions in Telekom Slovenije
Assumption
Deviation
Description
Total
Severance
pays
Jubilee rewards
Central scenario
0.00%
balance
11,327
9,608
1,719
Discount interest rate
-0.50%
balance
11,999
10,207
1,792
(difference)
672
599
73
0.50%
balance
10,709
9,058
1,651
(difference)
-618
-550
-68
Salary growth
-0.50%
balance
10,709
9,057
1,652
(difference)
-618
-550
-68
0.50%
balance
11,992
10,201
1,791
(difference)
665
593
72
Provisions for estimated costs of the removal of receiving-transmitting stations
Provisions were formed in the amount of the estimated cost of removal discounted at the discount rate
of 0.95% p.a. (2020: 0.72% p.a.), which corresponds to the 10-year yield on corporate bonds from
Euro area issuers as at the end of December 2020.
Other reservations
Among other provisions, the Group and the company disclose liabilities from concluded contracts,
which have a current liability with an uncertain maturity and they were transferred from short-term to
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
242
long-term provisions.
Provisions for restructuring
In 2021, the Group drew provisions for restructuring in the amount of EUR 273 thousand, which were
created in the previous reporting period, and formed new ones in the amount of EUR 268 thousand.
Telekom Slovenije did not establish any new provisions for restructuring.
32.
Other liabilities
Other trade payables of the Telekom Slovenije Group include the frequency fee in Kosovo.
Telekom Slovenije Group
Telekom Slovenije
in EUR thousand
31 Dec 2021
31 Dec 2020
31 Dec 2021
31 Dec 2020
Trade payables for programme
rights
11,834
31,074
11,834
20,302
Other
6,621
7,822
447
554
Total trade payables
18,455
38,896
12,281
20,856
33.
Loans and borrowings
This note provides information about the contractual terms of borrowings. For more information
relating to exposure to interest rate risk and foreign currency risk, please refer to Note 44.
Telekom Slovenije Group
Telekom Slovenije
in EUR thousand
31 Dec 2021
31 Dec 2020
31 Dec 2021
31 Dec 2020
Borrowings
Borrowings from banks
349,032
214,801
349,001
214,801
- current portion of non-current borrowings
-40,009
-30,580
-39,978
-30,580
- non-current portion of borrowings
309,023
184,221
309,023
184,221
Total non-current portion
309,023
184,221
309,023
184,221
Current borrowings
Borrowings from banks - revolving loan
0
1,500
0
1,500
Borrowings from companies in the Group
0
0
1,400
13,000
current portion of non-current borrowings
from banks
40,009
30,580
39,978
30,580
Interests and other expenses from borrowings
6
0
37
15
Total current portion
40,015
32,080
41,415
45,095
Non-current financial liabilities of the Telekom Slovenije Group relate to borrowings from banks by
the Telekom Slovenije Group. The first non-current loan is a syndicated loan comprising three
tranches, two of which have respective maturity in 2023 and 2025. The loan is linked to a variable
interest rate with mark-ups for individual tranches ranging from 1.35% to 1.65% and is collateralised
by blank bills of exchange. The second non-current loan is also a syndicated loan comprising three
tranches, all with maturity in 2028. The loan is linked to a variable interest rate with mark-ups for
individual tranches ranging from 0.75% to 1.00% and is collateralised by blank bills of exchange. The
third non-current loan was received from the European Investment Bank (EIB). It has been partly
drawn and matures in 2031. The remaining part of the loan can be drawn by the end of 2023. The
drawn loan tranche is subject to a fixed interest rate equalling 1,571%. This loan is also collateralised
by blank bills of exchange.
The Group and the Company also have current credit lines and undrawn revolving loans at the end
of the year. Current revolving lines are collateralised by blank bills of exchange. Current revolving
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
243
loans mature in 2022 and are subject to fixed or variable interest rates and a mark-up ranging from
0.05% to 2.50%. A transaction account overdraft contract has also been signed with one of the banks,
with a 2.65% interest rate.
Banks which have approved the loans require that the Telekom Slovenije Group’s value of financial
covenants specified in loan agreements be maintained: the net financial debt/EBIDTA ratio, equity-to-
total assets ratio and equity as well as the EBIDTA/finance expenses ratio. Failure to achieve the
prescribed ratios may result in a demand for early repayment of the loans. As at 31 December 2021,
all financial covenants on the Group level were fulfilled.
In addition to the above, Telekom Slovenije also has financial liabilities to Group companies in the
form of a current revolving loan with maturity in 2022, subject to an interest rate between 0.495% and
0,557%.
Changes in borrowings
Telekom Slovenije Group
Telekom Slovenije
in EUR thousand
2021
2020
2021
2020
Balance as at 1 Jan
216,301
245,840
229,316
252,810
Drawing
196,000
1,000
196,000
7,000
Returns
-62,995
-30,801
-74,595
-30,769
Other
-268
262
-283
275
Balance as at 31 Dec
349,038
216,301
350,438
229,316
Other changes relate to non-monetary items, namely, to transfers of prepaid expenses related to the
granting of a loan to financial expenses, expenses from borrowings, and transfers between individual
categories.
34.
Lease liabilities
Current financial liabilities from lease represent liabilities for right-of-use assets that are expected to be
settled in the next 12 months.
Lease liabilities
Telekom Slovenije Group
Telekom Slovenije
in EUR thousand
31 Dec 2021
31 Dec 2020
31 Dec 2021
31 Dec 2020
Non-current liabilities arising from right-of-use assets
57,096
59,092
62,748
67,093
Current liabilities arising from right-of-use assets
9,460
10,180
10,949
11,660
Total liabilities arising from right-of-use assets
66,556
69,272
73,697
78,753
Changes in lease liabilities
in EUR thousand
Telekom Slovenije Group
Telekom Slovenije
Balance as at 31 Dec 2020
69,054
76,382
Additions
10,037
11,484
Interest
2,348
2,352
Lease payments
-12,167
-11,465
Balance as at 31 Dec 2020
69,272
78,753
Additions
9,877
6,599
Interest
2,214
2,227
Lease payments
-14,807
-13,882
Balance as at 31 Dec 2020
66,556
73,697
Balance as at 31 Dec 2020
Telekom Slovenije Group
Telekom Slovenije
Current lease liabilities
10,180
11,660
Non-current lease liabilities
59,092
67,093
Total lease liabilities
69,272
78,753
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
244
Balance as at 31 Dec 2020
Telekom Slovenije Group
Telekom Slovenije
Current lease liabilities
9,460
10,949
Non-current lease liabilities
57,096
62,748
Total lease liabilities
66,556
73,697
The total cash flow from leases amounts to EUR 14,806 thousand for the Telekom Slovenije Group
and EUR 13,882 thousand for the company Telekom Slovenije, and is disclosed as a cash flow arising
from financing activities. Repayment of lease liabilities – principal, provided in the statement of cash
flows, comprises only the payments on the lease principal, and the interest payments are included in
the “interest paid” line.
35.
Other financial liabilities
Non-current financial liabilities
Telekom Slovenije Group
Telekom Slovenije
in EUR thousand
31 Dec 2021
31 Dec 2020
31 Dec 2021
31 Dec 2020
Liabilities for interest rate swap
88
244
88
244
Total other non-current financial liabilities
88
244
88
244
Current financial liabilities
Telekom Slovenije Group
Telekom Slovenije
in EUR thousand
31 Dec 2021
31 Dec 2020
31 Dec 2021
31 Dec 2020
Liabilities under bonds issued
0
101,078
0
101,078
Liabilities for interest rate swap
0
98
0
98
Other financial liabilities
2
63
0
61
Total other current financial liabilities
2
101,239
0
101,237
Upon their maturity in June 2021, Telekom Slovenije repaid the bonds in the amount of EUR 100
million, and the repayment source was a new non-current syndicated loan.
In February 2017, an interest rate swap was concluded with the purpose of interest rate hedging, the
fair value of which as at 31 December 2021 equalled EUR 88 thousand (31 December 2020: EUR 342
thousand). Due to the immateriality of the amount of the interest rate swap, the Group did not prepare
any additional disclosures related to risk management.
Changes in other financial liabilities
Telekom Slovenije Group
Telekom Slovenije
in EUR thousand
Bonds
Other
Bonds
Other
Balance as at 1 Jan 2020
101,036
829
100,036
753
Interest paid
-1,950
-444
-1,950
-444
Other
1,992
20
1,992
94
Balance as at 31 Dec 2020
101,078
405
101,078
403
Interest paid + repayment of bonds
-101,950
-247
-101,950
-247
Other
872
-68
872
-68
Balance as at 31 Dec 2021
0
90
0
88
Other changes relate to non-monetary items, namely accrued interest, transfers of prepaid expenses
related to bonds issued to financial expenses, dividend write-downs and change in fair value of non-
derivative financial instruments.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
245
36. Trade payables
Telekom Slovenije Group
Telekom Slovenije
in EUR thousand
31 Dec 2021
31 Dec 2020
31 Dec 2021
31 Dec 2020
Trade payables
79,928
64,003
65,612
52,939
Liabilities to domestic operators
1,724
1,887
7,297
7,489
Liabilities to foreign operators
8,034
11,161
8,540
11,335
VAT and other tax liabilities
6,596
7,745
4,944
7,105
Liabilities to employees
8,698
8,329
7,007
6,655
Liabilities for advances and warranties
2,293
2,861
377
430
Other liabilities
23,682
23,072
22,604
23,802
Total trade payables
130,955
119,058
116,381
109,755
Trade payables are non-interest bearing and are generally settled in the agreed period of 8 to 120
days. The same applies for liabilities to operators which are also non-interest bearing and are
generally settled in an agreed-upon term between 10 and 90 days from the date of the invoice issue.
Other liabilities in the company and the Group mostly include liabilities from cession and assignment in
the amount of EUR 1,788 thousand (in 2020: EUR 3,030 thousand), programme rights for TV content
in the amount of EUR 18,241 thousand (in 2020: EUR 9,968 thousand), and other non-current
liabilities.
37.
Contract liabilities
Telekom Slovenije Group
Telekom Slovenije
in EUR thousand
31 Dec 2021
31 Dec 2020
31 Dec 2021
31 Dec 2020
Contract liabilities - leases
1,833
1,714
1,833
2,043
Other current contract liabilities
10,485
10,942
6,619
6,664
Total contract liabilities
12,318
12,656
8,452
8,707
Other current contract liabilities relate mostly to contract liabilities from customer loyalty programme
and mobile services prepayments.
38.
Accrued liabilities
Among accrued liabilities, the Group and the company disclose current deferred revenue and current
accrued costs, as follows:
Current deferred revenue
Telekom Slovenije Group
Telekom Slovenije
in EUR thousand
31 Dec 2021
31 Dec 2020
31 Dec 2021
31 Dec 2020
Current portion of government grant for
property, plant and equipment
56
65
54
64
Other current deferred revenue
- co-
funding of European
projects
768
478
267
97
Total current deferred revenue
824
543
321
161
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
246
Current accrued costs
Telekom Slovenije Group
Telekom Slovenije
in EUR thousand
31 Dec 2021
31 Dec 2020
31 Dec 2021
31 Dec 2020
Accrued costs and expenses for services
rendered and goods supplied (invoices
not issued yet)
7,985
19,087
6,991
18,286
Accrued costs and deferred revenue –
calculation of international services
11,511
13,927
11,520
14,715
Accrued salaries, bonuses and
severance pays
3,856
3,823
3,715
3,636
Accrued costs for unused annual leave
3,932
4,477
3,243
3,723
Other
678
0
673
0
Total accrued costs and expenses
27,962
41,314
26,142
40,360
Total accrued liabilities
28,786
41,854
26,463
40,521
39.
Book and fair values
The table contains data on the classification in terms of fair value hierarchy solely for assets and
financial liabilities which are measured at fair value and for which fair value is disclosed.
Book and fair values of financial instruments of the Telekom Slovenije Group as at 31 December 2021
in EUR thousand
Book value
Fair value
Level 1
Level 2
Level 3
Non-current financial assets
Investments in shares and interests
listed on the stock exchange,
measured at fair value through other
comprehensive income
2,305
2,305
2,305
Investments in shares and interests
not listed on the stock exchange,
measured at fair value through other
comprehensive income
936
936
936
Loans granted
44
44
44
Other non-current financial assets
7
7
7
Trade receivables
18,300
18,300
18,300
Current financial assets
Loans granted
38
38
38
Other current financial assets
702
702
702
Trade and other receivables
156,152
156,152
156,152
Cash and cash equivalents
15,935
15,935
15,935
Non-current financial liabilities
Borrowings
309,023
309,023
309,023
Liabilities for interest rate swap
88
88
88
Other liabilities
18,455
18,455
18,455
Current financial liabilities
Borrowings
40,015
40,015
40,015
Other financial liabilities
2
2
2
Trade payables
130,955
130,955
130,955
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
247
Book and fair values of financial instruments of the Telekom Slovenije Group as at 31 December 2020
in EUR thousand
Book value
Fair value
Level 1
Level 2
Level 3
Non-current financial assets
Investments in shares and interests listed
on the stock exchange, measured at fair
value through other comprehensive
income
1,854
1,854
1,854
Investments in shares and interests not
listed on the stock exchange, measured
at fair value through other comprehensive
income
1,111
1,111
1,111
Loans granted
103
103
103
Trade receivables
17,081
17,081
17,081
Current financial assets
Loans granted
61
61
61
Other current financial assets
451
451
451
Trade and other receivables
162,936
162,936
162,936
Cash and cash equivalents
8,167
8,167
8,167
Non-current financial liabilities
Borrowings
184,221
184,221
184,221
Liabilities for interest rate swap
244
244
244
Trade payables
38,896
38,896
38,896
Current financial liabilities
Bonds
101,078
100,500
100,500
Borrowings
32,080
32,080
32,080
Liabilities for interest rate swap
98
98
98
Other financial liabilities
63
63
63
Trade payables
119,058
119,058
119,058
Book and fair values of financial instruments of the company Telekom Slovenije as at 31 December
2021
in EUR thousand
Book value
Fair value
Level 1
Level 2
Level 3
Non-current financial assets
Investments in shares and interests listed on
the stock exchange, measured at fair value
through other comprehensive income
2,305
2,305
2,305
Investments in shares and interests not listed
on the stock exchange, measured at fair
value through other comprehensive income
936
936
936
Loans granted
53,994
53,994
53,994
Trade receivables
18,294
18,294
18,294
Current financial assets
Loans granted
12,177
12,177
12,177
Trade and other receivables
148,378
148,378
148,378
Cash and cash equivalents
3,754
3,754
3,754
Non-current financial liabilities
Borrowings
309,023
309,023
309,023
Liabilities for interest rate swap
88
88
88
Trade payables
12,281
12,281
12,281
Current financial liabilities
Borrowings
41,415
41,415
41,415
Trade payables
116,381
116,381
116,381
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
248
Book and fair values of financial instruments of the company Telekom Slovenije as at 31 December 2020
in EUR thousand
Book value
Fair value
Level 1
Level 2
Level 3
Non-current financial assets
Investments in shares and interests
listed on the stock exchange, measured
at fair value through other
comprehensive income
1,854
1,854
1,854
Investments in shares and interests not
listed on the stock exchange, measured
at fair value through other
comprehensive income
1,109
1,109
1,109
Loans granted
60,988
60,988
60,988
Trade receivables
17,081
17,081
17,081
Current financial assets
Loans granted
17,385
17,385
17,385
Trade and other receivables
158,367
158,367
158,367
Cash and cash equivalents
2,086
2,086
2,086
Non-current financial liabilities
Borrowings
184,221
184,221
184,221
Liabilities for interest rate swap
244
244
244
Trade payables
20,856
20,856
20,856
Current financial liabilities
Bonds
101,078
100,500
100,500
Borrowings
45,083
45,083
45,083
Liabilities for interest rate swap
98
98
98
Other financial liabilities
61
61
61
Trade payables
109,755
109,755
109,755
Fair values at levels 2 and 3 of the hierarchy were estimated using the discounted cash flow valuation
technique.
The Group and the Company did not record any transfers between fair value levels in 2020 or 2021.
Assets that are not measured at fair value in the balance sheet, but of which the fair value is disclosed
The Group and the Company keep investment property in their books at cost value and only disclose
fair value. The valuation of investment property was prepared by a certified property appraiser as at 30
November 2021. The market comparison approach was used in the assessment of fair value,
decreased by the cost of use.
Book and fair values as at 31 December 2021
Telekom Slovenije Group
in EUR thousand
Book value
Fair value
Level 1
Level 2
Level 3
Investment property
4,545
5,162
5,162
Telekom Slovenije
in EUR thousand
Book value
Fair value
Level 1
Level 2
Level 3
Investment property
7,641
8,831
8,831
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
249
Book and fair values as at 31 December 2020
Telekom Slovenije Group
in EUR thousand
Book value
Fair value
Level 1
Level 2
Level 3
Investment property
1,258
1,704
1,704
Telekom Slovenije
in EUR thousand
Book value
Fair value
Level 1
Level 2
Level 3
Investment property
4,230
4,849
4,849
40.
Contingent liabilitiess
Amounts claimed in litigation
Telekom Slovenije Group
in EUR thousand
2021
2020
Amounts claimed in litigation
127,766
43,136
As at the balance sheet date, the Group recorded 99 legal claims (31 Dec 2020: 91 legal claims).
Based on the obtained legal opinions and the estimate of the management, provisions were formed for
legal claims in the amount of EUR 250 thousand (Note 31).
Telekom Slovenije
in EUR thousand
2021
2020
Amounts claimed in litigation
125,326
40,691
As at the reporting date, the Group recorded 57 legal claims (31 December 2020: 51 legal claims).
The relevant legal claims are at various stages as follows:
On 2 March 2021, Telekom Slovenije received a legal claim of the Ljubljana District Court from
the plaintiff T-2, d.o.o., for the payment of ordinary damages, repayment of lost profits and non-
existence of claims in the amount of EUR 49,735 thousand. The claim supposedly represents
the damages suffered by the plaintiff between 1 September 2018 and 31 July 2020. Telekom
Slovenije assesses that the amount of the legal claim will be fully rejected.
On 2 August 2021, Telekom Slovenije also received a legal claim of the Ljubljana District Court
from the plaintiff Telemach d.o.o. for the payment of damages in the amount of EUR 28,796
thousand with statutory interest from 1 June 2021 until payment. Telemach d.o.o. justifies the
claim with allegations of a breach of regulatory provisions, issued by the Agency for
Communication Networks and Services of the Republic of Slovenia, and with allegations of
abuse of a dominant position. Telekom Slovenije assesses that the amount of the legal claim
will be fully rejected.
Based on the obtained legal opinions and the estimate of the management, the Group has provisions
formed for legal claims in the amount of EUR 250 thousand (in 2021: EUR 251 thousand). The
company has no provisions formed for legal claims.
Given the progress of the proceedings, it is difficult to provide an estimate of the completion of
individual cases with a sufficient degree of certainty.
Supporting letter given to a subsidiary
The parent company Telekom Slovenije, as the sole shareholder of SIOL Sarajevo, issued a
supporting letter to SIOL Sarajevo, in which it declares to continue providing financial support to the
company for going concern and that this support will not be revoked within twelve months of signing
the supporting letter.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
250
Guarantees issued
The Group and the Company provide the following guarantees:
Telekom Slovenije Group
Telekom Slovenije
in EUR thousand
2021
2020
2021
2020
Performance bonds and warranty bonds
11,028
9,292
7,892
7,587
Contract performance bonds
0
0
435
431
Other guarantees
353
405
133
162
Total guarantees issued
11,381
9,697
8,460
8,180
Bonds issued between Group companies amount to EUR 435 thousand. They refer to collateralisation
of contractual obligations and represent guarantees of Telekom Slovenije issued to banks for securing
subsidiary companies’ liabilities. None of the stated liabilities meet the terms for recognition among
balance sheet items. Thus, no related material consequences are expected for the Group.
41.
Related party transactions
Related entities are individuals or companies related to the Telekom Slovenije Group.
Transactions with individuals
As at 31 December 2019, related individuals (Chairman and members of the Supervisory Board as
well as Deputy Chairman of the Supervisory Board and members of the Supervisory Board) hold a
total of 974 shares in the Company, representing a share capital of 0.01490%.
No loans were granted to related individuals in 2021.
Data on groups of persons in 2021
Borrowings
in EUR thousand
Total
gross
proceeds
received
Receipts as
profit pay-outs
based on the
resolution of
the General
Meeting of
Shareholders
Unpaid
portion as
at 31
December
2021
Repayments
in 2021
Total Board members
893
-
-
-
Members of the Supervisory Board
262
-
-
-
Members of the Supervisory Board Committees
23
-
-
-
Other managerial staff employed under
contracts not subject to the tariff part of the
collective agreement
4,803
-
1
5
Data on groups of persons in 2020
Borrowings
in EUR thousand
Total
gross
proceeds
received
Receipts as
profit pay-
outs based
on the
resolution of
the General
Meeting of
Shareholders
Unpaid
portion as
at 31
December
2020
Repayments
in 2020
Total Board members
934
-
-
-
Members of the Supervisory Board
262
-
-
-
Members of the Supervisory Board Committees
20
-
-
Other managerial staff employed under contracts not
subject to the tariff part of the collective agreement
4,621
-
7
6
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
251
Other managers and employees in the Group under contracts that are not subject to the tariff part of
the collective agreement were granted loans with an interest rate of 4.24% p.a. with the repayment
period of up to 20 years.
The Group has not granted any advances or guarantees to the respective groups of persons and has
no liabilities to these persons, nor did the Group record any write-offs or waived amounts for these
groups.
Remuneration of the members of the Management Board in 2021 - breakdown
in EUR
Salary
Variable
remuner
ation*
Other
remuner
ation
Reimburs
ement of
costs
Annu
al
leave
pay
Insura
nce
premi
ums
Bene
fits
Voluntary
suppleme
ntary
pension
insuranc
e
Total
gross**
Total
net***
Cvetko Sršen (10
Mar – 31 Dec)
130,223
0
0
1,470
1,216
0
7,734
2,349
142,992
61,201
Tomaž Jontes (1
Jan – 31 Dec)
152,840
6,160
0
1,285
1,621
1,005
9,588
2,819
175,318
76,183
Mitja Štular (10
Mar – 31 Dec)
117,717
0
689
1,088
1,312
59
2,551
2,278
125,694
66,263
Barbara Galičič
Drakslar (31 Mar
– 31 Dec)
109,970
0
0
1,379
1,197
366
5,010
2,114
120,036
53,552
Špela Fortin (1
Jan – 31 Dec)
133,707
8,284
0
1,316
1,621
1,005
7,783
2,819
156,535
68,148
Tomaž Seljak (1
Jan – 10 Mar)
30,987
53,655
0
282
314
639
1,670
552
88,099
36,922
Vida Žurga (1
Jan – 10 Mar)
0
30,787
0
0
314
639
2,558
552
34,850
14,535
Matjaž Beričič (1
Jan – 10 Mar)
30,521
11,700
0
275
314
639
1,067
552
45,068
20,940
Ranko Jelača
(for 2020)
0
4,786
0
0
0
0
0
0
4,786
3,072
Total
705,965
115,372
689
7,095
7,909
4,352
37,96
1
14,035
893,378
400,816
* Variable remuneration refers to the part of the performance bonus for 2018, 2019 and 2020.
** The total gross amount is the sum of all types of labour costs, including net receipts (reimbursement of costs), insurance premiums, the
benefits and voluntary supplementary pension insurance.
*** The total net amount comprises the sum of net receipts of Management Board members, inclusive of insurance premiums and benefits,
which actually reduce net receipts of Management Board members, and exclusive of th
e benefits and voluntary supplementary pension
insurance, which is remitted to the pension company and not to the members personally.
Members of the Management Board did not receive any profit pay-outs, options, commissions or other receipts.
Remuneration of the members of the Management Board in 2020 - breakdown
in EUR
Salary
Variable
remunera
tion*
Other
remune
ration
Reimbu
rsement
of costs
Annual
leave
pay
Insuran
ce
premiu
ms
Benefit
s
Volunta
ry
supple
mentar
y
pensio
n
insuran
ce
Total
gross**
Total
net***
Tomaž Seljak (1 Jan
– 31 Dec)
157,783
28,715
0
1,433
1,481
795
9,213
2,819
202,239
87,185
Vida Žurga (1 Jan –
31 Dec)
130,615
11,195
0
1,394
1,481
795
14,381
2,819
162,680
62,568
Matjaž Beričič (1 Jan
– 31 Dec
155,995
780
0
1,383
1,481
795
5,906
2,819
169,159
79,336
Tomaž Jontes (22
Jun – 31 Dec)
82,134
0
0
734
0
218
4,622
1,484
89,192
37,078
Špela Fortin (1 Jan –
31 Dec
110,456
2,594
0
1,322
1,481
795
7,431
2,819
126,898
57,084
Ranko Jelača (1 Jan
– 14 Mar)
31,908
58,703
77,999
166
247
461
1,074
470
171,028
72,313
Rudolf Skobe (for
2019)
0
6,949
0
0
0
0
0
0
6,949
3,962
Dean Žigon (for
2019)
0
5,891
0
0
0
0
0
0
5,891
2,843
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
252
Members of the Management Board did not receive any profit pay-outs, options, commissions or other
receipts.
Remuneration of the Supervisory Board members in 2021 – breakdown
in EUR
Meetings
Basic
salary
Committees
Travel
expenses
Liability
insurance
Total
gross*
Total
net**
Representatives of capital
Iztok Černoša (22 Jan – 31 Dec)
5,500
23,328
2,420
0
689
31,937
22,727
Klara Pinter (18 Jun – 31 Dec)
2,420
10,094
660
28
0
13,202
9,601
Radovan Cerjak (22 Jan – 31 Dec)
5,280
19,626
1,980
0
689
27,575
19,554
Aleksander Igličar (22 Jan – 31 Dec)
5,500
19,626
4,004
28
689
29,847
21,207
Marko Kerin (22 Jan – 31 Dec)
4,675
19,626
4,950
124
689
30,064
21,365
Jurij Toplak (18 Jun – 31 Dec)
2,420
9,343
660
383
0
12,806
9,314
Štefan Belingar (1 Jan – 21 Jan)
275
1,482
220
0
0
1,977
1,438
Barbara Gorjup (1 Jan – 27 Apr)
2,805
7,394
1,672
0
689
12,560
8,634
Boštjan Koler (1 Jan – 21 Jan)
275
1,778
220
0
0
2,273
1,653
Barbara Kürner Čad (1 Jan – 27 Apr)
2,805
8,318
1,540
0
689
13,352
9,209
Dimitrij Marjanović (1 Jan – 21 Jan)
275
1,185
0
0
0
1,460
1,062
Igor Rozman (1 Jan – 21 Jan)
275
1,185
0
0
0
1,460
1,062
Employee representatives
Drago Kijevčanin (1 Jan – 31 Dec)
5,396
22,400
5,104
0
689
33,589
23,928
Dušan Pišek (1 Jan – 31 Dec)
5,775
18,813
660
0
689
25,937
18,363
Jana Žižek Kuhar (1 Jan – 31 Dec)
5,500
17,500
660
0
689
24,349
17,208
Total
49,176
181,698
24,750
563
6,201
262,388
186,325
* The total gross amount includes the sum of all attendance fees, basic salaries for performing the function and payments for participating in
committees, including net receipts (travel expenses) and liability insurance.
**The total net amount includes the sum of all net receipts, together with travel expenses.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
253
Remuneration of the Supervisory Board members in 2020 – breakdown
in EUR
Meetings
Basic
salary
Committees
Travel
expenses
Liability
insuranc
e
Total
gross*
Total
net**
Representatives of capital
Boštjan Koler (3 Nov – 31
Dec)
1,045
4,539
660
0
0
6,244
4,541
Barbara Kürner Čad (1 Jan
– 31 Dec)
4,950
22,463
5,302
0
409
33,124
23,794
Bernarda Babič (1 Jan – 3
Nov)
3,658
16,766
814
264
409
21,911
15,638
Štefan Belingar (3 Nov – 31
Dec)
1,045
4,195
440
0
0
5,680
4,131
Barbara Cerovšek Zupančič
(1 Jan – 3 Nov)
3,905
18,163
4,448
0
409
26,925
19,285
Barbara Gorjup (1 Jan – 31
Dec)
4,950
21,514
5,328
0
409
32,201
23,122
Dimitrij Marjanović (1 Jan –
13 May; 3 Nov – 31 Dec)
2,008
9,828
1,236
0
409
13,481
9,507
Igor Rozman (1 Jan – 31
Dec)
4,950
20,394
2,838
0
409
28,591
20,497
Aleš Šabeder (5 Jun – 3
Nov)
1,925
11,200
660
0
0
13,785
10,026
Employee representatives
Drago Kijevčanin (1 Jan –
31 Dec)
4,950
21,432
5,328
0
409
32,119
23,063
Dušan Pišek (1 Jan – 31
Dec)
4,675
17,695
2,002
0
409
24,781
17,726
Jana Žižek Kuhar (1 Jan –
31 Dec)
4,675
16,742
880
0
409
22,706
16,217
Total
42,736
184,931
29,936
264
3,681
261,548
187,547
* The total gross amount includes the sum of all attendance fees, basic salaries for performing the function and payments for
participating in committees, including net receipts (travel expenses) and liability insurance.
** The total net amount represents the sum of Supervisory Board members’ net receipts, inclusive of liability insurance, which
in fact reduce net receipts, together with travel expenses.
In 2021, the members of the company's Supervisory Board received the following payments for
performing the function of the Audit Committee in Soline
In EUR Meetings
Basic
salary
Travel
expenses
Total
gross*
Total
net**
Aleksander Igličar (24 May - 31.Dec)
220
0
0
220
160
Barbara Gorjup (24 May – 31 Dec)
220
0
0
220
160
Marko Hočevar (24 May – 31 Dec)
220
0
0
220
160
Marko Kerin (24 May -
31 Dec)
220
0
0
220
160
Drago Kijevčanin (24 May – 31 Dec)
220
0
0
220
160
Total
0
0
0
1,100
800
* The total gross amount includes the sum of all attendance fees, basic salaries for performing the function and payments for
participating in committees, including net receipts (travel expenses) and liability insurance.
** The total net amount represents the sum of Supervisory Board members’ net receipts, together with travel expenses.
The members of the Supervisory Board received no other remunerations.
In 2021, the members of the Supervisory Board were trained in various areas of supervisory board
activities. The total cost of training and education amounted to EUR 1,139.12 (in 2020 EUR 1,139.12).
The members of the Supervisory Board received no other remuneration.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
254
Barbara Nose (1 Jan – 11 Feb)
220
1,219
0
1,439
1,046
Gregor Rajšp (1 Jan – 6 Apr)
660
1,867
0
2,527
1,838
Alenka Stanič (1 Jan – 6 Apr)
660
1,867
0
2,527
1,838
Total
6,996
16,237
0
23,233
16,897
* The total gross amount includes the sum of the basic salary for performing the function and payments for participating in committees.
** The total net amount refers to net receipts of the members of the Supervisory Board committee.
Remuneration of the Supervisory Board members in 2020 – breakdown
In EUR
Meetings
Basic salary
Travel
expenses
Total
gross*
Total
net**
External Committee Members
Barbara Nose (1 Jan – 31 Dec)
4,096
9,713
0
13,809
10,043
Melita Malgaj (9 Dec – 31 Dec)
440
216
0
656
477
Gregor Rajšp (12 Feb – 1 Apr; 9 Dec – 31 Dec)
1,056
1,021
0
2,077
1,511
Alenka Stanič (12 Feb – 1 Apr; 9 Dec – 31 Dec)
1,056
1,021
0
2,077
1,511
Boštjan Koler (12 Feb – 1 Apr)
616
805
0
1,421
1,033
Total
7,264
12,776
0
20,040
14,575
* The total gross amount includes the sum of the basic salary for performing the function and payments for participating in committees.
** The total net amount refers to net receipts of the members of the Supervisory Board Committee.
Members of the Management Board and the Supervisory Board of Telekom Slovenije are members of
supervisory or management boards of other companies or owners of other companies with which the
company Telekom Slovenije conducts business. All related party transactions are carried out under
market conditions.
Telekom Slovenije Group Liabilities to Related Parties
The Telekom Slovenije Group records liabilities to related parties arising from receipts that have not
yet been paid out, in amounts as follows:
in EUR thousand
Total amount of total
liabilities as at 31 Dec
2021
Total amount of total
liabilities as at 31 Dec
2020
Total Management Board members
197
285
Other managerial staff employed under contracts
not subject to the tariff part of the collective
agreement
392
429
Transactions with companies in the Group
All transactions with companies in the Group are performed under market conditions applicable for
transactions with unrelated parties.
Telekom Slovenije
in EUR thousand
31 Dec 2021
31 Dec 2020
Receivables due from companies in the Group
Subsidiaries – gross amount
2,584
3,872
Subsidiaries – impairment
-8
-22
Subsidiaries – net amount
2,576
3,850
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
255
Borrowings to Group companies
Subsidiaries – gross amount
66,089
78,238
Subsidiaries – net amount
66,089
78,238
Liabilities to companies in the Group
Subsidiaries
26,041
41,810
in EUR thousand
I–XII 2021
I–XII 2020
Revenue from sales in the Group
13,408
14,551
Subsidiaries
13,408
14,551
Material purchase and services in the Group
18,477
18,361
Subsidiaries
18,477
18,361
The Company generates revenue by selling material to the company GVO, by leasing business
premises and property, plant and equipment, by rendering telecommunication services and by
implementing the services of business support. Telekom Slovenije settles the company GVO's costs of
investment construction, maintenance and elimination of defects.
TSmedia pays the company Telekom Slovenije for the provision of telecommunications services and
call centre services, for maintenance, development and purchase of multimedia platforms and
contents, for business support services and for the lease of outdoor digital screens and business
premises. To the controlling company, it charges the sale and management of multimedia services
and contents, the use of the BiziPro business application, services related to the universal directory
enquiry service, service 1977, as well as management and sale of advertising space. Additionally, it
receives revenue arising from the telephone directory, the Bizi.si business directory and call centre
services, which Telekom Slovenije charges to end users through a joint invoice.
The Company charges the lease of business premises, communications services at location, support
activities services to its subsidiary Avtenta, while paying the subsidiary the costs of ICT services.
Telekom Slovenije charges international IP services, roaming services of its users, traffic transiting
services and system lease services to its subsidiary IPKO. The subsidiary charges the lease of lines
and international telecommunications services as well as services related to user roaming to the
controlling company.
Inter-company prices are formed on the same basis as for other users.
As at the reporting date, the amount of contract performance bonds issued by Telekom Slovenije to its
subsidiaries equalled EUR 434 thousand (31 December 2020: EUR 431 thousand), respectively.
The company did not form an impairment for loans granted in 2021, as the estimated expected credit
losses are insignificant.
Loans granted to subsidiaries
in EUR thousand
31 Dec 2021
31 Dec 2020
TSmedia, d.o.o.
400
1,556
IPKO d.o.o.
55,650
65,650
SOLINE d.o.o.
1,627
1,998
SIOL d.o.o., Zagreb
504
151
SiOL d.o.o. Sarajevo
4,715
5,317
Siol BEOGRAD
20
241
SIOL Prishtina
3,173
3,325
Total granted to subsidiaries
66,089
78,238
Transactions with owners and their related companies
The largest owner of Telekom Slovenije is the Republic of Slovenia, which, together with the Slovenian
Sovereign Holding – SSH (Slovenski državni holding – SDH), holds a 66.79% share capital in Telekom
Slovenije.
Companies related to the owners are those in which the Republic of Slovenia and SSH together hold a
share capital of at least 20%. The list of these companies is published on SSH’s website
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
256
(http://www.sdh.si/sl-si/upravljanje-nalozb/seznam-nalozb).
The total value of transactions is outlined in the table below.
Telekom Slovenije
Group
Telekom Slovenije
in EUR thousand
31 Dec
2021
31 Dec
2020
31 Dec 2021
31 Dec 2020
Outstanding trade receivables
4,717
3,480
4,247
3,336
Outstanding trade payables
4,867
2,156
4,830
2,060
VAT liabilities
3,791
5,845
3,695
6,026
Income tax payables
3,654
75
3,437
0
in EUR thousand
I - XII 2021
I - XII 2020
I - XII 2021
I - XII 2020
Sales revenue
17,580
19,346
15,839
16,860
Purchase costs of material and services
10,026
9,300
9,267
8,363
in EUR thousand
I - XII 2021
I - XII 2020
I - XII 2021
I - XII 2020
VAT payment
58,908
55,249
58,402
55,278
CIT payment
679
794
0
0
Dividends paid
19,687
15,312
19,687
15,312
All related party transactions are carried out under market conditions.
42.
Auditor’s fee
Telekom Slovenije Group
Telekom Slovenije
in EUR thousand
2021
2020
2021
2020
Audit services
185
225
122
181
Other assurance engagements
8
13
8
13
Other non-audit services
13
14
0
0
Total auditor’s fees
206
252
130
194
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
257
43.
Categories of financial instruments
The Group classified financial instruments into groups as shown in the table below.
Telekom Slovenije Group
Telekom Slovenije
in EUR thousand
31 Dec 2021
31 Dec 2020
31 Dec 2021
31 Dec 2020
Financial assets measured at amortised
cost
Cash and cash equivalents
15,935
8,167
3,754
2,086
Bank deposits
702
451
0
0
Loans granted
82
164
66,171
78,402
Trade and other receivables
174,452
180,017
166,672
176,999
Financial assets measured at fair value
through other comprehensive income
Investments in shares and interests of
companies
3,241
2,965
3,241
2,963
Financial liabilities at fair value through
other comprehensive income
Liabilities for interest rate swap
88
244
88
244
Financial liabilities measured at
amortised cost
Trade payables
149,410
157,954
128,662
130,611
Borrowings
349,038
216,301
350,438
229,316
Liabilities under bonds issued
0
101,078
0
101,078
Other financial liabilities
2
63
0
61
The Group and the Company did not reclassify these instruments to other groups during the year.
44.
Financial instruments and financial risk management
Financial risks that the Telekom Slovenije Group and the company Telekom Slovenije, d.d. are the
most exposed to in the course of their operations, are credit risk, liquidity risk and interest rate risk.
The exposure to individual types of financial risk is regularly assessed. On the basis of potential
negative effect assessment on financial stability and performance, adequate management measures
are implemented.
Credit risk
Credit risk is the risk of financial loss in case a client or a contracting party does not settle their
liabilities in full or at all.
The maximum exposure to credit risk equals the book value of financial assets.
Telekom Slovenije Group
Telekom Slovenije
in EUR thousand
31 Dec 2021
31 Dec 2020
31 Dec 2021
31 Dec 2020
Loans granted
82
164
66,171
78,402
Deposits
702
451
0
0
Trade and other receivables
174,452
180,017
166,672
176,999
- of which trade receivables
166,196
173,852
159,790
170,769
Cash and cash equivalents
15,935
8,167
3,754
2,086
TOTAL
191,171
188,799
236,597
257,487
Key credit risk of the Group and the company Telekom Slovenije arises mainly from non-payment of
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
258
liabilities by customers (retail) and by operators (wholesale). Trade receivables represent the
maximum exposure to credit risk. As at 31 December 2021, these amounted to EUR 166,196
thousand, having decreased by EUR 7,656 thousand compared to the end of 2020. Most of the
Group’s trade and other receivables refer to Telekom Slovenije. Most receivables are unsecured. The
Group records receivables due form a large number of natural persons and legal entities. The Group's
largest customers are operators, whose turnover is usually two-way, reducing net credit exposure. We
estimate that there is no significant credit risk concentration in relation to an individual client or sector.
The Group companies have introduced procedures for managing receivables, which includes
monitoring business partners’
credit rating, collateralisation of receivables, monitoring high turnover of subscribers and recovery. The
recovery procedure is conducted according to a pre-defined timeline (reminders and disconnection)
and through specialised outsourced operators. Telekom Slovenije requires prior authorisation for
concluding and changing a subscription relationship and for purchasing goods with deferred payment.
As an additional measure for managing credit risk, the larger Group companies implemented systems
to prevent frauds i.e. Fraud Management System (FMS). Telekom Slovenije, which has the most post-
paid customers, additionally has in place the Credit Management System (CMS).
As a result of introduced procedures for managing receivables, credit risk is assessed as manageable.
Maturity analysis of receivables of the Telekom Slovenija Group as at the reporting date
in EUR thousand
31 Dec 2021
31 Dec 2020
Gross
amount
Expected
% of credit
losses
Impairment
Net
amount
Gross
amount
Expected
% of credit
losses
Impairment
Net
amount
Total trade receivables
183,132
-16,936
166,196
189,812
-15,960
173,852
Trade receivables not past due
149,508
0.5%
-795
148,713
156,592
0.5%
-
783
155,809
Past due
-up to and including 30 days
11,159
3%
-
341
10,818
11,726
3%
-
341
11,385
- from including 31 days to and
including 60 days
3,591
7%
-
269
3,322
3,492
8%
-
293
3,199
- from and including 61 days to and
including 90 days
780
12%
-90
690
607
9%
-56
551
- from including 91 days to and
including 180 days
1,448
44%
-
633
815
1,433
51%
-
735
698
- from including 181 days to and
including 365 days
2,010
53%
-
1,065
945
2,546
54%
-
1,378
1,168
- from and including 366 days up to
two years
5,427
85%
-
4,604
823
4,387
79%
-
3,461
926
- over two years
5,438
99%
-
5,368
70
4,894
98%
-
4,786
108
- trade receivables in insolvency
proceedings
3,771
100%
-
3,771
0
4,135
100%
-
4,127
8
Total trade receivables past due
33,624
-16,141
17,483
33,220
-15,177
18,043
Other trade receivables
8, 264
-8
8,256
6,173
-8
6,165
Total receivables
191,396
-16,944
174,452
195,985
0
-15,968
180,017
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
259
Maturity analysis of receivables of Telekom Slovenija as at the reporting date
31 Dec 2021
31 Dec 2020
in EUR thousand
Gross
amount
Expected
% of credit
losses
Impairment
Net
amount
Gross
amount
Expected
% of credit
losses
Impairment
Net
amount
Total trade receivables
172,901
-13,111
159,790
183,301
-12,532
170,769
Trade receivables not past due
148,256
0.5%
-799
147,457
157,096
0.5%
-798
156,298
Past due
-up to and including 30 days
6,995
5%
-338
6,657
8,512
4%
-340
8,172
- from including 31 days to and
including 60 days
2,765
9%
-
262
2,503
3,276
9%
-
295
2,981
- from and including 61 days to and
including 90 days
988
10%
-94
894
647
9%
-58
589
- from including 91 days to and
including 180 days
1,093
49%
-
540
553
1,284
49%
-
629
655
- from including 181 days to and
including 365 days
1,686
49%
-
834
852
2,279
49%
-
1,117
1,162
- from and including 366 days up to
two years
2,744
70%
-
1,926
818
2,047
60%
-
1,228
819
- over two years
5,242
99%
-5,184
58
4,617
98%
-4,524
93
- trade receivables in insolvency
proceedings
3,132
100%
-
3,134
-2
3,543
100%
-
3,543
0
Total trade receivables past due
24,645
-12,312
12,333
26,205
-11,734
14,471
Other trade receivables
6,882
0
6,882
6,230
0
6,230
Total receivables
179,783
-
13,111
166,672
189,531
-
12,532
176,999
Expected credit losses arising from trade receivables not past due are estimated at 0.50% (same as in
2020).
The Telekom Slovenije Group and the Company also monitor credit risks in other segments of
business operations. Bank balances are allocated according to the principles of risk minimization and
tracking proper bank diversification, which is why the concentration risk is low. The risk is low, as, due
to the stability of the banking system and high liquidity of banks, there is no major risk in terms of bank
balances. The expected credit losses for cash and cash equivalents are therefore not recorded, as
they are assessed as insignificant also in terms of their cash diversification among banks.
The Group is also exposed to risk in relation to receivables from loans to employees and to
investments in short-term deposits. The lending risk is low, as these loan repayments are mostly
settled through payroll, whereas risk in deposits is managed through tracking the individual banks’
credit rating. Expected credit losses are not recorded for these investments, as they are assessed as
insignificant given the amount of assets.
Telekom Slovenije is exposed to credit risk arising from receivables from loans granted to subsidiaries.
For the loans granted, the company estimated that there was no significant increase in credit risk,
therefore impairments for credit losses are measured on the basis of expected credit losses over a 12-
month period (Phase 1). In this respect, the company did not form an impairment in 2021, as the
estimated expected credit losses are insignificant.
The Company regularly monitors and supervises the operations of its subsidiaries and their ability to
repay loans, thus additionally mitigating the related credit risk. It additionally manages the risk of
diverse insurance instruments in loan contracts and regularly monitors whether the investment is
covered by insurance. Loans granted are disclosed in more detail in Chapter 19. Other investments
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
260
Maturity of loans granted
Telekom Slovenije Group
Telekom Slovenije
in EUR thousand
31 Dec 2021
31 Dec 2020
31 Dec 2021
31 Dec 2020
Past due
0
6
0
6
Not past due:
82
158
66,171
78,396
- in less than 3 months
15
15
2,604
323
- between 3 and 12 months
23
40
9,573
17,085
- between 1 and 2 years
19
40
9,336
9,582
- between 2 and 5 years
23
53
39,366
44,358
- over 5 years
2
10
5,292
7,048
Total
82
164
66,171
78,402
Maturity analysis of loans granted as at 31 Dec 2021
Telekom Slovenije Group
Past due
in EUR
thousand
Not past
due:
Less than 3
months
between 3
and 12
months
between
1 and 2
years
between
2 and 5
years
over 5
years
Total
Loans granted
82
0
0
0
0
0
82
Telekom Slovenije, d.d.
Past due
in EUR
thousand
Not past
due:
Less than 3
months
between 3
and 12
months
between
1 and 2
years
between
2 and 5
years
over 5
years
Total
Loans granted
66,171
0
0
0
0
0
66,171
Maturity analysis of loans granted as at 31 Dec 2020
Telekom Slovenije Group
Past due
in EUR
thousand
Not past due:
Less than
3 months
between 3
and 12
months
between
1 and 2
years
between
2 and 5
years
over 5
years
Total
Loans
granted
158
6
0
0
0
0
164
Telekom Slovenije
Past due
in EUR
thousand
Not past due:
Less than
3 months
between 3
and 12
months
between
1 and 2
years
between
2 and 5
years
over 5
years
Total
Loans
granted
78,396
6
0
0
0
0
78,402
Liquidity risk
The Telekom Slovenije Group regularly settles its liabilities. The Group's liquidity is the result of active
planning and managing of cash flows, provision of appropriate maturity and financial debt
diversification, financing within the Group, and the optimisation of working capital and cash. The
liquidity risk on the Group level is managed by the controlling company, which plans and monitors the
cash requirements of subsidiaries and provides them with the necessary funds.
Indebtedness at the Group and the Company level is relatively low. The majority of the Group’s
financial liabilities are accounted for by two non-current syndicated loans in the total amount of EUR
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
261
309.9 million, non-current loan from the European Investment Bank in the amount of EUR 40 million
and liabilities from lease in the amount of EUR 66.6 million and EUR 73.7 million at the Group and
Company level, respectively. The Group and the Company are regularly repaying their financing
obligations.
Upon their maturity in June 2021, Telekom Slovenije repaid the issued 5-year bonds in the amount of
EUR 100 million, and the repayment source was a new non-current syndicated loan from domestic
banks in the amount of EUR 130 million. The remaining part of the loan was drawn in December for
the purpose of investment funding in order to further pursue the set strategy of non-current loan
obligations
In addition to repaying the bonds, the company also repaid EUR 35.5 million of non-current loan
obligations.
In order to ensure a high level of liquidity with banks, the Group has open current credit lines, which
are renewed according to anticipated needs. The total liquidity reserve in the form of granted, undrawn
current revolving credit lines with banks amounted to EUR 74 million at the end of 2021. In addition,
Telekom Slovenije has revolving credit lines open with subsidiaries in the amount of EUR 8.5 million,
so that at the end of the year its liquidity reserve in the form of unused credit lines amounted to EUR
81.1 million. Furthermore, part of the European Investment Bank's non-current loan in the amount of
EUR 60 million has not yet been drawn; the company has the option of drawing it until the end of
2023.
Maturity of liabilities of the Telekom Slovenije Group as at 31 Dec 2021 and 31 Dec 2020 based on
contractual, undiscounted payments
in EUR thousand
Up to 3
months
between 3
and 12
months
between 1
and 2 years
between 2
and 5 years
Over 5
years
Total
Book value of
liabilities
31 Dec 2021
Loans and
borrowings
12
44,772
136,416
79,863
103,976
365,039
349,927
Other financial
liabilities
0
2
88
0
0
90
90
Trade and other
payables
101,285
29,670
9,874
2,216
6,365
149,410
149,410
Financial liabilities
from lease
4,714
6,710
9,125
20,196
39,238
79,983
66,556
Total
106,011
81,154
155,503
102,275
149,579
594,522
565,983
31 Dec 2020
Loans and
borrowings
17
35,471
33,494
156,602
0
225,584
216,885
Other financial
liabilities
159
103,047
244
0
0
103,450
101,500
Trade and other
payables
108,839
10,220
9,313
18,988
10,594
157,954
157,954
Financial liabilities
from lease
5,783
6,401
8,633
22,105
40,229
83,151
69,272
Total
114,798
155,139
51,684
197,695
50,823
570,139
545,611
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
262
Maturity of liabilities of Telekom Slovenije as at 31 Dec 2021 and 31 Dec 2020 based on contractual,
undiscounted payments
in EUR thousand
Up to 3
months
between 3
and 12
months
between 1
and 2 years
between 2
and 5 years
Over 5
years
Total
Book value of
liabilities
31 Dec 2021
Loans and
borrowings
12
46,172
136,416
79,863
103,977
366,440
351,327
Other financial
liabilities
0
0
88
0
0
88
88
Trade and other
payables
98,012
18,369
9,874
2,215
192
128,662
128,662
Financial liabilities
from lease
5,098
7,917
10,862
25,951
37,934
87,762
73,697
Total
103,122
72,458
157,240
108,029
142,103
582,952
567,839
31 Dec 2020
Loans and
borrowings
28
48,522
33,494
156,602
0
238,646
229,887
Other financial
liabilities
159
103,045
244
0
0
103,448
101,498
Trade and other
payables
99,769
9,986
10,551
10,045
260
130,611
130,611
Financial liabilities
from lease
6,072
7,772
10,762
27,065
40,997
92,668
78,753
Total
106,028
169,325
55,051
193,712
41,257
553,373
540,749
Interest rate risk
Interest rate risk is the risk of a negative impact of changes in market interest rates on the Group’s
operations. As at 31 December 2021, the Group's interest rate exposure arises from the possible
increase in the Euribor reference interest rate, relating to interest-sensitive liabilities.
In the structure of the Group's financial liabilities
117
as at 31 December 2021, the liabilities relating to
borrowings, which bear interest at variable interest rates linked to 6-month Euribor, account for a
74,4% share (72.9% at the Company level). The remaining liabilities arise from the non-current loan
tranche and the lease with a fixed interest rate.
In order to partially hedge against interest exposure arising from the non-current syndicated loan, the
repayment deadline of which is 31 December 2025, the Group and the Company have in place an
interest rate swap in the amount of 50% of one out of three tranches of the loan. As at 31 December
2021, the amount of hedged principal added up to to EUR 11.5 million. By hedging the interest rate
exposure through the use of an interest rate swap (IRS swap), the Group and the company is partially
hedging future cash flows against the risk of an increase in the interest rate. The principal is hedged
for the growth of the reference interest rate, should the latter be greater than or equal to zero. At the
Group level, it has a fixed or hedged interest rate of 28.4% of financial debt, and 29.8% at the
Company level.
The Group and the Company use hedge accounting for concluded interest rate swaps. Hedged items
and hedging instruments form an effective hedging ratio (hedging performance ranges between 80%
and 125%), which is why valuation effects are disclosed in other comprehensive income.
117
Considered loan principals and finance lease
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
263
Exposure to interest rate risk
Telekom Slovenije Group
Telekom Slovenije
in EUR thousand
31 Dec 2021
31 Dec 2020
31 Dec 2021
31 Dec 2020
Financial instruments with variable
interest rate
Financial liabilities
298,352
147,654
298,352
147,654
Net financial liabilities
298,352
147,654
298,352
147,654
The table is exclusive of non-interest-bearing financial instruments and instruments bearing a fixed
interest rate, as they are not exposed to interest rate risk. It also does not include financial liabilities
with hedged interest rate for Euribor growth.
Sensitivity analysis
The following table illustrates the sensitivity analysis of the changed interest rate on the Group’s and
the Company’s profit as at the reporting date, whereby all other variables are constant.
Interest rate risk table
2021
Interest rate increase/decrease
Effect on profit before tax in EUR thousand
Telekom Slovenije Group
Telekom Slovenije, d.d.
EURO
+100 bt
-1,282
-1,282
EURO
-100 bt
-115
-115
2020
Interest rate increase/decrease
Effect on profit before tax in EUR thousand
Telekom Slovenije Group
Telekom Slovenije, d.d.
EURO
+100 bt
-202
-202
EURO
-100 bt
-692
-692
EURIBOR interest rate values
EURIBOR
Value as at 31 Dec 2021
Value as at 31 Dec 2020
Change in %
6-month
-0.544
-0.523
-4.02
Capital management
The key objectives of the Group’s and the Company’s capital management are capital adequacy and,
consequently, long-term liquidity as well as financial stability, which ensures the best possible credit
rating for further financing of the Group's and the Company’s operations and development and thereby
maximising shareholder value.
The Group and the Company monitor changes in equity by using a debt-to-equity ratio and equity-to-
total assets ratio indicators. The Group’s net financial liabilities include borrowings and other financial
liabilities less current investments and cash with cash equivalents. When adopting decisions relating to
capital management, the Group also follows the financial covenants under loan contracts.
Telekom Slovenije Group
Telekom Slovenije
in EUR thousand
31 Dec 2021
31 Dec 2020
31 Dec 2021
31 Dec 2020
Borrowings and other financial liabilities
415,684
387,056
424,223
409,550
Less current investments, cash and cash
equivalents
-
16,675
-
8,679
-
15,931
-
19,500
Net financial liabilities
399,009
378,377
408,292
390,050
Equity
600,431
590,484
612,241
605,784
Total assets
1,250,339
1,227,839
1,237,941
1,226,566
Debt/equity ratio
66.5%
64.1%
66.7%
64.4%
Equity/total assets ratio
48.0%
48.1%
49.5%
49.4%
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2021
264
45. General authorisation and the right to use radio frequency and numbers
Fixed-line and mobile phone services
The Group and the Company hold a general authorisation for providing the electronic communications
network or electronic communication services. Prior to the commencement of the provision of public
communication network services, a written notification must be provided to the Communications
Networks and Services Agency of the Republic of Slovenia (hereinafter: the Agency). Before the
commencement of the service stemming from the notification, no explicit decision or administrative act
by a local administrative authority is required.
The Group paid an annual consideration for the following major electronic communications services:
radio frequency consideration for 2021;
consideration for the use of numbering resources for 2021;
consideration based on a decision of 2013, valid until 2021;
consideration based on the notice on the provision of services and networks
The amount of the consideration is determined by law and the tariff by the General Act of the Agency.
On an annual basis, the Group companies pay right-of-use fees for radio frequencies, telephony
numbering space, and other rights for rendering fixed-line and mobile phone services.
Telekom Slovenije Group’s total amount of fees in 2021 equalled EUR 3,357 thousand (in 2020 EUR
3,434 thousand), and of Telekom Slovenije EUR 1,727 thousand (in 2020 EUR 2,034 thousand),
respectively.
The Group Telekom Slovenije's concessions for mobile phone services
Date of
authorization
Period
Consideration in
EUR thousand
Concession contract for the use of the radio
frequency spectrum for the provision of
services UMTS/IMT-2000
27: Nov 2001
until 21 September
2021
91,870
Decision on the allocation of radio frequencies
for LTE 800 MHz, UMTS 210 MHz
26 May 2014
from 31 May 2014
to 31 May 2029
26,769
Decision on the allocation of radio frequencies
for GSM 900 in 1800 MHz, LTE 2600 MHz
26 May 2014
from 4 Jan 2016
to 04 Jan 2031
37,705
Decision on the allocation of radio frequencies
at the 700 MHz, 1500 MHz, 3600 Mhz and 26
Ghz belt
15 June 2021
until 15 June 2036
28,524
Decision on the allocation of radio frequencies
at the 2100 Mhz band
22 Sep 2021
until 22 Sep 2036
19,239
Decision on the allocation of radio frequencies
at the 2100 Mhz band
9 April 2023
until 9 April 2036
4,315
Concession contract for the installation,
maintenance of and operation of the second
generation GSM in the mobile network in the
territory of Kosovo
6 March 2007
until 5 March 2022
75,000
Renewal of permit for the frequency 900 MHz,
1800 MHz in Kosovo
30 July 2019
until 30 July 2039
11,734
Granting of 2x5MHz (1730–1735 MHz &
1825
–1830MHz) license at the 1800 Mhz
frequency band
7 January 21
until 7 Jan 2039
1,355
Concessions shown in the table which refer to Slovenia are held by Telekom Slovenije, whereas
concessions in Kosovo are held by IPKO.
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46. Events after the reporting date
• Top Employers Institute, an international professional standard bearer in recognising
excellency in human resource practices, awarded Telekom Slovenije the Top Employer 2022
recognition. Companies that receive the Top Employer title are listed among the most
desirable employers and demonstrate a dedication to constantly improving their work
environment through excellent human resource practices and employee development
programmes.
• Telekom Slovenije has concluded a contract with Ilirika borzno posredniška hiša d. d.,
Ljubljana, a member of the Ljubljana Stock Exchange for market making services for shares of
Telekom Slovenije, d.d. (TLSG shares). The provision of services will begin on 1 February
2022, and complements other Telekom Slovenije's activities in the field of investor relations.
The contract for market making services for shares of Telekom Slovenije concluded with
Interkapital vrijednosni papiri d.o.o., a member of the Ljubljana Stock Exchange, will expire as
of 1 February 2022.
• The operations of Telekom Slovenije Group are not directly tied to the Russian or Ukrainian
market, and therefore it is our assessment that the conflict between these two countries
should not have a significant direct impact on cash flows and financial resources of the Group;
however, we will experience indirect impacts, such as higher prices of fuels and electricity.
The group is also exposed to individual risks in the supply chain, as there might be a scarcity
of certain materials, required for manufacturing devices and other technical products, and
consequently also delays in supply or higher prices. We are carefully monitoring the situation,
and will continue to, and adjust our activities, if needed.
The changed global conditions increase the cybersecurity risks, and consequentially our activities
are focused on ensuring the highest levels of security, reliability, confidentiality and risk
management in this area. Telekom Slovenije’s Cyber Security Operations Centre monitors
security incidents 24/7/365, analyses and assesses the information that we receive from
different sources regarding potential threats. At the global level we collaborate with different
organisations and adopt additional measures for increasing security both of our services, as
well as the services we provide to our subscribers, with our full cyber response team at high
alert.
As a socially responsible company Telekom Slovenije uses its financial and other resources to
responsibly respond to humanitarian, healthcare and other circumstances where we can help
those in need. We donated €20,000 to the Ljubljana – Kiev Culture Association to help
Ukrainians, and also gifted the Association SIM cards with credit for those who have come to
Slovenia from Ukraine and are now living with relatives and friends. On 25 February we began
providing free calls from its mobile and fixed networks to mobile and fixed networks in Ukraine,
and we provided our call centre for collecting funds during the Together for Ukraine charity
concert, which took place on 8 March. Our employees also participate in humanitarian
activities, and this time they are collecting food, toiletries and other necessities.
• In line with the treasury shares buyback programme from 4 Nov 2021, Telekom Slovenije
acquired 6,836 treasury shares from 1 January 2022 and including 18 March 2022. At the end
of this period, Telekom Slovenije owned 36,836 treasury shares, which amounts to 0.56 % of
all shares.
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3.3 Independent auditor’s report for the Telekom Slovenije Group and
Telekom Slovenije
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4 APPENDIX
4.1 Telekom Slovenije Group companies
Telekom Slovenije, d. d. is the parent company of the Telekom Slovenije Group.
Company: Telekom Slovenije, d. d.
Registered office: Ljubljana
Address: Cigaletova ulica 15, 1000 Ljubljana
Registration number: 5014018000
VAT ID number: SI98511734
Entry in the companies register: 1/24624/00, Ljubljana District Court
Number of shares: 6,535,478
Ticker symbol of no-par-value shares: TLSG
Telephone: +386 1 234 10 00
Fax: +386 1 231 47 36
Website: http://www.telekom.si/en
Email: info@telekom.si
LinkedIn: https://www.linkedin.com/company/telekom-slovenije
Facebook: https://sl-si.facebook.com/TelekomSlovenije
Twitter: @TelekomSlo
Instagram: Telekom_Slovenije
YouTube: TelekomSlovenije
Subsidiaries in the Group
Companies in Slovenia
Company: GVO, gradnja in vzdrževanje telekomunikacijskih omrežij, d. o.
o.
Registered office: Ljubljana
Address: Cigaletova ulica 10, 1000 Ljubljana
Telephone: +386 1 234 1950
Website: www.gvo.si/en/
Email: gvo@telekom.si
Company: GVO Telekommunikation GmbH
Registered office: DE 48683 Ahaus, Germany
Address: Schorlemer Straße 48
Company: OPTIC-TEL telekomunikacije, d. o. o
Registered office: Ljubljana
Address: Cigaletova 10, Ljubljana
Company: Infratel, telekomunikacijska infrastruktura, d. o. o.
Registered office: Ljubljana
Address: Cigaletova 10, Ljubljana
Company: Avtenta, napredne poslovne rešitve, d. o. o.
Registered office: Ljubljana
Address: Stegne 19, 1000 Ljubljana
Telephone: +386 1 583 68 00
Website: www.avtenta.si/en
Email: prodaja@avtenta.si, marketing@avtenta.si
Company: TSmedia, medijske vsebine in storitve, d. o. o.
Registered office: Ljubljana
Address: Cigaletova 15, 1000 Ljubljana
Telephone: +386 1 473 00 10
Website: https://www.tsmedia.si/home/
Email: info@tsmedia.si
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Company: Soline Pridelava soli, d. o. o.
Registered office: Seča
Address: Seča 115, 6320 Portorož/Portorose
Telephone: +386 5 672 13 43
Website: www.soline.si/en
Email: info@soline.si
Company: TSinpo, storitveno in invalidsko podjetje, d. o. o.
Registered office: Ljubljana
Address: Litostrojska cesta 58A, 1000 Ljubljana
Telephone: +386 1 500 60 60
Website: www.tsinpo.si
Email: info@tsinpo.si
Companies abroad
Company: IPKO Telecommunications LLC
Registered office: Prishtina, Kosovo
Address: Lagija Ulpiana
Rruga Zija Shemsiu Nr. 34, Prishtina
Telephone: +381 38 700 700
Website: www.ipko.com
Email: info@ipko.com
Company: SIOL, d. o. o.
Registered office: Zagreb, Croatia
Address: Margaretska 3
Website: http://www.siol.com/
Company: SiOL, d. o. o., Sarajevo
Registered office: Sarajevo, Bosnia and Herzegovina
Address: Fra Anđela Zvizdovića 1
Company: SIOL, d. o. o., Podgorica
Registered office: Podgorica, Montenegro
Address: Džordža Vašingtona 108/36A, The Capital Plaza
Company: SIOL DOOEL Skopje
Registered office: Skopje, North Macedonia
Address: Dimitrie Chupovski 22A-1/13
Company: SIOL, d. o. o., Belgrade-Palilula
Registered office: Belgrade, Serbia
Address: 27. marta 11
Company: SIOL Prishtina L.L.C.
Registered office: Prishtina, Kosovo
Address: Pejton, Str. Mujo Ulqinaku 5/1
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4.2 Abbreviations of technical terms
Abbreviation
English term
Slovene translation
2G (GSM)
Global System for Mobile
Communication
Globalni sistem
mobilnih komunikacij
3G (UMTS)
Universal Mobile Telecommunications
System
Univerzalni mobilni telekomunikacijski
sistem/protokol 3G
4G (LTE)
Long
-Term Evolution
LTE/4G, post LTE/4G, po 3 GPP mobilnem
standardu
4G (LTE
-
A)
Long
-Term Evolution Advanced
LTE/4G z višjo prenosno hitrostjo podatkov (več
kot 300 Mb/s)
5G
5th generation mobile network
Mobilno omrežje pete generacije
AKOS
Agency for Communication Networks
and Services of the Republic of Slovenia
Agencija za komunikacijska omrežja in storitve
RS
APM
Alternative Performance Measures
alternativna merila uspešnosti poslovanja
ARKEP
Regulatory Authority of Electronic and
Postal Communications of Kosovo
Agencija za elektronske in poštne komunikacije
Kosova
ARPU
Average Revenue Per User
Povprečni prihodek na uporabnika
ARSO
Slovenian Environment agency
Agencija republike Slovenije za okolje
AVK
Slovenian Competition Protection
Agency
Javna agencija Republike Slovenije za varstvo
konkurence
BCaaS
Business Connect as a Service
Sodobna rešitev za upravljanje z
dokumentarnim gradivom kot storitev
GDP/BDP
Gross Domestic Product
Bruto domači proizvod
BSS
Business Support System
Sistem za podporo poslovanju
BSS/OSS
Business/Operational Support System
Sistem za podporo poslovnega procesa /
sistemi za operativni podporni proces
Cloud services
Storitve v oblaku
Cross
-sales
Navzkrižna prodaja
CAGR
Compound Annual Growth Rate
Povprečni letni prirast
CAPEX
Capital Expenditure
Vrednost investicij
COSO ERM
Committee of Sponsoring Organizations
of the Treadway Commission, Enterprise
risk management Integrated Framework
Odbor sponzorskih organizacij Treadwayeve
komisije, Upravljanje tveganj v organizaciji v
povezavi s strategijo in delovanjem organizacije
CRM
Customer Relationship Management
Sistemi za upravljanje z uporabniki
CSI
Customer Satisfaction Index
Indeks zadovoljstva uporabnikov
DDOS
Distributed Denial of Services
Porazdeljena zavrnitev
storitve
DTV
Digital television
Digitalna TV
DWDM
Dense Wavelength Division Multiplex
Gosti valovni multipleks
EBIT
Earnings before interest and taxes
Dobiček iz poslovanja pred obrestmi in davki
EBITDA
Earnings before interest, taxes,
depreciation and amortisation
Dobiček iz poslovanja pred obrestmi, davki in
amortizacijo
EFQM
European Foundation for Quality
Management
Evropska nagrada za poslovno odličnost
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Abbreviation
English term
Slovene translation
ERP
Enterprise Resource Planning
poslovni informacijski sistem
ESMA
European Securities and Markets
Authority
Evropski nadzorni organ za vrednostne papirje
in trge
EU
European Union
Evropska unija
FTTH
Fibre To The Home
Optično vlakno do doma
FTTx
Fibre To The Exchange
Optika do X
FURS
Financial Administration of the Republic
of Slovenia
Finančna uprava RS
GDPR
General Data Protection Regulation
Splošna uredba o varstvu osebnih podatkov
COBN/GOŠO
Construction of open broadband network
Gradnja odprtega širokopasovnega omrežja
(bele lise – subvencionirano s sredstvi EU)
GPON
Gigabit Passive Optical Network
Gigabitno pasivno optično omrežje
GRI
Global Reporting Initiative
Pobuda za globalno poročanje
IFRS/MSRP
International Financial Reporting
Standards
Mednarodni standardi računovodskega
poročanja
ICT/IKT
Information and Communication
Technologies
Informacijsko komunikacijske tehnologije
IMF WEO
International Monetary Fund World
Economic Outlook
Mednarodni denarni sklad
INA
Intelligent Automotive Network
Applications
Inteligentne avtomobilske omrežne aplikacije
IoT
Internet of Things
Internet stvari
IP TV / IPTV
IP television
Televizija prek internetnega protokola
ISO
International Organization for
Standardization
Mednarodna organizacija za
standardizacijo
IT
Information technology
Informacijska tehnologija
ITSM Remedy
Incident Management System Remedy
Sistem za upravljanje napak
KFI
Key Financial Indicators
Ključni finančni indikatorji poslovanja
KDD
Central Securities Clearing Corporation
Centralna klirinško depotna družba
KPI
Key Performance Indicators
Ključni kazalniki poslovanja
SSNP/KPSS
Sečovlje Salina Nature Park
Krajinski park Sečoveljske soline
LTE
Long
-Term Evolution
LTE/4G, post LTE/4G, po 3 GPP mobilnem
standardu
LTE
-A
Long
-Term Evolution Advanced
LTE/4G z višjo prenosno hitrostjo podatkov (več
kot 300 Mb/s)
LTE
-M
Long Term Evolution Machine Type
Communication
LTE/4G s strojno komunikacijo
MEC
Multi
-Access Edge Computing
Sodostopno
računalništvo na robu
MOSS
Slovenian ranking reach of websites
Merjenje obiskanosti spletnih strani
MPLS
Multiprotocol Label Switching
Tehnologija za posredovanje, usmerjanje in
preklapljanje prometnih tokov skozi omrežje
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Abbreviation
English term
Slovene translation
MVNO
Mobile Virtual
Network Operator
Mobilni operater navideznega omrežja
NB
-IoT
Narrowband Internet of Things
Ozkopasovni internet stvari
NEO
Smart life platform that connects the best
home and entertainment solutions in one
place.
Platforma za pametno življenje na enem mestu
povezuje najboljše rešitve za dom in zabavo.
NPS
Net Promotor Score
Kazalnik lojalnosti naših uporabnikov
IA/NR
Internal Audit
Notranja revizija
NSA
Non Stand
-Alone
5G nesamostojna arhitektura
CSOC/OCKV
Cyber Security Operation Centre
Operativni center kibernetske varnosti
OPEX
Operational Expenditure
Stroški poslovanja brez amortizacije
OSS
Operational support system
Sistem za podporo delovanja
OTT
Over
-the-top content
Storitve, ki delujejo neodvisno od omrežja -
distribucija video- in avdiovsebin prek interneta
PaaS
Platform as a Service
Platforma kot storitev
PCTO
Punktum
Vrednost spora
PP
Appertaining amounts (principle,
accrued costs and interest)
Pripadki (glavnica, nastali stroški in obresti)
PPDR
Public Protection and Disaster Relief
Storitve javne varnosti
ROA
Return on Assets
Dobičkonosnost sredstev
ROADM
Reconfigurable Optical Add-Drop
Multiplexer
Nastavljiv optični multipleksor za dodajanje in
odvzemanje
ROE
Return on Equity
Dobičkonosnost kapitala
RON
Regional Optical Network
Regionalno optično omrežje
Small cell
Mala celica
SA
Stand
-Alone
5G samostojna arhitektura
SAP
Systems Applications and Products
Programska oprema za posel
SAPaaS
SAP as a service
SAP
aplikacija
SASB
Sustainability Accounting Standards
Board
Odbor za trajnostne računovodske standarde
GH/SB
General Hospital
splošna bolnišnica
SDG/ESG
Sustainable Development Goals
Cilji trajnostnega razvoja
SDH
Synchronous Digital Hierarchy
Sinhrona digitalna hierarhija
SLA
Service Level Agreement
Sporazum o ravni zagotavljanja storitve
SME/SOHO
Small and Medium Enterprises / Small
Office Home Office
Mala in srednja podjetja
SMS
Short Message Service
Storitev kratkih sporočil
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Abbreviation
English term
Slovene translation
SPLA
Service Provider Licence Agreement
Licenčni sporazum za ponudnika storitev
BCMS/SUNP
Business continuity management
system
Sistem upravljanja neprekinjenega poslovanja
SURS
Statistical Office of the Republic of
Slovenia
Statistični urad
Republike Slovenije
ISMS/SVVI
Information Security Management
System
Sistem vodenja varovanja informacij
TDM
Time Division Multiplex
Časovni multipleks, sistem s porazdeljevanjem
časa
TOM
Telephone
Phone for children and adolescents
Telefon za
otroke in mladostnike
TSLO
-
CERT
Telekom Slovenije Computer
Emergency Response Team
Odzivni center za kibernetsko varnost
Telekoma Slovenije
Up
-sale
Nadgradnja storitev
UMC/UKC
University Medical Centre
Univerzitetni klinični center
COPO
Capitalised own production overheads
Usredstvena lastna režija
UMAR
Institute of Macroeconomic Analysis and
Development
Urad za makroekonomske analize in razvoj
UMTS/HSPA
Universal Mobile Telecommunications
System/High Speed Packet Access
univerzalni mobilni telekomunikacijski
sistem/protokol 3G, ki pomeni nadgradnjo
omrežja UMTS in omogoča večje prenosne
hitrosti
VALÚ
Advanced financial service that
facilitates payments with a mobile phone
at numerous payment points with the
VALÚ mark.
Napredna finančna storitev, ki omogoča
plačevanje z mobilnim telefonom na številnih
plačilnih mestih z oznako VALU.
VDSL
Very High
-
Speed Digital Subscriber Line
Digitalni naročniški vod z zelo visokimi hitrostmi
VFN
Virtual Network Function
Funkcija navideznega omrežja
VoIP
Voice over IP
Govor prek IP
-protokola
Wi
-Fi
Wireless Fidelity
Brezžično omrežje po standardih IEEE 802.11
XGS
-PON
Technology that can deliver upstream
and downstream (symmetrical) speeds
Tehnologija, ki omogoča prenašanje podatkov
od in k uporabniku v enakih hitrostih
ZGD
Companies Act
Zakon o gospodarskih družbah
ZPPOGD
Act Governing the Remuneration of
Managers of Companies with Majority
Ownership held by the Republic of
Slovenia or Self
-
Governing Local
Communities
Zakon o prejemkih poslovodnih oseb v
gospodarskih družbah v večinski lasti
Republike Slovenije in samoupravnih lokalnih
skupnostih
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4.3 Alternative performance measures
The Telekom Slovenije Group also uses the Alternative Performance Measures (APMs) defined by the
ESMA to present its operating results.
The Telekom Slovenije Group also uses APMs to plan the operations of organisational units,
subsidiaries and the Group, in reporting for the internal needs of monitoring the implementation of plans,
and for setting of the objectives of organisational units and individuals for the needs of the remuneration
system.
Items are expressed in values rounded to the nearest one thousand, except where it is stated that a
measure is given in euros. The number of employees based on hours worked is not calculated for the
Telekom Slovenije Group. The average number of employees is thus calculated based on the balance
at the beginning and end of the period.
All proportions are expressed in percentages, generally rounded to one decimal place, or as the ratio
between two categories.
Alternative performance measures are disclosed between key operating highlights and are as follows:
Alternative
performance
measure
Calculation methodology
Selection of measure
EBIT (earnings
before interest and
taxes)
Operating revenues – operating
expenses
One of the key indicators of the
performance of a company, and
an indicator of the profitability
that a company achieves in the
performance of its core activity.
Adjusted EBIT
(operating profit)
Operating revenues – operating
expenses taking into account one-off
events that are not part of ordinary
operations, such as one
-
time
impairments of assets, adjustments for
IFRS 16, etc.; stated under the
calculation table.
We eliminate the effects of one-
off events for the sake of
consistency and the
comparability of operations with
the previous year.
EBITDA (earnings
before interest,
taxes, depreciation
and amortisation)
EBIT + depreciation and amortisation
Operating profit or loss before
write
-
downs. Indicator of the
performance of a company in its
core activity and a good
approximation of cash flows from
operating activities.
Adjusted EBITDA
EBIT + depreciation and amortisation
taking into account adjustments for
one
-
off events that are not part of
ordinary operations, such as one
-
time
impairments of assets, adjustments for
IFRS 16, etc.; stated under the
calculation table.
We eliminate the effects of one-
off events for the sake of
consistency and the
comparability of operations with
the previous year.
EBITDA margin as a
proportion of sales
revenue (%)
EBITDA / sales revenue x 100
Measure of commercial success
and profitability.
EBITDA margin as a
% of operating
revenues
EBITDA / operating revenues x 100
Measure of commercial success
and profitability.
The measure is used by SDH to
measure the performance of
companies with capital assets of
the state.
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Alternative
performance
measure
Calculation methodology
Selection of measure
Adjusted net profit or
loss
Net profit or loss after taxes taking into
account adjustments for one
-
off events
that are not part of ordinary operations,
such as one
-
time impairments of
assets, adjustments for IFRS 16, etc.;
stated under the calculation table.
We eliminate the effects of one-
off events for the sake of
consistency and the
comparability of operations with
the previous year.
EBITDA – CAPEX
EBITDA – value of investments in the
acquisition of property, plant and
equipment
and intangible assets
Indicator of free cash flow.
Ratio of (EBITDA –
CAPEX) to EBITDA
(cash margin)
(EBITDA – value of investments in the
acquisition of property, plant and
equipment and intangible assets) /
EBITDA
Leverage ratio
Equity ratio
Equity financing ratio
Distributed economic
value
Operating costs + labour costs +
dividends + corporate income tax
Scope of generated assets
divided amongst stakeholders.
Value added
Labour costs + finance costs + pre-tax
profit
Operating results that are
allocated to: employees in the
form of wages and
reimbursements; to lenders and
creditors in the form of interest
and other fees; to owners in the
form of dividends and other
types of compensation; to a
company through the creation of
reserves and retained earnings,
and to the state in the form of
taxes.
Value added per
employee (in EUR)
((Value added / (number of employees
at the beginning of the period + the
number of employees at the end of the
period) / 2)) x 1,000
Productivity ratio that indicates
how much value, on average,
relates to a single employee in a
given period.
Gross added value
per employee
((Gross operating profit – costs of
goods, materials and services
–
other
operating expenses) / ((number of
employees at the beginning of the
period + the number of employees at
the end of the period) / 2)) x 1,000
Basic economic indicator and
basic measure of economic
activity and success. Represents
the newly generated value of a
company in a given period.
The measure is also used by
SDH to measure the
performance of companies with
capital assets of the state.
Return on sales
EBIT / sales revenues
Indicator of a company’s pricing
policy and ability to control costs.
NFD (net financial
debt)
Non-current financial liabilities + current
financial liabilities
–
cash and cash
equivalents
–
current financial assets
Current and non-current financial
liabilities, less liquid assets that
can be used to repay those
liabilities.
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Alternative
performance
measure
Calculation methodology
Selection of measure
Net financial debt to
EBITDA ratio
NFD / EBITDA
Ratio that indicates how many
years would be required to repay
financial debt from existing liquid
assets and cash flows from
operating activities, assuming
the same level of operations and
profitability
ROA (net return on
assets) in %
Net profit or loss / (value of assets on
first day of period + value of assets on
last day of period) / 2) x 100
Indicator of a company’s
efficiency in the management of
assets available to generate a
profit.
ROE (net return on
equity) in %
Net profit or loss / (value of equity on
first day of period + value of equity on
last day of period) / 2) x 100
Indicator of a company’s
efficiency in the generation of
profit from sources provided by
owners and/or shareholders.
The measure is also used by
SDH to measure t
he
performance of companies with
capital assets of the state.
CAPEX as a
proportion of
operating revenues
(Gross) outflows for the acquisition of
property, plant and equipment and
intangible assets / operating revenues.
The measure is also used by
SDH to measure the
performance of companies with
capital assets of the state.
Sponsorships and
donations as a
pr
oportion of net
sales revenue
Sponsorships and donations / net sales
revenue
Indicator of the value of a
company’s investments in the
social environment.
The measure is also used by
SDH to measure the
performance of companies with
capital assets of the state.