Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
Annual report
of the Telekom Slovenije Group and
Telekom Slovenije, d.d.
for 2022
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 2022
Contents
1. TELEKOM SLOVENIJE GROUP IN 2022 ..................................................................................................... 2
1.1. About the Telekom Slovenije Group ................................................................................... 2
1.2. About the annual report ....................................................................................................... 4
1.3. Material impacts on the operations of the Telekom Slovenije Group ............................. 5
1.4. Achievement of SDGs .......................................................................................................... 8
1.5. Inclusion and participation of stakeholders .................................................................... 12
1.6. Operating highlights of the Telekom Slovenije Group in 2022 ...................................... 16
1.7. Significant achievements of the Telekom Slovenije Group in 2022 .............................. 20
2. LETTER FROM THE PRESIDENT OF THE MANAGEMENT BOARD ...................................................... 22
3. LETTER FROM THE PRESIDENT OF THE SUPERVISORY BOARD ...................................................... 25
4. DEVELOPMENT STRATEGY AND PLANS ............................................................................................... 27
4.1. Vision, mission and values ................................................................................................ 27
4.2. Business model of the Telekom Slovenije Group ........................................................... 28
4.3. Strategic Business Plan of the Telekom Slovenije Group until 2026 and Annual Business
Plan for 2023 ......................................................................................................... 29
4.4. Strategic projects................................................................................................................ 31
4.5. Achievement of planned objectives by the Telekom Slovenije Group in 2022 ............ 33
5. CORPORATE GOVERNANCE STATEMENT ............................................................................................ 36
5.1. Corporate Governance Policy ........................................................................................... 36
5.2. Statement of compliance with the Code .......................................................................... 37
5.3. Management and supervisory bodies .............................................................................. 40
5.4. Other explanations in accordance with the Companies Act .......................................... 57
5.5. Statement of responsibility of the Management Board .................................................. 60
6. SHARE TRADING AND OWNERSHIP STRUCTURE ................................................................................ 61
7. OPERATIONS OF THE TELEKOM SLOVENIJE GROUP IN 2022 ............................................................ 66
7.1. Business environment and trends in the sector ............................................................. 66
7.1.1. Impact of the macroeconomic environment on operations ........................................... 66
7.1.2. Comparison of the Slovenian telecommunications sector with the EU ....................... 68
7.2. Risk management ............................................................................................................... 72
7.3. Financial results of the Telekom Slovenije Group .......................................................... 85
7.4. Financial performance of the Telekom Slovenije Group ................................................ 88
7.5. Investments in fixed assets ............................................................................................... 90
7.6. Marketing and sales ........................................................................................................... 91
7.6.1. Market and market shares in key service segments ...................................................... 91
7.6.2. Sales of the Telekom Slovenije Group ............................................................................. 96
7.6.3. Brands and market communications ............................................................................. 105
8. SUSTAINABLE ASPECTS OF THE TELEKOM SLOVENIJE GROUP’S OPERATIONS ........................ 108
8.1. Development and responsible governance of the Telekom Slovenije Group ............ 108
8.1.1. Development of the network, technologies and services ............................................ 108
8.1.2. Compliance, competition protection and auditing ....................................................... 115
8.1.3. Quality management systems ......................................................................................... 123
8.1.4. Protecting the Company, networks, systems and services......................................... 126
8.2. Concern for society .......................................................................................................... 127
8.2.1. #connected with the social environment ....................................................................... 127
8.2.2. #connected with users ..................................................................................................... 129
8.2.3. #connected with employees ............................................................................................ 137
8.3. Supply chain ...................................................................................................................... 154
8.4. Environmental impact ...................................................................................................... 157
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
8.4.1. Disclosures of indicators for economic activities that are included in the 2022 EU
Taxonomy .......................................................................................................................... 167
9. ACCOUNTING REPORT OF THE TELEKOM SLOVENIJE GROUP AND TELEKOM SLOVENIJE, D.D.
FOR 2022 .................................................................................................................................................. 174
9.1 Financial statements of the Telekom Slovenije Group and Telekom Slovenije......... 175
9.2 Notes to the consolidated financial statements of the Telekom Slovenije Group and
separate financial statements of the Company Telekom Slovenije ............................ 183
9.3 Independent auditor’s report for the Telekom Slovenije Group and Telekom Slovenije
............................................................................................................................................ 264
10. APPENDIX ...................................................................................................................................................... I
10.1. Telekom Slovenije Group companies .................................................................................. I
10.2. Abbreviations of technical terms ....................................................................................... III
10.3. Alternative Performance Measures ................................................................................. VII
10.4. Commitments and membership in associations .............................................................. X
10.5. Content according to GRI Reporting Standards ............................................................. XI
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
1
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
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1. TELEKOM SLOVENIJE GROUP IN 2022
1.1. About the Telekom Slovenije Group
1
Telekom Slovenije, d.d. (hereinafter: Telekom Slovenije) is the leading provider of comprehensive
communication services in Slovenia. It connects users and simplifies their lives, and ensures security through a
range of the most advanced ICT services and solutions.
The Telekom Slovenije Group operates in South-East Europe. In addition to being the national communications
operator in Slovenia, the Group is present through its subsidiaries in Kosovo, Croatia, Bosnia and Herzegovina,
Serbia, Montenegro and North Macedonia.
The activities of the Telekom Slovenije Group comprise:
• fixed and mobile communication services, and ICT solutions,
• digital and multimedia content and services,
• system integration and cloud computing services,
• the development and implementation of solutions for managing business content, and tools for managing
and monitoring operations,
• the construction and maintenance of telecommunication networks,
• cyber security and the Internet of Things (IoT),
• other services, such as financial services, eCare solutions, insurance, smart home, city, community and
industry solutions, and e-mobility,
• the production and sale of cardboard sleeves and packaging, and the control and upgrading of terminal
equipment, and
• 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: http://www.telekom.si
Email: info@telekom.si
LinkedIn: telekom-slovenije
Facebook: TelekomSlovenije
Instagram: Telekom_Slovenije
Twitter: @TelekomSlo
YouTube: TelekomSlovenije
TikTok: TelekomSlovenije
The shares of Telekom Slovenije are listed on the prime securities market of the Ljubljana Stock Exchange.
See section 6 Share trading and ownership structure for more information.
Contact for investors and shareholders
ir@telekom.si and skupscina@telekom.si
Contact for users
info@telekom.si
Contact for information regarding the annual report and sustainable development report
2
Corporate Communications: pr@telekom.si
1
GRI 2-1
2
GRI 2-3
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
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Markets and companies of the Telekom Slovenije Group
3
The Telekom Slovenije Group comprises the parent company Telekom Slovenije and its subsidiaries, and
operates in seven countries. The composition of the Telekom Slovenije Group and participating interests as at
31 December 2022 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 2022
There were no changes in the composition of the Telekom Slovenije Group or in the ownership of subsidiaries
in 2022. The liquidation of GVO Telekommunikation GmbH, which is owned by GVO, began in March 2022.
The completion of liquidation and the deletion of GVO Telekommunikation GmbH from the companies register
in Germany are expected during the first half of 2023.
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.
3
GRI 2-6
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1.2. About the annual report
4
Drafting of the report and scope of reporting
The annual report is prepared and coordinated by the Controlling and Corporate Communications
organisational units. 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 Group companies. 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 2022. Reporting on sustainable content relates to the Telekom
Slovenije Group, which comprises Telekom Slovenije, GVO, TSmedia, Soline, Avtenta, TSinpo and IPKO. For
content where standard reporting guidelines are not yet in place for the entire Group, we explain in each
specific case whether the content applies only to the parent company or a specific Group company. Financial
reporting relates to the parent company and its subsidiaries, as explained in Note 5 in the Financial Report.
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, the reasons for those changes are clarified in the
accompanying comments.
Statement regarding the non-financial operations of the Telekom Slovenije Group for 2022
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 (IFRS) and national legislation (Companies
Act – ZGD-1K).
Our progress in environmental, social, governance (ESG) and economic areas 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, while this report is compiled in accordance
with the GRI’s newest standards (Universal Standards, 2021). To that end, we also take into account the
previous generations of GRI recommendations for the ICT and IT sectors and the media. We also disclose in
the annual report our contribution to the sustainable development goals of the United Nations and 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 in line with the requirements of
the new Companies Act (ZGD-1K) adopted in 2021. When monitoring operations, we also take into account
Alternative Performance Measures (APM) in accordance with the ESMA Guidelines, and monitor legislation in
the area of non-financial reporting.
Telekom Slovenije has a permanent working group for sustainable operations that monitors legislation and
trends in the area of sustainable development, and proposes recommendations and measures in that area.
Disclosures of proportions 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 are published
in point 8.4.1 Disclosures of indicators for economic activities that are included in the 2022 EU Taxonomy.
4
GRI 2-2, 2-3, 2-4
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
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1.3. Material impacts on the operations of the Telekom Slovenije Group
5
We identify the impacts of the social, economic and natural environment that may have a material effect on our
operations or our ability to implement strategic policies through a stakeholder analysis and materiality
assessment. We defined stakeholder groups through various activities in previous years and included them in
Telekom Slovenije’s Corporate Governance Policy, which we explain in more detail in point 1.5 Inclusion and
participation of stakeholders. Through analysis, we prioritise our sustainability aspects, while striving to identify
and understand the relevance of such topics for our stakeholders.
A set of key sustainability topics was developed based on the recommendations of industry associations
(ETNO) and international sustainability reporting standards (GRI and SASB), perceived risks and changes in
regulatory requirements (CSRD and EU taxonomy), and by monitoring the best practices of
telecommunications operators. Such carefully selected and evaluated material topics, shown below in a
materiality matrix, guide our business processes and represent the basis for the development of key
performance indicators. They also represent guidance in the preparation of the content and scope of our
sustainability reporting.
We perform a stakeholder analysis and materiality assessment every year, while we expanded the circle of
internal and external stakeholders in 2022. A workshop was organised to update and assess material topics,
and was attended by 22 Telekom Slovenije employees (members of the working group for sustainable
operations, the directors of organisational units and experts in specific areas). We discussed the
appropriateness of existing sustainability topics and made adjustments as required. We included a new topic
among material topics (the protection of the Company’s assets), reformulated two topics (partnerships and risk
management in the supply chain and superior quality of the network and services) and eliminated one topic
(wide access to services and responsible infrastructure expansion), as it is already part of a related topic. We
assessed the proposed new topics in terms of their impact on the operations of the Telekom Slovenije Group.
The impact of material topics was then assessed by stakeholder groups via a questionnaire on Telekom
Slovenije’s website, and for the first time via specific-purpose quantitative questionnaires. That assessment
included 2,736 users (residential and business users, and the general public), 207 Group employees, 83
suppliers (including 13 foreign suppliers), 32 shareholders and investors, nine representatives of the local and
wider community, and two representatives of regulatory bodies.
5
GRI 3-1, 3-2
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Process of defining material topics and inclusion in the Telekom Slovenije Group’s operations
The persons responsible for preparing the content of the annual report were briefed on the results of the
process and assessment of material topics at a workshop attended by 48 employees from Slovenian Group
companies.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
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Materiality matrix for topics in connection with the sustainable operations of the Telekom
Slovenije Group
6
Material sustainability
aspects
Material sustainability topics
Impact of
topic for
the TSG
Importance
for
stakeholders
Trend
Superior user
experience
1
Cybersecurity
↑
2
Development of innovative products and services
↑
3
Superior quality of the network and services
●
4
Personal data protection
●
Responsible and
successful operations in
the long term
5
Successful operations in the long term
●
6
Effective corporate governance
●
7
Ethical and transparent operations
↑
8
Compliance
●
9
Respect for human rights
●
10
Protection of Company’s assets
●
Concern for talented
employees and a
stimulating work
environment
11
Attractive employment opportunities for perspective employees
↑
12
Training and personnel development
●
13
Healthy and safe working environment
●
14
Diversity and inclusion of employees, and equal opportunities
●
Digitalised and inclusive
society
15
Wide access to services and responsible infrastructure
expansion
●
16
Technological solutions for tackling today’s social challenges
↑
17
Promotion of digital literacy
●
18
Support for sport, culture, science and humanitarian causes
●
Mitigation of climate
change and the efficient
consumption of natural
resources
19
Energy efficiency and climate change
↑
20
Responsible consumption and protection of biodiversity
↑
21
Circular economy and waste management
↑
Comprehensive supply
chain management
22
Partnerships and risk management in the supply chain
↑
23
Management of sustainability aspects in the supply chain
↑
6
GRI 3-2
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
Impact on stakeholders
Impact of topic on the Telekom Slovenije Group
very high
very high
Supreme quality of
the network and
services
medium high
medium high
Cybersecurity
Development of
innovative products
and services
Personal data
protection
Successful
operations in the
long term
Effective
corporate
governance
Energy efficiency
and climate
change
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
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1.4. Achievement of SDGs
With their infrastructure and services, telecommunications companies play an important role in the achievement of the United Nations’ Sustainable Development
Goals (SDGs) as key content of that organisation’s Agenda 2030. We strive to include SDGs 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 set itself in that respect for 2022.
SDGs to which the Telekom Slovenije Group contributes through its operations
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
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Review of the achievement of the Telekom Slovenije Group’s 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.
• Services for vulnerable user groups: more
information in point 8.2.2.
• Employment and training of disabled persons:
more information in point 8.2.2.
• Sponsorship and donation activities: more
information in point 8.2.1.
• We return as much as possible to the social environment
and vulnerable groups. We ensure the security of users,
connections and systems in the digital world.
• We earmark 0.3% of revenues a year for sponsorships
and donations.
To achieve universal access to healthcare, high-
quality healthcare services, and safe, effective
and
affordable medicines.
• Smart system of integrated healthcare: more
information in point 4.4.
• Our aim is to provide eCare and telemedicine services to
10% of the Slovenian population older than 65 years
(around 40,000 users) by 2030.
To provide professional training in the area of
information and communication technology.
• Employee education and training in the area of
ICT.
• System of scholarships for secondary school and
university students, included in ICT study
programmes.
• Co-financing of school and study programmes in
the area of ICT.
See point 8.2.3 for more information.
• Telekom Slovenije has a total of 16 scholarship holders
during 2022/2023 scholastic year. We will maintain the
proportion of scholarship holders and secondary school
and university students included in practical training at
the same level in the future.
• We include young people in various projects in the
scope of their studies.
• We also support the multimedia study programme.
To ensure the full and effective participation of
women and equal management opportunities at
all levels.
• Diversity of members of the Management Board
and Supervisory Board: more in point 5.3
Management and supervisory bodies.
• We strive for diversity, equality, tolerance and mutual
respect in all areas. The proportion of women in
management positions at the Telekom Slovenije level is
at least the same as the proportion of employees
accounted for by women.
To improve energy efficiency.
• Efficient energy management system: more
information in point 8.4.
• To increase the proportion of electricity obtained from
low-carbon sources by 8 percentage points until 2026.
• We will increase the production of electricity with the
help of our own solar power plants.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
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SDG
Our efforts
Our objectives
To promote inclusive and sustainable economic
growth, full employment and decent work.
• Well-being and concern for the safety and health of
employees.
• Employment and training of disabled persons.
• Family-friendly company. See point 8.2.3 for more
information.
• We have made a commitment to respect human rights,
and drew up rules and appointed a human rights officer.
• In the scope of intergenerational cooperation, we
established a standard mentoring system with the aim of
retaining key knowledge at the Company. We ensure the
development of mentors and their skills.
To develop a high-quality, sustainable and reliable
infrastructure that will support economic and
social development.
• Development of technologies and networks; new
research and development projects. See point
8.1.1 for more information.
• We will cover 99% of the Slovenian population with 5G
technology by 2026.
• We will continue to connect an increasing number of
Slovenian households to the fibre optic network owned
by Telekom Slovenije until 2026.
To improve access to ICT and ensure an
affordable internet for all.
• Broad access to our services: more information in
point 8.2.2.
• We provide universal services in accordance with the
Telecommunications Act.
• We facilitate access to the telephone directory and
directory service.
• We implement measures for end-users from vulnerable
groups.
To promote sustainable urbanisation, and the
sustainable planning and management of cities.
To implement an integrated policy for inclusion,
the efficient use of resources and the mitigation of
and adaptation to climate change.
• Smart cities, smart factories and industry: more
information in points 4.4 and 8.1.1.
• We ensure the development of comprehensive smart
city and community solutions with the aim of managing
traffic flows, measuring air quality, managing the
infrastructure and effectively managing energy.
To achieve the sustainable management and
efficient use of natural resources.
• Efficient energy management system: more
information in point 8.4.
• Paperless operations: see point 8.4 for more
information.
• We will increase the proportion of electric cars in the
vehicle fleet by 2026.
• We will increase the proportion of all customer invoices
issued accounted for by e-invoices by 15 percentage
points until 2026.
To include measures to mitigate climate change in
policies, strategies and planning.
• Carbon footprint: see point 8.4 for more
information.
• We are reducing the carbon footprint from services and
technologies, in particular by increasing energy
efficiency.
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SDG
Our efforts
Our objectives
To ensure the preservation, restoration and
sustainable use of terrestrial and freshwater
ecosystems and the associated services, in
particular forests, wetlands, mountains and
drylands in accordance with obligations under
international treaties.
• Preservation of wetlands and other ecosystems in
the Sečovlje Salina Nature Park: see point 8.4 for
more information.
• We preserve natural and cultural heritage in accordance
with the Plan on the Management of the Sečovlje Salina
Nature Park.
To improve assess to science, technology and
innovations.
To increase the use of enabling technologies, in
particular ICT.
• Number of fixed broadband internet connections:
see point 7.6.2 for more information.
• Cooperation with secondary schools, faculties and
research institutions
• Markets and market shares by segment: see point
7.6.1 for more information.
• We will continue to connect an increasing number of
Slovenian households to the fibre optic network owned
by Telekom Slovenije until 2026.
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1.5. Inclusion and participation of stakeholders
7
We identified the Telekom Slovenije Group’s key stakeholders in previous years, and included them in the Corporate Governance Policy of Telekom Slovenije,
d.d. Key stakeholders 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. Through various approaches adapted to specific
stakeholder group, we strive for inclusive and long-term relationships through which we strengthen trust and cooperation.
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.
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 about
operations, business
activities and changes in
the value of TLSG shares.
– Investor relations section of the Company’s
website;
– General Meeting of Shareholders (at least once a
year);
– participation at investment conferences
(occasional);
– accessibility via ir@telekom.si,
skupscina@telekom.si;
– timely and clear publications of business and
internal information in the Ljubljana Stock
Exchange’s SEOnet system;
– publication of quarterly reports about operations;
– drafting of the electronic TLSG newsletter to
coincide with the publication of quarterly reports
about operations and the annual report;
– 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 organised two General Meeting of Shareholders.
– We paid shareholders gross dividends of EUR 4.50
per share in 2022.
Users
– Prompt fault clearance;
– security of personal data;
– superior quality networks
and the development of
services that meet their
needs and expectations;
– 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 via broad-reaching media
– We present users new services, the portfolio and
other content relevant to them via numerous
(physical, electronic and digital) channels.
– We cover more than 97% of the population with the
LTE/4G network, more than 84% of the population
with the LTE-A/4G+ network, and more than 40% of
7
GRI 2-29
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Stakeholders
What is most important to
them?
How they are included and frequency of contact
Activities
– security;
– best quality-to-price ratio;
– simple and prompt
communication with the
Group.
and communication via other channels (invoices,
direct mailing, catalogues, trade fairs, social
networks, promotions, special events, etc.);
– possibility of selecting a return call option to avoid
extended waits for responses to calls to the
contact centre;
– once a year through migration analyses and twice
a year through research according to the mystery
shopper principle;
– through annual user satisfaction research;
– regular contact through page view statistics;
– daily measurement of Net Promoter Score (NPS)
at touchpoints.
the population with the 5G network. We included an
additional 59 small cells for the needs of internal
coverage.
– In 2022, we received 440,485 calls and 162,655
emails from users, and made 8,114 video
identification calls. We are accessible by users via
the online chat features in Twitter and Facebook: we
recorded 13,015 such contacts in 2022. The digital
adviser Maks recorded 38,647 contacts, an increase
of 25% relative to 2021.
– We achieved a high transactional NPS (visit by a
technician in cooperation with technical support).
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
regular 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!) activities, 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 90.8% of Group employees were included
in education and training in 2022.
– Telekom Slovenije granted three company
scholarships during the 2021/2022 scholastic year. It
has a total of 16 scholarship holders, eight of whom
it has employed.
– Persons with a level VII education account for the
highest proportion of employees at the Telekom
Slovenije Group level (36.4%).
– The Works Council met at 12 regular sessions and
three correspondence sessions in 2022.
Suppliers and
other business
partners
– Clear supplier selection
criteria and fulfilment of
business agreements;
– responsiveness and
relationship;
– long-term cooperation;
– 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;
– cooperation in the fulfilment of contractual
– The transparent and equal treatment of potential
suppliers is ensured through a standardised
procurement procedure.
– We dedicated a great deal of attention to effectively
addressing challenges as the result of conditions on
the global markets.
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14
Stakeholders
What is most important to
them?
How they are included and frequency of contact
Activities
– 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 services
rendered;
obligations;
– common marketing approach;
– common development of services;
– questionnaires for the purpose of risk assessment;
– meetings and presentations;
– annual questionnaire; and
– cooperation in the scope of tenders and
procurement procedures.
– Based on an assessment of each supplier, we
define a development strategy, possibilities for
additional cooperation, or measures to mitigate
and/or eliminate risks.
– Liabilities are settled by agreed payment deadlines.
– Telekom Slovenije cooperates with 2,964 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 627 million in 2022,
including VAT. That amount also includes
sponsorships and donations.
Regulatory
and
government
bodies
– Compliance with
regulations and decisions;
– 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 connection
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.
Local and
wider
community
– Wide access to services
and responsible
infrastructure expansion
(fixed and mobile network);
– respect for human rights;
– ICT solutions to overcome
healthcare issues;
– guaranteed functioning of
the network in emergency
situations.
– 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; and
– regular contact with local communities when
upgrading and building networks.
– Sponsorships and donations were intended for
organisations and projects at the national and
regional levels. The Telekom Slovenije Group
earmarked EUR 2.1 million for those purposes in
2022.
– Due to the expansion of the fourth (4G) and fifth
(5G) generation mobile networks, we carried out 141
measurements of electromagnetic radiation (EMR),
compared with 323 in 2021. A total of 78
measurements were carried out for 5G technology.
Those measurements were performed by an
authorised institution. The impact of EMS at base
stations upgraded with 4G and 5G technology has
increased slightly, but remains environmentally
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
15
Stakeholders
What is most important to
them?
How they are included and frequency of contact
Activities
acceptable and within the limits established by
Slovenian law, which in some respects is even
stricter than European law.
– We carefully reviewed the respect of human rights in
2022 for the purpose of defining key risks factors.
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, the
promotion of media coverage, interviews, media
presence, responses to journalists’ questions, and
maintenance of formal and informal relationships);
– organisation of occasional events;
– regular communication about corporate topics,
new services and products, and other topics
related to the Company’s operations.
– We responded to more than 250 questions from
journalists in 2022. We provided journalists 37 press
releases and organised several press conferences.
Around 5,000 articles about Telekom Slovenije were
published in the media.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
16
1.6. Operating highlights of the Telekom Slovenije Group in 2022
8
Financial indicators for the Telekom Slovenije Group
in EUR thousand and %
2022 /
31
December
2022
2021 /
31
December
2021
Ind.
22/
21
Sales revenue
652,121
648,247
101
Other operating income
6,832
5,303
129
Total operating revenues
658,953
653,550
101
Operating profit before interest, taxes and depreciation
216,452
220,752
98
Operating profit before interest, taxes and depreciation / sales revenue
(EBITDA margin)
33.2%
34.1%
97
Operating profit
50,362
51,696
97
Return on sales = operating profit / sales revenue
7.7%
8.0%
97
Net profit for the financial year
37,506
37,888
99
Assets
1,275,338
1,250,339
102
Equity
611,677
600,431
102
Return on equity (ROE)
6.2%
6.4%
97
Equity ratio
48.0%
48.0%
100
Net financial debt
401,168
399,009
101
Net financial debt / Operating profit before interest, taxes and depreciation
1.9
1.8
103
Investment in property, plant and equipment (CAPEX)
167,791
208,173
81
Operating profit before interest, taxes and depreciation – Investments
48,557
12,579
386
Ratio of (Operating profit before interest, taxes and depreciation –
Investments) to Operating profit before interest, taxes and depreciation / sales
revenue (EBITDA margin)
22.4%
5.7%
394
Number of employees as at the last day of the period
3,262
3,284
99
CAPEX as a proportion of operating revenues
25.5%
31.9%
80
For more information, see point 41 of the accounting report.
Definitions can be found in point 10.3 Alternative performance measures.
Connections/users
2022
2021
Ind. 22/21
Mobile telephony**
2,002,166
1,958,230
102
Fixed voice telephony
494,647
508,184
97
Broadband connections**
474,145
477,621
99
** Retail and wholesale.
8
GRI 201-1
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
17
Indicators of the sustainable (ESG) operations of the Group Telekom Slovenije
2022
2021
Ind.
22/
21
Governance indicators
Value added (in EUR thousand)
334,310
332,023
101
Value added per employee (in EUR)
102,142
99,468
103
Proportion of women on Telekom Slovenije’s Management Board
60%
40%
150
Proportion of women on Telekom Slovenije’s Supervisory Board
33%
22%
150
Average age of members of Telekom Slovenije’s Management Board
47.6
49.8
96
Personal data protection (number of inspections by Information Commissioner)
3
6
50
Protection of privacy (number of reports of potential breaches of customer’s privacy)
116
57
203
Social indicators
Number of employees
3,262
3,284
99
Average age of employees
44.0
43.7
101
Proportion of female employees
32.7
34.6
94
Number of employees with a disability
97
98
99
Employee turnover
7.4%
6.1%
121
Number of training hours per employee
27.2
30.3
90
Proportion of employees with a master’s degree and doctorate
5.6%
5.0%
102
Coverage of the Slovenian population with 5G technology
40.04%
38.80%
103
Coverage of the Slovenian population with 4G+ technology
84.08%
84.04%
100
Coverage of the Slovenian population with 4G technology
97.03%
96.80%
100
Complaint rate as a proportion of all issued invoices
0.53%
0.53 %
100
Costs earmarked for sponsorships and donations as a proportion of operating
revenues
0.3%
0.3%
100
Proportion of assets purchased from local suppliers (Slovenia)
90%
90%
100
Proportion of suppliers registered as sheltered workshops
0.43%
0.38%
113
Environmental indicators
Electricity consumption (in million kWh)
90.0
90.6
99
Energy intensity (in kWh/EUR)
0.01%
0.01%
100
Carbon footprint per employee at Telekom Slovenije (in tonnes of CO
2eq
)
24.13
19.13
126
Total waste (in tonnes)
6,710
5,750
117
Use of fuel for company cars (in litres)
1,411,536
1,403,024
101
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
18
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
647
648
652
3,392
3,284
3,262
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
0
100
200
300
400
500
600
700
2020* 2021 2022
Number of
employees
Sales revenue in
EUR million
Net sales revenues Number of employees
210
221
216
32.4%
34.1%
33.2%
0%
5%
10%
15%
20%
25%
30%
35%
40%
0
50
100
150
200
250
300
2020* 2021 2022
EBITDA margin in
%
EBITDA
in EUR million
Operating profit before interest, taxes and depreciation
EBITDA margin as a proportion of sales revenue (%)
42.6
51.7
50.4
24.9
37.9
37.5
0
10
20
30
40
50
60
2020* 2021 2022
in EUR million
Operating profit Net income
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
19
Structure of the Telekom Slovenije Group’s equity and liabilities, and net financial debt
Investments in EUR million and as a proportion of operating revenues in %
590
600
612
637 650 664
378
399
401
0
50
100
150
200
250
300
350
400
450
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2020* 2021 2022
NFD
in EUR million
Equity, EUR million Liabilities, EUR million Net financial debt, EUR million
173
208
168
26.4%
31.9%
25.5%
0%
5%
10%
15%
20%
25%
30%
35%
0
50
100
150
200
250
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 2022
20
1.7. Significant achievements of the Telekom Slovenije Group in 2022
• The most innovative security solution: Telekom Slovenije’s Cyber Security Operation Centre,
which was established in 2018, received a second award for best innovative security solution,
which is presented by the Institute for Corporate Security Studies in conjunction with the Slovenian
Corporate Security Association. As the largest operational-security centre in Slovenia, Telekom
Slovenije’s Cyber Security Operation Centre represents an important source of added value in the
area of ensuring cyber security at the national, company and other organisational levels.
• Establishment of new projects
- eCare: We were selected by the Ministry of Health to provide 5,000 free eCare services by 30
September 2023, together with our consortium partner, the Slovene Federation of Pensioners’
Associations.
- Innovative platform for the digitalisation of industry – IioT360: together with the company
Metronik, we developed an innovative platform for the digitalisation of industry (IioT360) and
successfully launched it on the market.
- Smart agriculture: In cooperation with selected winegrowers and partners, Telekom Slovenije
and EFOS set up the first Slovenian pilot smart agriculture project with the remote monitoring of
pests in vineyards at Klet Brda.
- Smart cities: In cooperation with the companies Imovation and Nomago, we began to set up an
advanced central digital platform for the optimal use of transport services in the Municipality of
Celje. In the scope of smart city solution, we signed an agreement with the Šmartno pri Litiji
Municipality to establish two central communication stations. Together with the partners
Kolektor Sisteh, DS Meritve, CMC Group and Infotim Ržišnik Perc, we established a pilot project
for Rižanski vodovod Koper for the remote reading of water meters at more than one hundred
locations in Koper, Izola and Podgorje.
• Important milestones
- Gigabit speeds: At the beginning of May, we increased the internet speed for the subscribers of
Telekom Slovenije’s fibre optic network packages to 1 Gbit/s. At the end May, we also facilitated
the upgrading of fixed internet speeds to 2 Gbit/s.
- Discontinuation of use of 3G technology: On 30 September 2022, we discontinued the use of
mobile 3G technology, and replaced it with more modern and energy and technologically efficient
5G and 4G technologies.
- VALÚ Smart Wallet, which we launched three years ago, is now used by more than 120,000
Slovenes. During the last year, users have executed more than 2 million transactions using that
wallet, while the number of users rises by one-third every year.
- At the end of August, TSmedia celebrated the 25th anniversary of the Siol.net online media.
Significant events after the balance sheet date are presented in the financial report in point 47 Events
after the reporting date.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
21
Recognitions and awards received by the Telekom Slovenije Group in 2022:
• The most innovative security solution: Telekom Slovenije’s Cyber Security Operation
Centre received a second consecutive award for best innovative security solution, which is
presented by the Institute for Corporate Security Studies in conjunction with the Slovenian
Corporate Security Association.
• Best mobile and fixed network according to users: Telekom Slovenije’s mobile and fixed
network was recognised as the best amongst users in a brand strength and image survey.
• WEBSI award: Telekom Slovenije placed second in the telecommunications category for its
‘Friends for Life’ campaign, in which we were one of the first companies in Slovenia to use the
‘Add Yours’ function on social networks.
• SI.RISK: Telekom Slovenije was recognised by the Slovenian Association of Risk
Management and Insurance Management (SI.RISK) to mark the 10th anniversary of that
organisation.
• Top Employer 2022: The Top Employers Institute awarded Telekom Slovenije the prestigious
international title of Top Employer for 2022. The aforementioned institute sets the global
professional standard in recognising excellence in corporate people practices.
• Most Respected Employer: In research conducted by MojeDelo.com, Telekom Slovenije
was recognised as the Most Respected Employer in the telecommunications sector, and
ranked amongst the 10 most respected employers in Slovenia.
• 2022 HRM Project of the Year: Telekom Slovenije’s project Manager 360, a tool for the
monitoring and development of managers, was one of the finalists for 2022 HRM Project of
the Year.
• Successful sustainable HR management practices: Telekom Slovenije placed second in
the Successful Sustainable HR Management Practices contest organised by Zeleno omrežje
Slovenije (Green Network of Slovenia).
• MEGA Inspiration 2022: Telekom Slovenije received the MEGA Inspiration 2022 award in the
area of intergenerational cooperation in the workplace.
• TOP investor in education for 2022: In the scope of the Edutainment conference, Telekom
Slovenije received the Gold certificate as TOP investor in education for 2022.
• Prizma: Telekom Slovenije received the Prizma award presented by the Public Relations
Society of Slovenia for its project to promote employee ambassadorship on social networks.
• Recognitions received by IPKO: IPKO received two recognitions: the FIDES Award for
philanthropic activities, and the title of Taxpayer of the Year, awarded by the Kosovo
Chamber of Commerce.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
22
2. LETTER FROM THE PRESIDENT OF THE MANAGEMENT
BOARD
9
Dear Shareholders, Investors, Business Partners and Co-Workers,
A period of rapid and profound social change and economic uncertainty also brings opportunities to
improve business models and strengthen partnerships. The Telekom Slovenije Group will continue to
play an active role in overcoming the challenges faced by society as a whole, and in building a
modern, safe and highly responsive technological environment. We consolidated our position as a
pillar of Slovenia’s telecommunications infrastructure in 2022, and proved that a high level of security
and reliability are our strategic strengths. Our role in ensuring security and creating an environment of
trust is even more important in times of uncertainty.
EBITDA and profit higher than planned
Achieved results indicate that the Telekom Slovenije Group responded appropriately to the adverse
conditions in 2022, and ended the year successfully. Global markets experienced shortages of energy
products, other commodities, semiconductors and equipment, and most notably a sharp increase in
prices. In order to mitigate supply risks, we remained in constant contact with suppliers, and searched
for substitutes and new and alternative suppliers. We did not experience any major supply-related
difficulties.
The Telekom Slovenije Group generated EUR 652.1 million in sales revenue and EUR 659.0 million in
operating revenues in 2022, an increase of one percent relative to the previous year and at the
planned level.
Telekom Slovenije recorded a 5% increase in revenues on the wholesale market. Our powerful fibre
optic access network is used by all major domestic operators, while we facilitate national roaming in
the mobile network. We recorded an increase in revenues from financial, eCare and insurance
services, and are achieving growth in the ICT segment. The sales revenue generated by Avtenta,
whose services support the digitalisation of companies, was up by 22% in 2022 relative to the
previous year. Also up (by 7%) was the sales revenue generated by GVO, which strengthened its
presence on the market, and recorded an increase in revenues from the management and
maintenance of open broadband networks. IPKO generated sales revenue of EUR 79.0 million, an
increase of 11% relative to the previous year. Revenues from mobile services were up by 16%. Similar
to Telekom Slovenije in Slovenia, IPKO is the flagbearer of technological development in Kosovo. The
company successfully tested fifth-generation (5G) mobile networks in 2022, and will facilitate the
commercial use of the 5G network by users in 2023.
The earnings before interest, taxes, depreciation and amortisation (EBITDA) generated by the
Telekom Slovenije Group in 2022 were 2% higher than planned. EBITDA at the Telekom Slovenije
Group level was EUR 216.5 million. If energy prices had remained at the 2021 level, EBITDA would
have been at the level recorded in 2021. EBITDA as a proportion of net sales revenue was 33.2%.
Following the calculation of income tax (including deferred taxes), the Telekom Slovenije Group
generated a net profit of EUR 37.5 million in 2022, which is 35% higher than planned. Earnings before
interest and taxes (EBIT) amounted to EUR 50.4 million in 2022. EBIT would have been 7% higher
had energy prices remained at the 2021 level.
Ensuring the continuous development of the network and services
Telecommunications is a strategic sector that provides services we can no longer imagine living or
doing business without. Competition in Slovenia is stiff, involves international groups and is aggressive
in terms of pricing. Despite this, Telekom Slovenije maintains the leading role in the sector, particularly
in terms infrastructural development and its share of total revenues.
With the aim of providing users the most-advanced services and comprehensive ICT solutions, we
ensure the continuous development of the network and the most state-of-the-art services, and the
creation of the best user experience at all touchpoints. We earmarked EUR 167.8 million for
investments in 2022, with two-thirds of that amount going to the development of the network and
solutions for residential and business users. We facilitated the connection of an additional
9
GRI 2-22
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
23
30,909 Slovenian households to the fibre optic access network, bringing the total number of
households connected to that network to 442,000. We cover more than 40% of the population with the
5G network and more than 97% of the population with the LTE/4G network. Our ultimate goal is for the
5G network to achieve the same level of coverage as the 4G network. Users also recognise Telekom
Slovenije’s network as the best.
In Slovenia, we maintain the leading position in the pay TV segment (41% market share), mobile
telephony segment (36% market share) and the mobile internet segment (31% market share). IPKO
increased the number of mobile users by 4% in 2022, and assumed the position of leading mobile
operator in Kosovo, while it remains the leader in the internet segment (29% market share).
We see opportunities for growth in revenues from ICT services and solutions in the continued
development of the existing, superior LTE/4G network, and in 5G technology. The latter facilitates 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, healthcare, and protection and rescue. We took several
important development steps in the aforementioned areas in 2022: together with partners we
developed an innovative industrial Internet of Things platform, set up the first pilot project in the area
of smart viticulture with the remote monitoring of pests in vineyards and established a pilot project for
the remote reading of water meters, while we are developing different smart city solutions for
municipalities.
In the scope of a public tender issued by the Ministry of Health, we facilitated the use of eCare
services by nearly 5,000 beneficiaries, while telemedicine solutions are gaining in popularity. Our NEO
TV platform, in the scope of which we made possible the highly effective voice-controlled management
of TV in Slovene, is already used by more than 140,000 users.
We are involved in several European research projects relating to the development of technologies, in
particular the Internet of Things, cyber security, support for critical communications and eHealth.
Ensuring security
The accelerated pace of digitalisation brings a significant increase in cyber and information security
risks. Telekom Slovenije is creating a sustainable competitive advantage in this area, as we have a
superior and widely accessible infrastructure that we manage and control internally, while we have
been systematically developing security solutions for business and residential users for a number of
years.
Representing a pillar of cyber security at the national level is Telekom Slovenije’s Cyber Security
Operation Centre, which is the largest centre of its kind in Slovenia and was named the best
innovative security solution for the second time in 2022. The centre’s experts monitor and analyse
security events 24 hours a day, 365 days a year. Immediate action is taken when deviations that could
constitute a security threat are identified. We have a cyber response team in place for that purpose.
We recorded a record number of cyber attacks in 2022, when the number of security incidents
handled was up by 20% relative to the previous year.
Creating a sustainable future through digitalisation
The Strategic Business Plan sets out specific performance indicators for the material sustainability
aspects of our operations. We can contribute most to sustainable development through advanced
information solutions and an efficient support environment.
In 2022, Telekom Slovenije discontinued the use of 3G technology, which we introduced 20 years ago,
and replaced it with more energy and technologically efficient 4G and 5G technologies, which account
for 99% of total mobile traffic on our network. We are gradually replacing the copper network with the
fibre optic network, and replacing air-conditioning devices with more energy efficient units. We are
gradually increasing the proportion of electric and hybrid vehicles in our fleet, and intend to increase
the number of own solar power plants by 2026. Despite the continuous rise in mobile data traffic, we
reduced energy consumption by 1% in 2022 through systematic activities.
Telekom Slovenije and TSinpo became signatories of the Diversity Charter in 2022. This represents
our next step in this direction, which is based solely on our values and previous activities to ensure the
diversity, inclusion and cohesion of employees. Telekom Slovenije also carried out a comprehensive
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
24
review of respect for human rights. Through responsible and transparent relationships, and user-
friendly services, products and content, we promoted digital literacy and facilitated broad access to
communication services, including by vulnerable groups and users in rural areas.
New technologies and innovations are successfully introduced in practice by #connected, committed
and highly skilled employees. Telekom Slovenije received the prestigious international Top Employer
certificate for its employee-related activities, confirmation that we are comparable with the best global
companies in the aforementioned area. In particular because we promote an environment of
cooperation, security and trust, and are aware that such a work environment is a prerequisite for
providing advanced, secure and reliable services to our users. We are #connected co-workers who
know how to listen to the wishes of our users.
Expectations for 2023 are characterised by the uncertain economic environment, which is linked
primarily to conditions on the energy markets and the continuing war in Ukraine. Nevertheless, the
Telekom Slovenije Group has set ambitious objectives for 2023. We are and aim to be the first choice
of users, and to provide the most advanced services and an excellent user experience in a superior
network through continuous development.
I would like to thank all employees for their hard work, and shareholders, business partners and users
for their trust.
Boštjan Košak,
President of the Management Board
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
25
3. LETTER FROM THE PRESIDENT OF THE SUPERVISORY BOARD
Dear Stakeholders,
The development of technologies, services and solutions in the telecommunications sector is dynamic.
In Slovenia, it is also characterised by stiff, price-aggressive competition. Telekom Slovenije
represents the pillar of Slovenian digital society. For more than 30 years, it has been the flagbearer of
technological development, while on account of digitalisation and the changing communication needs
of users, it also faces numerous opportunities and challenges in the search for new developmental
business models. The same is true for Telekom Slovenije Group companies. In a business
environment that demands in-depth knowledge and understanding of the environment in which the
Group operates, global and local trends, and strategic reflection about future development, one of the
key condition for the Group’s successful operations is a strong and competent management team.
The Supervisory Board reconstituted the Management Board in October 2022 for the next four-year
mandate, while a delegate system was used for the President of the Management Board. The
Telekom Slovenije Group thus gained a stable, highly-qualified and professional Management Board
with a wealth of experience in the field of telecommunications and in other areas, all of which will
serve as the foundation for future development. The Management Board has the full trust of the
Supervisory Board.
The Telekom Slovenije Group exceeded planned EBITDA and net profit during the 2022 financial
year, while operating revenues were at the planned level. Having a major impact on operations were a
sharp increase in energy prices, as well as changes on the financial markets and new conditions in
supply chains. At the same time, the war in Ukraine has highlighted the exceptional importance of
information and cyber security. In this area, Telekom Slovenije is consolidating and strengthening its
market position through its own Cyber Security Operation Centre, which represents an important
added value in terms of ensuring cyber security in Slovenia and is integrated into international flows.
With its own modern and reliable ICT infrastructure, which it continuously upgrades, Telekom
Slovenije ensures the continued digitalisation, security and development of society as a whole.
Telekom Slovenije thus encourages everyone in the system to recognise it as the first choice for
addressing challenges that must be met with the help of information technologies. During a period of
general uncertainty, it provides security and stability to stakeholders through its development activities,
attitude and responsible approach to the society in which it operates.
The Annual Business Plan of Telekom Slovenije and the Telekom Slovenije Group for the 2023
financial year, which was adopted in December 2022, is ambitious and was drawn up in a period of
high economic uncertainty. It is crucial now that the Telekom Slovenije Group remain ambitious and
development-oriented with regard to both technologies and services. This will also be important
starting point during the drafting of the Strategic Business Plan of the Telekom Slovenije Group for the
next three-year period, which we will be ready by the middle of 2023.
In the scope of its competences, Telekom Slovenije’s Supervisory Board ensured the responsible and
high-quality supervision of the operations of the parent company and Group companies in 2022. It
discussed different aspects of operations and monitored the implementation of plans. Certain topics
were discussed in advance by the Supervisory Board’s committees, which were reconstituted at the
end of the year to ensure even more efficient work. The composition, content and work of the
Supervisory Board and its committees during the 2022 financial year are presented in more detail in
the report of the Supervisory Board.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
26
The Supervisory Board is confident that the Telekom Slovenije Group has the knowledge required to
face all strategic development challenges, and ensure long-term growth and development in the
context of the responsible and sustainable creation of value for its owners and all other stakeholders.
Žiga Debeljak, MSc,
President of the Supervisory Board
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
27
4. DEVELOPMENT STRATEGY AND PLANS
4.1. Vision, mission and values
10
10
GRI 2-23
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
28
4.2. Business model of the Telekom Slovenije Group
MISSION
VISION
KEY
STRATEGIC
OBJECTIVES
Leader in user experience
The first choice of users and business partners through a
superior user experience, the best network and a range of
the most advanced ICT services tailored to the needs of
users.
Pioneer of Slovenia’s digital
development
Growth in ICT services through a superior fibre
optic access network, development of the IoT,
smart infrastructures, artificial intelligence,
telemedicine and cyber security. Maintaining our
market position in the core activity.
Maximisation of value
Financial stability, optimal employee
structure, development of employees’
knowledge and competences, consolidation
on individual markets, and reputation and
brand management.
Digitalisation of operations
Optimisation and automation of business
processes.
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 operations are built into our
operations, products, services and content, while we
also responsibly manage the economic, social and
environmental impacts of our operations.
Connectivity of users
• B2C market
• B2B market
• wholesale market
ICT services and solutions for
digitalising society and the economy
IT and cybersecurity solutions
(for businesses and
residential users)
Smart home, smart city,
communities and industry
and e-mobility solutions
eHealth solutions
(eCare, telemedicine)
Financial services
Cloud solutions
Network construction and
development
Management of the Sečovlje
Salina Nature Park
For more information, → see section 7.6.2
7.6.2
VALUES
KEY
SERVICES
We provide users the best user experience and
connectivity. We assist and support them on their own path
to the digital transformation. We build long-term
relationships based on mutual trust.
Users
We facilitate the professional development of employees
based on common values.
Employees
We create opportunities for the green transition, and the
development of society and local communities.
Society and
local
communities
We create value together with suppliers and business
partners.
Suppliers
and partners
We strive for long-term and profitable growth.
Shareholders
For more, see Section 1.4. →
We create value for key stakeholders
We proactively adapt 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.
• Environmental impacts: climate change and the preservation of natural
resources.
Contribution to the achievement of SDG
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29
4.3. Strategic Business Plan of the Telekom Slovenije Group until 2026 and
Annual Business Plan for 2023
11
The Telekom Slovenije Group implements its strategy in accordance with adopted strategic policies.
The Strategic Business Plan is the core corporate document. Defined in that document through its
mission, vision, values, business model, objectives and strategy are the Telekom Slovenije Group’s ’s
future development and strategic policies. The document outlines the future business strategy of the
Telekom Slovenije Group.
Expectations for 2023 are characterised by the extremely high level of uncertainty in the economic
environment, primarily in connection with conditions on the energy markets, and the continuation of
the war in Ukraine and high inflation. The Telekom Slovenije Group expects uncertainty in the
international environment to continue rising, but is still planning growth and development.
The Group drew up an ambitious business plan for 2023, the goal of which is to reverse the negative
trend of recent years, and thus achieve growth in revenues and the number of users in all segments,
and further strengthen its market shares. The Telekom Slovenije Group is and strives to be the first
choice of users in the future, while it aims to provide the most advanced services and an excellent
user experience in a superior network based on continuous development.
Sustainable operations
Sustainability principles are integrated into our strategic objectives, and are included to the greatest
extent possible in operations, products, services and content. We understand sustainable operations
as the responsible management of the economic-governance, social and environmental impacts of our
operations.
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 1.3.
Strategic objectives of the Telekom Slovenije Group
Leader in user experience
Leading user experience based on the best, most reliable and largest network. We
create that experience in line 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 security, 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, healthcare, and protection and rescue (public safety). The Telekom
11
GRI 3-3
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30
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.
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
social and environmental impacts of our operations.
Key financial objectives of the Telekom Slovenije Group for 2023
Operating revenues EUR 680.8 million
EBITDA EUR 206.2 million
Net profit EUR 20.1 million
Investments EUR 205.5 million
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
31
4.4. Strategic projects
NATIONAL FIFTH GENERATION (5G) MOBILE NETWORK
12
We continued updating the mobile network in 2022 with 5G technology, while the number
of 5G base stations rose to 325. We ensure coverage with the 5G network in the 2,600
MHz, 3,600 MHz and 700 MHz frequency bands, primarily in cities, business centres and
along transport routes, and also in rural areas. Through a smart infrastructure, we
facilitate numerous virtual dedicated networks for specific business verticals, such as
eHealth, energy, transport, factories, smart cities and communities, etc.
EXPANSION AND UPGRADING OF THE FIXED NETWORK
13
Through the expansion and upgrading of the fixed network, we are pursuing the vision of the
development of the communications network in Slovenia, which was defined by the Slovenian
government in state strategic documents. We are investing intensively in the construction of a fibre
optic access network, through which we provide users the infrastructure for all existing and future
broadband services. We thus facilitate access by users to state-of-the-art telecommunication services
in urban, suburban and rural areas.
For more information, see section 8.1.1 Development of the network, technologies and services.
In 2022, GVO participated in the construction of open broadband 5G networks in 14 Slovenian
municipalities where construction is subsidised by public funds provided by the Ministry of Public
Administration due to the lack of commercial interest. The constructions of the aforementioned
networks will be completed in 2023.
EHEALTH AND ECARE SOLUTIONS
Through eHealth and eCare solutions, we are pursuing strategic policies and
upgrading the healthcare system and social security services in Slovenia. The eCare
service, which numerous municipalities are co-financing for their citizens, is 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.
14
SMART CITIES, SMART INDUSTRY AND INTERNET OF THINGS SOLUTIONS
15
In 2022, we continued with the development of the Smart City platform, and were selected via tender
to arrange smart mobility in the Municipality of Celje. We have developed partner solutions in
connection with the Internet of Things. We developed an innovative industrial IoT platform with
Metronik for mechanical engineers and the users of industrial machinery, while we
completed the first season of a pilot project in Goriška Brda in the area of smart
viticulture with remote pest control. For more information, see section 8.1 Development
and responsible governance of the Telekom Slovenije Group.
TARGETED TV ADVERTISING
Together with TSmedia, Telekom Slovenije presented a new advertising product: targeted TV
advertising on the NEO platform. As a result, we were the first in Slovenia to offer advertisers targeted
TV advertising during back-viewing. We thus offered the market the best current combination of
television and the digital world. Targeted TV advertising makes it possible to reach households with
customised messages. Segmentation is possible with respect to their location, demographics,
behaviour patterns and/or interests. Targeted TV advertising thus ensures a higher level of viewer
engagement, while facilitating the monitoring and accurate measurement of the effectiveness of
campaigns.
12
SDG 9
13
GRI 3-3
14
SDG 3
15
SDG 11
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LEADING BRAND ACCORDING TO USER EXPERIENCE
Being the leading brand according to user experience is a key strategic initiative of Telekom Slovenije.
Through a superior user experience, we achieve short-term business objectives and strengthen our
long-term strategic position.
We manage the user experience through the continuous monitoring of customer satisfaction at all
points where users come into contact with us. We monitor transactional NPS on a daily basis. The
target level of customer satisfaction is a metric in the personal objectives of all the Company’s
employees. Users’ recommendations for improvements to the user experience received via
touchpoints are integrated into regular work processes.
We are defining user journeys, as well as key physical and digital touchpoints with the user. We take
into account the impact on the user experience in every step of the planning of shopping journeys.
DIGITALISATION OF OPERATIONS
We are digitalising our processes in accordance with strategic policies. We upgraded the application
for field technicians in 2022 and introduced a new tool for producing simple technical solutions that
facilitates the more rapid development of solutions and standard content at the level of all service
providers. We established an advanced automated analytical reporting system to capture and
visualise data in the shortest possible time.
Our products and services are contributing to the digital transformation of society. Avtenta provides
advanced business solutions that are crucial for the digitalisation of operations. For companies, these
solutions facilitate the development of new business models, paperless operations, increased
efficiency and higher added value. The aspect of sustainability is important in this regard.
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33
4.5. Achievement of planned objectives by the Telekom Slovenije Group in
2022
Despite numerous global macroeconomic challenges, the Telekom Slovenije Group actively and
successfully achieved the objectives set out in the Strategic Business Plan for the period 2022 to 2026
and the Annual Business Plan for 2022. An overview of key activities and achievements is presented
in the table below.
Strategic objectives from the Strategic Business Plan and their realisation in 2022
Strategic objective
Achieved in 2022
Leader in user
experience
• The proportion of satisfied and fully satisfied users of Telekom
Slovenije’s fixed and mobile services (CSI) remains at a high level.
• We modernised the platform in the Online Store and upgraded
existing functionalities, while we also updated the portfolio, which
now includes more than 5,300 products in more than 130 categories.
• We are accessible to users via numerous touchpoints. We enhanced
field sales through authorised agents. We are also available to
customers at all times via video call at Telekom centres via the Viber
and WhatsApp platforms, and via Microsoft Teams.
• 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.
• We continue to modernise the mobile network, and upgraded
software and equipment with 4G and 5G technologies. We cover
more than 97% of the population with the LTE/4G network, more
than 84% of the population with the LTE-A/4G+ network, and more
than 40% of the population with the 5G network. We included an
additional 59 small cells for the needs of internal coverage.
• We facilitated the connection of 30,909 new users, bringing the total
to more than 442,000 Slovenian households connected to our fibre
optic network. To provide the subscribers of the NEO Svet C and
NEO SuperNet packages the highest speeds, we upgraded the basic
speed on the fibre optic network for free, and facilitated speeds of up
to 1 Gbit/s, with the possibility of purchasing speeds of up to 2 Gbit/s.
• We upgraded the oldest fixed packages (60) of more than 85,000 TV
subscribers with NEO packages, while we also replaced the oldest
TV communicators with NEO Smartboxes.
• We achieved a high transactional NPS (visit by a technician in
cooperation with technical support).
Digitalisation of
operations
• We made it possible for business users to arrange subscriber
relations via My Telekom, and provided additional reports for
monitoring the use and optimisation of connected services.
• We upgraded the VALÚ Smart Wallet with a simplified interface for
the inclusion of new retailers in the VALÚ Market. We expanded the
network of retailers at which it is possible to pay for goods and
services via a QR code. Payments for digital content in the App Store
and Google Play were up by 40% relative to 2021, while the number
of users was up by 30%.
Growth in ICT
services
• We provide an increasing number of municipalities traffic
management, smart parking and environmental measurement (e.g.
air and noise pollution) services.
• We established a remote meter reading pilot project for Rižanski
vodovod and smart viticulture in Goriška Brda.
• The number of business users of the Cyber Security Operation
Centre more than doubled in 2022; we now protect more than 120
business users.
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34
Strategic objective
Achieved in 2022
• We participated in several European projects, in the scope of which
we are developing new services and technologies, and testing
concepts through which we aim to create new commercial solutions
over the next three to five years. The majority of projects focus on the
development of new technologies, in particular the Internet of Things,
cyber security, support for critical communications and eCare.
Maintaining the level
of revenues from the
core activity in
Slovenia
• In Slovenia, we maintained the highest market share in both the
mobile and IPTV services segments. Our market shares were as
follows: 35.7% of the mobile telephony segment, 27.2% of the fixed
broadband internet access segment and 40.9% of the IPTV segment
(figures for fourth quarter of 2022; source: AKOS).
• IPKO is the leading operator in both segments, with a 52% share of
the mobile telephony segment and 29% share of the fixed segment.
Optimal employee
structure
• The number of employees in the Group was down by 0.7%.
• Group employees received an average of 27.2 hours of training in
2022, while that figure was 32.2 hours at Telekom Slovenije. The
proportion of employees included in education and training was 91%
at the Group level.
Financial stability
• We consistently fulfilled the financial commitments set out in loan
agreements.
• Reserve liquidity was secured in the form of revolving loans.
Responsibility to the
environment and
society
• The discontinuation of the use of 3G technology, which we
introduced 20 years ago, is an integral element of our sustainable
operations, and part of the technological and developmental
optimisation of our network.
• Electronic equipment returned by users is carefully inspected,
cleaned and prepared for reuse at TSinpo. We thus extend the useful
life of equipment, increase cost-effectiveness and reduce the volume
of electronic waste.
• We support sports, humanitarian, educational and cultural
organisations and projects through sponsorships and donations. We
also responded to current events by donating EUR 20,000 to the
Firefighters Association of Slovenia for the renewal of the worn-out
and destroyed equipment of firefighting companies that helped
extinguish the fire in the Karst region. As a way of expressing our
gratitude, we gave every firefighter an additional 500 GB of data
transfer a month in our mobile network, as well as the free use of the
programme scheme of their choice in our TV offer.
• In the field of education, we have been participating in the Reading
Badge, Happy School and Eco-Quiz projects for a number of years.
We also provide financial and contextual support to the study
programmes of Slovenian faculties that educate students primarily for
work in the ICT sector.
• At the initiative of one of its employees, Telekom Slovenije
established the Heart Foundation in 2019 with the aim of helping the
children of Group employees who have lost one or both parents, or
who are seriously ill. Employees at Slovenian Group companies
contribute funds every month. We thus provided monthly financial
assistance to 44 children between the ages of 5 and 20 years in
2022, while we also provided one-time financial assistance for the
treatment of the seriously ill children of employees. At the end of the
year, Telekom Slovenije and GVO donated EUR 10,000 and EUR
3,000, respectively, to the Heart Foundation.
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Strategic objective
Achieved in 2022
• In the scope of the Creating a Green Future campaign, we planted
1,000 honey-bearing trees in exchange for old phones brought to
Telekom centres by users.
Fulfilment of the business expectations of the Telekom Slovenije Group for 2022
Planned in 2022
Achieved in 2022
Operating revenues
EUR 660.6 million
EUR 659.0 million
EBITDA
EUR 211.2 million
EUR 216.5 million
Net income
EUR 27.9 million
EUR 37.5 million
Investments
EUR 203.1 million
EUR 167.8 million
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
36
5. 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 2022. It relates to the period 1 January 2022 to 31
December 2022. 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.
5.1. Corporate Governance Policy
Corporate governance at Telekom Slovenije and within the Telekom Slovenije Group is based on the
following principles and guidelines:
– Corporate Governance Policy of Telekom Slovenije, d.d., which was initially adopted in
December 2011 and last updated on 13 February 2020,
– Corporate Governance Rulebook of the Telekom Slovenije Group, which was adopted on 22
August 2017, and
– Instructions on the Implementation of the Corporate Governance Rulebook of the Telekom
Slovenije Group by individual area, 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 Company’s website at https://www.telekom.si/en/about-us/company/corporate-governance.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
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5.2. 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 2022 financial year:
• Corporate Governance Code adopted by the Ljubljana Stock Exchange and the Slovenian
Directors’ Association on 9 December 2021. The code entered into effect on 1 January 2022
and is published on the website www.ljse.si;
• 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 and the amended version
from June 2022 (both documents are published on the website www.sdh.si); and
• 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 Company deviates in part from this recommendation, as
targets are stated in descriptive terms, but not in numerical terms or percentages, except with regard
to gender diversity.
Remuneration policy
Recommendation 6.1: No consultative resolution on the remuneration policy was adopted at the
Company’s 34th General Meeting of Shareholders. The remuneration policy that applies at Telekom
Slovenije is in line with the law. The Company will further study the recommendations of Slovenski
državni holding, and submit an adjusted remuneration policy to shareholders for consultative voting at
the Company’s regular General Meeting of Shareholders in 2023.
Sustainable operations
Recommendation 7: Telekom Slovenije deviates in part from this recommendation, as an umbrella
Sustainable Business Policy has not yet been adopted. However, sectoral policies and rules are in
place. A Sustainable Business Policy will be adopted in 2023.
Recommendation 7.9: Telekom Slovenije’s sustainability report is integrated into its annual report. We
published the report of the Telekom Slovenije Group according to the 2021 EU Taxonomy separately.
Data for 2022 are disclosed in the annual report in point 8.4.1 Disclosures of indicators for economic
activities that are included in the 2022 EU Taxonomy.
Justification of proposals for the election of Supervisory Board members
Recommendation 10.10: Telekom Slovenije deviated in part from this recommendation in 2022
because the justification of a proposal for shareholders at the 35th General Meeting of Shareholders
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. The aforementioned aspects
were verified during the candidacy procedure in accordance with legal provisions and the
recommendations of the Code.
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Annual training plan for members of the Supervisory Board and its committees
Recommendation 15.1: 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.
External evaluation of the assessment of the Supervisory Board
Recommendation 16.4: Telekom Slovenije did not comply with this recommendation, as an external
evaluation of the assessment of the Supervisory Board was not performed. A self-assessment of the
Supervisory Board was published for 2021.
Succession system for the Management Board
Recommendation 22.1: Telekom Slovenije deviates in part from this recommendation, as it does not
have a succession system in place for the Management Board; internal candidates are appropriately
considered in the scope of the selection process.
Publication of rules of procedure of bodies
Recommendation 32.7: 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:
Succession policy
Recommendations 6.1, and 6.2.1 to 6.2.3: Telekom Slovenije deviates in part from this
recommendation, as it has not adopted a succession policy in the form of a single document; internal
candidates are appropriately considered in the scope of the selection process.
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 2022 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
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
39
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/en/about-
us/company/corporate-governance).
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
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5.3. Management and supervisory bodies
Telekom Slovenije has a two-tier management and governance system. The Company’s bodies are
the General Meeting of Shareholders, Supervisory Board and Management Board. The Company is
managed by the Management Board and supervised by the Supervisory Board.
GENERAL MEETING OF SHAREHOLDERS AND RIGHTS OF SHAREHOLDERS
All shareholders are treated equally and are ensured the consistent exercising of their rights.
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. 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. Shareholders exercise their rights at the General Meeting
of Shareholders in person or through authorised representatives. Detailed information about the rights
of shareholders is published to coincide with the convening of the General Meeting of Shareholders
and are accessible on the Company’s website (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.
The shareholders of Telekom Slovenije met at two General Meetings in 2022. At total of 80.50% of
shares with voting rights were represented at the 34th General Meeting of Shareholders held on 9
June. At the General Meeting of Shareholders, shareholders:
• 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 for 2021;
• were briefed on the report on the remuneration of members of Telekom Slovenije, d.d.’s
Management Board and Supervisory Board for 2021, and on information regarding the
remuneration of members of management bodies of the three biggest subsidiaries for 2021;
• approved the proposed use of distributable profit for the 2021 financial year;
• conferred official approval on the Management Board and Supervisory Board for the 2021
financial year;
• were briefed on changes to the Company’s Supervisory Board;
• adopted amendments to Articles of Association of Telekom Slovenije;
• were briefed on the report on acquisition of treasury shares; and
• voted against the proposed resolution of acknowledgement regarding the Policy on the
Remuneration of Members of Telekom Slovenije’s Management Board and Supervisory Board,
and against the resolution regarding authorisation to acquire treasury shares.
16
At the request of Kapitalska družba pokojninskega in invalidskega zavarovanja, d.d., the 35th General
Meeting of Shareholders was held on 9 September, when 78.52% of shares with voting rights were
represented. At the General Meeting of Shareholders, the Company’s shareholders:
• recalled members of the Supervisory Board and shareholder representatives, Iztok Černoša,
Marko Kerin, Radovan Cerjak and Dr Jurij Toplak, effective 9 September 2022; and
• elected Alenka Čok Pangeršič, MSc, Mateja Čuk Orel, MSc, Marko Boštjančič and Žiga Debeljak,
MSc as members and shareholder representatives of the Supervisory Board, for a four-year term
of office that began on 9 September 2022.
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.
16
GRI 2-20
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
41
According to the Company’s financial calendar, the 36th General Meeting of Shareholders for 2023 is
planned for 16 June 2023.
MANAGEMENT BOARD
17
Composition of the Management Board
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 are appointed for a four-year
term of office.
At its 22nd ordinary session held on 1 September 2022, Telekom Slovenije’s Supervisory Board
adopted a resolution on the mutual termination of the terms of office of President of the Management
Board, Cvetko Sršen, and member of the Management Board, Barbara Galičič Drakslar, effective on
the day new members are appointed to the Management Board. On 1 September 2022, the
Supervisory Board relieved Tomaž Jontes from his position as member and Vice-President of the
Management Board for reasons of culpability.
On 3 October 2022, the Supervisory Board appointed Boštjan Košak to serve a four-year term of office
as President of the Management Board, effective 4 October 2022. In accordance with Mr Košak’s
appointment, the term of office of Cvetko Sršen ended on 3 October 2022.
At its session held on 11 October 2022, the Supervisory Board appointed two new members of the
Management Board based on the proposal of the President of the Management Board. Irma Gubanec,
MSc became member of the Management Board responsible for the area of finance, while Boštjan
Škufca Zaveršek, MSc became member of the Management Board responsible for the commercial
sector. Ms Gubanec’s four-year term of office began on 12 October 2022, while Mr Škufca Zaveršek’s
four-year term of office began on 14 November 2022. Boštjan Škufca Zaveršek, MSc was appointed
Vice-President of the Management Board. With the appointment of the new member of the
Management Board responsible for the area of finance, the term of office of Barbara Galičič Drakslar
ended on 11 October 2022.
At its session held on 19 October 2022, the Supervisory Board appointed Vesna Prodnik, MSc to
serve as member of the Management Board responsible for the area of technology based on the
proposal of the President of the Management Board. Ms Prodnik’s four-year term of office began on
14 November 2022. At the same time, mutual agreement was reached with Dr Mitja Štular on the
termination of his function as member of the Management Board.
The composition of the Management Board was as follows in 2022:
17
GRI 2-9, 2-10, 2-11, 405-1
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
42
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
Boštjan
Košak
President
Corporate Governance, Human
Resource Management, General Affairs,
Corporate Communications, Legal
Affairs, Regulation, Compliance, Risk
Management, Corporate Security,
Internal Auditing, Strategic Project Office
and the subsidiaries IKPO and TSinpo.
4 October
2022
3 October
2026
Male
Slovenian
1971
Holds a bachelor’s
degree in
economics.
Boštjan
Škufca
Zaveršek,
MSc
Vice-President
B2B and B2C, Development of Products
and Services,
Digitalisation, Development of ICT
Solutions, Marketing and the
subsidiaries Avtenta and Soline.
14 November
2022
13 November
2026
Male
Slovenian
1976
Holds a bachelor’s
degree in
economics and a
master’s of
science.
Irma
Gubanec,
MSc
Member
Finance, Accounting, Controlling,
Procurement, Real Estate Management,
Logistics, Wholesale Market and the
subsidiary TSmedia.
12 October
2022
11 October
2026
Female
Slovenian
1968
Holds a bachelor’s
degree in
economics and a
master’s of
science.
Vesna
Prodnik,
MSc
Member
Network Management, IT and ICT
Services, and the subsidiaries GVO,
SIOL Zagreb, SIOL Podgorica, SIOL
Sarajevo, SIOL Skopje, SIOL DOO
Belgrade and SIOL Prishtina.
14 November
2022
13 November
2026
Female
Slovenian
1972
Holds a bachelor’s
degree in electrical
engineering and a
master’s degree in
communication
sciences.
Špela
Fortin
Member –
Workers Director
Responsibilities derive directly from the
law.
14 September
2019
13 September
2023
Female
Slovenian
1978
High school
graduate.
Cvetko
Sršen
President
Corporate Governance, Human
Resource Management, General Affairs,
Corporate Communications, Legal
Affairs, Regulation, Compliance, Risk
Management, Corporate Security,
Internal Auditing, Strategic Project Office
and the subsidiaries IKPO and TSinpo.
10 March
2021
3 October
2022
Male
Slovenian
1966
Holds a master’s
degree in
intercultural
management.
INFRA izvajanje
investicijske
dejavnosti, d.o.o.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
43
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
Tomaž
Jontes
Member
Member
Vice-President
B2B and B2C, Development of Products
and Services,
Digitalisation, Development of ICT
Solutions, Marketing and the
subsidiaries Avtenta and Soline.
22 June 2020
10 March
2021
22 March
2021
10 March
2021
22 March
2021
1 September
2022
Male
Slovenian
1971
Holds a bachelor’s
degree in
economics.
Triglav, pokojninska
družba, d. d.
Dr Mitja
Štular
Member
Network Management, IT and ICT
Services, and the subsidiaries GVO,
SIOL Zagreb, SIOL Podgorica, SIOL
Sarajevo, SIOL Skopje, SIOL DOO
Belgrade and SIOL Prishtina.
10 March
2021
13 November
2022
Male
Slovenian
1970
Holds a doctorate
in electrical
engineering.
Barbara
Galičič
Drakslar
Member
Finance, Accounting, Controlling,
Procurement, Real Estate Management,
Logistics, Wholesale Market and the
subsidiary TSmedia.
31 March
2021
11 October
2022
Female
Slovenian
1971
Holds a bachelor’s
degree in
economics.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
44
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 responsibilities of individual members of the Management
Board are set out in the rules of procedure of that body and in the resolution defining the business
areas and responsibilities of Management Board members, to which the Supervisory Board gives its
consent.
The Management Board met at 63 regular and three correspondence sessions in 2022.
In March 2022, Telekom Slovenije entered into an agreement with DBA informacijske tehnologije and
DBA Group S.p.A. on the purchase of a 100% participating interest in ACTUAL I.T., informacijske
tehnologije, d.d. That agreement was concluded on 28 March 2022, but the transaction was not
completed for reasons beyond the Company’s control.
The Management Board adopted a number of other business decisions and carried out the following
activities:
• the development and achievement of established objectives;
• the introduction of new and upgraded services;
• the development of cyber security, healthcare, financial, transport, logistics and smart city
services;
• the adaptation of network capacities with respect to the needs of users;
• additional concern for cyber security;
• the development of opportunities to use mobile networks in connection with the introduction of
the 5G network, and ensuring a superior user experience; and
• the upgrading of the comprehensive portfolio of ICT services and solutions.
Earnings of the Management Board
18
The remuneration, composition and amount of earnings of Management Board members are set out in
employment contracts taking into account the Act Governing the Remuneration of Managers of
Companies with Majority Ownership held by the Republic of Slovenia or Self-Governing Local
Communities (ZPPOGD), the Decree setting the highest correlation between the basic salary and the
amount of variable remuneration of directors (hereinafter: the Decree) and the remuneration policy for
members of Telekom Slovenije, d.d.’s Management Board and Supervisory Board.
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
earnings of Management Board members comprise a basic salary, variable performance-based
remuneration, and other rights and benefits.
The remuneration policy states that variable remuneration based on financial criteria (e.g. sales
revenue and EBITDA) amounts to at least 50%, while remuneration based on non-financial criteria
(e.g. overall transactional NPS, the achievement of social responsibility objectives and sustainable
operations) is at least 30%.
According to the aforementioned Decree, the basic salary of Management Board members may
amount to a maximum of five times the average gross salary within the Telekom Slovenije Group,
where the salary of an individual member of the Management Board is determined taking into account
their powers, duties, experience, responsibilities, scope of work and the Company’s financial
situation.
19
The conditions for profit sharing by the Management Board are governed by the Company’s Articles of
Association. The earnings of Management Board members in 2022 are presented in the separate
report, Report on the remuneration of members of Telekom Slovenije’s Management Board and
Supervisory Board for 2022, and in the accounting report in point 42 Related party transactions.
18
GRI 2-18, 2-19, 2-20
19
GRI 2-21
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
45
SUPERVISORY BOARD
In the scope of its competences, the Supervisory Board ensured the responsible and high-quality
supervision of the operations of Telekom Slovenije and the Telekom Slovenije Group in 2022. It met
regularly, and 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 findings,
proposals and careful assessment by those committees, the Supervisory Board adopted decisions
and informed stakeholders after its sessions.
Composition of the Supervisory Board
20
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.
The composition of the Supervisory Board changed as follows during 2022:
• At its session on 2 June 2022, Telekom Slovenije’s Works Council elected Rok Pleteršek to
serve as replacement member of the Company’s Supervisory Board and employee
representative. Mr Pleteršek’s term of office will run until the expiration of the terms of office of
other employee representatives of the Supervisory Board, i.e. until 14 November 2025. He
was appointed replacement member of the Supervisory Board after the Supervisory Board
was briefed on 11 May 2022 on the resignation of Supervisory Board member and employees
representative, Jana Žižek Kuhar. Jana Žižek Kuhar’s term of office expired on the day of the
appointment of the replacement member.
• At the Company’s General Meeting of Shareholders of Telekom Slovenije held on 9
September 2022, shareholders recalled members of the Supervisory Board and shareholder
representatives, Iztok Černoša, Marko Kerin, Radovan Cerjak and Dr Jurij Toplak. They
elected Alenka Čok Pangeršič, MSc, Mateja Čuk Orel, MSc, Marko Boštjančič and Žiga
Debeljak, MSc as members and shareholder representatives of the Supervisory Board, for a
four-year term of office that began on 9 September 2022.
• At its 1st ordinary session held on 14 September 2022, the members of the Supervisory Board
elected Žiga Debeljak, MSc to serve as President of the aforementioned body. Karla Pinter,
MSc and Drago Kijevčanin remain Vice-Presidents of the Supervisory Board, with the former
serving as shareholder representative and the latter serving as employee representative. The
Supervisory Board also newly appointed members to its committees.
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.
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 and are not disclosed separately.
The Supervisory Board comprised the following members in 2022:
20
GRI 2-9, 2-10, 2-11, 2-15, 405-1
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
46
Name
Office
First
appointme
nt to
function
Completion
of
function/ter
m of office
Shareholder/e
mployee
representative
Partici
pation
in
Super
visory
Board
sessio
ns
Gender
Nationalit
y
Year
of
birth
Education /
professional
profile
Indepen
dence
per
stateme
nt of
indepen
dence
Existenc
e of
conflicts
of
interest
during
the
financial
year
Members
hip in
supervis
ory
bodies of
other
compani
es
Employment
Žiga
Debeljak,
MSc
President
9
September
2022
8
September
2026
Shareholder
representative
11/11
Male
Slovenian
1971
Holds a
bachelor's
degree in
information
technology
and a
master's
degree in
business
administration
and corporate
governance.
YES
NO
GEN
energija,
d.o.o.,
Krško
President of the
Management
Board of SDH,
d.d.
Karla
Pinter, MSc
Vice-
President
18 June
2021
17 June
2025
Shareholder
representative
22/22
Female
Slovenian
1982
Holds a
bachelor's
degree in law
and a
master’s
degree in
Legal Affairs
YES
NO
Mariborsk
a livarna
Maribor,
d.d.
Director General
of the Internal
Market
Directorate at
the Ministry of
the Economy,
Tourism and
Sport.
Aleksander
Igličar,
MSc
Member
22 January
2021
21 January
2025
Shareholder
representative
22/22
Male
Slovenian
1962
Holds a
master's
degree in
economics /
accounting.
YES
NO
Iskra
Mehaniz
mi
Holding,
d.d.,
Lipnica;
Slovensk
a
tiskovna
agencija,
d.o.o.,
Ljubljana
Senior lecturer
at the University
of Ljubljana’s
Faculty of
Economics.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
47
Name
Office
First
appointme
nt to
function
Completion
of
function/ter
m of office
Shareholder/e
mployee
representative
Partici
pation
in
Super
visory
Board
sessio
ns
Gender
Nationalit
y
Year
of
birth
Education /
professional
profile
Indepen
dence
per
stateme
nt of
indepen
dence
Existenc
e of
conflicts
of
interest
during
the
financial
year
Members
hip in
supervis
ory
bodies of
other
compani
es
Employment
Marko
Boštjančič
Member
9
September
2022
8
September
2026
Shareholder
representative
11/11
Male
Slovenian
1967
Holds a
bachelor's
degree in
law/telecomm
unications.
YES
NO
Director of
MIBO, d.o.o.,
Komunikacije,
Sarajevo
Alenka Čok
Pangeršič,
MSc
Member
9
September
2022
8
September
2026
Shareholder
representative
11/11
Female
Slovenian
1971
Holds a
bachelor’s
degree in
engineering
physics and a
master’s
degree in
management
and
organisation/
asset
management.
YES
NO
Executive
Director of Real
Estate
Management
Sector at Modra
zavarovalnica,
d.d.
Mateja Čuk
Orel, MSc
Member
9
September
2022
8
September
2026
Shareholder
representative
11/11
Female
Slovenian
1980
Holds
bachelor’s
and master’s
degrees in
law/
legal affairs.
YES
NO
GEN
energija,
d.o.o.,
Krško
SODO,
d.o.o.,
Maribor
Attorney-at-law
to the Law
Office of Čuk
Orel, Ljubljana
Iztok
Černoša
President
22 January
2021
9
September
2022
Shareholder
representative
11/11
Male
Slovenian
1984
Holds a
bachelor’s
degree in civil
engineering/
technology.
YES
NO
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
48
Name
Office
First
appointme
nt to
function
Completion
of
function/ter
m of office
Shareholder/e
mployee
representative
Partici
pation
in
Super
visory
Board
sessio
ns
Gender
Nationalit
y
Year
of
birth
Education /
professional
profile
Indepen
dence
per
stateme
nt of
indepen
dence
Existenc
e of
conflicts
of
interest
during
the
financial
year
Members
hip in
supervis
ory
bodies of
other
compani
es
Employment
Marko
Kerin
Member
22 January
2021
9
September
2022
Shareholder
representative
11/11
Male
Slovenian
1978
Holds a
bachelor’s
degree in
economics/
accounting,
auditing,
business
finance
department
and 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
9
September
2022
Shareholder
representative
10/11
Male
Slovenian
1977
Holds a
bachelor's
degree in
law/doctorate
in
constitutional
law.
YES
NO
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.
Radovan
Cerjak
Member
22 January
2021
9
September
2022
Shareholder
representative
11/11
Male
Slovenian
1967
Holds a
bachelor's
degree in law/
legal affairs.
YES
NO
Slovensk
a
tiskovna
agencija,
d.o.o.,
Ljubljana
Attorney-at-law
at the Law
Office of
Radovan Verjak,
Ljubljana
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
49
Name
Office
First
appointme
nt to
function
Completion
of
function/ter
m of office
Shareholder/e
mployee
representative
Partici
pation
in
Super
visory
Board
sessio
ns
Gender
Nationalit
y
Year
of
birth
Education /
professional
profile
Indepen
dence
per
stateme
nt of
indepen
dence
Existenc
e of
conflicts
of
interest
during
the
financial
year
Members
hip in
supervis
ory
bodies of
other
compani
es
Employment
Drago
Kijevčanin
Vice-
President
19
September
2018
(first term of
office)
15
November
2021
(current
term of
office)
14
November
2021
14
November
2025
Employee
representative
22/22
Male
Slovenian
1964
Telecommuni
cations
engineer/tech
nology.
YES
NO
NO
Telekom
Slovenije,
network
engineer in the
ICT and
Network
Services
organisational
unit, 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
22/22
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.
Rok
Pleteršek
Member
2 June
2022
14
November
2025
Employee
representative
16/16
Male
Slovenian
1990
Holds a
master’s
degree in law
/ legal affairs
and
telecommunic
ations.
YES
NO
NO
Telekom
Slovenije, ICT
and Network
Services,
member of the
Works’ Council.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
50
Name
Office
First
appointme
nt to
function
Completion
of
function/ter
m of office
Shareholder/e
mployee
representative
Partici
pation
in
Super
visory
Board
sessio
ns
Gender
Nationalit
y
Year
of
birth
Education /
professional
profile
Indepen
dence
per
stateme
nt of
indepen
dence
Existenc
e of
conflicts
of
interest
during
the
financial
year
Members
hip in
supervis
ory
bodies of
other
compani
es
Employment
Jana Žižek
Kuhar
Member
19
September
2018
(first term of
office)
15
November
2021
(second
term of
office)
14
November
2021
2 June 2022
Employee
representative
6/6
Female
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
(until 24 April
2022)
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
51
Work of the Supervisory Board
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. To that
end, it ensures the responsible and high-quality supervision of the operations of Telekom Slovenije
and the Telekom Slovenije Group. 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). No member of the Supervisory Board
disclosed any fact that could have affected their independence during the 2022 financial year.
The Supervisory Board met at 16 regular, one extraordinary and five correspondence sessions in
2022. It discussed different aspects of the Company’s operations and monitored the implementation of
plans. Specific topics were discussed in advance by the Supervisory Board’s committees. Based on
the proposals and assessments of committees, the Supervisory Board adopted the appropriate
decisions.
Within the scope of its competences, the Supervisory Board made the following responsible decisions
in 2022:
• adopted the annual business plan of Telekom Slovenije and the Telekom Slovenije Group for
the 2023 financial year;
• adopted the audited annual report of the Telekom Slovenije Group and Telekom Slovenije for
2021;
• appointed the President, Vice-President and two members to the Management Board;
• gave its consent to the appointment of managing directors of subsidiaries; and
• gave its consent to the purchase of a 100% participating interest in ACTUAL I.T.,
informacijske tehnologije, d.d. That agreement was concluded on 28 March 2022, but the
transaction was not completed for reasons beyond the Company’s control.
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 2022:
• reports on the operations of the parent company and subsidiaries;
• implementation of the Strategic Business Plan of the parent company and subsidiaries;
• assessments of the performance indicators of the Company and subsidiaries in each period;
and
• other information in connection with the operations of the parent company and subsidiaries.
The Supervisory Board partially updated its rules of procedure in April 2022. It performed an internal
assessment of its work in the spring of 2022 according to the methodology of the Slovenian Directors’
Association. No proposals for improvements were put forth.
Composition and functioning of Supervisory Board committees
Strategy Committee and Marketing and Technology Committee. It then reconstituted its committees,
and appointed three permanent committees: Audit Committee, HR Committee and Business
Development Committee. The aforementioned committees discussed individual areas of expertise in
accordance with their respective competences and tasks. 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 composition and most important tasks of individual committees in 2022 are described below:
As an advisory body, 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 audit
committee tasks at the subsidiaries Soline and Avtenta, which are public-interest entities, will be
carried out by the Audit Committee of Telekom Slovenije’s Supervisory Board.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
52
The Audit Committee’s members were as follows as at 31 December 2022:
• Aleksander Igličar, MSc (chair),
• Alenka Čok Pangeršič, MSc,
• Drago Kijevčanin,
• Barbara Gorjup, MSc – external member, and
• Dr Marko Hočevar – external member.
The composition of the Audit Committee changed in 2022. In September 2022, recalled member of the
Supervisory Board, Marko Kerin, was replaced by new member, Alenka Čok Pangeršič, MSc.
Information regarding the members of the Audit Committee who were also members of the Supervisory
Board in 2022 is presented in the table detailing the members of the Supervisory Board, while
information regarding the external members of the Audit Committee is presented in the table below.
Name
Committee
Gender
Nationality
Education
Year of
birth
Professional
profile
Membership in
supervisory bodies
of other companies
Barbara
Gorjup,
MSc
Audit
Committee
Female
Slovenian
Holds a master’s
of science.
1973
Accounting,
auditing,
business
finance,
business
valuation.
Member of the
Supervisory Board of:
HSE d.o.o., and
Triglav skladi, d.o.o.
Dr
Marko
Hočevar
Audit
Committee
Male
Slovenian
Holds a
doctorate in
economics.
1962
Accounting.
Member of the
Supervisory Board of:
Hidria holding, d.o.o.,
H&R, d.d., and
KZPS, d.o.o.
The Audit Committee met at nine ordinary sessions and held four correspondence sessions in 2022.
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 2022 and the resolutions of Telekom Slovenije’s Supervisory Board.
Key tasks performed by the Audit Committee in 2022 were as follows:
• it monitored and discussed financial reporting regarding the operations of the Telekom Slovenije
Group and Telekom Slovenije;
• it monitored the progress of and was briefed on the findings from the external audit of the annual
report and financial statements of the Telekom Slovenije Group and Telekom Slovenije;
• it discussed the annual report of the Telekom Slovenije Group and Telekom Slovenije for 2021;
• it discussed the Internal Audit Service’s quarterly reports regarding audits performed and the
implementation of issued recommendations;
• it discussed the annual report on the work of the Internal Audit Service for 2021, the service’s work
plan for 2023 and the strategic plan of the Internal Audit Service for the period 2023 to 2025, and
conducted interviews with the head of the ISA and its employees in the absence of the
Management Board;
• it periodically monitored the risk management system, the functioning of internal controls,
compliance, reports on lawsuits, reports on external supervision proceedings and reports on
suspected breaches of corporate integrity;
• 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
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
53
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 2021; and
• it performed the tasks of the audit committee at the subsidiaries Soline and Avtenta 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 appointed external auditor to sessions at which
quarterly reports on the operations of Telekom Slovenije and the Telekom Slovenije Group were
discussed.
With the aim of implementing continuous improvements and ensuring the quality of its work, the Audit
Committee performed a self-assessment of its work in March 2022 and discussed potential
improvements. It notified the Supervisory Board about the aforementioned self-assessment and
proposed improvements.
The HR Committee met at 12 regular sessions. Significant activities of the HR Committee included:
• procedures for appointing the President and members of the Management Board; and
• the discussion of the objectives of Management Board members for 2022, 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 2021.
The HR Committee’s members were as follows as at 31 December 2022:
• Mateja Čuk Orel, MSc (chair)
• Marko Boštjančič,
• Žiga Debeljak, MSc,
• Drago Kijevčanin, and
• Karla Pinter, MSc.
Radovan Cerjak chaired the HR Committee until 9 September 2022. Mateja Čuk Orel, MSc became
chair on 14 September 2022. At the same time, the Supervisory Board appointed Marko Boštjančič,
Žiga Debeljak, MSc and Karla Pinter, MSc to the aforementioned committee. Information regarding the
members of the HR Committee in 2022 is presented in the table detailing the members of the
Supervisory Board on pages 46 to 50.
The Marketing and Technology Committee met at one session at which Telekom Slovenije’s Cyber
Security Operation Centre was presented. All members of the Supervisory Board were invited to that
session.
The Strategy Committee did not meet in 2022.
The Marketing and Technology Committee and Strategy Committee were discontinued on 28
November 2022 due to the reconstitution of the Supervisory Board’s committees. The Supervisory
Board also appointed the Business Development Committee, which did not meet in 2022.
Members of the Business Development Committee as at 31 December 2022:
• Marko Boštjančič (chair),
• Žiga Debeljak, MSc,
• Karla Pinter, MSc,
• Dušan Pišek,
• Rok Pleteršek, and
• Dr Janez Bešter, external member.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
54
Information regarding the members of the Business Development Committee who were also members
of the Supervisory Board in 2022 is presented in the table detailing the members of the Supervisory
Board, while information regarding the external member of the Business Development Committee is
presented in the table below.
Name
Committee
Gender
Nationality
Education
Year
of
birth
Professional
profile
Membership
in
supervisory
bodies of
other
companies
Dr
Janez
Bešter
Business
Development
Committee
Male
Slovenian
Holds a doctorate in
telecommunications.
1955
Telecommunications
and multimedia.
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 2022 financial year, and based
on the annual report of the Telekom Slovenije Group and Telekom Slovenije for 2022, 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 2022 financial year and achieved established
objectives, particularly taking into account operations in the highly competitive environment in which
the parent company and subsidiaries operate.
Supervisory Board report on the verification of the annual report
The Supervisory Board discussed the annual report of the Telekom Slovenije Group and Telekom
Slovenije for 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 2022.
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 2022, together with the auditor’s report for 2022, immediately after compilation and the
issuance of the auditor’s opinion. The annual report of the Telekom Slovenije Group and Telekom
Slovenije for 2022 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. The Audit Committee of Telekom Slovenije’s Supervisory Board discussed the audited
annual report of the Telekom Slovenije Group and Telekom Slovenije for 2022 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 2022, and proposed that the Supervisory Board
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
55
approve the annual report of the Telekom Slovenije Group and Telekom Slovenije for 2022 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 2022, 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 2022 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 2022. The Supervisory Board approved the annual report for 2022 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 2022, and assessed that they are a
reflection of the actual governance of the Company in 2022.
Remuneration of Supervisory Board members
Supervisory Board members are entitled to basic payment for performing their functions, attendance
fees and additional payments for participation in Supervisory Board committees. Payments to
members of the Supervisory Board are defined by a general meeting resolution and are in line with the
remuneration policy for members of Telekom Slovenije, d.d.’s Management Board and Supervisory
Board. Also set out in the resolution are 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.
Management and governance of subsidiaries
Telekom Slovenije is the parent company of the Telekom Slovenije Group. It 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 defines uniform corporate governance within the Group, which facilitates
the optimisation of the operations of companies, and ensures the improved flow of information and the
exploitation of 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, in line with Telekom Slovenije’s Corporate
Governance Policy.
Management and supervisory tasks are performed in accordance with Slovenian law and the
applicable laws in the home countries of individual subsidiaries. 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:
• links with the Group’s strategy;
• governance in the form of management by objectives, where those objectives derive from the
Group’s strategy;
• clearly defined roles (tasks, competences and responsibilities) of those responsible for the
management and supervision of the Group; and
• 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 2022
56
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: Vesna Prodnik, MSc (President of the Supervisory Board), Sabina Merhar
and Helena Jakič
Dr Mitja Štular was a member and President of the Supervisory Board until 13 November 2022.
Infratel, d.o.o.
Managing Director: Dr Zef Vučaj
Optic-Tel, d.o.o.
Managing Director: Dr Zef Vučaj
Avtenta, d.o.o.
Managing Director: Primož Kučič
TSmedia, d.o.o.
Managing Director: Igor Gajster
Rajko Gerič was Managing Director until 21 October 2022. The function of Managing Director
was performed by Irma Gubanec, MSc from 22 October 2022 to 14 December 2022.
Soline, d.o.o.
Managing Director: Klavdij Godnič
TSinpo, d.o.o.
Managing Director: Sandra Peršak
OTHER COUNTRIES
IPKO Telecommunications LLC, Kosovo
CEO: Tomaž Seljak, MSc
SIOL, d.o.o. Zagreb, Croatia
Managing Director: Simon Furlan, MSc
SIOL, d.o.o. Podgorica, Montenegro
Managing Director: Simon Furlan, MSc
SIOL, d.o.o. Sarajevo, Bosnia and Herzegovina
Managing Director: Simon Furlan, MSc
SIOL, DOOEL Skopje, North Macedonia
Managing Director: Simon Furlan, MSc
SIOL DOO BELGRADE, Serbia
Managing Director: Simon Furlan, MSc
SIOL Prishtina LLC, Kosovo
Managing Director: Simon Furlan, MSc
GVO Telekommunikation GmbH, Germany
Liquidator: Roman Mazi
The company was headed by Managing Directors Borut Radi, Darko Gradišnik and Roman Mazi
until 23 March 2022.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
57
5.4. 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 is based on 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, precise, reliable, timely
and complete accounting records, and true, fair 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 built into the
IT infrastructure, which comprises, inter alia, controls over restrictions on access to data and
applications, and controls over access to data and applications as a way to control 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 Group
strives to ensure an appropriate system of internal controls that includes:
• responsibilities for processes;
• competences and responsibilities for specific tasks;
• automated and manual controls in processes;
• accounting and business information systems at the parent company and subsidiaries;
• controls for the prevention of errors and risk management; and
• the adaptation of internal controls 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.
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 2022. 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 6 Share trading and ownership structure.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
58
– 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
2022: 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 the Company’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, the Company
undertook to comply with the relevant reporting standards. Telekom Slovenije once again provided
investors with high-quality, timely, relevant and reliable information in 2022.
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
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
59
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 8.1.2 Compliance and anti-corruption.
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.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
60
5.5. 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 2022, 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 2022 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 provide 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.
Boštjan Košak,
President of the
Management Board
Boštjan Škufca
Zaveršek, MSc,
Vice-President of
the Management
Board
Irma Gubanec,
MSc,
Member of the
Management Board
Vesna Prodnik, MSc
Member of the
Management Board
Špela Fortin
Member of
Management Board –
Workers Director
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
61
6. SHARE TRADING AND OWNERSHIP STRUCTURE
21
General data on Telekom Slovenije, d.d. shares as at 31 December 2022
General information regarding shares
Ticker symbol
TLSG
ISIN
SI0031104290
Listing
Ljubljana Stock Exchange, prime
market
Share capital (EUR)
272,720,664.33
Number of ordinary registered no-par value shares
6,535,478
Number of shares held in treasury
36,836
Number of shareholders as at 31 December 2022
8,458
Trading in TLSG shares in 2022
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 SBITOP TR
share indices, and accounted for 4.04% of those indices according to the quarterly review of
computational parameters conducted on 19 December 2022. The SBITOP and SBITOP TR are the
Slovenian ‘blue chip’ indices that provide information regarding the movement of the most liquid and
largest shares on the Ljubljana Stock Exchange. In contrast to the SBITOP, the SBITOP TR takes into
account both market prices and 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. This is also a total return index
that takes into account both changes in share prices and dividend yield.
The price of TLSG shares closed at EUR 47.20 on the last trading day of 2022, a year-on-year
decrease in value of 16.01%. The value of the SBITOP was down by 16.89% during the same period.
Turnover in Telekom Slovenije’s shares (excluding block trades) totalled EUR 10.18 million,
representing 2.64% of total turnover on the Ljubljana Stock Exchange. The market capitalisation of
Telekom Slovenije’s shares stood at EUR 308.47 million at the end of the year, and accounted for
4.04% 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
2022
2021
Highest daily price
61.00
64.60
Lowest daily price
46.40
44.00
Average daily price
54.83
54.37
Volume in EUR thousand
2022
2021
Total volume for the year
10,180.02
12,892.90
Highest daily volume
653.46
558.10
Lowest daily volume
0.00
0.00
Average daily volume
40.56
51.16
21
GRI 2-6
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
62
Movement in the share price and volume of trading in TLSG shares
Source: Ljubljana Stock Exchange, archive of data.
Movement in the TLSG share price compared to the SBITOP (index: 31 December 2021 = 100)
Source: Ljubljana Stock Exchange, archive of data.
Key financial data relating to TLSG shares
31
December
2022
31
December
2021
Closing price of one share on the last trading day of the period in EUR
47.20
56.20
Book value of one share in EUR*
93.59
91.87
Net earnings per share in EUR**
5.77
5.82
P/BV
0.50
0.61
Capital return per share during the period in %***
-16.01
28.90
* 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.
0
200
400
600
800
45
50
55
60
65
in EUR thousand
EUR
Turnover (right axis)
TLSG price (left axis)
70
75
80
85
90
95
100
105
110
115
Index
TLSG
SBITOP
TLSG
SBITOP
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
63
Ownership structure and largest shareholders at the end of 2022
22
Telekom Slovenije had 8,458 shareholders at the end of 2022, a decrease of 124 relative to the
previous year. Domestic investors are predominant in the ownership structure, with the Republic of
Slovenia holding a 62.54% stake in the Company.
Ownership structure of shareholders at the end of 2022
The concentration of ownership, as measured by the ownership stake held by the ten largest
shareholders, stood at 80.17% at the end of the year, an increase of 0.07 percentage points in year-
on-year terms. The order of the top ten owners was unchanged.
Ten largest shareholders
22
GRI 2-1
Republic of Slovenia 62.54%
Individual shareholders (domestic and foreign) 14.36%
Foreign legal entities 6.23%
Kapitalska družba d.d. (pension fund manager; KAD)
5.59%
Slovenian Sovereign Holding , d.d. 4.25%
Domestic financial companies and funds 4.16%
Domestic companies 2.30%
Treasury shares 0.56%
62.54%
5.59%
4.25%
2.69%
1.76%
1.22%
0.81%
0.56%
0.38%
0.37%
0%10%20%30%40%50%60%70%
Republika Slovenija
Kapitalska družba, d.d.
Slovenski državni holding, d.d.
Citibank N.A. - fiduciarni račun
Raiffeisen Bank International AG (RBI)
Perspektiva FT, d.o.o.
Kritni sklad prvega pokojninskega…
Telekom Slovenije, d.d.
Lisca d.o.o.
NLB Skladi - Slovenija mešani
31.12.2022
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%
Republika Slovenija
Kapitalska družba, d.d.
Slovenski državni holding, d.d.
Citibank N.A. - fiduciarni račun
Raiffeisen Bank International AG (RBI)
Perspektiva FT, d.o.o.
Kritni sklad prvega pokojninskega…
Telekom Slovenije, d.d.
Lisca d.o.o.
NLB Skladi - Slovenija mešani
31.12.2021
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
64
Shares held by the Management Board and Supervisory Board of Telekom Slovenije
Members of the Management Board and Supervisory Board held 398 TLSG shares at the end of
2022.
Name
Office
Number
of
shares
% of equity
Supervisory Board
Aleksander Igličar, MSc
Member of the Supervisory Board
150
0.00230
Drago Kijevčanin
Vice-President of the Supervisory Board
212
0.00324
Dušan Pišek
Member of the Supervisory Board
36
0.00055
Total Management Board
and Supervisory Board
398
0.00609
Trading in corporate shares by representatives of the Company and reporting on such transactions
are governed at Telekom Slovenije by the applicable legislation and the Rules Restricting Trading in
the Shares of Telekom Slovenije.
Investor relations
23
In the area of investor relations, we adhere to the principles of 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 taking into account the criteria and standards that apply to the issuers of shares on the
prime market. The Company communicates 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 2022:
– we sent the TLSG electronic newsletter to registered domestic and foreign recipients quarterly
following the publication of operating results. The electronic newsletter 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 Meetings 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 44 press releases
were issued in 2022, with simultaneous publication in Slovene and English.
Financial calendar
The financial calendar for 2022 is published in the Ljubljana Stock Exchange’s SEOnet system and on
the Company’s website (https://www.telekom.si/en/investor-relations/financial-calendar). Potential
changes to the financial calendar are published in the same place.
Dividend Policy
The goal of Telekom Slovenije’s dividend policy is to pay stable dividends taking into account available
sources and the Company’s financial capacities. That policy also considers the achievement of the
optimal structure of capital.
At the 34th General Meeting of Shareholders, shareholders adopted a resolution on the use of
distributable profit for 2021. The Company paid shareholders gross dividends of EUR 4.50 per share
on 2 August 2022. In accordance with the Common European Standards for Corporate Actions,
dividend payments are carried out via KDD and its members, brokerage firms and banks.
23
GRI 2-29
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
65
Treasury shares
The Company’s 33rd General Meeting of Shareholders held on 18 June 2021 authorised the
Management Board to acquire treasury shares for a period of 12 months. In accordance with the
treasury share repurchase programme adopted on 4 November 2021, the Company repurchased
6,836 treasury shares in 2022, representing 0.10% of all issued shares. The value of those shares,
including the associated purchase costs, was EUR 394,200.72. The Company held 36,836 treasury
shares on the final day of 2022, representing 0.56% of all issued shares.
The 34th General Meeting of Shareholders did not adopt a resolution authorising the Management
Board to acquire treasury shares for the next 36 months.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
66
7. OPERATIONS OF THE TELEKOM SLOVENIJE GROUP IN 2022
7.1. Business environment and trends in the sector
7.1.1. Impact of the macroeconomic environment on operations
Slovenia
GDO was up by 5.4% in real terms in 2022, with that growth deriving primarily from the recovery
following the epidemic, and was highest during the first half of the year (9.4% in year-on-year terms).
Year-on-year growth slowed significantly during the second half of the year (to 1.7%) as the result of
uncertainty in the international environment due to the energy crisis and the consequences of the war
in Ukraine. There is less uncertainty in the international environment regarding the supply of energy
and changes in the prices thereof, and a gradual improvement in outlooks. Also encouraging was
GDP growth in the final quarter of 2022, which was slightly higher than expected in Slovenia and the
euro area, primarily as a reflection of the resilience of economies and the effects of agreements and
measures adopted to mitigate the impact of the energy crisis on confidence indicators, and the easing
of energy prices.
The spring 2023 forecast of the Institute of Macroeconomic Analysis and Development envisages a
sharp decline in economic growth (to 1.8%) and slightly higher GDP growth in the coming years (2.5%
in 2024 and 2.6% in 2025).
Uncertainty in the international environment has eased, but remains elevated and is linked primarily to
the course of the war in Ukraine and conditions on the energy markets. The risk of lower economic
growth is also linked to the potential persistence of high inflation. There are also other increased risks
at the global level in connection with economic activity in China, the impacts of climate change, social
unrest in the context of high energy and food prices, and geopolitical and pandemic-related conditions.
Key macroeconomic indicators in Slovenia
Source: SURS, BS, ECB, EIA, Eurostat, UMAR calculations and forecasts (Spring Forecast of Economic Trends, March 2023).
Kosovo
The prices of telecommunication services in Kosovo, where IPKO operates, are considerably lower
than in Slovenia. The reason lies in low GDP per capita, which is seven times lower than Slovenia,
and high unemployment. The economy remains dependent on economic and employment
developments in Western Europe, and on foreign direct investments.
The economy in Kosovo recovered following the COVID-19 pandemic, supported by private
consumption, record growth in exports, a sharp increase in the number of visits by expatriates, strong
growth in lending and substantial fiscal stimulus. As the economy recovered, the fiscal balance
improved and growth in public debt slowed. The recovery was also accompanied by extremely high
inflationary prices, primarily due to rising import prices.
The long-term effects of external pressures could further weaken economic opportunities in Kosovo.
Structural bottlenecks, such as outdated power generation capacities, add to the uncertainty. GDP
was up by 3.26% in real terms in the third quarter of 2022 relative to the same quarter in 2021 (source:
-4.3
8.2
5.4
1.8
2.5
2.6
2020 2021 2022 2023 2024 2025
GDP, real growth in %
-6.9
9.5
8.9
1.2
1.8 1.8
4.1
5.8
0.9
1.2
1.8
1.9
2020 2021 2022 2023 2024 2025
Private consumption (real growth %)
State consumption (real growth %)
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
67
Kosovo Agency of Statistics). Existing private investments, accelerated public investments and
consumption are expected to drive growth.
Gross domestic product in Kosovo
Source: International Monetary Fund, World Economic Outlook Database, October 2022.
Market situation and challenges in the European telecommunications sector
4.8
-5.3
9.5
2.7
3.5
3.9
2019 2020 2021 2022 2023 2024
GDP, real growth in %
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
68
7.1.2. Comparison of the Slovenian telecommunications sector with the EU
Source: European Commission, Digital Economy and Society Index, DESI 2022, Slovenia; AKOS – Household penetration rate
of active mobile telephony users in third quarter of 2022 (source for EU: Analysys Mason, average for Western, Central and
Eastern Europe for 2022).
Fixed broadband access market
Coverage by the very high-capacity fixed network is higher in Slovenia than the EU average, and rose
even further in 2021 (from 66% to 72%). Challenges remain in rural regions where the proportion of
households covered by the very high-capacity fixed network is 46%.
The penetration of broadband connection with a speed of at least 100 Mb/s has increased in Slovenia
(from 29% of households to 36% in 2021), but remains lower than the EU average. A total of 89% of
Slovenian households are covered by high-speed next-generation networks, which is one percentage
point lower than the EU average.
The fixed broadband connection network is growing slowly in Slovenia. IPTV continues to achieve
growth, which is otherwise slowing, while IP telephony (VoIP) records the lowest growth.
77%
36%
0.02%
89%
72%
87%
99.9%
126%
37%
85%
72%
78%
41%
7.6%
90%
70%
87%
99.8%
130%
66%
73%
50%
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)
Fiber to the premises (FTTP) coverage, % of households
EU Slovenia
A total of 72% of households in Slovenia access the internet via the fibre optic
network (figures for 2022) compared with 50% of EU households. FTTX
connections accounted for 51.4% of all broadband connections in Slovenia in the
third quarter of 2022.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
69
Growth in fixed broadband connections in Slovenia
Source: AKOS, SURS (third quarter of 2022).
Pay TV market
According to the forecasts of analysts at Analysys Mason, IPTV connections will continue to rise, both
in terms of number and value. The number of cable TV users will continue to fall in that context, while
OTT services (video content via the internet) will become as popular as IPTV by 2026.
Fixed telephony market
According to the forecasts of analysts at Analysys Mason, the fixed telephony market in Western
Europe will contract at an annual rate of 6.5% (CAGR) to EUR 18.7 billion in revenues by 2026 (from
EUR 28.1 billion in 2020).
Mobile services market
The mobile broadband internet access market continues to be one of the fastest growing in Europe.
Users primarily use mobile access on mobile phone, followed by tablets and laptop computers.
European households primarily use fixed technologies to access the internet at home, while an
increasing number are also opting for mobile internet services.
5%
4%
4%
4%
3%
2%
1%
2%
2%
-0,7%
1%
2%
3%
4%
2%
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
3Q2018 3Q2019 3Q2020 3Q2021 3Q2022
Broadband Connections IP telephony IP television
IPTV accounts for 58.8% of all TV connections in Slovenia and continues to
grow. It is followed by cable TV (36.1%), where the number of connections has
stagnated (third quarter of 2022; source: AKOS). At 40.9% (third quarter of
2022), Telekom Slovenije holds the highest share of the IPTV market (source:
AKOS).
The proportion of IP telephony connections stood at 90.4% in Slovenia at the
end of the third quarter of 2022. That proportion is rising, albeit more slowly than
in previous years.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
70
In the mobile segment, Slovenia’s per capita penetration rate of active mobile telephony users is
lower than the EU average (126.2% in the third quarter of 2022). According Analysys Mason,
coverage and use of the 5G network will grow in Western Europe until 2026. A total of 65% of mobile
connections will use 5G technology by 2026. Average revenue per user (ARPU) will remain largely
unchanged (EUR 16 on average), as operators will have difficulty selling 5G services at higher prices.
The prepaid segment will account for 27% of mobile connections and 13% of mobile revenue in
Western Europe until 2026, and will continue to be an important element of the mobile market.
Mobile connection with regard to type of subscription and proportion of 5G connections, Western
Europe (in EUR million), 2016–2026
Source: Analysys Mason – Western Europe telecoms market: trends and forecasts 2021–2026, February 2022, based on data
up to 3Q 2021.
B2B market
24
Operator revenues from ICT services, which include security, unified communications, co-locations
and cloud services, such as SaaS in IaaS, will increase at an annual rate of 8.5% (CAGR) between
2021 and 2026 in Western Europe, to EUR 19.9 billion (source: Analysys Mason). The uptake of
these services by companies is growing rapidly and was accelerated by the COVID-19 pandemic,
which in turn has increased the need for digital transformation. Revenues from ICT services are
expected to rise sharply by 2026.
Operator revenues from dedicated connections will rise slightly between 2021 and 2026, from EUR
15.9 billion in 2021 to EUR 16.1 billion in 2026. Demand for bandwidth per connection is rising due to
the intensifying migration of business applications to the cloud. However, revenue growth will be
limited by price competition and the increased availability of alternative solutions, which are based on
high-quality broadband services, together with other software-supported network services.
The number of IoT connections will rise at an annual rate of 21.6% (CAGR) between 2020 and 2026.
There will be more than 6.9 million 5G IoT connections by 2025, the majority from the automotive
sector. This will not, however, translate to significant growth in operator revenues.
Total revenues from the IoT value chain will rise at a rate of 12.6% (CAGR) between 2020 and 2026,
but the proportion of connection revenues that they account will fall. Total revenues from the wireless
IoT value chain will reach almost EUR 30 billion in Western Europe in 2026. However, the connectivity
services offered by operators will continue to account for a small proportion of total revenues due to
stiff competition on the IoT connection market.
Revenues from ICT services will rise by 7.9% (CAGR) in Slovenia by 2026. Having a significant
impact on that growth will be an increase in the number of IoT connections (14% CAGR).
Nevertheless, IoT connections will account for just 2.6% of revenues in the mobile segment in 2026.
24
SDG 8.2
The household mobile broadband access penetration rate stood at 96.3% in
Slovenia in the third quarter of 2022 and will continue to rise.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
71
The Telekom Slovenije Group sees opportunities for growth in revenues from ICT
services in the development of the existing superior LTE/4G network and in the
opportunities brought by fifth generation (5G) mobile networks. The latter facilitates 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, healthcare,
and protection and rescue (public safety). Intensive activities are being carried out to upgrade
networks and develop services. More information can be found in section 8.1.1 Development of the
network, technologies and services.
Revenues from ICT services, forecast for Slovenia, in EUR million
Source: Analysys Mason – Central and Eastern Europe telecoms market: trends and forecasts 2021–2026, January 2022,
based on data up to 2Q 2021.
26.2
31.2
34.3
37.3
40.1
43.2
46.9
50.6
54.6
58.9
63.2
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
CAGR 2020 - 2026 = 7,9 %
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
72
7.2. 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.
Risk management also includes the management of opportunities, the self-assessment of internal
controls and various risk assessment models. We continuously maintain and upgrade our
comprehensive approach to the management of risks and opportunities, which reflects the structure
and culture of the Company. We raise employee awareness for the effective identification and
assessment of risks, and the management thereof through the appropriate measures. We also brief
other stakeholders about significant risks.
Risk management framework
We define risks as potential events that could have an adverse effect on the achievement of our
objectives, while opportunities are potential events with a positive impact on the Company’s ability to
achieve its objectives.
That framework, which includes a three-line model of defence and the risk management process, is
integrated at all Group companies. The risk management process is developed and coordinated by
the organisational unit responsible for compliance and risk management. We ensure transparent and
effective communication about risk management through the definition of duties, powers and
responsibilities.
We address risks individually, and assess various scenarios for the improved and more
comprehensive understanding of the spectre of those risks. Every risk to which we are exposed is
classified with regard to type of risk, for which we identify external and internal factors. The categories
are:
• strategic risks,
• financial risks,
• operational risks, and
• regulatory and compliance-related risks.
We regularly monitor the effects of the external and internal environment, and assess new risks and
their impact on existing risks on that basis. We carried out additional risk assessments in the area of
sustainable operations and regarding the impact of the war in Ukraine.
Risks are subject to constant change. For this reason, risk owners not only monitor measures, but also
the appropriateness and effectiveness of the existing risk management strategy. The Group also
monitors exposure, which is calculated according to an internal methodology.
Representing an integral part of risk management is the review of key internal controls. The latter
focus on the reliability and continuity of business processes, ensuring compliance via internal acts and
regulations, the accuracy and reliability of financial reporting, and the protection of information and
assets. 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, The self-assessment of
internal controls contributes to the more transparent identification of weaknesses and to more effective
risk management.
In addition to its other tasks, the IAS reviews risk management at the Company in the scope of its
audit activities. The Management Board is continuously briefed on the assessment of risks within the
Group, and on findings from audits of operations by various assurance providers. 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. The IAS reports in accordance with professional guidelines.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
73
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 management officer reports to the
Internal Controls Committee regarding the self-
assessment of internal controls within the Group.
The committee also discusses key changes in
internal controls.
Key highlights and developments from risk
management in 2022
3 sessions
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
74
Risk management strategies
The risk environment is becoming increasingly complex. For this reason, we are continuously
improving the risk identification and assessment process, complementing the risk profiling approach,
expanding the range of scenarios for risk assessment, and assessing and monitoring opportunities.
We will continue to dedicate special attention in the future to the culture of identifying and managing
risks and opportunities.
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 level
(very high, high,
moderate and low).
Presented below are key risks during the final quarter of 2022, assessed for the next 12 months, and a
comparison of their trend relative to the same period in 2021. The level of risk takes into account
measures and internal controls.
Trends are indicated as follows:
→ Assessed risk is unchanged
↓ Assessed risk is lower
↑ Assessed risk is higher
TELEKOM SLOVENIJE
Strategic risks
Characteristic of the Slovenian market are stiff competition, regulatory influences, the price sensitivity
of users and the migration of voice traffic to OTT platforms. Users expect high-quality services at lower
prices. The management of these risks requires a targeted market approach and the continuous
introduction of innovations, the monitoring of trends and the expectations of users, and the
management of regulatory requirements. We emphasise the high-quality and availability of services
for all user segments, the continuous adaptation of business solutions and the portfolio, and the
continuous introduction of the latest developments for individual groups and segments of users.
Probability
Impact
Very
high
High
Moderate
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 2022
75
Risk
What is the risk?
What is the effect?
How is the risk managed?
Reduction in
profitability from users
of mobile and fixed
services – mass market
Aggressive competition
on the market of
services, 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. Sales of additional
services (software options, turbo
Wi-Fi, etc.). Product lifecycle
management. Optimisation and
digitalisation of processes for
users. Cross-selling of mobile
and fixed services.
Level of risk
→
Trend
Strategic objective
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.
Active participation in market
analysis and supervision
processes by the regulator.
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 with international
operators and an agreed traffic
volume. Expansion of roaming
capacities.
Level of risk
→
Trend
Strategic objective
Reduced profitability of
the ICT segment – B2B
market
Aggressive competition
with a range of
alternative and innovative
solutions, and the
migration of users
between operators.
Price pressures.
New technologies and
price erosion.
Integration of ICT
services.
Loss of revenues.
Lower margin.
Strategic partners for innovative
solutions and activities in the sale
of cyber security, IT support,
eCare and telemedicine services,
and comprehensive ICT solutions
tailored to the needs of business
customers. Simplification of
processes and digitalisation
programmes (digital
communication with users, simple
IT architecture and technology).
Level of risk
↑
Trend
Strategic objective
Regulatory and compliance-related risks
In our operations, we comply with valid legislation, as well as the decisions and aspects of sectoral
regulations and other competent bodies. We manage regulatory risks through organisational and
procedural measures, 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.
On 31 March 2022, the AKOS published the regulatory predictability strategy on the electronic
communications market for the period 2022 to 2024. On 28 September 2022, the National Assembly
approved the new Electronic Communications Act (ZEKom-2), which transposed the European
Electronic Communications Code (EECC). The revised act and pending implementing regulations
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
76
bring new requirements in the performance of the Company’s core activity and processes, which we
have already begun to adapt and will continue adapting in 2023.
In contrast to the majority of areas that it governs, the ZEKom-2 has maintained existing arrangements
in the area of personal data processing. The act governs the Company’s core activity and, in addition
to Regulation (EU) 2016/679 of the European Parliament and of the Council on the protection of
natural persons with regard to the processing of personal data and on the free movement of such data
(General Data Protection Regulation or GDPR) and the Personal Data Protection Act, is the key
regulation covering the processing of personal data. Telekom Slovenije processes extensive
collections of personal data relating to users, business partners, employees and other stakeholders.
That processing brings risks that we assess and monitor, while we formulate the appropriate
measures to manage those risks. In December 2022, the National Assembly also confirmed the new
Personal Data Protection Act (ZVOP-2), which entered into force in 2023. In addition to the final
transposition of the GDPR, the ZVOP-2 brings additional requirements in the processing of personal
data that we will integrate into operations. We also monitor the drafting of other regulations at the
national and EU level, in particular new directive on privacy and electronic communications (e-
privacy).
Risk
What is the risk?
What is the effect?
How is the risk managed?
Risk of regulatory
pressures on the fixed
and mobile electronic
communications market
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.
Claims for
damages.
Monitoring of changes in the
regulatory framework in
Slovenia and the EU.
Assessments of effects in the
development of new services;
response to incidents through
the formulation of measures.
Training of employees and
authorised agents.
Level of risk
→
Trend
Strategic objective
Financial risks
We regularly monitor changes in the financial environment and the different financial risks to which we
are exposed in our operations. To that end, we balance the optimal source of financing, ensure the
appropriate maturities and diversification of financial debt, and the appropriate structure of debt
bearing fixed and variable interest rates. We manage liquidity risk by managing and planning cash
flows and optimising working capital, through short-term credit lines that are regularly rolled over with
respect to needs, and through the use of liquid funds within the Group.
We manage credit risk through the active monitoring of the operations of subscribers and credit
assessment thereof, 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 elements of comprehensive credit risk management.
We manage risks in connection with rising interest rates by increasing the proportion of debt bearing a
fixed interest rate.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
77
Risk
What is the risk?
What is the
effect?
How is the risk managed?
Optimal sources of
financing
Increased need for cash
for the payment of
dividends.
Inability to ensure a
long-term stable
dividend policy.
Deviations from
optimal sources of
financing.
Additional needs for
financing to pay
dividends.
Timely provision of cash in the
scope of commitments in loan
agreements.
Implementation of the dividend
policy.
Level of risk
↓
Trend
Strategic objective
Subscriber credit risk
Increased proportion of
past-due receivables.
Additional
impairments 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
Interest rate risk
Unfavourable trends in
market interest rates.
Higher finance
costs due to
interest.
Increased proportion of debt
bearing fixed interest rates.
Level of risk
↑
Trend
Strategic objective
Operational risks
We dedicate a great deal of attention to the management of operational risks in the area of ICT,
where complexity is increasing due to the development of new technologies and ICT services, the
increasing expectations of users and regulatory requirements. We control those risks through the
management and development of sub-systems, improvements in operational efficiency and
processes, and the training of employees, all while supporting new business opportunities. Due to the
development of the market and technologies, we continuously optimise the network, data centres and
other technical infrastructure. The use of standard (cloud) building blocks in the network and
information systems is increasing. In line with growth in traffic, we are continuing to upgrade the
capacities of equipment and increasing the number of licences in the mobile network. Multiple
activities are in progress to replace MPLS backbone communications equipment and upgrade the
mobile packet network. Modern network technology (Software Defined Access or SDA), which already
includes the ‘zero trust’ principle of cyber security and advanced user authentication and authorisation
techniques, is being introduced at an accelerated rate in the internal business network. We are
dedicating special attention to internal training in the area of information security and the spreading the
security culture.
To ensure business continuity, we regularly assess and, as necessary, upgrade the topologies and
capacities of the infrastructure and ICT services. The risks associated with the malfunctioning of
connections and services provided for us by partners are managed by introducing processes to
monitor and report on service-level agreements on leased networks, and by standardising
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 also perform security checks and share knowledge and data
regarding threats with European telecommunications operators, in particular with international cyber
incident response teams.
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 that functions 24/7. We manage risks through the implementation
of the security policy, by identifying security threats and vulnerabilities, and by spreading the security
culture. We invest in the permanent development of capacities (people, processes and technologies)
and thus improve resilience.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
78
We continuously improve processes and mechanisms for ensuring the continuity of systems and
applications, and are consolidating the BSS/OSS architecture and IT solutions for sales projects.
Due to conditions in the global markets, we are also facing higher prices of electricity and other energy
sources. To that end, we are monitoring the situation and adapting electricity purchasing models, and
making partial purchases of electricity. We actively work with government authorities and other
institutions to ensure the continuous functioning of services.
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 regular communication with
suppliers, continuously monitor the availability of goods and the timeliness of deliveries, draw up
forecasts and order goods in advance, search for alternative suppliers and employ a strategy of two or
more suppliers. We also explore the possibility of additional suppliers, in particular for critical goods
and services.
HR risks relate primarily to retaining and recruiting staff with specific expertise and certificates, as
there is increased demand on the labour market for employees with such knowledge. We manage
these risks through the development of employees and internal mobility, by supporting employees in
the acquisition of various skills, through targeted development and training programmes, and through
the internal transfer of knowledge. To that end, we upgrade employee motivation and remuneration
systems, and systematically build the employer brand. We are included in secondary school and
university-level educational programmes, where we actively work with young people and offer
company scholarships. We place a great deal of emphasis on the well-being of employees, and on
measures in connection with occupational safety and health.
Risk
What is the risk?
What is the
effect?
How is the risk managed?
Functioning of systems
and ensuring
information and cyber
security
Threats to the
confidentiality, integrity
and
availability of networks,
systems or data as the
result of a potential
cyber-attack.
Loss of revenues
and reputation,
higher costs and
user dissatisfaction.
Introduction of the security
segmentation of the internal
business network (micro
segmentation).
Preventive inspections of the
functioning of systems, and
ensuring the appropriate
detection, redundancies and
capacities.
Introduction of additional
security mechanisms at the
application level.
Continuous implementation and
updating of the security policy
and processes of planned
works, and internal and external
assessments.
Continuous employee training
and awareness-raising
regarding security risks.
Systematic implementation of
various security tests (phishing,
penetration tests and system
recovery tests).
Level of risk
→
Trend
Strategic objective
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
79
Functioning of IT
systems and security
Dependence on external
contractors with regard
to certain existing (out-
dated) solutions and
technologies.
Malfunctioning of
services, limits on
the implementation
of changes.
Reduced efficiency
in the rectification
of problems.
Dissatisfaction of
customers
Management of the lifecycle of
IT systems and applications.
Implementation of planned
projects to consolidate
BSS/OSS solutions.
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 and
procurement
procedures.
Termination of
agreements with
suppliers.
Centralised procurement.
Proactive communication
with suppliers and agreements
on measures to mitigate risks in
the supply chain.
Collection of offers from several
suppliers and search for new
suppliers. Strategy of two or
more suppliers. Monitoring of
the cooperation of strategic
partners, and supplier
assessment. Ensuring the
necessary safety 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
certificates for
strategic projects
and the smooth
implementation of
business
processes.
Development and internal
mobility. Employee training,
mentorship and the internal
transfer of knowledge, the
acquisition of new skills and
competences, leadership
development systems. Financial
and non-financial remuneration
systems, and employee
motivation. Activities to further
strengthen the employer brand
and the attractiveness of
employment. Promotion of the
cooperation, commitment and
networking of employees.
Active cooperation with social
partners.
Level of risk
→
Trend
Strategic objective
Avtenta
Risk
What is the risk?
What is the effect?
How is the risk managed?
Human resource risks
Lack of experts for the
implementation of
projects.
Higher costs and
impact on project
implementation.
HR strategy focused on
retaining and recruiting staff.
Employee motivation.
Level of risk
→
Trend
Strategic objective
Achievement of
projected revenues
Postponement of
purchase decisions by
customers.
Lower revenues.
Regular communication with
customers. Upgrading of
existing solutions with additional
modules and functionalities.
Level of risk
↑
Trend
Strategic objective
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
80
GVO
Risk
What is the risk?
What is the effect?
How is the risk managed?
Securing of investment
projects and major
transactions
Unexploited
opportunities, in terms of
securing major
investment projects and
major transactions.
Lower revenues.
Regular monitoring and search
for new opportunities on the
market via existing and new
partners. Regular monitoring
and submission of bids in the
scope of public tenders.
Construction of the open
broadband network.
Level of risk
↑
Trend
Strategic objective
Human resource risks
Departure of key
employees. Shortage of
employees with the
relevant knowledge.
Higher costs, loss
of revenues.
Regular implementation of
measures to improve the age
structure and flexibility of the
employee structure.
Organisation of regular and
additional training programmes,
and the co-financing of studies.
Cooperation with educational
institutions, and the introduction
of company scholarships.
Agreement with social partners
and remuneration for special
achievements.
Level of risk
→
Trend
Strategic objective
TSinpo
Risk
What is the risk?
What is the
effect?
How is the risk managed?
Achievement of
projected revenues
Reduced volume of
sales. Non-optimal
employee structure.
Lower revenues
and higher costs.
Active sales, and online and
direct communication. Ensuring
the optimal employee structure.
Level of risk
→
Trend
Strategic objective
TSmedia
Risk
What is the risk?
What is the
effect?
How is the risk managed?
Achievement of
projected revenues
Reduction in the scope of
advertising.
Lower revenues.
Conclusion of annual
agreements, new advertising
products and sales campaigns.
New contextual video projects
and a sales-advertising channel
via targeted advertising.
Level of risk
→
Trend
Strategic objective
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
81
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
Risk of changes to the
concession agreement
on the management of
the SSRP
Change to the
concession agreement
on the management of
the SSRP.
Impact on Soline’s
business model.
Fulfilment of obligations in
accordance with the Decree on
the concession for the
management of the SSRP and
use of natural assets in the
Sečovlje saltpans.
Level of risk
→
Trend
Strategic objective
IPKO
Risk
What is the risk?
What is the
effect?
How is the risk managed?
Achievement of the
planned number of
subscribers – mobile
segment
Failure to achieve the
planned number of
subscribers due to the
traditionally prepaid
market. Changing user
habits and aggressive
competition through
favourably priced prepaid
packages.
Lower revenues.
Innovative offers to attract new
users. Migration of existing users
to better packages. Adaptation of
offer.
Level of risk
→
Trend
Strategic objective
Loss of users and
revenues in the fixed
prepaid service
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
prepaid users. Additional
services to retain existing users.
Campaigns to attract inactive
users. Adaptation of offer.
Level of risk
→
Trend
Strategic objective
Achievement of
revenues from
business users
Failure to achieve planned
number of new business
users. Aggressive
competition through low
prices. Employee turnover.
Lower margin.
Reduced number
of subscribers.
Campaign to attract new
business users. Cross-selling.
Additional sales campaign for
users with growth potential.
Level of risk
New
Trend
Strategic objective
Loss of premium fixed
Failure to achieve planned
Loss of revenues
Advertising and promotion of
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
82
subscribers
number of subscribers in
the fixed network due to
changing content for
existing subscribers.
and higher costs.
new packages to retain users.
Further enhancement of TV
content and the search for
additional alternative
approaches.
Level of risk
→
Trend
Strategic objective
Acquisition of
frequencies
Unfavourable conditions for
the acquisition of the
frequencies that the
Company requires to
provide broadband mobile
services.
Inability to provide
high-quality mobile
services.
Proactive communication with
stakeholders regarding the
importance of frequencies for
the development of mobile
services in Kosovo.
Level of risk
↓
Trend
Strategic objective
Payment of copyright
fees for the
transmission of
programmes via the
cable network
Additional fees paid to the
collective associations for
the broadcasting of
programmes via the cable
platform.
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
Changes to legislation
and the interpretation
thereof for public
contracts
Changes to and
interpretation of public
procurement legislation in
favour of the state-owned
operator, which is not in
line with EU guidelines.
Higher costs.
Lawsuits before the courts.
Demands for the reimbursement
of damages from public
authorities. Active
communication with all
stakeholders.
Level of risk
→
Trend
Strategic objective
Additional investments
due to regulatory
requirements
Additional investments due
to regulatory requirements
relating to the shift from an
aerial to an underground
infrastructure.
Higher costs.
Coordination with the Kosovo
Energy Distribution Services
(KEDS), municipalities and other
operators. A draft agreement for
the project has been prepared.
Notification of the regulatory
authority (ARKEP) about the
potential adverse impacts of the
activities of the KEDS on
telecommunication services.
Level of risk
→
Trend
Strategic objective
IT-operational risk
Outdated BSS architecture.
Non-standard development
and departure of numerous
IT experts due to changes
on the IT market.
Higher costs.
BSS architecture plan and
consolidation of processes.
Continuation of the BSS
transformation programme.
Level of risk
↑
Trend
Strategic objective
International call
termination
Reduction in revenues due
to the Western Balkan 6
Initiative (WB6) and the
potential impact of the
reduction of prices in
accordance with the EU-
Western Balkans Roaming
Declaration.
Lower revenues.
Harmonisation of contractual
relations with existing and new
partners.
Level of risk
↑
Trend
Strategic objective
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
83
Assessment of risks due to the impact of the war in Ukraine and the COVID-19 pandemic for all
Group companies
We carried out an additional quarterly risk assessment at all Group companies of the impact of the war
in Ukraine, which is separate from the general risk assessment, and only includes factors that are
connected with that war. To that end, Group companies are regularly monitoring that impact and have
measures in place.
Risk
What is the risk?
What is the effect?
How is the risk managed?
Impact of the war in
Ukraine
Disruptions in the supply
chain, and higher prices
of goods and services.
Higher energy prices.
Rising interest rates.
Malfunctioning of
services due to
increased risks in the
area of cyber security.
Rising labour costs due
to higher costs of
transportation in
connection with fuel
prices.
Lower revenues due to a
recession.
Lower revenues.
Higher costs.
Impact on cash
flow.
Search for alternative suppliers
and the implementation of a
strategy of several suppliers.
Increased inventories during the
year.
Adaptation of the electricity
purchase model and the
execution of multiple partial
purchases.
Increased proportion of debt
bearing a fixed interest rate.
Interest rate hedging using
derivatives.
Detailed, real-time monitoring of
security events, analysis and
assessment of information in
terms of potential threats in the
Cyber Security Operation
Centre. Performance of regular
vulnerability and response tests,
and rectification of identified
deficiencies. Continuous
readiness of the cyber security
response team.
Exchange of information
regarding security incidents with
certain organisations.
Adaptation of transport costs in
response to changing fuel
prices.
Special attention is dedicated to
specific user segments to
ensure the stability of the
portfolio.
Discontinuation of the
forwarding transit traffic with
operators from the Russian
Federation and Belarus.
Monitoring of telephone traffic to
prevent abuse, and bilateral
agreement on the reduction of
call termination prices in Ukraine
and in Telekom Slovenije’s
network. Establishment of
redundant connections to
increase cyber security.
We faced fewer challenges in 2022 due to the impact of COVID-19 than we did in 2020 and 2021.
COVID-19 brought the increased needs of users for reliable and secure telecommunication services.
Also up was the number of potential security events and attacks, which we successfully manage
through technologies, processes and qualified employees. We have in place a business continuity
management system, which means we are qualified to operate even in emergencies. We continuously
monitor COVID-19 infection trends at the national level and amongst employees, and adapt our work
method and implement other measures, as required.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
84
Risks in connection with sustainable operations for all Group companies
25
We assessed risks in connection with sustainable operations within the Group in 2022. Assessed risks
derive from external factors and the Company’s commitments, as sustainable goals are built into our
plans and strategic policies. As part of our sustainable operations, we raise awareness and inform
stakeholders about the Company’s activities in the areas of social responsibility and sustainable
action.
Risk
What is the risk?
What is the effect?
How is the risk managed?
Risks relating to
sustainable operations
Failure to meet the
expectations of
stakeholders.
Failure to meet additional
legal/regulatory
requirements, and the
requirements of banks.
Disruptions in the supply
chain.
Delays in the
digitalisation of related
business ecosystems.
Impact of climate
change.
Loss of users and
lower revenues.
Higher costs.
Impact on cash
flow.
Aspects of sustainability
integrated into operations.
Achievement of the goals of
sustainable operations.
Development of new solutions to
mitigate climate-related impacts
for users, the Company and
Group.
Partnerships with users and
suppliers.
User-friendly digitalisation.
Agility in the implementation of
measures aimed at constant
improvement. Concern for
employees. Social responsibility.
Inclusion of sustainability
aspects in the planning of
investments.
Strategy for the transition to
more environmentally friendly
energy sources.
Scenarios to assess the impact
of climate change on operations.
25
GRI 201-2
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
85
7.3. Financial results of the Telekom Slovenije Group
Analysis of the consolidated income statement
The Telekom Slovenije Group generated EUR 659.0 million in operating revenues in 2022, an
increase of 1% relative to the previous year. Sales revenue amounted to EUR 652.1 million. Revenues
from the mobile segment of the end-user market were up primarily due to the increased number of
subscribers and prepaid users in Kosovo as the result of intense activities to attract new subscribers.
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 due to
lower revenues from the sale of licences and IT merchandise, which resulted in lower costs of
subcontractors and costs of goods sold. Revenues from additional services include revenues from
financial services, energy, eHealth services and insurance. Growth was recorded in all of the
aforementioned segments, except energy. Revenues in that segment were lower in 2022 on account
of the discontinuation of the supply of electricity to end-customers. Revenues on the wholesale market
were up relative to the same period in 2021, primarily due to higher revenues from international voice
services in Kosovo and higher revenues from domestic wholesale services in Slovenia. Other
operating income and merchandise were up relative to 2021 due to higher revenues generated by
subsidiaries on the market.
The operating expenses of the Telekom Slovenije Group amounted to EUR 608.6 million, an
increase of 1% relative to 2021. Primarily energy costs were higher, while the costs of
telecommunication services were also up due to higher wholesale revenues.
Earnings before interest and taxes (EBIT) reached EUR 50.4 million in 2022, a decrease of 3% or
EUR 1.3 million relative to the previous year. EBIT adjusted for electricity costs would have been 7%
higher in 2022 than in 2021.
Earnings before interest, taxes, amortisation and depreciation (EBITDA) totalled EUR 216.5
million at the Telekom Slovenije Group level, a decrease of 2% relative to 2021. EBITDA adjusted for
electricity costs in 2022 would have been at the level recorded in 2021. The EBITDA margin (i.e.
EBITDA as a proportion of sales revenue) was 33.2% at the Group level (2021: 34.1%).
Finance income was up by 76% relative to 2021 to reach EUR 3.5 million, while finance costs were
down by 2% relative to 2021 to stand at EUR 8.4 million.
Following the calculation of income tax (including deferred tax assets), the Telekom Slovenije Group
generated a net profit of EUR 37.5 million in 2022, a decrease of EUR 0.4 million relative to 2021.
The Telekom Slovenije Group also uses the Alternative Performance Measures (APMs) defined by the
ESMA to present its operating results (for more information, see Enclosure 3 Alternative Performance
Measures).
Analysis of the consolidated balance sheet
Total assets as at 31 December 2022 amounted to EUR 1,275.3 million, an increase of 2.0% or EUR
25.0 million relative to the situation as at 31 December 2021.
Non-current assets totalled EUR 1,031.5 million, an decrease of 0.2% or EUR 1.7 million relative to
the end of 2021. The proportion of the Group’s total assets accounted for by non-current assets fell to
80.9% (2021: 82.6%). Intangible assets, in particular, were lower (annual amortisation exceeded
investments in intangible assets).
Current assets amounted to EUR 243.8 million and were up by 12.3% or EUR 26.7 million. Cash and
cash equivalents were up by EUR 21.4 million.
Equity totalled EUR 611.7 million, an increase of 1.9% or EUR 11.2 million relative to the end of 2021,
and represented 48.0% of total assets (2021: 48.0%).
Non-current liabilities in the amount of EUR 350.2 million represented 27.5% of total assets. They
were down by EUR 74.4 million compared to the end of 2021, primarily due to an increase in the
current portion of non-current loans that fall due for payment in the next year relative to the situation
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
86
as at 31 December 2021. Non-current liabilities as at 31 December 2022 were thus down by 17.5%
relative to the end of 2021.
Current liabilities amounted to EUR 313.5 million, an increase of EUR 88.2 million relative to the end
of 2021. The proportion of total assets accounted for by current liabilities rose to 24.6% (2021: 18.0%),
primarily due to the transfer of the current portion of non-current loans to current financial liabilities.
Analysis of the consolidated statement of cash flows
The Group recorded investments in fixed assets in the amount of EUR 153.2 million and outflows for
loans granted and deposits placed in the amount of EUR 0.1 million in outflows for investing
activities.
The Group’s inflows from investing activities in 2022 primarily comprised proceeds from the sale of
fixed assets in the amount of EUR 1.7 million (with the sale of the Pliberk fibre optic network
accounting for EUR 1.1 million of that amount), inflows from the sale IEDC financial assets in the
amount of EUR 0.4 million and inflows from dividends in the amount of EUR 0.2 million.
The Group’s outflows from financing activities included repayments of the current portion of non-
current loans in the amount of EUR 40.2 million, interest paid on loans raised and assets under lease
in the total amount of EUR 7.2 million, and outflows for the purchase of treasury shares in the amount
of EUR 0.4 million. Based on the dividends approved by the General Meeting of Shareholders, the
total amount of EUR 29.2 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 9.2 million were included in outflows from financing activities.
The Group recorded two non-current loans in the total amount of EUR 60 million in inflows from
financing activities.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
87
Key financial indicators for the Telekom Slovenije Group and Telekom Slovenije, in accordance with
the accounting report
26
Telekom Slovenije Group
Telekom Slovenije
in EUR thousand and %
I–XII 2022 /
31 December
2022
I–XII 2021 /
31
December
2021*
Index
22/21
I–XII 2022 /
31 December
2022
I–XII 2021 /
31 December
2021
Index
22/21
Sales revenue
652,121
648,247
101
575,886
577,630
100
Other operating income
6,832
5,303
129
3,225
3,421
94
Total operating revenues
658,953
653,550
101
579,111
581,051
100
EBITDA
216,452
220,752
98
167,365
175,773
95
EBITDA margin = EBITDA /
sales revenue
33.2%
34.1%
97
29.1%
30.4%
96
EBIT
50,362
51,696
97
28,484
33,598
85
Return on sales = EBIT / sales
revenue
7.7%
8.0%
97
4.9%
5.8%
85
Net profit for the financial year
37,506
37,888
99
20,793
34,371
60
Assets
1,275,338
1,250,339
102
1,223,290
1,237,941
99
Equity
611,677
600,431
102
606,233
612,241
99
Return on equity (ROE)
6.2%
6.4%
97
3.4%
5.6%
60
Equity ratio
48.0%
48.0%
100
49.6%
49.5%
100
Net financial debt
401,168
399,009
101
411,749
408,293
101
NFD/EBITDA
1.9
1.8
103
2.5
2.3
106
Investment in property, plant and
equipment (CAPEX)
167,791
208,173
81
114,086
188,704
60
EBITDA – CAPEX
48,661
12,579
387
53,279
-12.931
612
Ratio of (EBITDA – CAPEX) to
EBITDA
(cash margin)
22.5%
5.7%
395
31.8%
-7.4%
633
Number of employees as at the
last day of the period
3,262
3,284
99
2,103
2,119
99
Investments as a proportion of
operating revenues
25.5%
31.9%
80
19.7%
32.5%
61
Definitions can be found in Enclosure 10.3 Alternative Performance Measures.
More information can be found in the accounting report on page 174.
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.
Detailed information can be found in the accounting report in point 6 Segment reporting.
26
GRI 201-1
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
88
7.4. Financial performance of the Telekom Slovenije Group
Through the pursuit of an effective financial policy within the Telekom Slovenije Group, we achieve the
financial stability of the entire Group. This is done through successful operations, the active planning
and management of cash flows, by ensuring the appropriate maturities and diversification of financial
debt, through financing within the Group and the optimisation of working capital and cash and cash
equivalents, and by managing 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 69 million at the end of 2022, 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 1.85 at
the end of 2022, while the Group’s financial liabilities totalled EUR 439.4 million. A large portion of
financial liabilities is accounted for by two non-current syndicated loans in the total amount of EUR
269.7 million and a non-current loan from the European Investment Bank in the amount of EUR 100
million. The remaining liabilities are accounted for by a finance lease.
Net financial debt (NFD) of the Telekom Slovenije Group
The Group regularly settles its liabilities to creditors. A total of EUR 40.2 million in non-current loans
was repaid in 2022.
Repayment plan for existing non-current loans
1.5
1.6
1.7
1.8
1.9
2.0
0
50
100
150
200
250
300
350
400
450
31.12.2020 31.12.2021 31.12.2022
NFD / EBITDA
in million EUR
Financial liabilities
Net financial debt (NFD)
Neto finančni dolg / Dobiček iz poslovanja pred obrestmi, davki in amortizacijo
0
50
100
150
200
250
300
350
400
2021 2022 2023 2024 2025 2026
in million EUR
Principal repayment Oustanding debt Drawing of loan
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
89
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.
Three tranches of a non-current loan from the European Investment Bank in the total amount of EUR
60 million were drawn down in 2022. Nevertheless, the structure of financial liabilities shifted towards
current liabilities at the end of 2022, as the entire tranche of a non-current syndicated loan in the
amount of EUR 100 million falls due for payment at the end of 2023. The Group will refinance the latter
with new long-term sources.
Maturity breakdown of financial liabilities
According to the situation as at 31 December 2022, raised loans bear fixed and variable interest rates,
with the latter 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 125 basis points at the end of 2022. Fixed or
hedged interest rates account for 28.1% of interest-bearing financial liabilities at the Group level
27
.
Financial risk management
A detailed description of financial risk management is found in section 7.2 Risk management and in
the accounting report in point 45 Financial instruments and 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 2022.
27
Loan principle is taken into account.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
31.12.2020 31.12.2021 31.12.2022
Non-current financial liabilities Current financial liabilities
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
90
7.5. Investments in fixed assets
Investments in fixed assets
28
The Telekom Slovenije Group earmarked EUR 167.8 million for investments in fixed assets in 2022, a
decrease of 19% or EUR 40.4 million relative to 2021. Of the aforementioned amount, 68% of all
investments or EUR 114.1 million was earmarked for investments by Telekom Slovenije, a decrease of
40% relative to the previous year. The remainder was earmarked for investments in development by
subsidiaries.
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 2022 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
business information support, and for the development of new services and the continued optimisation
of operations. For more information, see section 8.1.1 Development of the network, technologies and
services.
Investments by company
in EUR thousand
2022
2021
Index
22/21
Telekom Slovenije
114,086
188,704
60
Other companies in Slovenia
23,235
5,734
405
IPKO – Kosovo
38,924
13,343
292
Other companies abroad
1,374
1,900
72
Exclusions and adjustments
-9,828
-1,508
-
Telekom Slovenije Group
167,791
208,173
81
Structure of investments by purpose
28
GRI 3-3, 203-1, IO1
Frequency fees 0.0%
Network 44.3%
CPE - user equipment 9.1%
Solutions for residential and
business users 21.4%
IT, internal ICT infrastructure, R&R
projects 11.9%
Leases under IFRS 16 8.8%
Other 4.6%
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
91
7.6. Marketing and sales
7.6.1. Market and market shares in key service segments
29
Key indicators of the Slovenian telecommunications market
Source: Analysys Mason, Central and Eastern Europe telecoms market: trends and forecasts 2021–2026 (forecast for 2022),
January 2022; AKOS (third quarter of 2022), SURS (third quarter of 2022).
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.
Market shares of leading operators in key segments, in %
Source: AKOS, fourth quarter of 2022.
29
GRI 2-6, SDG 8.10
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
92
Market shares in key service segments
The Slovenian telecommunications market (including systems integration and cloud services) is
developed and saturated. Telekom Slovenije maintains 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, third quarter of 2022.
Telekom Slovenije’s market shares and connections in key segments
Source: Report on the development of the electronic communications market for the fourth quarter of 2022, AKOS and internal
Telekom Slovenije figures.
Fixed broadband access
The number of broadband connections in Slovenia is constantly rising; there were 679,851 such
connections at the end of the third quarter of 2022 (666,587 in the same period in 2021), with
residential broadband connections accounting for 86.2% of that amount. The household fixed
broadband penetration rate reached 84.0% in the fourth quarter of 2022 (83.2% in the same period in
2021).
30
Telekom Slovenije holds a 27.3% 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 also continue. At the end of the third quarter of 2022, the number of active fibre optic
connections in Slovenia was already 349,710, which represents 51.4% of all connections. The number
of fibre optic connections rose by 10.1% in one year.
30
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.
http://pxweb.stat.si/pxweb/Database/Ekonomsko/23_29_informacijska_druzba/20_elektronske_stor_postne/02_29633_elektronske_storitve/02_29633_elektronske_storitve.asp
2,475,697
2,504,332
2,538,579
2,590,853
2,661,731
707,356
693,294
687,644
684,600
668,973
608,193
622,913
643,294
666,587
679,851
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2018 2019 2020 2021 2022
Mobile telephony Fix telephony BB connections
Fixed broadband access IP TV VOIP
Market share 27.3% 40.7% 32.0% 35.5%
Annual change
(p.p.)
-0.5% -1.7% -0.1% -1.2%
Connections 196.610 164.684 179.326 949.779
Annual change -1.4% -1.2% -1.3% -0.6%
Mobile telephony
27%
73%
41%
59%
35%
65%
32%
68%
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
93
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 2022, AKOS.
Pay TV market
IPTV accounts for the majority (59.1%) of all TV connections in Slovenia, and is followed by cable TV
(35.9%), where the number of connections has stagnated (fourth quarter of 2022). According to figures
from the AKOS, 79.8% of households have pay TV (79.2% at the end of 2021).
Market shares of TV connections by technology
Source: Report on the development of the electronic communications market for the fourth quarter of 2022, AKOS.
Mobile telephony
The household penetration rate of active mobile telephony users rose to 126.7% in the fourth quarter
of 2022, while the number of active users was up by 2.7% relative to the third quarter of 2021 or by
more than 70,800 users relative to the same period the previous year. We hold the leading market
share in this segment (35.5%, fourth quarter of 2022).
7.7%
12.1%
0.4%
25.7%
52.4%
1.7%
ADSL
VDSL
DOCSIS 2.0
DOCSIS 3.0
FTTH
Other technologies
35.9%
59.1%
4.6%
0.4%
Cable television
IPTV
Satellite television
MMDS
Telekom Slovenije holds the highest
share of the IPTV market (40.7%,
fourth quarter of 2022).
Telekom Slovenije had close to
108,000 users on FTTH connections
at the end of the third quarter of 2022
(same period in 2021: 100,900).
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
94
Changes in shares on the mobile telephony market in Slovenia
Source: Report on the development of the electronic communications market for the fourth quarter of 2022, AKOS.
The volume of data traffic in mobile networks is continuously rising. At 30.4%, Telekom Slovenije holds
the highest share of the mobile broadband internet access market (fourth quarter of 2022). The
household mobile broadband access penetration rate stood at 96.4% in Slovenia in the fourth quarter
of 2022 and will continue to rise.
IPKO and the competitive environment in Kosovo
IPKO is one of the strongest brands in Kosovo. IPKO is primarily recognised as a brand
for young users in the mobile telephony and fixed services segments, and a brand for
technology enthusiasts. It has well-known ads, the fastest mobile internet, and the fastest
and most stable internet in the fixed segment. It is also known for the best sales network and customer
support.
Three operators provide services in the mobile segment: Vala, IPKO and MTS. With a 50.1% market
share in terms of users and a 53.2% market share in terms of revenues (ARKEP, 4Q 2022), IPKO is
the leading mobile operator. The company’s market share is growing from year to year.
In 2022, IPKO was the first operator in Kosovo to successfully test 5G mobile technology and
achieved a speed of 1.2 Gbit/s. The mobile market remains largely prepaid, with the widespread use
of OTT applications. IPKO remains the only operator that has fully implemented the +383 country
code, and records a continuous increase in the number of users and revenues. It exceeded one
million active mobile users for the first time during the summer.
In terms of market shares of mobile telephony users with regard to mobile
technology, the share of 5G users is growing (13.0% in the fourth quarter of
2022). The highest market share is still accounted for 4G users (76.7% in the
fourth quarter of 2022), but that share is falling.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
95
Market shares of operators in the mobile telephony segment in Kosovo
Source: Report for the fourth quarter of 2022, ARKEP.
Market conditions have been demanding in the fixed segment in recent years, as three main
operators compete on the market: IPKO, Kujtesa and Artmotion, followed by PTK and Telkos. These
operators focus on low-priced packages, higher internet speeds, and the enhancement and
improvement of digital content. IPKO has succeeded in maintaining a stable base of users, primarily
through a range of long-term subscriber agreements with benefits, and has thus continued the positive
trend of growth in the number of users. The majority of packages on the market continue to offer two
services (internet + DTV).
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 2022.
Market shares of operators in the internet segment in Kosovo
Source: Report for the fourth quarter of 2022, ARKEP.
26%
16%
29%
6%
22%
IPKO KUJTESA Artmotion Telecom Kosovo Others
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
96
7.6.2. Sales of the Telekom Slovenije Group
31
At the end of 2022, the Telekom Slovenije Group had around one percent fewer broadband
connections than the previous year. The total number of connections was up by 1% in Slovenia and
down by 6% in Kosovo.
The total number of mobile telephony users was up by 2%. The number of retail and wholesale
mobile telephony users was up by 1% in Slovenia and by 4% in Kosovo.
The use of traditional fixed voice telephony has been falling for a number of years. The number of
such connections was down by 4% in Slovenia in 2022. Together with VoIP services, the number of
voice telephony connections within the Telekom Slovenije Group was down by 3% relative to the
previous year.
TELEKOM SLOVENIJE GROUP CONNECTIONS AND SERVICES BY TYPE AND MARKET
Broadband connections
Number of connections as at
31 December
2022
31 December
2021
Index
22/21
Slovenia – retail
196,610
199,386
99
Slovenia – wholesale
176,250
169,937
104
Slovenia total
372,860
369,323
101
Kosovo – retail
101,285
108,298
94
Telekom Slovenije Group
474,145
477,621
99
Mobile telephony
Number of connections as at
31 December
2022
31 December
2021
Index
22/21
Slovenia – retail
949,779
955,648
99
Slovenia – wholesale
159,722
145,971
109
Slovenia total
1,109,501
1,101,619
101
Kosovo – retail
892,665
856,611
104
Telekom Slovenije Group
2,002,166
1,958,230
102
Fixed telephony and VoIP services
Number of connections as at
31 December
2022
31 December
2021
Index
22/21
Slovenia – traditional fixed voice telephony
280,959
291,335
96
Slovenia – VoIP
179,326
181,760
99
Slovenia total
460,285
473,095
97
Kosovo – VoIP
34,362
35,089
98
Telekom Slovenije Group
494,647
508,184
97
31
GRI PA4, GRI 2-6, 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 2022
97
Sales revenue of the Telekom Slovenije Group
Breakdown of sales revenue by company
32
in EUR thousand
2022
2021
Index 22/21
Telekom Slovenije
579,111
581,051
100
Other companies in Slovenia
96,890
78,937
123
IPKO – Kosovo
80,966
71,740
113
Other companies abroad
3,970
4,029
99
Exclusions and adjustments
-101,984
-82,207
-
Telekom Slovenije Group
658,953
653,550
101
TELEKOM SLOVENIJE
Telekom Slovenije generated sales revenue of EUR 575.9 million in 2022, similar to the level recorded
in 2021. Higher relative to the previous year were revenues from IT services and merchandise,
wholesale revenues, and other revenues and revenues from other merchandise. Revenues from the
mobile segment of the end-user market and revenues from the fixed segment of the end-user market
were down due to the declining number of traditional connections.
Innovations in the portfolio
The development of Telekom Slovenije is based on the Company’s focus on users, who receive the
best user experience through simple and advanced solutions, and a range of products and services
tailored to their needs. We create personalised experiences and build long-term relationships through
a segment-based approach. We take various factors into account in the portfolio and communication,
including the socio-demographic profile, lifestyle, interesting topics, values, etc. We dedicated more
attention in 2022 to existing users, whom we addressed with relevant content.
We’ve taken a step closer to simplifying the use of services and connectivity with them through the
following:
• optimisation of the portfolio of services and products;
• the development and upgrading of key services, such as new content and an improved NEO
user interface;
• increased speeds in fixed packages;
• customised mobile packages; and
• new communication approaches.
Mobile services
In 2022, we offered residential and business users numerous special offers and benefits in Naj
packages.
In accordance with Regulation (EU) 2022/612 on roaming, we amended the prices of outgoing and
incoming regulated roaming calls, SMS and data roaming in countries covered by the EU tariff.
The Electronic Communications Act (ZEKom-2) entered into force in November 2022. In accordance
with legal requirements, we stopped marketing benefits with a 12-month subscription, and only charge
the cost of amending or terminating a subscriber package for subscriptions that have not yet expired
when switching to another operator or amending a subscriber package.
32
GRI 201-1
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
98
Segment of young users
The SUPR mobile package for young users is extremely popular, with the
number of subscribers rising continuously. Among other things, we made it
possible for young people to buy an electric scooter at an extremely low
price when entering into a subscriber agreement, and issued SUPR lottery
tickets at certain points of sale. We ensure that the user experience is
always fun and surprising, including with surprises at selected points of
sale.
Prepaid users
In the prepaid user segment, we prepared different specially priced offers for Mobi users throughout
the year, and offered IZI users two IZI SuperKUL packages at a reduced price.
At the end of May 2022, we launched the first Mobi package with a smart children’s watch and call
function. We presented the first ‘beginners’ mobile phone for children with their own call number and
recommended it for parents and guardians whose child is too young to use a smartphone.
Fixed services
For the subscribers of the NEO Svet C and NEO SuperNet packages, we upgraded the basic speed
on the fibre optic network for free and facilitated speeds of up to 1 Gbit/s. We also upgraded fixed
internet speeds to 2 Gbit/s on the fibre optic network with XGS-PON technology, which facilitates
speeds of up to 10 Gbit/s. We upgraded the older fixed packages of more 85,000 subscribers with the
latest NEO packages for free and replaced some older TV communicators.
We presented a number of innovations on the NEO TV platform in
2022. We added a great deal of new content, including the voice-
controlled search for content in the YouTube and Voyo
applications, upgraded NEO Games, improved the transparency of
Online Store services, etc. The voice-controlled search for content is
already very common and is one the most popular NEO
functionalities. Users gave a total of 93 million voice commands in
2022, the most frequent being the name of a TV programme that
they wished to watch, while they also search by the title of a series,
movie, sport, etc. NEO boasts a number of advantages, such as a
better picture resolution of up to 4K, more TV programmes and more than 10,000 content-on-demand
items that are available via numerous video-on-demand services, such as DKino, HBO Max, HBO on
Demand, Epic Drama, Pickbox, Voyo, Chess with Laura Unuk, Da Vinci Kids, Minimax+, Curiosity
Stream, Culture, Kitchen TV, Dajmedol and Dajmedol+.
Together with TSmedia, we introduced another innovation in 2022 in the form of targeted TV
advertising, which facilitates the back-viewing of video advertisements.
Information and cyber security
The number of different online scams is rising in
Slovenia, too. Many people have already
received an email that appears to be sent by the
post office or a bank requesting that they enter
their personal data, bank account number or
payment card number. We can do a lot to
protect ourselves by using security solutions,
such as the advanced Safe Web service. The
aforementioned solution protects devices in the
mobile and fixed network. In this way, we
protected more than 30% of all user services in
2022. The users of fixed services are particularly hard hit, as without the Safe Web solution, more than
40% of them, on average, could suffer the consequences of various cyber threats.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
99
Insurance
The insurance of mobile equipment and the innovative Brezskrbni travel insurance, which is unique
on the Slovenian market, are increasingly well-known and sought-after by our users. We have also
consolidated the insurance of mobile devices under the Brezskrbni brand.
VALÚ Smart Wallet
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 the payment of goods and services. VALÚ was used by more
than 120,000 users in 2022, which is a 20% increase relative to
2021. Users executed more than 2.5 million transactions.
We expanded the network of points of sale where the VALÚ
Smart Wallet can be used to make payments by 17%, with such
payments now possible at more than 3,500 points of sale. We
expanded that network primarily in the postal and distribution
activity, and in the sale of products for children and at parking
garages.
Online Store
We upgraded the Online Store with the most advanced version of
the web platform, upgraded back-office systems and introduced
new functionalities. We introduced three-level categorisation to
facilitate the search for products, and implemented the fully
digitalised redemption of digitalised vouchers that could be used to
purchase 1,157 different products. We upgraded the portfolio to
more 5,300 products spanning more than 130 categories, with more
than 3,000 of those products available in the Loyalty Programme
with the option of instalment payments.
Home eCare
Telekom Slovenije and its consortium partner, the Slovenian
Federation of Pensioner’s Associations (ZDUS), were selected
via public tender to implement the Ministry of
Health’s ‘Home eCare’ project. eCare is a
service that provides the elderly, disabled
persons and patients with chronic diseases more
independent and safer living in their home
environment, as it ensures a 24-hour-a-day link
to an assistance centre and medical staff, as well as the
organisation of assistance when users need it. The use of eCare
in the scope of the aforementioned project is financed in full by
the EU from the European Social Fund, so that the service will be available free-of-charge for up to
5,000 beneficiaries until 30 September 2023. Interest was extraordinary, and we filled the available
quota in just a few months.
We have been providing the eCare service since 2017, meaning it is also available in the scope of the
regular portfolio of products and services. To ensure that the service is available to as many interested
people as possible, Telekom Slovenije and the ZDUS invited municipalities to participate in the Safe
and Connected at Home project back in December 2017. Municipalities that join the project subsidise
the eCare service for their citizens, while the number of municipalities was up in 2022.
In the scope of the telemedicine solution, we offer Slovenian hospitals and health centres the use of
telemedicine services for the treatment of patients. That solution facilitates the simple remote
monitoring of patients’ health at home, without hospitalisation or visiting a clinic. More than 2,000
patients across Slovenia have been treated using telemedicine. We also facilitated the remote
treatment of pregnant women with diabetes in 2022.
Points of sale and sales network
Telekom Slovenije has a broad network of points of sale: 17 Telekom centres and 52 authorised
agents with 85 points of sale, and nine authorised agents who make sales exclusively in the field. We
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
100
opened a new point of sale at Citypark in Ljubljana in September. We strengthened field sales with
authorised agents, while we are available to customers at all times via video call at Telekom centres
via the Viber and WhatsApp platforms, and via Microsoft Teams.
A sales team of 21 advisers at Telekom centres covers the needs of small and medium-sized
enterprises for business services.
A field team comprising 16 advisers sells services to end-users across Slovenia. Those persons sell
Telekom Slovenije services in different regions and also serve as ambassadors of our services in the
field.
We expanded the ‘Sales Excellence’ programme to external sales channels. Five sales trainers
organised more than 2,200 sales trainings covering more than 3,300 hours. We also certified agents
for external sales channels.
We organised a one-day event for the network of authorised agents at which we presented results and
plans for the future to 150 participants.
Solutions for business users
We provide private- and public-sector business
users comprehensive ICT solutions, for which
we obtain the necessary certificates and partner
statuses, and strengthen employee
competences. Presented below are several of
the most important partner statuses and
certificates:
• 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 Service Provider Licence
Agreements (SPLAs) 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.
• Premier partner status in the area of system integration (Premier Integrator) for solutions
based on Cisco and Gold Provider technologies for Cisco Powered Services (Cloud Managed
Security; IaaS MPLS VPN).
• HP Amplify Power Services Partner Status – Managed Print Services and Print Lifecycle
Services 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 the statuses of Silver Hybrid Cloud Specialist and Silver
Aruba Specialist.
• Platinum Solution Provider status for Dell Technologies, which combines Dell, EMC, VMware
and AirWatch, and security portfolio that primarily comprises RSA and CarbonBlack.
• IBM ESA partner status, which facilitates the inclusion of solutions from the IBM ESA programme
for the area of security (ESA Security) in the management of Telekom Slovenije’s security service.
• Advanced partner for the sale of the technical solutions from Fortinet with the acquisition of the
Managed Security Services Partner (MSSP) status.
• Veem Gold Cloud & Service Provider and Gold Value-Added Reseller partner status for the
provision of secure data storage services, the development of business continuity and disaster
recovery services, and the resale or leasing licensed software.
We are the leading provider of business telephony in the Microsoft Teams environment. Our
comprehensive portfolio also includes our own services, such as management, maintenance,
migration and various consultancy services.
In addition to the development of new services, we also upgraded existing services in 2022. We thus
offered the most advanced business telephony and large business internet services to the subscribers
of business packages. The emphasis is on reliability and security, in combination with the Safe
Business Web and Safe Large Business Internet services.
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Demand from major business users for fibre optic and DWDM connections has grown. We upgraded
the speed of existing connections on virtual private networks (VPN).
We continued with the development of IoT solutions in 2022 and, together with partners, presented
important developments in the areas of smart industry, cities and agriculture, and remote meter
reading, which is described in more detail in section 8.1.1 Development of the network, technologies
and services.
Safe in the business world
Cyber security is deemed one of the most important operational risks for companies and
organisations. Those risks were exasperated in 2022 by the war in Ukraine. The Cyber Security
Operation Centre (CSOC) monitors, analyses and responds to security events for Telekom Slovenije,
and other organisations and companies according to the 24/7 regime. We provide CSOC services to
large international companies and the managers of the critical infrastructure, as well as essential
services to small and medium-sized enterprises. CSOC services are already used by more than
120 business users.
An integral part of the CSOC is the Telekom Slovenije Computer Emergency Response Team (TSLO-
CERT), which is an accredited member of the community of Trusted Introducer response centres.
Telekom Slovenije’s cyber security solutions and services
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Inter-operator segment
Domestic wholesale services
We recorded 3.4% growth in sales of broadband connections on the domestic wholesale market in
2022, with an increase in the number of connections on our fibre access network and a decrease in
the number of connections on the copper network. We also recorded growth in the mobile operator
access segment for national roaming and in virtual mobile network services.
Revenues were up by 19% relative to 2021, as the result of sales to operators who roam in our fibre
optic access network and the leasing of our mobile infrastructure. Revenues (and thus costs) from
inter-network traffic were also up.
Telekom Slovenije’s network is used by all Slovenian operators who roam on our fixed broadband and
mobile network. Our partners in the area of fixed access via fibre optic and copper connections are A1
Slovenija, T-2, Telemach, Mega M and Softnet, while we facilitate roaming on our mobile network by
T-2, Telemach, Mega M and Softnet. In addition to providing them services, we make it possible for
operators to use Telekom Slovenije’s passive telecommunications infrastructure, which includes
antenna towers, and the leasing of optical fibres, cable ducts and co-locations.
International wholesale services
Revenues on the international wholesale market in 2022 were at the level recorded in 2021. We
achieved growth in data services, primarily due to the monetisation of the fibre optic network on the
Sofia–Milan and Sofia–Vienna connections.
Travel restrictions (due to COVID-19) had a negative impact on roaming and voices services at the
beginning of the year, while revenue growth was recorded during the summer. We recorded a drop in
voice traffic, but maintained our strong market position despite that drop and falling prices. We will
compensate for the loss of revenues and margin on voice services in the future by entering the
international application messaging segment.
The regional fibre optic network is based on Telekom Slovenije’s backbone network and represents
a key strategic advantage on the regional data services market. The network provides an alternative
link between the Balkans and other major hubs in Western Europe. We sell free capacities on the
regional network to our international partners and large end-users on the wholesale and retail markets.
We modernised and upgraded the network to Frankfurt in 2022.
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Telekom Slovenije’s regional fibre optic network
AVTENTA
Avtenta is the leading partner for managing and implementing SAP solutions and paperless operations
on the Slovenian market. Through its services and solutions, the company helps companies progress
faster on the path to digitalisation. 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 10.5 million in 2022, an increase of 22% relative to 2021.
GVO
GVO provides comprehensive solutions in the design, construction, management and maintenance of
telecommunication networks. To that end, it carries out related activities, and participates in the
design, construction and maintenance of major infrastructure projects. The company also participates
in public-private partnership projects, and is building open broadband networks that are co-financed by
the European Union and Slovenian government.
The company generated sales revenue of EUR 56.8 million in 2022, an increase of 7% relative to
2021. In 2022, the company pursued a strategy of diversifying revenue sources and thus recorded
25% growth in revenues on the market (i.e. from unaffiliated companies). In addition, GVO achieved
growth in revenues from the management and maintenance of open broadband networks, and in
revenues from services for subsidiaries. The company generated lower revenues from investments
and maintenance for the parent company.
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SOLINE
Soline manages the Sečovlje Salina Nature Park (SSNP) and ensures the preservation of natural and
cultural heritage within the park and for the traditional production of salt. It also offers salt-based
cosmetic and food products, and manages the Lepa Vida Thalasso Spa.
Soline generated sales revenue of EUR 4.3 million in 2022, similar to the level generated in 2021. The
company produced 2,394 tonnes of salt in 2022, an increase of 43% relative to 2021. The majority of
Soline’s sales are accounted for by traditional salt, Piran salt with a protected designation of origin and
fleur de sel. The company also exports its products, primarily to Germany, Austria, Italy and Japan.
A total of 7,574 guests visited the Lepa Vida Thalasso Spa during the 2022 season, an increase of 5%
relative to the previous year and the most since the spa welcomed its first guests in 2013. Sečovlje
Salina Nature Park recorded 50,732 visitors, which is similar to the pre-pandemic period. The majority
of people visited the Lera area, where traditional salt production is carried out. The Fontanigge area
recorded 5,269 visitors. For more information, see section 8.4 Soline.
TSINPO
TSinpo is a service and disabled workers company that produces and markets cardboard sleeves and
packaging under its own brand. It also provides business support services to other companies. The
company’s primary purpose is to provide a stimulating work environment for the long-term employment
of disabled persons and persons from other vulnerable groups. In 2022, TSinpo made a major
investment in a new, automated line of machines for the production and cutting of cardboard sleeves,
which will be crucial for the company’s growth on the market. The company generated sales revenues
of EUR 1.5 million in 2022, similar to the level generated the previous year.
TSMEDIA
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TSmedia is the leading provider of digital media content and advanced advertising solutions, through
the Siol.net online media, the Bizi business assistant, the only official telephone directory in Slovenia
(itis.si), the najdi.si website and outdoor digital screens, and as Telekom Slovenije’s partner through
targeted TV advertising on the NEO platform.
In 2022, TSmedia upgraded several functionalities in the Siol.net online media, modernised display
equipment and expanded the network of digital screens that it manages (Maribor, Ptuj, Kranj, Nova
Gorica and Murska Sobota). It improved information security on the Bizi business assistant website
and upgraded the stock market announcement sub-page. The company published the TIS 2023
telephone directory in print and DVD form, and upgraded the najdi.si website with additional zones for
programmatic advertising.
TSmedia generated sales revenue of EUR 6.1 million in 2022, which is similar to the level generated
the previous year. Revenues on the market were up by 6%, primarily as the result of the expansion of
the network of digital screens, and the replacement of display equipment in the City of Ljubljana with
higher-capacity equipment.
IPKO (Kosovo)
IPKO in Kosovo provides users a comprehensive range of convergent mobile communication, fixed
telephony, internet and cable TV services.
The company generated sales revenue of EUR 79 million in 2022, an increase of 11% relative to
2021. That increase was the result of intensive marketing activities, cross-selling campaigns and the
upgrading of the sales function. Also having a positive impact on sales was an increase in the
wholesale segment due to the successful implementation of the final phase of the ‘roam like at home’
regulation for countries in the Western Balkans.
IPKO remains the strongest brand amongst telecommunication companies in Kosovo.
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7.6.3. Brands and market communications
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Key brands of Telekom Slovenije Group companies
The Telekom Slovenije Group had 254 registered brands at the end of December 2022. The full list of
registered brands is accessible at http://www2.uil-sipo.si/.
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Through market communication activities, we continued to
refresh the umbrella brand in 2022, while we also strengthened
our reputation and awareness that we are the operator with the
best services on the best network.
In 2022, we executed more than 110 advertising campaigns
and projects in three segments (residential users, SMEs and
large enterprises), while continuously adapting our offer and
messages.
We designed the Best Network For Every Moment platform
for communication with residential users. Through advertising
campaigns, we communicated to users that modern, secure
and reliable services allow them to capture the moment, truly
enjoy it, and share it with friends, family and acquaintances. We
are aware of our social responsibility. We therefore
communicated to users that they sometimes need to put down their mobile phones and step out of the
digital world in order to truly experience moments.
We communicated with SMEs with the slogan, We
Create Simple Solutions. You Create Business. We
provided communication support to IT services,
through which we provide immediate support in the
event of computer problems.
Communication for the large enterprise segment is
based on the 360˚ platform through which we
emphasise the comprehensiveness of services and
solutions. The emphasis in communications was on the
importance of cyber security and comprehensive ICT
services.
We continuously encourage users to collect old
mobile phones and other devices. Thus, in the
scope of the Creating a Green Future campaign,
we planted 1,000 honey-bearing trees in exchange
for old phones in 2022.
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Events, promotions and communications with users
We organised more than 80 events and webinars for users, and in excess of 70 promotions. Two
events in particular are worthy of note. After three years, we seized the opportunity and organised a
multi-day event in the Karst region, where we hosted representatives of all major foreign operators.
In Vransko, we presented the importance of safety and Telekom Slovenije’s security solutions to
more than 80 users, and offered them a test drive on the safe driving course at the AMZS Safe Driving
Centre.
We prepared more than 100 different print materials. We introduced the Viber channel in 2022 as a
form of direct communication. We addressed users through more than 560 SMS and direct mail
campaigns. We visited sporting events and trade fairs, as well as larger cities and smaller towns with
the NEO house.
We carried out the ‘Lightning-quick visit’ communication campaign again in 2022, 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. For the subscribes of fixed services, we also provide the text-
message alarm service, which provides real-time information regarding lightning strikes close to their
connection.
Working closely together, Telekom Slovenije, Soline and TSinpo prepared sustainable gifts for our
business partners at the end of the year. We upgraded traditionally well-received salt products in a
sustainable manner with cardboard packaging from TSinpo, while our joint New Year’s collection
carried the overall message that the future is always in our hands.
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8. SUSTAINABLE ASPECTS OF THE TELEKOM SLOVENIJE
GROUP’S OPERATIONS
The principles of sustainable operations are an integral element of the business processes of Telekom
Slovenije and Telekom Slovenije Group companies, while the creation of a sustainable future is a key
strategic policy. Our strategic objectives, and material sustainability aspects and topics are closely
linked, and reflect the Telekom Slovenije Group’s desire to create a sustainable future that combines
the advantages of the digital and green transition.
Through our infrastructure and services and the most advanced solutions, we are contributing to
Slovenia’s development into a digital society. Through them, we are linking all stakeholders. We
responsibly manage economic-governance, social and environmental impacts, and are integrating the
principles of sustainability into our operations, products, services and content. We act in accordance
with the highest ethical principles to that end.
As a signatory of the charter of the European Telecommunications Network Operators’ Association
(ETNO), we are committed to protecting the environment and efficient energy consumption, social and
corporate responsibility, and the responsible management of employees and vulnerable user groups.
Our sustainable activities also take into account the Sustainable Development Goals of the United
Nations.
The responsible management of the Telekom Slovenije Group’s impacts and achievements in the area
of sustainable operations are presented throughout the annual report, which is integrated and
compiled in accordance with the GRI standards, while the majority of disclosures are presented in
section 8 Sustainable aspects of the Telekom Slovenije Group’s operations.
8.1. Development and responsible governance of the Telekom Slovenije
Group
8.1.1. Development of the network, technologies and services
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Telekom Slovenije has had the leading network in Slovenia for more than 30 years. We take a
responsible and sustainable approach to the management of the largest and most advanced fixed and
mobile network, in which we provide subscribers the proven best user experience via continuous and
systematic development, while ensuring reliable, stable and secure connectivity at the highest speeds
through development and research projects.
RESEARCH PROJECTS
Through our cooperation in European projects, we develop new services and technologies, and test
concepts for the development of new solutions over the next three to five years. We are thus involved
in the international development environment, and work with domestic and foreign partners to open
new business opportunities.
The majority of European research projects are being implemented under the auspices of the Horizon
Europe programme, which is being co-financed by the EUR in the period 2021 to 2027. To that end,
we focus on the development of new technologies, in particular the Internet of Things, cyber security,
and support for critical communications and eCare. We received state aid in 2022 in the amount of
EUR 20 thousand for research and development work in the fields of health and medicine, and smart
cities and communities (co-financing under the public call, Protecting Innovation Potential, which
represents de minimis aid).
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Major research and development projects in which we participate:
• 5G-LOGINNOV,
• 5G-IANA,
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• PRECINCT,
• SUNRISE, and
• ATLANTIS.
Together with international partners, we prepared and registered the following new projects:
EdgeEVO, MEDUSA, SALUS and InterSOC.
The 5G-LOGINNOV (https://5g-loginnov.eu/) project focuses on the 5G network, and the development
of innovative logistics solutions in the scope of Industry 4.0. Solutions are being tested at ports in
Koper, Hamburg and Piraeus. The project consortium comprises 15 partners from eight European
countries, including three partners from Slovenia. It will be completed in September 2023.
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 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.
In the scope of the project, we defined in detail examples of use and 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.
The 5G-IANA project (https://www.5g-iana.eu/) established an open experimental 5G 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.
The project, which will be completed in May 2024, includes 16 partners from eight European countries.
In the scope of the project, Telekom Slovenije will provide the appropriate 5G infrastructure for
evaluating the 5G test platform. We will also provide a cloud service infrastructure and the necessary
virtualised environment, in which partners will establish virtual network functions (VNFs).
The PRECINCT project (https://www.precinct.info/) connects critical infrastructure managers to protect
against cyber threats and natural disasters in a specific geographical area.
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In the scope of the project, we are developing tools to identify security vulnerabilities and various
measures for the more effective protection of the critical infrastructure through simulations and the use
of artificial intelligence technologies. These concepts will then be used in other EU regions for the
upgrading of existing security mechanisms, which will 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 are establishing a test environment to ensure the security of the critical infrastructure at
the Ljubljana train station and the surrounding area.
October 2022 marked the launch of the European SUNRISE project
(https://cordis.europa.eu/project/id/101073821), which will run for three years. Telekom Slovenije is
the only telecommunications operator involved in the project. The aim of the project is to develop
solutions that will facilitate the cooperation of different links in the critical infrastructure, and will ensure
improved readiness and equipment for the joint management of the risks brought about by pandemics.
The project addresses various aspects, such as cyber security and business continuity, the recovery
and development of socially relevant public structures, with an emphasis on sustainability and green
recovery in accordance with the ‘build back better’ principle. To that end, partners will identify key
services and develop an efficient operational model for use when a pandemic is declared.
The project includes 41 European partners, 10 from Slovenia. Telekom Slovenije provides a modern
information infrastructure and connectivity via the 5G network for secure and reliable communication.
Our experts will also contribute their expertise to other joint activities.
The aim of the ATLANTIS project (https://www.atlantis-horizon.eu/) is to improve the critical
infrastructure’s resilience to cyber and physical attacks. Through the project, we are upgrading
knowledge of systemic risks and vulnerabilities, while we will develop new flexible and adaptable
security measures and tools. The aim of the project is to improve cooperation between critical
infrastructure managers and other stakeholders. The project includes 39 European partners.
DEVELOPMENT OF THE NETWORK AND SOLUTIONS
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Fixed network
Our fixed access network ensures 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 2022, while development activities focused on the Internet of Things, 5G technology and the
provision of services through the mobile network.
We overhauled the aggregate element of the MPLS backbone network and completed the upgrade of
the network core. We established a single, modern network of data centres, and have already
completed the partial modernisation of the internal business network infrastructure. This facilitates the
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high availability of network services and cyber security through the introduction of the ‘zero trust’
concept. In all of our network solutions, we ensure the energy efficiency of devices and the reduction
of operating costs.
With regard to the sever infrastructure and infrastructure for mass data storage, we completed the
partial upgrading of the hardware and software platform of the virtualised environment and the second
phase of the upgrading of the central disk array. We further optimised connections with international
networks and increased capacities, in part through the implementation of so-called peering
connections with major IT companies, such as Meta and Amazon. We also optimised traffic through
the use of special devices for the temporary storage of traffic (caching), which is required by a large
number of users.
FTTH fibre optic access network and access devices
We are further expanding and upgrading Telekom Slovenije’s fibre optic network, which has provided
users transfer speeds of up to 1 Gb/s since 2007, and up to 10 Gb/s upon request. We facilitated the
connection of an additional 30,909 Slovenian households to the fibre optic infrastructure in 2022.
Together, more than 442,000 households in Slovenia have access to the fibre optic network. We thus
provide users higher internet speeds and a superior user experience in terms of broadband content. At
the same time, we are improving the cost efficiency of the system and contributing to the achievement
of the objectives of the Digital Agenda for Europe until 2025 (Connectivity for a European Gigabit
Society).
We are gradually migrating from the copper network to the fibre optic network; on the copper network,
ADSL2+ technology is making way for VDSL2 technology, which facilitates higher speeds and
improved transmission symmetry.
We are building the network in city centres and in rural areas, in line with the development strategy,
economic criteria and the interest of users. 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 market 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 also expanding fibre optic connections to base stations and connections for business users.
Transmission systems
We expanded the DWDM ROADM network in 2022, and included 100 G and 10 G interfaces. In
CWDM transmission systems, we upgraded 1 G interfaces to 10 G in accordance with needs for
MSAN uplinks and base stations.
We continued with the construction of the distribution network for the synchronisation of the 5G
network, and also tested and implemented connections. We optimised the SDH network taking into
account trends of the exclusion of TDM connections.
On the regional fibre optic network, we constructed the coherent Ilok–Belgrade–Sofia section, and
included additional 100 G and 10 G connections. Amongst major projects were the inclusion of
4 x 100 G connections on the Sofia–Vienna section and the protection of 4 x 100 G connections on
the Sofia–Milan section.
Radio network
We continuously update the mobile network, software and equipment with 4G and 5G technologies.
We are increasing the capacities of base stations due to the rising volume of mobile data traffic, and
improving the external and internal coverage of the mobile radio signal, in part through the
construction of base stations at new locations. We discontinued the use of the 3G network in October
2022 in our efforts to follow guidelines on the use of the frequency spectre for advanced 4G and 5G
technologies.
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The following were connected to Telekom Slovenije’s radio access network in Slovenia at the end of
2022:
• 1,498 GSM base stations,
• 1,507 LTE/4G base stations, and
• 325 5G base stations.
We currently cover more than 97% of the population with the LTE/4G network, more than 84% of the
population with the LTE-A/4G+ network, and more than 40% of the population with the 5G network.
We included an additional 59 small cells for the needs of internal coverage.
Users’ needs for even higher-capacity mobile internet access continue to grow every year. The trend
of rising data transfer quantities continued in 2022. The user experience in our mobile network
remains superior.
We are upgrading the 5G network according to the non-stand-alone (NSA) principle and are planning
upgrades according to the stand-alone (SA) principle. We increased the number of 5G base stations to
325 in 2022. We ensure coverage with the 5G network in the 2,600 MHz, 3,600 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 eHealth, energy, transport, logistics, factories, smart cities and
communities, etc.
We increased the number of 5G base stations to 325, while more than 40% of the population is already covered
by the 5G network.
In the area of technical user support, we supported new services and products, such as eCare, NEO
Lite and the IoT. We actively provide key business users ‘service desk’ support with the highest
service level agreement (reporting time, fault clearance time). We are continuing the development of
automated communication with users, upgraded the Maks application and adapted the system in the
area of fixed communications.
In the scope of technical user support, we made 1,386,510 different contacts (incoming, outgoing,
SMS, email and the digital adviser Maks) in 2022. The digital adviser Maks recorded 38,647 contacts
with users, an increase of 25% relative to the previous year.
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Most advanced Cyber Security Operation Centre
The number of attacks and attempted attacks on individuals and companies is on the rise, with that
number increasing by one-fifth in 2022 relative to the previous year. Telekom Slovenije’s Cyber
Security Operation Centre (CSOC), which is the most advanced centre of its kind in Slovenia and
represents an important pillar of cyber security, has noted a sharp rise in abuse and cases of
attempted abuse. The most frequently used methods of attack used by hackers to target individuals
and companies are malware (worms, trojans, etc.) and ransomware, which attackers deliver to victims
mainly with the help of phishing or via the vulnerabilities of software. Distributed denial-of-service
(DDoS) attacks, network scanning and the search for security holes have become part of everyday
life.
The main focus of the CSOC in 2022 was on the automation of work, risk management, the provision
of services to a large number of new users, and the introduction of new tools and concepts for
managing cyber security. We strengthened employee competences, participated in various
international exercises (NATO Cyber Coalition 2022, CTF Capture the Flag, etc.) and worked with
international cyber security organisations (e.g. Enisa Cyber Europe 2022).
We introduced predictive cyber security services, in the scope of which we monitor events on the web
for companies, from ordinary websites to the dark web and closed hacker groups. In that respect, we
search for stolen data and other information that would indicate that an organisation already was or is
the potential target of a hacker attack.
Trend in the handling of security incidents by the CSOC
Smart industry and cities
Together with the company Metronik, we developed an innovative platform for the digitalisation of
industry in connection with the industrial Internet of Things. The platform is intended for the
monitoring and optimisation of production machinery. It allows industrial companies to monitor the
functioning of machinery in real time, to improve the utilisation and availability of machinery and to
perform predictive maintenance.
In the area of meter reading, Telekom Slovenije and its partners, Kolektor Sisteh, DS Meritve, CMC
Group and Infotim Ržišnik Perc, established a pilot project for Rižanski vodovod Koper for the remote
reading of water meters at more than one hundred locations in Koper, Izola and Podgorje. As the
first such system in Slovenia, it facilitates the remote reading of meters and the more precise charging
of supplied water, detailed control over the water network, the optimal management of water sources,
the digital monitoring of consumption, the identification of faults and losses, and rapid intervention in
the event of water spills in customers’ premises. The solution is in line with the long-term strategic
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policies of the European Commission regarding climate neutrality and the reduction of the carbon
footprint.
In the area of smart agriculture, we completed the first season of a pilot project in Goriška Brda in the
area of smart viticulture with remote pest control. The project, which includes Klet Brda, the
Municipality of Brda, Telekom Slovenije and EFOS, has 24 traps in a selected area of Goriška Brda for
the remote control of the European grapevine worm (Lobesia botrana) and the vine moth (Eupoecilia
ambiguella).
We also continued with the development of the Smart City platform and, in addition to traditional IoT
solutions, offered municipalities solutions for the digitalisation of relations and transactions with other
municipalities. The participatory budgeting solution was very well-received by both municipalities and
users (citizens), as we also facilitated the submission of opinions and voting on the financing of
municipal projects. We are implementing a smart mobility solution in the Municipality of Celje, and will
establish two central communication stations in the Municipality of Šmartno pri Litiji. A central
communication device represents our solution for smart cities which, in the form of a street light to
complement smart public lighting, also facilitates the monitoring and analysis of different factors for the
improved planning and management of resources, and the provision of public services such as electric
vehicle charging, an overview of available parking spaces, etc.
NEO platform
Data indicate that Slovenian users are extremely receptive to technological innovations, as in a little
more than four years, more than 120,000 Telekom Slovenije subscribers have begun searching for TV
content by voice, i.e. by saying what they would like to watch: the title of a movie or series, the name
of an actor, a TV programme, a sporting event, etc. Telekom Slovenije introduced the voice-controlled
search for TV content, in the Slovene language, at the end of 2018 with the NEO TV platform, a
solution that is the result of the development efforts of the Company’s experts. For this reason, the
platform adapts continuously and rapidly to the habits of Slovenian TV viewers. In 2022, we
transitioned to a new generation of NEO Smartboxes with more powerful hardware, upgraded the user
interface and facilitated the back-viewing of content using thumbnails.
We ensure the smooth functioning of the network and services 24 hours a day, every day of the
year. The reliability of the network is seen in a high level of availability, which exceed the established
objectives and was 99.99% in 2022. The average duration of network disruptions was 0.18 hours
during the year. The average actual continuous data transfer speed in Telekom Slovenije’s network is
illustrated in the table below.
38
IP traffic,
average in Gbit/s
Residential
users
Business
users
Mobile
network
download
808.6
36.9
34.8
upload
54.1
22.0
4.7
38
SASB: TC-TL-520a.2, TC-TL-550a.1; GRI PA4
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
115
8.1.2. Compliance, competition protection and auditing
Compliance and anti-corruption
39
Through its established compliance management system, the Telekom Slovenije Group ensures that
operations are in line with the law, other regulations and internal acts. We have identified compliance
as a crucial element for long-term successful operations, and for the protection of the rights and
legitimate interests of all stakeholders. We continuously build on the ethical culture and protect the
reputations of Group companies.
The Code of Ethics of the Telekom Slovenije Group defines 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, the protection of human rights, 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 defined in more detail in other internal acts. The content of the code is
verified and updated, as required, by the compliance and integrity officer. We present the importance
of ethical and business standards for successful operations regularly to employees during training.
The code is published on the Company’s website.
Compliance is governed by the Telekom Slovenije Group’s Compliance Management Policy,
which applies to all Group companies.
Key areas of the compliance management system
The compliance management system is
based on the identification and mitigation or
management of risks. To that end, special
emphasis is placed on measures relating to
the prevention of corruption and conflicts of
interest, competition law, 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.
39
GRI 2-12, 2-13, 2-14, 2-16, 2-23, 2-24, 2-25, 2-26, 3-3
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 2022
116
Telekom Slovenije has appointed designated persons for specific areas of compliance who perform
their functions independently, and report directly to the Management Board and the Audit Committee
of Telekom Slovenije's Supervisory Board on a quarterly basis with regard to activities performed and
measures adopted to mitigate risks in the area of compliance.
Prevention of corruption and conflicts of interest, and ensuring compliance with competition law
The Integrity Plan of Telekom Slovenije is updated every year. That plan includes identified risks, a
risk analysis, adopted measures and further activities aimed at ensuring a high level of compliance.
We will gradually implement the Integrity Plan at subsidiaries as an additional mechanism.
We introduce ethics and business standards along the entire value chain. To that end, we have
adopted the Code of Conduct for Suppliers of the Telekom Slovenije Group. We integrate the
content of that code into business relationships with suppliers.
Through the Rules Governing Conflicts of Interest, we define the activities expected of employees
to prevent the occurrence of conflicts of interest and manage them when they arise. Those rules cover
the issuing of a statement regarding conflicts of interest for management staff and define the role of
the Compliance Committee. They also include basic rules on lawful lobbying before the bodies of the
central government and local communities, and the holders of public authorisations.
With the aim of managing conflicts of interest, the rules of procedures of both the Management Board
and Supervisory Board include substantive provisions regarding the conduct of an individual member
of a body who finds themselves in circumstances that constitute conflicts of interest.
In its operations, the Telekom Slovenije Group complies with the provisions of valid legislation
governing related-party transactions. For this reason, the conclusion of related-party transactions
requires the prior consent of the Supervisory Board in certain cases, as well as the publication of such
transactions in some cases. A procedure is in place to verify the existence of such transactions. No
transactions of this type were recorded in 2022.
We define the aforementioned area in detail in the Rules on the Acceptance and Offering of Gifts
and Invitations. We thus ensure the unbiased, objective and professional performance of work tasks
and adoption of business decisions.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
117
Employees are obliged to report every identified or potential breach of the Code of Ethics or other
internal acts, as well as unlawful, unethical and otherwise questionable conduct. We regularly inform
employees about the importance of such disclosures. Employees and other stakeholders may file
reports via various channels, where confidential treatment is ensured. The system for receiving,
handling and investigating reports is set out in the Rules on the Management of Reports and
Protection of Whistleblowers. Those rules also govern the protection of whistleblowers and the
prohibition of retaliatory measures. The Whistleblowing Committee is responsible for the receipt,
handling and investigation of complaints, and proposes the adoption of measures when breaches are
identified, and for reporting its findings to the Management Board, Audit Committee and Supervisory
Board. Two reports were received in 2022 from external and internal whistleblowers. A breach of the
Telekom Slovenije Group’s Code of Ethics was identified in one case with respect to the manner of
communication, while no breach was identified in the other case.
The Telekom Slovenije Group 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 financial resources or in any other way support political parties.
40
No cases of corruption were identified and confirmed within the Telekom Slovenije Group in 2022.
41
We follow rules in the area of competition law in our operations. With the Rules on Ensuring
Compliance with Competition Law, we define a competition law framework, prohibited conduct and
how employees should conduct themselves in business activities. By regularly informing and training
employees, we contribute additionally to the management of such risks.
Protection of privacy and personal data
42
The protection of privacy and personal data is important for maintaining trust in the Telekom Slovenije
Group and its services.
Telekom Slovenije processes a large quantity of personal and other data relating to users, and to
other stakeholders (e.g. employees and business partners). In 2022, we updated internal acts that lay
down measures and procedures for ensuring the appropriate protection of data, and organised
mandatory training for all of the Company’s employees.
Through regular training, we ensure the necessary level of awareness and knowledge of employees
and authorised agents regarding the processing of personal data and information security.
We ensure the communication privacy of users. Based on the law, we are 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 1,889 requests from official
authorities for user data in 2022, and rejected 39 requests as inappropriate.
43
Three supervisory proceedings were carried out at Telekom Slovenije in 2022 by the Information
Commissioner, but had not yet been completed by the end of the year. Two procedures began in 2020
and 2021, while one misdemeanour procedure in connection with an event in 2019 was halted in
January 2023 without sanctions against the Company. In 2022, we received 126 reports of events
from users in connection with their privacy, which is double the number of reports in the previous year.
We recorded an increase in 2022 in the number of incidents and cases of abuse in the conclusion of
agreements involving the purchase of a device. For this reason, we have already established
additional mechanisms for verifying user data in the conclusion of agreements, with additional
measures on the way. We protect the rights of individuals when handling incidents. In no cases were
breaches that could threaten the rights and freedoms of individuals identified. There was thus no
reason to file reports with supervisory authorities. There were likewise no breaches of personal data
protection identified in any of the events handled. IPKO received a total of five complaints of potential
breaches of the protection of users’ privacy, four of which were filed by users. In one case, the
40
GRI 415-1
41
GRI 205-3
42
GRI 3-3, SASB: TC-TL-220a.1, TC-TL-230a.2
43
SASB: TC-TL-220a.4
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
118
supervisory authority in Kosovo requested an explanation from the company. We did not record any
losses in 2022 from legal proceedings as the result of events in connection with privacy or the
protection of the personal data of individuals.
44
We continuously update measures to protect personal and other data. To that end, we take into
account both assessed risks and previously introduced internal controls, as well as experience gained
in the handling of incidents, the recommendations of professional associations and best practices.
Prevention of money laundering
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.
In accordance with the requirements of the new Prevention of Money Laundering and Terrorist
Financing Act (ZPPDFT-2) and Banka Slovenije’s new guidelines, we have adapted money laundering
prevention processes and measures.
In accordance with a Banka Slovenije request, we are also verifying whether payment services and
electronic money issuing services are rendered in connection with persons against whom restrictive
measures have been imposed as a result of the war in Ukraine. We did not identify any such
transactions in 2022, nor did we identify any transactions involving the suspicion of money laundering
or terrorist financing.
45
Respect for human rights
46
The Telekom Slovenije ensures a positive impact on people and society, as well as respect for human
rights at all levels of operations.
We adopted the Rules on the Respect of Human Rights in 2022. Those rules provide guidance on
how to identify, prevent and rectify possible cases of failure to respect human rights in the workplace,
and define procedures and measures to ensure that human rights are respected. We appointed a
human rights officer, with that function being performed by the Management Board member who
serves as Workers’ Director. Her role is to establish and monitor control mechanisms and manage
preventive measures in the area of human rights, as defined in the above-described rules.
At the end of 2022, Telekom Slovenije carried out a comprehensive review of respect for human rights
in order to define key risk indicators in connection with the breach of human rights. During that review,
we focused on rights relating to the Company’s mode of operation. We did not identify any beaches of
human rights. The final report included recommendations regarding the need to continuously raise
awareness about the importance of human rights, a review of the respect for human rights in the
procurement process, and the introduction of best practices and the raising of awareness amongst
users.
Telekom Slovenije is a signatory of the Commitment to respect human rights in the course of
operations, which is part of the National Action Plan of the Republic of Slovenia on the Respect of
Human Rights in Business.
We also expect our suppliers to respect human rights, which we oblige them to do through the Code of
Conduct for the Suppliers of the Telekom Slovenije Group.
Compliance training
47
The Telekom Slovenije Group organises regular training, workshops and e-learning on the subject of
compliance for employees and authorised agents. We also raise awareness about the importance of
compliance, and provide information about specific activities and previously implemented mechanisms
in this area via the intranet or email.
44
GRI 2-25, 418-1, SASB: TC-TL-230a.1, TC-TL-220a.3
45
GRI 205-3
46
GRI 2-25, 412-1
47
GRI 2-23, 205-2, 412-2
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
119
In 2022, employees at Telekom Slovenije received a total of 291 hours of training regarding the
detection and prevention of money laundering and terrorist financing, and the prevention of corruption
and conflicts of interest, as well as a total of 592 hours of training regarding information and cyber
security and social engineering. Telekom Slovenije employees received a total of 994 hours of training
in the areas of personal data protection and the handling of confidential information, while employees
at Soline and Avtenta received 8 hours and 46 hours of training in those areas, respectively.
Employees at IPKO received a total 4,895 hours of training regarding personal data protection and
non-discrimination in the workplace. One employee at TSinpo received 100 hours of training to obtain
the Workplace Inclusion Champion certificate in the scope of the Diversity Charter, which is based on
human rights and non-discrimination in the workplace.
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 383 proactive announcements in accordance with the ZDIJZ in 2022 and handled 11
new requests for access to information.
All companies in Slovenia have an officer responsible for reporting 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 subsidiaries.
Reporting on taxes
48
The area of taxes is governed at Telekom Slovenije by the internal act, ‘Organisation of the Tax
Function at Telekom Slovenije, d.d.’, which was approved by the Company’s Management Board.
The Finance and Accounting organisational unit is responsible for drafting and monitoring the tax
policy.
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, which ensures proper tax treatment.
The internal act, ‘Tax Strategy and Tax Management within the Telekom Slovenije Group’, defines
a tax policy, the management of tax risks and transfer prices. The underlying principle of the tax policy
is the functioning of all Group companies in accordance with the 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, 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 risk assessment and reporting. The 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.
48
GRI 3-3, 207-1, 207-2, 207-3
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120
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.
Competition protection and proceedings before the courts and other bodies
49
No new proceedings were initiated against Telekom Slovenije or its subsidiaries in 2022 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.
Telekom Slovenije was party to the following significant proceedings before the courts in 2022:
• On 4 May 2022, Telekom Slovenije received a countersuit filed against the Company by POP
TV and Kanal A for the payment of damages in the amount of EUR 58,154,012.16 with
appertaining amounts. That amount represents damages that the plaintiffs allegedly incurred
for the underpayment of remuneration for the distribution of TV programmes in the period 16
February 2017 to 31 March 2022. That countersuit was filed in response to a lawsuit filed
against those two companies by Telekom Slovenije on 29 December 2021 due to the partial
annulment of the associated agreement and the overpayment of remuneration for the
distribution of TV programmes (value of the dispute: EUR 12,346,337.52). Telekom Slovenije
responded to the countersuit by the legally prescribed deadline.
Provisions for obligations arising from legal actions are disclosed in the accounting report in point 32
Provisions.
External supervision proceedings
50
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 52 external supervision proceedings within the Telekom Slovenije Group in 2022:
33 at Telekom Slovenije and 19 at subsidiaries. A total of 65 external supervision proceedings were
completed, 49 at Telekom Slovenije and 16 at subsidiaries. Inspection authorities did not impose any
fines on the Company or its responsible person.
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, as well as continuous improvements, are confirmed every year via an
internal quality assessment, while an independent external quality assessment was carried out in
2021. The IAS works with senior management and the supervisory body, and reports regularly to both
with regard to its work.
Objective assurances regarding key risks and consultancy services are provided by professional and
motivated internal auditors with numerous professional titles. 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.
49
GRI 206-1, SASB: TC-TL-520a.1
50
GRI 2-27
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
121
The IAS plans transactions in accordance with adopted strategies, objectives and risks within the
Telekom Slovenije Group, and based on a collection of various data and information regarding
operations and risks, global trends, and information provided by senior management and the
supervisory body. Through audit transactions, assurances and consultancy activities, 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.
Activities in 2022 were defined in the IAS’s current work plan, which was prepared on the basis of the
plan for the period 2022 to 2026. Annual and multi-year plans were adopted by the Management
Board, with the Supervisory Board’s consent. In addition to the transactions set out in the annual plan,
the IAS completed two extraordinary audits and started a third in 2022.
Based on transactions performed, we find that risk management systems for achieving objectives are
in place and functioning.
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
held on 5 June 2020. Costs associated with the auditor are disclosed in the accounting report in point
43 Auditor’s fee.
Regulation of electronic communications
Frequencies
In August 2022, the AKOS published draft tender documentation in connection with a public auction
for the allocation of the 2,300 MHz and 3,600 MHz radio frequencies for local use.
Development of next generation broadband networks
In August 2022, the Slovenian government adopted the Gigabit Infrastructure Development Plan for
the period until 2030. The Government Office for Digital Transformation is continuing the drafting of
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 Electronic Communications Act (ZEKom-2) entered into force in November 2022, and thus
transposed into Slovenian law the directive on the implementation of the European Electronic
Communications Code (EECC). The Consumer Protection Act (ZVPot-1) entered into force in October
2022 and began to apply on 26 January 2023. The Digital Services Act (DSA) was published in the
Official Journal of the European Union in October 2022.
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122
Relevant markets
Telekom Slovenije was deemed an operator with significant market power on relevant markets 1
‘Wholesale local access at a fixed location’ and 3b ‘Wholesale central access at a fixed location for
mass-market products’ under decisions issued by the AKOS. It imposed on Telekom Slovenije the
obligations to grant operator access, to ensure equal treatment and transparency, to ensure price
control and cost accounting, and to ensure separate accounting records. The AKOS conducted
various inspections with respect to Telekom Slovenije in connection with imposed obligations on
regulated relevant markets.
Relevant market
Change
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’
Telekom Slovenije was deemed an operator with
significant market power under a decision issued
on 14 July 2022.
Telekom Slovenije was deemed an operator with
significant market power on sub-market B under
a decision issued on 14 July 2022.
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 continuously improve the resolution of
complaints 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.
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123
New services
Telekom Slovenije’s insurance and payment services are regulated by the competent supervisory
authorities. We take into account all regulations and laws in the provision of those services.
Regulatory development in Kosovo
On 5 July 2022, the Kosovo electronic communications regulator (ARKEP) issued a decision
rescinding the regulatory obligations imposed on IPKO as an operator with significant market power on
the broadband wholesale market. Public consultations began in August 2022 in the process of
analysing the high-quality wholesale access market.
8.1.3. Quality management systems
Through effective management, we control the entire lifecycle of our services, from design and
development, the securing of resources, logistics, implementation and maintaining the quality of
services, to the controlled conclusion of the lifecycle.
We monitor the lifecycle comprehensively through:
• measurements of key performance indicators;
• measurements of user and stakeholder satisfaction;
• initiatives for improving satisfaction (e.g. excellence of the customer experience); and
• the introduction of tools for quality management.
Through the successful completion of a number of demanding recertification assessments in 2022, the
Group maintained all previously implemented management systems.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
124
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 14001
Valid until: 31 January 2026
Environmental management system in real estate
management
SIST EN ISO 22301
Valid until: 11 April 2025
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 2026
Energy services of Telekom Slovenije for internal needs
SIST EN 50518
Valid until: 28 October 2025
Alarm system – Monitoring and alarm receiving centre
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 2025
Development and integration of business solutions, service
delivery and consulting, system integration, project
management and sales.
IPKO (Kosovo)
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 in 2022 to maintain manufacturer certificates, such as MS
Partner, Cisco, Oracle and HP, and for systems that are based on other recommendations (internal
rules, Family-Friendly Company requirements, the ECS-PPT/DARSGo management system, the
comprehensive review of respect for human rights, etc.). We also carried out assessments for
business partners at their request.
We verify the performance and functioning of systems through measurements of objective progress
indicators, and promote the increased integration of management systems into the everyday
sustainable and responsible operations and management of the Company and Group. In 2022, we
carried out a self-assessment of the excellence of the parent company’s operations according to the
global EFQM 2020 method, as well as two half-yearly assessments of progress in the implementation
of selected priority measures from the aforementioned self-assessment. Through the application of the
GRI in the annual report, we fulfil the requirements of the non-financial reporting directive and the
Companies Act (ZGD-1).
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125
Quality management systems at Telekom Slovenije
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
126
8.1.4. Protecting the Company, networks, systems and services
The comprehensive protection of the Company’s assets and the secure functioning of the work
environment are two of the priority corporate security tasks within the 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 for protection and the prevention of security
events, and by rapidly identifying new threats, we ensure the security and quality of the network and
services.
The area of general security includes the management and planning of corporate security, where we
ensure the protection of people and the Company’s assets through physical security measures and
the use of various technical/mechanical security systems. We continued to update and expand
technical security systems in 2022.
We manage the Company’s technical security systems via our modern Security and Control Centre.
The aforementioned centre functions in accordance with valid regulations in this area and is certified
according to the SIST EN 50518 standard. We transitioned to the latest version of that standard in
2022, and thus satisfied legal requirements in this area.
Through the training and testing of employees regarding the identification of security threats, primarily
in the area of cyber security, we constantly raise standards and maintain the security culture at a high
level, while raising awareness about the importance of information security. We also inform the users
about security threats and the secure use of electronic communications.
We ensure compliance with legal requirements regarding the handling and protection of confidential
information. The Company also fulfils other legal obligations in accordance with the provisions of the
ZEKom-2 and regulations governing the critical infrastructure, defence and civil protection and rescue.
Ensuring business continuity and information security
The business continuity management system (BCMS) and information security management
system (ISMS) facilitate the rapid recovery of key services and processes, the adaptation of
processes and the adoption of measures in the event of identified security threats. We adapted
and further strengthened security measures again in 2022. Special attention was dedicated to
cyber security, in which our Cyber Security Operation Centre plays a crucial role. Systems and
the network functioned without major disruptions or impacts on the availability and provision of
services.
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 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.
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127
8.2. Concern for society
8.2.1. #connected with the social environment
51
The Telekom Slovenije Group cares for the social environment in which it operates throughout the
year. Our donations in 2022 once again helped vulnerable groups, the elderly, young people from
socially disadvantaged backgrounds, and numerous humanitarian institutions and projects.
We donated EUR 10,000 at the end of the year to support the Slovenian Federation of Pensioner’s
Associations, which helps and eases the lives of the elderly through its programmes.
Cancer awareness-raising projects
We organised three special cancer awareness-raising projects in 2022.
In September, which is international Childhood Cancer Awareness Month, we donated EUR 5,000 to
the Junaki 3. nadstropja (Heroes of the Third Floor) association. The Heroes of the Third Floor
comprise children who are or have been treated in the haemato-oncology ward on the 3rd floor of the
Paediatric Clinic in Ljubljana. These are children suffering from cancer. We also participated in the
implementation of an event at which the Heroes of the Third Floor and the Nordic Centre in Planica
organised mini Olympic Games.
In October, which is breast cancer awareness month, we donated EUR 10,000, together with
Samsung, to the Slovenian chapter of the Europa Donna association, which carries out activities to
raise awareness about breast cancer and offers support to patients diagnosed with breast cancer and
their loved ones. We have been working with the aforementioned association for 15 years.
In November, which is men’s cancer awareness month, we donated EUR 5,000 to the Slovenian
Oncology Association for Men (OnkoMan), together with the company Xiaomi.
We included employees with personal experience in the above-described areas in all activities and
donations.
Major sponsorships and donations in 2022
The Telekom Slovenije Group earmarked a total of EUR 2.1 million or 0.3% of its sales revenues for
sponsorships and donations in 2022.
51
GRI 201-1
sport
humanitarian causes
education / science
culture
other
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
128
Humanitarian projects
We assisted the following organisations:
• Slovenian Red Cross for the continued renovation, arrangement of living quarters and
landscaping at the Debeli Rtič Youth Spa and Resort;
• Friends of Youth Association for the TOM telephone intended for children and adolescents in
distress;
• Association of Counsellors to help those in distress via the Samarijan telephone line;
• Ljubljana-Kiev Cultural Society to provide humanitarian assistance to the people of Ukraine;
• Caritas of Slovenia and the Slovenian Red Cross to facilitate the schooling of children and
adolescents who fled from Ukraine to Slovenia;
• Firefighters Association of Slovenia for the purchase of equipment that was destroyed or
damaged while extinguishing the fire in the Karst region, and the organisation of the
‘Firefighting Olympics’ and;
• Slovenian Federation of Pensioner’s Associations (ZDUS).
Education and science
We support the following educational-scientific projects, conferences and professional meetings:
• the Reading Badge project,
• the Varno na kolesu (Safe Cycling) project,
• the Happy School project,
• the Corporate Security Days conference,
• the multimedia educational programme at the Faculty of Electrical Engineering at the
University of Ljubljana,
• the Eco-Quiz project for primary and secondary schools, 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 and
projects, such as:
• the Ljubljana Festival,
• the Ljubljana International Film Festival – LIFFe,
• the Ljubljana Puppet Theatre,
• the National Opera and Ballet in Maribor,
• Carnival in Ptuj, and
• the film Gajin svet 2.
Sport
We are one of the biggest supporters of Slovenian sport and sport in general. We supported various
sporting associations, clubs and events in 2022, as follows:
• 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-
Telekom Novo Mesto and Domžale basketball clubs, the Celje Pivovarna Laško handball club,
the Mura Football School and others; and
• sporting events: the World Volleyball Championship in Ljubljana, the World Ski Jumping
Championship in Planica, the women’s World Cup ski jumping competition in Ljubno, the
Franja Marathon, the Red Bull Goni Pony event, the Spartan Race in Slovenia, the Red Bull
400 Planica race, the World Cup sport climbing competition in Koper, the Triglav The Rock
Ljubljana international climbing spectacle, Ljubljana Beach Volley 2022, and numerous others.
Social responsibility is also a policy at all Telekom Slovenije Group companies.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
129
8.2.2. #connected with users
52
Responsible and transparent relations with users and their satisfaction are crucial for successful
operations. A satisfied user is one of our core values, while ensuring the best user experience is one
of our key strategic policies. We continuously adapt to the needs and wishes of individual user
segments, and demonstrate our concern for users through user-friendly and technologically advanced
services, products and content. In that respect, we ensure that services are marketed responsibly and
ethically. In order to tackle today’s social challenges, we develop special technical solutions, promote
digital literacy and facilitate broad access to communication services.
Ethical market communication
53
We comply with high standards of marketing ethics in our marketing and advertising processes.
Telekom Slovenije pursues those standards as 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 comply with the Media Act and the Slovenian Advertising Code, and follow the
recommendations of the AKOS in the area of customer care.
In market communication, we self-regulate advertising, meaning we verify compliance with the law and
codes every time communication projects are planned. We also take into account examples of best
practices prepared by the Slovenian Advertising Chamber (www.soz.si/projekti_soz/dobra_praksa/).
TSmedia and IPKO also comply with general professional advertising codes.
Misdemeanour proceedings under the Consumer Protection Act were initiated against Telekom
Slovenije in 2022 due to the inappropriately advertised price and price advantage of NEO packages.
We made immediate corrections to the advertising in question, and received an inspection report in
which the Market Inspectorate found that we had complied with the administrative warning and
indicated essential information regarding the time limit on the reduced monthly subscription fee, as
required. The aforementioned inspectorate thus halted administrative proceedings. There were no
breaches in the area of market communication at other Telekom Slovenije Group companies.
54
Communication with users via telephone, the web and social networks
In 2022, the Customer Help Desk responded to 440,485 calls and 162,655 emails, and made 8,114
calls via video identification. We recorded 13,015 contacts via the online chat feature and social
network.
The digital adviser Maks recorded 38,647 contacts with users. We continuously supplement and
upgrade Maks’ primarily technical-based knowledge. In addition to knowledge about basic
communication services, Maks is also knowledgeable about support for the VALÚ service, has
expanded his knowledge about new features on the NEO platform, helps answer users’ questions
about smart homes and WiFi access points, etc.
The My Telekom portal is used by more than 60% of the users of our services.
8,114 calls via video identification
440,485 received calls
162,655 answered emails
38,647 contacts with users via the digital adviser Maks
We recorded more than 20 million visits to the website www.telekom.si, with nearly 82% of those
visits made via mobile devices. We joined TikTok in 2022 with the aim of getting closer to Generation
Z users.
52
GRI 3-3
53
GRI 3-3
54
GRI 417-3
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
130
We maintain the leading position amongst telecommunication companies on key social networks,
meaning our posts and content reach an increasing number of users.
Telekom Slovenije encourages its employees to be active digital ambassadors. To that end, we
launched the Sociabble digital platform, on which 100 employees are active. Any employee who
creates and shares our stories on social networks can become one of the Company’s digital
ambassadors. They thus become an important link in the co-creation of our image and the Telekom
Slovenije brand.
Sharing digital inspiration.
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
configuration 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 continued with the development of applications for field technicians. At the end of 2022, we
introduced a new tool for producing simple technical solutions that facilitate the more rapid
development of solutions and standard content at the level of all service providers.
Transparency in the charging of services
55
55
GRI PA10
89,993
166,949
177,803
306,204
0 50,000 100,000 150,000 200,000 250,000 300,000 350,000
T2
Telemach
A1
Telekom Slovenije
Total number of followers on social media
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
131
We issued 5.5 million invoices for telecommunication services in 2022. The total number of invoices
was down by 3.5%, as the result of the combining of multiple invoices into a single invoice. The overall
complaint rate relative to total invoices issued was 0.53%. That rate was at the level recorded in 2021.
Out of concern for the environment, we are gradually discontinuing paper operations, and encouraging
the reduction of the number of printed invoices through a number of activities. The number of invoices
in one electronic form or another was thus up by 3% in 2022 relative to the previous year.
In the complaint resolution process, we successfully introduced text analytics, which is based on
machine learning and covers the step of recording complaints. In this way, we automated certain steps
and redirected employees from routine tasks to the substantive resolution of complaints.
CUSTOMER SATISFACTION
56
We monitor the satisfaction of residential and business users through regular surveys, while we
regularly measure surveyed monthly and daily transactional NPS. NPS is one of the key indicators for
monitoring customer satisfaction, and tells us whether or not users recommend Telekom Slovenije. In
a single number, it shows a user’s willingness to recommend the Company and their satisfaction, their
perception of the excellence of the customer experience and their expression of loyalty to the
Company as service provider.
We monitor NPS measurements monthly on an aggregate basis 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. We recorded mixed customer
satisfaction at our touchpoints in 2022, but ended the year with an increased number of satisfied
customers and achieved set target values.
Transactional NPS:
Source: Telekom Slovenije, Transactional NPS, 2022.
We recorded mixed customer satisfaction at our touchpoints in 2022. We began the year above the
average values of the previous two years, but in the summer recorded a drop in satisfaction that did
not last long. Sentiment had already improved by August, and we reached our established target
values in October. We recorded an increase in the number of satisfied customers in November and
December, and had achieved established target values by the end of the year.
We achieved a high transactional NPS (visit by a technician in cooperation with technical support),
which was 85 index points in 2022, meaning we maintained the level recorded in 2021. We certified
the position of ‘sales technician’, which facilitates a broader range of advisory services in connection
with sales activities.
Satisfaction of residential users with Telekom Slovenije’s services
Telekom Slovenije maintains a high level of customer satisfaction (Valicon, spring 2022). The
proportion of satisfied and completely satisfied users remains high and stable. The main elements of
56
GRI 2-29
Jan.19
Feb.19
Mar.19
Apr.19
May19
Jun.19
Jul.19
Aug.19
Sep.19
Oct.19
Nov.19
Dec.19
Jan.20
Feb.20
Mar.20
Apr.20
May20
Jun.20
Jul.20
Aug.20
Sep.20
Oct.20
Nov.20
Dec.20
Jan.21
Feb.21
Mar.21
Apr.21
May21
Jun.21
Jul.21
Aug.21
Sep.21
Oct.21
Nov.21
Dec.21
Jan.22
Feb.22
Mar.22
Apr.22
May22
Jun.22
Jul.22
Aug.22
Sep.22
Oct.22
Nov.22
Dec.22
(t)NPS_a total of 21 contact points
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
132
satisfaction with Telekom Slovenije’s services include:
• reliability of the operator (mobile and fixed segments);
• functional stability (internet, TV and mobile internet);
• fixed internet speed; and
• coverage of network and speed of the mobile network.
Satisfaction index for Telekom Slovenije’s users
Source: Valicon, Satisfaction of the users of telecommunication services; spring 2022, n= 1,028.
NEO wins over users primarily as an interface with simplified voice control, the simplified search for
content, and a transparent layout and content in one place (Valicon, Monitoring of product brands –
NEO; December 2022, n = 1.027).
A total of 86% of users are satisfied with the NEO platform, with one-fifth saying they are fully satisfied.
Some 92% of users are satisfied with the TV delay function, while 87% of users are satisfied with the
recording function. One of NEO’s main advantages over other providers is the content- or video-on-
demand function (Valicon, Satisfaction of the users of telecommunication services; spring 2022,
n = 1.028). NEO achieves the highest satisfaction scores amongst users of the smart living platform
for the majority of elements.
Most important elements that convince users to choose NEO
13%
60
61
62
63
64
65
66
67
68
69
70
6%
11%
16%
21%
26%
Spring 2020 Spring 2021 Spring 2022
Customer satisfaction index (CSI) - mobile
category (two years of growth)
CSI CSI % completely satisfied
+3%
11%
62
62.5
63
63.5
64
64.5
6%
8%
10%
12%
14%
16%
18%
20%
Spring 2020 Spring 2021 Spring 2022
Customer satisfaction index (CSI) - fixed category
(two years of growth)
CSI CSI % completely satisfied
+2%
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
133
Payment cards and cash remain two of the most common ways to pay for goods and services, while
the proportion of mobile wallets users has increased by 5 percentage points, with 65% of Slovenes
aged 15 to 75 years already using this payment method.
In the category of mobile payment systems and mobile wallet, VALÚ strengthened its pyramid of
power to BSI = 24 in 2022 (+3 points for recognition, choice and use). (Valicon, Monitoring of product
brands – VALÚ; December 2022, n = 1,027).
VALÚ maintains a perception amongst users based on four elements
Satisfaction of business users
The overall satisfaction of Telekom Slovenije’s business users remained high, with 97% of all users
saying they are satisfied. Telekom Slovenije is the operator recalled most frequently, as well as the
first choice of those surveyed in the areas of ICT, IT solutions and telecommunications. The Company
is a step ahead of other operators in terms of recognition and choice (Valicon, Satisfaction amongst
business users; December 2022).
Index of business user satisfaction
Source: Valicon, Satisfaction amongst business users; December 2022, n = 147.
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
responsiveness to messages sent via email to info@telekom.si. High scores are achieved in all
measurements.
Source: Valicon, Mystery Shopper research; autumn 2022.
6%
11%
16%
21%
26%
Autumn
2019
Spring
2020
Autumn
2020
Spring
2021
Autumn
2021
Autumn
2022
66
68
70
72
74
76
78
80
82
Customer satisfaction index (CSI) - B2B segment
CSI CSI % completely satisfied
Total score by sales channel
Telecom centers Authorized sellers
Visitors to Telekom Slovenije’s points of
sale express general satisfaction
with the
following factors (Mystery Shopper
research):
✓ the orderliness of surroundings
and the interior of branches;
✓ the pleasant atmosphere created
by sales staff at points of sale;
✓ the pleasantness and helpfulness
of sales staff; and
✓ clear advice from sales staff,
sound understanding of goods
and services, effort shown,
escalation of offer and
consideration of users’ (hidden)
needs.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
134
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 did not measure customer satisfaction in 2022.
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 an average
score from Telekom Slovenije of 4.63 in 2022 (with 1 being the lowest and 5 being the highest score),
while it received a score of 4.86 for project design. External partners gave project design an average
score of 4.94.
TSinpo carries out unstructured interviews with users once a year. Qualitative assessments of
satisfaction were at the level recorded in previous years.
Soline does not measure customer satisfaction.
IPKO regularly monitors the user experience with the help of market research, social networks and
internal quantitative studies. Measurements of customer satisfaction and NPS are carried out for fixed
and mobile services. NPS values given by the company’s users (in the scope of a brand strength
survey) have always been positive and are highest for inter-operator mobile and fixed services on the
market, with that trend continuing in 2022. IPKO also measures customer satisfaction on a regular
basis via surveys performed by an internal team. Measurements are carried out with customers who
visit points of sale or come into contact with the call centre, and by field workers. On a scale of 1 to 10,
the overall score in the mobile segment was 8.3 in 2022 (the same as the previous year), and 7.5 in
the fixed segment (compared with 7.6 a year earlier).
CONCERN FOR THE SAFE USE OF SERVICES AND VULNERABLE
USER GROUPS
57
Through our services, we contribute to the digitalisation of society, and
ensure responsible and broad access to services. To that end, we provide
various vulnerable groups special solutions and a tailored offer.
Overview of portfolio for vulnerable groups and user security
User group
Offer or project
Health and
safety of all
users
• We ensure the protection of the home network and mobile devices of all users
through the Varen splet (Safe Web) service.
• The free Strela alarm (Lighting Alarm) service is available to users who
subscribe to both of Telekom Slovenije’s mobile and fixed services. That
service warns users in advance of a potential lightning strike in the area where
they use a fixed connection.
• We provide advice to users regarding the safe use of communication devices
and services on the website in the tab Recommendations for the safe use of
mobile devices and services.
• The range of products includes simple mobile phones for older and
technologically less-skilled users.
• With the aim of monitoring healthy habits and activities such as counting steps
or measuring one’s heart rate, we offer various devices that we have presented
under the common slogan, ‘10,000 Steps a Day Keeps the Doctor Away’.
• We provide Slovenian hospitals and health centres telemedicine services,
through which the health of patients can be monitored remotely, without
hospitalisation or visiting a clinic (a patient’s vital functions are monitored in the
home and wirelessly transferred to a doctor at a clinic or hospital).
57
GRI G4-DMA, G4-M4, PA2
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
135
Children
• Parents can limit access to inappropriate websites by their children via the My
Telekom portal. That portal has pre-set content categories that prevent access
to inappropriate content.
• The Da Vinci Kids optional programme offers numerous educational video
and interactive content for children aged 6 to 12 years. The aim is to use video
content to bring science, math, technology, history, culture, nature and sport
closer to children in a humorous and interesting way.
• Moja prva pogodba (My First Contract) is available at points of sale, and
enables children and parents to make a plan on how to use their mobile phone
or other mobile device responsibly and in moderation.
• In the scope of the NEO platform, we carefully select a range of cartoons and
other content, which are available in the Children’s Park. We thus provide
children a carefree area, as they can only watch content that is appropriate for
their age, while access to other content can be restricted using a PIN.
• Parents have the option of setting limits to gaming on the NEO platform and
can thus prevent children from playing games that are not appropriate for their
age.
• The users of IPKO’s fixed services can choose between three parental control
options to limit children’s use of websites.
Retirees and
older users
• Available to retirees is the Ugodni package, which includes fixed internet, TV
and fixed telephony services at a more affordable price.
• The eCare service for safer living at home is available to the elderly and their
family members.
• Through the Safe and Connected at Home project, we are working with
Slovenian municipalities to facilitate access to eCare, with those municipalities
subsidising the use of the aforementioned service by their citizens.
Disabled
persons, and
the deaf and
hearing
impaired
• Priority is given to disabled persons in terms of connections to the public
communications network and the elimination of faults.
• With a valid disability status certificate, disabled persons are entitled to a
discount of EUR 2 on their monthly subscription fee for fixed packages.
• The portfolio includes the Gluhi A mobile package for the deaf and hearing
impaired, which facilitates worry-free communication.
• We have facilitated subtitles in the scope of teletext services for the deaf
and hearing-impaired users of the NEO platform.
Police and
firefighters
• Volunteer protection and rescue organisations were offered 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.
Promoting
environmental
responsibility
• We collect used electronic devices and mobile phones at points of sale. By
bringing in their old mobile phones or tablets for exchange, users can reduce
the prices of new devices. We also ensure the safe disposal of those old
devices and thus demonstrate our concern for the environment.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
136
BROAD ACCESS TO GROUP SERVICES
58
Telekom Slovenije provides the most advanced ICT services and content in both
urban and rural areas, and thus helps bridge the digital divide in society. The mobile
telephony signal is accessible by 99.75% 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 442 thousand Slovenian
households.
59
Coverage of the population with individual radio network technologies in Slovenia:
2G/GSM
4G/LTE
4G+/LTE-A
5G
99.75%
97.03%
84.08%
40.04%
IPKO also facilitates broad access to ICT services. The company was the first operator in Kosovo to
successfully complete the testing of fifth-generation (5G) mobile network technology, and was
awarded a frequency band by the Kosovo regulatory authority (ARKEP). With a network that has
achieved speeds of 1.2 GB/s in tests, it will soon enable the implementation of the latest technological
advances. IPKO is also investing in fibre optics, and in the expansion of the coverage and capacities
of the 4G network.
Coverage of the population with individual radio network technologies in Kosovo:
2G
3G
4G
99.2%
91.0%
88.8%
58
GRI PA1, PA2, SDG 9
59
GRI PA4, SDG 1
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
137
8.2.3. #connected with 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 aware that
long-term commercial success can only be achieved by investing in knowledge and development, as
we operate in a high-tech and dynamic sector that is constantly evolving. The systematic building of
the employer brand and our organisational culture in the direction of mutual cooperation
60
is crucial for
ensuring the appropriate employee structure. We introduce and upgrade HR practices together with
employees and through their inclusion in the entire process, while we also strive to improve the overall
experience and treatment of employees through a number of activities.
Care for employees is a key element of our HR policy and the organisation culture. We dedicate
numerous activities to the promotion of health, well-being and the prevention of burnout. We ensure a
safe and healthy work environment for employees, with special attention given to flexibility, hybrid
forms of work, and flexible working hours to facilitate a work-life balance. To that end, we are
implementing a number of activities to encourage a healthy lifestyle.
We reject any and 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. More about the Telekom Slovenije Group’s Code of Ethics in section 8.1.2 Compliance,
competition protection and auditing.
Similar to previous years, Telekom Slovenije Group companies did not receive any complaints due to
discrimination in 2022.
61
Structure of employees
62
The Telekom Slovenije Group had 3,262 employees at the end of 2022, with Slovenian companies
accounting for 2,784 of that number. The total number of employees was down by 0.7% relative to
2021, primarily due to the termination of employment for business reasons and retirements at Telekom
Slovenije, GVO and IPKO.
At 7.4%, employee turnover within the Telekom Slovenije Group was up by 1.3 percentage points
relative to 2021.
63
60
GRI 3-3
61
GRI 406-1
62
GRI 2-7, 2-8
63
GRI 401-1
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
138
Number of employees as at 31 December
2022
Telekom Slovenije
Group
Telekom
Slovenije
Other
companies in
Slovenia
IPKO
Number of employees
3,262
2,103
681
478
Type of employment
Permanent employment
2,950
2,066
575
309
Temporary employment
312
37
106
169
Gender
Men
2,195
1,368
552
275
Women
1,067
735
129
203
Working time
Full-time
3,198
2,061
659
478
Part-time work (due to disability,
parenthood, etc.)
64
42
22
0
Types of employment contract
Employees covered by collective
bargaining
3,197
2,055
672
470
Employees outside the collective
bargaining system
65
48
9
8
Educational structure
Levels I to IV
281
99
182
Level V
947
684
263
0
Level VI
664
384
75
205
Level VII
1,188
824
146
218
Level VIII
182
112
15
55
A total of 98.2% of Telekom Slovenije employees are on permanent contracts, while that proportion is
84.4% at other Slovenian companies and 64.6% at IPKO. 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 the result of local legislation and the
company’s employment policy. Full-time employees account for the largest proportion (98%) of
employees at the Group level, while part-time workers account for 2% of employees.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
139
Structure of employees at the Telekom Slovenije Group level
A total of 98% of Telekom Slovenije Group employees have an employment contract based on a
collective agreement, which was close to the same proportion in 2021 (98.1%). The remaining 2% of
employees hold contracts outside the collective bargaining system. These are primarily employees in
management positions.
64
Men accounted for 67.3% of all Telekom Slovenije Group employees in 2022, while women accounted
for 32.7%. Men are prevalent amongst employees in Slovenia, while the gender ratio in favour of men
is slightly lower at IPKO (57.5%).
65
Ratios at individual companies vary with regard to activity.
64
GRI 2-30
65
GRI 405-1
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
140
Structure of employees at Telekom Slovenije Group companies
66
Other Telekom Slovenije Group companies that are not presented in the above graph do not have
employees.
Number of new hires and departures in 2022 by age group
67
Telekom Slovenije
Group
Telekom Slovenije
Other companies in
Slovenia
IPKO (Kosovo)
Age group
New hires
Departures
New hires
Departures
New hires
Departures
New hires
Departures
18–30
131
61
62
16
41
27
28
18
31–40
47
61
21
18
21
23
5
20
41–50
47
53
21
31
18
9
8
13
51–60
12
68
9
50
2
16
1
2
61–65
0
18
0
16
0
2
0
0
Total
237
261
113
131
82
77
42
53
The average age of employees at Telekom Slovenije is 46.1 years. The average employee age at
IPKO is 37 years, followed by GVO with an average age of 40.3 years. The highest average employee
age is recorded by TSinpo, at 52.7 years.
Training and HR development
68
Acquiring new skills and strengthening employee competences is crucial, as it is the only way to
develop appropriate business models, the most advanced services and new business opportunities.
Through continuous, systematic training, knowledge management and the transfer of knowledge
between co-workers, we ensure the growth and development of both the Company and its employees.
The training programme offers employees a choice of more than 300 training courses in various fields
and is updated every year with new, fresh content, while our Knowledge Transfer Competence Centre
accelerates the internal knowledge transfer. In 2022, we received the Gold certificate as a TOP
investor in education for our responsible HR management and promotion of employee development,
66
GRI 2-7
67
GRI 401-1
68
GRI 3-3
2,165
462
58
46
89
44
528
3,392
2,119
445
54
46
86
45
489
3,284
2,103
443
57
46
89
46
478
3,262
Telekom
Slovenije
GVO TSmedia Avtenta Soline TSinpo IPKO Telekom
Slovenije
Group
31.12.2020 31.12.2021 31.12.2022
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
141
making us an organisation that stands out as above-average in terms of investment in employee
training.
Employee development and training plans are drawn up every year in the scope of annual
development interviews. To that end, we define the purpose and objectives of training activities in
order to monitor the effectiveness and impacts thereof. We assess the quality and usefulness of
training in part through the measurement of participant satisfaction using electronic questionnaires.
There was a great deal of interest amongst employees for professional content and soft skills.
Key figures regarding employee training
69
Telekom Slovenije Group
Telekom Slovenije
2022
2021
2020
Index
22/21
2022
2021
2020
Index
22/21
Number of participants in
training
2,962
2,985
3,085
99.2
2,172
2,163
2,170
100.4
Number of training hours
88,586
99,660
63,069
88.9
67,646
67,884
54,635
99.6
Proportion of employees
included in training*
90.8%
90.9%
99.9%
99.9
100%
100%
100%
100.0
Number of training hours per
employee
27.2
30.3
18.6
89.8
32.2
32.0
25.2
100.0
* The proportion of employees included in training also includes persons who attended training in 2022 but were no longer
employed by the Telekom Slovenije Group as at 31 December.
The number of training activities organised in 2022 was down by 11% at the Telekom Slovenije Group
level and up slightly at Telekom Slovenije relative to 2021. The number of hours of remote training was
down, while the number of hours of live training was up. Telekom Slovenije organised 27% of training
hours remotely, while 67% of hours were in the form of traditional workshops and 6% hours were
organised as e-courses in the scope of the Znam! learning portal. Internal lecturers conducted 36% of
training hours or 61% of all courses.
Men accounted for 65% and women for 35% of Telekom Slovenije employees included in training,
which corresponds to the ratio of employees by gender. The 41 to 50 age group received the most
training (accounting for 24% of all participants and 25% of all training hours).
Of the total of 88,586 training hours, 63% or 55,932 hours were organised for technicians and sales
staff.
Number of training hours by employee category
70
Employment category
Telekom Slovenije Group
Telekom Slovenije
2022
2021
2020
Index
22/21
2022
2021
2020
Index
22/21
Technology and sales
55,932
62,588
42,096
89.4
46,356
45,484
36,064
101.9
Administration
9,914
9,914
6,843
100.0
9,043
8,831
6,396
102.4
Team leaders
7,875
8,376
6,922
94.0
6,713
7,333
6,321
102.4
Middle management
6,551
9,201
4,545
71.2
4,125
4,416
3,817
91.5
Others
8,314
9,582
2,664
86.8
1,409
1,820
2,037
93.4
Total
88,586
99,660
63,069
88.9
67,646
67,884
54,635
99.6
69
GRI 404-1
70
GRI 404-1
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
142
Structure of training by area
At the Group level, employees received the most training in the areas of occupational health and
safety, and the maintenance and protection of health, followed by the development of services and
products and legislative changes. We also dedicated a great deal of attention to training in the areas
of information security and personal data protection, and the professional development of managers.
Structure and proportion of training by area within the Telekom Slovenije Group
We published 172 e-courses on the Znam! e-training portal, meaning one-fifth of all training at
Telekom Slovenije. The portal, with the latest knowledge, is accessible by all Telekom Slovenije
employees, the employees of TSmedia, Avtenta and TSinpo, and by our authorised agents.
DEVELOPMENT OF EMPLOYEE COMPETENCIES
71
S.M.A.R.T. – an advanced development-training programme
S – self-responsible and simple
M – motivated and wise
A – engaged and authentic
R – serious and committed
T – team player and precise
71
GRI 404-2
Occupational health and safety
22%
Legislation 15%
Product knowledge 11%
Sales 10%
Business skills 9%
Communication
skills 8%
IT and computer
science 6%
ICT 6%
Foreign languages 4%
Management 4%
Other knowledge/skills 3%
Economy 2%
Energy and mechanical
engineering 0%
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
143
S.M.A.R.T. development-training programme
Through the advanced S.M.A.R.T. training and development programme, Telekom Slovenije is
building four key elements in contact with the users of its services: a uniform approach, the raising of
values, the development of competences and team work. Thus, through a consistent and systematic
approach, we are empowering employees who are in contact with the users of our services (advisers,
technicians, sales staff and the dispatch centre), strengthening their competences and thus ensuring
the excellence of the user experience at all of the most important touchpoints.
Part-time studies
We finance the part-time studies of employees and facilitate paid leave to prepare for study
obligations. At the end of 2022, a total of 32 employees had contracts with the Telekom Slovenije
Group to obtain a higher level of education, 23 at Telekom Slovenije and nine at GVO.
Knowledge Transfer Competence Centre
The Knowledge Transfer Competence Centre accelerates the internal transfer of knowledge. The
competence centre is based on four pillars. In the scope of each pillar, we prepare tailored
development and training programmes that help knowledge ambassadors (our internal lecturers)
develop the skills required for the transfer of knowledge, personal development, mutual links and the
exchange of experience. The competence centre trained more than 200 knowledge ambassadors in
2022 in the areas of lecturing skills, the preparation of e-courses, and mentoring and coaching skills.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
144
Knowledge Transfer Competence Centre
Mentoring and intergenerational cooperation
Intergenerational cooperation is an integral element of our mutual relations. We have a mentoring
system in place for that purpose, where older employees transfer their knowledge and experience to
younger employees, and vice versa. In addition to strengthening intergenerational ties, we also enhance
links and cooperation between employees.
We received the MEGA Inspiration 2022 award for our activities in the area of intergenerational
cooperation. The award is part of the ‘We All Win’ project to promote intergenerational cooperation in
the workplace and the coexistence of generations, which is co-financed by the Slovenian government
through the Ministry of Labour, Family, Social Affairs and Equal Opportunities and the European Union
through the European Social Fund.
We employ a single mentoring system to ensure systematic development, and the preservation and
upgrading of key knowledge that the Company possesses. To that end, we keep records of technical
and key knowledge and the persons who possess it, who then transfer that knowledge in the
mentoring process to successors, new employees, employees who change work areas or who return
to work after a prolonged absence, and to secondary school and university students completing their
internship, working via student services and on scholarship. A total of 35 employees were included in
the mentoring process in 2022.
Key and perspective employees
72
Telekom Slovenije’s system of key and perspective employees includes individuals who contribute an
above-average share to the achievement of the Company’s objectives, who have highly developed
competences and who desire further development. This involves a continuous process in which we
develop employee potentials, prepare successors, give them priority in the recruitment process for
more demanding positions, and strive to retain them at the Company, all through planned training.
We drew up individual development plans in 2021 for key and perspective employees for the purpose
of acquiring additional skills and the desired competences.
72
GRI 404-2
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
145
Cycle of identifying key and perspective employees
Employer brand
We laid the foundations of the employer brand in 2019 and, together with employees, established the
employer brand commitment, ‘Co-creating the digital future of Slovenia’, which is supported by four
pillars: development, knowledge, the best and Slovenia. With the help of focus groups and employees,
we verified the fulfilment of the aforementioned commitment and established foundations in 2022.
Employees have noted tangible changes in terms of the development of employees, communication,
training and the transfer of knowledge, and in other key HR systems and practices.
We also strengthen the employer brand through various events, cooperation with schools, faculties
and research institutions, company scholarships, guest lecturers, etc.
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 ICT, multimedia, cloud services, user interfaces, cyber security, etc. Telekom
Slovenije thus facilitates practical training and education for secondary school and university students.
We identify the best as employment candidates: between 2017 and 2022, we employed seven
secondary school and university students who completed their compulsory practical training with us.
We provided practical training and education opportunities to 77 secondary school and university
students in 2022. We awarded company scholarships for the fifth year in a row, including three for the
2022/2023 scholastic year. We had 16 active scholarship holders in 2022 and employed eight of them.
Management of older employees
73
Telekom Slovenije continued to implement measures to strengthen the competences of older
employees, as well as activities covering areas such as the protection of health, ergonomics, the work
environment, working hours, the nature of work, and career and personal development. In contrast to
2021 when the greatest emphasis was placed on raising awareness about the importance of taking
care of one’s own health and creating a healthy lifestyle, we focused on raising awareness about the
importance of intergenerational cooperation and embracing diversity in 2022. In addition to numerous
training events on the aforementioned topics, we used internal communication channels to present the
advantages of such cooperation and the importance of the mutual transfer of knowledge in the form of
73
GRI 404-2
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
146
mentoring. We presented best mentoring practices via the intranet through talks between mentors and
mentorees. Mentoring is a key measure in the management of older employees.
Motivation of employees
The Telekom Slovenije Group has in place a precisely structured bonus system in the form of
monetary and non-monetary bonuses. Those bonuses are allocated in accordance with the collective
agreement and other internal acts.
The basis for collective bonuses is predefined, expected results. We pay a year-end bonus on the
basis of operating results, while we pay a Christmas bonus in the amount of 70% of the average wage
in the Republic of Slovenia. Certain Group companies pay a Christmas bonus based on operating
results.
Individual remuneration depends on an assessment of the achievement of personal objectives
(stimulation), and may be paid to employees twice a year. We introduced quarterly bonuses in 2022
for sales staff with personal sales targets. Non-monetary forms of remuneration derive from our
activities (VALÚ credit notes, gift certificates for Soline, etc.) We also provide employees benefits,
such as additional medical examinations, payments to the second pension pillar, preventive
treatments and flexible working hours.
Full-time and temporary employees enjoy the same benefits, except the payment of voluntary pension
insurance premiums, which new employees in Slovenia 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 (95% of employees), GVO (91% of employees), TSmedia (89% of
employees), Avtenta (81% of employees) and TSinpo (95% of employees).
74
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 (by at least 12.5%;
figure from November 2022). Employees at IPKO also have a higher wage than the minimum
prescribed wage in Kosovo (by 36.4).
75
Cooperation with research institutions
The Telekom Slovenije Group has well-established cooperation with universities, faculties and
secondary schools. We work with them in the scope of regular lectures (as guest lecturers) and at
themed events. We regularly organise meetings for students in Telekom Slovenije’s premises, where
we present work content, best practices and the technologies we use in our work. We also cooperate
with secondary school and university students via compulsory internships and company scholarships,
and provide them assistance in the drafting of their theses.
Telekom Slovenije is the general sponsor of the multimedia
university study programme organised at the University of
Ljubljana’s Faculty of Electrical Engineering. In the area of
employee training and e-training, we work with the
Telecommunications Laboratory at the University of
Ljubljana’s Faculty of Electrical Engineering, actively
cooperate with the School Centre for Postal Services,
Economics and Telecommunications and the Faculty of
Security Sciences at the University of Ljubljana, as its
students are potential candidates for employment in the
area of cyber and information security. We strengthened
cooperation with the University of Ljubljana’s School of
Economics and Business. IPKO facilitates internships for
students from various faculties, such as RIT Kosovo
(formerly American University in Kosovo), Dardania
74
GRI 201-3, 401-2
75
GRI 202-1, 405-2
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
147
College and the University of Prizren, the University of Pristina (Technical Faculty), Riinvest College,
UBT College, etc.
Organisational vitality
The measurement of the organisational vitality index (ORVI), which includes the organisational
climate, and employee satisfaction and commitment, is carried every two years within the Telekom
Slovenije Group. That measurement was carried out by GVO in 2022. The response rate was 71.1%,
a decrease of 15.7 percentage points relative to 2019. The ORVI, which includes responsiveness, the
work environment, systems, operational management, personal views and commitment, was 3.62 and
down by 0.10 compared with 2019.
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 carried out with an emphasis on mutual
cooperation and the promotion of innovativeness and creativity.
Appraisal-development interviews
76
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.
Managing innovation
Telekom Slovenije collects the innovative proposals and ideas of employees
via Brihta, a digital collection site for ideas. 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.
We also receive ideas from employees through the organisation of various
events, such as internal inter-team events (TIMO), Brihtalnice (brainstorming
workshops based on the so-called brainwriting method) and BrihtaLive events
(all-day creative events). With the aim of organising such events, and promoting creative and
innovative thinking, we also set up additional, specific-purpose areas that we named BrihtaPlac.
Employees may also submit proposals for improvements, ideas and innovations at other Group
companies. In 2022, TSinpo organised the Tulec idej (Idea Sleeve) project, in the scope of which the
company invited employees to submit proposals on how its cardboard sleeves can be used.
Cooperation with employee representatives
77
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 12 regular and three correspondence sessions in 2022.
Eight ordinary sessions were held in the Works Council’s current composition, while four were held in
the previous composition. All correspondence sessions were held in the current composition.
Sessions were held in accordance with measures to prevent the spread of COVID-19, at the beginning
of the year in the virtual environment and later live.
Due to the expiration of the previous term of office, members of the Works Council were elected in
April 2022. Telekom Slovenije’s Works Council comprises 17 members, while Dušan Pišek was re-
elected to serve as Chairman of the Works Council in its new composition.
76
GRI 404-3
77
GRI 3-3, 2-29, 402-1
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148
Members of the Company’s Management Board briefed the Works Council regularly in 2022 regarding
operating results, in accordance with the financial calendar. Sessions of the Works Council were also
attended by member of the Management Board and Workers’ Director, Špela Fortin, who reported on
her activities orally and in writing. The Works Council provided continuous information regarding the
implementation of measures and initiatives adopted at its sessions.
Teleworking
If the nature of their work allows it, employees may perform their work remotely up to two days a week.
The possibility of remote work has been very well-received by employees.
Responsibility for employees and activities outside the workplace
At the Telekom Slovenije Group level, we organise various 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.
Employees may join the TSsport sport club, which functions under the auspices of Telekom Slovenije
and facilitates the participation of employees in recreational activities and national Telekom Slovenije
Group championships in various sports. The club provides employees affordable offers for different
branches of sports. During 2022, the club organised championships in skiing, badminton, table tennis,
running, beach volleyball, sailing, golf, nine-pin bowling, standard bowling, shooting, tennis and
basketball. It organised a beginners’ course in golf, a footgolf course and a self-defence course
intended for women and the children of employees. Also available is an online Pilates course.
Telekom Slovenije employees may participate in a free online Pilates course once a week.
Occupational health and safety
78
We implemented measures at the Telekom Slovenije Group level again in 2022 to prevent the spread
of COVID-19, albeit to a lesser extent than two years ago. 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.
We provide employees all of the necessary protective equipment, as well as additional
information and advice in the event of infection or potentially high-risk contacts.
The management of occupational health and safety is in line 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 2022. We took regular measurements of environmental conditions and lighting in the
work environment for all locations where deemed necessary. The process of identifying dangers
78
GRI 3-3, IO3, SDG 8
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
149
associated with safe work was carried out at three levels: via regular occupational safety training,
regular on-site inspections and various project groups.
79
All training, both theoretical and practical, in the area of occupational health and safety was in line with
the requirements of the law. That training is organised in the form of lectures, primarily as e-training.
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 proper use. Major locations and Telekom Slovenije centres are
equipped with semi-automatic defibrillators to provide aid in the event of cardiac arrest.
80
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. At the beginning
of every year, we publish a schedule of additional medical
examinations that employees may sign up for. There were
750 examinations performed last year. TSmedia encourages
employees to be active with a weekly online exercise class.
81
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, its declaration of safety with risk assessments and
through an internal health, safety and quality control system that includes all employees. In 2022, the
company measured microclimatic conditions, defined potential risks in the workplace, and adopted the
necessary measures and recommendations. It also organised training for all employees.
82
Telekom Slovenije employees attending training are actively 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. Occupational health and safety issues are also discussed by the
Company’s Work Council. We 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 employee representatives from various organisational units and an expert in the
aforementioned area. That team monitors the implementation of the health, safety and quality control
programme, and issues recommendations for changes to that programme. Team members 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.
83
Healthcare
84
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
where so stipulated by the risk assessment), while we raise the awareness of employees in Slovenia
about flu vaccinations. IPKO organises regular preventive medical examinations for employees in
accordance with local labour legislation in Kosovo, as well as special training for employees who work
in the field.
79
GRI 403-2
80
GRI 403-5
81
GRI 403-6
82
GRI 403-1, 403-8
83
GRI 403-2, 403-4
84
GRI 403-3, IO3
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
150
Healthcare and workplace injuries in the Telekom Slovenije Group
85
Occupational health and safety
2022
2021
2020
Index
22/21
Number of injuries
35
38
34
92
Number of working days lost
1,637
1,177
1,345
139
Number of working hours lost
12,992
8,935
10,719
145
Number of medical examinations
1,501
1,093
835
137
- preliminary examinations
212
147
114
144
- periodic examinations
1,289
946
721
136
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 (11)
in 2022. They were followed by cuts with working tools and collisions with objects.
Fire safety
In place in all of our facilities are fire safety rules and evacuation and fire plans that are reviewed and
updated to reflect major changes. Fire safety training is carried out as part of occupational safety
training. Fire extinguishers and hydrant networks were inspected and serviced in all buildings in 2022,
while several evacuation drills were conducted. We regularly maintained and serviced active fire safety
systems at facilities throughout Slovenia, and implemented separate fire sectors for the building
located at Cigaletova 15. We recorded one minor fire at Telekom Slovenije in 2022.
Stress management and the prevention of employee burnout
86
Activities aimed at managing stress and preventing burnout are carried out at Telekom Slovenije in the
scope of the Živijo, stres! (Hello, Stress!) project. We continued to organise webinars with various
experts. The main theme of these types of training in 2022 was ‘happiness’, while the content of that
training covered areas such as communication, nutrition, workplace and thus life management, the
building of good relationships and self-esteem, happiness in the workplace, etc. The importance of
stress management was also discussed at regular internal training workshops, while employees were
encouraged to adopt a healthy lifestyle through thematic articles on the intranet (active breaks,
nutrition, etc.). Employees may talk with a psychologist via the special Modri telefon (Wise Telephone),
while a great deal of useful information and advice about a healthy lifestyle is accessible by employees
on a special intranet portal.
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 1,146
employees contributed to the foundation monthly in 2022. Telekom
Slovenije contributed EUR 10,000 and GVO contributed EUR 3,000 to the
foundation at the end of the year. Members of the Company’s
Management Board, Supervisory Board and Works Council also made
one-time donations.
Employees can make monthly donations of EUR 2, EUR 4, EUR 6, EUR
8 or EUR 10 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 44 children in 2022. We also helped three
seriously ill children through one-time donations.
85
GRI 403-9
86
GRI 403-6
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
151
Parental leave
87
The use of parental leave is one of the indicators that are included in the measures of the Socially
Responsible Employer Certificate. Employees with the right to parental leave exercise that right in full.
Fathers also take child care leave in the early child development stage in the form of paternity leave.
The latter has increased in the last year, which indicates that through adopted measures we offer
numerous opportunities to facilitate a work-life balance.
Telekom Slovenije Group
Telekom Slovenije
2022
2021
2020
2022
2021
2020
Number of employees on parental leave
73
91
101
21
26
22
of which: women
54
72
82
17
25
22
men
19
19
19
4
1
0
Employees who returned to work following parental
leave
54
76
84
21
25
22
proportion in %
74
83
83
100
96
100
- of which: women
36
57
65
17
24
22
proportion in %
67
79
79
100
96
100
men
18
19
19
4
1
0
proportion in %
95
100
100
100
100
0
Socially responsible employer
The Socially Responsible Employer Certificate represents our commitment to continue striving to
improve and upgrade activities relating to concern for employees and social responsibility in the future.
That certificate covers the following areas:
• organisational governance (social responsibility, sustainable development,
efficient energy consumption and the environment);
• occupational safety and health (the promotion of the health and safety of
employees and projects in the area of occupational safety and health);
• intergenerational cooperation (HR strategy, management of older staff,
education and training, etc.); and
• achieving work-life balance (measures in the scope of the Family-Friendly
Company Certificate, updated with additional measures).
The results of activities are reflected in the engagement, high level of commitment, personal
satisfaction and high level of loyalty of employees.
Family-friendly company
The Family-Friendly Company Certificate has become part of the Socially Responsible Employer
Certificate. The certificate includes measures and activities that represent elements of the values of
the corporate policy and organisational culture.
Work-life balance is a value to which we dedicate special attention. We support
that balance through various activities (flexible working hours, adapted working
hours during the induction of children into day care, etc.) and flexible forms of
work, such as work from home or work at a different location. We intensively
implement activities relating to the protection and promotion of health. Through
selected measures, we strengthen employee loyalty and create a positive work
environment, which is also recognised by external stakeholders who rank us
amongst the most respected employers. The Company’s values are intertwined
in all adopted measures of the certificate.
87
GRI 401-3
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152
Most respected employer
Telekom Slovenije is proud of the fact that we rank amongst the most respected employers and are
one of the most desirable employers on the Slovenian market. We are recognised as such by both
employees and the external public, as we are the recipient of various certificates and awards.
In 2022, we were recognised as the most respected employer in the telecommunications and network
sector in research organised by MojeDelo.com, and ranked amongst the 10 most respected employers
in Slovenia. We also ranked amongst the top employers in the Employer Appeal survey.
Following an in-depth assessment of HR practices, the independent international organisation Top
Employers Institute awarded Telekom Slovenije the internationally renowned Top Employer certificate
for the second year in a row. That certificate represents the global professional standard in recognising
excellence in corporate people practices, and is an exceptionally important recognition for companies
that receive it.
Communication with employees
A great deal of attention is given to communication with employees to ensure that they have at their
disposal current information, and that they are continuously briefed on the latest trends in the portfolio
and on developments at the level of the Company and Group. We use various channels to
communicate with employees. The main communication tool at Telekom Slovenije is the intranet
which, in addition to providing information about developments at the Company and Group, facilitates
the safe transfer of internal documents, such as manuals, rules, instructions, forms, etc. It also
provides different options for the use of multimedia content, while we include employees to a large
extent in the creation of that content. To that end, we communicate with employees via Microsoft
Teams, digital screens that are placed at various locations, email and electronic newsletters, and at
different events such as workshops, webinars, training with internal and external experts, councils and
miscellaneous internal events. We organised Telekom Slovenije Group Day and a New Year’s party in
2022. Every Group company has in place their own method of communication with employees. All
activities for employees are linked by the #connected platform.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
153
Employment and training of disabled persons
88
The Telekom Slovenije Group facilitates the continued regular employment of employees with work
limitations due to disabilities. Group companies have a total of 97 employees of various disability
levels (3% of all employees). Of those persons, 45.4% are full-time
workers. 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 are therefore entitled to compensation in the
amount of 20% of the minimum monthly wage for each disabled employee
over the prescribed quota. IPKO has two employees with disabilities, but there is no remuneration
system as described above at the national level in Kosovo.
TSinpo – responsibility to society and the environment
TSinpo 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 had 46 employees in 2022, 26 of whom are disabled workers. In cooperation with
external authorised organisations and with the help of its own mentoring team, TSinpo trains
employees with work limitations for work adapted to their needs. In this way, it increases the
employment of disabled persons in the wider social community and opens opportunities to advance
their careers.
The company produces and markets cardboard sleeves and packaging under its own brand. All
products are made from 100% recycled cardboard. Evens caps are made from recycled LDPE,
through which the company is reducing its carbon footprint. TSinpo provides Telekom Slovenije
various support services, such as the control, refurbishing and distribution of telecommunications
terminal equipment, the technical preparation of telecommunication works, the compilation of sales
and other packages, the 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. The company is also present on the market with documentary material scanning and
various packaging services.
88
GRI 405-1, SDG 1
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
154
8.3. Supply chain
89
Procurement function
We develop long-term relationships with suppliers through correct and open communication, the
fulfilment of agreements, the reliability of payments and the inclusion of suppliers in the process. To
that end, we comply with legal and ethical principles.
The procurement policies of all Group companies are coordinated and standardised, and include
strategic policies and principles for a transparent procurement process. The procurement function is
centralised, and thus facilitates the economic, efficient and transparent use of funds. For the easier
management of procurement processes with specific content, purchases of specific goods and
services are carried out separately from central procurement by experts from the ordering area. 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.
The 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 2,964 suppliers from 40
countries. A total of 97% of suppliers are from the European Union.
Total turnover between Telekom Slovenije and Slovenian subsidiaries and their business partners
amounted to more than EUR 627 million in 2022, including VAT. That amount also includes
sponsorships and donations.
Conditions on the global market were difficult and unpredictable in 2022. The result is a lack of certain
commodities and materials on the market, and rising prices of energy, commodities, equipment and
materials. We ensured undisturbed deliveries through continuous communication with suppliers and
the regular monitoring of the potential impact on supply. We called on suppliers to further optimise
costs, while we searched for replacements and new and alternative suppliers. In order to mitigate the
risk of supply failures, we introduced additional supply sources (multiple suppliers) where reasonable
and feasible. With the exception of a few minor delays that did not affect operations, we did not
encounter any major problems in supply.
We inform key suppliers about sustainability commitments and goals, and thus encourage them to
take a step together on the path to sustainability.
89
GRI 2-6, 3-3
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Sustainable aspects of procurement
90
90
GRI 204-1
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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, and establishing more sustainable and responsible logistics.
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.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
157
8.4. Environmental impact
91
The Telekom Slovenije Group operates in a sector where the environmental impact in terms of energy
consumption is highest. We therefore develop business processes with the aim of improving energy
efficiency. We raise awareness about the importance of this area amongst employees through
training, while we also encourage users to manage energy and the environment responsibly.
We consistently fulfil legal requirements in the procurement of products and services, and in the
development of the most advanced ICT services and solutions. We systematically reduce our impacts
through the use of certified quality management systems. We monitor our progress using measurable
indicators.
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. We ensure
sustainable operations and encourage the cooperation of all stakeholders. We acknowledge initiatives
and respond to them continuously.
Key policies:
• regular monitoring of the use of resources, in particular energy consumption and associated costs;
• the compliance of strategic and energy-related objectives with operations and development;
• monitoring and compliance with the requirements of Slovenian and European law; and
• the methodical prevention and reduction of impacts on society, the environment and the world we
live in.
Soline has a significant impact on wetlands and coastal biodiversity. For this reason, its activities and
impacts are reported in more detail at the end of this section.
ENERGY
92
Telekom Slovenije has in place an energy management system (EMS)
that is subject to independent external assessments (according to the
ISO 50001 standard) through which we successfully reduce total energy
consumption. We also meet conditions for the performance of energy
audits by our own experts. With more than 190 completed energy
audits, we are among the leaders in Slovenia, allowing us to save
around EUR 40 thousand a year. We performed internal energy audits again in 2022 for all buildings
for which the validity of the previous audit expired.
Energy costs and consumption at Telekom Slovenije Group and Telekom Slovenije
Telekom Slovenije Group
Telekom Slovenije
2022
2021
2020
Index
22/21
2022
2021
2020
Index
22/21
Consumption of electricity
(in GWh)
90.0
90.6
89.9
99
71.7
72.6
73.5
99
Electricity costs (in EUR
thousand)
14,028
9,025
9,306
155
12,327
7,462
7,728
165
Fuel consumption for
vehicle fleet (in litres)
1,407,166
1,403,024
1,356,278
100
782,396
791,053
788,544
99
Cost of fuel for vehicle
fleet (in EUR thousand)
1,970
1,566
1,274
126
1,117
898
755
124
Cost of fuel for heating (in
EUR thousand)
834
805
669
104
802
761
634
105
Production of own
electricity from solar
power plants (in kWh)
262,401
226,422
230,360
116
238,821
204,512
207,432
117
Source: SAP; energy management system.
91
GRI 3-3, SDG 12.2
92
GRI 302-1, 302-4, SDG 7, SASB: TC-TL-130a.1
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
158
Electricity
Electricity is our most prevalent energy product in terms of quantity and costs We reduced electricity
consumption at the Group level and at Telekom Slovenije by around 1% in 2022 relative to the
previous year. Total costs were up by 55% at the Group level and by 65% at Telekom Slovenije due to
higher electricity prices. 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 third 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 2,450 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.
Achievement of energy objectives
Our main energy objective to reduce total electricity consumption is integrated into the personal goals
of the entire responsible organisational unit, while the energy management system itself is likewise
integrated into regular work processes. We have also set other environmental goals: to improve the
energy efficiency of the vehicle fleet, to reduce noise and emissions into the atmosphere by
modernising technological devices, etc.
We met strategic and annual objectives relating to efficient energy consumption again in 2022. We
reduced electricity consumption in the fixed segment of the network by optimising equipment and
premises at functional locations. Despite effort to reduce consumption in connection with existing
services, energy costs will be higher in 2023 on account of significantly higher energy prices and in
part due to the accelerated increase in radio network capacities. We intend to increase the number of
own solar power plants considerably by 2026, as well as the quantity of energy produced by that
source.
We reduced electricity consumption in Slovenia by discontinuing the use of 3G technology on 30
September 2022 and replacing it in full with more energy-efficient 4G and 5G technologies. 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.
IPKO adopted several measures to reduce electricity consumption, including the installation of more
efficient air-conditioning devices and the replacement of old lighting with LED systems at ten branch
offices.
Electromagnetic radiation (EMR)
93
EMR measurements are carried to coincide with the expansion and upgrading of the fourth- and fifth-
generation mobile network. In Slovenia, those measurements are carried out by authorised
institutions. Telekom Slovenije carried out 141 EMR measurements in 2022 (323 in 2021), with 5G
technology accounting for 78 of those measurements. The results indicated that, even in the worst
case, measured values in human-accessible areas were more than four times lower than the strict
thresholds valid in Slovenia, and more than 10 times lower than the values set out in the ICNIRP’s
guidelines and the EU’s recommendations. Average exposure was significantly lower and amounted to
just a few percent of the thresholds for level I radiation protection areas in accordance with the Decree
on Electromagnetic Radiation in the Natural and Living Environment. IPKO did not carry out
measurements during the last two years.
All reports on EMR measurements are submitted to the Slovenian Environment Agency, where data
regarding environmental impacts are stored and accessible by the general public. We received one
request in 2022 from the Environment and Spatial Planning Inspectorate for documentation regarding
EMR at the Ljubljana–Bežigrad TLK base station. That documentation was delivered by the prescribed
deadlines, with no comments forthcoming from the aforementioned inspectorate.
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
93
GRI PA8, GRI 2-23, 2-24, 2-27
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
159
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: E-card – Institute for Non-Ionising Radiation (INIS).
Vehicle fleet
94
We are continuing to expand the network of smart charging stations to meet the rising number of
electric vehicles, and are ensuring electric vehicle charging at all of our major locations. We encourage
employees tomake use of the electric vehicle sharing services provided by external suppliers.
Telekom Slovenije has a total of twelve charging stations at four locations, and will expand the network
in 2023 with four new charging stations. GVO has ten internal and three public electric vehicle
charging stations. There is also a charging station at the entrance to the Sečovlje Salina Nature Park.
One of the criteria when purchasing new vehicles is energy efficiency When making deliveries,
suppliers are committed to respecting best practices in the area of energy and environmental
management, and in related areas (Euro 6 emission standard).
The Telekom Slovenije Group had a total of 1,037 vehicles in 2022, including 24 electric vehicles (one
of which is a train with two wagons for transporting 50 passengers around the Sečovlje Salina Nature
Park) and 10 hybrid vehicles. Telekom Slovenije had a total of 627 vehicles, including seven electric
vehicles. The Group reduced fuel consumption by 12% relative to 2021, while Telekom Slovenije
reduced consumption by 9%. The table below illustrates the number of vehicles with internal
combustion engines (diesel and petrol) and total fuel consumption.
Number of vehicles with internal combustion engines and fuel consumption within the Telekom
Slovenije Group and at Telekom Slovenije, in litres
Telekom Slovenije Group
Telekom Slovenije
2022
2021
2020
Index
2022/2021
2022
2021
2020
Index
2022/2021
No. of vehicles
1,013
1,058
1,037
96
620
646
658
96
Fuel consumption in
litres (diesel)
1,078,621
1,060,413
1,013,079
101
526,606
529,220
519,741
99.5
Fuel consumption in
litres (petrol)
332,915
342,611
343,199
97
255,790
261,833
268,803
97.7
Carbon footprint
95
We performed an internal assessment of Telekom Slovenije’s carbon footprint in 2022 according to the
methodology set out in the international Greenhouse Gas Protocol: A Corporate Accounting and
Reporting Standard. The definition of organisational boundaries includes the parent company and all of
its organisational units at several locations in Slovenia, and excludes Slovenian and foreign subsidiaries
and associates. We included in the calculation the emission scopes, categories or activities presented
below:
• 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).
• Scope 2: Indirect emissions from consumed electricity and heat.
The most significant source of greenhouse gas emissions (GHG) is electricity consumption, which
accounts for 90% of Scope 1 and 2 emissions.
94
GRI 302-1
95
GRI 3-3, 305-1, 305-2, 305-3
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160
Illustration of Telekom Slovenije’s carbon footprint by individual scope category
GHG emissions in tonnes of
CO
2eq
Index
Emission category
2022
2021
22/21
Scope 1 (direct emissions)
2,618
2,916
90
– S1-1: Stationary emissions (heating)
359
371
97
– S1-2: Mobile emissions (work vehicles)
1,996
2,033
98
– S1-4: Fugitive emissions from HVAC and refrigeration
systems (cooling technology)
263
512
51
Total Scope 2 (indirect emissions)
48,119
38,138
126
– S2-1: Indirect emissions from electricity consumption
(location-based method)
3,209
5,567
58
– S2-2: Indirect emission from electricity consumption (market-
based method)
42,854
30,180
142
– S2-3: Indirect emissions from heat consumption (location-
based method)
537
643
84
– S2-4: Indirect emissions from heat consumption (market-
based method)
1,518
1,749
87
Total Scope 1 and 2
50,737
41,055
124
Carbon footprint (Scope 1 and 2) in CO
2eq
per employee
24.13
19.37
125
In the market-based method, we used the latest available emission factors set at the level of electricity
supplier with regard to the structure of sources, as calculated by the electricity supplier. The most recent
known and published supplier emission factors are for 2021. Published emission factors for identified
suppliers are used as market emission factors, while the location-based emission factor published in
Annex III to the Rules on the Methods for Determining Energy Savings (Official Gazette of the Republic
of Slovenia, No. 57/21) is used for remaining electricity consumption. The same approach is applied to
energy for heating.
The total value according to the market- and location-based methods is included in the total value of
Scope 1 and 2 emissions and the carbon footprint indicator per employee. The market-based method is
used for the majority of electricity consumed. Electricity consumption at co-locations is not taken into
account as emissions of the organisation, as it includes the consumption of other location users. The
organisation has no influence over emissions due to electricity consumption at other operators. We treat
them as ‘out of scope’ emissions. Emissions that arise from the consumption of energy supplied to
subsidiaries are treated as Scope 3 (as category S3-13 Leased assets).
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
161
We included the following in non-mandatory reporting under Scope 3 (other indirect emissions): the
consumption of drinking water, office paper, printed materials and other packaging, losses in internal
electricity consumption, forwarded waste, business travel, employee commuting, the leasing of electric
vehicles, work from home and assets leased to others (heating, electricity and drinking water in leased
premises, and the consumption of electricity by CPE equipment at users).
S1-1: Stationary
emissions 0.71%
S1-2: Mobile
emissions 3.93%
S1-4: Fugitive
emissions from
HVAC and
refrigeration
systems 0.52%
S2-1: Indirect
emission from
electricity
consumption
(location-based)
6.33%
S2-2: Indirect
emission from
electricity
consumption
(market-based)
84.46%
S2-3: Indirect
emission from
heat consumption
(location-based)
1.06%
S2-4: Indirect
emission from
heat consumption
(market-based)
2.99%
Proportion of Scope 1 and 2 emissions
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
162
Segments included in Scope 3 categories
GHG emissions in
tonnes of CO
2eq
Index
Emission category
Activity
2022
2021
2022/2021
S3-1: Purchased goods
and services
Consumption of drinking water, office paper,
printed materials, and other packaging and
paper
225
10
2,366
S3-3: Energy
consumption not included
in Scope 1 and 2
Own electricity consumption
1,077
1,100
98
S3-5: Waste
management
Waste forwarded to collection centres, waste
water
143
205
70
S3-6: Business travel
Business travel (car and air transport)
26
11
237
S3-7: Employee
commuting
Employee commuting (cars)
1,662
1,400
119
S3-8: Leased assets
Electric vehicles under lease and work from
home
250
378
66
S3-13: Leased assets
Heating, electricity and drinking water in
premises leased to others, and the
consumption of electricity by CPE equipment at
users
22,383
23,220
96
Total Scope 3 (other
indirect emissions)
25,765
28,344
91
In 2022, we began the additional collection of data for the calculation of certain Scope 3 emission
categories. We reassessed values for 2021 where we were able to obtain more reliable data. The
values for 2021 are thus adjusted.
Real estate management
We actively manage and invest in real estate with the aim of optimising business potential and
increasing recoverable value. To that end, we improve utilisation, and ensure rational use and
increased functionality.
Waste management
96
We are introducing circular economy principles in waste management, when a used product or
materials become raw materials for reuse or processing, resulting in the smallest possible amount of
waste. Electronic equipment returned by users is carefully inspected, cleaned and prepared for reuse
at TSinpo. We thus extend the useful life of equipment, increase cost-effectiveness and reduce the
volume of electronic waste.
All completely worn-out or defective equipment is forwarded to authorised and certified partners
included in the waste management scheme for further processing. In accordance with the law, those
partners ensure that equipment is reused as raw material for new products to the greatest extent
possible, while unused parts are appropriately destroyed with the smallest possible impact (footprint)
on the environment.
Telekom Slovenije has a certified environment management system (in accordance with the ISO
14001 standard), 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, hazardous waste (waste electronic equipment, and waste batteries and metals), municipal
waste and other separately collected fractions.
The Telekom Slovenije Group forwarded a total of 6,710 tonnes of waste in 2022, an increase of 17%
relative to the previous year (due to an increase in construction and mixed municipal waste). Telekom
96
GRI 3-3, 306-1, 306-2, 306-3
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163
Slovenije forwarded 3,850 tonnes of waste, a decrease of 26% relative to the previous year (due to
significantly less construction waste, which accounts for 87% of all waste at the Company level). The
majority of forwarded waste is recycled or reused. Earth excavated during the construction of the
network is used as material to cover cable trenches. All waste electrical and electronic equipment is
dismantled, resulting in reusable plastic (18%) and metal (78%), while only around 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. Waste for energy recovery is only forwarded
to licenced collectors that hold the relevant environmental licences and that comply with the highest
environmental standards in accordance with European legislation.
Users can also dispose of waste packaging from purchased products, used mobile phones, tablets,
computers, etc. at points of sale.
Quantities of separated waste within the Telekom Slovenije Group and at Telekom Slovenije
Type of waste (in tonnes)*
Telekom Slovenije Group
Telekom Slovenije
2022
2021
2020
Ind.
22/21
2022
2021
2020
Ind.
22/21
Waste electrical and
electronic equipment, and
waste batteries and metals
278.3
343.2
302.7
81
278
343
302
81
Waste packaging
98
145
150
67
96
144
150
67
Mixed municipal waste
748
604
3,307
124
141
75
100
188
Construction waste
5,586
4,657
8,353
120
3,335
4,651
8,347
72
TOTAL
6,710
5,750
12,113
117
3,850
5,213
8,899
74
* Certain Group companies collect data in m
3
; we used a conversion factor of 1 m
3
= 177 kg to convert figures into
tonnes of waste.
Water management
Water (sea water) is crucial for Soline, but does not represent an important environmental impact at
Telekom Slovenije and other Group companies, as they are not major consumers of water and do not
need water to perform their core activities. Due to the scattering of locations throughout Slovenia (only
a few locations are in water protection zones) and various municipal ordinances on the provision of
municipal services, data regarding the consumption of water are monitored via calculations, and we
cannot currently disclose water 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.
We encourage employees to drink tap water where possible. We thus discontinued the use of water
coolers with plastic bottles in 2021.
Paperless operations
97
A total of 48.93% of invoices were received in electronic form in 2022, an increase
relative to 2021. Users who have given us their consent only receive invoices for our
services in electronic form. We also encourage users to receive electronic invoices
for the purpose of electronic banking.
Telekom Slovenije consumed 13 tonnes of office paper in 2022. There is no comparison with the
previous year available, as we previously monitored consumption in euros, which is no longer realistic
due to major shifts in prices in 2022.
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.
97
GRI TA2, SDG 12, 306-2
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164
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 five-
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.
Responsibility for the natural environment
Careful preservation of 700-year-old natural and cultural heritage
Soline manages the state-protected Sečovlje Salina Nature Park (SSNP) under a
concession agreement concluded with the Republic of Slovenia. Key administrative
objectives were set out in the plan for managing the Sečovlje Salina Nature Park for the
period 2011 to 2021, which was adopted by the Slovenian government. A new
management proposal for 2022 and 2023 is in the process of being approved.
The most important objectives of managing the SSNP 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 is approved in advance by the department responsible for the protection of nature
and cultural heritage.
98
Soline achieves its management objectives through the following activities:
• maintenance of the saltpan ecosystem;
• preservation of traditional salt production processes and centuries-old technological processes;
and
• continuation of salt production, which is an integral part of the historical 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. These locations are thus 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.
99
In the scope of the climate fund, we continued the renovation of 1,986 meters of embankments in the
Lera salt production area in 2022, as well as five sluice gates for controlling seawater in the
Fontanigge area. We also began to implement traffic-calming measures in the Lera and Fontanigge
areas, which we will complete by the end of March 2023.
100
We continued to replace diesel vehicles with electric vehicles in 2022. The new electric Peugeot e-
Traveller is intended for the transport of employees, the renters of berths, the elderly and disabled
persons in the SSNP. We are pursuing the goal of becoming the first protected area in Slovenia with a
zero-carbon footprint. With the implementation of the CARS-OUT! project, we discontinued access to
the park by motor vehicles in 2017 and ensured environmentally acceptable visits to the park using
electric vehicles.
In 2022, we invested EUR 280,000 in measures to manage the effects of climate change on the
saltpan ecosystem in the Sečovlje and Strunjan saltpans and other wetlands. We are thus achieving
98
GRI 3-3
99
GRI 304-1
100
GRI 304-3
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
165
objectives that contribute significantly to the EU’s environmental objectives of climate change
mitigation and adaptation.
The saltpan ecosystem is specific to the coastal wetlands. Salt production does not produce any
environmentally harmful by-products, as the entire process relies on traditional, 700-year-old
processes. 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 2022.
There are no endangered animal or plant species from the IUCN’s global list of endangered species
present in the SSNP.
101
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.
In August 2022, the very rare red-necked phalarope (Phalaropus lobatus) was spotted for the first time in the
Fontanigge area and in Slovenia.
Two insect hotels were set up in the Fontanigge area in the scope of planned activities to protect wild
pollinators in accordance with the Slovenian government’s World Bee Day Action Plan.
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. The SSNP recorded 50,732 visitors in 2022.
The majority of people visited the Lera area, while there were 5,269 visitors to the Fontanigge area.
The sensitive natural environment in which the park is situated requires the continuous improvement
of environmental and energy efficiency. The consumption of electricity has been reduced in recent
years through changes in the regime for managing cooling and heating devices in visitor buildings.
Work vehicles are being gradually replaced by electric vehicles. Soline was not fined for failure to
101
GRI 304-4
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
166
comply with environmental laws and regulations.
102
Data regarding electricity and fuel consumption in the table are already included in data for the Group
as a whole. They are disclosed here separately in order to comprehensively present environmental
impacts in the SSNP. Fuel consumption was down relative to the previous year, while electricity
consumption was up slightly. The consumption of natural gas, which we use for the additional heating
of pool water, was up due to unfavourable conditions for the operations 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. We used 2,200 litres of sea water in 2022 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.
103
Waste is consistently separated and disposed of by the competent municipal department.
Consumption of energy and natural resources at Soline
104
2022
2021
2020
Index
22/21
Consumption of natural gas (in m
3
)
2,992
2,497
4,006
120
Consumption of electricity (in MWh)
418
403
401
103
Consumption of fuel (in litres)
31,494
35,111
25,970
90
Consumption of sanitary water in m
3
2,279
1,820
1,582
125
Consumption of sea water in m
3
173,300
220,050
184,050
79
- salt production
171,100
218,050
182,000
78
- Thalasso Spa Lepa Vida
2,200
2,000
2,050
110
102
GRI 2-27
103
GRI 3-3, 303-1, 303-2
104
GRI 303-3
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
167
8.4.1. Disclosures of indicators for economic activities that are included in the
2022 EU Taxonomy
In accordance with the regulatory framework, which comprises Regulation (EU) 2020/852 of the
European Parliament and of the Council of 18 June 2020 on the establishment of a framework to
facilitate sustainable investment, Commission Delegated Regulation (EU) 2021/2139 of 4 June 2021
supplementing the Taxonomy Regulation and enclosures thereto and Commission Delegated
Regulation (EU) 2021/2178 of 6 July 2021 supplementing the Taxonomy Regulation, and in
accordance with guidelines issued by the Securities Market Agency, the Telekom Slovenije Group is
obliged to publish key performance indicators for 2022 in connection with services linked to economic
activities that are deemed sustainable.
The majority of activities necessary for the provision of telecommunication services are not currently
included in the application of Annexes I and II to Commission Delegated Regulation (EU) 2021/2139,
which means that EU Taxonomy reporting requirements do not currently apply to the majority of the
Telekom Slovenije Group’s activities.
In order to identify aligned activities, the Telekom Slovenije Group carried out a comprehensive review
of telecommunication and other service activities and, based on the available reporting attributes,
determined which activities can make a substantial contribution to the achievement of the
environmental goals defined in the aforementioned regulation:
(a) climate change mitigation, and
(b) climate change adaptation.
Only the activities of ‘Data centres’ and ‘Development and use of ICT solutions to monitor and
mitigate climate change’ are included in the taxonomy for the area of telecommunications and the
broader ICT sector. For 2022, we included the activities ‘Construction’ and ‘Real estate
transactions’ (installation, maintenance and repair of electric vehicle charging stations in buildings
and parking areas, and the installation, maintenance and repair of technologies for energy from
renewable sources) in Taxonomy-eligible activities.
Because the other activities of Telekom Slovenije Group companies are not subject to reporting in the
scope of the EU Taxonomy, the proportion of turnover and investments accounted for by those
activities are relatively small (less than 1%), which is also evident from the data in the tables below. In
addition to Taxonomy-eligible activities, we also assessed the proportions of Taxonomy-aligned
activities in 2022. According to currently assessed values (without taking into account technical
criteria), the aforementioned proportions are very small, but are nevertheless disclosed on account of
reporting obligations.
We included under activity 8.1 ‘Data processing, hosting and related activities’ the activity of data
centres, which is defined as the storage, manipulation, management, movement, control, display,
switching, interchange, transmission or processing of data through data centres, including edge
computing. This includes data centre equipment and services intended for business users. The activity
falls under the NACE category J63.11. We defined it as ‘Data centres’.
We included under activity 8.2 ‘Data-driven solutions for GHG emissions reductions’ the activity of the
development and/or use of ICT solutions primarily in connection with Internet of Things (IoT) solutions.
Those solutions are predominantly aimed at the provision of data and analytics for decision making by
the public and private sectors, which in turn facilitates a reduction in greenhouse gas emissions and
thus the carbon footprint. IoT-related services include solutions for calming traffic, environmental and
remote metering, solutions for agriculture, digitalisation of the vehicle fleet, implementation in the
scope of smart cities, etc. The activity falls under the NACE categories J61, J62 and J63.11. We
defined it as ‘Development and use of ICT solutions to monitor and mitigate climate change’.
We included the e-mobility activity for charging stations and the digitalisation of the vehicle fleet in
activity 7.4 Installation, maintenance and repair of electric vehicle charging stations in buildings (and
associated parking areas). The activity falls under the NACE categories F42, F43, M71, C16, C17,
C22, C23, C25, C27 and C28. We defined it as ‘E-mobility – charging stations and digital vehicle fleet’.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
168
We included electricity production using photovoltaics, i.e. solar power plants installed on the roofs of
business premises, in the activity 7.6 Installation, maintenance and repair of technologies for energy
from renewable sources. The activity falls under the NACE categories F42, F43, M71, C16, C17, C22,
C23, C25, C27 and C28. We defined it as ‘Energy – electricity production using photovoltaics’.
Indicators are calculated based on the definitions in Annex II to Commission Delegated Regulation
(EU) 2021/2178 – Key performance indicators of non-financial enterprises.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
169
Proportion of turnover from products and services associated with Taxonomy-aligned economic activities – disclosures of the Telekom Slovenije Group
Substantial
contribution
criteria
Economic activities
Codes
Absolute
turnover (in
EUR)
Proportion of
turnover (in
%)
Climate change
mitigation (in
%)
Taxo
nom
y-
align
ed
prop
ortio
n of
turno
ver
for
2022
Taxo
nom
y-
align
ed
prop
ortio
n of
turno
ver
for
2021
A. Taxonomy-eligible activities
A.1 Environmentally sustainable activities (Taxonomy-aligned)
7.6 Energy – electricity production using photovoltaics
F42, F43, M71, C16, C17,
C22, C23, C25, C27 and
C28
48,145
0.01%
0.01%
0.01
%
0.01
%
Turnover of environmentally sustainable activities
(Taxonomy-aligned) (A.1)
48,145
0.01%
0.01%
0.01
%
0.01
%
A.2 Taxonomy-eligible but not environmentally sustainable activities (not
Taxonomy-aligned activities)
7.6 Energy – electricity production using photovoltaics
F42, F43, M71, C16, C17,
C22, C23, C25, C27 and
C28
48,145
0.01%
8.1. Data centres
J63.11
5,700,501
0.87%
8.2 Development and use of ICT solutions to monitor and
mitigate climate change
J61, J62, J63.11
959,732
0.15%
Turnover of Taxonomy-eligible but not environmentally
sustainable activities (not Taxonomy-aligned activities)
(A.2)
6,708,378
1.03%
Total (A.1 + A.2)
6,708,378
1.03%
0.01
%
0.01
%
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
170
B. Taxonomy-non-eligible activities
Turnover of Taxonomy-non-eligible activities (B)
645,412,622
98.97%
Total turnover (A + B)
105
652,121,000
100.00%
Proportion of operating expenses (OPEX), excluding amortisation and depreciation and other operating expenses in connection with taxonomy-aligned economic
activities – disclosures of the Telekom Slovenije Group
Substantial
contribution
criteria
Economic activities
Codes
Absolute
OPEX (in
EUR)
Proportion
of OPEX (in
%)
Climate change
mitigation (in
%)
Taxo
nomy
-
align
ed
prop
ortio
n of
OPE
X for
2022
Taxo
nomy
-
align
ed
prop
ortio
n of
OPE
X for
2021
A. Taxonomy-eligible activities
A.1 Environmentally sustainable activities (Taxonomy-aligned)
7.4 E-mobility – charging stations and digital vehicle fleet
F42, F43, M71, C16, C17,
C22, C23, C25, C27 and
C28
20,791
0.00%
-
0.00
%
0.01
%
7.6 Energy – electricity production using photovoltaics
F42, F43, M71, C16, C17,
C22, C23, C25, C27 and
C28
6,202
0.00%
0.00%
0.00
%
0.00
%
OPEX of environmentally sustainable activities
(Taxonomy-aligned) (A.1)
26,993
0.00%
0.00%
0.00
%
0.01
%
105
In order to calculate the proportion of turnover, we took into account the amount of turnover from activities included in the EU taxonomy. The denominator takes into account
operating revenues (sales revenue) at the Telekom Slovenije Group level (Annual report of the Telekom Slovenije Group and Telekom Slovenije, section 9.2, Note 7 – Sales
revenue).
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
171
A.2 Taxonomy-eligible but not environmentally sustainable activities (not
Taxonomy-aligned activities)
7.4 E-mobility – charging stations and digital vehicle fleet
F42, F43, M71, C16, C17,
C22, C23, C25, C27 and
C28
20,791
0.00%
7.6 Energy – electricity production using photovoltaics
F42, F43, M71, C16, C17,
C22, C23, C25, C27 and
C28
6,202
0.00%
8.1. Data centres
J63.11
3,365,503
0.77%
8.2 Development and use of ICT solutions to monitor and
mitigate climate change
J61, J62, J63.11
881,496
0.20%
OPEX of Taxonomy-eligible but not environmentally
sustainable activities (not Taxonomy-aligned activities)
(A.2)
4,273,992
0.97%
Total (A.1 + A.2)
4,273,992
0.97%
0.00
%
0.01
%
B. Taxonomy-non-eligible activities
OPEX of taxonomy-non-eligible activities (B)
431,238,001
99.03%
Total OPEX (A + B)
106
435,485,000
100.00%
106
In order to calculate the proportion of operating expenditure (OPEX), we took into account the amount of operating costs from activities included in the EU taxonomy. The
denominator takes into account total operating costs at the Telekom Slovenije Group level. Operating costs include: the historical cost of goods sold, costs of material and
energy, costs of services and labour costs. Amortisation and depreciations costs are not included (Annual report of the Telekom Slovenije Group and Telekom Slovenije,
section 9.2, Note 9 – Costs of goods sold, Costs of materials, energy and services and Note 10 – Labour costs).
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
172
Proportion of capital expenditure (CAPEX) from products or services associated with Taxonomy-aligned economic activities – disclosures of the Telekom
Slovenije Group
Substantial
contribution
criteria
Economic activities
Codes
CAPEX (in
EUR)
Proportion of
CAPEX (in %)
Climate change
mitigation (in %)
Taxo
nomy
-
align
ed
propo
rtion
of
CAPE
X for
2022
Taxo
nomy
-
align
ed
propo
rtion
of
CAPE
X for
2021
A. Taxonomy-eligible activities
A.1 Environmentally sustainable activities (Taxonomy-aligned)
7.4 E-mobility – charging stations and digital vehicle
fleet
F42, F43, M71, C16, C17,
C22, C23, C25, C27 and C28
17,424
0.01%
0.01%
0.01%
0.02%
7.6 Energy – electricity production using photovoltaics
F42, F43, M71, C16, C17,
C22, C23, C25, C27 and C28
202,036
0.12%
0.12%
0.12%
-
CAPEX from environmentally sustainable
activities (taxonomy-aligned) (A.1)
219,461
0.13%
0.13%
0.13%
0.02%
A.2 Taxonomy-eligible but not environmentally sustainable activities (not
Taxonomy-aligned activities)
7.4 E-mobility – charging stations and digital vehicle
fleet
F42, F43, M71, C16, C17,
C22, C23, C25, C27 and C28
17,424
0.01%
7.6 Energy – electricity production using photovoltaics
F42, F43, M71, C16, C17,
C22, C23, C25, C27 and C28
202,036
0.12%
8.1. Data centres
J63.11
937,669
0.56%
8.2 Development and use of ICT solutions to monitor
and mitigate climate change
J61, J62, J63.11
291,471
0.17%
CAPEX from activities that are taxonomy eligible
but are not environmentally sustainable (A.2)
1,448,601
0.86%
Total (A.1 + A.2)
1,448,601
0.86%
0.13%
0.02%
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2022
173
B. Taxonomy-non-eligible activities
CAPEX from taxonomy-non-eligible activities
166,665,860
99.14%
Total CAPEX (A + B)
107
167,895,000
100.00%
The following approach was taken into account for taxonomy alignment:
- There are thresholds in place for assessing the substantial contribution to alignment for activities 8.1 and 8.2. The Company has not provided the
necessary data for verification, so it is assumed that the threshold has not been met and that substantial contribution cannot be assessed.
- There are no thresholds for activities 7.4 and 7.6. They are therefore deemed to be Taxonomy-aligned in full.
107
In order to calculate the proportion of capital expenditure (CAPEX), we took into account the amount of capital expenditure from activities included in the EU taxonomy. The
denominator takes into account total capital expenditure at the Telekom Slovenije Group level. CAPEX includes the purchase of intangible assets and property, plant and
equipment, and the increase in assets under lease and other investments (Annual report of the Telekom Slovenije Group and Telekom Slovenije, section 7.5 Investments in
fixed assets).
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
174
9. ACCOUNTING REPORT OF THE TELEKOM SLOVENIJE GROUP
AND TELEKOM SLOVENIJE, D.D. FOR 2022
9.1 Financial statements of the Telekom Slovenije Group and Telekom Slovenije
..................................................................................................................................175
9.2 Notes to the consolidated financial statements of the Telekom Slovenije Group
and separate financial statements of the Company Telekom Slovenije ..........183
1. Reporting entity ......................................................................................................183
2. Basis for preparation .............................................................................................183
3. Summary of significant accounting policies .......................................................187
4. Fair value determination ........................................................................................200
5. Composition of the Telekom Slovenije Group ....................................................201
6. Segment reporting .................................................................................................204
7. Sales revenue .........................................................................................................205
8. Other operating income .........................................................................................207
9. Cost of goods sold, costs of materials, energy and services ...........................207
10. Labour costs ...........................................................................................................208
11. Depreciation/Amortisation ....................................................................................209
12. Finance income and finance expenses................................................................210
13. Other operating expenses .....................................................................................210
14. Income tax, deferred tax assets and tax liabilities .............................................211
15. Earnings per share .................................................................................................213
16. Intangible assets ....................................................................................................214
17. Property, plant and equipment .............................................................................220
18. Right-of-use assets ................................................................................................224
19. Investments in subsidiaries ..................................................................................227
20. Other investments ..................................................................................................228
21. Contract assets ......................................................................................................229
22. Deferred costs ........................................................................................................230
23. Investment property ...............................................................................................230
24. Assets held for sale ...............................................................................................231
25. Inventories ..............................................................................................................231
26. Trade and other receivables .................................................................................232
27. Contract assets ......................................................................................................233
28. Deferred costs ........................................................................................................233
29. Cash and cash equivalents ...................................................................................234
30. Equity and reserves ...............................................................................................234
31. Contract liabilities ..................................................................................................236
32. Provisions ...............................................................................................................236
33. Other liabilities .......................................................................................................240
34. Loans and borrowings ...........................................................................................240
35. Lease liabilities .......................................................................................................241
36. Other financial liabilities ........................................................................................242
37. Trade payables .......................................................................................................242
38. Contract liabilities ..................................................................................................243
39. Accrued liabilities ...................................................................................................243
40. Book and fair values ..............................................................................................244
41. Contingent liabilities ..............................................................................................247
42. Related party transactions ....................................................................................248
43. Auditor’s fee ...........................................................................................................256
44. Categories of financial instruments .....................................................................256
45. Financial instruments and financial risk management ......................................256
46. General authorisation and the right to use radio frequency and numbers......262
47. Events after the reporting date .............................................................................263
9.3 Independent auditor’s report for the Telekom Slovenije Group and Telekom
Slovenije ..................................................................................................................264
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
175
9.1 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 2022
I-XII 2021
I-XII 2022
I-XII 2021
Sales revenue
7
Other operating income
8
Cost of goods sold
9
-86,548
-93,961
-94,836
-100,989
Costs of materials and energy
9
-22,576
-16,498
-15,788
-10,613
Costs of services
9
-208,503
-204,561
-195,762
-193,544
Labour costs
10
-117,858
-111,271
-98,446
-92,688
Depreciation/Amortisation
11
-166,090
-169,056
-138,881
-142,175
Other operating expenses
13
-7,016
-6,507
-6,914
-7,444
Total operating expenses
-608,591
-601,854
-550,627
-547,453
Operating profit
Finance income*
12
Finance expenses*
12
-8,442
-8,617
-8,608
-8,746
Profit before tax
Income tax
14
-5,020
-4,705
-2,349
-3,553
Deferred taxes
14
-2,899
-2,482
-2,705
-2,153
Net profit for the period
Earnings per share
Basic in EUR
15
Adjusted in EUR
15
*The Company Telekom Slovenije’s finance income includes dividends received and received interest on loans
granted to subsidiaries. The Company Telekom Slovenije’s finance expenses include the effects of impairment of
investments in the subsidiaries TSmedia and Soline. More details in Note 12.
Notes on pages 183 to 264 are an integral part of these consolidated financial statements.
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
176
The consolidated and separate statement of other comprehensive income
Telekom Slovenije
Group
The Company Telekom
Slovenije
in EUR thousand
Note
I-XII 2022
I-XII 2021
I-XII 2022
I-XII 2021
Net profit for the period
Other comprehensive income that may
be reclassified subsequently to the
statement of profit or loss
Translation reserves
30
Change in fair value of hedging
instruments
30
Deferred tax
14
-53
-15
-53
-15
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 remeasurements of defined
benefit obligation
30
Net loss in equity instruments at fair
value through other comprehensive
income
-160
-160
Change in fair value of investments in
equity instruments measured at fair value
through other comprehensive income
30
-258
-257
Deferred tax
14
-86
-86
Change in fair value of investments in
equity instruments measured at fair
value through other comprehensive
income
-176
-175
Other comprehensive income for the
period after tax
Total comprehensive income for the
period
Notes on pages 183 to 264 are an integral part of these consolidated financial statements.
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
177
The consolidated and separate balance sheet
Telekom Slovenije
Group
The Company Telekom
Slovenije
in EUR thousand
Note
31 Dec
2022
31 Dec
2021
31 Dec 2022
31 Dec 2021
ASSETS
Intangible assets
16
Property, plant and equipment
17
Right-of-use assets
18
Investments in subsidiaries
19
Other investments
20
Contract assets
21
Other receivables
26
Deferred costs
22
Investment property
23
Deferred tax assets
14
Total non-current assets
Assets held for sale
24
Inventories
25
Trade and other receivables
26
Income tax receivables
14
Contract assets
27
Deferred costs
28
Investments
20
Cash and cash equivalents
29
Total current assets
Total assets
EQUITY AND LIABILITIES
Share capital
30
Share premium
30
Profit reserves
30
Legal reserves
30
Reserves for treasury shares and
interests
30
Treasury shares and interests
30
-4,065
-3,671
-4,065
-3,671
Statutory reserves
30
Other profit reserves
30
Retained earnings
30
Retained earnings from previous
periods
Profit or loss for the period
Fair value reserve
30
-188
-66
-188
-66
Reserves for actuarial gains/losses
30
-2,139
-1,863
Translation reserves
30
Total equity
Contract liabilities
31
Provisions
32
Other liabilities
33
Accrued liabilities
Loans and borrowings
34
Lease liabilities
35
Other financial liabilities
36
Deferred tax liabilities
14
Total non-current liabilities
Trade payables
37
Income tax payable
14
Loans and borrowings
34
Lease liabilities
35
Other financial liabilities
36
Contract liabilities
38
Accrued liabilities
39
Total current liabilities
Total liabilities
Total equity and liabilities
Notes on pages 183 to 264 are an integral part of these consolidated financial statements.
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
178
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 January 2022
-3,671
-26
-40
-2,139
Net profit or loss for the period
Other comprehensive income for
the period
-336
Total comprehensive income for
the period
-336
Dividends paid
-29,244
-29,244
Purchase of own shares
-394
-394
Forming treasury shares reserves
-394
Transactions with owners
-394
-29,638
-29,638
Transfer of profit or loss from
previous period to retained
earnings
-37,888
Other movements in equity
-367
Changes in equity
-37,888
-367
Other
-10
-9
Balance as at 31 Dec 2022
-4,065
-202
Notes on pages 183 to 264 are an integral part of these consolidated financial statements.
More details in Note 30.
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
179
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 January
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
-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
-3,671
-26
-40
-2,139
Notes on pages 183 to 264 are an integral part of these consolidated financial statements.
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
180
Separate 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
January 2022
-3,671
-27
-39
-1,863
Net profit or loss for the
period
Other comprehensive
income for the period
-335
Total comprehensive
income for the period
-335
Dividends paid
-29,244
-29,244
Purchase of own
shares
-394
-394
Forming treasury
shares reserves
-394
Transactions with
owners
-394
-29,638
-29,638
Transfer of profit or
loss from previous
period to retained
earnings
-34,371
Other movements in
equity
-359
Changes in equity
-34,371
-359
Other
-1
-1
Balance as at 31 Dec
2022
-4,065
-203
Notes on pages 183 to 264 are an integral part of these consolidated financial statements.
More details in Note 30.
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
181
Separate 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 January 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
-29,275
-29,275
Write-downs of unpaid dividends
from previous years
Transactions with owners
-29,215
-29,215
Transfer of profit or loss from
previous period to retained
earnings
-24,174
Changes in equity
-24,174
Other
Balance as at 31 Dec 2021
-3,671
-27
-39
-1,863
Notes on pages 183 to 264 are an integral part of these consolidated financial statements.
The consolidated and separate cash flow statement
Telekom Slovenije
Group
The Company
Telekom Slovenije
in EUR thousand
Note
I-XII
2022
I-XII
2021
I-XII 2022
I-XII 2021
Cash flows from operating activities
Net profit for the period
Adjustments for:
Depreciation/Amortisation
11
Impairment and write-offs of property, plant and equipment,
and intangible assets
Gain/loss on disposal of property, plant and equipment
-1,150
-1,245
-1,370
-1,079
Impairment and write-off of inventories
13
Net impairment of receivables and contract assets
13
Adjustment for provisions
-1,005
Finance income
-3,343
-1,996
-4,724
-15,225
Finance expenses
Income tax expense
Cash flows from operating activities prior to changes
in working capital and provisions
Change in inventories
-2,121
-1,331
Change in trade and other receivables
-7,176
-6,712
Change in accrued and deferred asset items and contract
assets
-3,232
-2,446
Change in provisions
-417
-464
Change in trade and other payables
-17,714
-7,332
-25,511
-582
Change in accrued and deferred liability items and contract
liabilities
-14,012
-14,823
Income tax paid
-7,743
-691
-6,694
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
Receipts from the sale of investments
Proceeds from repayment of loans and deposits
Disbursements from investing activities
-153,198
-199,217
-111,154
-185,521
Disbursements from property, plant and equipment
-96,548
-94,693
-69,923
-82,148
Disbursements from intangible assets
-56,550
-104,274
-34,441
-100,673
Investments in subsidiaries and associated companies
-1,000
-1,500
Disbursements for loans and deposits issued
-100
-250
-5,790
-1,200
Net cash used in investing activities
-150,795
-193,157
-91,449
-152,966
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
-86,231
-213,990
-87,153
-224,708
Disbursements from treasury shares buyback
-394
-394
Disbursements for approval of borrowings and issue of
bonds
-646
-646
Maturity of bonds issued
-100,000
-100,000
Repayment of lease liabilities - principal
-9,158
-12,593
-8,723
-11,655
Repayment of current borrowings
-27,500
-1,400
-39,100
Repayment of non-current borrowings
-40,220
-35,495
-40,220
-35,495
Disbursements for interest
-7,215
-8,481
-7,172
-8,537
Dividends paid
-29,244
-29,275
-29,244
-29,275
Net cash used in financing activities
-26,231
-17,985
-27,153
-28,708
Net increase/decrease in cash and cash equivalents
Opening balance of cash
Effect of exchange rate changes on cash and cash
equivalents
Closing balance of cash
Notes on pages 183 to 264 are an integral part of these consolidated financial statements.
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
183
9.2 Notes to the consolidated financial statements of the Telekom Slovenije
Group and separate financial statements of the Company 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 company’s shares are listed on the Prime Market of the Ljubljana Stock Exchange.
The Company’s ultimate beneficial owner is the Republic of Slovenia , which holds a 62.54% share in
the Company Telekom Slovenije (Note 30).
The attached consolidated and separate financial statements are prepared for the Telekom Slovenije
Group and the company Telekom Slovenije for 2022, with comparative statements for 2021.
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 14 February 2023.
PricewaterhouseCoopers (PwC) d.o.o. audited and expressed an unmodified opinion on the 2022 and
2021 financial statements
b. 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 Company and the Telekom Slovenije Group. All financial information is
presented in Euros and rounded to thousand unless otherwise defined.
c. 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 Group’s and the Company's
operations are not of seasonal nature.
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184
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, and those used in the preparation of the financial
statements will change 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.
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. The working group mainly consists of technical
experts who assess the useful lives based on previous work experience and the lifetime of the assets,
monitor technological development and changes in the business activity.
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
used. The estimated useful lives of assets are presented in Notes 3.c, 3.d in 3.e.
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 so, the asset’s recoverable amount is ascertained. 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 and the
Company obtained a certified business appraiser and carried out a valuation on 30 November 2022
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:
- intangible assets and goodwill – Note 3.c and Note 16,
- property, plant and equipment – Note 3.d and Note 17.
Investments in subsidiaries
For impairment of investments in subsidiaries, the Group checks indicators of impairment particularly
for companies whose investment significantly (over 20%) exceeds the Company's share capital and
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. The recoverable
amount equals fair value less the costs of sale or value in use, whichever is higher. Cash generating
units (CGU) at Group level are individual group companies. For 2022, based on checking for signs of
impairment, the Group opted to assess the recoverable amount for its subsidiaries TSmedia, TSinpo,
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
185
Ipko, Soline, Siol Zagreb, Siol Priština and Siol Sarajevo. The recoverable amounts of individual
companies were assessed by a certified business appraiser.
Details of establishing recoverable amounts are described in Note 3.f. and Note 19. Investments in
subsidiaries.
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 Group and the Company assess the need for
impairment for borrowings 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
detailed in Notes 3. f, 26 and 45.
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
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
regarding the formation of deferred tax assets and liabilities is available in Notes 3. q and 14.
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
Notes 3. l and 32.
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 2022 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
Standards and 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,
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
186
are effective for the current reporting period:
Property, plant and equipment: Proceeds before intended use – Amendments to IFRS 16
Leases
The amendment prohibits the company from deducting from the cost of an item of property, plant and
equipment any proceeds from the sale of items that were produced when the asset was brought to the
location and was not yet ready for its intended use as intended by management. The proceeds from
selling such items, together with the costs of producing them, must now be recognised in profit or loss.
This amendment did not affect the Group’s consolidated financial statements or the Company’s
statements, as there were no sales of such items produced with property, plant and equipment that
were available for use on or after the beginning of the first reporting period.
Onerous contracts – Cost of fulfilling a contract – Amendments to IFRS 37
The amendment to IAS 37 clarifies the meaning of ‘costs to fulfil a contract’. The amendment explains
that the direct cost of fulfilling a contract comprises the incremental costs of fulfilling that contract; and
an allocation of other costs that relate directly to fulfilling. The amendment also clarifies that, before a
separate provision for an onerous contract is established, an entity recognises any impairment loss
that has occurred on assets used in fulfilling the contract, rather than on assets dedicated to that
contract.
This amendment did not affect the Group’s consolidated financial statements or the Company’s
statements, as the Group and the Company did not have onerous contracts.
References to the Conceptual Framework – Amendments to IFRS 3
IFRS 3 was amended to refer to the 2018 Conceptual Framework for Financial Reporting, in order to
determine what constitutes an asset or a liability in a business combination. Prior to the amendment,
IFRS 3 referred to the 2001 Conceptual Framework for Financial Reporting. In addition, a new
exception in IFRS 3 was added for liabilities and contingent liabilities. The exception specifies that, for
some types of liabilities and contingent liabilities, an entity applying IFRS 3 should instead refer to IAS
37 or IFRIC 21, rather than the 2018 Conceptual Framework. Without this new exception, an entity
would have recognised some liabilities in a business combination that it would not recognise under
IAS 37. Therefore, immediately after the acquisition, the entity would have had to derecognise such
liabilities and recognise a gain that did not depict an economic gain. It was also clarified that the
acquirer should not recognise contingent assets, as defined in IAS 37, at the acquisition date.
This amendment did not affect the Group’s consolidated financial statements or the Company’s
statements, as there were no business combinations.
IFRS 9 Financial Instruments – Fees in the 10% test for derecognition of financial liabilities
The amendment to IFRS 9 addresses which fees should be included in the 10% test for derecognition
of financial liabilities. Costs or fees could be paid to either third parties or the lender. Under the
amendment, costs or fees paid to third parties will not be included in the 10% test.
This amendment did not affect the Group’s and the Company's consolidated financial statements and
companies, as there were no changes in the Group’s and the Company’s financial instruments in the
period and companies.
IFRS 1 First-time Adoption of International Financial Reporting Standards – A subsidiary first
applies IFRS
The amendment allows a subsidiary that elects to use article D16(a) of IFRS 1 to measure cumulative
translation differences using the amounts reported in the parent company’s consolidated financial
statements based on the date of transition of the parent company to IFRS if no adjustments were
made for consolidation processes and for the effects of a business combination in which the parent
company acquired the subsidiary. This amendment also applies to an associated company or joint
venture that decides to apply article D16.(a) of IFRS 1.
These amendments did not affect the Group’s consolidated financial statements, as no subsidiary
applied IFRS for the first time.
Covid-19-Related Rent Concessions – Amendments to IFRS 16 (issued on 31 March 2021 and
effective for annual periods beginning on or after 1 April 2021). In May 2020 an amendment to
IFRS 16 was issued that provided an optional practical expedient for lessees from assessing whether
a rent concession related to covid-19, resulting in a reduction in lease payments due on or before 30
June 2021, was a lease modification. An amendment issued on 31 March 2021 extended the date of
the practical expedient from 30 June 2021 to 30 June 2022.
The Group and the Company did not make significant covid-19-related rent concessions in 2022.
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
187
Amendments to other accounting standards that are not binding for the Group and the Company, are
not relevant for the Company, or will not impact the financial statements, are therefore not disclosed.
Standards and amendments to the existing standards effective from 1 January 2023 on
Amendments to IAS 1 and IFRS Practice Statement 2: Disclosure of Accounting policies
(issued on 12 February 2021 and effective for annual periods beginning on or after 1 January
2023). IAS 1 was amended to require companies to disclose their material accounting policy
information rather than their significant accounting policies. The amendment provided the definition of
material accounting policy information. The amendment also clarified that accounting policy
information is expected to be material if, without it, the users of the financial statements would be
unable to understand other material information in the financial statements. The amendment provided
illustrative examples of accounting policy information that is likely to be considered material to the
entity’s financial statements. Further, the amendment to IAS 1 clarified that immaterial accounting
policy information need not be disclosed. However, if it is disclosed, it should not obscure material
accounting policy information. To support this amendment, IFRS Practice Statement 2, ‘Making
Materiality Judgements’ was also amended to provide guidance on how to apply the concept of
materiality to accounting policy disclosures.
Amendments to IAS 8: Definition of Accounting Estimates (issued on 12 February 2021 and
effective for annual periods beginning on or after 1 January 2023). The amendment to IAS 8
clarified how companies should distinguish changes in accounting policies from changes in accounting
estimates.
Deferred tax related to assets and liabilities arising from a single transaction – Amendments to
IAS 12 (issued on 7 May 2021 and effective for annual periods beginning on or after 1 January
2023); The amendments to IAS 12 specify how to account for deferred tax on transactions such as
leases and decommissioning obligations. In specified circumstances, entities are exempt from
recognising deferred tax when they recognise assets or liabilities for the first time. Previously, there
had been some uncertainty about whether the exemption applied to transactions such as leases and
decommissioning obligations – transactions for which both an asset and a liability are recognised. The
amendments clarify that the exemption does not apply and that entities are required to recognise
deferred tax on such transactions. The amendments require companies to recognise deferred tax on
transactions that, on initial recognition, give rise to equal amounts of taxable and deductible temporary
differences.
The Group and the Company have not adopted early any other standard, clarification or amendment
that has been issued but is not yet valid.
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 2022. 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
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
188
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 keeps an interest in the previous subsidiary, this interest is
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 and property, plant and equipment
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
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
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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.
Estimated useful lives of groups of intangible assets for 2022 and 2021
Groups of intangible assets
Useful lives in years
– concessions
13 to 20
– trademarks
10
– licences
1 to 7
– programme rights – TV content
1 to 5
– 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
13 and 20 years - Note 46.
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 and 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 and the Company 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 monitor 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 so, the asset’s recoverable amount is ascertained. 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. The need for impairment of goodwill, along with the calculation of the recoverable amount, 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.
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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 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.
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.
Estimated useful lives of groups of property, plant and equipment in 2022 and 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 up to 12.5
– other equipment
1 to 15
Items of property, plant and equipment under construction are recognised at their cost formed thus far.
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 property, plant and equipment 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
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means of the discount rate before income taxes.
Impairment of property, plant and 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.
d. Amortisation and depreciation
Amortisation of intangible assets is accounted on a straight-line basis over their estimated useful
lives and begins when assets are available for use.
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. 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.
e. Leases
The Group and the Company as the lessee
Upon signing the lease contract, the Group and the Company assess 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 Group and the Company have not used exemptions envisaged by the standard for
low-value lease contracts and for leases expiring earlier than 12 months from 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.
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
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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.
The Group and the Company as the lessor
The Telekom Slovenije Group and the Company Telekom Slovenije classified all leases under
operating leases, as the lease does not involve transferring all significant risks and benefits connected
to the ownership of the asset which 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 and the Company act 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 and the Company.
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f. Financial instruments
Financial assets
A financial asset is recognised when the Group or the Company become a party to contractual
provisions of the financial instrument.
When a financial asset is recognised by the Group or the Company 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, or
– 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 and the
Company irrevocably decide 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 and the Company 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.
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.
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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 and the Company use 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 credit risk has been increased 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 collectively for operating
receivables and individually for other financial assets.
If, on the reporting date, the credit risk for said financial instrument has not significantly increased
since initial recognition, the Group and the Company measure impairment loss for the relevant
financial instrument as an amount that is equivalent to expected credit losses over a 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 impairment loss to always be measured as
an amount that is equivalent to expected credit losses in the entire duration.
In 2022, 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
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 decide to present
subsequent changes in fair value under other comprehensive income.
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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.
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
operating expenses”, “impairment of intangible assets and property, plant and equipment” (Note 13).
The Group and the Company periodically check whether the asset meets the criteria for being
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classified as held for sale. If the asset no longer meets these criteria, the Group and the Company
reclassify it back as an item of property, plant and equipment. This type of assets is 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,
– 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
Deferred costs represent prepaid costs that are deferred and 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). They are mainly
prepaid costs of system and license maintenance.
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 and 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
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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 32.
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 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 benefits 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 32.
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 the strategic business plan and the dynamics
of employment-related changes (changed number of staff) is known on the balance-sheet date.
m. Trade payables
Non-current trade payables primarily include programme rights and other payables arising from
operating activities.
Among current trade payables, trade payables and other trade payables are disclosed at fair value
upon initial recognition. Subsequently, they are stated at amortised cost.
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,
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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 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
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 they are 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 additional services mainly include the income financial services (VALÚ Moneta),
eHealth, Big data, and insurance.
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.
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
199
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
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 have transferred to a
customer, if this right is conditional on something other than only 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.
Customer loyalty program
With the loyalty program, the Group and the Company encourage customers to purchase goods and
services. By joining the loyalty program and by purchasing goods or services, the customer is
assigned a credit that can be redeemed as a benefit when purchasing goods or services. With each
euro of payment, the buyer is rewarded with 1 point, which is worth 1 cent (100 points = 1 euro). The
points are redeenabke one year from the date of purchase (until the end of the month in which it was
obtained one year earlier). After this period, the credit expires and revenue 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 -
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
200
Accounting for Government Grants and Disclosure of Government Assistance, the Group and the
Company 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 and the Company become entitled to the dividend.
Exchange rate differences are disclosed in the net amount.
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
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 2022 and 31 December 2021, statement or profit or loss for 2022, and
additional information necessary to make adjustments of cash inflows and outflows.
4. Fair value determination
In view of the accounting policies and itemisation, 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 40.
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
201
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 other investments is
determined based on an appraisal conducted by a certified business appraiser or on the basis of an
internally prepared appraisal model. The impacts of appraisals are described in Note 20.
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
108
As at the reporting date, the Telekom Slovenije Group comprises the controlling company Telekom
Slovenije and the following subsidiaries:
108
GRI GS 102-45
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
202
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
2022
2021
2022
2021
2022
2021
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%
28,119
24,629
3,090
4,931
2
Avtenta, napredne
poslovne rešitve,
d.o.o.
Stegne 19, Ljubljana
Slovenia
system integrator
19%
100%
100%
100%
2,917
3,296
431
354
3
TSmedia, medijske
vsebine in storitve,
d.o.o.
Cigaletova 15, Ljubljana
Slovenia
multimedia and internet
content
19%
100%
100%
100%
298
342
-117
31
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%
896
1,207
-1,355
-265
5
TSinpo storitveno in
invalidsko podjetje,
d.o.o.
Litostrojska cesta 58 A
Slovenia
paper and cardboard tubes
19%
100%
100%
100%
125
57
34
19
6
Optic-Tel, d.o.o.
Cigaletova 10, Ljubljana
Slovenia
telecommunication services
19%
100%
100%
100%
5,989
5,282
707
145
7
Infratel, d.o.o.
Cigaletova 10, Ljubljana
Slovenia
telecommunication services
19%
100%
100%
100%
5,122
4,995
127
14
8
Institution Ustanova
Srčni Sklad
Cigaletova 10, Ljubljana
Slovenia
humanitarian organisation
19%
100%
100%
100%
21
17
4
-6
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
203
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
2022
2021
2022
2021
2022
2021
ABROAD
9
IPKO
Telecommunications
LLC
Lagija Ulpiana, Rruga
"Zija Shemsiu", nr 34,
Prishtina
Kosovo
telecommunication services
10%
100%
100%
100%
29,784
14,862
14,922
11,867
10
SIOL, d.o.o., Zagreb
Margaretska 3, Zagreb
Croatia
telecommunication services
20%
100%
100%
100%
818
862
-30
18
11
SiOL d.o.o.,
Sarajevo
Fra Anđela Zvizdovića
1, Sarajevo
Bosnia and
Herzegovina
telecommunication services
10%
100%
100%
100%
2,041
1,746
295
-16
12
SIOL, d.o.o.,
Podgorica
Džordža Vašingtona
108/36A, The Capital
Plaza, Podgorica
Montenegro
telecommunication services
9%
100%
100%
100%
2,731
2,776
111
81
13
SIOL, d.o.o., Skopje
Str. Naum Naumovski
borce no.50/2-12,
Skopje - Centar
North
Macedonia
telecommunication services
10%
100%
100%
100%
1,515
1,443
76
75
14
SIOL DOO
Beograd-Palilula
Dvadesetsedmog Marta
11, Beograd Palilula
Serbia
telecommunication services
15%
100%
100%
100%
467
437
9
1
15
GVO
Telecommunikation
GmbH
Daimlerstr. 3, Stadtlohn,
Germany
building and maintenance
works on
telecommunication
networks
15%
100%
100%
100%
4
25
-22
-1
16
SIOL, d.o.o.
Prishtina
Pejton, Str. Mujo
Ulqinaku 5/1, 10000
Prishtina
Kosovo
telecommunication services
10%
100%
100%
100%
374
264
110
83
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
204
Changes in the composition of the Group
There were no changes in the Group composition in 2022. In 2021, a decision was adopted to start the process
of winding up and liquidating the company GVO Telecommunikation 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.
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.
Segment reporting
in EUR thousand
Slovenia
Other countries
Eliminations and
adjustments*
Total
I–XII
2022
I–XII
2021
I–XII
2022
I–XII
2021
I–XII
2022
I–XII
2021
I–XII
2022
I–XII
2021
External sales
578,200
580,610
73,921
67,637
652,121
648,247
Inter-segment sales
92,585
74,810
9,050
7,165
-101,635
-81,975
0
0
Total segment revenue
670,785
655,420
82,971
74,802
-101,635
-81,975
652,121
648,247
Other income
4,886
4,471
1,946
832
6,832
5,303
Cost of goods and material sold
-84,014
-92,090
-2,534
-1,871
-86,548
-93,961
Costs of materials and energy
-20,349
-14,600
-2,227
-1,898
-22,576
-16,498
Costs of services
-187,881
-185,238
-20,622
-19,323
-208,503
-204,561
Labour costs
-111,182
-104,925
-6,676
-6,346
-117,858
-111,271
Depreciation/Amortisation
-140,061
-143,649
-26,029
-25,407
-166,090
-169,056
Other operating expenses
-6,147
-5,292
-869
-1,215
-7,016
-6,507
Total operating expenses
-549,634
-545,794
-58,957
-56,060
-608,591
-601,854
Operating profit per segment
126,037
114,097
25,960
19,574
-101,635
-81,975
50,362
51,696
Finance income
3,505
1,996
Finance expenses
-8,442
-8,617
Profit before tax
45,425
45,075
Income tax
-5,020
-4,705
Deferred taxes
-2,899
-2,482
Net profit for the period
37,506
37,888
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
205
Other data by segment
Slovenia
Other countries
Eliminations and
adjustments*
Total
31 Dec 2022
31 Dec 2021
31 Dec 2022
31 Dec 2021
31 Dec 2022
31 Dec 2021
31 Dec 2022
31 Dec 2021
Segment assets
1,314,368
1,307,526
138,163
122,128
-177,193
-179,315
1,275,338
1,250,339
Carrying amount of goodwill
3,718
3,718
0
0
0
0
3,718
3,718
Investments in intangible assets
35,062
100,948
21,488
3,326
0
0
56,550
104,274
Investments in property, plant
and equipment
86,495
86,884
11,497
10,671
0
0
97,992
97,555
Segment liabilities
664,662
655,461
100,423
99,713
-101,424
-105,266
663,661
649,908
*The amount of mutual relations between companies which is excluded from the consolidated financial statements.
Segment revenue
in EUR thousand
Slovenia
Other countries
Total
I–XII
2022
I–XII
2021
I–XII
2022
I–XII
2021
I–XII
2022
I–XII
2021
Mobile services on end-customer market
206,773
210,416
48,123
41,577
254,896
251,993
Fixed-line telephone services on end-customer market
190,679
193,442
21,056
22,521
211,735
215,963
- of which IT services
33,083
32,310
312
204
33,395
32,514
Additional services
4,310
7,090
0
0
4,310
7,090
Wholesale market
149,837
143,842
4,742
3,539
154,579
147,381
Other revenue and merchandise
26,601
25,820
0
0
26,601
25,820
Total sales revenue
578,200
580,610
73,921
67,637
652,121
648,247
in EUR thousand
Slovenia
Other countries
Total
I–XII 2022
I–XII 2021
I–XII 2022
I–XII 2021
I–XII 2022
I–XII 2021
Revenue from services rendered
488,156
484,884
71,542
66,309
559,698
551,193
Revenue from the sale of goods
90,044
95,726
2,379
1,328
92,423
97,054
Total sales revenue
578,200
580,610
73,921
67,637
652,121
648,247
7. Sales revenue
Breakdown of sales revenue by service groups
Telekom Slovenije Group
The Company Telekom
Slovenije
in EUR thousand
I–XII 2022
I–XII 2021
I–XII 2022
I–XII 2021
Mobile services on end-customer market
254,896
251,993
207,043
210,592
Fixed-line telephone services on end-customer market
211,735
215,963
189,890
192,985
- of which IT services
33,395
32,514
32,134
31,397
Additional services
4,310
7,090
4,322
7,091
Wholesale market
154,579
147,381
152,344
144,912
Other revenue and merchandise
26,601
25,820
22,287
22,050
Total sales revenue
652,121
648,247
575,886
577,630
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
206
Telekom Slovenije Group
The Company Telekom Slovenije
in EUR thousand
I–XII 2022
I–XII 2021
I–XII 2022
I–XII 2021
Revenue from services rendered
559,697
551,193
480,176
476,905
Revenue from the sale of goods
92,424
97,054
95,710
100,725
Total sales revenue
652,121
648,247
575,886
577,630
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 they expect 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 rendered,
but not billed, on the reporting date.
Management expects that 77 % of the transaction price, allocated to unfulfilled obligations as at 31 December
2021, will be recognised as revenue in the amount of EUR 64,271 thousand in the next reporting period. The
remaining 23 %, i.e. EUR 19,360 thousand, will be recognised in 2024 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 2022, the Group and the Company recognised EUR 4,211 thousand in revenue (in 2021: EUR 4,691
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 652.1 million in 2022, which is EUR
3,874 more than in 2021.
In the mobile services on end-customer market, revenue has increased mostly due to the higher number of
subscribers and prepaid subscribers in Kosovo, which is the result of intensive activities to acquire new users.
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 traditional connections, as well as due
to lower revenue from the sale of licenses and IT goods; consequently, the costs of subcontractors and the cost
of the goods sold are also lower.
Additional sources of revenue include revenue from financial services, energy services, eHealth, and insurance.
We are recording growth in all the mentioned segments, with the exception of energy services. In 2022, revenues
were lower due to the termination of the supply of electricity to end users.
Revenue on the wholesale market is higher than the revenue achieved in the comparative period in 2021,
primarily because of increased revenue from international call services in Kosovo and increased revenue from
domestic wholesale in Slovenia
Other revenue and merchandise increased compared to 2021 due to higher revenue generated by the
subsidiaries on the market.
Revenue from leases
The Telekom Slovenije Group generated EUR 10,659 thousand of revenue from leases in 2022 and EUR 9,698
thousand in 2021.
The company Telekom Slovenije generated EUR 11,673 thousand of revenue from leases in 2022 and EUR
10,492 thousand in 2021.
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
207
Lease maturity analysis – non-discounted leases which will be received in the period
in EUR thousand
Telekom Slovenije Group
The Company Telekom
Slovenije
Maturity
2023
2022
2023
2022
- up to 1 year
7,623
11,051
8,529
11,862
- between 1 and 2 years
7,460
6,428
8,366
7,165
- between 2 and 3 years
7,336
6,252
7,716
6,989
- between 3 and 4 years
6,746
6,111
7,126
6,295
- between 4 and 5 years
10,709
5,520
11,144
5,704
- over 5 years
31,642
32,211
33,319
32,577
8. Other operating income
Telekom Slovenije
Group
The Company Telekom
Slovenije
in EUR thousand
I–XII 2022
I–XII 2021
I–XII 2022
I–XII 2021
Government grants and other aids
1,634
1,722
720
371
Gains on disposal of property, plant and equipment
1,150
2,234
1,331
2,053
Revaluation other income
20
46
2
8
Revenue from write-off of liabilities from contracts with customers
29
19
29
19
Revenue from humanitarian foundation
54
52
0
0
Other income
3,945
1,230
1,143
970
Total other operating income
6,832
5,303
3,225
3,421
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:
- reimbursement of compensation for short-term absence from work due to covid-19 for up to 3 days, at
the expense of the employer, was used by the following companies: Telekom Slovenije, GVO, Avtenta,
and TSmedia, in the total amount of EUR 9 thousand.
- reimbursement of salaries compensation when an employee did not perform work due to force majeure
was used by the following companies: Telekom Slovenije, GVO, Avtenta, TSmedia, and Soline, in the
total amount of EUR 10 thousand.
- reimbursement of compensation for the quarantine period was used by the following companies:
Telekom Slovenije, GVO, TSinpo, and Soline, in the total amount of EUR 23 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 2022, the cost of goods sold of
the Telekom Slovenije Group and the company Telekom Slovenije totalled EUR 86,548 thousand (in 2021:
EUR 93,961 thousand) and EUR 94,836 thousand (in 2021: EUR 100,989 thousand). The cost decrease in the
Company and the Group in 2022 is the result of the Company’s decision to stop supplying electricity to end
users from 1 January 2022.
Costs of materials and energy
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
208
Telekom Slovenije Group
The Company Telekom
Slovenije
in EUR thousand
I–XII 2022
I–XII 2021
I–XII 2022
I–XII 2021
Costs of material
5,251
4,860
1,536
1,491
Costs of energy
17,325
11,638
14,252
9,122
Total costs of materials and energy
22,576
16,498
15,788
10,613
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
The Company Telekom
Slovenije
in EUR thousand
I–XII 2022
I–XII 2021
I–XII 2022
I–XII 2021
Telecommunications services
107,783
106,696
106,200
105,174
Costs of leased lines, networks and platforms
4,942
5,322
7,783
7,978
Multimedia contents
10,484
8,976
9,849
8,944
Costs of subcontractors
26,671
22,393
19,794
18,053
Maintenance of property, plant and equipment
20,225
21,972
20,836
22,183
Costs of other services
38,398
39,202
31,300
31,212
Total costs of services
208,503
204,561
195,762
193,544
The Group’s costs of services in 2022 are higher by EUR 3,942 thousand compared to 2021. In 2022, income
from domestic wholesale was higher, resulting in higher costs of telecommunication services. The costs of
leased lines, networks and platforms, and the costs of maintenance of property, plant and equipment are
slightly lower.
The costs of services at the Company Telekom Slovenije are EUR 2,218 thousand higher in 2022 compared to
the previous year, mainly the costs of telecommunications and multimedia services. The costs of leased lines,
networks and platforms, and the costs of maintenance of property, plant and equipment are slightly lower.
Costs of other services mainly comprise advertising and sponsorship costs in the amount of EUR 8,427
thousand (in 2021: EUR 8,559 thousand), costs of intellectual and personal services in the amount of EUR
6,485 thousand (in 2021: EUR 7,583 thousand), and insurance premiums in the amount of EUR 3,301
thousand (in 2021: EUR 3,173 thousand). Costs of research and development amounted to EUR 4 thousand in
2022 (none in 2021).
In 2022, the costs related to variable lease payments of the Telekom Slovenije Group stood at EUR 73
thousand (in 2021: EUR 154 thousand) and of the company Telekom Slovenije at EUR 33 thousand (in 2021:
EUR 35 thousand).
10. Labour costs
Telekom
Slovenije
Group
The Company Telekom
Slovenije
in EUR thousand
I–XII 2022
I–XII 2021
I–XII 2022
I–XII 2021
Salaries and compensations
98,470
95,782
75,826
73,226
Social security contributions
19,555
18,883
15,327
15,016
- of which pension insurance contributions
12,609
12,380
9,675
9,710
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
209
Other labour costs
13,826
12,684
10,309
9,249
Provisions for jubilee rewards
697
59
558
33
Provisions for severance pays
1,541
772
1,121
427
- of which provisions for restructuring
1,157
268
792
0
Capitalised own products and services
-16,231
-16,909
-4,695
-5,263
Total labour costs
117,858
111,271
98,446
92,688
In the Telekom Slovenije Group, of the total capitalised own products and services in the amound of EUR
18,489 thousand (in 2021; EUR 19,130 thousand), EUR 16,231 thousand were disclosed under labour costs (in
2021: EUR 16,909 thousand). The rest is disclosed under Other operating expenses (Note 13). Services
rendered for the needs of the Group are capitalised among intangible assets and property, plant and equipment
(Notes 16 and 17).
In 2022, the average number of employees by hours worked in the Telekom Slovenije Group was 3,158 (in
2021: 3,234 employees).
In the company Telekom Slovenije, of the total capitalised own products and services in the amount of EUR
5,515 thousand (in 2021: EUR 6,112 thousand), EUR 4,695 thousand were disclosed under labour costs (in
2021: EUR 5,263 thousand). The rest is disclosed under Other operating expenses (Note 13). Services
rendered for the needs of the Group are capitalised among intangible assets and property, plant and equipment
(Notes 16 and 17).
In 2022, the average number of employees by hours worked in the company Telekom Slovenije was 2,033 (in
2021: 2,076 employees).
Employee structure by level of education
Telekom Slovenije
Group
The Company
Telekom
Slovenije
Level/ Number of employees
31 Dec
2022
31 Dec
2021
31 Dec
2022
31 Dec
2021
Level I–IV
281
287
99
106
Level V
947
970
684
697
Level VI
664
704
384
382
Level VII
1,188
1,158
824
823
Level VIII
182
165
112
111
Total
3,262
3,284
2,103
2,119
11. Depreciation/Amortisation
Telekom Slovenije Group
The Company Telekom
Slovenije
in EUR thousand
I–XII 2022
I–XII 2021
I–XII 2022
I–XII 2021
Amortization of intangible assets
72,357
72,756
59,477
61,301
Depreciation of PP&E
80,861
83,687
67,283
69,506
Amortisation of right-of-use assets
12,728
12,550
11,968
11,286
Depreciation of investment property
147
81
153
82
Depreciation from lease modifications
-3
-18
0
0
166,090
169,056
138,881
142,175
Amortisation/depreciation is disclosed in more detail in Chapters 16, 17, 18, and 23.
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
210
12. Finance income and finance expenses
Telekom Slovenije Group
The Company Telekom
Slovenije
in EUR thousand
I–XII 2022
I–XII 2021
I–XII 2022
I–XII 2021
Dividend income
240
128
1,185
11,128
Interest income
1,261
1,317
2,860
3,569
Net exchange gains
0
0
11
1
Revenue from write-off of liabilities for right-of-use
assets
62
78
62
77
Other finance income
1,942
473
1,853
450
Total finance income
3,505
1,996
5,971
15,225
Interest on bonds issued
0
872
0
872
Interest expenses
5,431
4,756
5,427
4,783
Foreign exchange net losses
384
549
416
538
Impairments and write-offs of investments
0
1
556
225
Interest expenses from lease liabilities
2,122
2,214
2,072
2,227
Other finance expenses
505
225
137
101
Total finance expenses
8,442
8,617
8,608
8,746
Financial result
-4,937
-6,621
-2,637
6,479
In 2022, the company Telekom Slovenije received dividends from the subsidiary Avtenta in the amount of
EUR 800 thousand and the subsidiary SIOL Podgorica in the amount of EUR 145 thousand (dividend income).
In 2021, the Company received dividends from the subsidiary GVO in the amount of EUR 11,000 thousand.
Based on the valuation prepared by certified business appraisers, in 2022 the Company impaired the financial
investment in the subsidiary TSmedia in the amount of EUR 300 thousand and the investment in the subsidiary
Soline in the amount of EUR 256 thousand, and recognised finance expenses arising from this (Impairments
and write-offs of investments). The investment in the subsidiary TSmedia was also impaired in 2021 in the
depends amount of EUR 225 thousand.
13. Other operating expenses
Telekom Slovenije Group
The Company Telekom Slovenije
in EUR thousand
I–XII 2022
I–XII 2021
I–XII 2022
I–XII 2021
Provisions
-20
-1,005
0
0
Loss on disposal of intangible assets and
property, plant and equipment
760
989
758
974
Impairment and write-off of inventories
1,380
2,192
1,266
2,161
Impairment and write-off of operating and other
receivables
2,545
2,395
1,968
1,952
Adjustment and write-off of contract assets
617
682
609
677
Impairment of intangible assets and property,
plant and equipment
953
686
189
0
Impairments of assets of own production
0
0
0
0
Impairment of leased (ROU) assets
35
54
24
55
Capitalised own products and services
-2,258
-2,221
-820
-849
Other humanitarian expenditure – Srčni sklad
62
58
0
0
Other expenses
2,942
2,677
2,920
2,474
Total other operating expenses
7,016
6,507
6,914
7,444
In 2022, expenditure for provisions in the Group was negative due to the reversal of provisions for performance
bonds. In 2022, the Company Telekom Slovenije did not form or reverse any provisions for liabilities from
litigation claims.
Other expenses mostly relate to the cost of compensation for the use of land.
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
211
14. Income tax, deferred tax assets and tax liabilities
Telekom Slovenije Group
The Company Telekom
Slovenije
in EUR thousand
I–XII 2022
I–XII 2021
I–XII 2022
I–XII 2021
Current tax payable
-5,020
-4,705
-2,349
-3,553
Deferred tax assets/ liabilities
-2,899
-2,482
-2,705
-2,153
Total tax
-7,919
-7,187
-5,054
-5,706
Reconciliation of the actual and accounted for expenses for tax with deferred tax considering the effective tax
rate
Telekom Slovenije Group
The Company Telekom
Slovenije
in EUR thousand
2022
2021
2022
2021
Profit before tax
45,425
45,075
25,847
40,077
Income tax using the prescribed tax rate
-8,634
-8,393
-4,911
-7,615
Tax-free dividends received
43
124
214
2,011
Tax relief used in the current period
924
959
683
690
Reversal of tax relief used in previous periods
-22
-1
-21
0
Non-deductible expenses
-1,919
-1,897
-1,763
-1,731
Deductible expenses/revenues that were non-
deductible in previous years
748
1,064
745
1,022
Tax loss
-203
-356
0
0
Unused reliefs
0
-84
0
-84
Other items (corrections, withholding tax)
1,144
1,397
-1
1
Total tax with deferred tax
-7,919
-7,187
-5,054
-5,706
Effective tax rate
17.4%
15.9%
19.6%
14.2%
The tax loss of the Telekom Slovenije Group as at 31 December 2022 stood at EUR 107,530 thousand (31
Dec 2021: EUR 106,367 thousand).
The tax loss of the company Telekom Slovenije as at 31 December 2022 stood at EUR 91,967 thousand (31
Dec 2021: EUR 91,967 thousand).
The unused tax reliefs of the Group stand at EUR 72,489 thousand for 2022, and at EUR 70,547 thousand for
2021. The unused tax reliefs of the company Telekom Slovenije as at 31 December 2022 stood at EUR 71,697
thousand (31 Dec 2021: EUR 69,852 thousand).
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 (2021: 19 %) in Slovenia. Tax rates in
other companies are defined in the table of subsidiaries in Note 5.
Deferred tax assets
Telekom Slovenije Group
The Company Telekom Slovenije
in EUR thousand
2022
2021
Through
statement
of profit
or loss
Across
com-
prehensive
income
2022
2021
Through
statement
of profit
or loss
Across
com-
prehensive
income
Intangible assets, and
property, plant and equipment
21,251
20,194
1,057
0
21,243
20,185
1,059
0
Investments
640
1,217
-548
1
640
1,217
-578
1
Trade receivables
2,732
2,605
127
0
2,607
2,483
124
0
Tax loss and unused tax
reliefs
14,376
17,713
-3,337
0
14,376
17,712
-3,337
0
Provisions
325
283
42
0
191
164
27
0
Deferred tax assets
39,324
42,012
-2,689
1
39,057
41,761
-2,705
1
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
212
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 2022, the Group and the Company have EUR 2,963 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 3,337
thousand. Deferred tax assets from investment incentives for 2022 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, which is unlimited, and the possibility of reduction of tax base by 50% at most. As at 31
December 2022, the Group and the Company have formed 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. Future taxable profit is derived from the strategic business plan, which is approved for
the 2022–2026 period.
In tax planning, the Group and the Company prepared the plan of using tax deductions in the next 3-year
period, stating that the formed deferred tax assets from investment incentives will be fully used in the planned
period, and the formed deferred tax assets from tax loss, which is not restricted by law, will start being used
after 2025, with different dynamics.
Deferred tax liabilities
Telekom Slovenije Group
The Company Telekom Slovenije
in EUR thousand
2022
2021
Through
statement of
profit or loss
Across com-
prehensive
income
2022
2021
Through
statement of
profit or loss
Across com-
prehensive
income
Intangible assets, and
property, plant and equipment
1,600
1,389
210
0
0
0
0
0
Investments
293
321
0
-27
293
321
0
-28
Deferred tax liabilities
1,893
1,710
210
-27
293
321
0
-28
Changes in deferred tax assets
in EUR thousand
Telekom Slovenije Group
The Company Telekom
Slovenije
Balance as at 1 January 2021
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
Drawing
-8,374
-8,351
Reversal
-922
-789
Formation
6,608
6,436
Balance as at 31 Dec 2022
39,324
39,057
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
213
Changes in deferred tax liabilities
in EUR thousand
Telekom Slovenije Group
The Company Telekom
Slovenije
Balance as at 1 January 2021
1,563
235
Reversal
23
-38
Formation
124
124
Balance as at 31 Dec 2021
1,710
321
Reversal
-194
-194
Formation
377
166
Balance as at 31 Dec 2022
1,893
293
In Telekom Slovenije, the amount of deductible temporary differences, unused tax losses and unused investment
incentives for which deferred tax assets were not formed, amounts to:
- as at 31 Dec 2021: EUR 68,591 thousand, and deferred tax assets would amount to EUR 13,032
thousand;
- as at 31 Dec 2022: EUR 88,002 thousand, and deferred tax assets would amount to EUR 16,720
thousand;
In the Telekom Slovenije Group, the amount of deductible temporary differences, unused tax losses and unused
investment incentives for which deferred tax assets were not formed, amounts to:
- as at 31 Dec 2021: EUR 83,500 thousand, and deferred tax assets would amount to EUR 15,865
thousand;
- as at 31 Dec 2022: EUR 104,061 thousand, and deferred tax assets would amount to EUR 19,772
thousand.
The Group and the Company did not form deferred tax assets because long-term projections do not show the
possibility of use in the future.
Income tax receivables
Income tax receivables for 2022 amount to EUR 1,387 thousand for the Telekom Slovenije Group (in 2021:
EUR 208 thousand).
Income tax receivables for 2022 amount to EUR 1,286 thousand for the company Telekom Slovenije (in 2021:
EUR 116 thousand).
Income tax payables
The current income tax payables for 2022 amount to EUR 221 thousand for the Telekom Slovenije Group (in
2021: EUR 3,769 thousand).
The Company Telekom Slovenije has no income tax payables amount in 2022; in 2021 its liabilities amounted
to EUR 3,553 thousand.
15. 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 the 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.
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
214
Weighted average number of ordinary shares
Telekom Slovenije Group
The Company Telekom
Slovenije
in EUR thousand
I–XII 2022
I–XII 2021
I–XII 2022
I–XII 2021
Number of all shares
6,535,478
6,535,478
6,535,478
6,535,478
Weighted average of own shares
-36,040
-30,000
-36,040
-30,000
Weighted average of shares excluding own shares
6,499,438
6,505,478
6,499,438
6,505,478
Earnings per share
Telekom Slovenije Group
The Company Telekom
Slovenije
in EUR thousand
I–XII 2022
I–XII 2021
I–XII 2022
I–XII 2021
Net profit or loss from going concern
37,506
37,888
20,793
34,371
Weighted average number of ordinary shares
for earnings per share
6,499,438
6,505,478
6,499,438
6,505,478
Earnings per share
5.77
5.82
3.20
5.28
16. 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 100,738 thousand (31 Dec 2021: EUR
109,392 thousand). 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 46 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).
At the end of 2022, 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 for a 3-year period was used for the recoverable
amount assessment of non-current assets of the Debitel cash generating unit (CGU). It was established that
the recoverable amount of the non-current assets of the cash-generating unit Debitel represents the value in
use. The discount rate applied in the projection was 10 % and the assessed long-term growth rate was 2%. The
book value exceeds the recoverable amount, thus requiring no impairment of goodwill.
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
215
Telekom Slovenije Group
Changes in intangible assets of the Telekom Slovenije Group in 2022
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 January 2022
49,737
430,342
20,518
303,079
67,366
12,795
883,837
Increases
0
20,031
0
0
2
34,959
54,992
Fixed assets generated in the
Group
0
0
0
0
0
1,558
1,558
Transfer into use
0
9,747
7,785
18,264
252
-36,048
0
Disposals
0
-38,442
-7,161
-67,434
0
-2
-113,039
Other transfers*
0
0
0
43
0
0
43
Balance as at 31 Dec 2022
49,737
421,678
21,142
253,952
67,620
13,262
827,391
Impairment
Balance as at 1 January 2022
46,019
292,001
10,088
266,959
48,387
267
663,721
Disposals
0
-38,442
-7,161
-67,432
0
0
-113,035
Other transfers*
0
0
0
-4
0
0
-4
Depreciation/Amortisation
0
39,932
7,340
23,144
1,941
0
72,357
Balance as at 31 Dec 2022
46,019
293,491
10,267
222,667
50,328
267
623,039
Carrying amount
Balance as at 1 January 2022
3,718
138,341
10,430
36,120
18,979
12,528
220,116
Balance as at 31 Dec 2022
3,718
128,187
10,875
31,285
17,292
12,995
204,352
* Other transfers include transfers between intangible assets and property, plant and equipment, transfers among groups of assets.
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 January 2021
107,654
364,567
20,900
279,791
67,161
15,520
855,593
Increases
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 January 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 January 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
* Other transfers include transfers between intangible assets and property, plant and equipment, transfers among groups of assets.
Significant increases in intangible assets relate to the purchase and development of software and the allocation
of radio frequencies for the provision of public communication services to end users.
As at 31 December 2022, the Group disclosed contractual commitments for intangible assets in the amount of
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
216
EUR 4,411 thousand (31 December 2021: EUR 8,056 thousand) which relate to the set-up of computer
systems and to software licences.
The company Telekom Slovenije
Changes in intangible assets of the company Telekom Slovenije in 2022
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 January 2022
3,602
288,174
20,518
289,120
19,100
12,480
632,994
Increases
0
0
0
0
0
33,239
33,239
Assets generated in the
company
0
0
0
0
0
1,202
1,202
Transfer into use
0
8,712
7,785
17,447
252
-34,196
0
Disposals
0
-14,627
-7,161
-66,320
0
-2
-88,110
Other transfers*
0
0
0
42
0
0
42
Balance as at 31 Dec 2022
3,602
282,259
21,142
240,289
19,352
12,723
579,367
Impairment
Balance as at 1 January 2022
0
175,120
10,088
251,371
16,164
0
452,743
Disposals
0
-14,628
-7,161
-66,318
0
0
-88,107
Other transfers*
0
0
0
-5
0
0
-5
Depreciation/Amortisation
0
29,820
7,340
21,932
385
0
59,477
Balance as at 31 Dec 2022
0
190,312
10,267
206,980
16,549
0
424,108
Carrying amount
Balance as at 1 January 2022
3,602
113,054
10,430
37,749
2,936
12,480
180,251
Balance as at 31 Dec 2022
3,602
91,947
10,875
33,309
2,803
12,723
155,259
* 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 2022
217
Changes in intangible assets of the company Telekom Slovenije in 2021
in EUR thousand
Good
will
Concessio
ns and
licences
Cost of
obtaining
contracts
with
customers
Computer
software
Other intangible
assets
Intangible assets
under
construction
Total
Cost
Balance as at 1
January 2021
3,602
224,008
20,900
267,480
18,893
14,543
549,426
Increases
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
January 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/Amortisatio
n
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
January 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
* Other transfers include transfers between intangible assets and property, plant and equipment, transfers among groups of assets.
The Group companies have unlimited property rights on intangible assets, which are free of encumbrances.
As at 31 December 2022, the company disclosed contractual commitments for intangible assets in the amount
of EUR 5,565 thousand (31 December 2021: EUR 9,280 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 7,376 thousand for the
Telekom Slovenije Group and EUR 6,577 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.
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
218
Changes in non-current deferred costs of development of the Telekom Slovenije Group in 2022
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
investment
s
Total
Cost
Balance as at 1
January 2022
10,101
4
38,368
318
773
49,564
Increases - external
development
0
0
1
0
1,248
1,249
Increases - own
development
0
0
0
0
390
390
Transfer from assets
under construction
167
0
1,299
0
-1,466
0
Disposals
-7
0
-34
0
0
-41
Balance as at 31 Dec
2022
10,261
4
39,634
318
945
51,162
Impairment
Balance as at 1
January 2022
9,146
4
29,262
96
0
38,508
Disposals
-8
0
-33
0
0
-41
Depreciation/Amortisatio
n
523
0
4,780
16
0
5,319
Balance as at 31 Dec
2022
9,662
4
34,009
112
0
43,786
Carrying amount
Balance as at 1
January 2022
955
0
9,106
222
773
11,056
Balance as at 31 Dec
2022
599
0
5,625
206
945
7,376
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
January 2021
10,477
4
34,694
318
3,488
48,981
Increases - 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
January 2021
8,807
3
24,066
80
0
32,956
Disposals
-682
0
-246
0
0
-928
Depreciation/Amortisat
ion
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
January 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 2022
219
Changes in non-current deferred costs of development of the Company Telekom Slovenije in 2022
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
investment
s
Total
Cost
Balance as at 1
January 2022
7,992
4
36,625
318
513
45,452
Increases - external
development
0
0
0
0
1,173
1,173
Increases - own
development
0
0
0
0
157
157
Transfer from assets
under construction
131
0
1,191
0
-1,322
0
Disposals
-7
0
-34
0
0
-41
Balance as at 31 Dec
2022
8,116
4
37,782
318
521
46,741
Impairment
Balance as at 1
January 2022
7,367
4
27,675
96
0
35,142
Disposals
-7
0
-34
0
0
-41
Depreciation/Amortisati
on
400
0
4,647
16
0
5,063
Balance as at 31 Dec
2022
7,760
4
32,288
112
0
40,164
Carrying amount
Balance as at 1
January 2022
625
0
8,950
222
513
10,310
Balance as at 31 Dec
2022
356
0
5,495
206
521
6,577
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
220
Changes in non-current deferred costs of development of the Company Telekom Slovenije in 2021
in EUR thousand
Computer
software
Own work -
developmen
t
Other intangible non-
current assets
Own work - development
Computer
software
External -
developmen
t
Other intangible
non-current assets
External -
development
Ongoing
investment
s
Total
Cost
Balance as at 1
January 2021
8,639
4
33,055
318
3,190
45,206
Increases - external
development
0
0
0
0
1,340
1,340
Increases - 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
January 2021
7,121
3
22,625
80
0
29,829
Disposals
-681
0
-246
0
0
-927
Depreciation/Amortisa
tion
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
January 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
17. Property, plant and equipment
Significant increases in property, plant and equipment in use refer in 2022 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 2022, more than 86 % of investments were completed within less than 12
months, including in the cable network construction segment, as these were mainly upgrades to existing
networks. In 2022, the Group and the Company utilised a purpose-specific loan for the acquisition or
construction of optic network assets. The Company recorded the costs of taking out a special-purpose loan for
the construction of the optical network, i.e., the amount of interest from the drawing of the loan, as an increase
in investments for the construction of an optical network in the total amount of EUR 329 thousand. In 2022, the
Group and the Company classified the costs of taking out non-purpose loans as costs for the period.
Telekom Slovenije Group
Contractual commitments for property, plant and equipment as at 31 December 2022 amounted to EUR 5,938
thousand (31 Dec 2021: EUR 5,159 thousand) and mostly refer to the set-up of telecommunications network.
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
221
Based on the Report on valuation of non-current assets of Soline, dated 30 November 2022, prepared by a
certified business appraiser, the Group impaired assets in Terme Lepa Vida in the amount of EUR 372
thousand.
Changes in property, plant and equipment of the Telekom Slovenije Group in 2022
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 January
2022
490,082
1,190,292
88,832
315,485
385,390
40,823
268
2,511,172
Difference from the
translation to the
presentation currency
0
2
0
0
0
0
0
2
Increases
104
2,907
0
0
1,205
78,396
-185
82,427
Fixed assets generated in
the Group
0
0
0
0
0
15,565
0
15,565
Transfer into use
29,243
28,475
1,260
12,520
35,409
-106,907
0
0
Disposals
-1,354
-2,319
-5,212
-27,461
-66,582
-302
0
-103,230
Other transfers*
13
-81
10
-6
-21
-84
-22
-191
Balance as at 31 Dec 2022
518,088
1,219,276
84,890
300,538
355,401
27,491
61
2,505,745
Impairment
Balance as at 1 January
2022
216,747
951,360
82,613
266,825
315,178
11,390
0
1,844,113
Difference from the
translation to the
presentation currency
0
1
0
0
1
0
0
2
Increases
0
0
0
0
10
0
0
10
Disposals
-489
-2,057
-5,197
-27,387
-63,551
0
0
-98,681
Depreciation/Amortisation
13,152
22,408
2,029
13,820
29,452
0
0
80,861
Other transfers*
5
-42
36
-6
-54
0
0
-61
Balance as at 31 Dec 2022
229,415
971,670
79,481
253,252
281,036
11,390
0
1,826,244
Carrying amount
Balance as at 1 January
2022
273,335
238,932
6,219
48,660
70,212
29,433
268
667,059
Balance as at 31 Dec 2022
288,673
247,606
5,409
47,286
74,365
16,101
61
679,501
* 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 2022
222
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 January
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
Increases
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 January
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
Increases
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 January
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
* 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 2022
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
7,786
0
0
0
88
0
0
7,874
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
8,700
The company Telekom Slovenije
As at 31 December 2022, the Company disclosed contractual commitments for property, plant and equipment
in the amount of EUR 16,450 thousand (31 Dec 2021: EUR 16,526 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 2022
223
Changes in property, plant and equipment of the company Telekom Slovenije in 2022
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 January 2022
460,462
1,115,166
87,656
204,955
364,922
44,080
2,277,241
Increases
0
0
0
0
0
67,136
67,136
Fixed assets generated in the Company
0
0
0
0
0
4,313
4,313
Transfer into use
29,198
25,571
1,212
6,435
32,270
-94,686
0
Disposals
-974
-1,309
-5,212
-25,913
-59,709
-302
-93,419
Other transfers*
13
-82
9
-5
22
0
-43
Balance as at 31 Dec 2022
488,699
1,139,346
83,665
185,472
337,505
20,541
2,255,228
Impairment
Balance as at 1 January 2022
208,124
904,603
81,397
177,141
301,265
0
1,672,530
Increases
0
0
0
0
8
0
8
Disposals
-522
-1,139
-5,197
-25,841
-56,829
0
-89,528
Depreciation/Amortisation
12,624
18,139
2,025
8,202
26,293
0
67,283
Other transfers*
5
-42
34
-5
11
0
3
Balance as at 31 Dec 2022
220,231
921,561
78,259
159,497
270,748
0
1,650,296
Carrying amount
Balance as at 1 January 2022
252,338
210,563
6,259
27,814
63,657
44,080
604,711
Balance as at 31 Dec 2022
268,468
217,785
5,406
25,975
66,757
20,541
604,932
* 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 2022
224
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 January 2021
450,523
1,092,744
104,352
213,758
363,176
40,956
2,265,509
Increases
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 January 2021
198,208
886,373
96,024
185,733
298,639
0
1,664,977
Increases
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 January 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
* 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.
Of total assets, the company Telekom Slovenije let assets in the (carrying) amount:
In 2022
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
6,985
0
0
0
9
0
0
6,994
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
18. 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.
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
225
Changes in right-of-use assets of the Telekom Slovenije Group in 2022
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 January 2022
65,619
8,507
9,243
2,257
20,557
3,846
110,029
Difference from the translation to the presentation
currency
0
0
0
0
-2
0
-2
Contract modifications
5,986
392
592
-14
3,955
88
10,999
Transfer to use - new contracts
3,919
204
356
1,098
-2,172
290
3,695
Disposals
-1,488
-175
-472
-654
-109
0
-2,898
Other transfers
0
1
0
0
17
0
18
Balance as at 31 Dec 2022
74,036
8,929
9,719
2,687
22,246
4,224
121,841
Impairment
Balance as at 1 January 2022
21,501
2,533
4,641
1,310
4,739
1,335
36,059
Disposals
-1,268
-89
-258
-652
-109
0
-2,376
Impairment
0
0
0
0
0
0
0
Depreciation/Amortisation
7,515
893
1,540
562
1,724
494
12,728
Other transfers
0
0
0
0
11
0
11
Balance as at 31 Dec 2022
27,748
3,337
5,923
1,220
6,365
1,829
46,422
Carrying amount
Balance as at 1 January 2022
44,118
5,974
4,602
947
15,818
2,511
73,970
Balance as at 31 Dec 2022
46,288
5,592
3,796
1,467
15,881
2,395
75,419
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 January 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 January 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 January 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 2022
226
Changes in right-of-use assets of the company Telekom Slovenije in 2022
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 January 2022
58,640
7,678
3,785
2,054
40,163
645
112,965
Contract modifications
-485
322
41
-13
3,780
-12
3,633
Transfer to use - new contracts
3,919
164
339
1,039
627
0
6,088
Disposals
-1,379
-170
-111
-624
-109
0
-2,393
Balance as at 31 Dec 2022
60,695
7,994
4,054
2,456
44,461
633
120,293
Impairment
Balance as at 1 January 2022
16,933
2,188
1,638
1,163
10,054
321
32,298
Disposals
-1,170
-85
-110
-624
-110
0
-2,099
Depreciation/Amortisation
6,119
781
572
524
3,815
157
11,968
Balance as at 31 Dec 2022
21,882
2,884
2,100
1,063
13,759
478
42,167
Carrying amount
Balance as at 1 January 2022
41,706
5,490
2,147
891
30,109
324
80,667
Balance as at 31 Dec 2022
38,813
5,110
1,954
1,393
30,702
155
78,126
Changes in right-of-use assets of the company 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 January 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 January 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 January 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 2022
227
The amounts recognised in the statement of profit or loss
in EUR thousand
Telekom Slovenije
Group
The Company Telekom
Slovenije
2022
2021
2022
2021
Depreciation costs of the right-of-use assets
12,728
12,550
11,968
11,286
Interest expenses from lease liabilities
2,122
2,214
2,072
2,227
Expenses related to variable lease payments not included in
the measuring of lease liabilities
73
154
33
35
Total
14,923
14,918
14,073
13,548
19. Investments in subsidiaries
Telekom Slovenije holds a 100% interest in the following subsidiaries, the value of which, as at 31 December
2022, amounts to:
in EUR thousand
31 Dec 2021
Increase
Impairment
31 Dec 2022
GVO
5,758
0
0
5,758
Avtenta
1,323
0
0
1,323
TSmedia
3,760
0
-300
3,460
Ipko
20,730
0
0
20,730
Soline
147
1,000
-256
891
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
38,276
1,000
-556
38,720
In 2022, the Company recapitalized the company Soline in the amount of EUR 1,000 thousand.
For 2022, based on checking for signs of impairment, the Company opted to assess the recoverable amount for
its subsidiaries TSmedia, TSinpo, Ipko, Soline, Siol Zagreb, Siol Priština, and Siol Sarajevo. The recoverable
amounts of individual companies were assessed by a certified business appraiser.
TSmedia
The recoverable amount of the 100% share capital in TSmedia for the purpose of financial reporting amounts to
EUR 3,460 thousand. During the value assessment, the present value method of expected free cash flows for a
three-year period based on actual plans was used, excluding indebtedness. The recoverable amount equals
fair value less the costs of sale. The discount rate applied in the projection was 11.35 % and the assessed
long-term growth rate was 2.50 %. Based on the valuation, the Company impaired the investment in TSmedia
in the amount of EUR 300 thousand (Note 12).
Sensitivity analysis - change in NPV of equity in kEUR
Impact of change in assumption
Growth / WACC
-1%
+1%
-1%
3,579
4,403
+1%
2,858
3,340
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
228
Soline
The recoverable amount of the 100% share capital in Soline for the purpose of financial reporting equals EUR
891 thousand. During the value-in-use assessment, the present value method of expected free cash flows for a
three-year period based on actual plans was used, excluding indebtedness. The discount rate applied in the
projection was 15.65 % and the assessed long-term growth rate was 2.0 %. Based on the valuation, the
Company impaired the investment in Soline in the amount of EUR 256 thousand (Note 12).
Sensitivity analysis - change in NPV of equity in kEUR
Impact of change in assumption
Growth / WACC
-1%
+1%
-1%
1,002
1,157
+1%
688
784
For other investments in subsidiaries, the Company did not find any signs of impairment of the investments, but
nevertheless opted to assess the recoverable amount for the investments in TSinpo, Ipko, Siol Zagreb, Siol
Priština, and Siol Sarajevo. The appraisals showed no need for impairment of investments, as the recoverable
amount exceeded the book value.
20. Other investments
Non-current investments
Telekom Slovenije Group
The Company Telekom
Slovenije
in EUR thousand
31 Dec 2022
31 Dec 2021
31 Dec 2022
31 Dec 2021
Investments in other shares and interests
2,423
3,241
2,423
3,241
Loans to companies
0
0
46,073
53,950
- of which to companies in the Group
0
0
46,073
53,950
Loans to employees
9
44
9
44
Other financial assets
16
7
0
0
Total non-current investments
2,448
3,292
48,505
57,235
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 2,139 thousand (31 Dec 2021: EUR 2,305
thousand) relates to investments which are listed on the stock exchange. Investments are not pledged as
collateral and are free of encumbrances.
Due to the negative performance and the reduction in the market value of the portfolio investments owned by
the company ABCITI, Družba za investiranje, d.o.o., the Company and the Group fully impaired the financial
investment in the 11.94% share capital of ABCITI. The effects of impairments in the amount of EUR 263
thousand are disclosed in the statement of other comprehensive income as fair value reserve for financial
instruments (Note 30).
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
229
Current investments
Telekom Slovenije Group
The Company Telekom
Slovenije
in EUR thousand
31 Dec 2022
31 Dec 2021
31 Dec 2022
31 Dec 2021
Current loans granted to companies
0
0
11,480
12,139
* of which to companies in the Group
0
0
11,480
12,139
Loans to employees
16
38
16
38
Other current financial assets
2
0
0
0
Fair value of interest rate swap
19
0
20
0
Bank deposits
800
702
0
0
Total current investments
837
740
11,516
12,177
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 2022 equalled EUR 19 thousand (31 Dec 2021: EUR 88 thousand recorded under
current financial liabilities). Due to the immateriality of the amount of the interest rate swap, the Group and the
Company did not prepare any additional disclosures related to risk management.
Loans granted
Telekom Slovenije Group
The Company Telekom
Slovenije
in EUR thousand
31 Dec 2022
31 Dec 2021
31 Dec 2022
31 Dec 2021
Non-current loans granted
9
44
46,083
53,994
Loans granted
0
0
46,074
53,950
Loans to employees
9
44
9
44
Current loans granted
16
38
11,495
12,177
Non-current loan portion falling due in 12 months - loans
granted
0
0
24,210
10,985
Non-current loan portion falling due in 12 months - loans to
employees
16
38
16
38
Current loans granted and interest
0
0
-12,731
1,154
Current loans granted to employees
0
0
0
0
Closing balance – loans granted
25
82
57,578
66,171
The maturity of current and non-current loans as well as other data are disclosed in Note 45.
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 0.539 % and 3.026 %. For more details see Note 45.
21. Contract assets
Telekom Slovenije Group
The Company Telekom
Slovenije
in EUR thousand
31 Dec 2022
31 Dec 2021
31 Dec 2022
31 Dec 2021
Non-current contract assets
3,624
2,854
3,234
2,469
Total non-current assets
3,624
2,854
3,234
2,469
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,
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
230
giving rise to contract assets.
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 2022, the Group impaired contract assets
in the amount of EUR 617 thousand (in 2021: EUR 682 thousand), and the company Telekom Slovenije EUR
609 thousand (in 2021: EUR 677 thousand).
22. Deferred costs
Telekom Slovenije Group
The Company Telekom
Slovenije
in EUR thousand
31 Dec 2022
31 Dec 2021
31 Dec 2022
31 Dec 2021
Prepaid leases
35
38
20
38
Other non-current assets
3,258
1,021
3,674
1,571
Total other non-current assets
3,293
1,058
3,694
1,608
Other non-current assets represent the balance of non-current deferred costs of license maintenance and
similar costs.
23. Investment property
Movement of investment property in 2022
Telekom Slovenije Group
The Company Telekom Slovenije
in EUR thousand
Land
Buildings
Total
Land
Buildings
Total
Cost
Balance as at 1 January 2022
1,986
6,305
8,291
4,958
6,431
11,389
Increases
0
22
22
0
126
126
Disposals
0
-116
-116
0
-157
-157
Balance as at 31 Dec 2022
1,986
6,211
8,197
4,958
6,400
11,358
Impairment
Balance as at 1 January 2022
1,689
2,057
3,746
1,689
2,059
3,748
Depreciation/Amortisation
0
147
147
0
153
152
Balance as at 31 Dec 2022
1,689
2,204
3,893
1,689
2,212
3,901
Carrying amount
Balance as at 1 January 2022
297
4,248
4,545
3,269
4,372
7,641
Balance as at 31 Dec 2022
297
4,007
4,304
3,269
4,188
7,457
Movement of investment property in 2021
Telekom Slovenije Group
The Company Telekom Slovenije
in EUR thousand
Land
Buildings
Total
Land
Buildings
Total
Cost
Balance as at 1 January 2021
1,924
2,149
4,073
4,896
2,149
7,045
Increases
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 January 2021
1,689
1,126
2,815
1,689
1,126
2,815
Increases
0
850
850
0
851
851
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
231
Depreciation/Amortisation
0
81
81
0
82
82
Balance as at 31 Dec 2021
1,689
2,057
3,746
1,689
2,059
3,748
Carrying amount
Balance as at 1 January 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
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 40.
As at 31 December 2022, Telekom Slovenije Group disclosed land, landscaping and the Tisa Hotel building on
Pohorje in the amount of EUR 839 thousand (in 2021: EUR 980 thousand) among its investment property, land
and the building on Vilharjeva Ulica in Ljubljana in the amount of EUR 3,269 thousand (in 2021: EUR 3,346
thousand), as well as land and the building Rakovnik in the amount of EUR 196 thousand (in 2021: EUR 219
thousand).
Among its investment property, Telekom Slovenije additionally discloses land and a building at the Sečovlje
saltpans amounting to EUR 3,153 thousand (in 2021: EUR 3,096 thousand) and, as at 31 December 2022,
holds investment property in the total amount of EUR 7,457 thousand.
The decrease in investment property is entirely related to the impairment of buildings.
Revenue generated on investment property in 2022 is recognised in the Group’s profit or loss in the amount of
EUR 372 thousand (2021: EUR 360 thousand).
The Group and the Company do not have any limited title to investment property, nor are investments subject
to encumbrance.
24. Assets held for sale
As at 31 December 2022, 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; the sale is
planned and expected within the next 12 months.
Telekom Slovenije Group
The Company Telekom
Slovenije
in EUR thousand
Assets held for sale
Assets held for sale
Balance as at 1 January 2021
214
214
Increases
4,071
4,071
Sale
-3,486
-3,486
Balance as at 31 Dec 2021
799
799
Sale
-3
-3
Balance as at 31 Dec 2022
796
796
25. Inventories
Telekom Slovenije Group
The Company Telekom
Slovenije
in EUR thousand
31 Dec 2022
31 Dec 2021
31 Dec 2022
31 Dec 2021
Material
10,707
11,664
8,804
10,044
Products
664
527
0
0
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
232
Merchandise
13,882
10,287
12,898
9,559
Total inventories
25,253
22,478
21,702
19,603
In 2022, the Telekom Slovenije Group impaired and wrote off EUR 1,380 thousand of inventories (in 2021:
EUR 2,192 thousand).
In 2022, Telekom Slovenije wrote off or impaired EUR 1,266 thousand worth of inventories (in 2021: EUR
2,161 thousand).
26. 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 45.
Telekom Slovenije Group
31 Dec 2022
31 Dec 2021
in EUR thousand
Gross amount
Impairment
Net amount
Net amount
Non-current operating receivables
19,345
-94
19,251
18,300
Total trade and other receivables
19,345
-94
19,251
18,300
Current trade receivables
31 Dec 2022
31 Dec 2021
in EUR thousand
Gross amount
Impairment
Net amount
Net amount
Trade receivables
137,513
-11,775
125,738
124,484
Trade receivables due from foreign operators
13,724
-1,498
12,226
12,020
Trade receivables due from domestic operators
18,097
-4,607
13,490
11,993
Total trade receivables
169,334
-17,880
151,454
148,497
Paid advances
1,958
0
1,958
824
VAT and other tax receivables
2,954
0
2,954
5,536
Other receivables
1,314
0
1,314
1,087
Total other receivables
6,226
0
6,226
7,447
Total trade and other receivables
175,560
-17,880
157,680
155,944
Trade receivables do not bear interest.
Changes in impairment of receivables
in EUR thousand
31 Dec 2022
31 Dec 2021
Balance as at 1 January
-16,944
-15,968
Impairments for the year
-6,002
-5,373
Reversal of impairments
4,070
3,346
Write-offs
902
1,051
Closing balance
-17,974
-16,944
The Company Telekom Slovenije
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
233
31 Dec 2022
31 Dec 2021
in EUR thousand
Gross amount
Impairment
Net amount
Net amount
Non-current operating receivables
19,340
-94
19,246
18,294
Total trade and other receivables
19,340
-94
19,246
18,294
Current trade receivables
31 Dec 2022
31 Dec 2021
in EUR thousand
Gross amount
Impairment
Net amount
Net amount
Trade receivables
124,398
-7,542
116,856
116,507
Receivables due from foreign operators
14,331
-1,501
12,830
12,121
Receivables due from domestic operators
20,750
-4,620
16,130
13,464
Total trade receivables
159,479
-13,663
145,816
142,092
Paid advances and warranties
1,832
0
1,832
645
VAT and other tax receivables
2,245
0
2,245
4,739
Other receivables
991
0
991
786
Total other receivables
5,068
0
5,068
6,170
Total trade and other receivables
164,547
-13,663
150,884
148,262
Changes in impairment of receivables
in EUR thousand
31 Dec 2022
31 Dec 2021
Balance as at 1 January
-13,111
-12,532
Impairments for the year
-5,526
-5,244
Reversal of impairments
3,595
3,220
Write-offs
1,285
1,445
Closing balance
-13,757
-13,111
Further information on the ageing structure of receivables according to their age is disclosed in Note 45.
27. Contract assets
Telekom Slovenije Group
The Company Telekom
Slovenije
in EUR thousand
31 Dec 2022
31 Dec 2021
31 Dec 2022
31 Dec 2021
Contract assets from mobile and fixed-line
segment
6,225
6,867
6,225
6,868
Other contract assets
9,717
10,396
9,337
10,299
Total current contract assets
15,942
17,263
15,562
17,167
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.
28. Deferred costs
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
234
Telekom Slovenije Group
The Company Telekom
Slovenije
in EUR thousand
31 Dec 2022
31 Dec 2021
31 Dec 2022
31 Dec 2021
Deferred costs
4,545
3,766
3,741
3,150
Total deferred assets
4,545
3,766
3,741
3,150
Current deferred costs mainly include prepaid costs of system and license maintenance.
29. Cash and cash equivalents
Telekom Slovenije Group
The Company Telekom
Slovenije
in EUR thousand
31 Dec 2022
31 Dec 2021
31 Dec 2022
31 Dec 2021
Cash on hand and bank balances
37,382
15,935
19,573
3,754
Total cash and cash equivalents
37,382
15,935
19,573
3,754
To balance short-term liquidity, the Group and the Company have credit lines or revolving loans with banks in
the total amount of EUR 69 million and a transaction account overdraft in the amount of EUR 3 million. Credit
lines are outlined by the Group in Note 34.
30. 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 2022
31 Dec 2021
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)
938,649
14.36%
896,517
13.72%
Foreign legal entities
407,335
6.23%
422,864
6.47%
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 financial companies and
funds
271,723
4.16%
199,826
3.06%
Domestic legal entities
150,352
2.30%
255,688
3.91%
Treasury shares
36,836
0.56%
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 2022.
Share premium
The share premium may be used under the conditions and for the purpose set by the law. As at 31 December
2022, 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 2022.
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
235
Legal reserves
Legal reserves are formed in such amount that the sum of legal reserves and the share premium equals at
least 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.
Treasury shares
On the basis of the authorisation by the general meeting to acquire its own shares, granted at the 33rd general
meeting of shareholders on 18 June 2021, the Company acquired 6,836 shares in 2022, which represents
0.105% of all issued shares. The value of own shares, including costs directly related to the Company's
acquisitions in 2022, amounts to EUR 394 thousand.
As at 31 December 2022, the Company had 36,836 treasury shares, representing 0.56 % of all issued shares.
The value of treasury shares in the amount of EUR 4,065 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 and the Company may acquire treasury shares solely in accordance with the provisions of Article 247
of the Companies Act (ZGD-1).
Statutory reserves
Statutory reserves are used for forming the treasury share reserve, for covering losses, for share capital
increases, and for covering diverse operating 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.
Other profit reserves
When compiling the Annual Report, the Group or the Company may form other profit reserves up to 50% of
net profit 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 16 June 2022, the accumulated
profit for 2021 in the amount of EUR 45,205 thousand was used for dividend pay-out in the amount of EUR
29,244 thousand, i.e., EUR 4.50 gross per share (in 2021, dividends for the year 2020 were paid out in the
amount of EUR 29,275 thousand or EUR 4.50 per share). The remaining part of the accumulated profit in the
amount of EUR 15,961 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 1 August 2022 as
stockholders with the right to dividends, and to other parties entitled to dividends.
Determination of accumulated profit of Telekom Slovenije for 2022
in EUR
Net profit/loss for 2022
20,793,211.93
Retained net profit/loss
26,076,330.56
Decrease in non-current deferred development costs
-6,576,895.94
Total
40,292,646.55
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
236
The first version of the Annual Report, in respect of which the auditor issued an independent auditor's report on
17 March 2023, was not approved by the Supervisory Board and as such, the part regarding the proposal for
dividend distribution of a profit for the year ended 31 December 2022 was changed. Since the company is
expected to receive aid in the total value of EUR 4 million based on the Act on Aid to the Economy to mitigate
the consequences of the energy crisis, and if it would pay dividends in 2023 in accordance with the current
legislation it would accept the obligation to return this aid, the management board and the supervisory board of
the company will propose in the shareholders' meeting that the profit for the year ended 31 December 2022
remains undistributed.
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 2022 and 2021, the Group and the Company 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 20.
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.
31. Contract liabilities
Telekom Slovenije Group
The Company Telekom Slovenije
in EUR thousand
31 Dec 2022
31 Dec 2021
31 Dec
2022
31 Dec 2021
Non-current contract liabilities
740
278
532
191
Contract liabilities - leases
15,880
13,480
15,881
13,480
Contract liabilities - other
452
520
12
81
Total non-current contract liabilities
17,072
14,278
16,425
13,752
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.
32. Provisions
Changes in provisions of the Telekom Slovenije Group in 2022
in EUR thousand
31 Dec
2021
Transfer to
current
portion
Drawing
Reversal
Formation
Changes in
discount
rates
31 Dec
2022
Provisions for probable liabilities
resulting from legal claims
250
0
0
0
16
0
266
Provisions for jubilee rewards
2,157
0
-167
-2
693
-459
2,222
Provisions for severance
payments upon retirement
11,731
0
-121
-3,637
400
114
8,487
Provisions for estimated costs of
the removal of receiving-
transmitting stations
3,956
0
-31
1
99
-1,441
2,584
Other provisions
4,701
-75
-796
-12
2,617
0
6,435
Provisions for restructuring
268
0
-199
-70
1,227
0
1,226
Total provisions
23,063
-75
-1,314
-3,720
5,052
-1,786
21,220
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
237
Changes in provisions of the Telekom Slovenije Group in 2021
in EUR thousand
31 Dec
2020
Transfer from
current
portion
Drawing
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
payments 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
-1,623
1,689
-343
23,063
Changes in provisions of the company Telekom Slovenije in 2022
in EUR thousand
31 Dec 2021
Drawing
Reversal
Formation
Changes in
discount
rates
31 Dec 2022
Provisions for jubilee rewards
1,719
-133
0
558
-374
1,770
Provisions for severance payments
upon retirement
9,608
-54
-3,119
329
94
6,858
Provisions for estimated costs of the
removal of receiving-transmitting
stations
3,956
-31
1
99
-1,440
2,585
Other provisions
4,278
-312
0
1,954
0
5,920
Provisions for restructuring
0
0
0
792
0
792
Total provisions
19,561
-530
-3,118
3,732
-1,720
17,925
Changes in provisions of the company 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 payments
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
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
238
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 in the amount of EUR 250 thousand 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 2022 and 2021, the Telekom Slovenije Group and the Company Telekom Slovenije did not draw or establish
significant provisions for probable liabilities resulting from legal claims.
Total damages claimed in pending legal claims brought against the Telekom Slovenije Group companies
amount to EUR 188,105 thousand (in 2021: EUR 127,766 thousand). Total damages claimed in pending legal
claims brought against the company Telekom Slovenije amount to EUR 185,365 thousand (in 2021: EUR
125,326 thousand). More details in Note 41.
Provisions for severance pays and jubilee rewards
Provisions for severance pays and jubilee rewards are based on actuarial calculations.
Telekom Slovenije Group
The Company 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 2021
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
Past service cost
-3
-29
-32
0
0
0
Actuarial gains (+) and losses (-)
-198
-819
-1,016
-166
-869
-1,035
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
Interest cost
21
115
137
17
94
111
Current service cost
147
495
642
105
394
500
Turnover (termination of employment)
-31
-116
-147
-17
-65
-82
Actuarial gains (+) and losses (-)
100
-3,661
-3,562
79
-3,119
-3,041
- due to changes in financial
assumptions
-496
-3,395
-3,891
-391
-2,774
-3,165
- due to experience-based
adjustments
596
-266
330
470
-345
125
Payments during the year
-172
-77
-249
-133
-54
-187
Provisions as at 31 Dec 2022
2,221
8,488
10,709
1,770
6,857
8,627
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 to;
- the difference between actual experience and actuarial assumption (mortality, employee turnover, early or
late retirement, salary growth rate and tax-free reward amounts);
- change 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:
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
239
- 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 4.4 % for the company Telekom
Slovenije, d.d. for 2022, and 5.0 % for the Telekom Slovenije Group for 2022, 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;
• 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:
Long-term salary growth in the Company
2023
from 2024
The Company Telekom Slovenije
5.75%
0.76%
GVO
4.22%
2.70%
Avtenta
3.15%
3.15%
TSmedia
0.85%
0.85%
Soline
2.00%
2.00%
TSinpo
0.50%
0.50%
- the applied interest rate equals 4.41% p.a., which corresponds to the 2022 year-end yield on 10-year
corporate bonds from euro area issuers, for Telekom Slovenije, Soline, GVO, Avtenta, and TSinpo, and 4.54
% p.a., which corresponds to the 2022 year-end yield on 15-year corporate bonds from euro area issuers, for
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
10,709
8,488
2,222
Discount interest rate
-0.50%
balance
11,214
8,913
2,301
(difference)
504
425
79
0.50%
balance
10,241
8,093
2,147
(difference)
-469
-394
-75
Salary growth
-0.50%
balance
10,227
8,082
2,146
(difference)
-482
-406
-76
0.50%
balance
11,224
8,922
2,302
(difference)
515
434
80
Sensitivity analysis of changes in actuarial assumptions in Telekom Slovenije
Assumption
Deviation
Description
Total
Severance
pays
Jubilee rewards
Central scenario
0.00%
balance
8,627
6,857
1,770
Discount interest rate
-0.50%
balance
9,034
7,202
1,832
(difference)
407
345
62
0.50%
balance
8,249
6,537
1,711
(difference)
-379
-320
-58
Salary growth
-0.50%
balance
8,237
6,527
1,710
(difference)
-390
-330
-60
0.50%
balance
9,043
7,210
1,833
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
240
(difference)
416
353
63
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 4.41
% p.a. (2021: 0.95 % p.a.), which corresponds to the 10-year yield on corporate bonds from Euro area issuers
as at the end of December 2022.
Other provisions
Among other provisions, the Group and the Company disclose obligations from concluded contracts, which
have a present obligation with an uncertain repayment term. Therefore, they were transferred from current to
non-current provisions in the current year.
Provisions for restructuring
In 2022, the Group utilised provisions for restructuring in the amount of EUR 199 thousand, which were created
in the previous reporting period, and formed new ones in the amount of EUR 1,227 thousand.
In 2022, the Company Telekom Slovenije formed provisions for restructuring of the Company in the amount of
EUR 792 thousand.
33. Other liabilities
Telekom Slovenije Group
The Company Telekom
Slovenije
in EUR thousand
31 Dec 2022
31 Dec 2021
31 Dec 2022
31 Dec 2021
Trade payables for programme rights
7,513
11,834
3,634
11,834
Other
664
6,621
213
447
Total non-current trade payables
8,177
18,455
3,847
12,281
34. 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 45.
Telekom Slovenije Group
The Company Telekom
Slovenije
in EUR thousand
31 Dec 2022
31 Dec 2021
31 Dec 2022
31 Dec 2021
Borrowings
Borrowings from banks
369,023
349,032
369,023
349,001
- current portion of non-current borrowings
-132,340
-40,009
-132,340
-39,978
Total non-current portion
236,683
309,023
236,683
309,023
Telekom Slovenije Group
The Company Telekom
Slovenije
in EUR thousand
31 Dec 2022
31 Dec 2021
31 Dec 2022
31 Dec 2021
Current borrowings
Borrowings from Group companies
0
0
0
1,400
current portion of non-current borrowings from
banks
132,340
40,009
132,340
39,978
Interests and other expenses from borrowings
417
6
417
37
Total current portion
132,757
40,015
132,757
41,415
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
241
Non-current financial liabilities of the Telekom Slovenije Group relate to borrowings from banks received 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) and consists of four tranches, which are repaid in accordance with the amortization
plans until 2032. The loan is linked to a Fixed interest rate-ups for individual tranches ranges from 1.571% to
3.427% and is 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. The current revolving loans mature in
2023 and have a fixed interest rate ranging from 0.48% to 0.49% or a variable interest rate with mark-ups
ranging from 0.46% to 0.50% . A transaction account overdraft contract has also been signed with one of the
banks, with a fixed 4.00% 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 2022, all financial covenants on the Group level
were fulfilled.
Changes in borrowings
Telekom Slovenije Group
The Company Telekom
Slovenije
in EUR thousand
2022
2021
2022
2021
Balance as at 1 Jan
349,038
216,301
350,438
229,316
Drawing
60,000
196,000
60,000
196,000
Returns
-40,220
-62,995
-41,620
-74,595
Other
622
-268
622
-283
Balance as at 31 Dec
369,440
349,038
369,440
350,438
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.
35. 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
The Company Telekom
Slovenije
in EUR thousand
31 Dec 2022
31 Dec 2021
31 Dec 2022
31 Dec 2021
Non-current liabilities arising from right-of-use assets
59,342
57,096
60,871
62,748
Current liabilities arising from right-of-use assets
10,603
9,460
12,527
10,949
Total liabilities arising from right-of-use assets
69,945
66,556
73,398
73,697
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
242
Changes in lease liabilities
in EUR thousand
Telekom Slovenije
Group
The Company
Telekom Slovenije
Balance as at 1 Jan 2021
69,272
78,753
Increases
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
Increases
12,547
8,423
Interest
2,122
2,072
Lease payments
-11,280
-10,795
Balance as at 31 Dec 2022
69,945
73,398
The cash flow from leases amounts to EUR 11,280 thousand for the Telekom Slovenije Group (in 2021: EUR
14,807 thousand) and EUR 10,795 thousand for the company Telekom Slovenije (in 2021: EUR 13,882
thousand), 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.
36. Other financial liabilities
Financial liabilities
Telekom Slovenije Group
The Company Telekom
Slovenije
in EUR thousand
31 Dec 2022
31 Dec 2021
31 Dec
2022
31 Dec
2021
Liabilities for interest rate swap
0
88
0
88
Total non-current financial liabilities
0
88
0
88
Telekom Slovenije Group
The Company Telekom
Slovenije
in EUR thousand
31 Dec 2022
31 Dec 2021
31 Dec 2022
31 Dec 2021
Other financial liabilities
2
2
0
0
Total other current financial liabilities
2
2
0
0
37. Trade payables
Telekom Slovenije Group
The Company Telekom
Slovenije
in EUR thousand
31 Dec 2022
31 Dec 2021
31 Dec 2022
31 Dec 2021
Trade payables
62,737
79,928
47,146
65,612
Liabilities to domestic operators
5,529
1,724
13,726
7,297
Liabilities to foreign operators
7,588
8,034
8,074
8,540
VAT and other tax liabilities
6,636
6,596
5,176
4,944
Liabilities to employees
8,120
8,698
6,504
7,007
Liabilities for advances and warranties
1,722
2,293
378
377
Other liabilities
31,583
23,682
18,297
22,604
Total trade and other payables
123,915
130,955
99,300
116,381
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
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
243
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 2,886 thousand (in 2021: EUR 1,788 thousand), programme rights for TV content in the
amount of EUR 12,619 thousand (in 2021: EUR 18,241 thousand), and other non-current liabilities.
38. Contract liabilities
Telekom Slovenije Group
The Company Telekom
Slovenije
in EUR thousand
31 Dec 2022
31 Dec 2021
31 Dec 2022
31 Dec 2021
Contract liabilities - leases
2,683
1,833
2,801
1,833
Other current contract liabilities
7,592
10,485
2,801
6,619
Total current contract liabilities
10,275
12,318
5,602
8,452
Other current contract liabilities relate mostly to contract liabilities from customer loyalty programme and mobile
services prepayments.
39. 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
The Company Telekom
Slovenije
in EUR thousand
31 Dec 2022
31 Dec 2021
31 Dec 2022
31 Dec 2021
Current portion of government grant for property, plant
and equipment
42
56
40
54
Other current deferred revenue - co-funding of European
projects
1,738
768
443
267
Total current deferred revenue
1,780
824
483
321
Current accrued costs
Telekom Slovenije Group
The Company Telekom
Slovenije
in EUR thousand
31 Dec 2022
31 Dec 2021
31 Dec 2022
31 Dec 2021
Accrued costs and expenses for services rendered and
goods supplied (invoices not issued yet)
11,487
7,985
8,187
6,991
Accrued costs and deferred revenue – calculation of
international services
12,425
11,511
12,433
11,520
Accrued salaries, bonuses and severance pays
5,845
3,856
5,686
3,715
Accrued costs for unused annual leave
4,079
3,932
3,372
3,243
Other
75
678
0
673
Total accrued costs and expenses
33,911
27,962
29,678
26,142
Total accrued interest
35,691
28,786
30,161
26,463
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
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40. 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 Dec 2022
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
2,139
2,139
2,139
Investments in shares and interests not listed
on the stock exchange, measured at fair
value through other comprehensive income
284
284
284
Loans granted
9
9
9
Other non-current financial assets
16
16
16
Trade receivables
19,251
19,251
19,251
Current financial assets
Loans granted
16
16
16
Other current financial assets
802
802
802
Fair value of interest rate swap
19
19
19
Trade and other receivables
159,067
159,067
159,067
Cash and cash equivalents
37,382
37,382
37,382
Non-current financial liabilities
Borrowings
236,683
236,683
236,683
Other liabilities
8,177
8,177
8,177
Current financial liabilities
Borrowings
132,757
132,757
132,757
Other financial liabilities
2
2
2
Trade payables
123,915
123,915
123,915
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
245
Book and fair values of financial instruments of the Telekom Slovenije Group as at 31 Dec 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
Book and fair values of financial instruments of the company Telekom Slovenije as at 31 Dec 2022
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
2,139
2,139
2,139
Investments in shares and interests not listed
on the stock exchange, measured at fair value
through other comprehensive income
284
284
284
Loans granted
46,082
46,082
46,082
Trade receivables
19,246
19,246
19,246
Current financial assets
Loans granted
11,496
11,496
11,496
Fair value of interest rate swap
20
20
20
Trade and other receivables
152,170
152,170
152,170
Cash and cash equivalents
19,573
19,573
19,573
Non-current financial liabilities
Borrowings
236,683
236,683
236,683
Trade payables
3,847
3,847
3,847
Current financial liabilities
Borrowings
132,757
132,757
132,757
Trade payables
99,300
99,300
99,300
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
246
Book and fair values of financial instruments of the company Telekom Slovenije as at 31 Dec 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
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 2021 or 2022.
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 and only disclose fair value. The
valuation of investment property was prepared by a certified property appraiser. The market comparison
approach was used in the assessment of fair value, decreased by the sales costs. Costs of sale are estimated
at 2% of the property market value.
Book and fair values as at 31 Dec 2022
Telekom Slovenije Group
in EUR thousand
Book value
Fair value
Level 1
Level 2
Level 3
Investment property
4,304
5,102
5,102
Telekom Slovenije
in EUR thousand
Book value
Fair value
Level 1
Level 2
Level 3
Investment property
7,457
9,190
9,190
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
247
Book and fair values as at 31 Dec 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
41. Contingent liabilities
Amounts claimed in litigation
Telekom Slovenije Group
in EUR thousand
2022
2021
Amounts claimed in litigation
188,105
127,766
As at the balance sheet date, the Group recorded 107 legal claims (31 Dec 2021: 99 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 266 thousand (Note 32).
The Company Telekom Slovenije
in EUR thousand
2022
2021
Amounts claimed in litigation
185,365
125,326
As at the reporting date, the Company recorded 66 legal claims (31 Dec 2021: 57 legal claims).
On 16 January 2023, the Company Telekom Slovenije received the Decision of the District Court in Ljubljana,
with which the court stopped the proceedings in which the companies POP TV d.o.o. Ljubljana and Kanal A
d.o.o. claimed damages from Telekom Slovenije with a counterclaim.(Note 47 Events after the reporting date).
The dispute value after the suspension of proceedings thus amounts to a total of EUR 128,428 thousand and
EUR 125,688 thousand for the Group and the Company, respectively.
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.
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
248
The court has not yet scheduled a preliminary hearing nor the first hearing for the main hearing in any of the
above cases. Based on the estimate of the management and the obtained legal opinions, the Company has not
formed provisions for legal claims.
Supporting letter given to a subsidiary
The company Telekom Slovenije, as the sole shareholder of Soline, issued a supporting letter to the latter, in
which it declares to continue providing financial support to the subsidiary for going concern and that this
support will not be revoked within twelve months of signing the supporting letter.
Guarantees issued
The Group and the Company provide the following guarantees:
Telekom Slovenije Group
The Company Telekom
Slovenije
in EUR thousand
31 Dec
2022
31 Dec 2021
31 Dec 2022
31 Dec 2021
Performance bonds and warranty bonds
11,507
11,028
8,281
7,892
Other guarantees
218
353
170
133
Total guarantees issued
11,725
11,381
8,451
8,460
None of the stated liabilities meet the terms for recognition among balance sheet items. Thus, no related
material consequences are expected for the Group and the Company.
42. Related party transactions
Related entities are individuals or companies related to the Telekom Slovenije Group.
Transactions with individuals
As at 31 December 2022, 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 398 shares
in the Company, representing a share capital of 0.00609%.
No loans were granted to related individuals in 2022.
Data on groups of persons in 2022
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 Dec
2022
Repayments
in 2021
Total Board members
1,098
-
-
-
Members of the Supervisory Board
266
-
-
-
Members of the Supervisory Board
Committees
17
-
-
-
Other managerial staff employed
under contracts not subject to the
tariff part of the collective agreement
4,282
-
0
1
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
249
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 Dec
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
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 and the Company have not granted any advances or guarantees to the respective groups of persons
and have no liabilities to these persons, nor did they record any write-offs or waived amounts for these groups.
Remuneration of the members of the Management Board in 2022 – breakdown
in EUR
Salary
Variable
remunerat
ion*
Other
remunerat
ion
Reimburs
ement of
costs
Annual
leave pay
Insurance
premiums
Benefits
Voluntary
suppleme
ntary
pension
insurance
Total
gross**
Total
net***
Boštjan Košak
(4 Oct – 31 Dec)
40,228
0
0
664
502
10
1,898
726
44,028
20,792
Boštjan Škufca Zaveršek
(14 Nov – 31 Dec)
20,591
0
0
266
331
0
591
484
22,263
11,339
Špela Fortin
(1 Jan – 31 Dec)
145,686
18,321
0
1,541
1,924
1,013
6,387
2,904
177,776
81,135
Irma Gubanec
(12 Oct – 31 Dec)
32,699
0
0
675
502
81
0
726
34,683
18,347
Vesna Prodnik
(14 Nov – 31 Dec)
19,508
0
0
271
331
81
1,202
484
21,877
10,088
Barbara Galičič Drakslar
(1 Jan – 11 Oct)
114,251
11,913
80,582
1,171
1,443
790
5,414
2,420
217,984
97,350
Tomaž Jontes
(1 Jan – 1 Sep)
103,933
41,123
689
823
1,283
871
5,579
2,178
156,479
71,679
Cvetko Sršen
(1 Jan – 3 Oct)
123,058
14,107
83,048
1,303
1,443
465
5,695
2,420
231,539
103,000
Mija Štular
(1 Jan – 13 Nov)
146,148
12,753
0
1,127
1,924
544
6,790
2,904
172,190
86,048
Tomaž Seljak
(for 2020 and 2021)
0
10,264
0
0
0
0
0
0
10,264
4,723
Matjaž Beričič
(for 2020 and 2021)
0
5,061
0
0
0
0
0
0
5,061
2,957
Vida Žurga (for 2020)
0
2,939
0
0
0
0
0
0
2,939
1,717
Ranko Jelača
(for 2020)
0
718
0
0
0
0
0
0
718
419
Total
746,102
117,199
164,319
7,841
9,683
3,855
33,556
15,246
1,097,801
509,594
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
250
Remuneration of the members of the Management Board in 2021 – breakdown
in EUR
Salary
Variable
remuneration
*
Other
remunera
tion
Reimburs
ement of
costs
Annual
leave
pay
Insurance
premiums
Benefits
Volunt
ary
supple
mentar
y
pensio
n
insura
nce
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
Mija 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
37,961
14,035
893,378
400,816
* Variable remuneration refers to the part of the performance bonus for 2019, 2020 and 2021.
** 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 the 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.
Members of the Management Board were entitled to the attendance fees for performing the function of a
management board member in the subsidiary GVO as indicated below:
In 2022
in EUR
Meetings
Basic salary
Committees
Total
gross*
Total net**
External members
Vesna Prodnik (9 Nov – 31 Dec)
138
563
0
701
509
Mija Štular (1 Jan – 9 Nov)
660
4,365
0
5,025
3,654
Total
798
4,928
0
5,726
4,163
* The total gross amount includes the sum of all attendance fees, basic salaries for performing the function and payments for participating in
committees.
** The total net amount comprises the sum of net receipts.
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
251
In 2021
in EUR
Meetings
Basic salary
Committees
Total
gross*
Total net
Mija Štular (10 Mar – 31 Dec)
550
2,966
0
3,516
2,557
Total
550
2,966
0
3,516
2,557
* The total gross amount includes the sum of all attendance fees, basic salaries for performing the function and payments for participating in
committees.
** The total net amount comprises the sum of net receipts.
Remuneration of the Supervisory Board members in 2022 – breakdown
in EUR
Meetings
Basic
salary
Committees
Travel
expenses
Liability
insurance
Total
gross*
Total net**
External members
Žiga Debeljak (9 Sep – 31 Dec)
2,860
7,865
1,100
0
0
11,825
8,601
Iztok Černoša (1 Jan – 9 Sep)
2,915
16,878
1,540
0
620
21,953
15,515
Karla Pinter (1 Jan – 31 Dec)
5,775
19,940
1,320
0
620
27,655
19,663
Marko Boštjančič (9 Sep – 31 Dec)
2,860
5,833
1,100
1,731
0
11,524
8,382
Alenka Čok Pangeršič (9 Sep – 31 Dec)
2,860
5,396
660
0
0
8,916
6,484
Mateja Čuk Orel (9 Sep – 31 Dec)
2,860
5,916
1,100
0
0
9,876
7,183
Aleksander Igličar (1 Jan – 31 Dec)
5,775
21,000
2,904
0
620
30,299
21,586
Radovan Cerjak (1 Jan – 9 Sep)
2,915
15,672
1,540
0
620
20,747
14,639
Marko Kerin (1 Jan – 9 Sep)
2,915
16,644
3,564
0
620
23,743
16,818
Jurij Toplak (1 Jan – 9 Sep)
2,640
12,056
1,100
0
620
16,416
11,488
Internal members
Drago Kijevčanin (1 Jan – 31 Dec)
5,396
22,400
5,104
0
620
33,520
23,928
Dušan Pišek (1 Jan – 31 Dec)
5,775
19,104
220
0
620
25,719
18,255
Rok Pleteršek (2 Jun – 31 Dec)
4,180
9,755
220
0
0
14,155
10,295
Jana Žižek Kuhar (1 Jan – 2 Jun)
1,595
7,340
0
0
620
9,555
6,499
Total
51,321
185,799
21,472
1,731
5,580
265,903
189,336
* 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 2022
252
Remuneration of the Supervisory Board members in 2021 – breakdown
in EUR
Meetings
Basic
salary
Committees
Travel
expenses
Liability
insurance
Total
gross*
Total net**
External members
Iztok Černoša (22 Jan – 31 Dec)
5,500
23,328
2,420
0
689
31,937
22,727
Karla 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
Internal members
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.
Remuneration of the Supervisory Board members in 2022 – breakdown
in EUR
Meetings
Basic
salary
Committees
Travel
expenses
Liability
insurance
Total
gross*
Total net**
External Committee Members
Janez Bešter (28 Nov – 31 Dec)
0
467
0
0
0
467
339
Barbara Gorjup (1 Jan – 31 Dec)
0
5,600
2,684
0
0
8,284
6,025
Marko Kerin (1 Jan – 31 Dec)
0
5,600
2,464
0
0
8,064
5,865
Total
0
11,667
5,148
0
0
16,815
12,229
* 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 2021 – breakdown
in EUR
Meetings
Basic
salary
Committees
Travel
expenses
Total
gross*
Total net**
External Committee Members
Barbara Gorjup (22 Jun – 31 Dec)
0
3,442
1,672
0
5,114
3,719
Marko Kerin (11 Feb – 31 Dec)
0
5,975
3,124
0
9,099
6,618
Melita Malgaj (1 Jan – 6 Apr)
0
1,867
660
0
2,527
1,838
Barbara Nose (1 Jan – 11 Feb)
0
1,219
220
0
1,439
1,046
Gregor Rajšp (1 Jan – 6 Apr)
0
1,867
660
0
2,527
1,838
Alenka Stanič (1 Jan – 6 Apr)
0
1,867
660
0
2,527
1,838
Total
0
16,237
6,996
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.
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
253
For 2022, the members of the Company’s Supervisory Board received the following payments for carrying out
the functions of an audit committee in the company Soline:
In 2022
in EUR
Meetings
Basic salary
Committees
Travel
expenses
Total
gross*
Total net**
Marko Kerin (1 Jan – 31 Dec)
0
0
1,320
0
1,320
960
Barbara Gorjup (1 Jan – 31 Dec)
0
0
1,540
0
1,540
1,120
Drago Kijevčanin (1 Jan – 31 Dec)
0
0
1,540
0
1,540
1,120
Aleksander Igličar (1 Jan – 31 Dec)
0
0
1,540
0
1,540
1,120
Marko Kerin (1 Jan – 9 Sep)
0
0
1,320
0
1,320
960
Alenka Čok Pangeršič (14 Sep – 31 Dec)
0
0
220
0
220
160
Total
0
0
7,480
0
4,400
5,440
* 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.
In 2021
in EUR
Attendance
fees
Basic salary
Committees
Travel
expenses
Total
gross*
Total
net**
Aleksander Igličar (24 May – 31 Dec)
0
0
220
0
220
160
Barbara Gorjup (24 May – 31 Dec)
0
0
220
0
220
160
Marko Hočevar (24 May – 31 Dec)
0
0
220
0
220
160
Marko Kerin (24 May – 31 Dec)
0
0
220
0
220
160
Drago Kijevčanin (24 May – 31 Dec)
0
0
220
0
220
160
Total
0
0
1,100
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 includes the sum of all net receipts, together with travel expenses.
For 2022, the members of the Company’s Supervisory Board received the following payments for carrying out
the functions of an audit committee in the company Avtenta:
In 2022
in EUR
Meetings
Basic salary
Committees
Travel
expenses
Total
gross*
Total
net**
Marko Kerin (1 Jan – 9 Sep)
0
0
1,100
0
1,100
800
Aleksander Igličar (1 Jan – 31 Dec)
0
0
1,540
0
1,540
1,120
Drago Kijevčanin (1 Jan – 31 Dec)
0
0
1,540
0
1,540
1,120
Marko Kerin (1 Jan – 31 Dec)
0
0
1,320
0
1,320
960
Barbara Gorjup (1 Jan – 31 Dec)
0
0
1,540
0
1,540
1,120
Alenka Čok Pangeršič (14 Sep – 31 Dec)
0
0
440
0
440
320
Total
0
0
7,480
0
4,180
5,440
* 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.
The members of the Supervisory Board received no other remunerations.
Liabilities to related parties
The Telekom Slovenije Group and the Company Telekom Slovenija record liabilities to related parties arising
from receipts that have not yet been paid out, in amounts as follows:
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
254
in EUR thousand
Total amount of total
liabilities as at 31 Dec 2022
Total amount of total
liabilities as at 31 Dec 2021
Total Management Board members
171
197
Other managerial staff employed under contracts not
subject to the tariff part of the collective agreement
494
392
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.
Transactions with companies in the Group
All transactions with companies in the Group are performed under market conditions applicable for transactions
with unrelated parties.
The Company Telekom Slovenije
in EUR thousand
31 Dec 2022
31 Dec 2021
Receivables due from Group companies
Subsidiaries – gross amount
4,015
2,584
Subsidiaries – impairment
-17
-8
Subsidiaries – net amount
3,998
2,576
Borrowings to Group companies
Subsidiaries – gross amount
57,553
66,089
Subsidiaries – impairment
0
0
Subsidiaries – net amount
57,553
66,089
Liabilities to Group companies
Subsidiaries
26,721
26,041
in EUR thousand
I–XII 2022
I–XII 2021
Revenue from sales in the Group
15,829
10,424
Subsidiaries
15,829
10,424
Material purchase and services in the Group
21,247
12,833
Subsidiaries
21,247
12,833
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.
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
255
Inter-company prices are formed on the same basis as for other users.
As at the reporting date, no contract performance bonds were issued by Telekom Slovenije to its subsidiaries
(in 2021: EUR 434 thousand).
The company did not form an impairment for loans granted in 2022, as the estimated expected credit losses
are insignificant.
Loans granted to subsidiaries
in EUR thousand
31 Dec 2022
31 Dec 2021
GVO, d.o.o.
2,993
0
TSmedia, d.o.o.
290
400
IPKO d.o.o.
42,649
55,650
SOLINE d.o.o.
1,275
1,627
SIOL d.o.o., Zagreb
458
504
SiOL d.o.o. Sarajevo
4,413
4,715
Siol BEOGRAD
151
20
INFRATEL, d.o.o.
2,453
0
SIOL Priština
2,871
3,173
Total granted to subsidiaries
57,553
66,089
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
(http://www.sdh.si/sl-si/upravljanje-nalozb/seznam-nalozb).
The total value of transactions is outlined in the table below.
Telekom Slovenije Group
The Company Telekom
Slovenije
in EUR thousand
31 Dec 2022
31 Dec 2021
31 Dec 2022
31 Dec 2021
Outstanding trade receivables
4,726
4,717
4,247
4,247
Outstanding trade payables
4,871
4,867
4,830
4,830
VAT liabilities
3,706
3,791
3,695
3,695
Income tax payables
3,803
3,654
3,437
3,437
in EUR thousand
I–XII 2022
I–XII 2021
I–XII 2022
I–XII 2021
Sales revenue
17,849
17,580
15,839
15,839
Purchase costs of material and services
10,085
10,026
9,267
9,267
in EUR thousand
I–XII 2022
I–XII 2021
I–XII 2022
I–XII 2021
VAT payment
58,744
58,908
58,402
58,402
CIT payment
703
679
0
0
Dividends paid
19,687
19,687
19,687
19,687
All related party transactions are carried out under market conditions.
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
256
43. Auditor’s fee
Telekom Slovenije Group
The Company Telekom
Slovenije
in EUR thousand
2022
2021
2022
2021
Audit services
187
185
122
122
Other assurance engagements
8
8
8
8
Other non-audit services
11
13
0
0
Total auditor’s fees
181
206
130
130
44. Categories of financial instruments
The Group and the Company classified financial instruments into groups as shown in the table below.
Telekom Slovenije Group
The Company Telekom
Slovenije
in EUR thousand
31 Dec 2022
31 Dec
2021
31 Dec
2022
31 Dec
2021
Financial assets measured at amortised cost
Cash and cash equivalents
37,382
15,935
19,573
3,754
Bank deposits
800
702
0
0
Loans granted
25
82
57,578
66,171
Trade and other receivables
178,019
173,851
171,122
166,076
Financial assets measured at fair value through
other comprehensive income
Investments in shares and interests of companies
2,423
3,241
2,423
3,241
Financial liabilities at fair value through other
comprehensive income
Liabilities for interest rate swap
0
88
0
88
Financial liabilities measured at amortised cost
Trade payables
132,092
149,410
103,147
128,662
Borrowings
369,440
349,038
369,440
350,438
Other financial liabilities
2
2
0
0
The Group and the Company did not reclassify these instruments to other groups during the year.
45. 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.
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
257
Telekom Slovenije Group
The Company Telekom
Slovenije
in EUR thousand
31 Dec 2022
31 Dec 2021
31 Dec 2022
31 Dec 2021
Loans granted
25
82
57,578
66,171
Deposits
802
702
0
0
Trade and other receivables
176,931
174,244
170,130
166,556
- of which trade receivables
170,406
166,196
164,768
159,790
Cash and cash equivalents
37,382
15,935
19,573
3,754
TOTAL
215,140
190,963
247,281
263,481
Key credit risk of the Group and the company Telekom Slovenije arises mainly from non-payment of liabilities
by customers (retail) and by operators (wholesale). Trade receivables represent the maximum exposure to
credit risk. As at 31 December 2022, these amounted to EUR 170,406 thousand at the Group level, having
increased by EUR 4,210 thousand compared to the end of 2021. 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 introduced various procedures for managing receivables that include the monitoring of
business partners’ credit rating, collateralisation of receivables, monitoring of subscribers’ traffic, and the
collection of bad debts. The recovery procedure is conducted according to a pre-defined timeline (reminders
and disconnection) and through specialised outsourced operators. Telekom Slovenije requires prior
authorisation of individual clients 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 2022
31 Dec 2021
Gross
amount
Expected %
of credit
losses
Impairme
nt
Net
amount
Gross
amount
Expected %
of credit
losses
Impairmen
t
Net
amount
Total trade receivables
188,380
-17,974
170,406
183,132
-16,936
166,196
Trade receivables not past due
155,985
0.5%
-714
155,271
149,508
0.5%
-795
148,713
Past due
-up to and including 30 days
8,565
4%
-316
8,249
11,159
3%
-341
10,818
- from including 31 days to and including
60 days
2,990
11%
-318
2,672
3,591
7%
-269
3,322
- from and including 61 days to and
including 90 days
1,365
16%
-212
1,153
780
12%
-90
690
- from including 91 days to and including
180 days
2,078
45%
-941
1,137
1,448
44%
-633
815
- from including 181 days to and
including 365 days
2,297
55%
-1,265
1,032
2,010
53%
-1,065
945
- from and including 366 days up to two
years
5,484
84%
-4,605
879
5,427
85%
-4,604
823
- over two years
6,484
100%
-6,472
12
5,438
99%
-5,368
70
- trade receivables in insolvency
proceedings
3,132
100%
-3,131
1
3,771
100%
-3,771
0
Total trade receivables past due
32,395
-17,260
15,135
33,624
-16,141
17,483
Other trade receivables
6,525
0
6,525
8,056
-8
8,048
Total receivables
194,905
-17,974
176,931
191,188
0
-16,944
174,244
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
258
Maturity analysis of receivables of Telekom Slovenija as at the reporting date
31 Dec 2022
31 Dec 2021
in EUR thousand
Gross
amount
Expected
% of credit
losses
Impairme
nt
Net
amount
Gross
amount
Expected %
of credit
losses
Impairme
nt
Net
amount
Total trade receivables
178,525
-13,757
164,768
172,901
-13,111
159,790
Trade receivables not past due
151,819
0.5%
-724
151,095
148,256
0.5%
-799
147,457
Past due
-up to and including 30 days
7,793
4%
-312
7,481
6,995
5%
-338
6,657
- from including 31 days to and
including 60 days
2,725
11%
-300
2,425
2,765
9%
-262
2,503
- from and including 61 days to
and including 90 days
1,205
15%
-181
1,024
988
10%
-94
894
- from including 91 days to and
including 180 days
1,792
46%
-824
968
1,093
49%
-540
553
- from including 181 days to and
including 365 days
1,819
50%
-909
910
1,686
49%
-834
852
- from and including 366 days up to
two years
2,404
64%
-1,538
866
2,744
70%
-1,926
818
- over two years
6,462
100%
-6,462
0
5,242
99%
-5,184
58
- trade receivables in insolvency
proceedings
2,506
100%
-2,507
-1
3,132
100%
-3,134
-2
Total trade receivables past due
26,706
-13,033
13,673
24,645
-12,312
12,333
Other trade receivables
5,362
0
5,362
6,766
0
6,766
Total receivables
183,887
-13,757
170,130
179,667
-13,111
166,556
Expected credit losses arising from trade receivables not due are estimated at 0.50% (same as in 2021).
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 credit 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 2022, 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. Loans granted are disclosed in
more detail in Note 20 Other investments
Maturity of loans granted
Telekom Slovenije Group
The Company Telekom Slovenije
in EUR thousand
31 Dec 2022
31 Dec 2021
31 Dec 2022
31 Dec 2021
Past due
0
0
0
0
Not past due:
25
82
57,578
66,171
- in less than 3 months
7
15
3,212
2,604
- between 3 and 12 months
10
23
8,284
9,573
- between 1 and 2 years
6
19
14,332
9,336
- between 2 and 5 years
2
23
27,560
39,366
- over 5 years
0
2
4,190
5,292
Total
25
82
57,578
66,171
Liquidity risk
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
259
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.
The majority of the Group’s financial liabilities are accounted for by two non-current syndicated loans in the total
amount of EUR 269.7 million, non-current loan from the European Investment Bank in the amount of EUR 100
million and liabilities from lease in the amount of EUR 69.9 million and EUR 73.4 million at the Group and
Company level, respectively. The Group and the Company are regularly repaying their financing obligations.
In 2022, the Company Telekom Slovenije repaid a total of EUR 40.2 million of non-current loan obligations.
In order to ensure a high level of liquidity with banks, the Group and the Company Telekom Slovenije have
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 69 million at the end of
2022.
Maturity of liabilities of the Telekom Slovenije Group as at 31 Dec 2022 and 31 Dec 2021 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 2022
Loans and borrowings
8,505
137,413
37,817
96,473
132,639
412,847
370,087
Other financial liabilities
2
0
0
0
0
2
2
Trade and other
payables
89,528
34,387
3,669
443
4,065
132,092
132,092
Financial liabilities from
lease
5,541
6,695
12,046
23,504
37,206
84,992
69,945
Total
103,576
178,495
53,532
120,420
173,910
629,933
572,126
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
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
260
Maturity of liabilities of Telekom Slovenije as at 31 Dec 2022 and 31 Dec 2021 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 2022
Loans and borrowings
8,505
137,413
37,817
96,473
132,639
412,847
370,087
Trade and other
payables
87,396
11,905
3,278
443
125
103,147
103,147
Financial liabilities from
lease
6,194
8,195
10,211
26,011
36,394
87,005
73,398
Total
102,095
157,513
51,306
122,927
169,158
602,999
546,632
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
553,774
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 2022, 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 and the Company’s financial liabilities
109
as at 31 December 2022, liabilities from
borrowings, which bear interest at variable interest rates linked to 6-month Euribor, account for a 72.9% share.
The remaining liabilities arise from non-current loan with a fixed interest rate.
In order to partially hedge against interest exposure arising from the non-current syndicated loan, 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, which matures on 31 December 2025. As at 31 December 2022, the amount of hedged principal added
up to EUR 3.8 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 and the Company level, it has a fixed or hedged interest rate of 28.1 % of
financial debt arising from borrowings.
Exposure to interest rate risk
Telekom Slovenije Group
The Company Telekom
Slovenije
in EUR thousand
31 Dec 2022
31 Dec 2021
31 Dec 2022
31 Dec 2021
Financial instruments with variable
interest rate
Financial liabilities
265,824
298,352
265,824
298,352
Net financial liabilities
265,824
298,352
265,824
298,352
The table is exclusive of non-interest-bearing financial instruments and instruments bearing a fixed interest
109
Considered loan principals
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
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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
2022
Interest rate increase/decrease
Effect on profit before tax in EUR thousand
Telekom Slovenije Group
Telekom Slovenije, d.d.
EURO
+100 bt
-2,526
-2,526
EURO
-100 bt
2,658
2,658
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
EURIBOR interest rate values
EURIBOR
Value as at 31 Dec 2022
Value as at 31 Dec 2021
Change
(in p.p.)
6-month
2.752
-0.544
3.296
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
The Company Telekom
Slovenije
in EUR thousand
31 Dec
2022
31 Dec 2021
31 Dec 2022
31 Dec 2021
Borrowings and other financial liabilities
439,387
415,684
442,838
424,223
Less current investments, cash and cash
equivalents
-38,219
-16,675
-31,089
-15,931
Net financial liabilities
401,168
399,009
411,749
408,292
Equity
611,677
600,431
606,233
612,241
Total assets
1,275,338
1,250,339
1,223,290
1,237,941
Debt/equity ratio
65.6%
66.5%
67.9%
66.7%
Equity/total assets ratio
48.0%
48.0%
49.6%
49.5%
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
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46. 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 2022;
− consideration for the use of numbering resources for 2022;
− consideration based on a decision of 2013, valid until 2022;
− 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 2022 equalled EUR 3,128 thousand (in 2021 EUR 3,357
thousand), and of Telekom Slovenije EUR 1,497 thousand (in 2021 EUR 1,727 thousand).
The Group Telekom Slovenije's concessions for mobile phone services
Concession contract
Date of
authorization
Period
Consideration in EUR
thousand
Concession contract for the use of the radio
frequency spectrum for the UMTS/IMT-2000
services
31 May 2014
to 31 May 2029
91,870
Decision on the allocation of radio frequencies for
LTE 800 MHz, UMTS 2100 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 04 January
2016
to 04 January 2031
37,705
Decision on the allocation of radio frequencies at
the 700 MHz, 1500 MHz, 3600 Mhz and 26 Ghz
belt
15 Jun 2021
to 15 Jun 2036
28,617
Decision on the allocation of radio frequencies at
the 2100 Mhz band
22 Sep 2021
until 22 Sep 2036
19,302
Decision on the allocation of radio frequencies at
the 2100 Mhz band
9 Apr 2023
to 9 Apr 2036
4,329
Concession contract for the installation,
maintenance of and operation of the second
generation GSM in the mobile network in the
territory of Kosovo
6 3 2007
to 5 Mar 2022
Initial consideration
amount EUR 75,000
thousand
Renewal of permit for the frequency 900–1800
MHz in Kosovo
30 Jul 2019
to 30 Jul 2039
11,734
Granting of 2x5MHz (1730–1735 MHz & 1825–
1830MHz) license at the 1800 Mhz frequency
band
7 Jan 21
7 Jan 2039
1,355
Concessions shown in the table which refer to Slovenia are held by the Company Telekom Slovenije, whereas
concessions in Kosovo are held by the company IPKO.
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
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47. Events after the reporting date
January
At its 9th regular meeting held on Monday, 9 January 2023, Supervisory Board of Telekom Slovenije
gave its consent to the appointment of Vesna Lednik to the position of Director of TSinpo d. o. o., for a
four-year term of office commencing on 10 January 2023.
On 16 January 2023, the Company Telekom Slovenije received the Decision of the District Court in
Ljubljana, with which the court stopped the proceedings in which the companies POP TV d.o.o.
Ljubljana and Kanal A d.o.o. claimed damages from Telekom Slovenije with a counterclaim for the
payment of the dispute value of EUR 58,154 thousand with statutory interest. Stopping the proceedings
was the result of the withdrawal of the claim filed by Telekom Slovenije against the companies POP TV
d.o.o. Ljubljana and Kanal A d.o.o., and the withdrawal of the counterclaim filed against Telekom
Slovenije by the companies POP TV d.o.o. Ljubljana and Kanal A d.o.o.
February
On 10 February 2023, Vesna Prodnik, a member of the Management Board of Telekom Slovenije,
purchased 400 lots of the company's TLSG shares at a price of EUR 53.50 per share for a total value
of EUR 21,400. The purchase of the ordinary shares of TLSG was carried out on the Ljubljana Stock
Exchange. Following the transaction, Vesna Prodnik owns 400 shares with the ticker TLSG.
On 13 February 2023, Supervisory Board of Telekom Slovenije gave its consent to the appointment of
Matija Nendel as a Director of Avtenta d. o. o. , for a four-year term of office starting on 1 April 2023.
On 27 February 2023, the company Telkom Slovenije submitted an application for a subsidy under the
Act on aid to the economy to mitigate the effects of the energy crisis ('the Energy Crisis Act'). Pursuant
to Article 16(12) of the ZPGOPEK, if, from the entry into force of this Law in 2023, there are any
distributions of profits, purchases of own shares or own business interests, payments of bonuses to
management or part of performance-related remuneration to management, the company will be obliged
to notify the competent authority within two months of the payment at the latest. The funds received
must be repaid within 30 days of notification of the decision.
March
On 23 March 2023 Telekom Slovenije received from the Ljubljana District Court the compensatory
collective redress, which was lodged against the company by the PanSlovenian Stakeholders’
Association (PSA) for the compensation of a deprivation in the estimated value of EUR 122,689,762.25
with interest and other amounts. The company also received from the court the call to respond to the
lawsuit regarding the existence of the conditions for approving a compensatory collective redress. The
claim supposed to represent the deprivation that the subscribers of the company supposed to suffered
between 1 January 2018 and 1 December 2022.
On 31 March 2023 Telekom Slovenije received the decision of the Slovenian Competition Protection
Agency (hereinafter: AVK) with which AVK informs it that the procedure of establishing a violation of
Article 9 of the Prevention of Restriction of Competition Act has been stopped. Having completing the
new procedure, AVK issued a decision on 30 March 2023 on stopping the procedure with the
explanation that in the repeated procedure and following the court’s instructions it did not manage to
obtain evidence on the existence of an appropriate technical solution before 3 March 2005, and
therefore calculate the economic effect.
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9.3 Independent auditor’s report for the Telekom Slovenije Group and Telekom
Slovenije
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I
10. APPENDIX
10.1. 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
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 19 50
Website: www.gvo.si
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
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: www.tsmedia.si
Email: info@tsmedia.si
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
II
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
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
Tel.: +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: Str. Naum naumovski borce no. 50/2-12, SKOPJE –
CENTAR, CENTAR
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
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
III
10.2. 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
AVK
Slovenian Competition Protection
Agency
Javna agencija Republike Slovenije za
varstvo konkurence
BCaaS
Business Connect as a Service
Sodobna rešitev za upravljanje
dokumentarnega gradiva kot storitev
BCMS/SUNP
Business continuity management
system
Sistem upravljanja neprekinjenega
poslovanja
BSI
Brand Strength Index
Indeks moči znamke
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
CAGR
Compound Annual Growth Rate
Povprečni letni prirast
CAPEX
Capital Expenditure
Vrednost investicij
COBN/GOŠO
Construction of open broadband
network
Gradnja odprtega širokopasovnega
omrežja (bele lise – subvencionirano s
sredstvi EU)
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 uporabnikov
CSI
Customer Satisfaction Index
Indeks zadovoljstva uporabnikov
CSOC/OCKV
Cyber Security Operations Center
Operativni center kibernetske varnosti
CSP
Cloud Solution Provider
Ponudnik rešitev v oblaku
CSRD
Corporate Sustainability Reporting
Directive
Direktiva o trajnostnem poročanju
CWDM
Coarse Wavelength Division
Multiplexing
Optična tehnologija, ki omogoča širjenje
do 8 prenosnih kanalov po enem optičnem
vlaknu, vsak kanal po ločeni valovni
dolžini, oziroma barvi.
DDOS
Distributed Denial of Services
Porazdeljena zavrnitev storitve
DDV/VAT
Value added tax
Davek na dodano vrednost
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
EDI
Electronic Data Interchange
Elektronska izmenjava podatkov
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
IV
Abbreviation
English term
Slovene translation
EECC
European Electronic Communications
Code
European Electronic Communications
Code
EEMS
Efficient Energy Management System
Učinkovit sistem upravljanja z energijo
EFQM
European Foundation for Quality
Management
Evropska nagrada za poslovno odličnost
EMS
Electromagnetic radiation
Elektromagnetna sevanja
ERP
Enterprise resource planning
Poslovni informacijski sistem
ESMA
European Securities and Markets
Authority
Evropski nadzorni organ za vrednostne
papirje in trge
ETNO
European Telecommunications
Network Operators
Evropsko združenje telekomunikacijskih
operaterjev
EU
European Union
Evropska unija
FTTH
Fibre To The Home
Optično vlakno do doma
FTTx
Fibre To The Exchange
Optika do X
GDP
Gross Domestic Product
Bruto domači proizvod
GRI
Global Reporting Initiative
Pobuda za globalno poročanje
IaaS
Infrastructure as a Service
Infrastruktura kot storitev
ICNIRP
International Commission on Non-
Ionizing Radiation Protection
Mednarodna komisija za varstvo pred
neionizirnimi sevanji
ICT/IKT
Information and Communication
Technologies
Informacijsko komunikacijske tehnologije
IFRS/MSRP
International Financial Reporting
Standards
Mednarodni standardi računovodskega
poročanja
IMAD/UMAR
Institute of Macroeconomic Analysis
and Development
Urad za makroekonomske analize in
razvoj
IoT
Internet of Things
Internet stvari
IPTV
IP television
Televizija prek internetnega protokola
ISMS/SVVI
Information Security Management
System
Sistem vodenja varovanja informacij
ISO
International Organization for
Standardization
Mednarodna organizacija za
standardizacijo
IT
Information technology
Informacijska tehnologija
KDD
Central Securities Clearing Corporation
Centralna klirinško depotna družba
KEDS
Kosovo Energy Distribution Services
Kosovsko elektrodistribucijsko podjetje
KPI
Key Performance Indicators
Ključni kazalniki poslovanja
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
MSAN
Multi-Service Access Node
Večnamenski dostopni node
NEO
Smart life platform that connects the
best home and entertainment solutions
in one place.
Platforma za pametno življenje, ki na
enem mestu povezuje najboljše rešitve za
dom in zabavo
NFD
Net financial debt
Neto finančni dolg
NPS
Net Promoter Score
Kazalnik lojalnosti uporabnikov
NSA
Non-stand-alone
5G nesamostojna arhitektura
OPEX
Operational Expenditure
Stroški poslovanja brez amortizacije
OSS
Operational support system
Sistem za podporo delovanja
OŠO/OBN
Open broadband networks
Odprta širokopasovna omrežja
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Abbreviation
English term
Slovene translation
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
POP
Point of Presence
Točka prisotnosti
Roam like at home
Gostuj kot doma
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
SaaS
Software as a Service
Programska oprema kot storitev
SAP
Systems Applications and Products
Programska oprema za posel
SAPaaS
SAP as a Service
Aplikacija SAP
SASB
Sustainability Accounting Standards
Board
Odbor za trajnostne računovodske
standarde
SDG
Sustainable Development Goals
Cilji trajnostnega razvoja
SDH
Slovenski državni holding
SLA
Service Level Agreement
Sporazum o ravni zagotavljanja storitve
SMS
Short Message Service
Storitev kratkih sporočil
SPLA
Service Provider Licence Agreement
Licenčni sporazum za ponudnika storitev
SSNP/KPSS
Sečovlje Salina Nature Park
Krajinski park Sečoveljske soline
SURS
Statistical Office of the Republic of
Slovenia
Statistični urad Republike Slovenije
TDM
Time Division Multiplex
Časovni multipleks, sistem s
porazdeljevanjem časa
TISAX
Trusted Information Security
Assessment Exchange
Mehanizem za ocenjevanje in izmenjavo
informacijske varnosti v avtomobilski
industriji.
TLSG
Shares of Telekom Slovenije
Delnica družbe Telekom Slovenije
TOM Telephone
Phone for children and adolescents
Telefon za otroke in mladostnike
TSLO-CERT
Telekom Slovenije’s Computer
Emergency Response Team
Odzivni center za kibernetsko varnost
Telekoma Slovenije
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 VALÚ.
VDSL
Very High Speed Digital Subscriber
Line
Digitalni naročniški vod z zelo visokimi
hitrostmi
VNF
Virtual Network Function
Funkcija navideznega omrežja
VoIP
Voice over IP
Govor prek IP-protokola
VPN
Virtual private network
Navidezno zasebno omrežje
WB6
Western Balkan 6 Initiative
Dogovor Zahodni Balkan 6
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 uporabnika in k njemu v
enakih hitrostih
ZB
Western Balkans
Zahodni Balkan
ZDUS
Association of Pensioner Societies of
Slovenia
Zveza društev upokojencev Slovenije
ZEK-om-2
Electronic Communications Act
Zakon o elektronskih komunikacijah
ZGD
Companies Act
Zakon o gospodarskih družbah
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Abbreviation
English term
Slovene translation
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
ZVOP
Personal Data Protection Act
Zakon o varstvu osebnih podatkov
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
VII
10.3. 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.
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
We eliminate the effects of one-off
events for the sake of consistency
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
VIII
Alternative
performance measure
Calculation methodology
Selection of measure
one-time impairments of assets,
adjustments for IFRS 16, etc.; stated under
the calculation table.
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.
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,
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
IX
Alternative
performance measure
Calculation methodology
Selection of measure
assuming the same level of
operations and profitability
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 the 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
proportion 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.
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
X
10.4. Commitments and membership in associations
110
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)
• 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 directors, 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-
innovation 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
• Trusted Introducer: Directory: TSLO-CERT
(trusted-introducer.org)
Social, environmental and economic initiatives in
which Telekom Slovenije 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
110
GRI 2-28
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
XI
10.5. Content according to GRI Reporting Standards
Statement of use
The Telekom Slovenije Group reported in accordance with the GRI
standards for the period 1 January 2022 to 31 December 2022.
GRI 1 used
GRI 1: Foundation 2021
Applicable GRI Sector
Standard(s)
GRI G4 – Media, GRI 2002 – Telecommunications
GRI standard
Description of
disclosure
Section/page
Omitted requirements
Reason and explanation for
omission
GENERAL DISCLOSURES
Organisation and its reporting practices
2-1
Organisational details
1.1/2-3
6./61-65
2-2
Entities included in
the organisation’s
sustainability
reporting
1.2/4
2-3
Reporting period,
frequency and
contact point
1.1/2-3
1.2/4
2-4
Restatements of
information
1.2/4
2-5
External assurance
of reporting
Annual reports have been
regularly handed over to
external verification since
2009.
In 2022, we have not
decided to verify
sustainability reporting, and
we will do so for calendar
year 2023.
2-6
Activities, value chain
and other business
relationships
6./61-65
7.6.1/91-95
7.6.2/96-104
8.3/154-156
2-7
Employees
8.2.3/137-153
2-7-b-iii
Not relevant.
Telekom Slovenije Group
companies do not have
non-guaranteed hours
employees.
2-8
Workers who are not
employees
Data not
available/incomplete.
Data not
available/incomplete.
Management and governance
2-9
Governance structure
and composition
5.3/40-56
Responsibility relating to the
environment is defined in
the scope of the ISO 14001
standard.
2-10
Nomination and
selection of the
highest governance
body
5.3/40-56
2-11
Chair of the highest
governance body
5.3/40-56
2-12
Role of the highest
governance body in
overseeing the
management of
impacts
8.1.2/115-122
2-13
Delegation of
responsibility for
managing impacts
8.1.2/115-122
2-14
Role of the highest
governance body in
Telekom Slovenije Group's
annual report is integrated
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
XII
sustainability
reporting
and includes information on
sustainable business. The
report is considered and
confirmed by the
Management Board and the
Supervisory Board of
Telekom Slovenije.
2-15
Conflicts of interest
5.3/40-56
2-16
Communication of
critical concerns
8.1.2/115-122
2-17
Collective knowledge
of the highest
governance body
Data not available.
More comprehensive data
will be obtained in 2023.
2-18
Evaluation of the
performance of the
highest governance
body
5.3/40-56
2-19
Remuneration
policies
5.3/40-56
2-20
Process to determine
remuneration
5.3/40-56
2-21
Annual total
compensation ratio
5.3/40-56
Strategies, polices and practices
2-22
Statement on
sustainable
development strategy
2/22-24
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
https://www.telekom.si/en/a
bout-us/company/strategic-
objectives).
2-23
Policy commitments
4.1/27
8.4/157-166
8.1.2/115-122
2-24
Embedding policy
commitments
8.1.2/115-122
8.4/157-166
2-25
Processes to
remediate negative
impacts
8.1.2/115-122
2-26
Mechanisms for
seeking advice and
raising concerns
8.1.2/115-122
2-27
Compliance with laws
and regulations
8.1.2/115-122
2-28
Membership in
associations
10.4/X
Stakeholder engagement
2-29
Approach to
stakeholder
engagement
1.5/12-15
6./61,65
8.2.2/129-136
8.2.3/137-153
2-30
Collective bargaining
agreements
8.2.3/137-153
GRI 3: Material topics
3-1
Process to determine
material topics
1.3/5-7
3-2
List of material topics
1.3/5-7
ECONOMIC IMPACTS
GRI 201: Economic performance 2016
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
XIII
3-3
Management of
material topics
4.3/29-30
201-1
Direct economic
value generated and
distributed
– revenue: 1.6/16-19
7.3/85-87, 7.6/91
– donations and other
investments in social
environment:
8.2.1/127-128
We only report on
taxes for the
Telekom Slovenije
Group.
201-2
Financial implications
and other risks and
opportunities for the
organisation’s
activities due to
climate change
7.2/72-74
We do not report
on financial
consequences.
201-3
Defined benefit plan
obligations and other
retirement plans
8.2.3/137-153
GRI 202: Market presence 2016
3-3
Management of
material topics
4.3/29-30
202-1
Ratios of standard
entry level wage by
gender compared to
local minimum wage
8.2.3/137-153
GRI 203: Indirect economic impacts 2016
3-3
Management of
material topics
- investments in fixed
assets: 7.5/90,
- research and
development of
networks: 8.1.1/108-
114
203-1
Development and
impact of significant
infrastructure
investments and
services supported
by the organisation
7.5/90
8.1.1/108-114
GRI 204: Procurement practices 2016
3-3
Management of
material topics
8.3/154-156
204-1
Proportion of
spending on local
suppliers
8.3/154-156
GRI 205: Anti-corruption 2016
3-3
Management of
material topics
8.1.2/115-122
205-2
Communication and
training about anti-
corruption policies
and procedures
8.1.2/115-122
The number of
hours is reported
for Telekom
Slovenije.
205-3
Confirmed incidents
of corruption and
actions taken
8.1.2/115-122
3-3
Management of
material topics
8.1.2/115-122
206-1
Number of legal
proceedings for anti-
competitive
behaviour, anti-trust
and monopoly
practices and their
outcomes
8.1.2/115-122
GRI 207: Tax 2019
3-3
207-1
Approach to tax
Management of
material topics
8.1.2/115-122
We do not report
on the evaluation
of the approach to
the management
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
XIV
of taxes or on the
link between the
management of
tax liabilities and
sustainable
development.
207-2
Tax governance,
control and risk
management
8.1.2/115-122
Tax-related
disclosures are
verified by an
independent
external auditor.
The auditor’s
opinion can be
found on page 254
of the accounting
report.
207-3
Stakeholder
engagement
8.1.2/115-122
We include
stakeholders and
tax-related
regulatory bodies
in the process of
fulfilling tax
obligations.
207-4
Country-by-country
reporting
Note 5 in the
accounting report
(composition of the
Telekom Slovenije
Group), pp. 201-204,
and Note 13
Corporate income tax,
deferred tax assets
and liabilities, p. 210.
ENVIRONMENTAL IMPACTS
GRI 302: Energy 2016
3-3
Management of
material topics
8.4/157-166
The area of energy
is governed in
Slovenia by the
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
8.4/157-166
We report on
electricity
consumption in
kWh for Telekom
Slovenije. We
report on the
consumption of
heating fuel in
euros. We do not
report on energy
sources consumed
(renewable and
non-renewable
sources). We use
electricity
produced by solar
plants strictly for
own needs.
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
XV
302-4
Reduction of energy
consumption
8.4/157-166
We report the
relevant reductions
in consumption for
Telekom Slovenije.
GRI 303: Waste and effluents 2018
3-3
Management of
material topics
8.4/157-166
303-1
Interactions with
water as a shared
resource
8.4/157-166
We only report on
how water is
withdrawn and
discharged.
303-2
Management of
water discharge-
related impacts
8.4/157-166
We do not report
on the
methodology/stan
dards used to
determine the
consumption and
quality of the
discharge of water.
303-3
Water withdrawal
8.4/157-166
GRI 304: Biodiversity 2016
3-3
Management of
material topics
8.4/157-166
304-1
Location and size of
land managed in, or
adjacent to, protected
areas and areas of
high biodiversity
value outside
protected areas
8.4/157-166
We report on the
location and size
of land managed
by the company in
protected natural
areas.
304-3
Habitats protected or
restored
8.4/157-166
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
8.4/157-166
GRI 305: Emissions 2016
3-3
Management of
material topics
8.4/157-166
We control the
evaluation of the
approach in
accordance with
the ISO 14001
standard.
305-1
Direct greenhouse
gas emissions
(Scope 1)
8.4/157-166
305-2
Energy indirect
(Scope 2) GHG
emissions
8.4/157-166
305-3
Other indirect (Scope
3) GHG emissions
8.4/157-166
GRI 306: Waste 2020
3-3
Management of
material topics
8.4/157-166
We control the
evaluation of the
approach in
accordance with
the ISO 14001
standard.
306-1
Waste generation
and significant waste-
related impacts
8.4/157-166
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
XVI
306-2
Management of
significant waste-
related impacts
8.4/157-166
306-3
Waste generated
8.4/157-166
SOCIAL IMPACTS
GRI 401: Employment 2016
3-3
Management of
material topics
8.2.3/137-153
We do not report
on the evaluation
of the
management
approach.
401-1
New employee hires
and employee
turnover
8.2.3/137-153
Data by gender
are not disclosed.
401-2
Benefits provided to
full-time employees
that are not provided
to temporary or part-
time employees
8.2.3/137-153
401-3
Return to work and
retention rates after
parental leave, by
gender
8.2.3/137-153
We report on the
number and
proportion of
employees who
took advantage of
and returned from
parental leave by
gender.
GRI 402: Labour/management relations 2016
3-3
Management of
material topics
8.2.3/137-153
402-1
Minimum notice
period regarding
significant
operational changes,
including whether this
is specified in the
collective agreement
8.2.3/137-153
Deadlines for
notifying
employees are in
line with valid
legislation and are
not included in the
collective
agreement.
GRI 403: Occupational health and safety 2018
3-3
Management of
material topics
8.2.3/137-153
403-1
Occupational health
and safety
management system
8.2.3/137-153
403-2
Hazard identification,
risk assessment and
incident investigation
8.2.3/137-153
We only report on
the identification of
work-related
hazards The
Health Committee
monitors and
handles
recommendations
to improve the
safety and health
of employees.
403-3
Occupational health
services
8.2.3/137-153
403-4
Worker participation
in the development,
implementation and
evaluation of the
occupational health
and safety system
8.2.3/137-153
403-5
Training in the area
of occupational
health and safety
8.2.3/137-153
403-6
Promotion of health
8.2.3/137-153
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
XVII
403-7
Prevention and
mitigation of
occupational health
and safety impacts
directly linked to a
company’s services
and products
We define
electromagnetic
radiation as one of
the more
significant impacts
of our operations.
We inform
employees about
this topic via the
intranet and users
via brochures at
points of sale.
403-8
Workers covered by
an occupational
health and safety
management system
8.2.3/137-153
403-9
Number of work-
related injuries and
rate
8.2.3/137-153
Reporting relates
to the number of
injuries.
GRI 404: Training and education 2016
3-3
Management of
material topics
8.2.3/137-153
404-1
Average hours of
training per employee
by gender and by
employee category
8.2.3/137-153
We report the
absolute number
of hours for the
number of training
hours by employee
category.
404-2
Programmes for
training and lifelong
learning
8.2.3/137-153
404-3
Percentage of
employees receiving
regular performance
and career
development reviews
by gender
8.2.3/137-153
We do not report
by employee
category. We do
not report by
gender, as we do
not make a
distinction in this
regard.
GRI: 405: Diversity and equal opportunity 2016
3-3
Management of
material topics
8.1.2/115-122
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)
5.3/40-56,
8.2.3/137-153
We do not report
by minorities, as
we do not make a
distinction in this
regard.
We do not report
data regarding
employees by age.
405-2
Ratio of basic salary
and remuneration of
women to men, by
significant locations
of operation
8.2.3/137-153
GRI 406: Non-discrimination 2016
3-3
Management of
material topics
8.1.2/115-122
406-1
Total number of
incidents of
discrimination and
corrective actions
taken
8.2.3/137-153
GRI 415: Public policy 2016
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
XVIII
3-3
Management of
material topics
8.1.2/115-122
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).
415-1
Political contributions
8.1.2/115-122
GRI 417: Marketing and labelling 2016
3-3
Management of
material topics
8.2.2/129-136
We do not report
on product
marking.
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
8.2.2/129-136
GRI 418: Customer privacy 2016
3-3
Management of
material topics
8.1.2/115-122
418-1
Substantiated
complaints
concerning breaches
of customer privacy
and losses of
customer data
8.1.2/115-122
SPECIFIC SECTOR INDICATORS (GRI G4) – MEDIA
Accessibility to media content
DMA
8.2.2/129-136
G4-M4
Measures to improve
accessibility to media
content and the
protection of
vulnerable audiences
8.2.2/129-136
SPECIFIC SECTOR INDICATORS GRI 2002 – TELECOMMUNICATIONS
Internal operations
IO1
Infrastructure
investments in the
telecommunications
network by region
7.5/90
8.1.1/108-114
IO3
Health and safety
measures for field
personnel
8.2.3/137-153
Provision of access to ICT products and services
PA1
Policies and
practices for
providing access to
the
telecommunications
8.2.2/129-136
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
XIX
infrastructure,
products and
services to the
population in remote,
less populated
regions
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
8.2.2/129-136
PA4
Quantitative level of
available
telecommunication
products and
services in operating
regions
- number of
connections:
7.6.2/96-104
- network reliability
and availability:
8.1.1/108-114
- coverage of
population: 8.2.2/129-
136
PA6
Programmes for
providing and
maintaining
telecommunication
links and services in
extraordinary
circumstances and in
the event of natural
disasters
8.1.1/108-114
We manage
emergencies with
the business
continuity
management
system.
PA8
Policies and
practices to publicly
communicate on
EMR-related issues
8.4/157-166
PA10
Initiatives to ensure
the clarity of charges
and tariffs
8.2.2/129-136
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).
7.6/91-105
8.4/157-166
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
8.4/157-166
TC-TL-130a.1
Competitive
behaviour &
open internet
Total amount of monetary losses as a result of
legal proceedings associated with
anticompetitive behaviour regulations
8.1.2/115-122
TC-TL-520a.1
Average actual sustained download speed of
owned and commercially-associated content
8.1.1/108-114
TC-TL-520a.2
System average interruption frequency and
customer average interruption duration
8.1.1/108-114
TC-TL-550a.1
Annual Report of the Telekom Slovenije Group and Telekom Slovenije, d. d., for 2022
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Managing
technology
disruptions
Systems to provide unimpeded service during
service interruptions
We manage
emergencies with the
business continuity
management system.
TC-TL-550a.2
Product end-
of-life
management
Quantity of materials recovered through take
back programmes, percentage of recovered
materials that were used, reused, recycled
and landfilled
Not available.
TC-TL-440a.1
Data privacy
Description of policies and practices relating to
behavioural advertising and customer privacy
8.1.2/115-122
TC-TL-220a.1
Total amount of monetary losses as a result of
legal proceedings associated with customer
privacy
8.1.2/115-122
TC-TL-220a.3
Number of law enforcement requests for
customer information, number of customers
whose information was requested
8.1.2/115-122
TC-TL-220a.4
Data security
Number of personal data breaches
8.1.2/115-122
TC-TL-230a.1
Description of approach to identifying and
addressing data security risks, including use
of cybersecurity standards
8.1.2/115-122
TC-TL-230a.2
Data
regarding
operations
Number of wireless subscribers
7.6.2/96-104
TC-TL-000.A
Number of wireline subscribers
7.6.2/96-104
TC-TL-000.B
Number of broadband subscribers
7.6.2/96-104
TC-TL-000.C