Annual report of the
Telekom Slovenije Group and
Telekom Slovenije, d.d.
for 2023
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
Contents
1 THE TELEKOM SLOVENIJE GROUP IN 2023 ..................................................................................3
1.1 About the Telekom Slovenije Group .............................................................................................3
1.2 Operations of the Telekom Slovenije Group in 2023 ..................................................................5
1.3 Significant achievements of the Telekom Slovenije Group in 2023 ..........................................9
2 LETTER FROM THE PRESIDENT OF THE MANAGEMENT BOARD ........................................... 11
Statement of responsibility of the Management Board ................................................................... 14
3 LETTER FROM THE PRESIDENT OF THE SUPERVISORY BOARD ........................................... 15
4 DEVELOPMENT STRATEGY AND PLANS .................................................................................... 16
4.1 Business model ........................................................................................................................... 16
4.2 Strategy of the Telekom Slovenije Group for the period 2024 to 2028 .................................. 17
4.3 Achievement of planned objectives by the Telekom Slovenije Group in 2023 ..................... 21
5 CORPORATE GOVERNANCE STATEMENT ................................................................................. 23
5.1 Corporate Governance Policy .................................................................................................... 23
5.2 Statement of compliance with the Code ................................................................................... 24
5.3 Management and supervisory bodies ....................................................................................... 25
5.4 Other explanations in accordance with the Companies Act ................................................... 40
5.5 Statement regarding the external assessment of the corporate governance statement for the
2023 annual report ..................................................................................................... 43
6 SHARE TRADING AND OWNERSHIP STRUCTURE ..................................................................... 44
7 OPERATIONS OF THE TELEKOM SLOVENIJE GROUP IN 2023 ................................................ 49
7.1 Business environment and trends in the sector ...................................................................... 49
7.1.1 Impact of the macroeconomic environment on operations ............................................ 49
7.1.2 Comparison of the Slovenian telecommunications sector with the EU ......................... 51
7.1.3 Telecommunications sector in Kosovo .......................................................................... 56
7.2 Risk management ........................................................................................................................ 58
7.3 Performance of the Telekom Slovenije Group .......................................................................... 63
7.4 Financial performance of the Telekom Slovenije Group ......................................................... 66
7.5 Investments .................................................................................................................................. 68
7.6 Development of the network, technologies and services ....................................................... 69
7.7 Marketing and sales .................................................................................................................... 76
7.7.1 Market and market shares in key service segments ...................................................... 76
7.7.2 Sales of the Telekom Slovenije Group ........................................................................... 77
7.7.3 Brands and market communications .............................................................................. 84
8 SUSTAINABLE OPERATIONS OF THE TELEKOM SLOVENIJE GROUP .................................... 91
8.1 Management of sustainability at the Telekom Slovenije Group ............................................. 91
8.1.1 Policy and guidelines governing sustainable operations ............................................... 91
8.1.2 Impacts of the Telekom Slovenije Group’s operations .................................................. 92
8.1.3 Inclusion and participation of stakeholders .................................................................... 97
8.1.4 About the annual report................................................................................................ 100
8.1.5 Statement regarding the non-financial operations of the Telekom Slovenije Group for
2023 ............................................................................................................................. 100
8.2 Environmental aspects ............................................................................................................. 101
8.2.1 Impacts on the natural ecosystem ............................................................................... 101
8.2.2 Biodiversity at the Sečovlje saltpans ............................................................................ 109
8.3 Social aspects ............................................................................................................................ 113
8.3.1 Support to local communities ....................................................................................... 113
8.3.2 Users ............................................................................................................................ 115
8.3.3 Employees ................................................................................................................... 121
8.3.4 Supply chain ................................................................................................................. 137
8.4 Governance aspects .................................................................................................................. 140
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
8.4.1 Compliance and integrity.............................................................................................. 140
8.4.2 Respect for human rights ............................................................................................. 144
8.4.3 Taxes and auditing ....................................................................................................... 144
8.4.4 Regulation of electronic communications .................................................................... 145
8.4.5 Quality management systems ...................................................................................... 146
8.4.6 Disclosures of indicators for economic activities that are included in the EU Taxonomy
149
9 FINANCIAL REPORT OF THE TELEKOM SLOVENIJE GROUP AND THE COMPANY TELEKOM
SLOVENIJE, D.D., FOR THE YEAR 2023 ..................................................................................... 155
9.1. Financial statements of the Telekom Slovenije Group and Telekom Slovenije .................. 156
9.2. Notes to the consolidated financial statements of the Telekom Slovenije Group and the
separate financial statements of Telekom Slovenije ........................................... 164
9.3. Independent auditor’s report for the Telekom Slovenije Group and the company Telekom
Slovenije ................................................................................................................... 245
10 ANNEXES ............................................................................................................................................I
10.1 Telekom Slovenije Group subsidiaries .........................................................................................I
10.2 Alternative Performance Measures .............................................................................................III
10.3 Commitments and membership in associations ....................................................................... VI
10.4 Content according to GRI Reporting Standards ...................................................................... VII
10.5 Abbreviations of technical terms ............................................................................................ XVIII
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Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
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Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
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Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
1 THE TELEKOM SLOVENIJE GROUP IN 2023
1.1 About the Telekom Slovenije Group
1
Telekom Slovenije, d.d. (hereinafter: Telekom Slovenije) is the leading Slovenian provider of the most
advanced ICT services and solutions. The Company continuously ensures the development and
introduction of new innovative technologies. It provides subscribers an excellent user experience and
superior services that match their needs and expectations. Users rate Telekom Slovenije’s network the
best in Slovenia (source: Brand Track, autumn 2023).
The Telekom Slovenije Group operates in South-East Europe. IPKO is the leading provider of mobile
and fixed broadband services in Kosovo, while the Group is also present via its subsidiaries in 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 and services,
• 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 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
X: @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
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Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
Markets and companies of the Telekom Slovenije Group
3
The Telekom Slovenije Group has companies in seven countries in South-East Europe. The composition
of the Telekom Slovenije Group and participating interests as at 31 December 2023 are presented in
the picture below, and in more detail on the website https://www.telekom.si/o-podjetju/skupina-telekom-
slovenije/odvisne-druzbe.
Composition of Telekom Slovenije as at 31 December 2023
With the deletion from the business register in Germany on 25 September 2023, the liquidation of GVO
Telekommunikation GmbH was completed. That company was owned by GVO, d.o.o. There were no
other changes in the composition of the Telekom Slovenije Group or in the ownership of subsidiaries in
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 one or both parents, or who
are seriously ill. The foundation’s funds are contributed voluntarily by the employees of Slovenian
Telekom Slovenije Group companies.
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Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
1.2 Operations of the Telekom Slovenije Group in 2023
Performance indicators
in EUR thousand and %
2023 /
31
December
2023
2022 /
31
December
2022
Index
23/22
Total operating revenues
708,167
658,953
107
EBITDA
228,569
216,452
106
EBITDA margin = EBITDA / sales revenue
32.9%
33.2%
99
EBIT
64,138
50,362
127
Return on sales = EBIT / sales revenue
9.2%
7.7%
120
Net profit from continuing operations
47,065
37,506
125
Assets
1,317,866
1,275,338
103
Equity
658,638
611,677
108
Return on equity (ROE)
7.4%
6.2%
120
Equity ratio
50.0%
48.0%
104
Net financial debt
355,737
401,168
89
Net financial debt / EBITDA
1.6
1.9
84
Investments (CAPEX)
188,037
167,791
112
Number of employees as at the last day of the period
3,253
3,262
100
Investments as a proportion of operating revenues
26.6%
25.5%
104
Definitions can be found in point 10.2 Alternative performance measures.
Number of users and connections
31
December
2023
31
December
2022
Index
23/22
Mobile telephony
1,908,571
1,842,444
104
Broadband connections
299,506
297,895
101
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Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
Operating revenues
Earnings before interest, taxes, depreciation and amortisation (EBITDA)
Operating profit and net profit from continuing operations
654
659
708
0
100
200
300
400
500
600
700
800
2021 2022 2023
in EUR million
220,8
216,5
228,6
0
50
100
150
200
250
300
2021 2022 2023
in EUR million
51,7
50,4
64,1
37,9
37,5
47,1
0
10
20
30
40
50
60
70
2021 2022 2023
in EUR million
EBIT Net income
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Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
Structure of equity and liabilities, and net financial debt
Investments and investment as a proportion of operating revenues
600
612
659
650 664 659
399
401
356
0
50
100
150
200
250
300
350
400
450
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2021 2022 2023
NFD
in EUR million
Equity (in EUR million) Liabilities (in EUR million)
Net financial debt (NFD) (in EUR million)
208
168
188
31,9%
25,5%
26,6%
0%
5%
10%
15%
20%
25%
30%
35%
0
50
100
150
200
250
2021 2022 2023
in EUR milion
Investments Proportion of operating revenues in %
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Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
Indicators of the sustainable (ESG) operations of the Telekom Slovenije Group
2023
2022
Index
23/22
Environmental indicators
Electricity consumption (in million kWh)
87
90
97
Energy intensity (in MWh/EUR million)
125
138
91
Carbon footprint per employee at Telekom Slovenije (in tonnes of
CO
2eq
)
11.62
12.72
91
Total waste (in tonnes)
4,103
6,710
61
Use of fuel for company cars (in litres)
1,390,733
1,411,536
99
Social indicators
Number of employees
3,253
3,262
100
Average age of employees
44
44
100
Proportion of the under-represented gender
33.0%
32.7%
101
Number of employees with a disability
92
97
95
Employee turnover
7.6%
7.4%
103
Number of education and training hours per employee
26.3
27.2
97
Proportion of employees with a master’s degree and doctorate
5.3%
5.6%
95
Coverage of the Slovenian population with 5G technology
60.7%
40.0%
152
Coverage of the Slovenian population with 4G technology
97.5%
97.0%
101
Complaint rate as a proportion of all issued invoices
0.65%
0.53%
123
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)
88%
90%
98
Proportion of suppliers registered as sheltered workshops
0.46%
0.43%
107
Governance indicators
Value added (in EUR thousand)
354,697
334,310
106
Value added per employee (in EUR)
108,886
102,142
107
Proportion of the under-represented gender on Telekom Slovenije’s
Management Board
40%
40%
100
Proportion of the under-represented gender on Telekom Slovenije’s
Supervisory Board
33%
33%
100
Average age of members of Telekom Slovenije’s Management Board
50
48
105
Personal data protection (number of inspections by Information
Commissioner)
1
3
33
Protection of privacy (number of reports of potential breaches of
customer’s privacy)
123
116
106
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Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
1.3 Significant achievements of the Telekom Slovenije Group in 2023
• ‘Immediate connection’ to the internet and TV
Because we do not compromise, we constantly improve the user experience. We facilitate the
connection of subscribers to the internet and TV immediately following the conclusion of an
agreement via mobile technology. Until now, the solution was available primarily to users in areas
where setting up a fixed connection was not possible, but a mobile signal was available. The
development of a high-capacity, highly stable and scalable mobile network means the service is
more accessible and, above all, immediately available to users. It is very simple to connect to this
service, something users can do themselves.
• Re-establishment of functioning communication services following floods, and social responsibility
A large area of Slovenia was hit by catastrophic floods in August. Our cable infrastructure was
flooded, damaged or severed at both the backbone and access levels of the network in affected
areas. Some functional locations were completely flooded or destroyed. Temporary connections
were established for fixed services in affected areas and will be fully rehabilitated in the future,
together with other infrastructure. The timetable for implementation will partly depend on the
restoration of other infrastructure at the national and local levels.
We were the first operator to fully re-establish the mobile network. During this period, we also
allowed the users of all other operators in Slovenia to communicate on out network via national
roaming.
We earmarked donations in the total amount of EUR 250,000 to help families and individuals hit
hardest by the floods, and to 20 volunteer fire brigades. We also helped those affected by the floods
with services in the total amount of EUR 350,000 and through a number of other activities, which
together amounted to EUR 600,000. Via SMS donations, our users donated more than one million
euros to help those affected.
• Smart cities: for the Municipality of Celje, we developed a mobile application and the Centralka
urban card, which facilitates the purchase of tickets and the monitoring of bus arrivals, bike rental,
an overview of available parking spaces, payment for parking and the remote extension of parking.
In the scope of the VARCITIES project, under the auspices of the Municipality of Novo Mesto, we
established an advanced IoT platform that we integrated with environmental sensors and thus
facilitated a comprehensive overview of the situation via an information solution. With this IoT
solution, local communities are able to support the reduction of emissions, improve energy
efficiency, ensure the smart management of lighting, mobility, traffic and parking, and monitor
environmental parameters, such as air quality and temperature, air pressure, humidity, noise levels
and the water levels of watercourses.
• INO.LAB, demonstration environment for a private 5G mobile network
In the Company’s business premises, we were the first in Slovenia to set up a demonstration
environment for a private 5G mobile network, which is intended for anyone wishing to test the
benefits of such networks and participate in an open innovation process. INO.LAB has different
specific examples of the use of private mobile networks.
• Launch of the 5G network in Kosovo
After obtaining the necessary frequencies and the completion of comprehensive testing, IPKO
successfully launched the 5G network. IPKO was thus the first on the market to offer mobile data
speeds in excess of 1Gbp/s.
• 5G research and test environment
The Company and its partners at the University of Ljubljana’s Faculty of Electrical Engineering set
up a 5G research and test environment. Modern equipment at technical faculties is crucial for
educating the young people who are and will be the creators of the digital future.
• eCare
Together with the Slovene Federation of Pensioners’ Associations, we were chosen via public
tender to provide services in the remote eCare project in the scope of the ‘Remote eCare’ project
sponsored by the Ministry of Solidarity-Based Future. In the scope of the project, eCare is available
to entitled parties free of charge until 30 June 2025.
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Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
• NEO TV
Several new innovations and improvements were introduced in NEO TV. We carried out an
automated update of the voice model, improved video quality, developed new targeted advertising
functionalities, added new content and applications, and redesigned the NEO interface for a better
user experience. We recycle NEO remote controls. Remote controls are made of high-quality, long-
lasting materials. They can be repaired and re-used, and can be recycled at the end of their useful
life.
• Loyalty Programme
We redesigned Telekom Slovenije’s Loyalty Programme in 2023.
• Sečovlje Salina Nature Park
Soline and the Ministry of Natural Resources and Spatial Planning signed an agreement on the
management of the Sečovlje Salina Nature Park for the next 10-year period, i.e. until 2033.
Significant events after the reporting date are presented in the financial report in point 47 Events after
the reporting date.
Recognitions and awards received by Telekom Slovenije in 2023
• Best Buy Award: we received the Best Buy Award for 2023 and 2024. According to Slovenian
consumers, we offer the best price-to-quality ratio in the areas of mobile services, internet access
services and solutions for business users. IPKO was also recognised for mobile telephony and
internet services via broadband connections in Kosovo.
• WEBSI award: we received recognition in the use of advanced technologies and communications
categories.
• SoMo Borac award: together with our partners, we received an award in the SoMo Web category.
• Effie Slovenija 2023 award: we received a bronze Effie, an award for proven market effectiveness,
for our cyber security project.
• GoDigital award: we received special recognition for addressing the problem of an ageing society
through the ‘Home eCare’ project.
• Top Employer: we again received the international Top Employer certificate for outstanding HR
practices.
• Green Star: we received the Green Star certificate of excellence for progress
on the path to the green transformation. Our rating of four stars places us in
the category of ‘Green Leader’.
• Most Respected Employer: we rank amongst the 10 most respected employers in Slovenia, and
as the most respected employer in the telecommunications category.
• HR Team 2023: we ranked amongst the finalists in the HR Team 2023 competition for best HR
team.
• TOP Investor in Education certificate: we received the certificate for our systematic investment
in employee education and training.
• Socially Responsible Employer certificate: we received the advanced certificate for socially
responsible employer.
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Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
2 LETTER FROM THE PRESIDENT OF THE MANAGEMENT
BOARD
4
Dear Shareholders, Investors, Business Partners and Co-Workers,
Our expectations for 2023 were based on economic uncertainty, primarily due to conditions on the
energy markets. Nevertheless, the Telekom Slovenije Group drew up an ambitious business plan for
2023 with the primary objective of reversing the negative trends of recent years, and thus increasing
market shares and achieving growth in revenues and the number of users in key segments of its
operations.
Our operations were affected in 2023 by the floods that hit Slovenia in August. The infrastructure of
Telekom Slovenije and GVO was flooded, damaged or severed in affected areas. In just two days, the
experts of Telekom Slovenije and GVO re-established communication services for residents in affected
areas, despite extensive damage to the infrastructure. During that period, Telekom Slovenije also
ensured communications for the users of all other operators in Slovenia. Contemporary life and work is
impossible to imagine without information and communication services. Telekom Slovenije once again
demonstrated that it is the infrastructure and service foundation of a modern society.
Objectives exceeded
In 2023, the Telekom Slovenije Group performed well, exceeded established objectives and improved
operations significantly relative to 2022. All of this in adverse market conditions in the context of high
energy costs and taking into account the damage caused by August’s floods. A significant improvement
in operations was achieved in all key segments of operations and on all target markets. Results were
driven by the tremendous efforts of the entire team.
The Telekom Slovenije Group generated EUR 708.2 million in operating revenues in 2023, an increase
of 7% relative to 2022. The Group recorded an increase in revenues in several segments of its
operations. The highest growth was recorded in mobile and broadband services, while the most
significant increase in revenues in the ICT segment was recorded in the provision of cyber security. Also
up were revenues from the Online Store, and insurance and eHealth services, while revenues were also
higher on the wholesale market. All Group companies recorded an increase in revenues generated on
the market. At 14%, IPKO recorded the highest growth in revenues.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) totalled EUR 228.6 million at
the Telekom Slovenije Group level, an increase of EUR 12.1 million or 6% relative to 2022. The EBITDA
margin (i.e. EBITDA as a proportion of sales revenue) was 32.9% at the Group level.
Earnings before interest and taxes (EBIT) amounted to EUR 64.1 million at the Telekom Slovenije Group
level, an increase of 27% relative to 2022.
The Telekom Slovenije Group generated a net profit of EUR 47.1 million in 2023, the highest level since
2015. Net profit was up by EUR 9.6 million or 25% relative to 2022.
Had energy prices in 2023 remained at the 2022 level, and if there was no state aid for energy in 2023
and there was no negative effect of floods, EBITDA would have been 10% higher and EBIT would have
been 46% higher than in 2022.
The Telekom Slovenije Group also recorded a decrease in net financial debt as at 31 December 2023
by
11% relative to 31 December 2022.
Growth in number of users
By the end of 2023, the Telekom Slovenije Group had increased the number of mobile users by 4% or
66,127 users relative to the end of 2022. Telekom Slovenije and IPKO increased the number of retail
mobile users by 3,662 and 62,465, respectively. Telekom Slovenije increased the number of fixed retail
broadband connections by 4,626, and thus exceeded the 200,000 users milestone.
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Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
In Slovenia, we are consolidating our leading market share in the mobile subscriber segment, where
Telekom Slovenije enjoys a 35.4% market share, and in the IPTV segment, where the Company’s
market share is 41.8%. We increased our share of the fixed broadband access market to 28.0%. In
Kosovo, IPKO holds a 49.2% share of the mobile telephony market and a 25.5% of the fixed telephony
market.
Investing in knowledge, and advanced, secure and accessible technologies
Knowledge, and strengthening existing and developing new employee competences are the main
drivers of value added. Only #connected and highly qualified employees can achieve development. All
employees were included in education and training during the previous year. Incentivising us is the
receipt of the TOP Investor in Education certificate and the advanced Socially Responsible Employer
certificate for our activities in this area. We rank amongst the ten most respected employees in Slovenia,
while the Top Employer certificate represents international confirmation of the quality of our work
environment.
Technological development requires advanced skills and a superior network. Established business
models are amended and improved with the latest tools and technological capacities. The expected
result is improved efficiency in the context of the simultaneous mitigation of sustainability risks. The need
for cyber security is growing. Experts in the Cyber Security and Resilience Centre, which is one of the
most advanced centres of its kind in the region, identified 85% more security incidents in 2023 than the
previous year. Using modern technology, they closely monitor, analyse and respond to security threats
24 hours a day. On account of its size, experience, systems and know-how, Telekom Slovenije is an
integral element of measures to increase the cyber security of companies, organisations and events.
We continued to upgrade and modernise the network in 2023. We facilitate the connection to our fibre
optic network by more than 460 thousand Slovenian households, with an additional 16,980 households
connected in 2023. Coverage with LTE/4G technology exceeds 97%. We covered an additional 420
thousand inhabitants with 5G technology in 2023 and strengthened the capacities of the entire mobile
network, such that more than 60% of the Slovenian population is covered by 5G technology. By 2025,
we will ensure 99% coverage in accordance with needs, requirements and plans. We are thus actively
pursuing the vision of a gigabit digital Slovenia by 2030.
We are also improving the user experience and increasing the accessibility of services. We facilitate the
immediate connection of new subscribers to the internet and TV via the mobile 4G/5G network. In our
business premises, we established INO.LAB, a demonstration environment for a private 5G mobile
network, to which we invite all interested stakeholders. In the scope of our smart city solution, we
established an advanced Internet of Things platform in several Slovenian municipalities that facilitates
a comprehensive overview of environmental data, and the monitoring of and decisions regarding
sustainable mobility.
In 2023, IPKO was the first operator in Kosovo to introduce 5G technology and made very successful
use of eSIM technology in addition to other advanced services.
Amongst our significant achievements in 2023, I am also pleased to highlight the fact that Telekom
Slovenije and the Slovene Federation of Pensioners’ Associations were selected, via a public tender
issued by the Ministry of Solidarity-Based Future, to provide eCare services. In the scope of the project,
eCare is available to entitled parties free of charge until 30 June 2025, i.e. until the entry into force of
the right to eCare set out in the Long-Term Care Act, which systematically governs this area.
Soline and the Ministry of Natural Resources and Spatial Planning signed an agreement on the
management of the Sečovlje Salina Nature Park for the next ten-year period.
Strategic Business Plan for the period 2024 to 2028: connecting opportunities
We adopted the Strategic Business Plan of the Telekom Slovenije Group for the period 2024 to 2028 at
the end of 2023. The Group’s development will be ensured primarily by highly qualified and motivated
employees, and through the effective use of the best technologies. Special attention will be given to
improving sustainable operations and social responsibility.
We will strive for growth in revenues and market shares on the telecommunications markets in Slovenia
and abroad. We will continue to carry out activities that ensure the best possible exploitation of all
resources at our disposal. As a reliable provider of critical infrastructure and digitalisation, we plan the
highest growth in the ICT segment and digital services. We will increase the value of services through
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Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
a comprehensive approach and the inclusion of cyber security solutions. We will improve operational
efficiency through the effective use of new technologies and tools, cost reduction and the improved
efficiency of investing activities. In the coming period, we are planning further growth in our shares of
the mobile telephony and fixed broadband access markets, as well as growth in revenues, EBITDA and
net profit.
The full amount of distributable profit from 2022 is earmarked for the payment of dividends in 2024. In
2023, the Group took advantage of aid granted under the Act on Aid to the Economy to Mitigate the
Impact of the Energy Crisis.
We are planning operating revenues of EUR 717.4 million, EBITDA of EUR 233.6 million and a net profit
of EUR 43.2 million at the Telekom Slovenije Group level in 2024. Through a clear vision and strategy
for further development, prudent investments and ambitious objectives, and through the increasingly
effective provision of high-quality services and an excellent customer experience, we will consolidate
and strengthen the trust of shareholders and all other stakeholders.
Our guiding principle is ‘Always for the Better’.
Boštjan Košak,
President of the Management Board
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Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
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 2023, 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 2023 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 financial report and accompanying notes have been compiled in accordance with the
relevant financial reporting framework, and provides a true and fair picture of the assets,
liabilities, financial position and operating results of Telekom Slovenije, d.d. and the Telekom
Slovenije Group as a whole;
– the selected accounting policies were applied consistently in the compilation of the financial
statements and any changes to the policies were disclosed, and that accounting estimates were
made fairly and with careful consideration, according to the principle of prudence and the
diligence of a good manager, and under the assumption that Telekom Slovenije, d.d. and the
Telekom Slovenije Group are going concerns; and
– the business report includes a fair presentation of the development and operating results of the
Company and of its financial position, together with a description of the principal types of risk to
which Telekom Slovenije, d.d. and the Telekom Slovenije Group as a whole are exposed.
The Management Board is also responsible for taking appropriate measures to secure assets, and for
preventing and detecting fraud and other irregularities and unlawful acts.
The tax authorities may, at any time within five years following the year for which tax was levied, audit
companies’ operations, which can result in an additional tax liability. The Management Board is not
aware of any circumstances that could give rise to any significant liability on this account.
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
Ljubljana, 15 March 2024
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Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
3 LETTER FROM THE PRESIDENT OF THE SUPERVISORY
BOARD
Dear Stakeholders,
Telecommunications are the driving force of social progress. The expectations of users regarding
superior connectivity, the further development of mobile technologies, smart city and Internet of Things
solutions, cyber security, virtualisation and the development of private mobile networks are just a few of
the trends that are creating our future.
The Telekom Slovenije Group is successfully addressing the challenges of the future by focusing on the
delivery of an excellent user experience and superior services, and by creating value added for all
stakeholders. This was also demonstrated by our performance in 2023, when Telekom Slovenije
successfully reversed the trend of several years of declining market shares and sales revenues, and
responded effectively to changes in the dynamic business environment through a flexible and steadfast
approach.
Operations in 2023 were affected by high energy costs, rising interest rates, which led to an increase in
financing expenses, and the impairment of the infrastructure of Telekom Slovenije and GVO, which was
flooded, damaged or severed during August’s storms. Through its excellent response to the worst
natural disaster in Slovenia’s history, Telekom Slovenije once again demonstrated that it is the
infrastructure backbone of Slovenian society, as it reconnected Slovenia in three days despite extremely
adverse circumstances and extraordinary conditions, and made its network available for use by all major
operators who were able to provide services to users in affected areas. Thanks for this go to selfless
employees, and would not have been possible without regular and strategically planned investment in
the modernisation of the network. That modernisation is being carried out in phases and in accordance
with the established timetable, which allows the Company to function effectively.
In the context of continuous digitalisation, Telekom Slovenije is consolidating and strengthening its
position in the area of cyber security and resilience, both for its own needs and for the needs of the
wider environment: residential users, companies, critical infrastructure, organisations and the
Company’s partners. Telekom Slovenije is an important regional stakeholder in ensuring and raising
awareness about the importance of adequate cyber protection.
Achieved results demonstrate the focus and vision of the Management Board in the achievement of
established objectives, while our ambitiousness for the future is also reflected in the Strategy of the
Telekom Slovenije Group for the period 2024 to 2028, which lays out clear guidelines, opportunities and
ambitions for further development. The Telekom Slovenije Group’s focus in the future will continue to be
on ensuring the best user experience in the context of continuous development, which is based on
connectivity, digitalisation and effectiveness, as well as clear ESG objectives and commitments.
I believe that all of the above strengthens the trust of shareholders and other stakeholders in the
successful future development of the Company and Group.
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 2023. The
composition, content and work of the Supervisory Board and its committees during the 2023 financial
year are presented in more detail in the report of the Supervisory Board.
Žiga Debeljak, MSc,
President of the Supervisory Board
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Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
4 DEVELOPMENT STRATEGY AND PLANS
4.1 Business model
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Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
4.2 Strategy of the Telekom Slovenije Group for the period 2024 to 2028
5
The Group’s future development is laid out in the Strategic Business Plan of the Telekom Slovenije
Group for the period 2024 to 2028. During that period, the ICT sector will be characterised by intensive
technological development and progress.
The strategy is based on our values, and on the fulfilment of our mission and vision. Providing the best
user experience remains the heart of the strategy.
FULFILLING OUR VISION: CONNECTING OPPORTUNITIES
The Telekom Slovenije Group is constantly moving forward, evolving and facilitating development and
progress by connecting opportunities.
We serve as the infrastructure backbone for connecting users and devices.
Through the network that we use to provide the most advanced telecommunications services, a fast and
reliable internet and advanced ICT solutions, we facilitate comprehensive social development,
intersectoral cooperation and productivity growth, as well as equitable access and social inclusion.
Helping shape trends in the sector
We based strategic planning on internal analyses, available information about changes in the regulatory
environment, forecasts of macroeconomic and market trends, and the expected development of the
dynamic sector in which we operate. The strategy includes clear and measurable sustainability
indicators and ambitious objectives, through which we contribute to the realisation of the European
Green Deal and the United Nations’ Sustainable Development Goals (SDG).
The Telekom Slovenije Group's strategy until 2028 presents our responses to development
opportunities, and to global and regional challenges.
• Amending established business models
Business models are tied to the monetisation of the network and the capacities thereof, while
operators are entering new markets with higher value added as connectivity providers. Internal
and external ecosystems are emerging based on partnerships, mergers and acquisitions,
efficient purchasing, and effective corporate governance and the management of portfolio
investments.
5
GRI 3-3
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Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
• Superior network and technology
The traditional role of operators is expanding. With the digitalisation of society, a superior
network and technology are becoming increasingly complex and are taking on a fundamental
role in operations.
• Digitalisation at all levels of the Company
In the context of the continuous digitalisation of society as whole and constant development,
artificial intelligence, machine learning, big data, the Internet of Things, connectivity and the
development of the most advanced mobile technologies are becoming increasingly important.
At the forefront are the constant improvement of new technologies and their introduction into all
areas of digital society.
• Strengthening cyber security and resilience
The threat of cyber attacks is increasing in the digital world. Telecommunication operators are
strengthening cyber resilience to ensure comprehensive network security, to protect users and
to help other organisations and companies ensure cyber resilience and information security.
• Sustainable operations
Key aspects of the sector’s sustainable development focus on achieving carbon neutrality,
primarily through the use of energy-efficient technologies and low-carbon and renewable energy
sources, and on sustainable disclosures, security, diversity, inclusion and sustainable supply
chains.
• Customer satisfaction
Users expect a seamless user interaction, the quick resolution of problems and an innovative
range of products and services tailored to the needs of specific segments.
• Development of new employee competences and knowledge
Dynamic changes that bring new technologies and changing business models require the
development of new employee competences and knowledge that will enable Group companies
to operate in the digital landscape.
KEY STRATEGIC COMMITMENTS
The best user experience
We strengthen, update and improve the user experience at all contact points with users. In procedural
terms, we simplify the purchasing process and take into account purchasing channels when developing
new products and services. We maintain the highest standards of excellence throughout operations.
The most for more
Our superior network with the latest technology and highest level of service will allow us to continue
offering users the most for more: the most quality, the most security, the most advanced solutions and
services, and the most development. We will continue to simplify users’ lives in the future through our
continuous market presence, whether we are talking about mobile or fixed services, TV experience,
content, digital commerce, comprehensive ICT solutions, health or mobile payments.
Increased security
Increased security risks in the environment are managed through continuous investments in
technologies for the effective and precise detection of security threats. We are deepening analytics,
automating operational processes, and regularly performing security, penetration and vulnerability
testing. We work with international organisations and strive for the increased security of our users, and
the resiliency of the network and services.
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Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
STRATEGIC POLICIES – PILLARS AND FOUNDATIONS OF OUR DEVELOPMENT
CONNECTED
Developing and strengthening our core activity.
We will record additional growth in revenues and market shares on telecommunications markets in
Slovenia and abroad. Special emphasis will be given to making better use of the existing infrastructure.
DIGITAL
Developing new business models.
As a reliable provider of critical infrastructure and the digitalisation of services, we plan the highest
growth in the ICT segment and digital services. We will increase the value of services through the
inclusion of cyber security solutions.
EFFECTIVE
Raising commercial awareness.
We will improve operational efficiency through the continued digitalisation of operations, the reduction
of costs and the improved efficiency of investing activities.
The main role in the development of the Telekom Slovenije Group is played by employees, technology,
and responsible and sustainable operations.
Employees
We are creating an inclusive and cooperative culture and a safe and healthy work environment,
ensuring continuous education and training, the development of potentials and competences, the
motivation, remuneration and retention of employees, and attracting and recruiting diverse individuals.
Through an agile and systematic approach, we are strengthening our reputation and brand as an
employer, and creating a culture of development and opportunities for the growth of individuals and
the Group. We dedicate special attention to sustainable leadership, the promotion of diversity, and
activities relating to concern for employees and flexible forms of work.
Technology
We continuously upgrade our superior network with the latest technologies, and thus create a significant
competitive advantage. Through continuous development, careful planning and prudent investments,
we ensure a high-quality, resilient and robust network that is both sustainable and energy efficient. Our
focus is on expanding and increasing network utilisation, the development of a range of broadband
services independent of access technology, the development of IT tools for advanced network planning
and management, and the continuous measurement of and improvements to network elements to
ensure the best user experience.
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Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
Sustainability and responsibility
Sustainability principles are integrated into our operations, products, services and content. We are
bridging the digital divide and striving for an inclusive, healthy and safe society. We provide users broad
access to advanced ICT solutions and services, and promote the transformation to a carbon-neutral and
digitally connected society. We are reducing our own carbon footprint primarily through energy efficiency
and the use of low-carbon and renewable energy sources.
Objectives of the Telekom Slovenije Group for 2024
in EUR million
Objectives for 2024
Operating revenues
717.4
EBITDA
233.6
Net income
43.2
Value of investments
235.7
Strategic objectives of the Telekom Slovenije Group for the period 2024 to 2028
in EUR million
Earnings before interest, taxes, depreciation and amortisation (EBITDA) in 2028
280
Net profit in 2028
83
Value of investments in the period 2024 to 2028
951
Carbon-neutrality under Scope 1 and 2 by 2028
Dividend Policy
The payment of dividends in the amount of
30% to 50% of the Telekom Slovenije
Group’s net profit, taking into account the
Group’s current financial position and
investment needs.
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Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
4.3 Achievement of planned objectives by the Telekom Slovenije Group in
2023
The Telekom Slovenije Group achieved the objectives set out in the Annual Business Plan for 2023.
An overview of key activities and achievements is presented below.
Strategic objectives from the Strategic Business Plan and their realisation in 2023
CONNECTED
- The proportion of satisfied and fully satisfied users of Telekom Slovenije’s fixed and mobile
services (CSI) remains at a high level.
- We continued 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 and
more than 60% of the population with the 5G network. We included an additional 77 small cells
for the needs of internal coverage.
- Telekom Slovenije exceeded 200,000 retail broadband connections in 2023. We facilitated
access to our fibre optic network by an additional 16,980 households, bringing the total number
of connections to the fibre optic network to more than 459 thousand Slovenian households. 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 achieved a high transactional NPS (visit by a technician in cooperation with technical
support).
- In Slovenia, we maintained the highest market share in both the mobile and IPTV services
segments. Our market shares were as follows: 35.0% of the mobile telephony segment, 27.81%
of the fixed broadband internet access segment and 41.3% of the IPTV segment (figures for
third quarter of 2023; source: AKOS).
- IPKO is the leading operator in both segments, with a 54% share of the mobile telephony
segment and 28% share of the fixed segment.
DIGITAL
- We provide an increasing number of municipalities traffic management, smart parking and
environmental measurement (e.g. air and noise pollution) services:
- we developed a mobile application and the Centralka urban card for the Municipality of Celje.
In the Municipality of Novo Mesto, we set up an advanced IoT platform that we integrated with
environmental sensors.
- In our business premises, we established INO.LAB, a demonstration environment for a private
5G mobile network in order to test the advantages of such networks.
- The Company and its partners at the University of Ljubljana’s Faculty of Electrical Engineering
set up a 5G research and test environment.
- The number of business users of Cyber Security and Resilience Centre services was up in 2023
and now exceeds 100.
- We are participating in several European projects for the development of new services and
technologies, and are testing concepts for the development of new solutions over the next three
to five years in areas including the Internet of Things, cyber security, support for critical
communications and eHealth.
- We help numerous users with the eCare service. In the scope of the project, the eCare
Assistance Centre received more than 24,000 calls between April 2022 and August 2023. A
total of 1,900 interventions were carried out with the help of informal caregivers (e.g. family
members, neighbours, etc.), while more than 300 interventions were carried out through
emergency medical care measures. eCare significantly reduced the waiting time for assistance,
resulting in the prevention of a number of serious medical complications and hospitalisations.
- The most notable innovation in 2023 was the complete redesign of My Telekom, which is only
one of the changes that took place during the previous year. My Telekom is being developed to
respond to the needs and expectations of our users: simple and secure access, improved
control, the understanding and optimising of actual costs, flexibility and convenient use of
services.
- By revising programme schemes and options, we have brought TV viewing even closer to
subscribers, as changes and orders are carried out in real time. This also applies to the payment
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Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
of bills in My Telekom, with more payments from month to month, and to the independent
resolution of challenges in the use of our services with the digital advisor Maks.
- We introduced additional functionalities in the VALÚ Smart Wallet: users can access data
regarding their VALÚ Mastercard within the application, meaning they no longer require a
physical card in online purchases; data regarding their VALÚ Moneta use and limit are
accessible in the VALÚ application; we facilitated video identification using a driver’s license; in
the Sitium system in the Municipality of Novo Mesto, we facilitated the payment of public
transportation and identification for entry to the pool in the Municipality of Novo Mesto.
- Payments for digital content by our users in the App Store and Google Play were up by 35%
relative to 2022, while the number of users was up by 50%.
- 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. The average NPS for the Online Store, as a point of contact reached its highest
level of the last three years in 2023.
EFFECTIVE
- The Telekom Slovenije Group had 3,253 employees at the end of the year, with Slovenian
companies accounting for 2,767 of that number. The number of employees was down 0.3%
relative to the previous year.
- Group employees received an average of 26.0 hours of training, while that figure was 32.1 hours
at Telekom Slovenije. The proportion of employees included in education and training was 100%
at the Group level.
- We consistently fulfilled the financial commitments set out in loan agreements. We signed a
loan agreement for the refinancing of a long-term syndicated loan in the amount of EUR 100
million. We will thus ensure the funds required to pursue our ambitious and development-
oriented strategy.
- We reduced electricity consumption by 3% through increased energy efficiency.
- 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. More than half of all equipment is reused.
Achievement of planned operating revenues, EBITDA and net profit of the Telekom Slovenije
Group in 2023
in EUR million
Achieved
in 2023
Planned
in 2023
Index 2023
Achieved/Planned
Operating revenues
708.2
680.8
104
Earnings before
interest, taxes,
depreciation and
amortisation (EBITDA)
228.6
206.2
111
Net income
47.1
20.1
234
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Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
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 2023. It relates to the period 1 January 2023 to 31
December 2023. 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.
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Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
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 2023
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 in June 2022, and the Recommendations and
Expectations of Slovenski državni holding, adopted in May 2023 and updated in August
2023, which are published on the website www.sdh.si;
- 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).
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: In 2020, Telekom Slovenije adopted the Policy Governing the Diversity
of the Management Board and Supervisory Board of Telekom Slovenije, d.d. ¸in accordance with the
recommendations 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.
The Supervisory Board began the process of revising the Diversity Policy in 2024.
Remuneration Policy and report on the remuneration of management and supervisory bodies
Recommendations 6 and 6.2: Telekom Slovenije deviates in part from this recommendation as, in
accordance with Appendix 2 to the Recommendations and Expectations of SDH, the Remuneration
Policy for the Management Body of Telekom Slovenije, d.d. and the Management Bodies of Telekom
Slovenije Group Subsidiaries only governs the remuneration of members of the Company’s
management body, while the remuneration of the members of its supervisory body were defined by a
resolution of the 31st General Meeting of Shareholders that is in line with the sample resolution found
in Appendix 1 to the Recommendations and Expectations of SDH.
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. The self-assessment of the
Supervisory Board for 2023 was carried out based on the methodology of the Slovenian Directors’
Association. Based on that assessment, the Supervisory Board discussed and adopted an action plan
of improvements.
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.
The Company began drafting a Succession Policy in 2024.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
25
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:
Diversity Policy
Recommendations 3.6.1 and 3.6.3: – Telekom Slovenije deviates from this recommendation in the part
that relates to specific targets of individual aspects of diversity, which the policy did not include in 2023,
while targets are likewise not implemented in the Company’s internal acts. In 2024, the Supervisory
Board adopted a renewed DiversityPolicy, which sets a target of 33% under-represented gender in the
Management Board and Supervisory Board by the end of 2026.
Succession policy
Recommendations 6.1, 6.2 and 6.2.1 to 6.2.3 and 6.2.6: 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.
The Company began drafting a Succession Policy in 2024.
The Supervisory Board starts the selection process for candidates for the Management Board before
the expiry of the term of office of the current Management Board or when the need to start the
recruitment process for the appointment of Management Board members is identified.
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.
5.3 Management and supervisory bodies
Telekom Slovenije is a public limited company. It has a two-tier system of governance. It is run by the
Management Board and supervised by the Supervisory Board. The Company’s governing bodies are
the General Meeting of Shareholders, Supervisory Board and Management Board.
GENERAL MEETING OF SHAREHOLDERS AND RIGHTS OF SHAREHOLDERS
All shareholders are treated equally, and we consistently ensure the 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 is accessible on the
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Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
Company’s website (https://www.telekom.si/en/about-us/investor-relations/shareholder-s-meetings).
Shareholders who are entered in the central register of securities at KDD (Central Securities Clearing
Corporation) at the close of business seven days prior to the General Meeting of Shareholders (cut-off
day) are entitled to participate and vote at the General Meeting of Shareholders, if they have registered
in writing at least three days prior to the General Meeting of Shareholders.
Telekom Slovenije’s shareholders met at one General Meeting of Shareholders in 2023. At total of
80.60% of shares with voting rights were represented at the 36th General Meeting of Shareholders
held on 16 June. At the General Meeting of Shareholders, the Company’s 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 2022;
• were briefed on the report on the remuneration of members of Telekom Slovenije, d.d.’s
Management Board and Supervisory Board for 2022, and on information regarding the remuneration
of members of management bodies of the three biggest subsidiaries for 2022;
• conferred official approval on the Management Board and Supervisory Board for the 2022 financial
year;
• were briefed on and approved the Remuneration Policy for the Management Body of Telekom
Slovenije, d.d. and the Management Bodies of Telekom Slovenije Group Subsidiaries;
6
• appointed the audit firm Deloitte Revizija, d.o.o. to audit the financial statements of the Group and
Telekom Slovenije, d.d. for the 2023, 2024 and 2025 financial years; and
• rejected the proposed resolution of the use of distributable profit, which amounted to EUR
40,292,646.55 for 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.
MANAGEMENT BOARD
7
Composition of the Management Board
Telekom’s Management Board comprises five members: the President, Vice-President, two members
and the Workers’ Director. The term of office of Management Board members is four years, with the
possibility of reappointment.
At its 16th ordinary session held on 11 September 2023, Telekom Slovenije’s Supervisory Board
reappointed Špela Fortin as member of the Management Board and Workers’ Director based on the
proposal of the Works Council. Her four-year term of office began on 14 September 2023.
There were no other changes to the Management Board in 2023.
6
GRI 2-20
7
GRI 2-9, 2-10, 2-11, 405-1
27
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
Members of the Management Board
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 of
the
Management
Board
Corporate Governance, Human Resource
Management, General Affairs, Corporate
Communications, Legal Affairs, Regulation,
Compliance, Risk Management, Corporate
Security, Internal Auditing, Wholesale Market and
the subsidiary IPKO.
4 October 2022
3 October
2026
Male
Slovenian
1971
Holds a
bachelor’s
degree in
economics.
Boštjan
Škufca
Zaveršek,
MSc
Vice-President
of the
Management
Board
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.
Deželna
banka
Slovenije,
d.d.
Irma
Gubanec,
MSc
Member
Finance, Accounting, Controlling, Procurement,
Real Estate Management, Logistics 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 Beograd 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 of
Management
Board –
Workers’
Director
Sustainable operations, quality management
systems and the subsidiary TSinpo. The
responsibilities of the Management Board member
who serves as Workers’ Director derive directly
from valid legislation.
14 September
2019
(first term of office)
14 September
2023
13 September
2023 (first
term of office)
13 September
2027
Female
Slovenian
1978
High school
graduate.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
28
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 in accordance with the limitations set out in the Company’s Articles
of Association and internal acts. 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.
In managing transactions, the Management Board ensures the appropriate risk management, respect
for the integrity and security of trade secrets, and acts with the diligence of a conscientious and fair
manager.
The Management Board met at 66 ordinary sessions and one correspondence session in 2023. Due to
circumstances that could result in conflicts of interest, individual members of the Management Board
recused themselves from decision making on nine matters within their own or the Management Board’s
collective competence.
The Management Board made numerous business decisions and implemented activities to achieve the
objectives set out in the current Strategic Business Plan, taking into account the principles of sustainable
development and the interests of shareholders and other stakeholders. It dedicated special attention to
activities to upgrade the mobile network and to ensuring the provision of secure and reliable services.
The Management Board actively responded to events in the broader and local social environment, which
was particularly evident after August’s catastrophic floods, when Telekom Slovenije’s network was
functioning normally again in the shortest time possible.
With the consent of the Supervisory Board, the Management Board adopted the Strategic Business Plan
for the period 2024 to 2028, in the scope of which it also discussed the strategy of sustainable
operations. The conclusion of a loan agreement in the amount of EUR 100 million for the pursuit of
Telekom Slovenije’s ambitious and development-oriented strategy ensured the Company will receive
the necessary funding, and stable, long-term sources of financing.
Earnings of the Management Board
8
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 Bodies and the Management Bodies of Telekom
Slovenije Group Subsidiaries (hereinafter: Remuneration Policy), which was updated in 2023.
In accordance with the Company's Annual Business Plan, each year the Supervisory Board defines in
detail specific questions regarding the remuneration of Management Board members, the selection of
short- and long-term performance criteria and their target values for individual years, the weighting of
criteria in terms of importance, a system of assessing the fulfilment of criteria, the method for calculating
the variable component of remuneration taking into account achieved assessments, and other
necessary content.
The earnings of Management Board members comprise a basic salary, a variable component of
remuneration, and other rights and benefits. The criteria for the payment of the variable component of
remuneration comprise quantitative and qualitative and financial and non-financial criteria.
According to the Remuneration Policy, the variable component of remuneration based on financial
criteria (e.g. net sales revenue, EBITDA, etc.) is 50%. The same 50% share applies to the variable
component of remuneration based on non-financial criteria (e.g. trend in market share, NPS,
organisational efficiency, development, sustainable operations according to environmental, social and
governance criteria).
8
GRI 2-18, 2-19, 2-20
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
29
The aforementioned Decree states that 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.
9
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 2023 are presented in the separate report,
Report on the remuneration of members of Telekom Slovenije, d.d.’s Management Board and
Supervisory Board for 2023, and in the financial report in point 42 Related party transactions.
REPORT ON THE WORK OF THE SUPERVISORY BOARD
In accordance with the Articles of Association of Telekom Slovenije, d.d., the Company’s Supervisory
Board comprises nine members. The composition of the Supervisory Board was unchanged in 2023.
In the scope of its competences, the Supervisory Board ensured the responsible and prudent
supervision of the operations of Telekom Slovenije and the Telekom Slovenije Group in 2023. 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. The Supervisory Board met at eleven ordinary sessions and
four correspondence sessions in 2023.
Composition of the Supervisory Board
10
The Supervisory Board comprised the following members in 2023: Žiga Debeljak, MSc (President) Karla
Pinter, MSc (Vice-President), Aleksander Igličar, MSc, Mateja Čuk Orel, MSc, Alenka Čok Pangeršič,
MSc, Marko Boštjančič, Drago Kijevčanin (Vice-President), Dušan Pišek and Rok Pleteršek.
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.
9
GRI 2-21
10
GRI 2-9, 2-10, 2-11, 2-15, 405-1
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
30
Members of the Supervisory Board
Name
Office
First
appointment
to function
Completion
of function/
term of
office
Shareholder/
employee
representative
Partici
pation
in
Super
visory
Board
sessio
ns
Gender
Nationality
Year of
birth
Education /
professional profile
Independ
ence per
statemen
t of
independ
ence
Existence
of
conflicts
of interest
during the
financial
year
Membershi
p in
supervisory
bodies of
other
companies
Employment
Žiga
Debeljak,
MSc
President
9 September
2022
8 September
2026
Shareholder
representative
15/15
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
15/15
Female
Slovenian
1982
Holds a bachelor's
degree in law and a
master’s degree in
legal affairs.
YES
NO
Mariborska
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
14/15
Male
Slovenian
1962
Holds a master's
degree in economics
/
financial
YES
NO
Iskra
Mehanizmi
Holding, d.d.
Lipnica;
Slovenska
tiskovna
agencija,
d.o.o.,
Ljubljana
(until 12
December
2023)
Senior lecturer
at the University
of Ljubljana’s
School of
Economics and
Business.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
31
Members of the Supervisory Board
Name
Office
First
appointment
to function
Completion
of function/
term of
office
Shareholder/
employee
representative
Partici
pation
in
Super
visory
Board
sessio
ns
Gender
Nationality
Year of
birth
Education /
professional profile
Independ
ence per
statemen
t of
independ
ence
Existence
of
conflicts
of interest
during the
financial
year
Membershi
p in
supervisory
bodies of
other
companies
Employment
Marko
Boštjančič
Member
9 September
2022
8 September
2026
Shareholder
representative
15/15
Male
Slovenian
1967
Holds a bachelor's
degree in
law/telecommunicati
ons.
YES
NO
Managing
Director of
MIBO,
Komunikacije,
d.o.o., Sarajevo
Alenka Čok
Pangeršič,
MSc
Member
9 September
2022
8 September
2026
Shareholder
representative
14/15
Female
Slovenian
1971
Holds a bachelor’s
degree in
engineering physics
and a master’s
degree in
management and
organisation/asset
management.
YES
NO
Advisor to the
Management
Board/head of
project to
introduce
sustainable
operations at
Modra
zavarovalnica,
d.d..
Mateja Čuk
Orel, MSc
Member
9 September
2022
8 September
2026
Shareholder
representative
15/15
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
(until 2
October
2023)
Attorney-at-law
to the Law
company of Čuk
Orel, Ljubljana
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
32
Members of the Supervisory Board
Name
Office
First
appointment
to function
Completion
of function/
term of
office
Shareholder/
employee
representative
Partici
pation
in
Super
visory
Board
sessio
ns
Gender
Nationality
Year of
birth
Education /
professional profile
Independ
ence per
statemen
t of
independ
ence
Existence
of
conflicts
of interest
during the
financial
year
Membershi
p in
supervisory
bodies of
other
companies
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
15/15
Male
Slovenian
1964
Telecommunications
engineer/technology.
YES
NO
NO
Telekom
Slovenije,
network
engineer in the
Network and
Infrastructure
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
15/15
Male
Slovenian
1964
Telecommunications
engineer/technology.
YES
NO
NO
Telekom
Slovenije, team
leader in the
Network and
Infrastructure
organisational
unit, Chair of the
Works’ Council
Rok
Pleteršek
Member
2 June 2022
14 November
2025
Employee
representative
15/15
Male
Slovenian
1990
Holds a master's
degree in law /
legal affairs and
telecommunications
YES
NO
NO
Telekom
Slovenije,
Network and
Infrastructure
organisational
unit, member of
the Works’
Council
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
33
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. In accordance with the
Corporate Governance Code, all members of the Supervisory Board issued statements of compliance
with the criteria of independence, which are published on the Company’s website.
During the 2023 financial year, one member of the Supervisory Board informed the latter of facts that
could affect their independence. The compliance and integrity officer assessed the possible existence
of a conflict of interest in connection with a member of the Supervisory Board, but did not identify any
circumstances that would affect the impartial and objective performance of the Supervisory Board
member’s duties.
The Supervisory Board discussed various aspects of the operations of the Company and other Group
companies, 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 its committees, the
Supervisory Board adopted the appropriate decisions.
Within the scope of its competences, the Supervisory Board made the following responsible decisions
in 2023:
• discussed and adopted the strategic Business Plan of the Telekom Slovenije Group for the
period 2024 to 2028;
• discussed and adopted the audited annual report of the Telekom Slovenije Group and Telekom
Slovenije for 2022;
• regularly discussed the interim reports on the operations of the Telekom Slovenije Group and
Telekom Slovenije, and monitored the realisation of business plans;
• appointed the member of the Management Board and Workers’ Director in accordance with the
Workers’ Participation in Management Act and based on the proposal of Telekom Slovenije’s
Works’ Council;
• monitored activities in connection with the further development and modernisation of the
network, and activities to repair the damage caused to the infrastructure of Telekom Slovenije
and GVO by August’s storms; and
• discussed other topics relating to the operations of the Company and other Group companies.
In its supervision of the management of the operations of the Company and Telekom Slovenije Group
companies, the Supervisory Board was briefed regularly on the following in 2023:
• 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 assessed its work in August 2023 according to the methodology of the Slovenian
Directors’ Association. Following discussion, it adopted an action plan with commitments that were
fulfilled by the set deadline.
Composition and functioning of Supervisory Board committees
The Supervisory Board had three permanent committees: Audit Committee, HR Committee and
Business Development Committee. In accordance with their respective competences and tasks, the
aforementioned committees discussed individual areas of expertise and topics relating to the functioning
of the Supervisory Board, and advised the latter regarding important issues. This contributed to the
improved work and effectiveness of the Supervisory Board.
The composition and most important tasks of individual committees in 2023 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
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
34
to ensure professional cooperation in the areas of corporate governance, where it functions for the good
of the Company and protects the interests of its stakeholders.
Based on the decision of Telekom Slovenije’s Supervisory Board, audit committee tasks at the
subsidiaries Soline and Avtenta, which are public-interest entities, are carried out by the Audit Committee
of Telekom Slovenije’s Supervisory Board.
The Audit Committee’s members were as follows as at 31 December 2023:
• Aleksander Igličar, MSc (chair),
• Alenka Čok Pangeršič, MSc,
• Drago Kijevčanin,
• Barbara Gorjup, MSc – external member, and
• Dr Marko Hočevar – external member.
Information regarding the members of the Audit Committee who were also members of the Supervisory
Board in 2023 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.
External members of the Audit Committee
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
KZPS, d.o.o.
The Audit Committee met at twelve ordinary sessions and held three correspondence sessions in 2023.
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 2023 and the resolutions of Telekom Slovenije’s Supervisory Board.
Key tasks performed by the Audit Committee in 2023 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 unaudited and audited annual report of the Telekom Slovenije Group and Telekom
Slovenije for 2022, assessed the content of the annual report and prepared a proposal for the
Supervisory Board;
• it discussed the Internal Audit Service’s quarterly reports regarding audits performed and the
implementation of issued recommendations;
• it discussed the report on the work of the Internal Audit Service for 2022, changes to the work plan
of the Internal Audit Service for 2023, changes to the Internal Auditing Rules of the Telekom
Slovenije Group, and conducted interviews with the head of the Internal Audit Service and its
employees in the absence of the Management Board;
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
35
• it periodically monitored the risk management system, the functioning of internal controls,
compliance and reports on suspected breaches of corporate integrity;
• in accordance with the adopted Guidelines for monitoring the independence of the auditor of the
financial statements of the Telekom Slovenije Group and Telekom Slovenije, which define the
methods and procedures for monitoring the independence and impartiality of the auditor, as well as
protective measures, procedures for approving non-audit services and the process of selecting an
auditor, it:
▪ approved in advance all intended non-audit services with the auditor at Telekom Slovenije
Group companies based on a comprehensive review of cooperation with the auditor of the
financial statements of the Telekom Slovenije Group and Telekom Slovenije;
▪ continuously assessed the independence of the auditor based on internal information,
written statements and an interview with the auditor of the financial statements of the
Telekom Slovenije Group and Telekom Slovenije;
▪ discussed a review of transactions with other auditors at Telekom Slovenije Group
companies;
▪ in cooperation with the other audit committees to Telekom Slovenije Group companies,
prepared standard criteria and led the process of selecting an audit firm for the mandatory
auditing of the financial statements of the Telekom Slovenije Group and Telekom Slovenije
for 2023, 2024 and 2025.
In accordance with the Guidelines for monitoring the independence of the auditor of the
financial statements of the Telekom Slovenije Group and Telekom Slovenije, an auditor is
selected every three years. An invitation to submit bids was sent to seven audit firms in
February 2023. A total of four bids were received. All four bidders presented themselves at
a meeting attended by the audit committees of all Group companies. Based on those
presentations and an analysis of bids, a proposal was issued in April 2023 for the selection
of the auditor of the financial statements of the Telekom Slovenije Group and Telekom
Slovenije for 2023, 2024 and 2025. The auditor was appointed at Telekom Slovenije’s
General Meeting of Shareholders held on 16 June 2023;
• monitored and assessed the quality of the work of the auditor of the financial statements of the
Telekom Slovenije Group and Telekom Slovenije for 2022;
• 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 the Telekom Slovenije Group and Telekom Slovenije 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 February 2023 and discussed potential
improvements. It notified the Supervisory Board about the aforementioned self-assessment and
proposed improvements.
The HR Committee met at six regular sessions. Significant activities of the HR Committee included:
• drafting the Remuneration Policy for the Management Body of Telekom Slovenije, d.d. and the
Management Bodies of Telekom Slovenije Group Subsidiaries;
• appointing the member of the Management Board who serves as Workers’ Director;
• updating the Competence Profile for Members of the Supervisory Board of Telekom Slovenije, d.d.;
and
• updating the Policy Governing the Diversity of the Management Board and Supervisory Board of
Telekom Slovenije, d.d.
The HR Committee’s members were as follows as at 31 December 2023:
• Mateja Čuk Orel, MSc (chair)
• Marko Boštjančič,
• Žiga Debeljak, MSc,
• Drago Kijevčanin, and
• Karla Pinter, MSc.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
36
The Business Development Committee held three sessions, at which it discussed the Strategic
Business Plan of the Telekom Slovenije Group for the period 2024 to 2028 and activities aimed at the
modernisation of Telekom Slovenije’s mobile network.
Members of the Business Development Committee as at 31 December 2023:
• Marko Boštjančič (chair),
• Žiga Debeljak, MSc,
• Karla Pinter, MSc,
• Dušan Pišek,
• Rok Pleteršek, and
• Dr Janez Bešter, external member.
Information regarding the members of the Business Development Committee who were also members
of the Supervisory Board in 2023 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.
External member of the Business Development Committee
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 Supervisory Board’s work
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.
Report of the Supervisory Board on the verification of the annual report
The Supervisory Board discussed the audited annual report of the Telekom Slovenije Group and
Telekom Slovenije for 2023. 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 auditor’s report with the latter’s opinion, the Supervisory Board confirmed the audited annual
report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023.
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 2023, together with the auditor’s report for 2023, immediately after compilation and the issuance of
the auditor’s report with the latter’s opinion. The annual report of the Telekom Slovenije Group and
Telekom Slovenije for 2023 was audited by the audit firm Deloitte Revizija, 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 2023 and found that the annual report
was compiled in a timely, clear and transparent manner, and in accordance with the provisions of the
ZGD-1, the applicable International Financial Reporting Standards and other relevant legislation. The
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
37
Audit Committee had no comments with respect to the annual report for 2023, and proposed that the
Supervisory Board approve the annual report of the Telekom Slovenije Group and Telekom Slovenije for
2023 in accordance with Article 282 of the ZGD-1.
Based on the auditor’s report with the latter’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
2023, 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 2023 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 approved the annual report of the Telekom Slovenije Group and Telekom Slovenije
for 2023 at its ordinary session held on 16 April 2024. The Supervisory Board approved the annual report
for 2023 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 2023, and assessed that they are a reflection of the
actual governance of the Company in 2023.
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. The remuneration of
members of the Supervisory Board is defined in a general meeting resolution, and is in line with the
Recommendations and Expectations of the Slovenian Sovereign Holding. Also defined are the
maximum annual amounts of and eligibility criteria for the reimbursement of transportation expenses,
daily allowances and costs of overnight stays. The amounts of payments made to members of the
Supervisory Board are disclosed in the financial report.
Diversity Policy
The Policy Governing the Diversity of the Management Board and Supervisory Board of Telekom
Slovenije, d.d. (hereinafter: the Diversity Policy), which was adopted in 2020, states that in order to
ensure the optimal composition of the Management Board and Supervisory Board, the diversity of a
body in terms of professional profile, continuity, experience, gender and age must be taken into account,
in addition to legal requirements and requirements set out in the Company’s Articles of Association.
As a measurable objective, the Diversity Policy lays out efforts to ensure heterogeneity in terms of
gender composition, whereby an under-represented gender should account for 40% of the members of
the Supervisory Board and 33% of all members of the Management Board and Supervisory Board by
the end of 2026.
The overall objective of gender diversity in terms of the composition of Telekom Slovenije’s management
and supervisory bodies was achieved in 2023.
On 13 February 2024, the Supervisory Board adopted a renewed Policy on Ensuring Diversity of
Management and Supervisory Bodies of companies of Telekom Slovenije Group.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
38
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 taking into account 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 2023
39
Composition of the management and supervisory bodies of subsidiaries of the Telekom Slovenije
Group as at 31 December 2023
SLOVENIA
GVO, d.o.o.
Managing Director: Dr Zef Vučaj
Supervisory Board: Vesna Prodnik, MSc (President), Peter Anžin and Helena Jakič
Peter Anžin began his term of office as member of the company’s supervisory board on 9 June
2023. The function of supervisory board member Sabina Merhar ended on the same day.
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: Matija Nendl
Primož Kučič served as Managing Director until 31 March 2023.
TSmedia, d.o.o.
Managing Director: Igor Gajster
Soline, d.o.o.
Managing Director: Klavdij Godnič
TSinpo, d.o.o.
Managing Director: Vesna Lednik
Sandra Peršak served as Managing Director until 9 January 2023.
OTHER COUNTRIES
IPKO Telecommunications LLC, Kosovo
CEO: András Páli
Tomaž Seljak, MSc served as CEO until 4 November 2023.
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 Beograd, Serbia
Managing Director: Simon Furlan, MSc
SIOL Prishtina LLC, Kosovo
Managing Director: Simon Furlan, MSc
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
40
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 Telekom Slovenije
Group in connection with financial reporting procedures
The internal control system as it relates to financial reporting and risk management are integral elements
of corporate governance within the Group.
The internal control system as it relates to financial reporting ensures the appropriate management of
risks, the ethical operations of Group companies, precise, reliable, timely and complete accounting
records, and true, fair, transparent and reliable 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. All Group companies must report in accordance with the same accounting
guidelines and policies.
In the scope of the risk management framework, the Company treats the internal control system as a
process that is based on the principle of segregation of duties and that serves as the basis for identifying,
assessing and managing risks, and control over the financial reporting process.
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. Data access rights are regularly reviewed and updated.
Also in place in addition to internal accounting controls are other 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,
documentation regarding their functioning 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 2023. 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.
Restrictions on the transfer of shares
All shares are freely transferable.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
41
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 2023:
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 2023.
In order to ensure that Telekom Slovenije Group companies and employees comply with the law, other
rules, applicable recommendations and bylaws, the Telekom Slovenije Group’s Compliance
Management Policy defines the purpose and objectives of compliance management, an integrity plan
and powers and responsibilities. The compliance management system facilitates the identification of
risks and the implementation of measures to manage those risks. Playing an important role in that
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
42
framework are preventive actions, and rapid and effective measures in the event of identified breaches.
For more information, see section 8.4.1 Compliance and integrity.
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 2023
43
5.5 Statement regarding the external assessment of the corporate
governance statement for the 2023 annual report
The Slovenian Directors’ Association hereby declares that it performed an external assessment of the
corporate governance statement of Telekom Slovenije, d.d. for 2023 in the period 2 February 2024 to
11 March 2024 in accordance with Article 5.7 of the Slovenian Corporate Governance Code. That
external assessment is not deemed to be the provision of the assurance services provided by accounting
experts with public authorisation (auditors) or accounting experts without public authorisation (e.g.
internal auditors).
As an independent external reference institution that does not provide audit services for the
aforementioned Company or in connection with it, we reviewed all of the contents of the corporate
governance statement and its appropriateness in terms of the fifth paragraph of Article 70 of the ZGD-
1, and assessed whether that statement appropriately describes the governance of the Company, as is
evident from the latter’s relevant documents.
That assessment also included a review of selected reference codes and statements of compliance with
the reference codes that the Company follows. A report was drawn up on the external assessment of
the corporate governance statement, and submitted to the Company’s Management Board and
Supervisory Board.
The Slovenian Directors’ Association hereby declares that the corporate governance statement included
in the annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023 contains all
legally prescribed elements, and that the content of that statement appropriately describes the
governance of the Company, as is evident from documents received from the latter.
11 March 2024
Irena Prijovič, MSc
Executive Director
Slovenian Directors’ Association
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
44
6 SHARE TRADING AND OWNERSHIP STRUCTURE
General information regarding Telekom Slovenije shares as at 31 December 2023
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 2023
8,262
Trading in TLSG shares
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 4.57% of those two indices according to the quarterly review of computational
parameters conducted on 18 December 2023. 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. Telekom Slovenije’s 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. The aforementioned index takes into account
both changes in share prices and dividend yield.
The price of TLSG shares closed at EUR 60.50 on the last trading day of 2023, representing year-on-
year growth of 28.18%, while the SBITOP index was up by 19.81% during the same period. The market
capitalisation of Telekom Slovenije was EUR 395.40 million at the end of 2023, with total turnover in the
Company’s shares amounting to EUR 12.37 million, excluding block trades. That translates to 4.36% of
total turnover in shares on the Ljubljana Stock Exchange, while total turnover in the Company’s shares
was EUR 17.85 million, including block trades.
Trading statistics for TLSG shares
Standard price in EUR
2023
2022
Highest daily price
61.00
61.00
Lowest daily price
47.00
46.40
Average daily price
52.10
54.83
Turnover (excluding block trades) in
EUR thousand
2023
2022
Total volume for the year
12,367.35
10,180.02
Highest daily price
485.54
653.46
Lowest daily price
0.00
0.00
Average daily price
50.07
40.56
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
45
Change in the share price and turnover in TLSG shares
Source: Ljubljana Stock Exchange, archive of data.
Movement in the TLSG share price compared to the SBITOP (index: 31 December 2022 = 100)
Source: Ljubljana Stock Exchange, archive of data.
0
200
400
600
45
50
55
60
65
in EUR thousand
EUR
Turnover, excluding block trades (right axis)
TLSG share price (left axis)
128
120
95
100
105
110
115
120
125
130
135
Index
TLSG
SBITOP
TLSG
SBITOP
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
46
Key financial data relating to TLSG shares
31 December
2023 /
31 December
2022 /
I – XII 2023 /
I – XII 2022 /
Closing price of one share on the last trading day of the
period in EUR
60.50
47.20
Capital return per TLSG share during the period in %
1
28.18
-16.01
Telekom Slovenije
Book value of one TLSG share in EUR
2
96.43
92.76
P/BV for TLSG shares
0.63
0.51
Net earnings per TLSG share
3
in EUR
3.67
3.20
Telekom Slovenije Group
Book value of one TLSG share in EUR
4
100.78
93.59
P/BV for TLSG shares
0.60
0.50
Net earnings per TLSG share
5
in EUR
7.24
5.77
1
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.
2
The book value of one share is calculated as the ratio of the book value of Telekom Slovenije’s equity on the last
day of the period to the number of issued ordinary shares of Telekom Slovenije.
3
Net earnings per share is calculated as the ratio of Telekom Slovenije’s net operating profit for the accounting
period to the average number of issued ordinary shares of Telekom Slovenije, excluding treasury shares.
4
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 of Telekom Slovenije.
5
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 of Telekom Slovenije, excluding treasury shares.
Ownership structure and largest shareholders as at 31 December 2023
11
Telekom Slovenije had 8,262 shareholders at the end of 2023, a decrease of 196 relative to the end of
2022. Domestic and foreign individual shareholders increased their ownership stake most, by 0.42
percentage points, while foreign legal entities increased their stake by 0.05 percentage points. Domestic
financial companies and funds reduced their ownership stake by 0.37 percentage points, while domestic
companies reduced their stake by 0.10 percentage points.
Ownership structure as at 31 December 2023
* Individual shareholders include individuals who pursue gainful activities on the market.
11
GRI 2-1
Republic of Slovenia 62.54%
Domestic and foreign individuals* 14.79%
Foreign legal entities 6.28%
Kapitalska družba d.d. (pension fund manager;
KAD) 5.59%
Slovenian Sovereign Holding , d.d. 4.25%
Domestic financial companies and funds 3.78%
Domestic companies 2.20%
Treasury shares 0.56%
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
47
The concentration of ownership, as measured by the ownership stake held by the ten largest
shareholders, stood at 79.58% at the end of 2023, a decrease of 0.59 percentage points in year-on-year
terms.
Ten largest shareholders
Shares held by the Management Board and Supervisory Board of Telekom Slovenije
Members of the Management Board and Supervisory Board held 1,178 TLSG shares as at 31
December 2023.
Name
Office
Number of
shares
% of
equity
Management Board
Boštjan Škufca Zaveršek, MSc
Vice-President of the Management Board
380
0.00581
Vesna Prodnik, MSc
Member of the Management Board
400
0.00612
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
1,178
0.01802
Telekom Slovenije complies with the applicable legislation and the Rules Restricting Trading in the
Shares of Telekom Slovenije when trading in corporate shares by representatives of the Company and
reporting on such transactions.
Investor relations
12
We strive for equal treatment, and the transparency, timeliness and accuracy of information in investor
relations. 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 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).
12
GRI 2-29
62.54%
5.59%
4.25%
1.88%
1.65%
1.22%
0.80%
0.68%
0.56%
0.39%
0%10%20%30%40%50%60%70%
Republic of Slovenia
Kapitalska družba, d.d.
Slovenian Sovereign Holding, d. d. (SDH)
Citibank N.A. - fiduciary account
Erste Group Bank AG - PBZ Croatia Osiguranje -
fiduciary account
Perspektiva FT, d.o.o.
Raiffeisen Bank International AG (RBI) - fiduciary
account
Guarantee Fund of the First Pension Fund
Telekom Slovenije, d.d.
NLB Funds – Multi - Asset Slovenia
30.9.2023
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%
Republic of Slovenia
Kapitalska družba, d.d.
Slovenian Sovereign Holding, d. d. (SDH)
Citibank N.A. - fiduciary account
Raiffeisen Bank International AG (RBI) - fiduciary…
Perspektiva FT, d.o.o.
Guarantee Fund of the First Pension Fund
Telekom Slovenije, d.d.
Lisca d.o.o.
NLB Funds – Multi - Asset Slovenia
31.12.2022
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
48
In addition to regular communication, we carried out the following activities in 2023:
– 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 three meetings of investors; and;
– we organised a General Meeting of Shareholders.
We regularly publish price-sensitive and other important information on the Company’s website in the
Investor relations section and in the Ljubljana Stock Exchange’s SEOnet system. A total of 27 press
releases were issued in 2023, with simultaneous publication in Slovene and English.
Financial calendar
The financial calendar is published in the Ljubljana Stock Exchange’s SEOnet system and on the
Company’s website (https://www.telekom.si/en/about-us/investor-relations/financial-calendar). Any
changes to the financial calendar are published in the same manner.
Dividend Policy
The objective of Telekom Slovenije’s Dividend Policy is to pay dividends in the amount of 30% to 50%
of the Telekom Slovenije Group’s net profit, taking into account the Group’s current financial position
and investment needs.
At the 36th General Meeting of Shareholders held on 16 June 2023, shareholders did not adopt a
resolution on the use of distributable profit, which amounted to EUR 40,292,646.55 for 2022.
Treasury shares
Telekom Slovenije did not purchase treasury shares in 2023. The Company held 36,836 treasury shares
on the final day of 2023, representing 0.56% of all issued shares.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
49
7 OPERATIONS OF THE TELEKOM SLOVENIJE GROUP IN 2023
7.1 Business environment and trends in the sector
7.1.1 Impact of the macroeconomic environment on operations
Slovenia
Economic growth slowed in Slovenia in 2023, but will recover slightly in 2024 (2.4%). Slightly higher
growth in GDP is expected in the two years that follow (2.5% in 2025 and 2.6% in 2026). Continuing
growth in investments, easing inflationary pressures and the recovery of foreign demand will have a
favourable impact on economic trends.
Uncertainties regarding the realisation of IMAD’s Spring Forecast of Economic Trends 2024 are linked
primarily to the geopolitical and economic situation in the international environment, which could impact
the speed of the expected recovery and easing inflation in trading partners. Uncertainties are also
present in the domestic environment and are linked to the impact of deteriorating competition in the
export sector of the economy, Slovenia’s capacity to implement a high level of investments in the coming
years, and a lack of clarity on some reform measures.
After relatively high growth in the period following the epidemic, growth in activity in the euro area slowed
in 2022 and stagnated in 2023. According to Eurostat’s estimate, GDP growth was 0.5% in 2023.
Slowing growth is the result of the weakening household purchasing power in the context of high
inflation, more stringent financing conditions due to the sharp tightening of monetary policy, the partial
withdrawal of fiscal support and declining foreign demand. International institutions’ latest forecasts of
economic growth in Slovenia’s most important trading partners in 2024 indicate strengthening growth in
GDP. Economic growth of 0.7% is forecast for the euro area this year, followed by 1.4% growth in 2025
and 1.5% growth in 2026.
Key macroeconomic indicators in Slovenia
Source: SURS, Bank of Slovenia, ECB and UMAR calculations and forecasts (Spring Forecast of Economic Trends, February
2023)
Kosovo
Kosovo has a high unemployment rate, and its GDP is just a sixth of Slovenia’s, for which reason prices
of telecommunication services on the Kosovar market, where IPKO operates, are significantly lower
than those in Slovenia. The economy remains dependent on economic and employment developments
in Western Europe, and on foreign direct investment.
Annual GDP growth can be expected to average 4% in 2023 and 2024, thanks primarily to a fall in
international commodity prices, lively remittance inflows from the diaspora, and solid macroeconomic
policy. Average inflation is expected to have fallen to approximately 5% in 2023, and to continue slowing
to 3.5% in 2024. The risks to growth are balanced over the short term, but are greater over the medium
term given the complexities of the geopolitical situation.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
50
Gross domestic product in Kosovo
Source: International Monetary Fund, World Economic Outlook Database, October 2023
Situation on the telecommunications market, trends and opportunities
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
51
7.1.2 Comparison of the Slovenian telecommunications sector with the EU
Source: European Commission (Digital Decade Country Report 2023, Slovenia)
Fixed broadband access market
Slovenia has very good coverage with a very high-capacity fixed network, which is slightly above the
EU average (Slovenia: 76%; EU: 73%). Just 51% of households in rural areas are covered, as the
complex structure of the terrain presents a major challenge.
The penetration of broadband connection with a speed of at least 100 Mb/s has increased in Slovenia
(from 43% of households in 2021 to 52% in 2022), but continues to lag behind the EU average (55%).
The fixed broadband connection market in Slovenia continues to grow at a slow pace. IP TV is also
growing, albeit at a slower pace, while VoIP has begun to decline.
Coverage with the optical network to premises (FTTP) in Slovenia stands at 76%
(2022), compared with 56% of households in the EU overall. FTTX connections
accounted for 55.0% of all broadband connections in Slovenia in the third quarter
of 2023.
Telekom Slovenije is upgrading and expanding its fibre optic network, and is thus
laying the infrastructural foundations for the future of the telecommunications
sector.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
52
Growth in fixed broadband connections in Slovenia
Source: AKOS, SURS, Q3 2023
There were a total of 680,306 broadband connections in Slovenia at the end of the third quarter of 2023
(compared with 679,851 at same point of 2022), 86.2% of which were accounted for by residential
connections. The household fixed broadband penetration rate reached 83.7% in Slovenia (83.3% in
2022).
13
Telekom Slovenije holds a 28.0% market share in the aforementioned segment.
The proportion of fibre optic connections and the offer of high-speeds in operator packages is also
increasing. At the end of the third quarter of 2023, the number of active fibre optic connections in
Slovenia was already 374,448, which represents 55.0% of all connections. The number of fibre optic
connections rose by 8.1% in one year.
Market shares of fixed broadband technologies in terms of the number of broadband internet
connections in Slovenia
Source: Report on the development of the electronic communications market for the fourth quarter of 2023, AKOS
13
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.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
53
Pay TV market
According to forecasts by analysts at Analysys Mason, IPTV connections will continue to rise, both in
terms of number and value, while the number of cable TV users will continue to fall. OTT services (video
content provided over the internet) will become as popular as IPTV by 2027. OTT services provided by
operators will then have almost as many users as IPTV services.
According to figures from AKOS, pay TV is present in 79.2% of households (the same as at the same
period of 2022).
Market shares of TV connections by technology
Source: Report on the development of the electronic communications market for the third quarter of 2023, AKOS
Fixed telephony market
According to Analysys Mason, the fixed telephony market is continuing to decline, and is increasingly
being replaced by mobile telephony.
IPTV accounts for 60.1% of all TV connections in Slovenia and continues to
grow. It is followed by cable TV (35.6%), where the number of connections is
falling (fourth quarter of 2023; source: AKOS).
The proportion of IP telephony connections stood at 91.8% in Slovenia at the
end of the fourth quarter of 2023. That proportion is rising, albeit more slowly
than in previous years.
Telekom Slovenije had just over 117,000 users on FTTH connections at the
end of the third quarter of 2023 (same period of 2022: 109,000).
Telekom Slovenije holds the highest share of the IPTV market, with 41.8%
(fourth quarter of 2023).
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
54
Mobile services market
Technological obsolescence means that European operators are gradually withdrawing 2G and 3G
networks, and replacing them with 5G. Telekom Slovenije stopped using 3G in 2022. According to
Analysys Mason, 81% of mobile connections in western Europe will use 5G by 2027. Data traffic will
continue to increase. Telekom Slovenije had covered more than 60% of the population with 5G by the
end of 2023.
Mobile
connection with regard to type of subscription and proportion of 5G connections, Western Europe
(million users), 2017–2027
Source: Analysys Mason – Western Europe telecoms market: trends and forecasts 2022–2027; February 2023, based on data
up to Q2 2022.
General coverage with 5G has increased sharply in Slovenia, from 37% in 2021 to 64% in 2022
(European Commission, Digital Decade Country Report 2023, Slovenia), but still trails the EU average
of 81%. 5G coverage in the 3.4 to 3.8 GHz band essential for the most advanced applications is
significantly higher in Slovenia than in the EU overall (55% versus 41%).
The number of active mobile telephony users in Slovenia in the third quarter of 2023 was up more than
62,000 or 2.3% on the same point of the previous year. The mobile penetration rate had risen to 128.4%
by the third quarter of 2023.
The household mobile broadband access penetration rate stood at 98.2% in
Slovenia in the fourth quarter of 2023 and will continue to rise.
The household penetration rate of active mobile telephony users stood at
128.6% in Slovenia in the fourth quarter of 2023.
Telekom Slovenije maintained a market share of 35.8% in fixed telephony in the
fourth quarter of 2023.
Telekom Slovenije maintains the leading share of the mobile telephony market
(35.0% in the fourth quarter of 2023).
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
55
Shares of the mobile telephony market in Slovenia
Source: Report on the development of the electronic communications market for the fourth quarter of 2023, AKOS
The volume of data traffic in 4G networks and the most advanced networks with mobile broadband
access is growing. Telekom Slovenije’s share of the mobile broadband internet access market stood at
30.7% in the fourth quarter of 2023. The household mobile broadband access penetration rate stood at
98.2% in Slovenia in the fourth quarter of 2023, and will continue to rise.
B2B market
14
Operators’ revenues for ICT services in western Europe will increase at an annual rate (CAGR) of 8.2%
to reach EUR 23.0 billion by 2027 (source: Analysys Mason). ICT services include security, unified
communications, co-locations and cloud services, such as SaaS and IaaS. Take-up of these services at
businesses was accelerated by the Covid-19 pandemic, which increased many firms’ interest in digital
transformation.
Operator revenues from dedicated connections will rise slightly from EUR 16.9 billion in 2021 to EUR
17.3 billion in 2027 (source: Analysys Mason for western Europe).
Demand for bandwidth per connection is rising due to the intensifying migration of business applications
to the cloud. 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 SD-WAN and
other software-supported network services.
Total revenues in the IoT value chain in western Europe are forecast to rise at a CAGR of 12% between
2021 and 2027, but the share of connection revenues that they account for will fall.
Total revenues in the IoT wireless value chain (TVC) will reach almost EUR 31 billion by 2027. IoT
connectivity offered by operators will continue to account for a small share of total revenues (8% by
2027). The car sector alone will account for more than half of IoT TVC revenues, while the sectors of
14
SDG 8.2
In terms of market shares of mobile telephony users with regard to mobile
technology, the share of 5G users is growing (26.4% in the fourth quarter of
2023). The highest market share is still accounted for by 4G users (65.8% in the
fourth quarter of 2023), but that figure is falling.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
56
smart buildings and utilities will also see considerable growth in revenues. These sectors will be
strengthened by EU funding earmarked to assist in meeting sustainability targets.
Revenues from ICT services in Slovenia will rise at a CAGR of 8.4% over the period to 2027. The
number of IoT connections will rise sharply, which will drive growth in revenues (CAGR of 13.8%). IoT
connectivity will nevertheless account for just 3.7% of revenues in the mobile segment in 2027.
7.1.3 Telecommunications sector in Kosovo
IPKO retains its position as one of the leading brands in the Kosovar market. It is recognised as a
brand for young people in the mobile telephony segment, and also has a significant share of the fixed
services segment.
The mobile market remains largely prepaid, with the widespread use of OTT applications and a
significant shift from voice to data services. In fourth quarter 2023, Vala caught up with IPKO in terms of
market share by users (IPKO 49.2%, Vala 49.3%), and in terms of revenue share, IPKO remains the
leading operator in the mobile segment with a market share of 55.0% (RAEPC Q4 2023). IPKO remains
the only operator to have fully implemented the country code of +383. It also launched various Roaming-
Like-Home offers in the western Balkans between 2020 and 2023 at the request of RAEPC.
It has successfully completed 5G testing, and has obtained a frequency band from the Kosovar regulator
RAEPC.
Telekom Slovenije will provide a comprehensive set of business ICT solutions, and
will also attend to planning, installation, management and maintenance. Its smart
infrastructure services are used to provide services that help to raise quality of life,
and to ensure a clean, sustainable environment, and the use of smart solutions.
The mobile segment in Kosovo maintains a high penetration rate. Mobile
penetration in Kosovo reached 107.0% in fourth quarter 2023.
There are two major operators in the market, Vala and IPKO, and a third
smaller operator, Mts. IPKO is the only operator offering 5G in Kosovo,
and was also the only operator to launch eSIM in 2023.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
57
Market shares of operators in the mobile telephony segment in Kosovo
Source: RAEPC report, Q4 2023
The fixed market has become fiercely competitive in the last few years, with three main operators
fighting for market share (IPKO, Artmotion and Kujtesa), with two more just behind (PTK and Telkos).
These operators have launched packages with low prices and higher internet speed, and are continuing
to focus on strengthening and improving the digital product range. The competition (Artmotion and
Kujtesa, and also Telkos in 2023) have standardised their services, and enriched their content to provide
sport and other TV. Despite the fierce competition, IPKO succeeded in maintaining a stable base of fixed
users by offering long-term subscription contracts with benefits, and continued its positive trend of
expanding the subscriber base and increasing premium packages.
The seasonal effect of the diaspora is felt in both the mobile and fixed segments, which helped IPKO to
build its total user base and to grow revenues in 2023.
Market shares of operators in the internet segment in Kosovo
Source: RAEPC report, Q3 2023
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
58
7.2 Risk management
As essential elements in our business processes, the comprehensive and effective identification and
management of risks are major factors in our decisions, and are also vital in meeting our strategic
objectives and realising our mission. We regularly brief stakeholders on the material risks.
Good risk management and the prompt identification of new risks allow us to consistently monitor and
mitigate the adverse impact on our performance from the internal and external environments. We also
monitor risks in the area of sustainability, which are also integrated into the comprehensive risk
management framework at the Group.
Risk management framework
The risk management framework is based on the practices of the COSO and is in line with the ISO
31000 standard.
The carefully planned identification of risks at the Group ensures that our understanding of them is
consistent, which allows for easier communication, more comprehensive reporting on material risks and
the corresponding measures taken, decisions taken with regard to the risk management strategy, and a
clear structure of responsibilities in risk management. The Group also monitors risk exposure in line with
its in-house calculation methodology. We continually promote good awareness of the importance of risk
management. The risk management process is developed and coordinated by the team responsible for
compliance and risk management.
Risks are classified according to type, where we identify internal and external factors:
• strategic risks,
• regulatory and compliance-related risks,
• financial risks, and
• operational risks.
The review of key internal controls is also an integral part of risk management. The establishment and
functioning of internal controls is reviewed once a year, in line with the self-assessment methodology.
This ensures transparency in the identification of deficiencies in processes and more effective risk
management.
Risk management is also reviewed by the internal audit department alongside its other tasks, and it
reports in line with its professional guidance. The Management Board is regularly briefed on risk
assessment at the Group, and the findings of inspections by various assurance providers, and responds
appropriately to the assessment and the findings with a set of measures to manage risks and ensure
compliance. The Management Board reports regularly to the Supervisory Board and the latter’s
committees with regard to material risks, findings and the adopted measures.
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59
Highlights and progress of risk management in 2023
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
60
RISKS WITHIN THE TELEKOM SLOVENIJE GROUP
The material risks at the Telekom Slovenije Group and the measures to manage them are presented
below.
Strategic risks
• We operate in a market of stiff competition based on price, service level and infrastructure, and with
regulatory requirements. The needs and expectations of users are changing, as is their sensitivity to
price. Users demand high-quality and more extensive services at lower prices.
• Managing these risks requires a targeted market approach, constant innovation, the active
monitoring of user expectations and market trends, and flexibility in supply. The emphasis is on
ensuring the highest quality and the broadest set of competitive services for the most diverse user
segments. To ensure the very best user experience, we are constantly optimising and developing
the product portfolio. We follow user needs by overhauling our mobile and fixed packages, by offering
innovations and by enriching programme content. We also encourage existing users to switch over
to better packages, and carry out subscriber retention programmes.
• We are digitalising user processes (digital communications, simple IT architecture and technology),
and are encouraging the introduction and use of AI.
• We are working hard to promote the sale of cyber security, IT support, eCare and telemedicine
services, and comprehensive ICT solutions tailored to the needs of business customers. We are also
involved in strategic partnerships to develop innovative services.
Regulatory and compliance-related risks
• In doing business we take account of applicable legislation, rulings, sectoral regulations and the
requirements of competent authorities. The regulatory risks inherent in any tightening or expansion
of Telekom Slovenije’s obligations by the regulator of the market for fixed and mobile electronic
communications are managed by means of organisational and process measures, through
constructive dialogue, and by putting forward opinions, commentaries and proposals in procedures
where the regulator’s acts are discussed. We actively participate in analysis of the relevant markets,
and consistently apply the rulings issued by the regulator and ensure our regulatory compliance. We
also pursue legal remedies against regulatory rulings when this is justified. We regularly monitor
changes in the regulatory framework.
• We process extensive collections of personal data relating to users, business partners, employees
and other stakeholders. Much of our attention therefore turns to the security and compliance of data
processing, for existing services and for new services alike. This we ensure by constantly monitoring,
reviewing and upgrading our processes and measures to protect personal data, by conducting impact
assessments for the development of new services and the introduction of new technologies, and by
continually training employees and authorised agents. This is how we respond to changes in the
regulatory environment, to nascent threats, and to stakeholders’ expectations.
• January 2023 saw the entry into force of the new Personal Data Protection Act (the ZVOP-2), which
finally enacted 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 Processing Regulation). In addition to these regulations, the
sectoral legislation is also important to personal data processing at Telekom Slovenije, most notably
the Electronic Communications Act (the ZEKom-2).
• We are also monitoring the drafting of other regulations in the area of personal data processing in
Slovenia and at EU level that are yet to enter into force but will affect the provision of the Company’s
services in the future. For example, Regulation (EU) 2023/1543 on European Production Orders and
European Preservation Orders for electronic evidence in criminal proceedings and for the execution
of custodial sentences following criminal proceedings, which begins to be applied in August 2026,
the new ePrivacy Regulation, which is being coordinated between EU bodies, and the Data Act.
• We are preparing for the introduction of Directive (EU) 2022/2464 as regards corporate sustainability
reporting (CSRD) and the European sustainability reporting standards (C(2023)5303), which enter
into force in 2024. The process of defining double materiality as envisaged by the directive was
carried out in 2023, and represents the basis for reporting under the European sustainability reporting
standards. For more, see section 8.1.1 Management of sustainability at the Telekom Slovenije
Group.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
61
Financial risks
• We regularly monitor changes in the financial environment and the different financial risks to which
we are exposed in our operations.
• We manage liquidity risk by managing and planning cash flows and optimising working capital, by
ensuring that financial debt has appropriate maturities, through the use of liquid assets within the
Group, and through short-term credit lines that are regularly rolled over with respect to needs.
• Credit risk management is achieved through credit assessment and the active monitoring of
subscribers’ transactions, and by setting maximum allowable exposures. The risks posed by a
deterioration in the financial position of subscribers are also managed by means of credit protection
and regular monitoring of its adequacy. Monitoring of the settlement of contractual obligations and
the active recovery of past-due debt are elements of comprehensive credit risk management.
• Interest rate risk was managed by ensuring that financial debt with fixed interest rates and/or hedged
interest rates or with variable interest rates is properly structured.
Operational risks
• Managing the risks of the network and infrastructure is one of the key elements in operational risk.
The complexity of these systems is continually increasing. This is being driven by the rapid
development of new technologies and services, new security threats, the unending rise in user
expectations and the increased scope of regulatory requirements. We therefore continually upgrade
and overhaul the technology and security of our networks, data centres and other technical
infrastructure. Activities is underway to modernise and upgrade the RAN with 5G technology, to
make a generational replacement of the MPLS backbone network and to upgrade the mobile packet
network. To ensure business continuity, we regularly assess and, as necessary, upgrade the
topologies and capacities of the infrastructure and ICT services. We are setting up a new support
location for disaster recovery in Kosovo.
• Modern network technology (Software Defined Access or SDA), which already includes the zero trust
architecture principle of cyber security and advanced user authentication and authorisation
techniques, is being introduced at an accelerated rate in the internal business network. We
continuously develop systems for monitoring technologies and anomalies in the infrastructure and
ICT services. Penetration testing and testing of the vulnerability of systems is carried out within the
framework of the Cyber Security and Resilience Centre, which operates 24/7. Other activities include
security reinforcements that are constantly being made to the infrastructure, the adaptation of
networks and systems to new forms of threat, the planned implementation of various security tests,
regular programme upgrades, the management of access to information resources, and regular
procedures for the recovery of services and systems. We are introducing additional protection at the
application level. We also manage risks by upholding 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,) thereby improving the resilience of
the network and other infrastructure.
• In the IT field we are continually improving processes and mechanisms to ensure the smooth
functioning of systems and applications. We regularly carry out modernisation and technological
overhauls in line with trends and needs. Effective risk management in connection with IT solutions
and processes is also being ensured with the establishment of additional controls and the
digitalisation of controls.
• We continually monitor electricity prices, which are unpredictable in light of the situation on global
markets. We are responding to changes by adapting the procurement model and making partial
purchases of electricity. In so doing we are focusing on energy efficiency, and cleaner sources of
energy.
• We manage procurement risks through a centralised procurement function, standardised
procurement procedures, and an in-house methodology for assessing risk when working with
suppliers. We actively review compliance in the performance of their contracts, whose provisions
also include the code of conduct for suppliers. Our communication with suppliers is proactive and
regular, and we monitor whether goods are available and deliveries are made on time. We make
forecasts and order goods in advance to ensure that inventories are of sufficient size, and we
consistently pursue a strategy of two or more suppliers for key and strategic procurements. We also
explore the possibility of additional suppliers, in particular for critical goods and services, and take
measures to reduce any risks identified.
• The risks posed by climate change and the related material damage demand greater resilience and
faster adaptation to the recognised and anticipated impact of increasingly pronounced climate
change. To increase the resilience of the network, we take preventive measures to avert or mitigate
damage. Work to restructure the insurance programme is underway.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
62
• We respond to HR risks through targeted development and training programmes, by promoting the
transfer of knowledge through mentors, by offering support to employees in the acquisition of new
competences, by promoting collaboration, connections and internal mobility, and by implementing
targeted activities to motivate and retain employees. Our employee motivation and remuneration
systems are regularly upgraded, and our aim is to systematically build the employer brand. We place
a great deal of emphasis on the wellbeing of employees, and on measures in connection with
occupational health and safety. Our partnerships with various educational institutes, through which
we work with young people, allow us to attract new and diverse candidates. We also offer company
scholarships. We actively pursue a diversity and inclusion policy, and we collaborate with social
partners.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
63
7.3 Performance of the Telekom Slovenije Group
Analysis of the consolidated income statement
The Telekom Slovenije Group generated EUR 708.2 million in operating revenues in 2023, an increase
of 7% relative to 2022. The Group recorded an increase in revenues in several segments of its
operations. The highest growth was recorded in mobile and broadband services, while the most
significant increase in revenues in the ICT segment was recorded in the provision of cyber security.
Revenues from the Online Store, and from insurance and eHealth services also increased, as did
revenues on the wholesale market. All Group companies recorded an increase in revenues generated
on the market.
The operating expenses of the Telekom Slovenije Group amounted to EUR 644.0 million, an increase
of 6% relative to 2022. The increase was driven by higher electricity costs, the impairment of the
infrastructure destroyed in the August floods, and higher direct costs, which is linked to higher sales
revenue.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) at the Telekom Slovenije Group
amounted to EUR 228.6 million, up EUR 12.1 million or 6% on 2022. Had energy prices in 2023
remained at the 2022 level, and if there was no state aid for energy in 2023 and there was no negative
effect of floods, EBITDA would have been 10% higher than in 2022. The EBITDA margin (i.e. EBITDA
as a proportion of sales revenue) was 32.9% at the Group level.
Earnings before interest and taxes (EBIT) amounted to EUR 64.1 million at the Telekom Slovenije Group
level, an increase of 27% relative to 2022. Had energy prices in 2023 remained at the 2022 level, and if
there was no state aid for energy in 2023 and there was no negative effect of floods, EBIT would have
been 46% higher than in 2022.
Following the calculation of income tax (including deferred taxes), the Telekom Slovenije Group
generated a net profit of EUR 47.1 million in 2023, an increase of EUR 9.6 million or 25% relative to
2022. One factor in the rise in Telekom Slovenije Group’s net profit was a change in the corporate income
tax rate from 19% to 22% as of 2024, which had a positive effect on deferred taxes in 2023 in the amount
of EUR 5.7 million. Had energy prices in 2023 remained at the 2022 level, and if there was no state aid
for energy in 2023 and there was no negative effect of floods and no effect of a change in the tax rate;
the net profit of the Telekom Slovenije Group would have been 30% higher than in 2022.
Adjusted EBITDA, EBIT and net profit
In EUR million
I - XII 2023
Adjusted I-XII
2023*
I - XII 2022
Index 23/22
Index
adjusted
23/22
EBITDA
228.6
237.6
216.5
106
110
EBIT
64.1
73.2
50.4
127
146
Net profit
47.1
48.7
37.5
125
130
* EBITDA and EBIT adjusted as energy prices in 2023 remained at the 2022 level, and if there was no state aid
for energy in 2023 and there was no negative effect of floods. In addition to the aforementioned, the net profit is
additionally adjusted for the impact of the changed tax rate.
The Telekom Slovenije Group and Telekom Slovenije recognised impairments for the infrastructure
damaged in the August floods. That impairment was lower than the estimate published in the Unaudited
Business Report for the period January to September 2023. The recognised total net effect on the EBIT
of the Telekom Slovenije Group in 2023 was estimated at EUR 3.9 million, with Telekom Slovenije
accounting for EUR 1.2 million of that figure. The estimated impairment to the present value of property,
plant and equipment amounted to EUR 5.6 million at the Group level and to EUR 1.3 million at Telekom
Slovenije, and was recognised in the income statement in other operating expenses. The effects of
impairment need to be considered together with estimated other operating revenues (revenues in the
form of insurance claims paid and revenues from the reversal of provisions for subsidies received),
which amounted to EUR 1.7 million at the Group level and EUR 150 thousand at the Company.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
64
In accordance with the Act on Aid to the Economy to Mitigate the Impact of the Energy Crisis, the
Telekom Slovenije Group received aid in the amount of EUR 3.6 million during 2023.
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 amounted to EUR 1,317.9 million as at 31 December 2023, up EUR 42.5 million or 3.3%
on 31 December 2022.
Non-current assets amounted to EUR 1,044.0 million, up EUR 12.5 million or 1.2% on the end of 2022.
There were increases in property, plant and equipment (EUR 7.0 million) and in right-of-use assets (EUR
3.8 million). The proportion of the Group’s total assets accounted for by non-current assets declined to
79.2% (2022: 80.9%)
Current assets amounted to EUR 273.9 million, up EUR 30.0 million or 12.3% in year-on-year terms.
There were increases of EUR 18.1 million in cash holdings, and EUR 11.1 million in trade receivables
and other receivables.
Equity totalled EUR 658.6 million, up EUR 47.0 million or 7.7% on the end of 2022, and accounted for
50.0% of total assets (2022: 48.0%).
Non-current liabilities amounted to EUR 448.8 million, and accounted for 34.1% of total assets. The
figure was up EUR 98.6 million on the end of 2022, primarily as a result of the refinancing of a long-term
loan in the amount of EUR 100 million maturing in December. Non-current liabilities as at 31 December
2023 were thus up 28.2% on the end of 2022.
Current liabilities amounted to EUR 210.4 million, down EUR 103.0 million on the end of 2022. The
proportion of total assets accounted for by current liabilities declined to 16.0% (2022: 24.6%), primarily
as a result of the refinancing of the long-term loan in the amount of EUR 100 million maturing in
December, which was recorded under current financial liabilities.
Net financial debt as at 31 December 2023 was down 11% on 31 December 2022.
Analysis of the consolidated statement of cash flows
The Group recorded investments in non-current assets in the amount of EUR 170.9 million and outflows
for loans granted and deposits placed in the amount of EUR 0.2 million under outflows for investing
activities.
The Group’s inflows from investing activities in 2023 primarily comprised proceeds from the sale of
non-current assets in the amount of EUR 3.2 million (with the sale of the fibre optic network to ARNES
accounting for EUR 2.5 million of that amount), inflows from interest in the amount of EUR 0.3 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 long-
term loans in the amount of EUR 32.5 million, interest paid on loans raised and right-of-use assets in
the total amount of EUR 17.4 million, and outflows for the approval of loan borrowings in the amount of
EUR 0.1 million. Under IFRS 16, lease liabilities (excluding interest) in the amount of EUR 10.2 million
were recognised under outflows from financing activities.
The Group recorded the refinancing of the long-term loan in the amount of EUR 100 million in December
2023.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
65
Key performance indicators of the Telekom Slovenije Group and Telekom Slovenije (aligned with the
accounts)
15
Telekom Slovenije Group
Telekom Slovenije
in EUR thousand and %
I – XII 2023 /
31 Dec 2023
I – XII 2022 /
31 Dec 2022
Index
23/22
I – XII 2023 /
31 Dec 2023
I – XII 2022 /
31 Dec 2022
Index
23/22
Sales revenue
694,913
652,121
107
601,669
575,886
104
Other operating income
13,254
6,832
194
9,628
3,225
299
Total operating revenues
708,167
658,953
107
611,297
579,111
106
EBITDA
228,569
216,452
106
174,421
167,365
104
EBITDA margin = EBITDA /
sales revenue
32.9%
33.2%
99
29.0%
29.1%
100
EBIT
64,138
50,362
127
36,552
28,484
128
Return on sales = EBIT / sales
revenue
9.2%
7.7%
120
6.1%
4.9%
123
Net profit for the financial year
47,065
37,506
125
23,864
20,793
115
Assets
1,317,866
1,275,338
103
1,250,315
1,223,290
102
Equity
658,638
611,677
108
630,189
606,233
104
Return on equity (ROE)
7.4%
6.2%
120
3.9%
3.4%
113
Equity ratio
50.0%
48.0%
104
50.4%
49.6%
102
Net financial debt
355,737
401,168
89
356,577
411,749
87
Net financial debt / EBITDA
1.6
1.9
84
2.0
2.5
83
Investments (CAPEX)
188,037
167,791
112
158,930
114,086
139
Number of employees as at the
last day of the period
3,253
3,262
100
2,083
2,103
99
Investments as a proportion of
operating revenues
26.6%
25.5%
104
26.0%
19.7%
132
Definitions can be found in point 10.2 Alternative performance measures.
Segment reporting
The criterion for segment reporting is the registered office where an activity is pursued. The Telekom
Slovenije Group thus presents its operations in two segments: Slovenia and other countries. More
details are provided in the financial report in point 6 Segment reporting.
15
GRI 201-1
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66
7.4 Financial performance of the Telekom Slovenije Group
The Telekom Slovenije Group achieves its financial stability by actively planning its cash flows, by
ensuring the appropriate maturity and distribution of financial debt, by financing Group companies, by
managing working capital and cash, and by managing financial risks.
Maturity breakdown of financial liabilities
To ensure its liquidity the Group has short-term funding from banks maturing in 2024. The liquidity
reserve in the form of revolving loans and an overdraft facility on the business account in the total amount
of EUR 55 million was not drawn down as at 31 December 2023.
A portion of the Group’s financial liabilities is accounted for by three syndicated loans in the total amount
of EUR 237.1 million and a loan from the European Investment Bank in the amount of EUR 100 million.
Other financial liabilities consist of finance leases.
Loans received as at 31 December 2023 carry fixed and variable interest rates. Fixed interest rates
account for 29.7% of interest-bearing financial liabilities at the Group level
16
.
16
Loan principal is taken into account.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
31.12.2021 31.12.2022 31.12.2023
Non-current financial liabilities Current financial liabilities
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
67
Net financial debt (NFD) of the Telekom Slovenije Group
The net financial debt to EBITDA ratio stood at 1.56 at the end of 2023.
Repayment schedule for existing long-term loans, 2024 to 2028
A total of EUR 132.5 million in long-term loans was repaid in 2023.
A long-term syndicated loan in the total amount of EUR 100 million was drawn down from SID banka
and NLB at the end of 2023, thus fully refinancing the tranche of the long-term syndicated loan maturing
in December 2023.
Subsidiaries secure borrowings from the parent company. Financing within the framework of the Group
and the reallocation of cash surpluses between Group companies allows for more effective cash
management and the optimisation of cash flows.
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
In their loan agreements creditor banks require the fulfilment of financial commitments at Group level.
Failure to meet the commitments could be grounds for the early maturity of the loans. All financial
commitments at the Group level were met as at 31 December 2023.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
68
7.5 Investments
Investments
17
Through investments in the construction, modernisation and development of networks and services, we
provide the basis for attracting new and retaining existing subscribers, and for securing new revenue
sources and maintaining a high level of quality. The majority of investments in 2023 were earmarked for
the expansion of the fibre optic access network, and the modernisation and expansion of the mobile
radio network, which will provide users a superior user experience in terms of broadband content and
high-speed internet access. Investments were also earmarked for cyber security, business information
support, and for the development of new services and the continued optimisation of operations. For
more information, see section 7.6 Development of the network, technologies and services.
Investments by company
in EUR thousand
I – XII 2023
I – XII 2022
Index
23/22
Telekom Slovenije
158,930
114,086
139
Other companies in Slovenia
23,707
23,109
103
IPKO – Kosovo
23,629
38,924
61
Other companies abroad
1,670
1,374
122
Exclusions and adjustments between Group
companies
-19,899
-9,702
-
Telekom Slovenije Group
188,037
167,791
112
Structure of investments by purpose
17
GRI 3-3, 203-1, IO1
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69
7.6 Development of the network, technologies and services
18
We manage the largest and most advanced fixed and mobile networks, in which we provide users the
best user experiences. Through continuous and systematic development and research projects, we
ensure reliable, stable and secure connectivity at the highest speeds.
KEY RESEARCH PROJECTS
Research activities are co-financed with European funds, which we secured via various tenders,
primarily in the scope of the Horizon Europe programme for the period 2021 to 2027. These projects
facilitate cooperation with domestic and foreign partners and the development of new services and
technologies in the international environment. In 2023, we focused on the intensive development of new
technologies, such as 5G, cyber security, the Internet of Things and critical communications. We
received state aid in 2023 in the amount of EUR 185.6 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).
19
Major research and development projects in which we participated in 2023 included:
• 5G-LOGINNOV,
• 5G-IANA,
• PRECINCT,
• SUNRISE, and
• ATLANTIS.
Completed in November 2023 was the 5G-LOGINNOV (https://5g-loginnov.eu/) project, which began in
2020 and was intended for the optimisation of logistics and traffic at European ports. Over a three-year
period, 15 partners tested solutions at ports in Koper, Hamburg and Piraeus.
Telekom Slovenije set 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 used the latest 5G mobile network technologies and devices, sensors,
automation, analytics and traffic management systems, including the use of self-driving freight vehicles.
The aim of the European 5G-IANA (https://www.5g-iana.eu/) project is the establishment of an open
experimental platform for the needs of the automotive industry. The platform will be intended primarily
for small and medium-sized enterprises, and will facilitate the development, set-up and testing of
innovative solutions in connection with self-driving vehicles and communication between devices in
vehicles.
18
GRI 3-3, 203-1, IO1
19
GRI 201-4
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70
Participating in the project are sixteen partners from eight European countries; Telekom Slovenije
provides the necessary 5G infrastructure for the testing of the experimental 5G platform. We will also
provide the necessary virtualised environment, in which partners will establish virtual network functions.
The European PRECINCT project (https://www.precinct.info/) was completed at the end of September
2023. Independent assessors gave the project the highest possible score and recommended it as an
example of best practice. The primary aim of the project was the connection of critical infrastructure
managers to protect against cyber threats and natural disasters in a specific geographical area.
The project included 40 international partners from different European countries, who used simulations
and artificial intelligence in a test environment to develop tools for identifying security vulnerabilities, and
various measures for the more effective provision of critical infrastructure security. The project thus
contributed significantly to the increased security of the population and the improved reliability of the
European critical infrastructure. Telekom Slovenije’s role in the project was to set up a test environment
for the testing of various solutions, such as a digital twin and serious games. Serious games represent
a special category of video games that are not intended solely for entertainment, but primarily for
education or training.
We are the only telecommunications operator included in the SUNRISE project (https://sunrise-
europe.eu/), which began in October 2022 and is expected to last three years. The aim of the project is
to develop solutions that will facilitate active cooperation between links in the critical infrastructure, and
will ensure improved readiness and equipment in 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. The project includes 41 European partners, including ten from Slovenia. During the project,
Telekom Slovenije will provide a modern information infrastructure and connectivity via the 5G network
for secure and reliable communication.
The aim of the ATLANTIS project (https://www.atlantis-horizon.eu/) is to increase resilience to a
combination of cyber and physical attacks that target critical infrastructure. A total of 39 European
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
71
partners are participating in the project, which began in October 2022 and is expected to last until
September 2025.
The aim of the project is to improve the identification of systemic risks and the vulnerabilities of critical
infrastructure. New flexible and adaptable measures and tools will be developed for that purpose.
Cooperation will improve between critical infrastructure managers and other stakeholders.
DEVELOPMENT OF THE NETWORK AND SOLUTIONS
20
Fixed network
Through the fixed access network, we ensure broadband coverage, and the high performance of the
cable network and active access devices. We continued to modernise radio and fibre optic access
networks in 2023, while development activities focused on the Internet of Things, 5G technology and
the provision of services through the mobile network.
We carried out the third phase of the evolutionary upgrade of the aggregate element of the MPLS
backbone network. The project will be completed by the end of 2024. We upgraded the peering element
of the MPLS network: connectivity with international internet service providers. We completed the
construction of a consolidated network of data centres and completed the third phase of the internal
business network upgrade. We also expanded transmission systems (microwave connections, xWDM
systems, etc.).
In 2023, we completed a multi-phase project to upgrade the central disk array to ensure sufficient
capacities for the next two years. We also upgraded the server infrastructure of the private cloud’s
virtualised environment.
In the area of communication platform development, we upgraded the firewall systems for business and
private telephony, and carried out the generational replacement of the call recorder and a number of
system software upgrades. We began to upgrade the e-call system and to phase out the EWSD
(Electronic Digital Switching System) at the Rakovnik location.
In terms of the development of support systems, we carried out several software upgrades (DNS
systems, DHCP, AAA, etc.) and further enhanced the security of key infrastructure systems. In the
business segment, we participated in a large number of projects, primarily in the security and network
solutions segment.
FTTH fibre optic access network and access devices
Telekom Slovenije’s fibre optic network is continuously expanded and upgraded, as we use it to provide
higher internet speeds (up to 1 Gb/s and up to 10 Gb/s upon request), a superior user experience for
broadband content and advanced home network solutions. At the same time, we are improving the cost
effectiveness of the system and contribute to the achievement of Slovenia’s strategic objectives in the
development of gigabit infrastructure by 2030.
The fibre optic network provides higher internet speeds, a superior user experience for broadband
content and advanced home network solutions. At the same time, we are also improving the cost
effectiveness of the system and contribute to the achievement of Slovenia’s strategic objectives in the
development of gigabit infrastructure by 2030.
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 throughout Slovenia, in both urban centres and rural areas, in accordance
with the development strategy, economic criteria and the interests of users. To that end, we are fulfilling
our commitment to build a fibre optic network in locations where we have expressed market interest.
We are working intensively with municipalities, local communities and other infrastructure operators in
20
GRI PA6
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72
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 continued to expand the DWDM ROADM network in 2023 with the inclusion of 100 G and 10 G
interfaces, and through the construction of a distribution network for the synchronisation of the 5G
network. 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 Zagreb–Banja Luka–Sofia section, and
included additional 100 G connections.
Radio network
Users’ needs for even higher-capacity mobile internet access continue to grow every year. The trend of
rising data transfer quantities was also characteristic of 2023. For this reason, the mobile network,
software and equipment are continuously upgraded with 4G and 5G technologies. We also increase the
capacities of base stations. The external and internal coverage of the mobile radio signal is improved
through the construction of base stations at new locations. Following intensive preparations during the
first half of the year, we implemented the biggest project to date aimed at the modernisation and
expansion of the 4G and 5G radio network during the second half of the year, and are thus following
guidelines on the use of the frequency spectrum for advanced 4G and 5G technologies.
The following were connected to Telekom Slovenije’s radio access network in Slovenia as at 31
December 2023:
• 1,547 GSM base stations,
• 1,556 LTE/4G base stations, and
• 520 5G base stations.
We covered more than 97% of the population with the LTE/4G network and more than 60% of the
population with the 5G network as at 31 December 2023. We included an additional 77 small cells for
the needs of internal coverage.
We are upgrading the 5G network according to the NSA (non-standalone) principle; in November 2023,
we set up a demonstration environment for a private network according to the SA (standalone) principle.
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 brings users even faster and more reliable mobile data transfer and stabler connections. 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. In November 2023, we switched on the first test private network based on
SA technology.
Connectivity at sporting events
We provided high-quality and reliable services and connections to numerous visitors, organisers,
competitors and journalists at the largest sporting events in Slovenia.
We provided flawless communication connections at the 59th Golden Fox event in Kranjska Gora and
at the world cup biathlon event in Pokljuka, where we also provided access to a high-capacity Wi-Fi
network for 15,000 fans. In Kranjska Gora and Planica, we upgraded our 4G and 5G network with even
higher capacities and speeds prior to the Nordic World Ski Championships and other sporting events.
In Planica, we we connected the entire venue and provided more than 2,000 members of the media all
the services they need for the high-quality and uninterrupted performance of their work. We set up a
single, high-capacity open Wi-Fi network that was available to all in Planica, something no other
organisers of similar sporting events have ever achieved. A total of 57,000 fans watched the sporting
event at the venue. In the Municipality of Kranjska Gora, we completed a project to set up a free
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
73
wireless WiFi4EU internet, as part of an EU initiative to set up points for accessing a Europe-wide
wireless internet.
Cyber Security and Resilience Centre
Cyber attacks are becoming increasingly intense and complex, while changing global conditions
increase risks in the area of cyber security. Telekom Slovenije is part of the critical infrastructure, and is
therefore dedicating a great deal of attention to cyber and information security. We have one of the
largest and most advanced cyber security and resilience centres in the region. In our centre, we ensure
the cyber security of our systems, networks, services and users, while we also provide cyber protection
services to various organisations, companies and events. Our experts handled 65% more security
incidents in 2023 than in 2022. The most frequently used methods of attack used by attackers 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. DDoS attacks, network
scanning and the search for security weaknesses have become part of everyday life.
The Cyber Security and Resilience Centre continued activities in 2023 aimed at automation of
processes, risk management and the provision of services to new users. We introduced new cyber
security management tools and concepts, and strengthened employee competences.
Trend in the handling of security events by the Cyber Security and Resilience Centre
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74
NEO multimedia platform
The NEO multimedia platform, which brings
together the best home and entertainment
solutions in one place, celebrated its fifth
anniversary at the end of 2023. The platform is
the result of the development of Telekom
Slovenije’s experts.
NEO continuously and rapidly adapts to the
habits of TV viewers. The interface was updated
at the end of the summer based on focus group
studies for an even simpler and more intuitive
method for accessing content. We updated the
home screen and left-hand menu.
We recorded 12 user videos, which we referred to as NEO Namigi (NEO Hints), for the updated NEO
screen. Those videos explain in detail specific functionalities and facilitate the use of services and
settings, such as voice control, the activation of a Wi-Fi access point, the setting of the PIN code in the
Children’s Park and many others.
Smart infrastructure services
Through smart infrastructure services, we are improving the quality of living, and ensuring a clean
and sustainable environment and the use of smart solutions. These services include remote meter
reading, smart parking lots, building energy management and smart cities.
Key smart infrastructure projects in 2023:
• In the scope of the VARCITIES project
sponsored by the Municipality of Novo Mesto,
we introduced a solution for the even higher
quality of life of citizens. We set up an advanced
IoT platform that we integrated with
environmental sensors to provide decision
makers a comprehensive overview of the
situation via an information solution. With this
IoT solution, local communities are able to
support the reduction of emissions, improve
energy efficiency, ensure the smart
management of lighting, mobility, traffic and
parking, and monitor environmental
parameters, such as air quality and
temperature, air pressure, humidity, noise
levels and the water levels of watercourses.
• We launched a mobile application and the Centralka card, together with the Municipality of Celje
and our partners Imovation and Nomago. Centralka improves the mobility system, and brings
together and digitalises the municipality’s mobility services. This modern platform, through which
services are available to the citizens of and visitors to Celje, results in higher-quality, more
sustainable and environmentally friendly living.
• In Citypark, Slovenia’s largest shopping centre, we set up the cost-effective metering of energy
consumption (electricity and heat) and facilitated the easier and more efficient management of
energy consumption on a cloud platform with the analytical processing of meter readings. We
introduced the solution based on NB-IoT technology, as one of the first in this part of the EU, and it
proved to be very successful and reliable for the remote linking of metering devices.
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75
• Together with our partner Metronik, we developed an
innovative platform for the digitalisation of
machinery, which we named IIoT360. It is intended
for the monitoring and optimisation of the functioning
of production machinery in real time, the improved
utilisation and availability thereof, and the possibility
of proactive maintenance. It is based on the latest
Industrial Internet of Things (IIoT) concepts, cloud
technologies and cyber security. We moved pilot
projects to implementation phases in 2023. The solution is available as a managed service that
includes standard building blocks (modules) paid for by the customer in the form of a monthly
subscription.
Business support systems
In 2023, we migrated the Online Store platform to the SAP Commerce Cloud, which is a hybrid solution
that facilitates improved functioning, lower costs and security improvements. We successfully launched
the Red Hat OpenShift platform, which represents an important step on the path to the digital
transformation, as the platform facilitates more effective management and the orchestration
(deployment) of container applications and improved responsiveness to changes. With the integration
of the DevOps methodology and the introduction of continuous integration and continuous deployment
(Ci/CD), we achieved a significantly faster development cycle, which in turn facilitates the quicker
introduction of new functions and improvements. The result is a more agile, flexible and effective IT
environment.
Support information system
Effective information support systems (OSS) are necessary to control everyday processes, and to
manage and maintain the telecommunications network and services. In 2023, we supported new
services and technical solutions for the B2B, B2C and wholesale markets, and developed new
functionalities and applications to support operational processes.
The technical inventory system infrastructure is being updated in the scope of the modernisation of the
OSS, while we also upgraded the HDM system in the test environment, supplemented the WorkForce
Management system, upgraded the CNEEKS system, and supplemented models, interfaces, adapters
and web applications to support the automation of the business segment, new technologies and sales
promotions.
We completed the consolidation of the GIS (geographic information system). We optimised key
processes for the provision of services and the fault management system, and simplified the work of the
technical help desk.
In accordance with the Telekom Slovenije Group’s strategy, we offered OSS systems to the market,
where we successfully implemented information support for individual business users and provided
cyber security services.
Protecting the Company, networks, systems and services
Corporate security management ensures comprehensive security management at the Group level, the
safeguarding of assets and information, a safe and secure working environment, and the secure and
high-quality functioning of our network and services.
We manage technical and mechanical security systems through our own security control Centre (SCC),
which is certified according to the SIST EN 50518 standard. Through the information security
management system (ISMS) and business continuity management system (BCMS), we ensure a high
level of security and the availability of the network and services. Those systems facilitate a rapid
response, protection and the recovery of both services and processes when security threats or incidents
are identified. Both systems are certified according to the international ISO 27001 and ISO 22301
standards.
Another important factor in the area of cyber security is the continuous training and testing of employees
regarding the recognition of cyber security threats. We also inform our users about security threats and
the secure use of electronic communications.
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76
7.7 Marketing and sales
7.7.1 Market and market shares in key service segments
21
The Slovenian telecommunications market (including systems integration and cloud services) is
developed and already in the phase of saturation. Telekom Slovenije maintains a high market share in
all segments in which it operates, and provides the most advanced services, tailored to the needs of
users. We hold 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 2023.
The fixed and mobile segments of the Slovenian communications market are dominated by four
convergent operators. Telekom Slovenije, A1 Slovenija (Telekom Austria Group), Telemach (United
Group) and T-2 compete amongst each other with a range of package services.
Market shares of leading operators in key segments, in %
Source: AKOS, fourth quarter of 2023.
21
GRI 2-6, SDG 8.10
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77
Telekom Slovenije’s market shares in key segments
Source: Report on the development of the electronic communications market for the fourth quarter of 2023, AKOS; internal
Telekom Slovenije figures.
7.7.2 Sales of the Telekom Slovenije Group
22
TELEKOM SLOVENIJE GROUP CONNECTIONS AND SERVICES BY MARKET
The Telekom Slovenije Group had 1% more broadband connections at the end of 2023 than it did at
the end of the previous year. The total number of connections was up by 2% in Slovenia and down by
3% in Kosovo.
The total number of mobile telephony users was up by 4%. The number of mobile telephony users in
Slovenia was unchanged relative to 2022, but up by 7% in Kosovo.
Retail mobile users
Number of connections as at
31 December
2023
31 December
2022
Index
23/22
Slovenia
953,441
949,779
100
Kosovo
955,130
892,665
107
Telekom Slovenije Group
1,908,571
1,842,444
104
Retail broadband connections
Number of connections as at
31 December
2023
31 December
2022
Index
23/22
Slovenia
201,236
196,610
102
Kosovo
98,270
101,285
97
Telekom Slovenije Group
299,506
297,895
101
22
GRI PA4, GRI 2-6, SASB: TC-TL-000.A, TC-TL-000.B, TC-TL-000.C
Fixed broadband access IP TV
Market share 28.0% 41.8% 35.0%
Annual change
(p.p.)
0,5 p.p. 0.5 p.p. -0.6 p.p.
Connections 201.236 1,697.425 953.441
Annual change 2.4% 2.9% 0.4%
Mobile telephony
28.0%
72.0%
41.8%
58.2%
35.0%
65.0%
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
78
Sales revenue of the Telekom Slovenije Group
Breakdown of sales revenue by company
23
in EUR thousand
I – XII 2023
I – XII 2022
Index
23/22
Telekom Slovenije
601,669
575,886
104
Other companies in Slovenia
97,498
94,899
103
IPKO – Kosovo
90,665
79,015
115
Other companies abroad
3,956
3,956
100
Exclusions and adjustments
-98,875
-101,635
-
Telekom Slovenije Group
694,913
652,121
107
TELEKOM SLOVENIJE
Telekom Slovenije generated sales revenue of EUR 601.7 million in 2023, an increase of 4% relative to
2022. Revenues were higher relative to the previous year in the mobile and fixed segments, on the
wholesale market and from additional services, while other revenues and revenues from merchandise
were down.
The focus of our operations is on users, whom we provide the best user experience through advanced
solutions and a portfolio adapted to their needs. We also adapt to the preferences and behaviour of
users through the use of advanced algorithms and machine learning techniques, as this allows us to
identify patterns, trends and links in data. This is also how we provide personalised recommendations,
and increase user satisfaction and loyalty.
Mobile services
In 2023, we included one of the more contemporary Naj or SUPR packages free of charge for
subscribers of older mobile packages. Because users require increasingly more data transfer quantities,
we improved mobile packages by including practically unlimited data transfer in our network and more
than 20 GB of data transfer in countries covered by the EU tariff.
In the prepaid segment, we prepared various promotional campaigns for MOBI and IZI users. In
October, we increased quantities in existing Čvekaj Mobi and Mini Mobi packages at the same prices,
and prepared the new Mobi Net package.
Fixed services
We updated NEO packages by including even faster internet access and a TV programme scheme with
rich content. We simplified the portfolio of fixed packages by including the highest possible internet
speed with respect to technology. We also successfully replaced older Netgem set-top boxes with
modern NEO Smartboxes.
23
GRI 201-1
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79
Information and cyber security
Our Safe Web service protects users against
online fraud, computer viruses, transfers of
harmful files and programs, and the attempted
theft or abuse of personal data, without the
installation of software on users’ devices.
In 2023, the aforementioned service halted
more than ten million cyber threats (attempts to
access dangerous domains) and protected over
40% of devices using the Secure Web service
that would have been exposed to cyber risk
without protection.
VALÚ Smart Wallet
VALÚ is a smart wallet or payment and identification system that
was used by more than 140,000 users in 2023. That translates to a
16% increase relative to 2022. Users executed more than 2.7 million
transactions.
We increased the number of points of sale where the VALÚ Smart
Wallet can be used to make payments by 15%, with such payments
now possible at more than 4,000 points of sale. We expanded the
network of points of sale to petroleum products, pharmacy and
sanitation, libraries, vignette purchases and delivery services, as
well as the sale of footwear and fashion.
Online Store
We migrated the Online Store to the SAP Commerce Cloud, and
carried out a visual and technical redesign. In accordance with the
valid ZVPot and ZEKom, we made it possible for users to view the
lowest price of the last 30 days and to see the offer document
before a purchase is finalised. The portfolio is continuously
updated and now comprises around 5,300 products spanning more
than 130 categories, with more than 3,400 of those products
available in the Loyalty Programme with the option of instalment
payments. In the scope of the Certified Shop, a symbol of secure
online purchasing according to consumers, we received an excellent trust score (9.6 out of 10) and
achieved a high transactional NPS.
eCare
eCare provides the elderly, disabled and chronically ill more
independent and safer living in their home environment. 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.
Together with consortium partner, the Slovene
Federation of Pensioners’ Associations (ZDUS),
we were chosen via public tender in 2023 to
implement the Remote eCare project sponsored
by the Ministry of Solidarity-Based Future, which
represents the continuation of the Home eCare
project, sponsored by the Ministry of Health, which was completed
in September 2023 and co-financed by the European Social Fund (ESF). The service will be available
free-of-charge to 5,500 eligible parties until 30 June 2025, after which time it will be financed under the
Long-Term Care Act.
The Remote eCare project will run from 1 October 2023 to do 30 June 2025, while EUR 3.9 million is
available, primarily to cover eCare connections and subscriptions for use of the service. A total of EUR
359,690 was drawn down from the beginning of October until the end of 2023.
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The results of the Home eCare project, which was completed in September, were seen in the high
level of satisfaction of eCare users. Telekom Slovenije drew down a total of EUR 2.9 million in 2022
and 2023. The majority of that amount (EUR 2.6 million) was earmarked for the connections and
subscriptions of the service’s users. The remainder of drawn funds were earmarked for the
reimbursement of the costs of communication and information about possibilities for using the service
and the execution of required studies.
eCare in the scope of the Safe and Connected at Home project is also provided by numerous of
Slovenian municipalities that subsidise eCare for their citizens. The number of municipalities that have
joined the project was up in 2023, with around 30 participating municipalities subsidising eCare in the
amount of EUR 58,643. eCare is also included in our regular portfolio.
We also make it possible for Slovenian hospitals and health centres to use telemedicine to treat patients
remotely, i.e. in their own home, without hospitalisation or a visit to an outpatient clinic. More than 2,000
patients across Slovenia have been treated using telemedicine. We provided technological support in
2023 for the telemedicine treatment of patients with lung diseases, and developed and tested a
prototype for the integration of telemedicine and eCare.
Points of sale and sales network
Telekom Slovenije’s sales network comprises a broad network of points of sale: 17 Telekom centres and
48 authorised agents with 82 points of sale, and 16 authorised agents who make sales exclusively in
the field.
In 2023, we established the new direct sales channel, which includes an internal field team, sales call
centre and a team of authorised field agents. We thus centralised sales activities in the field and
increased the number of visits. We executed more than 1,500 outreach campaigns in the field and
opened more than 47,000 contacts. The outbound call centre contacted more than 70,000 users,
primarily to inform them about the replacement of their old communicators, which were discontinued at
the end of November 2023.
SOLUTIONS FOR BUSINESS USERS
Solutions for business users represent an important element of our Digital strategic pillar,
where we provide a comprehensive range of ICT solutions, while ensuring the planning,
deployment, management and maintenance thereof.
We are the leader in the introduction and linking of the latest generations of mobile and fixed
communications, systems integration, cloud services and multimedia content. Our most important
partner statuses and certificates are as follows:
• Microsoft CSP (Cloud Solution Provider) status and Direct Partner for the sale of Microsoft cloud
services (Microsoft 365, Azure, AI, etc.). To that end, we provide solutions in our cloud via the
Microsoft SPLA (Service Provider Licence Agreement) and Open License and Open Value
agreements. We enjoy the Solutions Partner for Modern Work status.
• Premier Partner Status in the area of systems integration (Premier Integrator) for Cisco
technological solutions.
• HP Amplify Synergy Partner Status.
• We registered as a Silver Solution Provider with HPE, meaning we have the status of Silver Hybrid
Cloud specialist and Silver Aruba specialist.
• Platinum Solution Provider status for Dell Technologies, which combines Dell, EMC, VMware
and AirWatch, and a security portfolio that primarily comprises RSA and CarbonBlack.
• IBM Silver Business partner with a signed ESA (Embedded Solutions Agreement), which
facilitates the sale of QRadar and ESA Security licences in the area of security.
• Advanced Partner for the sale of technical solutions from Fortinet with the acquisition of the
Managed Security Services Partner (MSSP) status and Integrator status.
• Veeam 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 of licensed software.
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We are the leading provider of business multimedia communication services, which include the
most advanced telephone and video communication. We provide business users the integration of
business telephony with the Microsoft Teams environment or the Cisco Webex communicator.
We continue to attract new business users in the area of cyber security. We perform security checks
of information and industrial environments, and research cyber threats for specific organisations. We
provide Cyber Security and Resilience Centre services to large international companies and the
managers of the critical infrastructure, as well as essential services to small and medium-sized
enterprises. An integral part of the Cyber Security and Resilience Centre is the Telekom Slovenije
Computer Emergency Response Team (TSLO-CERT), which is an accredited member of the community
of Trusted Introducer response centres.
IPKO organised the first cyber security conference in Kosovo. The conference was attended by 350
participantsand participants discussed challenges and solutions in the area of cyber security. By
organising such a professional meeting, IPKO on the one hand consolidated its role in further developing
and strengthening digital resilience and raising awareness on cybersecurity assurance, while at the
same time laying the foundations for future cooperation in the sector.
INTER-OPERATOR SEGMENT
Domestic wholesale services
Revenues continue to grow on the domestic wholesale market. The number of users of the fibre optic
access network was up, while the number of users of the copper network was down. We also recorded
growth in the mobile operator access segment for national roaming and in virtual mobile networks. The
increased monetisation of application text messages had a major impact on revenue growth. We were
also successful in the public tender issued by the ARNES in connection with fibre optic connections for
the needs of educational institutions and institutes.
Telekom Slovenije’s network is used by all Slovenian operators who roam on our fixed broadband and
mobile network. We also allow operators to (co)use the passive telecommunications infrastructure,
which includes antenna towers, optical fibres, cable ducts and co-location premises.
International wholesale services
We were able to maintain stable revenues, despite challenges in international roaming and voice
services due to regulation and the drop in voice traffic. We achieved growth by beginning to market
international application text messages, and through the monetisation of the regional fibre network on
the Sofia–Milan and Sofia–Vienna connections.
The regional fibre optic network remains a key factor in our success. That network is based on
Telekom Slovenije’s backbone network and provides an alternative connection between the Balkans
and other important hubs in Western Europe. We achieved an important milestone in 2023 with the
successful launch of the most advanced service with a capacity of 400 GB based on DWDM technology,
which links the Sofia Equinix and Dunaj Interxion data centres.
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Regional fibre optic network of the Telekom Slovenije Group
AVTENTA
Avtenta is the leading partner for managing and implementing SAP solutions and paperless operations
on the Slovenian market. The company specialises in:
• the implementation of SAP ERP solutions;
• the implementation of paperless operations;
• the provision of expert support and assistance to more than 20,000 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 11.1 million in 2023, an increase of 15% relative to 2022.
GVO
GVO provides comprehensive solutions in the design, construction, management and maintenance of
telecommunication networks. To that end, it participates in the design, construction and maintenance of
major infrastructure projects, and in public-private partnership projects in which it builds open broadband
networks that are financed by the EU and Slovenia.
Sales revenue amounted to EUR 56.6 million in 2023, similar to the level recorded in 2022. Revenues
generated on the market were up by 53% due to the implementation of major projects for the market
and growth in sales revenue from the management of OBN. Revenues generated with Group companies
were down relative to 2022, primarily due to a decline in network construction on behalf of Telekom
Slovenije.
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SOLINE
Soline manages the Sečovlje Salina Nature Park, where it ensures the preservation of natural and
cultural heritage through the traditional production of salt. It also offers salt-based cosmetic and food
products, and manages the Lepa Vida Thalasso Spa.
Soline generated net sales revenue of EUR 5.2 million in 2023, an increase of 36% relative to 2022.
The company produced 1,039 tonnes of salt in 2023, a decrease of 57% relative to 2022. 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 7,425 guests visited the Lepa Vida Thalasso Spa during the 2023 season, a decrease of 2%
relative to the previous year. Sečovlje Salina Nature Park recorded 48,081 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 5,244 visitors. For more information, see section 8.2.2
Biodiversity.
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 ensures a stimulative work environment for the long-term employment of disabled persons
and other vulnerable groups.
The company generated net sales revenue of EUR 1.7 million in 2023, an increase of 14% relative to
2022.
TSMEDIA
24
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.
TSmedia expanded the network of digital screens that it manages in 2023.
TSmedia generated sales revenue of EUR 6.6 million in 2023, an increase of 7% relative to the previous
year.
IPKO
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 90.7 million in 2023, an increase of 9% relative to 2022.
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.
24
GRI TA2
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7.7.3 Brands and market communications
The Telekom Slovenije Group had 252 registered brands as at 31 December 2023. The full list of
registered brands is accessible at http://www2.uil-sipo.si/.
Key brands of Telekom Slovenije Group companies
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COMMUNICATION WITH USERS, EVENTS AND PROMOTIONS
We repositioned the Telekom Slovenije brand in 2023. The essence of the brand is ‘Trigger a wave
of changes for the better with Telekom Slovenije’. The positional slogan ‘Always for the Better’ derives
from the brand essence, and promises users continuous improvements, quality and the knowledge that
they never have to be satisfied with less because they can always choose the best.
‘Always for the Better’ is also a communication platform for residential and
business users, and served as the basis for more than 90 advertising
campaigns and projects in 2023. To that end, we tailored the offer and
messages to the highlighted content and selected target groups. We
presented the platform with Sebastijan Cavazza, a famous Slovenian stage,
film and TV actor, who became the recognised face of Telekom Slovenije.
With him, we painted a portrait of someone who does not accept
compromises in life because he only wants the best. In addition to TV
advertisements, we also presented a synthetic Sebastijan Cavazza in a
digital environment using artificial intelligence or ‘deepfake’ technology.
We organised more than 100 events and webinars
for users, as well as more than 50 promotional days in Telekom centres. In the
area of direct communications, we addressed users via more than 500 SMS
and direct mail campaigns, and prepared more than 100 different print
materials.
Regular monthly campaigns were organised
throughout the year to promote the Loyalty
Programme, Smart Phone and NEO Games. At
the beginning of the school year, in cooperation
with Mladinska knjiga, we launched the Učim se
(I Learn) mobile application, which is intended
exclusively for Telekom Slovenije’s users.
We also communicated with business users about the portfolio in the scope
of the ‘Always for the Better’ platform, with the recognised face of Telekom
Slovenije, Sebastijan Cavazza.
We responded to the business segment’s lack of knowledge about security risks with a cyber security
campaign, in the scope of which we presented the story of a business man who suffered a cyber attack.
We addressed the professional public using educational content via various communication channels.
We continued to organise our own webinars and published articles in the scope of various media
projects, such as the Slovenian Gazelle, Delo newspaper’s Entrepreneurial Stars and Mobility.
We built recognition of the best provider of comprehensive ICT solutions through the Totally Digital
competition, in which we awarded a selected entrepreneur with the digital transformation of their
business using Telekom Slovenije’s services.
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The Company also presented itself at all major professional conferences intended for different
professional publics and our users.
Communication with users via the web and social networks
We prepared more than 350 emails in 2023 to inform users about new and special offers. We also
placed a great deal of emphasis on communication regarding the safe use of services and concern for
the greenest possible future. We were active on all social networks. The picture below illustrates active
users on specific networks.
SATISFACTION OF TELEKOM SLOVENIJE’S USERS
25
The results of customer satisfaction measurements provide us feedback that serves as a guide in the
development and upgrading of services tailored to the needs of users. We monitor the satisfaction of
both residential and business users through regular surveys, while we regularly measure surveyed and
transactional NPS (recommendation). NPS is one of the key indicators for monitoring satisfaction, and
tells us whether or not users recommend Telekom Slovenije.
Residential users
The trend in the satisfaction of residential users turned positive in 2023. Overall satisfaction reached its
high level in recent years
26
.
Users were most satisfied with good packages (NEO, affordable offers, the Loyalty Programme,
increased data transfer quantities, Online Shop purchases, etc.), responsiveness, mobile phones (good
prices, simple purchase, etc.) and technical support (good resolution of problems, help with
malfunctions, etc.).
The following represent the key building blocks to satisfaction with the Telekom Slovenije brand:
• the quality of services,
• network speed (fixed and mobile),
• reliability of operator, and
• switching speed, video store, applications, interface, remote control and back-viewing amongst
TV users.
25
GRI 2-29
26
Valicon: Satisfaction of the users of telecommunication services, spring 2023 (31 March to 4 April 2023; sample
size: 1,024)
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Satisfaction index for residential users of Telekom Slovenije’s fixed and mobile services
Source: Valicon, Satisfaction of the users of telecommunication services; spring 2023.
NEO is a generator of positive experiences. It stands in a league of its own in terms of voice-controlled
searching. NEO wins over users primarily as an interface with simplified voice control, which is fully
integrated with the TV. It is simple to use and offers entertainment for the entire family (Valicon,
Monitoring of product brands – NEO; December 2023, n = 1,026).
A total of 87% of NEO users are satisfied, while 28% of those users are completely satisfied. The
proportion of users satisfied with the most commonly used user functions in TV services remains high
(and is growing over time): 87% of users are satisfied with the voice-controlled search for content and
88% of users are satisfied with content in one place. NEO’s key advantage over other providers is the
TV interface/communicator (menu appearance, where to view programmes, access to additional
services, etc.) (Valicon, Satisfaction of the users of telecommunication services, spring 2023, n = 1,024).
NEO achieves the highest scores amongst users in 16 out of 25 elements:
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Payment cards and cash remain the most frequently used forms of payment, while the share of e-wallet
users was up by 8 percentage points (e-wallets are now used by 73% of Slovenes between the ages of
15 and 75 years).
In the category of mobile payment systems and mobile wallets, the VALÚ brand increased
recognition (by 8 points) during the last year, while overall brand strength was unchanged.
(Valicon, Monitoring of product brands – VALÚ; December 2023, n = 1,026).
Amongst users, the following applies to VALÚ:
• it has a broad network of points of sale; and
• it is locally oriented.
Business users
The overall satisfaction of business users was high and at the level measured the previous year. The
proportion of fully satisfied users was down slightly but remains high. Telekom Slovenije remains the
most frequently recalled provider of ICT solutions (growth by 11 points relative to the previous autumn),
IT solutions and telecommunication services. It also maintains first place in terms of the overall selection
of IT solutions, security solutions and telecommunication services.
Satisfaction index of Telekom Slovenije’s business users
Source: Valicon, Satisfaction amongst business users, November 2023.
Satisfaction with Telekom Slovenije’s points of sale
We measure satisfaction with our points of sale 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. The email channels received best rating
last year, while other channels have room for improvement. Through sales standards and the continuous
education for Telekom Slovenije’s advisors, we are improving the excellence of the user experience in
all channels.
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Overall satisfaction rating for Telekom Slovenije’s points of sale, 2023
Net Promoter Score (NPS)
Globally, NPS is the most frequently used metric for monitoring the user experience, as it combines the
indicator of a user’s willingness to recommend a company/product/service, user satisfaction, perception
of user experience excellence and an expression of the user’s loyalty to a provider.
Telekom Slovenije takes measurements monthly for the most important touchpoints and twice a year for
the users of fixed and mobile services. Telekom Slovenije ranks in the top third compared with the NPS
of telecommunication operators on foreign markets.
Transactional NPS
Source: Telekom Slovenije, Transactional NPS, 2023.
NPS for user experience was above the target value at the majority of contact points during the first half
of 2023. Somewhat lower results during the second half of the year were primarily the result of problems
due to flooding and storms in northern and central Slovenia (our infrastructure was damaged, destroyed
or flooded). Despite all challenges, our users still highlighted the quality and speed of the network and
expressed satisfaction with the excellent and professional approach of advisors, who are always ready
to advise and help.
CUSTOMER SATISFACTION AT OTHER GROUP 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.
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Avtenta measures satisfaction every two years, but no measurement was carried out in 2023.
GVO measures satisfaction regularly using NPS at contact points during simple installation and indoor
installations at the users of the users of Telekom Slovenije’s services. NPS was above target values
throughout 2023.
TSinpo carries out unstructured interviews with users once a year. Qualitative assessments of
satisfaction were at the level recorded in previous years.
IPKO regularly monitors the user experience with the help of market research, social networks and
internal quantitative studies. Measurements of satisfaction and NPS are carried out for fixed and mobile
services. NPS (in the scope of brand strength research) was significantly higher in 2023 than the scores
of other operators on the mobile services market, while the score on the fixed services market was also
excellent.
IPKO also measures customer satisfaction using periodic questionnaires administered by an internal
team. Measurements are carried out with users at points of sale, and with those who were in contact
with the company via the call centre and field staff. The overall satisfaction score in the mobile segment
was 4.0 on a scale of 1 to 5 (in 2022: 3.6). The users of fixed services gave IPKO a score of 3.9 (in
2022: 3.5).
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8 SUSTAINABLE OPERATIONS OF THE TELEKOM SLOVENIJE
GROUP
Proud recipient of the Green Star certificate
We have been awarded the Green Star certificate with rating
of four stars, which places us in the ‘Green Leader’ category.
Green Leaders are high-tech companies with the principle of
sustainability strongly embedded in their business strategy
and business models. They actively contribute to climate
neutrality through ambitious climate and other environmental
goals. They measure and evaluate the situation in all three
ESG-related areas. They assess the impact of climate-related
risks on their business and on their supply and value chains.
They select the right measures on the basis of the goals they
have set. They already have experience in introducing
sustainable solutions, for which they take data-driven
decisions. Their employees and relevant partners are actively involved in the green transformation and
sustainable business governance. They take steps to communicate the progress achieved, both within
the company and to external stakeholders.
8.1 Management of sustainability at the Telekom Slovenije Group
8.1.1 Policy and guidelines governing sustainable operations
27
The future development of the Telekom Slovenije Group will rely on highly qualified employees, the most
advanced technologies, sustainable development and social responsibility. We aim to continue our long-
term successful business operations through a balanced consideration of the economic, environmental,
social and governance (ESG) aspects.
Guidelines for determining the priority areas of sustainability and operating within these areas are set
out in the Telekom Slovenije Group’s Sustainable Business Policy. Specific areas of sustainable
operations are defined in detail in sectoral rules, policies, codes and declarations.
Sustainable development and social responsibility are strategic decisions and commitments that we
have made, and for which the Management Board, directors and all employees are responsible, in line
with their competences and responsibilities. Sustainability is a process integrated into our business
operations and business model. It enables us to manage the ESG impacts on our business in a
responsible way. Through our core business – infrastructure, services and the latest technologies – we
are supporting the development of Slovenia and the wider region into a digital and a people- and
environment-friendly society.
The following roles and responsibilities for the effective governance of sustainable operations have been
set out in the Sustainable Business Policy:
• Management Board member responsible for sustainability: oversees the operations of the
Sustainable Operations Group and heads the Sustainable Operations Committee.
• Sustainable Operations Committee: oversees implementation of the Sustainable Business
Policy, related activities and the achievement of the planned objectives, and is responsible for
inserting sustainability strategies into the activities of Group companies. The committee is also
responsible for taking decisions regarding the sustainability-related elements of annual reports
and sustainability-related disclosures of the Group prior to publication. The committee
comprises all members of the Management Board, some B.1 level directors of the parent
company, the directors of subsidiaries and the head of sustainable operations.
• Sustainable Operations Group: operates as a permanent working group, and comprises
representatives of the areas of business of the parent company, representatives of subsidiaries
27
GRI 2-9, 2-12, 2-13, 2-14, 2-17, 2-22
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and experts in certain areas. It is responsible for planning and coordinating execution of the
action plan for achieving the sustainable business objectives.
• Head of sustainable operations: heads the Sustainable Operations Group, is responsible for
communication between that group, the Sustainable Operations Committee and the
Management Board, and organises and coordinates the preparation of key sustainability-related
documents and activities.
The key sustainability-related strategic objectives are set out as integral parts of the business
strategy:
• carbon neutrality (under Scope 1 and 2) by 2028;
• option of broadband internet access for 99% of households in Slovenia (fibre optics, 4G,
5G) by 2026;
• gender balance in leading positions.
To achieve these ambitions and targets, we are focusing most heavily on the following projects and
activities:
8.1.2 Impacts of the Telekom Slovenije Group’s operations
28
Social, economic and natural environments can have a major impact on our operations and our ability
to achieve our strategic goals. Our operations can also have an impact on our stakeholders. This ‘double
materiality’ is acknowledged every year with an analysis of stakeholders and an assessment of the
materiality of the impacts. 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 8.1.3 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.
28
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In September 2023, at a strategic workshop attended by 44 management staff and experts responsible
for key business functions, we again conducted a materiality process and determined the double
materiality of our sustainability-related topics, in line with the requirements of the European Sustainability
Reporting Standards (ESRS) adopted in 2023. At the workshop, which took place under the auspices
of the president of the Management Board and the member of the Management Board for sustainable
operations, we defined the set of sustainability-related topics and assessed them from the point of view
of impact materiality for the Telekom Slovenije Group.
We took into consideration the topics set out in the ESRS, the already established international GRI
sustainability reporting standards, the SASB sustainability accounting standards for the ICT sector, good
reporting practice in the ICT sector in Europe, and past (main) topics of the Telekom Slovenije Group.
We assessed the financial impact using internally determined quantitative thresholds in relation to:
• the likelihood of a topic/phenomenon occurring;
• the financial effect; and
• the duration of the effect.
In the course of the process we identified the 18 most important sustainability-related topics and two
specific topics with a financial impact on Soline, which operates outside the Group’s core business. We
verified the impact of the topics on people, society and the environment by means of a survey in which
518 stakeholders took part. The list of topics and their double materiality are presented in the table
below. The persons responsible for preparing the content of the annual report were also briefed on the
results of the process and assessment of material topics at a workshop attended by 66 employees from
Slovenian Group companies.
Materiality of the impacts of the Telekom Slovenije Group
Area of
impacts
Sustainability-
related topic
Impacts on
the
operations of
the Telekom
Slovenije
Group (risks
and
opportunities)*
Impact on
society, the
environment
and people*
Our objectives and
efforts
Contribution
to the
achievement
of SDG
Environmental impacts (E)
Climate change
adaptation and
mitigation
• Carbon neutrality under
Scope 1 and 2 by 2028.
• We will increase the
production of electricity
with the help of our own
solar power plants.
• Optimisation of the
property portfolio and the
energy renovation of
properties of long-term
interest.
• Optimisation and
decarbonisation of the
vehicle fleet.
• Development of
integrated smart city and
community solutions for
the effective monitoring
of environmental
indicators and
management of energy
sources.
Energy
Circular
economy and
waste
management
• To increase the
proportion of electronic
invoices issued by 15
percentage points.
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Social impacts (S)
Cyber security
and data
security
• The Cyber Security and
Resilience Centre is in
charge of the cyber
security of our systems,
networks, services and
users. It also provides
cyber security services
to other organisations,
companies and events.
Diversity,
inclusion of
employees and
equal
opportunities
• We strive for diversity,
equality, tolerance and
mutual respect in all
areas. The gender
balance at Telekom
Slovenije management
level is in line with the
gender balance
throughout the company
as a whole.
Support for
sport, culture,
science and
humanitarian
causes
• We earmark up to 0.3%
of revenues a year for
sponsorships and
donations.
Top-quality
network and
services
• By building new and
updating the existing
networks, and
introducing the latest
technologies, we provide
users with premium and
reliable services and
connections.
Access to the
information
society
• 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.
• It is our goal to provide
10% of the over-65s in
Slovenia with eCare and
telemedicine services by
2030.
• We provide universal
services in accordance
with the
Telecommunications
Act.
• We implement measures
for end-users from
vulnerable groups.
Healthy and
safe working
environment
• We manage the field of
occupational health and
safety in accordance
with the legislative
requirements. We use a
variety of measures to
provide information on
workplace and everyday
health to our employees.
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• Training and inclusion of
people with disabilities
and other vulnerable
groups mainly at TSinpo.
Talent
recruitment and
employee
development
• We provide employees
with excellent working
conditions and fair pay
for their work, and
encourage and support
professional growth and
continuing education.
Freedom of
expression and
privacy
• We devote considerable
attention to protecting
privacy, personal data
and trade secrets. We
provide employees and
contractual partners with
education and training in
this area on an annual
basis.
Child and
forced labour
• We do not allow forced
labour or child labour to
play any part in our
activities or those of our
suppliers. The Code of
Ethics, the Code of
Ethical Standards for
Suppliers, and the Rules
on Respect for Human
Rights all prohibit such
practices.
Online security
• Through a broad
spectrum of security
mechanisms, and
awareness on the part of
stakeholders, we ensure
that children are
protected in the digital
environment, and
prevent discrimination
and online harassment.
Governance impacts (G)
Responsible
supply chain
• We expect suppliers to
behave responsibly
towards their employees,
respect human rights
and regulations, and
enforce good
environmental and
energy management
practices.
• We will update the
questionnaire for
monitoring the ESG
practices of our strategic
suppliers in 2024.
Corporate
culture
• The Code of Ethics
commits us to acting
fairly and transparently
when doing business, to
avoiding conflicts of
interest, to preventing
acts of corruption, to
preventing money
laundering, and to
reporting dishonest
conduct. We provide
employees with
education and training
Corruption and
bribery
Protection of
whistleblowers
Political
cooperation
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
96
on this topic on an
annual basis.
• Our Rules on the
Management of Reports
and Protection of
Whistleblowers regulate
the procedure of
handling reports of
possible violations, and
guarantee that the
whistleblower’s identity
will be protected.
Topics specific to the Soline (subsidiary)
Area of
impacts
Sustainability-
related topic
Impact on
operations
(threats and
opportunities)*
Impact on
society, the
environment
and people*
Objective
Contribution
to the
achievement
of SDG
Environmental
impacts (E)
Biodiversity
• We preserve natural and
cultural heritage and
biodiversity in
accordance with the Plan
on the Management of
the Sečovlje Salina
Nature Park.
Water and
marine
resources
*The values represent the level of the impact as established by the materiality analysis:
very minor impact
minor impact
medium impact
major impact
very major impact
Environmental impacts (E)
Social impacts (S)
Governance impacts (G)
Specific topics for Soline
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
97
8.1.3 Inclusion and participation of stakeholders
The key stakeholders of the Telekom Slovenije Group were defined in the Governance Policy of Telekom Slovenije, d.d. and 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 groups, we create inclusive and long-term relationships
with those groups and thus 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
29
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,
plans, the development strategy,
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 and
skupscina@telekom.si;
– timely and clear publications of relevant 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 communicate regularly, proactively and
comprehensively with existing and potential shareholders
regarding the operations of the Telekom Slovenije Group.
– We organised a General Meeting of Shareholders.
Users
– Prompt fault clearance;
– security of personal data;
– high-quality network and the
development of services that
meet their needs and
expectations;
– the provision of security;
– best quality-to-price ratio;
– simple and prompt
communication with the Group.
– Personal contacts (regular): Telekom centres, 24/7
contact centre, communication via info@telekom.si and
tehnicna.pomoc@telekom.si and social networks;
– regular communication regarding the portfolio, services
and innovations via broad-reaching media and
communication via other channels (invoices, direct
mailing, catalogues, social networks, promotions,
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
– We present users new services, the portfolio and other
content relevant to them via numerous (physical and
digital) channels.
– We cover more than 97% of the population with the
LTE/4G network and more than 60% of the population
with the 5G network. We included an additional 77 small
cells for the needs of internal coverage.
– In 2023, we received 410,083 calls and 164,594 emails
from users, and made 12,354 video identification calls. We
are accessible by users via the online chat feature, the X
platform and Facebook: we recorded 14,232 such
contacts in 2023.
– The digital adviser Maks recorded 39,275 contacts in
29
GRI 2-29
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98
Stakeholders
What is most important to them?
How they are included and frequency of contact
Activities
principle;
– through annual user satisfaction research;
– regular contact through page view statistics; and
– daily measurement of Net Promoter Score (NPS) at
touchpoints.
2023, an increase of 2% relative to 2022.
– 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;
– the possibility of education, and
career and personal
development;
– respect for human rights;
– ethical operations;
– #connected and a positive
organisational culture; and
– 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 at the
Company and within the Group via established channels
(intranet, electronic screens, email, newsletters, the
system of meetings, special events, etc.);
– promotion of innovation in the scope of the Brihta
programme;
– cooperation with the Works Council and trade unions
(regular dialogue);
– the inclusion of employees via focus workshops in the
creation of HR tools and systems;
– activities relating to the protection of 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; and
– measurement of organisational vitality and culture (every
other year) and appraisal-development interviews with
employees (twice a year).
– A total of 100% of Group employees were included in
education and training in 2023.
– Telekom Slovenije awarded 10 company scholarships
during the 2023/2024 academic year, while the Company
has 23 active scholarship holders.
– Persons with a level VII education account for the highest
proportion of employees at the Telekom Slovenije Group
level (37.1%).
– The Works Council met at nine regular sessions and four
correspondence sessions in 2023.
– We hosted a study visit from the Slovenian Association of
Works Councils. We gave presentations on our operating
methods and on the various ways in which we seek to
look after our employees and involve them in different
activities, from co-creation of the organisational climate to
the contribution and realisation of ideas.
Suppliers and
other business
partners
– Clear supplier selection criteria
and fulfilment of business
agreements;
– responsiveness and relationship;
– long-term cooperation;
– respect for human rights, 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;
– 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 obligations;
– common marketing approach;
– common development of services;
– questionnaires for the purpose of risk assessment;
– meetings and presentations;
– annual satisfaction surveys;
– cooperation in the scope of tenders and procurement
procedures.
– The transparent and equal treatment of potential suppliers
is ensured through a standardised procurement
procedure.
– We pay considerable attention to resolving the challenges
brought about by high inflation and the energy crisis.
– 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 2,706 suppliers from
39 countries. A total of 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 579 million in 2023, including
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
99
Stakeholders
What is most important to them?
How they are included and frequency of contact
Activities
VAT. That amount also includes sponsorships and
donations.
Regulatory and
government
bodies
– Compliance with regulations and
the decisions of bodies;
– provision of high-quality access
to telecommunication services;
– limitation of environmental
impacts and a focus on
sustainable development.
– Professional and prompt response to regulators’
decisions;
– participation in the drafting of legislation, with expert
comments (as required);
– regular contact following inspections in connection with
imposed obligations by AKOS on regulated relevant
markets.
– We consistently adhere to applicable laws, regulatory
measures, regulations and best practices in all phases of
the business process and operations.
– We respond by drafting comments and observations on
the analyses, implementing regulations and strategic
documents published by the regulator.
Local and
wider
community
– Wide access to services and
responsible siting of the
infrastructure (fixed and mobile
network);
– social responsibility;
– 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;
– assessment of environmental impacts as an integral
aspect of all development activities; and
– regular contact with local communities when upgrading
and expanding the network.
– Sponsorships and donations were intended for
organisations and projects at the national and regional
levels. The Telekom Slovenije Group earmarked EUR 2.4
million for those purposes in 2023.
– We conducted 112 measurements of electromagnetic
radiation (EMR) in 2023 as a result of the expansion of the
4G and 5G network (2022: 141). A total of 74
measurements were carried out for 5G technology. Those
measurements were performed by an authorised
institution. The impact of EMR at base stations upgraded
with 4G and 5G technology has increased slightly, but
remains environmentally acceptable and within the limits
established by Slovenian law, which in some respects is
even stricter than European law.
Media
– Business ethics and compliance;
– media and ICT literacy;
– social responsibility;
– regular and up-to-date
information on the operations of
the Telekom Slovenije Group, the
development strategy, and the
development of new services and
solutions.
– Proactive and reactive management of media relations
(press conferences, press releases, the promotion of
media coverage, interviews, 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 around 250 questions from journalists in
2023. A total of 52 press releases were sent to journalists
during the year. We paid particular attention to
communications during the August floods, which also
caused damage to our network.
– We organised several press conferences, and maintained
formal and informal contacts with the press.
– Over 4,200 articles were published on Telekom Slovenije.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
100
8.1.4 About the annual report
30
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 financial 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 2023. Reporting on sustainable content relates to the
Telekom Slovenije Group, which comprises the parent company Telekom Slovenije, and the subsidiaries
GVO, TSmedia, Soline, Avtenta, TSinpo and IPKO. Information on sustainability does not cover the
operations of those subsidiaries abroad that do not have employees (and that therefore have no major
sustainability-related impacts). These companies are SIOL Zagreb, SiOL Sarajevo, SIOL Podgorica,
SIOL Skopje, SIOL Beograd, SIOL Prishtina and GVO Telekommunikation Germany. Financial reporting
relates to the parent company and its subsidiaries, as explained in Note 5 in the Financial Report. 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.
There were no significant changes to data from previous years or to reporting limitations, nor was there
a change in the data disclosure methodology. Any minor changes and the reasons for them are
explained in the notes.
8.1.5 Statement regarding the non-financial operations of the Telekom Slovenije
Group for 2023
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-1).
Information on sustainability, and therefore on our impacts and opportunities in the Environment, Social,
Governance (ESG) and economic areas, are presented in a comprehensive manner in the annual report
in accordance with the international Global Reporting Initiative (GRI) standards. This year, for the first
time (albeit in a limited scope), we will report in accordance with the requirements of Directive (EU)
2022/2464 as regards corporate sustainability reporting (CSRD) and the European Sustainability
Reporting Standards (C(2023)5303), which enter into force in 2024. 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). 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 contributions 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.
We report on sustainability mainly in the 8 Sustainable operations of the Telekom Slovenije Group
section, as envisaged by the CSRD, although some information is included in other sections. The
content of this information can be seen from the reference links to the GRI indicators and the overview
GRI table. The inclusion of information on non-financial operations and the diversity of management and
supervisory bodies is in line with the requirements of the Companies Act (ZGD-1L). When monitoring
operations, we also take the Alternative Performance Measures (APM) into consideration, in accordance
with the ESMA Guidelines.
We voluntarily submitted our reporting on sustainability in accordance with GRI standards to external
assurance between 2009 and 2021. We opted not to do so in 2022 and 2023 because external
assurance will become an obligation under the CSRD and its compliance will be reviewed by the
statutory auditor.
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)
30
GRI 2-2, 2-3, 2-4, 2-5
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
101
2020/852 are published in point 8.4.5 Disclosures of indicators for economic activities that are included
in the 2023 EU Taxonomy.
8.2 Environmental aspects
The Telekom Slovenije Group operates mainly in the telecoms sector, where energy consumption has
the biggest impact on the natural environment. We therefore pay greatest attention when controlling
environmental impacts to energy efficiency and cleaner energy sources. As the manager of the Sečovlje
Salina Nature Park, Soline has a major impact on coastal wetlands and biodiversity. Its activities and
impacts are therefore reported in more detail in section 8.2.2 Biodiversity at Soline.
We control and manage the environmental impacts of our business processes through the established
environmental management system certified to the ISO 14001 standard. We manage the field of energy
through the efficient energy management system (EEMS), which has been certified to the requirements
of the ISO 50001 standard. We have adopted an environmental statement and statement of the energy
efficiency of Telekom Slovenije, d.d. We monitor progress in these areas by means of measurable
indicators.
We invest carefully in efficient energy use measures and programmes and various initiatives to reduce
carbon footprint, such as our own solar power plants and the purchase of electricity from low-carbon
sources. We are incorporating the very latest, more energy-efficient active equipment into our network,
and introducing the principles of the circular economy and sustainable mobility.
Our contributions to the green transition of the economy and of society as a whole include ICT services
and solutions such as smart networks, smart buildings, smart logistics and industrial processes that can
play an important role in considerably reducing global greenhouse gas emissions, thereby mitigating
and preventing the effects of climate change.
We raise awareness about the importance of this area amongst employees through training, while we
also encourage users to manage energy responsibly.
We involve ourselves in professional initiatives aimed at developing and communicating science-based
positions on the impacts of the industry. We ensure sustainable operations and encourage the
cooperation of all stakeholders. We monitor initiatives and respond to them promptly.
Key policies:
• carbon neutrality (under Scope 1 and 2) by 2028;
• 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
• systematically preventing and reducing impacts on the social and natural environments.
8.2.1 Impacts on the natural ecosystem
At the Telekom Slovenije Group, electricity consumption is responsible for the bulk of the carbon footprint
under Scope 1 and 2. Under the strategic business plan, we will systematically reduce the impacts, with
the aim of eliminating the impacts of Scope 1 and 2 by 2028.
ENERGY REPORT
Electricity is responsible for the biggest single share of our carbon footprint, followed by
heating and the vehicle fleet. In accordance with the requirements and measures of the
efficient energy use system in place (ISO 50001), in the last ten years we have managed
to reduce our overall energy consumption by getting rid of older, energy-inefficient
technologies (e.g. 3G) and updating technologies. We have been successfully reducing
our overall consumption of energy for more than ten years. For the purpose of certifying the system, we
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
102
meet conditions for the performance of energy audits by our own experts. This alone enables us to save
at least EUR 40,000 a year. We are the leading company in Slovenia when it comes to internal energy
audits, with more than 210 completed. We performed internal energy audits again in 2023 for all
buildings for which the validity of the previous audit expired or where major interventions were planned.
In the new strategic period, the next steps will mainly be oriented towards securing
cleaner, low-carbon electricity sources and constructing our own solar power plants. We
will also focus on optimising the property portfolio and carrying out the energy renovation
of properties of long-term interest. The strategy for the vehicle fleet and its potential
electrification are part of the plan to reduce the carbon footprint. It includes the provision
of low-carbon electricity charging points by the Group itself and in partnership with others.
Energy costs and consumption at Telekom Slovenije Group and Telekom Slovenije
31
Telekom Slovenije Group
Telekom Slovenije
2023
2022
Index
2023
2022
Index
23/22
23/22
Electricity consumption
(in GWh)
87.1
90.0
97
68.6
71.7
96
Electricity costs
(in EUR thousand)
22,828
14,028
163
20,727
12,327
168
Fuel consumption for vehicle fleet (in litres)
1,390,733
1,403,024
99
733,151
782,396
94
Cost of fuel for vehicle fleet (in EUR
thousand)
1,935
1,975
98
983
1,117
88
Cost of fuel for heating
(in EUR thousand)
935
834
112
900
802
112
Production of own electricity from solar power
plants
(in MWh)
496
263
189
371
239
155
Source: SAP; energy management system.
Electricity
32
Between 2022 and 2023, we reduced consumption of electricity, our most important energy source, by
3% within the Group as a whole and by 4% at Telekom Slovenije. Total costs were up by 20% at the
Group level and by 68% at Telekom Slovenije due to higher electricity prices. Other users, i.e. the
lessees of our real estate, account for a fifth of electricity consumption. We built an additional solar
electricity power plant in Slovenia so that the electricity generated from our own solar plants accounted
for around half of one per cent of total electricity consumption in 2023 (approx. 371 kilowatt hours). A
total of around 120,000 kilowatt hours of electricity was generated by the solar power plants in operation
at IPKO in Kosovo.
At Telekom Slovenije in 2023, co-financing under the public call for the co-financing of the construction
of new small installations for the generation of electricity using solar power (code: JR SE OVE 2021),
which constitutes de minimis aid, was EUR 36,000.
Telekom Slovenije’s GemaLogic 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
Reducing overall consumption of electricity is our overriding energy objective. The energy management
system is integrated into regular work processes. To that end, we have also set other environmental
objectives (e.g. to improve the energy efficiency of the vehicle fleet, reduce noise and emissions into
the atmosphere by modernising technological devices, etc.).
31
GRI 302-1, SASB: TC-TL-130a.1
32
GRI 302-4
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
103
We met strategic and annual objectives relating to efficient energy consumption again in 2023. 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 were higher in 2023 on account of significantly higher energy prices.
Consumption will increase until 2026 on account of the extension of the 5G network. We intend to
increase the number of own solar power plants considerably, as well as the quantity of energy produced
by that source. We have also reduced consumption in the mobile sector on account of shutting down
older technologies (e.g. use of 3G discontinued). In per-unit terms, 4G and 5G use less energy; however,
they require more units (base stations) for the same coverage, which means electricity consumption will
increase in the next two years.
Energy intensity at Telekom Slovenije (in MWh/EUR million)
33
Energy intensity is defined as the quotient between kWh consumed and net sales revenue.
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.
In Kosovo, IPKO have taken a number of steps to reduce electricity consumption, including the
installation of more energy-efficient air-conditioning equipment, the energy renovation of five branch
offices with the replacement of conventional bulbs with LED bulbs, and the construction of additional
solar power plants. At the end of 2023, IPKO had 175 kWp of solar collectors installed throughout the
country.
Assessment of carbon footprint
34
In 2023 we stepped up our activities connected with the production of a decarbonisation strategy for
the 2024–2030 period. For year-on-year comparisons and the tracking and achievement of the
objectives, 2021 has been determined as the baseline year. The Telekom Slovenije Group’s Strategic
Business Plan for 2024–2028, which was adopted at the end of 2023, sets the ambitious target of
carbon neutrality under Scope 1 and 2 by 2028. In that period, we will focus heavily on securing
cleaner electricity and building our own solar power plants. The positive impact of these measures on
reducing the carbon footprint will become evident over the next few years.
We already increased the share of cleaner energy from low carbon sources in 2023, and made
investments in our own solar power plants. Independently of this, we continued activities to further
33
GRI 302-3
34
GRI 3-3, 305-1, 305-2, 305-3
126
125
114
2021 2022 2023
100
110
120
130
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
104
increase our energy efficiency, mainly by upgrading the network and actively managing our property
and vehicle fleet. These activities will continue in 2024. We raised employees’ awareness of the
importance of caring for the environment, saving and using energy efficiently, and behaving
sustainably.
The carbon footprint was calculated in accordance with the methodology set out in the international
Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard. We captured 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 83% of Scope 1 and 2 emissions.
Illustration of Telekom Slovenije’s carbon footprint by individual scope category
GHG emissions in tonnes of CO
2eq
Index
Emission category
2023
2022
23/22
Scope 1 (direct emissions)
2,443
2,618
93
– S1-1: Stationary emissions
(heating and generators)
282
359
79
– S1-2: Mobile emissions (work
vehicles)
1,865
1,996
93
– S1-4: Fugitive emissions from
HVAC and refrigeration systems
(cooling technology)
296
263
113
Total Scope 2 (indirect emissions)
21,764
24,124
90
– S2-1: Indirect emissions from
electricity consumption (location-
based method)
619
3,209
20
– S2-2: Indirect emissions from
electricity consumption (market-
based method)
19,489
18,860
103
– S2-3: Indirect emissions from
heat consumption (location-based
method)
1,105
537
206
– S2-4: Indirect emissions from
heat consumption (market-based
method)
551
1,518
36
Total Scope 1 and 2
24,207
26,742
91
Carbon footprint (Scope 1 and 2)
in CO
2eq
per employee
11.62
12.72
91
Carbon footprint (Scope 1 and 2)
in CO
2eq
per sales revenue
0.04
0.05
80
Under the GHG Protocol methodology, we reassessed Telekom Slovenije’s carbon footprint for 2021
and 2022 by using the energy supplier emission factors, which were published subsequent to those
years and had not been collected at the time the 2022 annual report was published. The market-based
method takes into account the last known emission factors obtained from energy suppliers over a two-
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
105
year period. As the market-based method
35
is used for 98% of electricity consumed, the impact of
emission factors is crucial. By taking the new emission factors into account, Telekom Slovenije’s actual
carbon footprint (Scope 1 and 2) actually fell by half relative to the baseline year of 2021.
Given the emission control factors set (carbon footprint (Scope 1+2) in t CO
2eq
per employee and t CO
2eq
per sale revenue), we can confirm a positive trend in the reduction of both indicators in comparison with
the baseline year of 2021.
36
We have up to now 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, overnight stays, 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).
Segments included in Scope 3 categories
GHG emissions in tonnes of
CO
2eq
Index
Emission category
Activity
2023
2022
23/22
S3-1: Purchased
goods and services
Consumption of drinking
water, office paper, printed
materials, and other
packaging and paper
182
225
81
S3-3: Energy
consumption not
included in Scope 1
and 2
Own electricity consumption
1,016
1,077
94
S3-5: Waste
management
Waste forwarded to collection
centres, waste water
124
143
87
S3-6: Business travel
Business travel (car and air
transport)
45
26
173
S3-7: Employee
commuting
Employee commuting (cars)
1,751
1,662
105
S3-8: Assets under
lease
Electric vehicles under lease
and work from home
174
250
70
S3-13: Leased
assets
Heating, electricity and
drinking water in leased
premises, and the
consumption of electricity by
CPE equipment at users
21,036
20,627
102
Total Scope 3
(other indirect
emissions)
24,328
24,010
101
35
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 2022, and were used in the calculation for 2023. 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.
36
The total value according to the market- and location-based methods is included in the total value of Scope 1 and
2 emissions, the carbon footprint indicator per employee and the carbon footprint indicator per sales revenue.
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 2023
106
In 2023 we expanded the organisational boundaries of the monitoring of carbon footprint at the other
companies in the Telekom Slovenije Group. An assessment of carbon footprint was made for Scope 1
and 2 for the main sources of emissions. The location-based method was used for electricity consumed.
Telekom Slovenije Group’s carbon footprint under Scope 1 and 2
GHG emissions in tonnes of CO
2eq
Index
Emission category
2023
2022
23/22
Scope 1 (direct emissions)
4,549
4,561
100
– S1-1: Stationary emissions (heating)
594
619
96
– S1-2: Mobile emissions (work vehicles)
3,574
3,646
98
– S1-4: Fugitive emissions from HVAC and
refrigeration systems (cooling technology)
381
295
129
Total Scope 2 (indirect emissions)
44,712
47,188
95
– S2-1: Indirect emissions from electricity
consumption (location-based method)
23,415
26,114
90
– S2-2: Indirect emissions from electricity
consumption (market-based method)
19,641
19,019
103
– S2-3: Indirect emissions from heat
consumption (location-based method)
1,105
537
206
– S2-4: Indirect emissions from heat
consumption (market-based method)
551
1,518
36
Total Scope 1 and 2
49,261
51,749
95
Carbon footprint (Scope 1 and 2) in CO
2eq
per employee
15.14
15.86
95
Carbon footprint (Scope 1 and 2) in CO
2eq
per sales revenue
0.07
0.08
88
Vehicle fleet
37
We are also pursuing a sustainable development strategy in the management of the vehicle fleet by
including more electric vehicles in the fleet and providing the necessary support infrastructure. We have
installed charging points at all of our larger locations. We encourage employees to make use of the
electric vehicle sharing services provided by external suppliers.
The Telekom Slovenije Group had a total of 1,010 vehicles in 2023, including 24 electric vehicles (one
of which is a train with two wagons for transporting 50 passengers around the Sečovlje Salina Nature
Park) and ten hybrid vehicles. Telekom Slovenije had a total of 599 vehicles, including eight electric and
ten hybrid. The Group reduced fuel consumption by 1.5% relative to 2022, while Telekom Slovenije
reduced consumption by 6.3%. The table below illustrates the number of vehicles with internal
combustion engines (diesel and petrol) and total fuel consumption.
37
GRI 302-1
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
107
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
2023
2022
Index
2023
/2022
2023
2022
Index
2023
/2022
Number of vehicles as at 31
December
986
1,013
97
591
620
95
Fuel consumption in litres
(diesel)
1,058,550
1,078,621
98
488,164
526,606
93
Fuel consumption in litres
(petrol)
332,183
332,915
100
244,987
255,790
96
Real estate management
In 2023 we adopted a strategy at the Telekom Slovenije Group for the management of our own and
leased property. The strategy is designed to increase the value of the property portfolio and its efficiency
in terms of cost and space, create a pleasant and productive working environment, and reduce the
carbon footprint.
Water management
Sanitary water 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. Telekom Slovenije used a total of 14,729 m
3
of sanitary water at its key locations in 2023.
Electromagnetic radiation (EMR)
38
When the mobile network (4G and 5G) is expanded or upgraded, we commission EMR measurements
from certified institutions in Slovenia. A total of 112 EMR measurements were performed for Telekom
Slovenije in 2023; this number included 74 measurements for the 5G network. While radiation increased
slightly at the base stations that we have upgraded, the results showed that the measured values in
areas accessible to people were, even in the worst case, more than four times lower than the strict limit
values applied in Slovenia. They are also ten 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.
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. In 2023 we recorded
three requests from the environmental and spatial planning inspectorate to provide documentation on
EMR for the LJ – Brdo, LJ – Trnovo and LJ – Zadobrova ELES base stations. All documentation was
delivered by the prescribed deadlines, with no comments forthcoming from the inspectorate. We also
held discussions with/gave presentations on EMR to local communities on six occasions.
In cooperation with Forum EMS, people can read more about radiation and other environmental impacts
on the https://forum-ems.si/ website. In the scope of the e-card EMS project, Forum EMS developed a
mobile application that allows the general public to access data regarding harmful impacts on the
environment due to high-frequency EMR and the effect of exposure due to the use of mobile phones:
https://inis.si/karta/. IPKO also performs EMR measurements when new base stations are installed.
These measurements were not required in 2023.
Circular economy and waste management
39
We are aware of the importance of environmental impact, which is why we handle all products and
materials that enter our business processes in a responsible manner. We are introducing circular
economy principles to an ever-greater extent with the aim of closing the 360° sustainability loop.
We therefore try to process used equipment into a reusable product before it becomes waste. For
several years now, TSinpo has carefully checked and cleaned up CPE equipment (modems, routers,
TV interfaces) returned by our users, and readied them for reuse. We thus extend the useful life of
38
GRI PA8, GRI 2-23, 2-24, 2-27
39
GRI 3-3, 306-1, 306-2, 306-3
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
108
equipment, increase cost-effectiveness and reduce the volume of electronic waste. Telekom Slovenije
has a certified environmental management system (ISO 14001), which is an important tool for ensuring
a responsible approach to the environment. When we carry out excavation work for the construction of
the cable network, the excavated soil is mainly used for backfilling the cable route. Any surplus earth
that remains is classed as construction waste.
All types of waste produced by our companies in Slovenia are collected in areas specifically set aside
for the purpose (eco-islands), then sent for onward processing to authorised and certified partners.
These partners ensure that, in compliance with the relevant legislation, the equipment is broken down
into its raw materials as far as possible (the circular economy principle), while those parts that cannot
be reused are destroyed in such a way as to have the least possible impact on the environment. As
Kosovo does not yet have a regulated system of separate waste collection, all the waste produced is
collected by authorised local utility companies.
Telekom Slovenije forwarded 3,097 tonnes of waste in 2023, a decrease of 20% relative to the previous
year (due to significantly less construction waste, which accounts for 85% 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 fill trenches. All waste electrical and electronic equipment is
dismantled, which yields reusable plastic (18%) and metal (78%). Only around 3% of this 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 Telekom centres.
Quantities of separately collected waste
Type of waste (in tonnes)*
Telekom Slovenije Group
Telekom Slovenije
2023
2022
Index
23/22
2023
2022
Index
23/22
Waste electrical and electronic
equipment, and waste
batteries and metals
227
278
82
227
278
82
Waste packaging
187
98
191
139
96
145
Mixed municipal waste
707
744
95
94
141
67
Construction waste
2,637
3,341
79
2,637
3,335
79
TOTAL
4,103
6,710
61
3,097
3,850
80
* 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.
Paperless operations
40
Activities to ensure that operations are as paperless as possible are among our key
areas of focus. We use a qualified digital certificate for the signing of subscriber-related
documents, with users signing documents using a digital tablet. Our field technicians
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. Telekom Slovenije
also digitalises incoming documents, so that more than 75% of those documents are already digitalised.
A total of 57.4% of invoices were received in electronic form in 2023, an increase relative to 2022.
40
GRI TA2, SDG 12, 306-2
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
109
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 2023, which was the same quantity as in 2022.
In addition to office materials, we also used paper for invoice printing purposes, the printing of catalogues
and other printed material, and for cardboard packaging and paper bags. We therefore used a total of
128.8 tonnes of paper, which was a fall of 26% on the 2022 figure.
We collected waste paper and used it to make planners for employees, and for business events and
education/training.
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.
We increased the percentage of invoices issued in electronic form by four percentage points in one year.
Climate change adaptation and mitigation
41
We are seeing damage to network infrastructure from the extreme weather events
associated with climate change. These risks are prevented in investments in new
networks through underground construction.
In August 2023 a large part of Slovenia was gripped by catastrophic floods that flooded,
damaged or cut our cable infrastructure (backbone and access sections).
We provided fixed-network subscribers with a 100% discount on their monthly subscription, or wrote off
their contractual obligations. We also made donations to post-flood clean-up operations, more details of
which can be found in section 8.3.1 Support to local communities.
Climate change is an opportunity for revenue, mainly from the development and use of ICT solutions for
climate change observation or mitigation. Our portfolio of services includes smart infrastructure (remote
meter reading, smart car parks, energy management of buildings and smart cities). For more
information, see section 7.6 Development of the network, technologies and services.
8.2.2 Biodiversity at the Sečovlje saltpans
Sečovlje Salina Nature Park (SSNP) and the traditional harvesting of salt from salt fields are a special
part of the cultural heritage of Mediterranean Slovenia, and help to preserve the biodiversity of the area.
The Soline company has managed the SSNP, which is a national protected area, since 2003, when it
signed a concession contract with the state. In 2023 an agreement was signed with the Ministry of
Natural Resources and Spatial Planning on the management of the SSNP for the next 10-year period,
i.e. until 2033.
Key administrative objectives were set out in the Sečovlje Salina Nature Park management plan for the
period 2011 to 2021, which was adopted by the Slovenian government. The management plan for 2023–
2033 was still undergoing interdepartmental coordination and approval at the end of the year.
The most important objective of managing the SSNP is 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 Natural Resources 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.
42
41
GRI 201-2
42
GRI 3-3
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
110
The management plan requires Soline to carry out the following activities:
- to maintain the saltpan ecosystem;
- to provide a public nature conservation service;
- to preserve traditional salt production processes and centuries-old technological processes; and
- to continue salt production, which is an integral part of the historical development of the region.
The SSNP covers 700 hectares. The 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, salt workers’
houses and the surrounding area, paths, bridges, pumps, etc. The Saltworks Museum in Fontanigge
presents how salt was produced in medieval times.
43
In the scope of the climate fund, we continued the renovation of 3,300 meters of embankments in the
Lera salt production area in 2023, and installed new sluice gates for controlling seawater in the
Fontanigge area. We have invested around EUR 355,000 in measures to manage the impacts of climate
change on the ecosystems of the Sečovlje and Strunjan saltpans and other wetlands. We are therefore
helping to realise the EU’s climate change mitigation and adaptation objectives. We also completed the
introduction of traffic-calming measures in the Lera and Fontanigge areas, and laid out the entrance to
the first Fontanigge protected area.
44
We completed the renovation of four salt workers’ houses in the
Fontanigge area, which were damaged by floods in 2019 and 2020.
Our goal is to become the first net-zero protected area in Slovenia. 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 2023 we continued to replace
diesel vehicles with electric, and procured an additional electric vehicle for taking employees, renters of
berths, the elderly and disabled persons to the SSNP.
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 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 2023.
45
There are no endangered animal or plant species from the IUCN’s global list of endangered species
present in the SSNP.
46
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.
43
GRI 304-1
44
GRI 304-3
45
GRI 304-2
46
GRI 304-4
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
111
The saltpans are best known for birds, as they are a large body of water that birds use for food, overnight
shelter or wintering during their migration. Certain species nest in the saltpans.
We were visited by greater flamingoes (Phoenicopterus roseus) in 2023, on two occasions in larger numbers. The
largest flock, 210 birds in total, arrived on 20 November.
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 48,081 visitors in 2023, with 42,837 visiting
the Lera area. The Fontanigge area recorded 5,244 visitors.
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 comply with
environmental laws and regulations.
47
Data regarding electricity and fuel consumption in the table below 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. We reduced our fuel and electricity consumption relative to the
previous year. 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 for 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 2,100 litres of sea water in 2023 for the functioning of the Lepa Vida Thalasso Spa, in particular
for the pool and salt-water showers, in which 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.
48
Waste is consistently separated and disposed of by the competent municipal department.
47
GRI 2-27
48
GRI 3-3, 303-1, 303-2
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
112
Use of natural resources at Soline
49
2023
2022
Index
23/22
Consumption of natural gas (in m
3
)
3,669
2,992
123
Consumption of electricity (in MWh)
396
418
95
Consumption of fuel (in litres)
29,849
31,494
95
Consumption of sanitary water (in m
3
)
2,805
2,279
123
Consumption of sea water (in m
3
)
169,000
173,300
98
- salt production
166,900
171,100
98
- Thalasso Spa Lepa Vida
2,100
2,200
95
49
GRI 303-3, 303-5
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
113
8.3 Social aspects
8.3.1 Support to local communities
The Telekom Slovenije Group takes its responsibilities towards vulnerable
groups and the local communities in which it operates very seriously. We
provide assistance to humanitarian organisations in the form of expertise and
financial and other resources, and support sporting, cultural and educational
activities. We adopted a new sponsorship and donations strategy in 2023 –
one that, among other things, highlights the connections between applicants and our values, integrity
and drive for sustainability. We have set up a structured and targeted sponsorship and donations
portfolio with defined key initiatives, and introduced a standard electronic form for collecting and
processing applicants’ details in a more comprehensive manner. Applications are processed by an
internal committee in accordance with the Rules on the Treatment and Approval of Sponsorships
and Donations.
Donation activities
Last year was marked by the assistance we provided to those most affected by the floods, to whom we
gave EUR 600,000: EUR 350,000 in the form of services and EUR 250,000 in the form of financial
donations.
We donated EUR 100,000 to 20 volunteer firefighting brigades with whom teams from Telekom Slovenije
and GVO worked most closely in affected areas in extremely difficult conditions. A donation of EUR
100,000 was given to Radio 1’s ‘Preprosto blizu’ foundation, which ensured that the funds went to those
who most needed them, and EUR 50,000 to the Moste–Polje chapter of the Slovenian Friends of Youth
Association for the ‘Veriga dobrih ljudi’ (Chain of Good People) and ‘Botrstvo’ (Sponsorship) projects,
under which Telekom Slovenije sponsors 20 children from socially disadvantaged backgrounds.
The floods also damaged the homes of 39 Telekom Slovenije Group employees. All of them received
solidarity assistance, with employees donating almost EUR 20,000 more via the Heart Foundation,
which is a Telekom Slovenije humanitarian organisation.
Cancer awareness-raising projects
To mark international Childhood Cancer Awareness Month, we placed golden bows at the entrance to
Telekom Slovenije office buildings, with people being invited to wear them in support of these young
heroes. In collaboration with the ‘Junaki 3. nadstropja’ (Heroes of the Third Floor) association, we
prepared articles for in-house education and training.
To mark Breast Cancer Awareness Month in October, we partnered with Samsung for the 16th
consecutive year and gave EUR 10,000 to the Slovenian chapter of the Europa Donna association. 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. To Facebook users and employees,
we stressed the importance of prevention and of not delaying a visit to the doctor.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
114
Sponsorship activities
We carried out several sponsorship activities to strengthen awareness of our support for widening
access to and involvement in sport for broader groups. Along with our sponsorship of the Tour of
Slovenia, we organised the NEO Tour event for recreational cyclists. This enabled them to use the Strava
app to compare their results with those of the top cyclists appearing in the Tour. One of the Tour of
Slovenia stages attracted 1,589 recreational cyclists. We organised a competition that gave 20 families
who are part of the Loyalty Programme the exclusive chance to watch the climbing world cup event in
Koper in September.
Major sponsorships and donations in 2023
50
The Telekom Slovenije Group earmarked a total of EUR 2.4 million or 0.3% of its sales revenues for
sponsorships and donations in 2023.
Humanitarian projects
Our activities in 2023 included support to the following organisations:
• the Slovenian Red Cross for the continued renovation, arrangement of living quarters and
landscaping at the Debeli Rtič Youth Spa and Resort;
• the Friends of Youth Association for the TOM telephone intended for children and adolescents
in distress;
• the Association of Counsellors, to help those in distress via the Samarijan telephone line;
• numerous voluntary firefighting associations, to help them purchase new equipment to replace
the equipment destroyed or damaged during the clean-up operations that followed the floods
that affected many parts of the country;
• the Radio 1 ‘Preprosto blizu’ foundation, for help for families and individuals most affected by
the floods;
• the Moste–Polje chapter of the Slovenian Friends of Youth Association, for the ‘Chain of Good
People’ and ‘Sponsorship’ projects;
• the Slovenian Federation of Pensioners’ Associations (ZDUS), for the co-financing of the
‘Starejši za starejše’ (Older People for Older People’) social security project;
• the Fushë Kosova Family Protection Centre in Kosovo, with the donation of a modern ultrasound
device.
We also provided help to individuals who required it to fund treatment, purchase a wheelchair or an
adapted vehicle, etc.
50
GRI 201-1
sport
humanitarian activities
education/science
culture
other
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
115
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 School of Economics and Business at the University of Ljubljana;
• the Eco-Quiz project for primary schools;
• the Post and Telecommunications Museum, which Telekom Slovenije co-founded; and
• the technology festival organised by the Association for Information and Communication
Technology in Kosovo.
Culture
In the field of culture, we support a range of different types of events:
• Ljubljana Festival;
• the Ljubljana International Film Festival (LIFFe);
• Ljubljana Puppet Theatre;
• the Ptuj Carnival; and
• the Anibar animation festival in Peja, Kosovo.
Sport
Telekom Slovenije is one of the biggest supporters of Slovenian athletes and Slovenian sport. We
supported various associations, clubs and events in 2023:
• sports associations: The Ski Association of Slovenia, the Slovenian Olympic Committee, the
Slovenian Football Association, 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;
• sports 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
• sports events: the Ski Flying World Championship in Planica, the women’s World Cup ski
jumping competition in Ljubno, the Franja Marathon, the Tour of Slovenia cycling race, the Red
Bull Goni Pony event, the sports climbing world cup in Koper, the Poli marathon, the 41
st
Three
Hearts Marathon, an international swim meet in Radovljica, the Triglav Run and many others.
IPKO sponsors the Trepca basketball club from Mitrovica and Prishtina football club.
8.3.2 Users
In addition to providing an excellent user experience, we are also committed to maintaining a responsible
and transparent relationship with the users of our services. In this we are guided by our values, as
expressed by the worlds ‘Inspiring’, ‘Caring’, ‘Safe’, ‘Simple’ and ‘Disruptive’. We are constantly adjusting
to the needs and wishes of specific user segments so that we are able to offer technologically advanced
services, products and content. 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
51
The Telekom Slovenije Group complies with high standards of marketing ethics in 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
51
GRI 2-27, 3-3, 417-3
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
116
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 (SOC), and follow the
recommendations of AKOS in the area of customer care. We are signatories to the Commitment to
Introduce Sustainable Standards in the Advertising Industry, as we are keenly aware of the
responsibilities and roles we have in advertising.
In market communication, we self-regulate our advertising, meaning that we hold to the relevant
principles and rules when creating advertising material. Compliance with the Slovenian Advertising Code
is assessed by the Advertising Tribunal of the Slovenian Advertising Chamber.
Two complaints were placed before the tribunal in relation to Telekom Slovenije advertising in 2023, both
by the competitor company A1 Slovenija. One of the complaints related to the message/slogan ‘Join us
in a safe and the fastest network’. The Advertising Tribunal adjudged that the message did not comply
with all the provisions of the Slovenian Advertising Code. We responded immediately to the judgment
and brought the advertising in question into compliance with the provisions of the code. The tribunal
therefore opted not to impose a penalty on Telekom Slovenije. The second complaint involved the
message/slogan ‘Yes, unlimited. With the new NAJ packages’. In this case the Advertising Tribunal ruled
that the complaint was without foundation.
We also received a request from the Market Inspectorate regarding the inspection proceedings
conducted on account of a possible infringement of the Consumer Protection Act – specifically, whether
Telekom Slovenije had engaged in an unfair commercial practice when advertising the ‘Balkan’ package
as an additional option. The complaint had been made by a consumer, who stated that he had not been
properly notified (or notified at all) of the restrictions of the package – specifically, that he had not been
made aware that he was ‘connected to the wrong operator’ when roaming, which led him to incur
additional charges for which he was billed. The inspectorate examined the advertising for the ‘Balkan’
package and established that it was clear from the advertisement and the sales offer that the quantity
of service units and data transfer applied to certain selected operators abroad. Customers engage the
‘Balkan’ package via text message, and are themselves responsible for setting or choosing the right
network. Since any automatic changes of network are outside the operator’s control, the inspectorate
ruled that no irregularity had occurred.
TSmedia and IPKO also comply with general professional advertising codes.
There were no breaches in the area of market communication at other Telekom Slovenije Group
companies.
Communication with users via telephone, the web and social networks
In 2023 we responded to 410,083 calls, 164,594 emails and 12,354 calls via video identification. We are
also available to users every day on social media and via chat (14,232 instances of contact in 2023),
and made 100,980 outgoing calls to users.
In 2023 we upgraded our direct communication with users to capture key points in the customer lifecycle
by comprehensively updating our automated communications. We therefore conducted 15% more
automated campaigns and contacted 62% more users through such campaigns than the year before.
We conducted 28% more SMS campaigns. These campaigns were targeted by means of personalised
messages.
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117
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. Our users recognise the quality of
provision, as they inform us via the NPS survey, where
we have exceeded an index of 82.
We are particularly proud of how smoothly operations went at the Nordic Ski World Championships in
Planica and the European Youth Summer Olympic Festival in Maribor.
Last year was marked by extraordinary and extreme weather events. Lightning strikes were the biggest
factor in the increased need to respond to service incidents in 2023, with a 93% year-on-year increase
in the number of instances between June and August.
Telekom Slovenije users also suffered damage on account of August’s floods and storms, which required
us to replace terminal equipment and re-establish connections. In the Mengeš area, we replaced all
terminal equipment in a matter of days as a result of the destruction of the functional location and the
consequent change to the technical solution.
We continued with the development of applications for field technicians. The development trend is
towards the use of artificial intelligence and associated tools.
The digital adviser Maks recorded 39,275 contacts with users, an
increase of 2% relative to the previous year. Contacts on the My
Telekom online portal and mobile app accounted for the bulk of contacts
(84%), followed by contacts via text message (11%) and Facebook
Messenger (5%). Transaction NPS at the DSM contact point was
exceeded.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
118
Transparency in the charging of services
52
We issued 5.3 million invoices for telecommunication services in 2023 (excluding non-standard invoices
and credit notes). There were approximately 200,000 fewer invoices issued in comparison with 2022.
This was partly the result of billing for several services on a joint invoice. Users contested 0.63% of all
invoices issued, with the number of complaints increasing by 0.1 percentage points between 2022 and
2023.
We encourage our customers to use electronic invoicing. In 2023 we increased the number of invoiced
issued in one of the available electronic formats by four percentage points (to 39% of all invoices).
Broad access to the Group’s services
53
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. We cover 99.57% of the
Slovenian population with the mobile telephony signal, 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 speeding up the
construction of the latest fibre-optic network, and are
already able to offer it to 459,000 Slovenian
households.
54
Coverage of the population with individual radio network technologies in Slovenia:
2G/GSM
4G/LTE
5G
99.57%
97.52%
60.70%
Concern for the safe use of services and vulnerable user groups
55
Through our services, we contribute to the digitalisation of society, and ensure responsible and
broad access to services. To that end, we provide specific vulnerable groups special solutions
and a tailored offer.
52
GRI PA10
53
GRI PA1, PA2, SDG 9
54
GRI PA4, SDG 1
55
GRI G4-DMA, G4-M4, PA2
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
119
Overview of portfolio for vulnerable groups and user security
User group
Offer or project
Children
• Parents can restrict their children’s access to websites using the ‘Varen splet’
(Safe Web) application on the My Telekom portal. The portal has pre-set
content categories that prevent access to inappropriate content.
• Mobi and Moja številka – provides children with free calls from a mobile
number to a selected number, and the option of sharing data allowances.
• Moja prva pogodba (My First Contract) is available at Telekom Slovenije points
of sale, and enables children and parents/guardians to draft (and sign) a plan
on how to use their mobile phone or other mobile device responsibly and in
moderation.
• On the NEO platform, we carefully curate the cartoons and other content
available in the Children’s Park. We therefore provide children with a ‘carefree
area’, as they can only watch content appropriate to their age. Parents and
guardians may also limit access to other content using a PIN code.
• NEO also provides parents and guardians with the option of limiting the playing
of games to those appropriate to their child’s age. NEO games are labelled in
accordance with the PEGI (Pan-European Game Information) system.
• In collaboration with the Mladinska knjiga publishing house, we have designed
the ‘Učim se’ (I Learn) mobile app for children aged between 6 and 12.
Through the interactive online puzzles, quizzes and games available on the
app, children can develop logical thinking skills, strengthen their vocabulary,
consolidate their mathematical knowledge and get to know the world.
• Users of IPKO’s fixed services can choose between three parental control
options for limiting what children see online.
Retirees and
older users
• The eCare service for safer living in the home environment 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.
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’ (Lightning Alarm) service is available to subscribers
to mobile and fixed Telekom Slovenije services. It warns users in advance of a
potential lightning strike in the area in which their fixed connection is located.
• In the ‘Digitalno starševstvo’ (Digital Parenting) section of the website, we
provide users with advice on how to use communication devices and services
safely.
• The range of products includes simple mobile phones for older and
technologically less-skilled users.
• We provide Slovenian hospitals and health centres telemedicine services,
through which medical staff can monitor the health of patients 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).
• The ‘Brezskrbni’ (Worry-Free) travel insurance product can be switched on
automatically when the user arrives abroad and into the domain of a foreign
operator. The user only pays according to the actual number of days abroad.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
120
• 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.
• We are encouraging our customers to move over to electronic invoicing.
• We offered our services to help businesses and individuals affected by the
floods that hit Slovenia in August 2023. We provided businesses in the affected
areas with free-of-charge use of server infrastructure in the cloud (virtual
servers, data back-up), free connectivity, free use of network infrastructure
(routers, switches, access points) and infrastructure equipment management
services, and free technical support and assistance in managing or maintaining
ICT infrastructure at the business’s location. To make communication easier,
we provided unlimited mobile data transfer to all of our mobile subscribers in the
affected areas and those who were providing assistance in the field.
Sustainable gifts for business partners
The gifts for business partners, customers and employees that we prepare at the end of the year
traditionally relate to the business activities in which Telekom Slovenije is involved, with particular care
and attention given to sustainability. We prepared a special collection of end-of-year gifts for 2023 which
we named ‘Vedno na boljše’ (Always for the Better) and which arose as a close collaboration between
Telekom Slovenije, Soline and TSinpo. The collection includes Soline products, which are the fruit of a
partnership with local suppliers. The gift packaging was also sustainable. The cardboard sleeves
manufactured at the TSinpo company are made from 100% recycled cardboard. The lids, which are
made from LDPE, are also environment-friendly. We gave employees planners made from the waste
paper we collected at Telekom Slovenije throughout the year.
Together with the Želva sheltered workshop, we transformed cloth face masks that were no longer being
used into cute and attractive coin purses.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
121
8.3.3 Employees
The Telekom Slovenije Group aims to provide an inclusive, cooperative, safe and healthy working
environment, one that is based on continuous education and the development of employees’ potentials
and skills, on the motivation, rewarding and retention of employees, and on the acquisition of new
diverse groups of individuals. Through an agile and systematic approach, we are succeeding in
strengthening our reputation and brand as an employer, creating a culture of development, and providing
opportunities for growth for individuals and the Group as a whole. In order to achieve the objectives in
strategically important areas, we empower employees through comprehensive and developmentally
oriented training programmes, and facilitate career development through internal mobility. As we operate
in a dynamic, high-tech sector that is constantly evolving, we can only achieve long-term commercial
success by investing in knowledge and development.
We devote a large number of our activities to promoting health and well-being at the workplace and to
preventing burnout. We focus particularly heavily on sustainable management, diversity promotion,
flexibility, hybrid forms of work and flexible working hours, all with the aim of making it easier for staff to
strike a proper work-life balance. We also carry out a large number of activities aimed at promoting
healthy lifestyles.
56
In accordance with our Code of Ethics, we take a zero-tolerance approach to 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. For more on the Telekom Slovenije Group’s Code of
Ethics, see section 8.4.1 Compliance and integrity.
As in previous years, no Telekom Slovenije Group company received any complaints regarding
discrimination in 2023.
57
Structure of employees
58
The Telekom Slovenije Group had a total of 3,253 employees at the end of 2023, 2,767 of them in
Slovenia. The total number of employees was down by 0.6% relative to the year before. This was
primarily because of the termination of employment for business reasons and retirements at Telekom
Slovenije.
At 7.6%, employee turnover within the Telekom Slovenije Group was up by 0.2
percentage points relative to 2022.
59
56
GRI 3-3
57
GRI 406-1
58
GRI 2-7
59
GRI 401-1
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
122
Number of employees as at 31 December 2023
Telekom
Slovenije
Group
Telekom
Slovenije
Other
companies
in
Slovenia
IPKO
Number of employees
3,253
2,083
684
486
Type of employment
Permanent employment
2,937
2,051
606
280
Temporary employment
316
32
78
206
Gender
Men
2,178
1,359
549
270
Women
1,075
724
135
216
Working time
Full-time
3,192
2,046
660
486
Part-time (due to disability, parenthood, etc.)
61
37
24
0
Types of employment contract
Employees covered by collective agreement
3,191
2,038
675
478
Employees outside the collective agreement system
62
45
9
8
Educational structure
Levels I to IV
273
95
178
Level V
933
666
267
Level VI
667
380
78
209
Level VII
1,208
835
147
226
Level VIII
172
107
14
51
A total of 98.5% of Telekom Slovenije employees are on permanent contracts, while that proportion is
88.6% at other Slovenian companies and 57.6% at IPKO. The main reason Slovenian companies
employ workers for a fixed term is to cover temporary increases in workload. There are more employees
on fixed-term contracts in Kosovo, which is the result of local legislation and the company’s employment
policy. In addition to its full-time employees, IPKO has a further 106 external agency workers that it
recruits directly. Before starting work, these workers undergo the same introductory training as other
employees in their position. They have the same rights and duties regarding occupational health and
safety.
60
Full-time employees account for the largest proportion of employees at the Group level (98.1%), with
part-time workers accounting for the remainder (1.9%).
60
GRI 2-8
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
123
Structure of employees at the Telekom Slovenije Group level
A total of 98.1% of Telekom Slovenije Group employees have an employment contract based on a
collective agreement. This was roughly the same proportion as 2022 (98%). The remaining 1.9% of
employees have contracts outside the collective bargaining system. These are primarily employees in
management positions.
61
Men accounted for 67% of all Telekom Slovenije Group employees in 2023, and women for 33%. Men
are in the majority among employees in Slovenia, while the gender ratio in favour of men is slightly
lower at IPKO (55.5%).
62
Ratios at individual companies vary with regard to activity.
61
GRI 2-30
62
GRI 405-1
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
124
Structure of employees at Telekom Slovenije Group companies
63
Number of new hires and departures in 2023 by age group
64
Telekom Slovenije
Group
Telekom Slovenije*
Other companies in
Slovenia
IPKO
Age group
New
hires
Departures
New
hires
Departures
New
hires
Departures
New
hires
Departures
18–30
144
68
50
18
38
20
56
30
31–40
68
75
28
24
24
16
16
35
41–50
35
35
24
22
9
10
2
3
51–60
13
74
5
52
6
22
2
0
61–65
0
17
0
11
0
6
0
0
Total
260
269
107
127
77
74
76
68
*Note: A portion of the new hires have been carried over into the next year.
Training and HR development
65
Only by acquiring new knowledge and strengthening employees’ skills can we develop suitable business
models, the very latest services and new business opportunities. Our education and development policy
helps us realise our strategic objectives, while systematically planned education and training, knowledge
management and the transfer of knowledge between colleagues ensures the growth and development
of the company and its employees, sustainable business operations and the best possible user
experience. The training programme offers employees a choice of more than 300 training courses in
various fields, and is upgraded every year with new, updated content. Our Knowledge Transfer
Competence Centre also pays considerable attention to the internal transfer of knowledge.
63
GRI 2-7
64
GRI 401-1
65
GRI 3-3
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125
In 2023 we again received a TOP investor in education certificate for our responsible HR management
and promotion of employee development, making us an above-average organisation in terms of
investment in employee education and training. We pay particular attention to educating and training
managers, key and high potential staff, our knowledge ambassadors, and internal coaches and trainers.
Employee development and training plans are drawn up as part of the annual development interviews,
which define the purpose and scope of the training. We assess the quality and benefits of training
through the measurement of participant satisfaction using electronic questionnaires. Telekom Slovenije
introduced a new Learning Activities module into the Effective Team HR information system in 2023
that provides employees and managers with continuous access to the management of education and
training needs.
There is a great deal of interest amongst employees for professional content and soft skills.
Key figures regarding employee education and training
66
Telekom Slovenije Group
Telekom Slovenije
2023
2022
Index
23/22
2023
2022
Index
23/22
Number of participants in
education and training
3,382
2,962
114
2,152
2,172
99
Number of education and
training hours
85,430
88,586
96
66,941
67,646
99
Proportion of employees
involved in education and
training*
100%
90.8%
110
100%
100%
100
Number of education and
training hours per employee
26
27.2
96
32.1
32.2
100
*The proportion of employees involved in education and training also includes individuals who took part in education and
training during the year but were no longer employed by the Telekom Slovenije Group as at 31 December 2023.
Four percent fewer hours of education and training were carried out at the Telekom Slovenije Group
level in 2023, while the number of hours as a per-employee average remained at the same level as in
the previous two years at Telekom Slovenije. The number of hours of education and training provided
remotely has continued to fall since the end of the Covid-19 period, meaning that the number of in-
person hours has risen.
Employees in technology and sales were most active, with 61% of them engaging in some form of
education or training.
Number of education and training hours by employee category
67
Employment category
Telekom Slovenije Group
Telekom Slovenije
2023
2022
Index
23/22
2023
2022
Index
23/22
Technology and sales
52,124
55,932
93
42,894
46,356
93
Administration
10,808
9,914
109
9,630
9,043
106
Team leaders
8,779
7,875
111
7,740
6,713
115
Middle management
5,952
6,551
91
4,812
4,125
117
Others
7,767
8,314
93
1,866
1,409
132
Total
85,430
88,586
96
66,942
67,646
99
66
GRI 404-1
67
GRI 404-1
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
126
Structure of training by area
The bulk of the education and training undergone by Telekom Slovenije Group employees was in
occupational health and safety and in the maintenance and protection of health, followed by changes to
legislation and the development of business skills. We paid considerable attention to education and
training in the areas of information security and personal data protection, and the professional
development of managers.
Structure and proportion of education and training by area within the Telekom Slovenije Group
We published 192 online courses on the Znam! e-training portal, which was just over a fifth of all
education and training content at Telekom Slovenije. The portal is accessible to all Telekom Slovenije,
TSmedia, Avtenta and TSinpo employees, as well as to our authorised agents. We also published
recordings of BrihtaKlepet video discussions on the portal in 2023; these are short presentations of our
products, services, projects and innovations. This is among the most popular content on the portal.
In addition to the education and training programmes we carry out ourselves, we also encourage
employees to continue their formal education, providing them with funding for studying while working
and paid leave to prepare for exams and other study commitments. At the end of 2023, a total of 29
employees had contracts with the Telekom Slovenije Group to improve their educational qualifications
(23 at Telekom Slovenije and six at GVO).
Developing employees’ knowledge and skills
68
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. We take a consistent and systematic approach to
improving the knowledge and skills of those employees who are in contact with users of our services
(customer advisers, field technicians, sales staff, dispatch centre staff) and to strengthening their
competences.
68
GRI 404-2
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127
S.M.A.R.T. – an advanced development-training programme
Knowledge Transfer Competence Centre
The Knowledge Transfer Competence Centre has four pillars: mentoring, coaching, e-learning and in-
house lecturers. We develop tailored education programmes within each pillar that foster the necessary
skills development, interaction and sharing of experiences. We raise awareness of the importance of
employees passing knowledge on to their colleagues via different pathways, such as the induction
process, presentations at meetings, documentation (document repository), informal communication,
teamwork and joint projects in which the sharing of ideas and experiences is encouraged, and the
sharing of good practice.
Telekom Slovenije had more than 130 in-house lecturers at the end of 2023. Every year they are
responsible for around half of all training workshops organised for staff. We are also intensively engaged
in developing the mentoring system, which welcomed 70 new colleagues in 2023.
Intergenerational cooperation
Workplaces today contain people of different generations with different experiences, knowledge and
responses to professional challenges. Their values, convictions and expectations must be aligned if they
are to work together successfully. This is a major challenge. In encouraging the structured transfer of
knowledge and intergenerational cooperation, we focus on mentoring and on work by in-house lecturers.
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. To this
end, Telekom Slovenije provides secondary school and university students with practical training and
education opportunities. We identify the best as candidates for employment.
We provided practical training and education opportunities to 74 secondary school and university
students in 2023. For the fifth consecutive year, we awarded company scholarships (ten new
scholarships for the 2023/2024 academic year); this gives a total of 23 active scholarship holders in
2023.
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128
We organise team events to strengthen connections between colleagues. There were eight such events
in 2023, and they brought together just under 160 colleagues from different organisational units and
different generations via a series of activities. The events are coordinated by an in-house team of
animators.
Key and high potential employees
Telekom Slovenije’s system of key and high potential employees includes individuals who contribute an
above-average share to the achievement of the Company’s objectives, who have highly developed
competences and who are keen to develop further. We have identified 9% of employees as key and
high potential employees, in three groups:
• key staff (creators) whose creativity contributes to improvements and growth;
• key staff (experts) whose unique knowledge ensures that processes are stable; and
• high potential staff (promising young talents) who are in the process of developing their careers.
This is a continuous process in which we develop employee potentials, prepare successors, ensure the
transfer of critical knowledge, give those employees priority in the recruitment process for more
demanding positions, and strive to retain them at the Company, all through carefully planned training.
Building the employer brand and acquiring new staff
Together with our employees we laid the foundations of the employer brand in 2019 with our employer
commitment Co-creating the digital future of Slovenia. In 2023 we continued activities related to
commitment, and asked our employees to tell us how they viewed Telekom Slovenije as an employer.
We also strengthen the employer brand through various events, by cooperating with schools, faculties
and research institutions, providing company scholarships, engaging guest lecturers, and so on. In 2023,
as part of a partnership signed with the careers centre at University of Ljubljana’s School of Economics
and Business, we opened a teaching room bearing the Telekom Slovenije name. This type of branding
helps us raise student’s awareness of Telekom Slovenije as a potential employer. A large number of
activities to build the employer brand also take place in the digital environment, mainly through LinkedIn.
We organised the first TRIP (Telekom Education and Development Programme) in 2023. This was an
event spanning several days, and brought together secondary school, post-secondary and higher
education students interested in the field of cyber security. We will hold this event with different themes
every year, with the aim of getting to know young people and outlining employment opportunities and
other forms of collaboration available at Telekom Slovenije.
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129
Management of older employees
69
We are actively engaged in 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 2023 we again focused on health
and well-being, and organised the first experiential workshop on the challenges of retirement. The aim
of the workshop was to create a safe, relaxed environment in which colleagues who were due to retire
could get together, reawaken a sense of hope, and express their wishes and aspirations for the period
to come.
Organisational culture and organisational vitality
Telekom Slovenije aims to create an organisational culture of integration, cooperation, trust and
responsibility. Activities are carried out with an emphasis on mutual cooperation and on the promotion
of innovativeness and creativity.
The Telekom Slovenije Group measures organisational vitality (ORVI), generally every two years. The
measurements examine organisational climate, employee satisfaction and employee commitment. They
were carried out by all subsidiaries in 2023 (by two of them for the first time), and will take place at
Telekom Slovenije in 2024.
A total of 87.6% of GVO employees took part in the organisational vitality measurement
study, which was a rise of 16.5% on the previous study. The ORVI index, which includes
responsiveness, the work environment, systems, operational management, personal
views and commitment, was 3.59 (down by 0.03 compared with 2022).
The response among employees at Avtenta was 88%, which was a fall of 5.8% on 2021.
The ORVI index was 3.36, or 0.25 down on the 2021 figure.
A total of 84.2% of IPKO employees took part in the study, which was 3.1% more than in 2021. The
ORVI index was 3.79, or 0.08% higher than the 2021 figure.
Measurements of organisational vitality were carried out at TSinpo and TSmedia for the first time in
2023. At TSinpo, 90.7% of employees took part and the ORVI index was 3.64, while at TSmedia, 86.4%
of employees took part (ORVI index of 3.48).
Employee motivation and benefits
The Telekom Slovenije Group systematically carries out activities that aim to have a
significant positive impact on employee motivation; this includes a precisely structured
system of monetary and non-monetary bonuses that are allocated in accordance with
the collective agreement and other bylaws. We also carry out a large number of activities
aimed at securing a working environment that motivates and incentivises staff; they
include flexible forms of work, the focusing of special attention on vulnerable groups of
workers, and the organisation of events and social gatherings.
Individual remuneration depends on an assessment of the achievement of personal objectives
(stimulation), and may be paid to employees twice a year. Sales staff with personal sales goals are given
performance-related bonuses on a quarterly basis, while non-monetary forms of remuneration are
largely related to our activities (VALÚ credit notes, gift certificates for Soline, etc.).
We also provide employees with benefits that include additional medical examinations, payments to the
second pension pillar, preventive health treatment and flexible working hours.
The basis for collective bonuses is predefined, expected results. We pay a year-end bonus on the basis
of operating results or if an employee exceeds the goals they have been set. All Group companies in
Slovenia paid out a Christmas bonus in 2023.
Full-time and temporary employees enjoy the same benefits, except the payment of voluntary pension
insurance premiums, to which new employees in Slovenia are entitled only 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
(96% of employees), Avtenta (81% of employees) and TSinpo (98% of employees).
70
We adhere to the principle of equal pay for equal work, or work of equal value, regardless of gender. A
Telekom Slovenije Group employee’s base salary is equivalent to the value of the wage grade for a
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GRI 404-2
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particular position for which an employment contract has been concluded, and is not dependent on
gender, location, affiliation or activity.
71
The lowest monthly salary paid to employees in companies in Slovenia is equal to the minimum wage
(at the Soline company), but is higher than the national minimum wage in other companies. IPKO pays
salaries that are 36.4% higher than the minimum wage in Kosovo. Sixty-three percent of IPKO’s senior
management come from the local area.
72
Employee social engagement
A total of 126 Telekom Slovenije employees took part in blood donation campaigns in 2023, along with
18 from GVO, six from Soline, three from TSinpo, three from TSmedia and one from Avtenta. Some of
our colleagues are also active members of civil protection and relief units.
Cooperation with research institutions
The Telekom Slovenije Group has a well-established system of collaboration and cooperation with
universities, faculties and secondary schools. This is because we are acutely aware of the constant
need for expertise in fields such as multimedia, cloud applications, user interfaces and cyber security,
to complement classic telecommunications and ICT services. Telekom Slovenije provides partner
support to the Multimedia study programme at the University of Ljubljana’s Faculty of Electrical
Engineering and Faculty of Computer and Information Science. We actively collaborate with the
Telecommunications Laboratory at the University of Ljubljana’s Faculty of Electrical Engineering, the
Faculty of Computer and Information Science, the School Centre for Postal Services, Economics and
Telecommunications, and the Faculty of Security Sciences. We provide guest lecturers and take part at
themed events at these institutions. We regularly organise meetings for students in Telekom Slovenije’s
premises, where we present work content, best practices and the technologies with which we work. We
work with pupils and students through compulsory practical training programmes and scholarships, and
supervise undergraduate theses. IPKO also has partnerships in place, and provides internships for
students from a number of different faculties, including RIT Kosovo (formerly the American University in
Kosovo), Dardania College and the University of Prizren, the University of Pristina (Technical Faculty),
Riinvest College and UBT College.
Management by objectives and the development of competences
73
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. Most subsidiaries conduct appraisal and development interviews once a year. The overall
assessment of work performance comprises an assessment of the achievement of objectives and an
assessment of competences. We define an individual’s development activities using a model of
competences based on our values. We systematically monitor the development of competences, and
develop them in response to current and future opportunities and needs.
Employees with a personal sales plan have the achievement of their sales objectives monitored, and
are provided with performance-related pay on a quarterly basis. Using the Predictive Index tool, we also
evaluate employees’ development potential, which forms the basis for further development in their
current post and also in terms of their future career.
Managing innovation
Telekom Slovenije collects employees’ innovative proposals and ideas via
Brihta, a digital collection site for ideas. It has in place an established
procedure for gaining a comprehensive overview of proposals, from submission
to potential implementation or feedback, with innovation mentors playing an
important role. 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 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). We have also set up additional, specific-purpose spaces, called ‘BrihtaPlac’, at
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locations throughout Slovenia for the organisation of these events and the promotion of creative and
innovative thinking. In 2023 we introduced a new set of activities, ‘BrihtaKlepet’; these are short video
interviews with employees that present our products, services, solutions, projects, innovation, best
practices and biggest achievements. Employees at other Group companies can also put forward ideas
and proposals in line with the internal procedures in place at those companies.
Cooperation with employee representatives
74
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.).
The Telekom Slovenije Works Council comprises 17 members and is chaired by Dušan Pišek. It held
nine ordinary sessions and four correspondence sessions in 2023.
Members of the Management Board of the company regularly briefed the Works Council on current
issues and the periodic operating results. Sessions of the Works Council were also attended by member
of the Management Board and Workers’ Director, Špela Fortin, who reported on activities orally and in
writing. The Works Council provided continuous information regarding the implementation of measures
and initiatives adopted at its sessions. The Works Council also carried out regular annual training in
accordance with its work plan.
Responsibility for employees and activities outside the workplace
At the Telekom Slovenije Group level, we organise events with employees, give gifts to employees’ first-
graders, employees celebrating work anniversaries and newborns, organise holiday day care services
for employees’ children, and support Telekom Slovenije’s pensioners clubs. In 2023 the Management
Board of the company presented the Group’s strategic business plan to Group employees for the 2024–
2028 period at locations around Slovenia.
Employees may join the TSsport sports club, which enables employees to participate in recreational
activities and national Telekom Slovenije Group championships in various sports. The club provides
employees affordable offers for different branches of sports. During 2023, the club organised
championships in skiing, badminton, table tennis, running, beach volleyball, sailing, golf, nine-pin
bowling, standard bowling, shooting, tennis and basketball. It also organised bowling outings, a golfing
course for beginners, a footgolf course, a course for boat operators, a VHF GMDSS course, and a self-
defence course for women and employees’ children.
Guided distance Pilates courses are available, and IPKO employees can take part in daily yoga exercises at
work.
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OCCUPATIONAL HEALTH AND SAFETY
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We manage the field of occupational health and safety in accordance with the
legislative requirements set out for all employees and for each segment separately. We
implemented all key measures relating to occupational health and safety, and fire
protection in 2023. We took regular measurements of environmental conditions and
lighting in the work environment for all locations where this was deemed necessary. The
process of identifying dangers associated with safe work was carried out at three levels: via regular
occupational safety training, regular on-site inspections and various project groups.
76
All training, both theoretical and practical, in the area of occupational health and safety was in line with
the requirements of the law. 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.
77
The occupational health and safety system is comprehensively regulated at companies in Slovenia by
the Occupational Health and Safety Act (ZVZD-1) and by safety declarations with risk assessments.
This area is governed at IPKO by local legislation, its safety declaration with risk assessments and
through an internal health, safety and quality control system that includes all employees.
78
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. In accordance with the legislation, we analyse every
injury at work and report it to the competent authorities (ER-8).
79
Healthcare
80
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.
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GRI 403-2
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GRI 403-5
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GRI 403-1, 403-8
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GRI 403-2, 403-4
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Healthcare and workplace injuries in the Telekom Slovenije Group
81
Occupational health and safety
2023
2022
Index
23/22
Number of injuries
31
35
89
Number of working days lost
1,712
1,637
105
Number of working hours lost
13,534
12,992
104
Number of medical examinations
1,165
1,501
78
- preliminary examinations
253
212
119
- periodic examinations
988
1,289
77
Number of deaths
0
0
0
At the Telekom Slovenije Group, the system for identifying occupational diseases comprises regular
preventive medical checks. We have not so far identified any employees with high levels of occupational
disease.
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Injuries caused by slips were the most common single type of injury in 2023 (nine instances),
followed by cuts caused by tools and collisions with objects.
Fire safety
Fire safety rules and evacuation and fire plans are in place in all of our facilities. These are reviewed
and updated to reflect any 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
2023, while several evacuation drills were conducted. At our facilities throughout Slovenia, we carried
out regular maintenance and service operations of active fire-protection systems, and drew up fire-risk
assessments for our facilities in line with the new legislation. We recorded only one minor fire at Telekom
Slovenije in 2023 (in connection with a boiler).
Health promotion, stress management and preventing employee burnout
83
We make every effort to ensure that our employees operate in a safe working environment, maintain
their health at work, and take care of their own health at work and outside it. Telekom Slovenije notifies
employees about additional preventive medical examinations, vaccinations against various diseases
and current health content via the internal ‘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. A total of 843 additional examinations were carried out in 2023. TSmedia encourages
employees to be active with a weekly online exercise class.
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Activities aimed at managing stress and preventing burnout are carried out at Telekom Slovenije within
the ‘Živijo, stres!’ (Hello, Stress!) project, as part of which we also prepare online training with a variety
of experts, regular internal educational workshops and topical articles on the intranet (active breaks,
food and nutrition, etc.). We also organised a smaller number of anti-stress workshops, and reintroduced
preventive health recreation programmes. The special ‘Modri telefon’ (Wise Telephone) project, which
provides employees with the opportunity to talk to a psychologist, has been very well received. There is
also a great deal of useful information and advice about healthy lifestyles on a special intranet portal.
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GRI 403-9
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GRI 403-10
83
GRI 403-6
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GRI 403-6
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The Heart Foundation
The Heart Foundation is an internal fund aimed at helping the children of
employees of Slovenian Telekom Slovenije Group companies who have
lost a parent or who are seriously ill and require special treatment. In 2023
a total of 1,187 employees made monthly contributions to the fund, with
Telekom Slovenije adding EUR 15,000 to it at the end of the year.
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 the monthly donations to help 45 children in 2023. We also helped
three seriously ill children via one-time donations.
In 2023 we organised our first ‘Heart Climb’ to raise funds on the occasion of World Heart Day. This is
an event at which employees register to run or walk up the 11-storey Telekom Slovenije tower at
Cigaletova 15 in Ljubljana. The company donated EUR 100 to the Heart Foundation for every
participant. A total of 115 colleagues from the Slovenian companies in the Group took part in the event.
Parental leave
85
Parental leave is one of the indicators included in the measures connected with awarding of a Socially
Responsible Employer Certificate. Employees who are entitled to parental leave exercise the right in
full, which is confirmation of our support for a good work-life balance. While mothers take the bulk of
parental leave, fathers also take leave to care for their child in the early months. Employees return to
their jobs following the end of parental leave, as adopted measures provide opportunities that make it
easier to find the right work-life balance.
Telekom Slovenije Group
Telekom Slovenije
2023
2022
2023
2022
Number of employees on parental leave
62
73
21
21
of whom: women
51
54
20
17
men
11
19
1
4
Employees who returned to work following parental
leave
52
54
21
21
proportion in %
84
74
100
100
- of whom: women
41
36
20
17
proportion in %
80
67
100
100
men
11
18
1
4
proportion in %
100
95
100
100
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Socially responsible employer
Our acquisition of the advanced Socially Responsible Employer certificate is testament
to the success of our efforts to create a working environment that fosters responsibility,
equality and a good work-life balance for our employees. This is reflected in the
numerous measures relating to organisational management, efficient energy
consumption, reducing carbon footprint, promoting employee health and safety,
intergenerational cooperation and education, and the promotion of diversity and
equality. The certificate is proof of our commitment to sustainability and social
responsibility, which are things that help us consolidate our reputation in the wider
community and make a significant contribution to building the Telekom Slovenije brand.
With the adoption of measures connected with the full Family-Friendly Company
certificate, we are also continuing our activities to ensure that our employees enjoy a
decent work-life balance, with a focus on developing flexible working practices and
flexible forms of work.
Employment and training of persons with disabilities
86
The Telekom Slovenije Group facilitates the continued regular employment of employees with work
limitations resulting from disabilities. Group companies have a total of 92 employees of various disability
levels (2.8% of all employees). Of those persons, 41.3% are full-time workers.
Telekom Slovenije and GVO regularly exceed the legally prescribed quota of
employees with disabilities. 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 employee with a disability over the prescribed quota.
Although IPKO has two employees with disabilities, Kosovo has no national remuneration system as
described above.
TSinpo, which facilitates the employment and training of people with disabilities and the adaptation of
workplaces to their needs, plays a special role in operations involving workers with disabilities. The
company recruits people with disabilities from within the Group and from the labour market. It had 44
employees in 2023, 27 of whom were workers with disabilities.
TSinpo produces and markets cardboard sleeves and packaging under its own brand. The products are
made from 100% recycled cardboard, and the lids are also made from recyclable LDPE. TSinpo also
provides Telekom Slovenije with 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 materials for end-users, the maintenance of the documentary material
archive and a correspondence contact centre.
Communication with employees
A great deal of attention is given to ensuring that employees have up to date information at their disposal,
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 a range of different communication channels. 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, bylaws, 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. We
also communicate with employees via Microsoft Teams, digital screens installed at various locations
around the country, email and electronic newsletters, and also at different events such as workshops,
online seminars, training with internal and external experts, councils and miscellaneous internal events.
In 2023 we organised Telekom Slovenije Group Day and a New Year’s gathering for staff. The
Management Board presented the Group’s strategy at locations around Slovenia, and there were
numerous other informal activities. Every Group company has in place its own method of communicating
with employees. All activities for employees are linked by the #connected platform.
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Telekom Slovenije encourages its employees to be active digital ambassadors. We linked employees
through the Sociabble digital platform with the aim of making work easier and more efficient, and
fostering closer cooperation and ties between staff. Any employee who creates and shares our
positive stories on social networks can become a ‘digital ambassador’ of the Company. This further
helps to co-create Telekom Slovenije’s reputation, its corporate brand and its ‘employer brand’.
8.3.4 Supply chain
87
Procurement function
The procurement policies of all Group companies are coordinated and standardised, and include
strategic policies and principles for ensuring that the procurement process is transparent. The
procurement function at Telekom Slovenije is largely centralised, which enables the cost-effective,
efficient and transparent use of resources and funds. The procurement process is standardised and
enables potential suppliers to be treated equally. The selection of the most appropriate supplier is carried
out in accordance with an offer assessment methodology. Part of the procurement policy is also focused
on encouraging companies to work together on joint procurement operations. We maintain high
standards of integrity in procurement procedures, and build long-term success and a good reputation
by engaging honestly, fairly and transparently with our suppliers.
Challenges in 2023
The key challenges facing the procurement function in 2023 were linked to the effects of the energy
crisis, inflation and the rise in the cost of living, all of which led to a rise in operating costs. Uncertain
geopolitical and economic conditions also had an adverse effect on procurement.
We responded to these adverse conditions by adjusting our business processes, conducting additional
negotiations with suppliers and adjusting our specifications. We called on suppliers to further optimise
costs, while we searched for replacements and new and alternative suppliers. Having an efficient
procurement process in place enabled us to secure a stable and reliable supply of energy despite the
crisis and the government’s regulatory interventions. Our agile procurement processes also enabled us
to respond swiftly and to put equipment in place to ensure that operations were not disrupted during the
summer storms and floods. We ensured continuous supply through continuous communication with
suppliers, regular monitoring of possible impacts on the timely provision of supply, adequate contractual
safeguards, and the on-time identification of risks and of the measures required. With the exception of
a few minor delays that did not affect operations, we did not encounter any major supply-related
problems.
Supplier structure
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 2,706 suppliers from 39
countries. A total of 96.27% of suppliers are from the European Union.
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. Total turnover between Telekom Slovenije and its
Slovenian subsidiaries and their business partners amounted to EUR 578,818,804 in 2023 (including
VAT). That amount also includes sponsorships and donations.
Risk mitigation
We control risks in the supply chain by carrying out a thorough examination of the risks attendant upon
working with a new supplier. This helps us prevent high costs from being incurred or reputation lost. We
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regularly review existing strategic suppliers, assess them and define measures for improving
cooperation. With other (existing) suppliers, we assess the risks of working with them as required and
in accordance with the methodology adopted at the Company.
We have in place an efficient system for verifying the acceptability of a supplier. Before entering into a
procurement transaction of greater value with a new business partner, we obtain information on that
partner by means of a questionnaire. This information then provides the basis for a due diligence check.
Digital transformation
We have a BPM process in place to support procurement processes. We are planning to upgrade the
existing solution next year with a portal designed, among other things, for communication with suppliers.
Social and environmental responsibility
In our commitments with suppliers, we make a point of emphasising the importance of
sustainability. Via the general procurement terms and conditions, which are generally an
integral part of any order, or mandatory contractual clauses, we bind our suppliers to the
principles of social and environmental responsibility. We are also developing, with our
supply chain partners, innovative approaches to cooperation to achieve common
sustainability objectives. At Telekom Slovenije we engage in paperless operations as far as possible,
and encourage suppliers to do the same.
Our sustainability-oriented procurement policy helps us to contribute to positive changes in the global
environment and society. Our objective in the coming years is therefore to increase transparency along
the whole supply chain. In 2024 we will introduce a questionnaire to enable us to monitor the
environmental, social and governance (ESG) aspects of the business practices of our strategic
suppliers.
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8.4 Governance aspects
8.4.1 Compliance and integrity
88
The basis for ensuring compliance is the appropriate conduct of all Telekom Slovenije Group employees.
Employees are bound by the Code of Ethics of the Telekom Slovenije Group (Code of Ethics) to
conduct themselves in accordance with the law, other regulations and bylaws, and to behave responsibly
towards the companies of the Group, their colleagues, customers, business partners, the public and
other stakeholders.
The Code of Ethics commits us to engage in fair and transparent
operations, protect personal data, respect human rights, protect
information and business data, avoid conflicts of interest and the pursuit of
personal interests, prevent corrupt acts, money laundering and the
restriction of competition, and report dishonest conduct. The content of the
Code of Ethics is reviewed and updated where necessary by the Compliance and Integrity Officer, in
cooperation with the organisational units and companies of the Telekom Slovenije Group. We present
the importance of ethical and business standards for successful operations regularly to employees
during training. The Code of Ethics is published on the Company’s website. In 2023 we again prepared
a compulsory online training course on the key elements of the Code of Ethics.
The compliance management system is governed by the Telekom Slovenije Group’s Compliance
Management Policy, which applies to all Group companies. The system is continuously updated, which
reflects our commitment to strengthening integrity and ensuring that our business is successful over the
long term. The system is based on the identification and mitigation or management of risks. Playing an
important role in that process are the prevention of irregularities through preventive actions, and rapid
and effective measures in the event of identified breaches. The following have been appointed for
specific areas of compliance at Telekom Slovenije:
• a Compliance and Integrity Officer (including at IPKO);
• Data Protection Officers (including at TSmedia and IPKO);
• a Prevention of Money Laundering and Terrorist Financing (AML/CFT) Officer;
• officers responsible for the dissemination of information of a public nature (all companies in
Slovenia).
These officers perform their functions independently and autonomously, and report directly to the
Management Board, the Telekom Slovenije Supervisory Board’s Audit Committee and the Telekom
Slovenije Supervisory Board on a quarterly basis with regard to activities performed and measures
adopted to mitigate risks in the area of compliance.
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The officers worked mainly in the following areas in 2023:
• preventing corruption and conflicts of interest;
• handling whistleblowing reports processed by the Whistleblowing Committee;
• ensuring compliance with competition law;
• safeguarding trade secrets;
• respect for human rights;
• personal data protection;
• anti-money laundering and combating the financing of terrorism;
• overseeing the handling of confidential data;
• information of a public nature.
The Whistleblowing Committee, which is chaired by the Compliance and Integrity Officer, dealt with
reports of irregularities in various different fields of operation in 2023.
Prevention of corruption and conflicts of interest, and ensuring compliance with competition law
Telekom Slovenije constantly strengthens its resilience to corrupt and other unlawful and unethical
conduct, and creates an environment of trust within the organisation. Every year we update the Integrity
Plan of Telekom Slovenije, which defines and assesses the risks, reviews the internal controls and
measures in place, and determines any further activities and measures to be taken to ensure a high
level of compliance and integrity within the Company. An integrity plan will also be put in place at
subsidiaries in 2024.
The Code of Conduct for the Suppliers of the Telekom Slovenije Group has established clear
expectations of the standards of conduct that we wish to see from our suppliers. It addresses issues
such as human rights, occupational health and safety, environmental protection and business ethics,
thereby strengthening our control over the supply chain, enabling us to maintain high ethical standards
and reducing the risks connected with our own operations. The provisions of the code are incorporated
into our business relationships with suppliers. We also carry out sample checks to ensure that their
operations are compliant.
The Rules Governing Conflicts of Interest define the activities expected of employees to prevent the
occurrence of conflicts of interest and manage them when they arise. Employees in key positions must
be particularly mindful of the policies and procedures in place, which is why they are required to sign an
annual declaration stating that they have no conflicts of interest. All notifications and declarations by
employees are processed and assessed by the Compliance Committee. Regarding contacts and links
with representatives of national and local government authorities and holders of public authorisations,
we have clearly defined rules on lawful lobbying. We report any potential lobbying links to the
Commission for the Prevention of Corruption as a matter of course.
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The management of potential conflicts of interest of members of management and supervisory bodies
is regulated by the Rules of Procedure of the Management Board and the Rules of Procedure of the
Supervisory Board. These two rulebooks include substantive provisions regarding the conduct of an
individual member of a body who finds themselves in circumstances that constitute a conflict of interest.
The rules were further updated in detail in 2023.
89
The Telekom Slovenije Group has rules, procedures and internal controls in place for managing the risks
of transactions with related parties. The Group complies with the provisions of the applicable legislation
on transactions with related parties. The internal processes define the cases where the prior approval
of the Supervisory Board must be sought for concluding transactions with related parties, and the cases
where transactions of that type must be made public. We have a system in place for checking the
existence of such transactions, although no instances of transactions that would have required the prior
approval of the Supervisory Board arose in 2023.
In relation to the acceptance and offering of gifts and invitations to events, we have rules, guidelines
and procedures that support ethical, lawful business operations that adhere to the principles of integrity.
We thus ensure the unbiased, objective and professional performance of work tasks and adoption of
business decisions.
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 confidentiality 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. In 2023
we supplemented the rules with the requirements set out in the Whistleblower Protection Act (ZZPri).
Subsidiaries with 50 or more employees are required to appoint one or more trustees from among the
workforce to deal with whistleblower reports. We dealt with a total of five reports from internal and
external whistleblowers in 2023. Investigations relating to one of the reports were still ongoing as at 31
December 2023. No infringements were found in any of the other cases. In one case the Whistleblowing
Committee made recommendations for improving processes.
No cases of corruption were identified and confirmed within the Telekom Slovenije Group in 2023.
90
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.
91
The Compliance and Integrity
Officer checked the compliance of four sponsorship contracts in 2023, in each case finding that no
infringements had been committed in the course of the performance of the contractual provisions.
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. In 2023 we drafted amendments to
the rules to reflect the organisational changes at the Company. We also and at the same time
strengthened the role of the Compliance and Integrity Officer within processes. By regularly informing
and training employees, we contribute additionally to the management of such risks.
Protection of privacy and personal data
92
We pay a great deal of attention to safeguarding privacy, personal data and trade secrets, as this helps
us to maintain the high level of trust enjoyed by the Telekom Slovenije Group and its services.
Because of the field in which we do business and the quantity and type of data that we process (from
our users as well as from other stakeholders), we are exposed to risks in connection with personal data
protection. We therefore continuously monitor our operations with existing services, as well as with the
development of new services or the introduction of new technologies. We also monitor the wider
environment in which we operate. Taking due account of the risks, we update and upgrade our
processes, procedures, measures and internal controls to ensure that personal data is protected.
89
GRI 2-15
90
GRI 205-3
91
GRI 415-1
92
GRI 3-3, SASB: TC-TL-220a.1, TC-TL-230a.2
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In response to changes in the regulatory environment,
93
to good practices and to our own experiences,
we updated key documents of the Company dealing with data protection.
94
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.
In 2023 the supervisory authorities (AKOS and the Information Commissioner) initiated three
supervisory procedures in relation to personal and traffic data protection at Telekom Slovenije. No
irregularities were detected in the two procedures completed. The third procedure had not yet been
completed as at 31 December 2023.
Telekom Slovenije received 123 privacy-related reports from individuals (users of services, employees)
in 2023. The growth in the number of incidents resulting from abuse in the conclusion of contracts
involving the purchase of a device in previous years was halted in 2023 with the introduction of additional
mechanisms for verifying user data when contracts are being concluded. The number of such incidents
therefore remains comparable with the previous year. We track the performance of the mechanisms in
place on an ongoing basis, and take steps to remedy the consequences and prevent any future
infringements. We ceased working with two authorised sellers because of improper data handling and
for other reasons.
In 2023 IPKO received a complaint regarding a possible breach of a user’s privacy.
We did not record any losses in 2023 from legal proceedings as the result of events in connection with
privacy or the protection of the personal data of individuals.
95
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.
To prevent money laundering and terrorist financing, we conduct the prescribed know-your-customer
measures, which include customer due diligence when entering into a business relationship and the
monitoring of customers’ transactions in accordance with regulations. 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 2023, nor did we
identify any transactions involving the suspicion of money laundering or terrorist financing.
96
Compliance training
97
The Telekom Slovenije Group organises regular education, training, workshops and e-learning on the
subject of compliance for employees and authorised agents. We also inform employees of these
programmes via the intranet or by email.
In 2023 Telekom Slovenije employees undertook a total of 994 hours of education and training in the
field of personal data protection and the handling of confidential data, 592 hours in the field of information
(cyber) security and social engineering, and 291 hours in the detection and prevention of money
laundering and terrorist financing, and the prevention of corruption and conflicts of interest.
Telekom Slovenije Group employees undertook 5,991 hours of education and training in safety
culture/personal data protection in 2023.
Online courses on getting to know the Code of Ethics and on respect for human rights were organised
in 2023. Both courses were compulsory for employees.
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).
93
The Electronic Communications Act (ZEKom-2), the Personal Data Protection Act (ZVOP-2), and the practice
and guidelines of supervisory authorities.
94
The privacy policy, terms and conditions of business, the Rules on personal data protection, the Rules on the
protection of trade secrets, and Rules on the handling and protection of confidential data.
95
GRI 2-25, 418-1, SASB: TC-TL-230a.1, TC-TL-220a.3
96
GRI 205-3
97
GRI 2-23, 2-24, 205-2
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Telekom Slovenije published 263 proactive transaction announcements in accordance with the ZDIJZ
in 2023, and processed nine new requests for access to information.
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.
Competition protection
98
No new proceedings were initiated against Telekom Slovenije or its subsidiaries in 2023 in response to
a potential breach of competition protection rules. One set of proceedings in this area from previous
years is under way before the Competition Protection Agency (AVK). The outcome is still pending. The
AVK halted one set of proceedings.
8.4.2 Respect for human rights
99
The Telekom Slovenije Group is aware that respect for human rights helps to create a
positive working environment in which employees feel respected, safe and equal. We
ensure that human rights are respected at all levels of our business.
At work we are committed to tolerance, mutual respect and respect for basic human
rights. All of these principles are firmly embedded within the Telekom Slovenije Group’s
Code of Ethics. We have also addressed respect for human rights in detail in the Rules
on respect for human rights. 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 they are respected. Complaints by employees who believe that their human rights have
been violated or who identify a violation of human rights are received and dealt with by the Human
Rights Officer, who is a member of the Management Board (Workers’ Director). Among other things,
her role is to establish and monitor control mechanisms and manage preventive measures in the area
of human rights. We received no reports of violations in this area in 2023.
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. In 2023 we focused on carrying out the measures we identified in the course of the due
diligence process we applied to the field of human rights in 2022. We also prepared some online courses
to give employees a thorough understanding of human rights, including their origin and meaning.
Employees also refreshed their knowledge of the procedures and mechanisms used at the Company to
ensure that human rights are respected.
We also expect our suppliers to respect human rights, and commit them to doing so through the Code
of Conduct for the Suppliers of the Telekom Slovenije Group, which is incorporated into our business
relationships. No breaches of the Code of Conduct were identified in 2023.
8.4.3 Taxes and auditing
Reporting on taxes
100
Telekom Slovenije Group operates in accordance with tax law in respect of taxes. Operations involving
tax-related risks are 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 of business events.
The internal act Tax Strategy and Tax Management within the Telekom Slovenije Group regulates
the 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.
98
GRI 206-1, SASB: TC-TL-520a.1
99
GRI 2-23, 2-24, 2-25, 2-26, 3-3
100
GRI 3-3, 207-1, 207-2, 207-3
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The area of taxes is governed at Telekom Slovenije by the internal act Organisation of the Tax
Function at Telekom Slovenije, d.d. The Finance and Accounting organisational unit is responsible for
drafting and monitoring the tax policy.
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
have adequate internal controls in place. They report to the parent company, regularly and in good time,
on all deviations from the provisions of the tax policy as adopted.
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.
External auditing
At Telekom Slovenije’s 36th General Meeting of Shareholders, which took place on 16 June 2023, the
audit firm Deloitte revizija, d.o.o. was appointed to audit the financial statements of the Group and
Telekom Slovenije d.d. for the 2023, 2024 and 2025 financial years, as per the Guidelines for Ensuring
the Independence of the Auditor of the Financial Statements of the Telekom Slovenije Group. The costs
associated with the auditor are disclosed in the financial report in point 43 (‘Auditor’s fee’).
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 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 well with senior
management and the supervisory body, and reports regularly to both with regard to its work. Senior
management and the supervisory body provide support to the IAS by recognising the added value that
its reports provide.
Objective assurances regarding key risks and consultancy services are provided by internal auditors
with all the relevant active professional titles. They attend professional training regularly, are members
of professional associations, and share their knowledge with colleagues at conferences, seminars and
workshops. Their experiences form the basis for a thorough understanding of the complex operations
of the Telekom Slovenije Group and the preparation of assurances in the selected areas.
The IAS plans transactions on the basis of recognised key risks that could jeopardise achievement of
the objectives set out in the Strategic Business Plan of 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, the giving of
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 for 2023 were defined in the annual work plan drawn up on the basis of actual risks. The annual
and multi-year plans were adopted by the Management Board. The Supervisory Board gave its approval
to the plans, at the proposal of the Audit Committee. In addition to carrying out the audit engagements
set out in the annual plan, the IAS completed four extraordinary audits in 2023. Based on an assessment
of the engagements performed, we found that measures to control the risks to the achievement of the
objectives are in place and are working properly. However, the IAS did make quite a few
recommendations to improve performance and increase business performance.
8.4.4 Regulation of electronic communications
Frequencies
In November 2023, AKOS published an invitation to tender with public auction for the allocation of the
2,300 MHz and 3,600 MHz radio frequencies for local use. It also prepared a Draft Strategy for the
Management of the Radio Frequency Spectrum for the 2024–2026 Period.
Development of next generation broadband networks
In March 2023 the Slovenian government adopted the Digital Slovenia 2030 strategy, followed in
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146
November by the National Strategic Plan for the Digital Decade. The former is designed to aid the
strategic planning of the promotion of Slovenia’s digital transformation, while the latter sets out the path
by which Slovenia will contribute to the common European objectives of the Digital Decade in the fields
of digital skills, digital infrastructure, the digital transformation of companies and digital public services.
National legislation and EU regulations
In 2023, AKOS and the Ministry of Digital Transformation drafted a considerable number of implementing
regulations pursuant to the Electronic Communications Act (ZEKom-2) adopted in 2022. Telekom
Slovenije actively took part in this process in the form of public consultations.
In February 2023 the European Commission set out a series of measures by which all citizens and
enterprises in the EU should be provided with gigabit connectivity by 2030. It adopted a draft Gigabit
Infrastructure Act, which will set down new rules for the faster, cheaper and more efficient rollout of
gigabit networks across the whole of the EU. The draft gigabit infrastructure recommendations are aimed
at national regulatory authorities. It should provide guidance on the conditions of access to the
telecommunications networks of those operators with significant market power, and speed up the
discontinuation of old technologies and the rollout of gigabit networks.
Relevant markets
AKOS conducted various inspections in 2023 with respect to Telekom Slovenije in connection with
imposed obligations on regulated relevant markets. Telekom Slovenije addressed an initiative to AKOS
for the re-analysis of relevant market 3b, which is no longer on the European Commission’s list of
markets requiring ex ante regulation.
Relevant market
Change
Relevant market 4 (2014/710/EU) ‘Wholesale
high-quality access at a fixed location’
On 26 October 2023 the Administrative Court
annulled the decision, issued on 30 September
2019, that determined Telekom Slovenije as an
operator with significant market power.
Relevant market 1 (2020/2245/EU) ‘Wholesale
local access at a fixed location’
In a decision dated 15 December 2023, AKOS
expanded the set of settlements in which prices
were deregulated.
Relevant market 3b (2014/710/EU) ‘Wholesale
central access at a fixed location for mass-
market products’
In a decision dated 15 December 2023, AKOS
expanded the set of fully deregulated
settlements.
8.4.5 Quality management systems
Through management systems we control the entire lifecycle of our services, from design and
development, the securing of resources, logistics, implementation and the maintenance of service
quality during the operation phase, to the controlled conclusion of the lifecycle. In 2023 the Group
managed to successfully maintain all management systems already in place.
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Review of compliance certificates for management systems based on ISO, IEC, EN and SIST
standards
Certificates of compliance
Validity
Telekom Slovenije, d.d.
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 2026
Cyber Security and Resilience 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 2026
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 2026
Design, construction and maintenance of telecommunications
and electricity networks.
SIST EN ISO 14001
Valid until: 31 December 2026
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
SIST EN ISO 9001
Valid until: 24 December 2026
Digital cable TV, internet services, and fixed and mobile
telephony.
SIST EN IEC/ISO 27001
Valid until: 24 December 2026
Digital cable TV, internet services, and fixed and mobile
telephony.
We successfully passed other assessments to maintain non-accredited manufacturer certificates, such
as MS Partner, Cisco, Oracle and HP, and for systems that are based on other recommendations
(internal rules, Family-Friendly Company, Socially Responsible Employer, etc.). In 2023 we completed
a cycle of self-assessments of the operational excellence of the parent company (2021–2023) under the
global EFQM 2020 method.
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.
Following a new assessment of the legal compliance of the management of documentary material, we
received certification at the end of 2021 in the form of a decision from the Archives of the Republic of
Slovenia stating that Telekom Slovenije’s internal rules were compliant with the law governing the
protection of documentary and archive materials. In 2023, following a decision by the Archives, Telekom
Slovenije was entered in the register of creators of archive material.
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A representation of management systems in the Telekom Slovenije Group
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8.4.6 Disclosures of indicators for economic activities that are included in the EU Taxonomy
Regulation (EU) 2020/852 (the Taxonomy Regulation) and the delegated acts that supplement it (2021/2139 and 2021/2178) lay down a single classification
system for environmentally sustainable economic activities, and represent an important step towards achieving the EU goal of climate neutrality by 2050.
A taxonomy-eligible economic activity is an activity described in the delegated acts supplementing the Taxonomy Regulation. It is not important here whether a
specific economic activity meets any or all of the technical screening criteria set out in these delegated acts. An economic activity is taxonomy-aligned if it
meets the technical screening criteria defined in the Climate Delegated Act.
The Telekom Slovenije Group is obliged to publish key performance indicators for 2023. Those indicators relate to services linked to economic activities that
can be classed as sustainable.
We prepared disclosures on the basis of a review of the aforementioned documents, our understanding and the available information. In view of the fact that
the Delegated Regulation is to be upgraded, we will examine further interpretations and requirements as they arise, and take account of their impact on the
disclosure of Telekom Slovenije and Telekom Slovenije Group data. We will in future refine our reporting systems and reports in line with the recommendations
that have been made by various regulators, so that they will provide more comprehensive disclosures as required by the Delegated Regulation.
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.
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. We have 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. 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.
Below we give the key performance indicators that apply to Telekom Slovenije and the Telekom Slovenije Group and are in accordance with the Annex to
Commission Delegated Regulation (EU) 2021/2178 – Key performance indicators for non-financial undertakings.
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Proportion of turnover from products and services associated with taxonomy
101
-aligned economic activities – disclosures of the Telekom Slovenije Group
101
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).
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151
Proportion of operating expenses (OPEX)
102
, excluding amortisation and depreciation and other operating expenses in connection with taxonomy-aligned
economic activities – disclosures of the Telekom Slovenije Group
102
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).
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Proportion of capital expenditure (CAPEX)
103
from products or services associated with taxonomy-aligned economic activities – disclosures of the Telekom
Slovenije Group
103
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).
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153
In the criteria for a substantial contribution to the climate change mitigation or adaptation objective, we have tied activities 7.4 and 7.6 fully to the objective of
climate change mitigation. At the same time, our assessment is that these activities do no significant harm to any other environmental objectives (climate
change adaptation, water and marine resources, circular economy, pollution, and biodiversity and ecosystems).
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’.
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’.
In certain cases, specific business activities could be allocated to more than one activity under the taxonomy. This could apply in particular for OPEX and
CAPEX. In our case, we only took into account OPEX and CAPEX for the stated business activities. In this way, we will continue to facilitate transparency in the
future and thus prevent double counting by allocating the value of OPEX or CAPEX to the core activity based on the majority principle.
The following approach was taken into account for taxonomy alignment:
- There are no thresholds or technical criteria for activities 7.4 and 7.6. They are therefore deemed to be taxonomy-aligned in full.
- There are thresholds in place for assessing the substantial contribution to alignment for activities 8.1 and 8.2. The disclosure of information still does
not comply with the technical screening criteria for determining the conditions under which an economic activity qualifies as contributing substantially
to climate change mitigation or climate change adaptation and for determining whether that economic activity causes no significant harm to any of
the other environmental objectives.
We expect that, as a result of the updating of the list of activities in the future, an even bigger portion of our turnover, operating expenses and CapEx will
belong to activities that comply or are aligned with the EU Taxonomy. As the principles of sustainable operations are an integral element of the business
processes of Telekom Slovenije and Telekom Slovenije Group companies, we expect that the key performance indicators will gain in value in the coming
years.
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155
9 FINANCIAL REPORT OF THE TELEKOM SLOVENIJE GROUP
AND THE COMPANY TELEKOM SLOVENIJE, D.D., FOR THE
YEAR 2023
9.1. Financial statements of the Telekom Slovenije Group and Telekom Slovenije ................................... 156
9.2. Notes to the consolidated financial statements of the Telekom Slovenije Group and the separate
financial statements of Telekom Slovenije .......................................................................... 164
1. Reporting entity.......................................................................................................................................... 164
2. Basis for preparation ................................................................................................................................. 164
3. Summary of significant accounting policies ........................................................................................... 168
4. Fair value measurement ............................................................................................................................ 181
5. Composition of the Telekom Slovenije Group......................................................................................... 181
6. Segment reporting ..................................................................................................................................... 184
7. Sales revenue ............................................................................................................................................. 186
8. Other operating income ............................................................................................................................. 187
9. Cost of goods sold, costs of materials, energy and services ................................................................ 188
10. Labour costs .............................................................................................................................................. 189
11. Depreciation/Amortisation ........................................................................................................................ 190
12. Other operating expenses ......................................................................................................................... 190
13. Finance income and expenses ................................................................................................................. 191
14. Income tax, deferred tax assets and tax liabilities .................................................................................. 192
15. Earnings per share ..................................................................................................................................... 194
16. Intangible assets ........................................................................................................................................ 195
17. Property, plant and equipment ................................................................................................................. 200
18. Right-of-use assets .................................................................................................................................... 205
19. Investments in subsidiaries ...................................................................................................................... 207
20. Other investments...................................................................................................................................... 208
21. Contract assets .......................................................................................................................................... 209
22. Deferred costs ............................................................................................................................................ 209
23. Investment property ................................................................................................................................... 210
24. Assets held for sale ................................................................................................................................... 211
25. Inventories ................................................................................................................................................. 211
26. Trade and other receivables ..................................................................................................................... 211
27. Contract assets .......................................................................................................................................... 213
28. Deferred costs ............................................................................................................................................ 213
29. Cash and cash equivalents ....................................................................................................................... 213
30. Equity and reserves ................................................................................................................................... 214
31. Contract liabilities ...................................................................................................................................... 215
32. Provisions ................................................................................................................................................. 216
33. Other liabilities ........................................................................................................................................... 220
34. Loans and borrowings ............................................................................................................................... 220
35. Lease liabilities........................................................................................................................................... 221
36. Other financial liabilities ............................................................................................................................ 222
37. Operating liabilities .................................................................................................................................... 222
38. Contract liabilities ...................................................................................................................................... 223
39. Accrued liabilities ...................................................................................................................................... 223
40. Book and fair values .................................................................................................................................. 223
41. Contingent liabilities and contingent assets ........................................................................................... 226
42. Related party transactions ........................................................................................................................ 227
43. Auditor’s fee ............................................................................................................................................... 237
44. Categories of financial instruments ......................................................................................................... 237
45. Financial instruments and financial risk management ........................................................................... 238
46. Events after the reporting date ................................................................................................................. 243
9.3. Independent auditor’s report for the Telekom Slovenije Group and the company Telekom Slovenije
................................................................................................................................................. 245
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
156
9.1. Financial statements of the Telekom Slovenije Group and Telekom
Slovenije
The consolidated and separate statement of profit or loss
Telekom Slovenije Group
Telekom Slovenije
in EUR thousand
Note
I–XII 2023
I–XII 2022
I–XII 2023
I–XII 2022
Sales revenue
7
Other operating income
8
Cost of goods sold
9
-92,012
-86,548
-96,933
-94,836
Costs of materials and energy
9
-30,371
-22,576
-24,230
-15,788
Costs of services
9
-211,684
-208,503
-198,922
-195,762
Labour costs
10
-126,128
-117,858
-103,776
-98,446
Depreciation/amortisation
11
-164,431
-166,090
-137,869
-138,881
Other operating expenses
12
-19,403
-7,016
-13,015
-6,914
Total operating expenses
-644,029
-608,591
-574,745
-550,627
Operating profit
Finance income
13
Finance expenses
13
-18,661
-8,442
-19,217
-8,608
Profit before tax
Corporate income tax
14
-4,890
-5,020
-2,062
-2,348
Deferred tax
14
-2,899
-2,706
Net profit for the period
Earnings per share
Basic in EUR
15
Adjusted in EUR
15
Notes on pages 164 to 245 are an integral part of these consolidated financial statements.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
157
The consolidated and separate statement of other comprehensive income
Telekom Slovenije
Group
Telekom Slovenije
in EUR thousand
Note
I–XII 2023
I–XII 2022
I–XII 2023
I–XII 2022
Net profit for the period
Other comprehensive income that
may be reclassified subsequently to
the statement of profit or loss
-14
-16
Translation reserves
30
Effective part of change in fair value of
cash flow hedge
30
-19
-20
Deferred tax
14
-53
-53
Other comprehensive income that
may not be reclassified subsequently
to the statement of profit or loss
Actuarial gains and losses
30
-53
Net gains/losses in equity instruments at
fair value through other comprehensive
income
-160
-160
Change in fair value of financial
instruments through other
comprehensive income
30
-258
-257
Deferred tax
14
Other comprehensive income for the
period after tax
Total comprehensive income for the
period
Total comprehensive income for the
period belonging to:
owners of the parent company
Notes on pages 164 to 245 are an integral part of these consolidated financial statements.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
158
The consolidated and separate balance sheet
Telekom Slovenije Group
Telekom Slovenije
in EUR thousand
Note
31 Dec 2023
31 Dec 2022
31 Dec
2023
31 Dec 2022
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
22
Investments
20
Cash and cash equivalents
29
Total current assets
Total assets
EQUITY AND LIABILITIES
Called-up capital
30
Capital surplus
30
Profit reserves
30
Legal reserves
30
Reserves for own shares and interests
30
Own shares and interests
30
-4,065
-4,065
-4,065
-4,065
Statutory reserves
30
Other revenue reserves
30
Retained earnings
30
Retained earnings from previous periods
Profit or loss for the period
Fair value reserve
30
-172
-188
-172
-188
Reserves for actuarial gains/losses
30
Translation reserves
30
Total equity
Contract liabilities
31
Provisions
32
Other payables
33
Deferred liabilities
Loans and borrowings
34
Lease liabilities
35
Deferred tax liabilities
14
Total non-current liabilities
Operating liabilities
37
Income tax payable
14
Loans and borrowings
34
Lease liabilities
35
Other financial liabilities
36
Contract liabilities
38
Deferred liabilities
39
Total current liabilities
Total liabilities
Total equity and liabilities
Notes on pages 164 to 245 are an integral part of these consolidated financial statements.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
159
Consolidated Statement of changes in equity of the Telekom Slovenije Group in 2023
in EUR thousand
Called-up
capital
Capital
surplus
Revenue reserves
Net profit or loss
brought forward
Fair value
reserve for
financial
instruments
Fair value
reserve for
hedging
instruments
in net
amount
Reserves
for actuarial
deficits and
surpluses
Currency
translation
reserve
Total
Legal
reserves
Reserves
for own
shares
Own
shares
Statutory
reserves
Other
revenue
reserves
Retained
earnings
from
previous
periods
Profit or
loss for
the
period
Balance as at 1 Jan 2023
-4,065
-202
Net profit or loss for the period
Other comprehensive income for
the period
-14
-53
Total comprehensive income for
the period
-14
-53
Transfer of profit or loss from
previous period to retained
earnings
-37506
Other changes in equity
-324
-37
Changes in equity
-37,506
-37
Other
-104
-104
Balance as at 31 Dec 2023
-4,065
-172
Notes on pages 164 to 245 are an integral part of these consolidated financial statements.
For more details see Note 30 Equity and reserves.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
160
Consolidated Statement of changes in equity of the Telekom Slovenije Group in 2022
in EUR thousand
Called-up
capital
Capital
surplus
Revenue reserves
Net profit or loss
brought forward
Fair value
reserve for
financial
instruments
Fair value
reserve for
hedging
instruments
in net
amount
Reserves
for actuarial
deficits and
surpluses
Currency
translation
reserve
Total
Legal
reserves
Reserves
for own
shares
Own
shares
Statutory
reserves
Other
revenue
reserves
Retained
earnings
from
previous
periods
Profit
or loss
for the
period
Balance as at 1 Jan 2022
-3,671
-26
-40
-2139
Net profit or loss for the period
Other comprehensive income
for the period – adjusted*
-336
Total comprehensive income
for the period
-336
Payment of dividends
-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 changes in equity
-367
Changes in equity
-37,888
-367
Other
-10
-9
31 Dec 2022
-4,065
-202
Notes on pages 164 to 245 are an integral part of these consolidated financial statements.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
161
Separate statement of changes in equity of the Company Telekom Slovenije in 2023
in EUR thousand
Called-up
capital
Capital
surplus
Revenue reserves
Net profit or loss
brought forward
Fair value
reserve for
financial
instruments
Fair value
reserve for
hedging
instruments
in net
amount
Reserves
for actuarial
deficits and
surpluses
Total
Legal
reserves
Reserves
for own
shares
Own
shares
Statutory
reserves
Other
revenue
reserves
Retained
earnings
from
previous
periods
Profit or
loss for
the
period
Balance as at 1 Jan 2023
-4,065
-203
Net profit or loss for the period
Other comprehensive income for
the period
-16
Total comprehensive income for
the period
-16
Transfer of profit or loss from
previous period to retained
earnings
-20,793
Other changes in equity
-242
-37
-1
Changes in equity
-20,793
-37
-1
Other
Balance as at 31 Dec 2023
-4,065
-171
-1
Notes on pages 164 to 245 are an integral part of these consolidated financial statements.
For more details see Note 30 Equity and reserves.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
162
Separate statement of changes in equity of the Company Telekom Slovenije in 2022
in EUR thousand
Called-up
capital
Capital
surplus
Revenue reserves
Net profit or loss
brought forward
Fair value
reserve for
financial
instruments
Fair value
reserve for
hedging
instruments
in net
amount
Reserves
for actuarial
deficits and
surpluses
Total
Legal
reserves
Reserves
for own
shares
Own
shares
Statutory
reserves
Other
revenue
reserves
Retained
earnings
from
previous
periods
Profit or
loss for
the
period
Balance as at 1 Jan 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
Payment of dividends
-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 changes in equity
-359
Changes in equity
-34,371
-359
Other
-1
-1
-2
31 Dec 2022
-4,065
-203
Notes on pages 164 to 245 are an integral part of these consolidated financial statements.
The consolidated and separate cash flow statement
Telekom Slovenije Group
Telekom Slovenije
in EUR thousand
Note
I - XII 2023
I - XII 2022
I - XII 2023
I - XII 2022
Cash flows from operating activities
Net profit for the period
Adjustments for:
Depreciation
11,16.17,18
Impairment and write-offs of property,
plant and equipment, and intangible assets
Gain/loss on disposal of property, plant and equipment
-2,210
-1,150
-3,881
-1,370
Impairment and write-off of inventories
12
Net impairment of receivables and contract assets
12
Adjustment for provisions
Finance income
-1,986
-3,343
-4,101
-4,724
Finance expenses
Income tax expense
-1,018
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
-17,518
-7,176
-13,539
-6,712
Change in accrued and deferred asset items and
contract assets
-1,037
-3,232
-2,446
Change in provisions
-417
-464
Change in trade and other payables
-17,714
-25,511
Change in accrued and deferred liability items and
contract liabilities
Income tax paid
-2,300
-7,743
-1,245
-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
-171,140
-153,198
-143,518
-111,154
Disbursements from property, plant and equipment
-95,588
-96,548
-70,157
-69,923
Disbursements from intangible non-current assets
-75,352
-56,550
-69,131
-34,441
Investments in subsidiaries and associated companies
-1,000
Disbursements for loans and deposits issued
-200
-100
-4,230
-5,790
Net cash used in investing activities
-167,466
-150,795
-110,765
-91,449
Cash flows from financing activities
Proceeds from financing activities
Proceeds from borrowings
Disbursements from financing activities
-160,195
-86,231
-159,439
-87,153
Disbursements from treasury shares buyback
-394
-394
Disbursements for approval of borrowings and issue of
bonds
-60
-60
Repayment of lease liabilities – principal
-10,243
-9,158
-10,002
-8,723
Repayment of current borrowings
-1,400
Repayment of non-current borrowings
-132,527
-40,220
-132,527
-40,220
Sale of derivatives
Disbursements for interest
-17,365
-7,215
-16,850
-7,172
Dividends paid
-29,244
-29,244
Net cash used in financing activities
-60,195
-26,231
-59,439
-27,153
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 164 to 245 are an integral part of these consolidated financial statements.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
164
9.2. Notes to the consolidated financial statements of the Telekom Slovenije
Group and the separate financial statements of Telekom Slovenije
1. Reporting entity
Telekom Slovenije Group (hereinafter: Telekom Slovenije Group or Group). Subsidiaries are listed in
Note 19 Investments in subsidiaries. A detailed overview of the Group’s composition is given in the
business report herein.
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 Equity and reserves).
The attached consolidated and separate financial statements are prepared for the Telekom Slovenije
Group and the company Telekom Slovenije for 2023, with comparative statements for 2022.
2. Basis for preparation
a. Statement of conformity
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 15 March 2024.
Deloitte revizija d.o.o. audited and expressed an unmodified opinion on the 2023 financial statements.
PricewaterhouseCoopers (PwC) d.o.o. audited the 2022 financial statements and expressed an
unmodified opinion.
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 classified as held for sale at the lower of its carrying amount and fair value less costs to sell.
The methods used for measuring fair value are described in Note 4 Determination of Fair 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.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
165
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 effect cannot be defined 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 the estimated ones.
Estimates and assumptions are subject to regular reviews. 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 and 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 2023 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
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
166
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 2023, based on checking for signs of impairment, the
Group opted to assess the recoverable amount for its subsidiaries TSmedia, Tsinpo, Soline, SIOL
Zagreb, SIOL Prishtina 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.
Operating receivables
To recognize 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. 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 Trade and other
receivables and 45 Financial instruments and financial risk management.
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 taxable profit will be available in
the future, against which the deductible temporary differences can be utilised. 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 legal actions
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.
e. New accounting standards and amendments to existing ones
New and amended IFRS accounting standards applicable in the current reporting period
In the current year, the Group and the Company have applied a number of amendments to IFRS
Accounting Standards issued by the International Accounting Standards Board (IASB) and adopted by
the EU that are mandatorily effective for reporting period that begins on or after 1 January 2023.
Their adoption has not materially impacted the disclosures or the amounts reported in these financial
statements.
• Amendments to IAS 1 “Presentation of Financial Statements” – Disclosure of Accounting
Policies issued by IASB on 12 February 2021. The amendments require entities to disclose their
material accounting policies rather than their significant accounting policies and provide guidance and
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
167
examples to help preparers in deciding which accounting policies to disclose in their financial
statements.
• Amendments to IAS 8 “Accounting Policies, Changes in Accounting Estimates and Errors” –
Definition of Accounting Estimates issued by IASB on 12 February 2021. Amendments focus on
accounting estimates and provide guidance how to distinguish between accounting policies and
accounting estimates.
• Amendments to IAS 12 “Income Taxes” – Deferred Tax related to Assets and Liabilities arising
from a Single Transaction issued by IASB on 6 May 2021. According to amendments, the initial
recognition exemption does not apply to transactions in which both deductible and taxable temporary
differences arise on initial recognition that result in the recognition of equal deferred tax assets and
liabilities.
• Amendments to IAS 12 “Income Taxes” – International Tax Reform – Pillar Two Model Rules
issued by IASB on 23 May 2023. The amendments introduced a temporary exception to the accounting
for deferred taxes arising from jurisdictions implementing the global tax rules and disclosure
requirements about company’s exposure to income taxes arising from the reform, particularly before
legislation implementing the rules is in effect.
Amendments to other accounting standards are not relevant for the Group or the Company, or will not
impact the financial statements, therefore they are not disclosed.
New and revised IFRS Accounting Standards in issue and adopted by the EU but not yet effective
The Group and the Company have not adopted early any other standard, clarification or amendment
listed below that has been issued but is not yet valid.
• Amendments to IFRS 16 “Leases” – Lease Liability in a Sale and Leaseback issued by IASB on 22
September 2022 and effective for annual periods beginning on or after 1 January 2024.
Amendments to IFRS 16 require a seller-lessee to subsequently measure lease liabilities arising from a
leaseback in a way that it does not recognise any amount of the gain or loss that relates to the right of
use it retains. The new requirements do not prevent a seller-lessee from recognising in profit or loss any
gain or loss relating to the partial or full termination of a lease.
New and revised IFRS Accounting Standards in issue but not adopted by the EU
At present, IFRS as adopted by the EU do not significantly differ from IFRS adopted by the International
Accounting Standards Board (IASB) except for the following new standards and amendments to the
existing standards, which were not adopted by the EU by the date of authorisation of these financial
statements.
The Group and the Company do not expect that the adoption of the standards listed above will have a
material impact on the financial statements in future periods.
• Amendments to IAS 1 “Presentation of Financial Statements” – Classification of Liabilities as
Current or Non-Current issued by IASB on 23 January 2020 and Amendments to IAS 1 “Presentation
of Financial Statements” – Non-current Liabilities with Covenants issued by IASB on 31 October
2022. The amendments, which were issued on January 2020, provide a more general approach to the
classification of liabilities under IAS 1 based on the contractual arrangements in place at the reporting
date. Amendments issued on October 2022 clarify how conditions with which an entity must comply
within twelve months after the reporting period affect the classification of a liability and set the effective
date for both amendments to annual periods beginning on or after 1 January 2024.
• Amendments to IAS 7 “Statement of Cash Flows” and IFRS 7 “Financial Instruments:
Disclosures” – Supplier Finance Arrangements issued by IASB on 25 May 2023. The amendments
add disclosure requirements and ‘signposts’ within the existing disclosure requirements to provide
qualitative and quantitative information about supplier finance arrangements.
• Amendments to IAS 21 “The Effects of Changes in Foreign Exchange Rates” – Lack of
Exchangeability issued by IASB on 15 August 2023. Amendments contain guidance to specify when a
currency is exchangeable and how to determine the exchange rate when it is not.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
168
• IFRS 14 “Regulatory Deferral Accounts” issued by IASB on 30 January 2014. This standard is
intended to allow entities that are first-time adopters of IFRS, and that currently recognise regulatory
deferral accounts in accordance with their previous GAAP, to continue to do so upon transition to IFRS.
• Amendments to IFRS 10 “Consolidated Financial Statements” and IAS 28 “Investments in
Associates and Joint Ventures” – Sale or Contribution of Assets between an Investor and its
Associate or Joint Venture issued by IASB on 11 September 2014. The amendments address a
conflict between the requirements of IAS 28 and IFRS 10 and clarify that in a transaction involving an
associate or joint venture the extent of gain or loss recognition depends on whether the assets sold or
contributed constitute a business.
3. Summary of significant accounting policies
a. Basis of 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 2023. Financial
statements of individual Group companies have been prepared for the same reporting year as the
financial statements of the controlling company using consistent accounting policies. In the event of
inconsistencies in accounting policies, individual companies make the relevant modifications in their
financial statements, which form the basis for the consolidated financial statements.
Business Combinations
Business combinations are accounted for using the acquisition method on/as of the date when the the
controlling company obtains control over the subsidiary. The acquired assets and liabilities are
recognised in the consolidated financial statements at fair value estimated on the acquisition date. The
excess purchase consideration of the net fair value of the acquired assets is disclosed under intangible
assets as goodwill. If the excess purchase consideration is negative, it is recognised directly in the
statement of profit or loss as finance income.
Subsidiaries
Subsidiaries are entities controlled, indirectly or directly, by the Company Telekom Slovenije via its own
subsidiaries. The Company controls a subsidiary if it is exposed to or has rights to variable returns from
its involvement with the company. Control exists when the controlling company Telekom Slovenije has
the ability to affect the financial and business decisions of the company in order to benefit from its
operations.
Financial statements of subsidiaries are included in the consolidated financial statements from the date
on which such control begins. Subsidiaries are de-consolidated from the consolidated financial
statements from the moment when the control over the subsidiary by the controlling company or another
Group company ceases. If control over a subsidiary ceases during the year, the consolidated financial
statements include the results of the subsidiary up until the date on which such control over the
subsidiary still existed. Upon loss of control, all assets and liabilities of the subsidiary are derecognised
and the gain or loss due to the deconsolidation is recognised in the consolidated statement of profit or
loss. If the Group 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
Transactions in foreign currencies
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
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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
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 2023 and 2022
| 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 | 2.5 to 3.5 |
| - customer list | 3 to 5 |
| - computer software | 2 to 7 |
| - other property rights, patents, trademarks and licences | 2 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 16 Intangible assets.
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
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expected contract term. The costs of sales commissions are reduced by the value of prematurely
terminated subscriptions in the period in which the prematurely terminated subscription occurs.
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.
Companies check annually the book values of intangible assets to determine whether there is any
indication of impairment. Upon assessment of whether this indication of impairment exists, it is checked
whether significant technological changes, market changes, obsolescence or a significant decrease in
interest rates occurred. If so, 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.
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.
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Upon initial recognition, property, plant and equipment are measured at cost and reduced according to
value due to depreciation or potential impairment.
Residual values and useful lives of significant items of property, plant and equipment are reassessed on
an annual basis and if expectations differ significantly from earlier estimates, depreciation rates are
adjusted for the current and future periods. The effect of the change in estimate is described by the
Group and the Company in the notes on the accounting period in which the change in estimate occurred.
Estimated useful lives of groups of property, plant and equipment in 2023 and 2022
| 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 and overhead routing | 10 |
| - cable network – land | 20 to 25 |
| - exchange switches | 5 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.
Companies in the Group check annually the book values of property, plant and equipment to determine
whether there is any indication of impairment. When assessing whether indication of impairment exists,
the companies examine external and internal circumstances. External circumstances may significantly
change the value of assets due to the passage of time or normal use as expected, significant changes
in the technological, market or economic environment, or an increase in market interest or other market
yield that may affect the discount rate in the calculation of value in use. Internal circumstances are
obsolescence or physical damage to the assets and reduction of the expected use of the assets. If such
indicators exist, recoverable amount is ascertained.
Impairment of property, plant and equipment is recognised in the statement of profit or loss among other
operating expenses under 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
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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
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
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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 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 extraordinary circumstances (default), the contract
may also be terminated by the Group and the Company.
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.
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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, recognize the effective change in the fair value of the instrument
in other comprehensive income. In the event of positive valuation, the fair value is disclosed in the
balance sheet under financial assets, and in the event of negative valuation, it is disclosed under
financial liabilities.
Trade and other receivables
Trade receivables are amounts of receivables due from business partners from the sale of goods and
services within the ordinary course of business, which are measured upon initial recognition at
transaction price less impairment losses. They are then carried at amortised cost.
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 is not taken into
account, as it is 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, 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).
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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 2023, 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.
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
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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 subject
to depreciation. 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
Finance income and finance expenses).
The Group and the Company periodically check whether the asset meets the criteria for being classified
as held for sale. If the asset no longer meets these criteria, 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
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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 directly decreased by costs or expenses, for which they were created to cover.
Provisions for liabilities from legal claims are formed on the basis of the estimate of the litigation
outcome made by the relevant departments or external parties. The formation of provisions is assessed
individually in view of the amount of the legal claim, its subject matter, the plaintiff's assertions and the
course of each individual procedure. Due to uncertainty, actual liabilities may differ from those initially
assessed. Management's estimates may change if new information is received. Amendments to these
estimates can have a significant impact on the business results. The amount of provisions for liabilities
from legal claims is disclosed in Note 32 Provisions.
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.
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. Operating liabilities
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.
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178
o. Sales revenue
The largest portion of sales revenue falls within the scope of IFRS 15 “Revenue from Contracts with
Customers”. Revenue is recognised solely on the basis of the contract entered into with the customer.
It is recognised when goods and services are transferred to the customer in the amount that reflects the
compensation expected in exchange for these sold goods and services.
Each promised good or service is treated as a separate performance obligation if it is distinct. It is distinct
when the customer can benefit from said good or service. Performance obligation is a promise to provide
goods or services to the customer. The Group and the Company have identified the following
performance obligations:
– service,
– goods.
In the case of contracts with customers with a term of 12 or 24 months that include several performance
obligations (e.g. partially subsidised mobile phone or other communication device, bundled with the
service), the price of the whole transaction is allocated to individual performance obligations on the basis
of relative stand-alone selling prices of the device and service. Revenue from the sale of goods is
recognised immediately, while revenue from services is recognised over the contractual term. In this
context, 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.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
179
Revenue from wholesale market comprises broad-band access, stream broad-band access, network
interconnection, lease of network, national tracking, and foreign inter-operator services.
Revenue from network interconnection is recognised based on the estimated value expected in view of
the traffic performed in the previous month. Monthly differences between estimated and actual revenue
arise mostly as a result of the tolerance allowed with data about traffic, and the price changes. The
tolerance allowed differs from one contract to another, amounting to a maximum of 2% of the contractual
value. These differences are included in profit or loss when the actual balance of revenue is established.
Revenue is recognised on the gross basis, as the Group provides services by means of own network
and equipment, based on contractually defined prices. Revenue is recognised in the period in which the
services are rendered.
Other revenue and other merchandise of the Telekom Slovenije Group include revenue generated
through network construction and maintenance by GVO, business IT solutions provided by Avtenta, salt
and related products of the company Soline, and multi-media contents of TSmedia.
With services where performance obligations are met gradually (e.g. telecommunication network
construction and maintenance), the Group recognises revenue on a monthly basis in the amount that
directly corresponds to the value of the part of the company’s obligation fulfilled up to that moment. The
Group measures gradual progress towards complete fulfilment of performance obligation by applying
the output method. The Group has contracts in place under which the interim situation in terms of the
work done is established on a monthly basis. Based on the completed situations confirmed by the
customer, a monthly invoice is issued and revenue is recognised.
Other revenue and other merchandise of Telekom Slovenije include costs of income from rendering
support services for subsidiaries, lease of premises and equipment, tourism, other non-
telecommunication services, and income from the sale of material and other merchandise.
In all previously mentioned cases, the Group and the Company observe the policy of concurrent
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.
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. 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
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
180
payment, the buyer is rewarded with 1 point, which is worth 1 cent (100 points = 1 euro). The points are
redeemable 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 - 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. Revenue from leases
Revenue from leases in the Group and in the Company is mainly related to the rental of networking
equipment that meets the criteria for leases under IFRS 16 and relates mainly to co-locations, rental of
premises and base stations. Revenue from leases is recognized on a straight-line basis over the term
of the contracts and is disclosed under the item Revenue from sales.
q. 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.
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 13 Finance
income and finance expenses.
r. Corporate 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.
s. Cash flow statement
The statement of cash flows is compiled using the indirect method based on items of the balance sheet
as at 31 December 2023 and 31 December 2022, statement or profit or loss for 2023, and additional
information necessary to make adjustments of cash inflows and outflows.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
181
4. Fair value measurement
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 Book and fair values.
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 Other
investments.
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
104
As at the reporting date, the Telekom Slovenije Group comprises the controlling company Telekom
Slovenije and the following subsidiaries:
104
GRI GS 102-45.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
182
SUBSIDIARY COMPANIES
| Share in | Share in | |||||||||||
| Tax rate | Share in | voting | voting | Book value of equity | Profit or loss in EUR | |||||||
| Title | Address | Country | Activity | of | equity in | rights in | rights in | in EUR thousand | thousand | |||
| income | % | % | % | |||||||||
| tax | I–XII 2023 | I–XII | I–XII | I–XII | I–XII | I–XII | ||||||
| 2022 | 2023 | 2022 | 2023 | 2022 | ||||||||
| SLOVENIA | ||||||||||||
| GVO, gradnja in | construction, maintenance | |||||||||||
| 1 | vzdrževanje | Cigaletova 10, Ljubljana | Slovenia | works and management of | 19% | 100% | 100% | 100% | 29,433 | 28,119 | 1,381 | 3,090 |
| telekomunikacijskih | telecommunications | |||||||||||
| omrežij, d.o.o. | network | |||||||||||
| Avtenta, napredne | ||||||||||||
| 2 | poslovne rešitve, | Stegne 19, Ljubljana | Slovenia | system integrator | 19% | 100% | 100% | 100% | 3,145 | 2,917 | 293 | 431 |
| d.o.o. | ||||||||||||
| TSmedia, medijske | multimedia and internet | |||||||||||
| 3 | vsebine in storitve, | Cigaletova 15, Ljubljana | Slovenia | content | 19% | 100% | 100% | 100% | 347 | 298 | 72 | -117 |
| d.o.o. | ||||||||||||
| production of salt and | ||||||||||||
| 4 | SOLINE Pridelava | Seča 115, Portorož | Slovenia | preservation and | 19% | 100% | 100% | 100% | 412 | 896 | -465 | -1,355 |
| soli, d.o.o. | management of a | |||||||||||
| landscape park | ||||||||||||
| 5 | TSinpo, d.o.o. | Litostrojska cesta 58 A | Slovenia | paper and cardboard tubes | 19% | 100% | 100% | 100% | 128 | 125 | 30 | 34 |
| 6 | Optic-Tel, d.o.o. | Cigaletova 10, Ljubljana | Slovenia | telecommunication services | 19% | 100% | 100% | 100% | 6,261 | 5,989 | 272 | 707 |
| 7 | Infratel, d.o.o. | Cigaletova 10, Ljubljana | Slovenia | telecommunication services | 19% | 100% | 100% | 100% | 5,130 | 5,122 | 8 | 127 |
| INSTITUTION | ||||||||||||
| 8 | USTANOVA SRČNI | Cigaletova 10, Ljubljana | Slovenia | humanitarian organisation | 19% | 100% | 100% | 100% | 21 | 21 | 0 | 4 |
| SKLAD | ||||||||||||
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
183
SUBSIDIARY COMPANIES
| Share in | Share in | Book value of | ||||||||||
| Tax rate | Share in | voting | voting | equity in EUR | Profit or loss in | |||||||
| Title | Address | Country | Activity | of | equity in | rights in | rights in | thousand | EUR thousand | |||
| income | % | % | % | |||||||||
| tax | I–XII 2023 | I–XII | I–XII | I–XII | I–XII | I–XII | ||||||
| 2022 | 2023 | 2022 | 2023 | 2022 | ||||||||
| ABROAD | ||||||||||||
| IPKO | Lagija Ulpiana, Rruga | |||||||||||
| 9 | Telecommunications | "Zija Shemsiu", nr 34, | Kosovo | telecommunication services | 10% | 100% | 100% | 100% | 51,669 | 29,784 | 21,886 | 14,922 |
| LLC | Prishtina | |||||||||||
| 10 | SIOL, d.o.o., Zagreb | Margaretska 3, Zagreb | Croatia | telecommunication services | 20% | 100% | 100% | 100% | 849 | 818 | 34 | -30 |
| 11 | SiOL d.o.o., | Fra Anđela Zvizdovića | Bosnia and | telecommunication services | 10% | 100% | 100% | 100% | 2,280 | 2,041 | 239 | 295 |
| Sarajevo | 1, Sarajevo | Herzegovina | ||||||||||
| SIOL, d.o.o., | Džordža Vašingtona | |||||||||||
| 12 | Podgorica | 108/36A, The Capital | Montenegro | telecommunication services | 9% | 100% | 100% | 100% | 2,736 | 2,731 | 116 | 111 |
| Plaza, Podgorica | ||||||||||||
| Str. Naum Naumovski | Republic of | |||||||||||
| 13 | SIOL, d.o.o., Skopje | borce no.50/2-12, | North | telecommunication services | 10% | 100% | 100% | 100% | 1,602 | 1,521 | 86 | 76 |
| Skopje - Centar | Macedonia | |||||||||||
| SIOL DOO | Dvadesetsedmog Marta | |||||||||||
| 14 | BEOGRAD- | 11, Beograd Palilula | Serbia | telecommunication services | 15% | 100% | 100% | 100% | 486 | 467 | 13 | 9 |
| PALILULA | ||||||||||||
| GVO | building and maintenance | |||||||||||
| 15 | Telecommunikation | Daimlerstr. 3, Stadtlohn, | Germany | works on | 15% | 100% | 100% | 100% | 0 | 4 | 0 | -22 |
| GmbH* | telecommunication | |||||||||||
| networks | ||||||||||||
| SIOL, d.o.o. | Pejton, Str. Mujo | |||||||||||
| 16 | Prishtina | Ulqinaku 5/1, 10000 | Kosovo | telecommunication services | 10% | 100% | 100% | 100% | 486 | 374 | 111 | 110 |
| Priština | ||||||||||||
* GVO Telecommunikation GmbH is included in the statements until September 2023.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
184
Changes in the composition of the Group
In March 2022, GVO started the process of liquidating subsidiary GVO GmbH in Germany. The
liquidation procedure ended on 25 September 2023 with the deletion of the company from the
companies register in Germany. As of that date, the company was also excluded from the consolidated
statements of the Telekom Slovenije Group for the period presented. The exclusion of the company has
no significant impact on the consolidated statements of the Telekom Slovenije Group.
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, and SIOL Prishtina. 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 Sales revenue.
Segments’ accounting policies equal those applied by the Group, as outlined in Section 3.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
185
Segment reporting
| in EUR thousand | Slovenia | Other countries | Eliminations and | Total | ||||
| adjustments* | ||||||||
| I–XII | I–XII | I–XII | I–XII | I–XII | I–XII | I–XII | I–XII | |
| 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |
| Sales revenue | 609,832 | 578,200 | 85,081 | 73,921 | 0 | 0 | 694,913 | 652,121 |
| Inter-segment sales | 89,336 | 92,585 | 9,540 | 9,050 | -98,876 | -101,635 | 0 | 0 |
| Total segment income | 699,168 | 670,785 | 94,621 | 82,971 | -98,876 | -101,635 | 694,913 | 652,121 |
| Other operating income | 11,806 | 4,886 | 1,448 | 1,946 | 0 | 0 | 13,254 | 6,832 |
| Costs of goods and material | -88,948 | -84,014 | -3,064 | -2,534 | 0 | 0 | -92,012 | -86,548 |
| sold | ||||||||
| Costs of materials and energy | -28,108 | -20,349 | -2,263 | -2,227 | 0 | 0 | -30,371 | -22,576 |
| Costs of services | -189,285 | -187,881 | -22,399 | -20,622 | 0 | 0 | -211,684 | -208,503 |
| Labour costs | -119,154 | -111,182 | -6,974 | -6,676 | 0 | 0 | -126,128 | -117,858 |
| Depreciation/amortisation | -139,287 | -140,061 | -25,144 | -26,029 | 0 | 0 | -164,431 | -166,090 |
| Other operating expenses | -17,786 | -6,147 | -1,617 | -869 | 0 | 0 | -19,403 | -7,016 |
| Total operating expenses | -582,568 | -549,634 | -61,461 | -58,957 | 0 | 0 | -644,029 | -608,591 |
| Operating profit per segment | 128,406 | 126,037 | 34,608 | 25,960 | -98,876 | -101,635 | 64,138 | 50,362 |
| Finance income | 2,015 | 3,505 | ||||||
| Finance expenses | -18,661 | -8,442 | ||||||
| Profit before tax | 47,492 | 45,425 | ||||||
| Corporate income tax | -4,890 | -5,020 | ||||||
| Deferred tax | 4,463 | -2,899 | ||||||
| Net profit for the period | 47,065 | 37,506 | ||||||
| Other data by segment | Slovenia | Other countries | Eliminations and | Total | ||||
| adjustments* | ||||||||
| 31 Dec 2023 | 31 Dec 2022 | 31 Dec | 31 Dec | 31 Dec | 31 Dec | 31 Dec 2023 | 31 Dec 2022 | |
| 2023 | 2022 | 2023 | 2022 | |||||
| Segment assets | 1,350,732 | 1,314,368 | 135,536 | 138,163 | -168,402 | -177,193 | 1,317,866 | 1,275,338 |
| Segment liabilities | 675,667 | 664,662 | 75,429 | 100,423 | -91,868 | -101,424 | 659,228 | 663,661 |
* The amount of mutual relations between companies excluded from the consolidated financial statements.
EUR 84,975 thousand of income from other countries, which as at 31 December stands at EUR 85,081
thousand, refers to Kosovo, where the Group has two subsidiaries.
The segment assets referring to other countries, which total EUR 135,536 thousand as at 31 December
2023, stand at EUR 121,176 thousand for the state of Kosovo.
Segment income
| Slovenia | Other countries | Total | ||||
| in EUR thousand | I–XII | I–XII | I–XII | I–XII | I–XII | I–XII |
| 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |
| Mobile services on end-customer market | 214,335 | 206,773 | 54,965 | 48,123 | 269,300 | 254,896 |
| Fixed-line telephone services on end-customer market | 192,624 | 190,679 | 21,418 | 21,056 | 214,042 | 211,735 |
| Additional services | 5,166 | 4,310 | 0 | 0 | 5,166 | 4,310 |
| Wholesale market | 165,495 | 149,837 | 8,698 | 4,742 | 174,193 | 154,579 |
| Other revenue and merchandise | 32,212 | 26,601 | 0 | 0 | 32,212 | 26,601 |
| Total sales revenue | 609,832 | 578,200 | 85,081 | 73,921 | 694,913 | 652,121 |
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
186
| in EUR thousand | Slovenia | Other countries | Total | |||
| I–XII 2023 | I–XII 2022 | I–XII 2023 | I–XII 2022 | I–XII 2023 | I–XII 2022 | |
| Revenue from sale of services | 515,560 | 488,156 | 82,025 | 71,542 | 597,585 | 559,698 |
| Revenue from the sale of goods | 94,272 | 90,044 | 3,056 | 2,379 | 97,328 | 92,423 |
| Total sales revenue | 609,832 | 578,200 | 85,081 | 73,921 | 694,913 | 652,121 |
7. Sales revenue
Breakdown of sales revenue by service groups
| Telekom Slovenije | Telekom Slovenije | |||
| Group | ||||
| in EUR thousand | I–XII 2023 | I–XII 2022 | I–XII 2023 | I–XII 2022 |
| Mobile services on end-customer market | 269,300 | 254,896 | 214,524 | 207,043 |
| Fixed-line telephone services on end-customer market | 214,042 | 211,735 | 191,250 | 189,890 |
| Additional services | 5,166 | 4,310 | 5,327 | 4,322 |
| Wholesale market | 174,193 | 154,579 | 168,511 | 152,344 |
| Other revenue and merchandise | 32,212 | 26,601 | 22,057 | 22,287 |
| Total sales revenue | 694,913 | 652,121 | 601,669 | 575,886 |
| Telekom Slovenije Group | Telekom Slovenije | |||
| in EUR thousand | I–XII 2023 | I–XII 2022 | I–XII 2023 | I–XII 2022 |
| Revenue from sale of services | 597,585 | 559,697 | 503,186 | 480,176 |
| Revenue from the sale of goods | 97,328 | 92,424 | 98,483 | 95,710 |
| Total sales revenue | 694,913 | 652,121 | 601,669 | 575,886 |
Revenue from sales in the Telekom Slovenije Group amounted to EUR 694.9 million in 2023, which is
EUR 42,792 more than in 2022.
Revenue from contracts with customers
The largest portion of the revenue falls within the scope of IFRS 15 “Revenue from Contracts with
Customers”. The products and services of the Telekom Slovenije Group and Company are offered to
customers based on contracts that cover both services and contracts which combine equipment for
accessing services and/or other service offerings. The revenue is recognized in the net amount, without
VAT and other taxes collected on behalf of the state.
The management expects that 73.7% of the transaction price allocated to unfulfilled obligations arising
from 12- or 24-month customer subscriptions as at 31 December 2023 will be recognised as revenue in
the amount of EUR 75,739 thousand in the next reporting period. The remaining 26.2% or EUR 26,912
thousand will be recognized in the financial year 2025, and 0.02% or EUR 182 thousand will be
recognized in the financial year 2026.
In 2022, 77% or EUR of 64,271 thousand of the transaction price allocated to unfulfilled obligations
arising from 12- or 24-month customer subscriptions was recognized as revenue in the following
reporting period. The remaining 23%, i.e. EUR 19,360 thousand, will be recognised in financial year
2024.
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
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
187
and chose not to disclose information about the unsatisfied performance obligations.
In 2023, the Group and the Company recognised EUR 5,262 thousand in revenue (in 2022: EUR 4,211
thousand), which was included at the start of the period under the balance of liabilities from contracts
with customers.
• In the mobile services on end-customer market, revenue has increased mostly due to the higher
number of subscribers and higher revenue from mobile merchandise in Telekom Slovenije.
Compared to the same period last year, IPKO's revenue also increased, mainly due to more users.
• In the fixed-line telephone services on end-customer market, revenue is higher mainly due to
improved sales of IT and broadband services in Telekom Slovenije, despite lower revenue from
classic voice telephony, which is a result of a decline in traditional connections.
• Additional sources of revenue include revenue from financial services, eHealth, and insurance. All
revenues in 2023 record growth.
• We have also perceived growth of wholesale revenue.
• Other revenue and merchandise are higher compared to the values in the same period in 2022,
which is due to higher revenue of Slovenian subsidiaries on the market and higher revenue from e-
commerce in Telekom Slovenije.
Revenue from leases
The Telekom Slovenije Group generated EUR 13,130 thousand of revenue from leases in 2023 and
EUR 10,659 thousand in 2022.
The Company Telekom Slovenije generated EUR 14,220 thousand of revenue from leases in 2023 and
EUR 11,673 thousand in 2022.
Non-discounted leases received in the period:
| in EUR thousand | Telekom Slovenije Group | Telekom Slovenije | ||
| Maturity | 2023 | 2022 | 2023 | 2022 |
| - Up to 1 year | 7,510 | 7,623 | 8,613 | 8,529 |
| - 1 to 2 years | 7,385 | 7,460 | 8,488 | 8,366 |
| - 2 to 3 years | 6,792 | 7,336 | 7,896 | 7,716 |
| - 3 to 4 years | 10,794 | 6,746 | 11,897 | 7,126 |
| - 4 to 5 years | 5,934 | 10,709 | 7,037 | 11,144 |
| - Over 5 years | 26,482 | 31,642 | 125,387 | 33,319 |
8. Other operating income
| Telekom Slovenije | Telekom Slovenije | |||
| Group | ||||
| in EUR thousand | I–XII | I–XII | I–XII | I–XII 2022 |
| 2023 | 2022 | 2023 | ||
| Government grants and other aids | 6,492 | 1,634 | 4,105 | 720 |
| Gains on disposal of property, plant and equipment | 2,927 | 1,150 | 3,882 | 1,331 |
| Revaluation operating income | 4 | 20 | 0 | 2 |
| Revenue from write-off of liabilities from contracts with customers | 636 | 29 | 43 | 29 |
| Revenue from humanitarian foundation | 93 | 54 | 0 | 0 |
| Other revenue | 3,102 | 3,945 | 1,598 | 1,143 |
| Total other operating income | 13,254 | 6,832 | 9,628 | 3,225 |
Government grants and other aids mainly include state aid measures for mitigating the energy crisis. To
this end, the state of Slovenia has adopted the Act Governing Aid to Businesses to Mitigate Impact of
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
188
Energy Crisis (ZPGOPEK), which also provides for a temporary aid measure for the economy, which
enables beneficiaries to subsidize increased energy costs in 2023.
In the Telekom Slovenije Group, the companies Telekom Slovenije and GVO recognized income from
state aid in the period from January to December 2023 in accordance with ZPGOPEK:
| Company | Total income during the period |
| in EUR thousand | I–XII 2023 |
| Telekom Slovenije | 3,572 |
| GVO | 60 |
| Total | 3,632 |
The gains on disposal of property, plant and equipment in Telekom Slovenije mainly refer to the sale of
the network to GVO in the amount of EUR 1,163 thousand. The Group's profit is mainly related to the
sale of equipment to clients.
Other income relates mainly to received compensations, income from payment reminders, received
court-related expenses and other expenses.
9. Cost of goods sold, costs of materials, energy and services
Cost of merchandise 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 2023, the cost
of goods sold of the Telekom Slovenije Group and the company Telekom Slovenije totalled EUR 92,012
thousand (in 2022: EUR 86,548 thousand) and EUR 96,933 thousand (in 2022: EUR 94,836 thousand).
Costs of materials and energy
| Telekom Slovenije Group | Telekom Slovenije | |||
| in EUR thousand | I–XII 2023 | I–XII 2022 | I–XII 2023 | I–XII 2022 |
| Costs of material | 4,502 | 5,251 | 1,593 | 1,536 |
| Costs of energy | 25,869 | 17,325 | 22,637 | 14,252 |
| Total costs of materials and energy | 30,371 | 22,576 | 24,230 | 15,788 |
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.
Costs of services
| Telekom Slovenije Group | Telekom Slovenije | |||
| in EUR thousand | I–XII 2023 | I–XII 2022 | I–XII 2023 | I–XII 2022 |
| Telecommunications services | 110,469 | 107,783 | 108,288 | 106,200 |
| Costs of leased lines, networks and platforms | 5,271 | 4,942 | 8,560 | 7,783 |
| Multimedia contents | 10,736 | 10,484 | 10,013 | 9,849 |
| Costs of subcontractors | 25,366 | 26,671 | 19,062 | 19,794 |
| Maintenance of property, plant and equipment | 20,256 | 20,225 | 20,773 | 20,836 |
| Other services | 39,586 | 38,398 | 32,226 | 31,300 |
| Total costs of services | 211,684 | 208,503 | 198,922 | 195,762 |
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
189
The Group’s costs of services in 2023 are higher by EUR 3,181 thousand compared to 2021. In 2023,
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 higher.
The costs of services at the Company Telekom Slovenije are EUR 3,160 thousand higher in 2023
compared to the previous year, mainly the costs of telecommunications and multimedia services. The
costs of leased lines, networks and platforms are also slightly higher, while the costs of maintenance of
property, plant and equipment are somewhat lower.
Costs of other services mainly comprise advertising and sponsorship costs in the amount of EUR 8,009
thousand (in 2022: EUR 8,427 thousand), costs of intellectual and personal services in the amount of
EUR 6,517 thousand (in 2022: EUR 6,485 thousand), and insurance premiums in the amount of EUR
3,407 thousand (in 2022: EUR 3,301 thousand). Costs of research and development amounted to EUR
16 thousand in 2023 (2022: EUR 4 thousand).
10. Labour costs
| Telekom | ||||
| Slovenije | Telekom Slovenije | |||
| Group | ||||
| in EUR thousand | I–XII 2023 | I–XII 2022 | I–XII 2023 | I–XII 2022 |
| Salaries and compensations | 106,701 | 98,470 | 81,493 | 75,826 |
| Social security contributions | 20,497 | 19,555 | 16,312 | 15,327 |
| - of which pension insurance contributions | 13,073 | 12,609 | 10,332 | 9,675 |
| Other labour costs | 14,741 | 13,826 | 10,688 | 10,309 |
| Provisions for anniversary bonuses | 242 | 697 | 175 | 558 |
| Provisions for termination benefits | 767 | 1,541 | 253 | 1,121 |
| - of which provisions for restructuring | 450 | 1,157 | 0 | 792 |
| Capitalised own products and services | -16,820 | -16,231 | -5,145 | -4,695 |
| Total labour costs | 126,128 | 117,858 | 103,776 | 98,446 |
In the Telekom Slovenije Group, of the total capitalised own products and services in the amount of
EUR 18,694 thousand (in 2022: EUR 18,489 thousand), EUR 16,820 thousand were disclosed under
labour costs (in 2022: EUR 16,231 thousand). The rest is disclosed under Other operating expenses
(Note 13 Finance income and finance expenses). Services rendered for the needs of the Group are
capitalised among intangible assets and property, plant and equipment (Notes 16 Intangible assets and
17 Property, plant and equipment).
In 2023, the average number of employees by hours worked in the Telekom Slovenije Group was 3,156
(in 2022: 3,158 employees).
In the company Telekom Slovenije, of the total capitalised own products and services in the amount
of EUR 5,933 thousand (in 2022: EUR 5,515 thousand), EUR 5,145 thousand were disclosed under
labour costs (in 2022: EUR 4,695 thousand). The rest is disclosed under Other operating expenses
(Note 13 Finance income and finance expenses). Services rendered for the needs of the Group are
capitalised among intangible assets and property, plant and equipment (Notes 16 Intangible assets and
17 Property, plant and equipment).
In 2023, the average number of employees by hours worked in the company Telekom Slovenije was
2,043 (in 2022: 2,033 employees).
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190
Employee structure by level of education
| Telekom Slovenije Group | Telekom Slovenije | |||
| Level/ Number of employees | 31 Dec 2023 | 31 Dec 2022 | 31 Dec 2023 | 31 Dec 2022 |
| Level I–IV | 273 | 281 | 95 | 99 |
| Level V | 933 | 947 | 666 | 684 |
| Level VI | 667 | 664 | 380 | 384 |
| Level VII | 1,208 | 1,188 | 835 | 824 |
| Level VIII | 172 | 182 | 107 | 112 |
| Total | 3,253 | 3,262 | 2,083 | 2,103 |
11. Depreciation/Amortisation
| Telekom Slovenije | Telekom Slovenije | |||
| Group | ||||
| in EUR thousand | I–XII 2023 | I–XII 2022 | I–XII 2023 | I–XII 2022 |
| Amortisation of intangible assets | 71,751 | 72,357 | 57,953 | 59,477 |
| Depreciation of property, plant and equipment | 79,735 | 80,861 | 67,624 | 67,283 |
| Amortisation of right-of-use assets | 12,807 | 12,728 | 12,149 | 11,968 |
| Depreciation of investment property | 138 | 147 | 143 | 153 |
| Depreciation from lease modifications | 0 | -3 | 0 | 0 |
| 164,431 | 166,090 | 137,869 | 138,881 | |
Amortisation/depreciation is disclosed in more detail in Chapters 16, 17, 18, and 23.
12. Other operating expenses
| Telekom Slovenije Group | Telekom Slovenije | |||
| in EUR thousand | I–XII 2023 | I–XII 2022 | I–XII 2023 | I–XII 2022 |
| Provisions | 1,588 | -20 | 1,640 | 0 |
| Loss on disposal of intangible assets and | 717 | 760 | 710 | 758 |
| property, plant and equipment | ||||
| Impairment and write-off of inventories | 902 | 1,380 | 852 | 1,266 |
| Impairment of trade and other receivables | 4,701 | 2,545 | 3,739 | 1,968 |
| Adjustment and write-off of contract assets | 657 | 617 | 655 | 609 |
| Impairment of intangible assets and | 8,736 | 953 | 2,910 | 189 |
| property, plant and equipment | ||||
| Impairment of leased (ROU) assets | 204 | 35 | 49 | 24 |
| Capitalised own products and services | -1,874 | -2,258 | -788 | -820 |
| Other humanitarian expenditure – Srčni | 91 | 62 | 0 | 0 |
| sklad | ||||
| Other expenses | 3,681 | 2,942 | 3,248 | 2,920 |
| Total other operating expenses | 19,403 | 7,016 | 13,015 | 6,914 |
Expenditure for provisions increased in 2023, due to the creation of new provisions for lawsuits. For
more details, please see Note 32 Provisions.
In the Group, expenses arising from impairments of intangible and tangible assets increased, which is
mostly related to impairments due to floods. At the beginning of August, a part of Slovenia was struck
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
191
by catastrophic floods. The cable infrastructure in the affected areas was flooded, damaged or broken,
both at the level of the backbone network and the NGA part of the network. The damage occurred in
Telekom Slovenije's network and the newly built OŠO5 network owned by GVO. Some functional
locations were also completely destroyed or flooded.
The Group recognized EUR 5,560 thousand of expenses arising from this – EUR 1,324 thousand in
Telekom Slovenije and EUR 4,236 thousand in GVO.
Other expenses mostly relate to the cost of compensation for the use of land.
13. Finance income and expenses
| Telekom Slovenije Group | Telekom Slovenije | |||
| in EUR thousand | I–XII 2023 | I–XII 2022 | I–XII 2023 | I–XII 2022 |
| Income from dividends | 166 | 240 | 272 | 1,185 |
| interest income | 1,720 | 1,261 | 5,104 | 2,860 |
| Net exchange gains | 0 | 0 | 12 | 11 |
| Revenue from write-off of liabilities for right-of-use | 114 | 62 | 112 | 62 |
| assets | ||||
| Other finance income | 15 | 1,942 | 11 | 1,853 |
| Total finance income | 2,015 | 3,505 | 5,511 | 5,971 |
| Interest expenses | 14,445 | 5,431 | 14,436 | 5,427 |
| Foreign exchange net losses | 2 | 384 | 0 | 416 |
| Impairments and write-offs of investments | 0 | 0 | 1,800 | 556 |
| Interest expenses from lease liabilities | 2,829 | 2,122 | 2,313 | 2,072 |
| Other finance expenses | 1,385 | 505 | 668 | 137 |
| Total finance expenses | 18,661 | 8,442 | 19,217 | 8,608 |
| Net cash | -16,646 | -4,937 | -13,706 | -2,637 |
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 for 2023 include the effects of impairment of
investments in subsidiaries TSmedia, Soline and SIOL Zagreb. Based on the valuation prepared by
certified business appraisers, in 2023 the Company impaired the financial investment in the subsidiary
TSmedia in the amount of EUR 1,290 thousand, the investment in the subsidiary Soline in the amount
of EUR 421 thousand and the investment in the subsidiary company SIOL Zagreb in the amount of EUR
89 thousand. Therefore, the Company Telekom Slovenije recognized finance expenses (Impairment and
write-offs of investments). The investment in the subsidiary TSmedia was impaired in 2022 as well, in
the amount of EUR 300 thousand, and the investment in the subsidiary Soline was also impaired in the
amount of EUR 256 thousand. Please see more in Note 19 Investments in subsidiaries.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
192
14. Income tax, deferred tax assets and tax liabilities
| Telekom Slovenije Group | Telekom Slovenije | |||
| in EUR thousand | I–XII 2023 | I–XII 2022 | I–XII 2023 | I–XII 2022 |
| Current tax payable | -4,890 | -5,020 | -2,062 | -2,349 |
| Deferred tax assets/ liabilities | 4,463 | -2,899 | 3,080 | -2,705 |
| Other taxes not disclosed under other items | 0 | 0 | 0 | 0 |
| Total tax | -427 | -7,919 | 1,018 | -5,054 |
Reconciliation of the actual and accounted for expenses for tax with deferred tax considering the
effective tax rate
| Telekom Slovenije Group | Telekom Slovenije | |||
| in EUR thousand | 2023 | 2022 | 2023 | 2022 |
| Profit/loss before tax | 47,492 | 45,425 | 22,846 | 25,847 |
| Income tax using the prescribed tax rate | -7,178 | -7,645 | -4,341 | -4,911 |
| Tax-free dividends received | 30 | 43 | 49 | 214 |
| Tax relief used in the current period | 956 | 924 | 737 | 683 |
| Reversal of tax relief used in previous periods | -1 | -22 | 0 | -21 |
| Change in tax rate | 5,748 | 0 | 5,700 | 0 |
| Non-deductible expenses | -2,237 | -1,919 | -2,029 | 0 |
| Deductible expenses/revenues that were non-deductible | 948 | 748 | 906 | -1,764 |
| in previous years | ||||
| Tax loss | 1,303 | -203 | -4 | 745 |
| Unused reliefs | -4 | 0 | 0 | 0 |
| Other items (corrections, withholding tax, etc.) | 8 | 155 | 0 | 0 |
| Total tax | -427 | -7,919 | 1,018 | -5,054 |
| Effective tax rate | 0.9% | 17.4% | 0.0% | 19.6% |
The tax loss of the Telekom Slovenije Group as at 31 December 2023 stood at EUR 107,963 thousand
(31 December 2022: EUR 107,530 thousand).
The tax loss of the company Telekom Slovenije as at 31 December 2023 stood at EUR 91,967
thousand (31 December 2022: EUR 91,967 thousand).
The unused tax reliefs of the Group stand at EUR 74,620 thousand for 2023, and at EUR 72,489
thousand for 2022. The unused tax reliefs of the company Telekom Slovenije as at 31 December 2023
stood at EUR 73,666 thousand (31 December 2022: EUR 71,697 thousand).
Deferred tax assets and liabilities are calculated based on 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 (2022: 19%). In the 2024–2028
period, corporate income will be taxed at a 22% tax rate. Tax rates in other companies are defined in
the table of subsidiaries in Note 5 Composition of the Telekom Slovenije Group.
On 31 December 2023, the Group and the Company recalculated deferred tax assets with the tax rate
that will apply in the period 2024-2025. The impact on net profit due to the aforementioned recalculation
amounts to EUR 5,748 thousand at the Group and EUR 5,700 thousand at Telekom Slovenije.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
193
Deferred tax assets
| Telekom Slovenije Group | Telekom Slovenije | |||||||
| Through | Through | Through | Through | |||||
| statement | com- | statement | com- | |||||
| in EUR thousand | 2023 | 2022 | of profit or | prehensi |
2023 | 2022 | of profit or | prehensive |
| loss | ve income |
loss | income | |||||
| Intangible assets, and property, pla nt | 24,390 | 21,251 | 3,139 | 24,352 | 21,243 | 3,109 | ||
| and equipment | ||||||||
| Investments | 399 | 640 | -294 | 53 | 399 | 640 | -294 | 53 |
| Operating receivables | 3,691 | 2,732 | 959 | 3,550 | 2,607 | 943 | ||
| Inventories | 0 | 0 | 0 | 0 | 0 | 0 | ||
| Tax loss and unused tax reliefs | 13,430 | 14,376 | -946 | 13,430 | 14,376 | -946 | ||
| Provisions | 293 | 325 | -32 | 117 | 191 | -74 | ||
| Deferred tax assets | 42,203 | 39,324 | 2,826 | 53 | 41,848 | 39,057 | 2,738 | 53 |
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 2023, the Group and the Company have EUR 13,430 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 2,777 thousand. Deferred tax assets from investment incentives for 2023 were partially
formed.
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 approved
for the 2024–2028 period.
In tax planning, the Group and the Company prepared the plan of using tax deductions in the next five
year period, stating that the formed deferred tax assets from investment incentives will be fully used in
the planned period.
Deferred tax liabilities
| Telekom Slovenije Group | Telekom Slovenije | |||||||
| Through | Through | Through | Through | |||||
| in EUR thousand | 2023 | 2022 | statement | com- | 2023 | 2022 | statement | com- |
| of profit or | prehensive | of profit or | prehensive | |||||
| loss | income | loss | income | |||||
| Intangible assets, | ||||||||
| and property, plant | 304 | 1,600 | -1296 | 0 | 0 | 0 | 0 | 0 |
| and equipment | ||||||||
| Investments | 0 | 293 | 0 | -293 | 0 | 293 | 0 | -293 |
| Deferred tax | 304 | 1,893 | -1296 | -293 | 0 | 293 | 0 | -293 |
| assets | ||||||||
Changes in deferred tax assets
| in EUR thousand | Telekom Slovenije |
Telekom Slovenije |
| Group | ||
| Balance as at 1 January 2022 | 42,012 | 41,761 |
| Utilisation | -8374 | -8351 |
| Reversed | -922 | -789 |
| Creation | 6,608 | 6,436 |
| Balance as at 31 December 2022 | 39,324 | 39,057 |
| Utilisation | -8487 | -8427 |
| Reversed | -12535 | -12429 |
| Creation | 23,901 | 23,647 |
| Balance as at 31 January 2023 | 42,203 | 41,848 |
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
194
Changes in deferred tax liabilities
| in EUR thousand | Telekom Slovenije | Telekom Slovenije |
| Group | ||
| Balance as at 1 January 2022 | 1,710 | 321 |
| Reversed | -194 | -194 |
| Creation | 377 | 166 |
| Balance as at 31 December 2022 | 1,893 | 293 |
| Reversed | -1,780 | -476 |
| Creation | 191 | 183 |
| Balance as at 31 December 2023 | 304 | 0 |
In Telekom Slovenije, the amount of deductible temporary differences, unused tax losses and unused
investment incentives for which deferred tax assets were not formed, is:
- as at 31 December 2022: EUR 88,002 thousand, and deferred tax assets would be EUR 16,720
thousand (using the 19% tax rate) or EUR 19,360 thousand (using the 22% tax rate);
- as at 31 December 2023: EUR 104,586 thousand, and deferred tax assets would stand at EUR
23,009 thousand (using the 22% tax rate).
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 December 2022: EUR 104,061 thousand, and deferred tax assets would be EUR
19,772 thousand (using the 19% tax rate) or EUR 22,893 thousand (using the 22% tax rate);
- as at 31 December 2023: EUR 121,242 thousand, and deferred tax assets would total EUR
26,673 thousand.
The Group and the Company did not create deferred tax assets because the long-term projections do
not show additional possibilities of use in the future.
Income tax receivables
Income tax receivables for 2023 amount to EUR 932 thousand for the Telekom Slovenije Group (in 2022:
EUR 1,387 thousand).
Income tax receivables for 2023 amount to EUR 442 thousand for the company Telekom Slovenije (in
2022: EUR 1,286 thousand).
Income tax payables
The current income tax payables for 2023 amount to EUR 7 thousand for the Telekom Slovenije Group
(in 2022: EUR 221 thousand).
The Company Telekom Slovenije has no income tax payables amount in 2022 and in 2023.
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 of Telekom Slovenije Group,
excluding ordinary shares owned by the Company or the Group.
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 2023
195
Weighted average number of ordinary shares
| Telekom Slovenije | Telekom Slovenije | |||
| Group | ||||
| in EUR thousand | I–XII 2023 | I–XII 2022 | I–XII 2023 | I–XII 2022 |
| No. of all shares* | 6,535,478 | 6,535,478 | 6,535,478 | 6,535,478 |
| Weighted average of own shares | -36,836 | -36,040 | -36,836 | -36,040 |
| Weighted average of shares excluding own | 6,498,642 | 6,499,438 | 6,498,642 | 6,499,438 |
| shares | ||||
*Number of ordinary shares of Telekom Slovenije Group
Earnings per share
| Telekom Slovenije | Telekom Slovenije | |||
| Group | ||||
| in EUR thousand | I–XII 2023 | I–XII 2022 | I–XII 2023 | I–XII 2022 |
| Net profit or loss from going concern | 47,065 | 37,506 | 23,864 | 20,793 |
| Weighted average number of ordinary | 6,498,642 | 6,499,438 | 6,498,642 | 6,499,438 |
| shares for earnings per share* | ||||
| Earnings per share from going concern | 7.24 | 5.77 | 3.67 | 3.20 |
* Number of ordinary shares of Telekom Slovenije Group
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 92,485 thousand (31 Dec
2022: EUR 100,738 thousand). Under concessions and licences, the Group also discloses program
rights and licences for the use of computer software. Details on important concessions are disclosed in
table below :
| Concession contract | Date of | Period | Consideration in |
| authorisation | EUR thousand | ||
| Concession contract for the use of the radio | |||
| frequency spectrum for the UMTS/IMT-2000 | 31 May 2014 | until 31 May 2039 | 91,870 |
| services | |||
| Decision on the allocation of radio frequencies | 26 May 2014 | from 31 May 2014 | 26,769 |
| for LTE 800 MHz, UMTS 2100 MHz | to 31 May 2029 | ||
| Decision on the allocation of radio frequencies | from 4 January | ||
| for GSM 900 and 1800 MHz, LTE 2600 MHz | 26 May 2014 | 2016 to 4 January | 37,705 |
| 2031 | |||
| Decision on the allocation of radio frequencies | |||
| in the 700 MHz, 1500 MHz, 3600 MHz and 26 | 15 June 2021 | until 15 June 2036 | 28,958 |
| GHz band | |||
| Decision on the allocation of radio frequencies | 22 September | until 22 September | 19,302 |
| in the 2100 MHz band | 2021 | 2036 | |
| Decision on the allocation of radio frequencies | 9 Ap ril 2023 | until 9 April 2036 | 4,329 |
| in the 2100 MHz band | |||
| Renewal of permit for the frequency 900 - | 30 July 2019 | until 30 July 2039 | 11,734 |
| 1800 MHz in Kosovo | |||
| Granting of 2x5 (1730 - 1735 MHz & 1825 - | |||
| 1830 MHz) license in the 1800 MHz frequency | 7 January 2021 | 7 January 2039 | 1,355 |
| band | |||
| Granting of 2x10 MHz licence in the 800 MHz | 15 February 2023 | 15 February 2043 | 3,467 |
| frequency band | |||
| Granting of 1x80 MHz licence in 3.6 GHz | 15 February 2023 | 15 February 2043 | 1,865 |
| Granting of 1x20 MHz licence in 3.6 GHz | 15 February 2023 | 15 February 2040 | 443 |
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
196
Goodwill of EUR 3,718 thousand in the Telekom Slovenije Group was generated during the acquisition
of TSinpo (EUR 115 thousand) in 2017 and the takeover and acquisition of the company Debitel in 2015
(EUR 3,602 thousand).
At the end of 2023, the Group and the Company made an assessment of the recoverable amount of
goodwill occurring in the acquisition of Debitel. The valuation was conducted by a certified business
appraiser.
The present value method of expected free cash flows was used to estimate the recoverable amount of
non-current assets of the TSinpo cash-generating unit (CGU). It was established that the recoverable
amount of the non-current assets of the TSinpo cash-generating unit represents the value in use. The
discount rate applied in the projection was 14.87% and the assessed long-term growth rate was 2%.
The book value exceeds the recoverable amount, thus requiring no impairment of goodwill.
The present value method of expected free cash flows was used for the recoverable amount assessment
of non-current assets of the Debitel cash-generating unit (CGU). It was established that the recoverable
amount of the non-current assets of the Debitel cash-generating unit represents the value in use. The
discount rate applied in the projection was 10.05% and the assessed long-term growth rate was 2%.
The book value exceeds the recoverable amount, thus requiring no impairment of goodwill.
Telekom Slovenije Group
Changes in intangible assets of the Telekom Slovenije Group in 2023
| Cost of | Intangible | ||||||
| Concessions | obtaining | Computer | Other | assets | |||
| In EUR thousand | Goodwill | and licences | contracts | software | intangible | under | Total |
| with | assets | construction | |||||
| customers | |||||||
| Cost | |||||||
| Balance as at 1 January 2023 | 49,737 | 421,678 | 21,142 | 253,952 | 67,620 | 13,262 | 827,391 |
| Increases | 0 | 0 | 0 | 0 | 2 | 73,936 | 73,938 |
| Assets generated in the Group | 0 | 0 | 0 | 0 | 0 | 1,414 | 1,414 |
| Transfer into use | 0 | 52,040 | 10,633 | 20,402 | 30 | -83,105 | 0 |
| Impairments and write-offs | 0 | -37,627 | -7,105 | -17,567 | -46 | -263 | -62,608 |
| Other transfers* | 0 | 546 | 0 | -1,004 | 0 | 0 | -458 |
| Balance as at 31 December | 49,737 | 436,637 | 24,670 | 255,783 | 67,606 | 5,244 | 839,677 |
| 2023 | |||||||
| Allowance | |||||||
| Balance as at 1 January 2023 | 46,019 | 293,491 | 10,267 | 222,667 | 50,328 | 267 | 623,039 |
| Impairments and write-offs | 0 | -35,015 | -7,105 | -17,550 | -46 | 0 | -59,716 |
| Other transfers* | 0 | 283 | 0 | -560 | 0 | 0 | -277 |
| Depreciation/Amortisation | 0 | 40,434 | 7,626 | 21,768 | 1,923 | 0 | 71,751 |
| Balance as at 31 December | 46,019 | 299,193 | 10,788 | 227,451 | 52,205 | 267 | 635,923 |
| 2023 | |||||||
| Carrying amount | |||||||
| Balance as at 1 January 2023 | 3,718 | 128,187 | 10,875 | 31,285 | 17,292 | 12,995 | 204,352 |
| Balance as at 31 December | 3,718 | 137,444 | 13,882 | 28,332 | 15,401 | 4,977 | 203,754 |
| 2023 |
* 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 2023
197
Changes in intangible assets of the Telekom Slovenije Group in 2022
| Cost of | Intangible | ||||||
| Concessions | obtaining | Computer | Other | assets | |||
| In EUR thousand | Goodwill | and licences |
contracts | software | intangible | under | Total |
| with | assets | construction | |||||
| customers | |||||||
| 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 |
| 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 |
| Impairments and write-offs | 0 | -38,442 | -7,161 | -67,434 | 0 | -2 | -113,039 |
| Other transfers* | 0 | 0 | 0 | 43 | 0 | 0 | 43 |
| Balance as at 31 December | 49,737 | 421,678 | 21,142 | 253,952 | 67,620 | 13,262 | 827,391 |
| 2022 | |||||||
| Allowance | |||||||
| Balance as at 1 January 2022 | 46,019 | 292,001 | 10,088 | 266,959 | 48,387 | 267 | 663,721 |
| Impairments and write-offs | 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 December | 46,019 | 293,491 | 10,267 | 222,667 | 50,328 | 267 | 623,039 |
| 2022 | |||||||
| 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 December | 3,718 | 128,187 | 10,875 | 31,285 | 17,292 | 12,995 | 204,352 |
| 2022 |
* Other transfers include transfers between intangible assets and property, plant and equipment, transfers among groups of assets.
As at 31 December 2023, the Group disclosed contractual commitments for intangible assets in the
amount of EUR 7,179 thousand (31 December 2022: EUR 4,411 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 2023
| Cost of | Intangible | ||||||
| Concessions | obtaining | Computer | Other | assets | |||
| In EUR thousand | Goodwill | and licences | contracts | software | intangible | under | Total |
| with | assets | construction | |||||
| customers | |||||||
| Cost | |||||||
| Balance as at 1 January 2023 | 3,602 | 282,259 | 21,142 | 240,289 | 19,352 | 12,723 | 579,367 |
| Increases | 0 | 0 | 0 | 0 | 0 | 67,910 | 67,910 |
| Assets generated in the company | 0 | 0 | 0 | 0 | 0 | 1,220 | 1,220 |
| Transfer into use | 0 | 46,856 | 10,633 | 19,242 | 30 | -76,761 | 0 |
| Impairments and write-offs | 0 | -35,852 | -7,105 | -15,915 | -46 | -138 | -59,056 |
| Other transfers* | 0 | 546 | 0 | -1,004 | 0 | 0 | -458 |
| Balance as at 31 December 2023 | 3,602 | 293,809 | 24,670 | 242,612 | 19,336 | 4,954 | 588,983 |
| Allowance | |||||||
| Balance as at 1 January 2023 | 0 | 190,312 | 10,267 | 206,980 | 16,549 | 0 | 424,108 |
| Increases | 0 | 0 | 0 | 1,126 | 0 | 0 | 1,126 |
| Impairments and write-offs | 0 | -33,240 | -7,105 | -15,913 | -46 | 0 | -56,304 |
| Write-offs | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Impairment | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other transfers* | 0 | 283 | 0 | -562 | 0 | 0 | -279 |
| Depreciation/Amort isation | 0 | 29,396 | 7,626 | 20,563 | 368 | 0 | 57,953 |
| Balance as at 31 December 2023 | 0 | 186,751 | 10,788 | 212,194 | 16,871 | 0 | 426,604 |
| Carrying amount | |||||||
| Balance as at 1 January 2023 | 3,602 | 91,947 | 10,875 | 33,309 | 2,803 | 12,723 | 155,259 |
| Balance as at 31 December 2023 | 3,602 | 107,058 | 13,882 | 30,418 | 2,465 | 4,954 | 162,379 |
* Other transfers include transfers between intangible assets and property, plant and equipment, transfers among groups of asset.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
198
Changes in intangible assets of the company Telekom Slovenije in 2022
| Cost of | Intangible | ||||||
| Concessions | obtaining | Computer | Other | assets | |||
| In EUR thousand | Goodwill | and licences | contracts | software | intangible | under | Total |
| with | assets | construction | |||||
| customers | |||||||
| 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 |
| Impairments and write-offs | 0 | -14,627 | -7,161 | -66,320 | 0 | -2 | -88,110 |
| Other transfers* | 0 | 0 | 0 | 42 | 0 | 0 | 42 |
| Balance as at 31 December 2022 | 3,602 | 282,259 | 21,142 | 240,289 | 19,352 | 12,723 | 579,367 |
| Allowance | |||||||
| Balance as at 1 January 2022 | 0 | 175,120 | 10,088 | 251,371 | 16,164 | 0 | 452,743 |
| Impairments and write-offs | 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 December 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 December 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.
The Group companies have unlimited property rights on intangible assets, which are free of
encumbrances.
As at 31 December 2023, the Company disclosed contractual commitments for intangible assets in the
amount of EUR 8,740 thousand (31 December 2022: EUR 5,565 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 is the professional feasibility of the project, the
purpose of completion and the usability or marketability to 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 to the completion of the project, with the results
of these projects being significantly improved products, processes, systems or services before use.
Non-current deferred costs of development as at 31 December 2023 amount to EUR 4,502 thousand
for the Telekom Slovenije Group and EUR 3,984 thousand for the company Telekom Slovenije, and
mostly relate to the development of computer software. The useful lives of non-current deferred costs
of development are finite and follow the estimated useful lives of intangible assets with annual
amortisation 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 2023
199
Changes in non-current deferred costs of development of the Telekom Slovenije Group in 2023
| Other | Other | |||||
| Computer | intangible | Computer | intangible | Asset | ||
| In EUR thousand | software | non-current | software | non-current | under | Total |
| Own work – | assets | External – | assets | construction | ||
| development | Own work – | development | External – | |||
| development | development | |||||
| Cost | ||||||
| Balance as at 1 January 2023 | 10,261 | 4 | 39,635 | 318 | 944 | 51,162 |
| Increases - external development | 0 | 0 | 0 | 0 | 1,301 | 1,301 |
| Increases - own development | 0 | 0 | 0 | 0 | 226 | 226 |
| Transfer from assets under | ||||||
| construction | 455 | 0 | 1,594 | 0 | -2,049 | 0 |
| Impairments and write-offs | -591 | 0 | -1,073 | 0 | -126 | -1,790 |
| Balance as at 31 December 2023 | 10,125 | 4 | 40,156 | 318 | 296 | 50,899 |
| Allowance | ||||||
| Balance as at 1 January 2023 | 9,663 | 4 | 34,007 | 112 | 0 | 43,786 |
| Impairments and write-offs | -592 | 0 | -840 | 0 | 0 | -1,432 |
| Depreciation/Amortisation | 435 | 0 | 3,592 | 16 | 0 | 4,043 |
| Balance as at 31 December 2023 | 9,506 | 4 | 36,759 | 128 | 0 | 46,397 |
| Carrying amount | ||||||
| Balance as at 1 January 2023 | 598 | 0 | 5,628 | 206 | 944 | 7,376 |
| Balance as at 31 December 2023 | 619 | 0 | 3,397 | 190 | 296 | 4,502 |
Changes in non-current deferred costs of development of the Telekom Slovenije Group in 2022
| Other | Other | |||||
| Computer | intangible | Computer | intangible | Asset | ||
| In EUR thousand | software | non-current | software | non-current | under | Total |
| Own work – | assets | External – | assets | construction | ||
| development | Own work – | development | External – | |||
| development | development | |||||
| 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 | 167 | 0 | 1,299 | 0 | -1,466 | 0 |
| construction | ||||||
| Impairments and write-offs | -7 | 0 | -34 | 0 | 0 | -41 |
| Balance as at 31 December | 10,261 | 4 | 39,634 | 318 | 945 | 51,162 |
| 2022 | ||||||
| Allowance | ||||||
| Balance as at 1 January 2022 | 9,146 | 4 | 29,262 | 96 | 0 | 38,508 |
| Impairments and write-offs | -8 | 0 | -33 | 0 | 0 | -41 |
| Depreciation/Amortisation | 523 | 0 | 4,780 | 16 | 0 | 5,319 |
| Balance as at 31 December | 9,662 | 4 | 34,009 | 112 | 0 | 43,786 |
| 2022 | ||||||
| Carrying amount | ||||||
| Balance as at 1 January 2022 | 955 | 0 | 9,106 | 222 | 773 | 11,05 |
| 6 | ||||||
| Balance as at 31 December | 599 | 0 | 5,625 | 206 | 945 | 7,376 |
| 2022 |
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
200
Changes in non-current deferred costs of development of the company Telekom Slovenije in 2023
| Other | Other | |||||
| Computer | intangible | Computer | intangible | Asset | ||
| In EUR thousand | software | non-current | software | non-current | under | Total |
| Own work – | assets | External – | assets | construction | ||
| development | Own work – | development | External – | |||
| development | development | |||||
| Cost | ||||||
| Balance as at 1 January 2023 | 8,116 | 4 | 37,782 | 318 | 521 | 46,741 |
| Increases - external development | 0 | 0 | 0 | 0 | 1,213 | 1,213 |
| Increases - own development | 0 | 0 | 0 | 0 | 226 | 226 |
| Transfer from assets under | ||||||
| construction | 133 | 0 | 1,594 | 0 | -1,727 | 0 |
| Impairments and write-offs | -591 | 0 | -1,073 | 0 | 0 | -1,664 |
| Balance as at 31 December 2023 | 7,658 | 4 | 38,303 | 318 | 233 | 46,516 |
| Allowance | ||||||
| Balance as at 1 January 2023 | 7,760 | 4 | 32,288 | 112 | 0 | 40,164 |
| Impairments and write-offs | -591 | 0 | -840 | 0 | 0 | -1,431 |
| Depreciation/Amortisation | 295 | 0 | 3,488 | 16 | 0 | 3,799 |
| Balance as at 31 December 2023 | 7,464 | 4 | 34,936 | 128 | 0 | 42,532 |
| Carrying amount | ||||||
| Balance as at 1 January 2023 | 356 | 0 | 5,494 | 206 | 521 | 6,577 |
| Balance as at 31 December 2023 | 194 | 0 | 3,367 | 190 | 233 | 3,984 |
Changes in non-current deferred costs of development of the company Telekom Slovenije in 2022
| Other | Other | |||||
| Computer | intangible | Computer | intangible | Asset | ||
| In EUR thousand | software | non-current | software | non-current | under | Total |
| Own work – | assets | External – | assets | construction | ||
| development | Own work – | development | External – | |||
| development | development | |||||
| 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 |
| Impairments and write-offs | -7 | 0 | -34 | 0 | 0 | -41 |
| Balance as at 31 December | ||||||
| 2022 | 8,116 | 4 | 37,782 | 318 | 521 | 46,741 |
| Allowance | ||||||
| Balance as at 1 January 2022 | 7,367 | 4 | 27,675 | 96 | 0 | 35,142 |
| Impairments and write-offs | -7 | 0 | -34 | 0 | 0 | -41 |
| Depreciation/Amortisation | 400 | 0 | 4,647 | 16 | 0 | 5,063 |
| Balance as at 31 December | ||||||
| 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 December | 356 | 0 | 5,495 | 206 | 521 | 6,577 |
| 2022 |
17. Property, plant and equipment
Significant increases in property, plant and equipment in use in 2023 refer mostly to the construction
and upgrade of cable network and acquirement of cable lines, telecommunications and other equipment.
The item of other equipment comprises modems, other equipment at clients, computer equipment,
furniture, vehicles 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.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
201
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 2023, 96% 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 2023, the Group and the Company utilised a specific-purpose loan for
the acquisition or construction of optical network assets. The Company and the Group recorded the
costs of taking out a specific-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 458 thousand. In 2023, 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 2023 amounted to EUR
4,884 thousand (31 December 2022: EUR 5,983 thousand) and mostly refer to the set-up of
telecommunications network.
Changes in property, plant and equipment of the Telekom Slovenije Group in 2023
| Land, | Mobile | Assets | ||||||
| In EUR thousand | buildings, | Cable | Telephone | network | Other | under | Other | Total |
| and cable | network | exchanges | equipment | equipment | construction | |||
| lines | ||||||||
| Cost | ||||||||
| Balance as at 1 January | 518,088 | 1,219,276 | 84,890 | 300,538 | 355,401 | 27,491 | 61 | 2,505,745 |
| 2023 | ||||||||
| Difference from | ||||||||
| translation to the | 0 | -4 | 0 | 0 | -3 | 0 | 0 | -7 |
| presentation currency | ||||||||
| Increases | 0 | 640 | 0 | 0 | 1,069 | 79,506 | 186 | 81,401 |
| Fixed assets generated | 0 | 0 | 0 | 0 | 0 | 16,205 | 0 | 16,205 |
| in the Group | ||||||||
| Transfer into use | 11,185 | 46,137 | 1,290 | 19,212 | 33,904 | -111,728 | 0 | 0 |
| Impairments and write- | -1,624 | -4,594 | -3,648 | -7,952 | -39,784 | -4,562 | 0 | -62,164 |
| offs | ||||||||
| Other transfers* | 839 | -161 | 448 | 0 | 9 | 9 | 0 | 1,144 |
| Balance as at 31 | 528,488 | 1,261,294 | 82,980 | 311,798 | 350,596 | 6,921 | 247 | 2,542,324 |
| December 2023 | ||||||||
| Allowance | ||||||||
| Balance as at 1 January | 229,415 | 971,670 | 79,481 | 253,252 | 281,036 | 11,390 | 0 | 1,826,244 |
| 2023 | ||||||||
| Difference from | ||||||||
| translation to the | 0 | -1 | 0 | 0 | -1 | 0 | 0 | -2 |
| presentation currency | ||||||||
| Increases | 85 | 0 | 5 | 8 | 71 | 0 | 0 | 169 |
| Impairments and write- | -798 | -2,907 | -3,634 | -7,831 | -35,085 | 0 | 0 | -50,255 |
| offs | ||||||||
| Depreciation/Amortisation | 13,509 | 22,807 | 1,830 | 11,911 | 29,678 | 0 | 0 | 79,735 |
| Other transfers* | -327 | -14 | 267 | 0 | 10 | 0 | 0 | -64 |
| Balance as at 31 | 241,884 | 991,555 | 77,949 | 257,340 | 275,709 | 11,390 | 0 | 1,855,827 |
| December 2023 | ||||||||
| Carrying amount | ||||||||
| Balance as at 1 January | 288,673 | 247,606 | 5,409 | 47,286 | 74,365 | 16,101 | 61 | 679,501 |
| 2023 | ||||||||
| Balance as at 31 | 286,604 | 269,739 | 5,031 | 54,458 | 74,887 | -4,469 | 247 | 686,497 |
| December 2023 |
* Other transfers include transfers between intangible assets and property, plant and equipment, transfers among groups of assets.
Within the Group, part of the decrease in property, plant and equipment is attributable to impairments of
assets resulting from the floods affecting a part of Slovenia in early August. Telekom Slovenije's network
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
202
and the newly built OŠO5 (open broadband) network owned by GVO were damaged. The Group
therefore impaired these assets in the total amount of EUR 5,560 thousand, of which EUR 1,324
thousand was accounted for by Telekom Slovenije and EUR 4,236 thousand by GVO (for more
information see Note 12 Other operating expenses).
Changes in property, plant and equipment of the Telekom Slovenije Group in 2022
| Land, | Mobile | Assets | ||||||
| In EUR thousand | buildings, | Cable | Telephone | network | Other | under | Other | Total |
| and cable | network | exchanges | equipment | equipment | construction | |||
| lines | ||||||||
| Cost | ||||||||
| Balance as at 1 January | 490,082 | 1,190,292 | 88,832 | 315,485 | 385,390 | 40,823 | 268 | 2,511,172 |
| 2022 | ||||||||
| Difference from | ||||||||
| translation to the | 0 | 2 | 0 | 0 | 0 | 0 | 0 | 2 |
| presentation currency | ||||||||
| Increases | 104 | 2,907 | 0 | 0 | 1,205 | 78,396 | -185 | 82,427 |
| Fixed assets generated | 0 | 0 | 0 | 0 | 0 | 15,565 | 0 | 15,565 |
| in the Group | ||||||||
| Transfer into use | 29,243 | 28,475 | 1,260 | 12,520 | 35,409 | -106,907 | 0 | 0 |
| Impairments and write- | -1,354 | -2,319 | -5,212 | -27,461 | -66,582 | -302 | 0 | -103,230 |
| offs | ||||||||
| Other transfers* | 13 | -81 | 10 | -6 | -21 | -84 | -22 | -191 |
| Balance as at 31 | 518,088 | 1,219,276 | 84,890 | 300,538 | 355,401 | 27,491 | 61 | 2,505,745 |
| December 2022 | ||||||||
| Allowance | ||||||||
| Balance as at 1 January | 216,747 | 951,360 | 82,613 | 266,825 | 315,178 | 11,390 | 0 | 1,844,113 |
| 2022 | ||||||||
| Difference from | ||||||||
| translation to the | 0 | 1 | 0 | 0 | 1 | 0 | 0 | 2 |
| presentation currency | ||||||||
| Increases | 0 | 0 | 0 | 0 | 10 | 0 | 0 | 10 |
| Impairments and write- | -489 | -2,057 | -5,197 | -27,387 | -63,551 | 0 | 0 | -98,681 |
| offs | ||||||||
| 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 | 229,415 | 971,670 | 79,481 | 253,252 | 281,036 | 11,390 | 0 | 1,826,244 |
| December 2022 | ||||||||
| Carrying amount | ||||||||
| Balance as at 1 January | 273,335 | 238,932 | 6,219 | 48,660 | 70,212 | 29,433 | 268 | 667,059 |
| 2022 | ||||||||
| Balance as at 31 | 288,673 | 247,606 | 5,409 | 47,286 | 74,365 | 16,101 | 61 | 679,501 |
| December 2022 |
* Other transfers include transfers between intangible assets and property, plant and equipment, transfers among groups of assets.
Of total assets, the Telekom Slovenije Group rent out assets in the (carrying) amount:
In 2023
| Land, | Mobile | Assets | ||||||
| In EUR thousand | buildings, | Cable | Telephone | network | Other | under | Other | Total |
| and cable | network | exchanges | equipment | equipment | construction | |||
| lines | ||||||||
| Assets rent out under | 7,399 | 0 | 0 | 0 | 2 | 0 | 247 | 7,647 |
| operating lease |
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
203
In 2022
| Land, | Mobile | Assets | ||||||
| In EUR thousand | buildings, | Cable | Telephone | network | Other | under | Other | Total |
| and cable | network | exchanges | equipment | equipment | construction | |||
| lines | ||||||||
| Assets rent out | ||||||||
| under operating | 7,786 | 0 | 0 | 0 | 88 | 0 | 0 | 7,874 |
| lease |
The company Telekom Slovenije
As at 31 December 2023, the Company disclosed contractual commitments for property, plant and
equipment in the amount of EUR 14,291 thousand (31 December 2022: EUR 16,450 thousand), which
relate to network construction, purchase of telecommunications equipment, acquisition and construction
of real estate, and purchase of hardware and other equipment.
Changes in property, plant and equipment of the company Telekom Slovenije in 2023
| Land, | Mobile | Assets | |||||
| In EUR thousand | buildings, | Cable | Telephone | network | Other | under | Total |
| and cable | network | exchanges | equipment | equipment | construction | ||
| lines | |||||||
| Cost | |||||||
| Balance as at 1 January 2023 | 488,699 | 1,139,346 | 83,665 | 185,472 | 337,505 | 20,541 | 2,255,228 |
| Increases | 0 | 0 | 0 | 0 | 0 | 67,523 | 67,523 |
| Assets generated in the Company | 0 | 0 | 0 | 0 | 0 | 4,713 | 4,713 |
| Transfer into use | 11,179 | 23,180 | 1,087 | 12,831 | 29,904 | -78,181 | 0 |
| Impairments and write-offs | -1,604 | -3,876 | -3,648 | -2,896 | -36,023 | -286 | -48,333 |
| Other transfers* | 5,124 | -161 | 448 | 0 | 9 | 1 | 5,421 |
| Balance as at 31 December 2023 | 503,398 | 1,158,489 | 81,552 | 195,407 | 331,395 | 14,311 | 2,284,552 |
| Allowance | |||||||
| Balance as at 1 January 2023 | 220,231 | 921,561 | 78,259 | 159,497 | 270,748 | 0 | 1,650,296 |
| Increases | 85 | 0 | 5 | 8 | 67 | 0 | 165 |
| Impairments and write-offs | -1,237 | -2,318 | -3,634 | -2,870 | -32,262 | 0 | -42,321 |
| Depreciation/Amortisation | 12,984 | 18,779 | 1,817 | 7,217 | 26,827 | 0 | 67,624 |
| Other transfers* | 810 | -14 | 267 | 0 | 9 | 0 | 1,072 |
| Balance as at 31 December 2023 | 232,873 | 938,008 | 76,714 | 163,852 | 265,389 | 0 | 1,676,836 |
| Carrying amount | |||||||
| Balance as at 1 January 2023 | 268,468 | 217,785 | 5,406 | 25,975 | 66,757 | 20,541 | 604,932 |
| Balance as at 31 December 2023 | 270,525 | 220,481 | 4,838 | 31,555 | 66,006 | 14,311 | 607,716 |
* 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 2023
204
Changes in property, plant and equipment of the company Telekom Slovenije in 2022
| Land, | Mobile | Assets | |||||
| in EUR thousand | buildings, | Cable | Telephone | network | Other | under | Total |
| and cable | networks | exchanges | equipment | equipment | construction | ||
| lines | |||||||
| 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 | 0 | 0 | 0 | 0 | 0 | 4,313 | 4,313 |
| Company | |||||||
| 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.
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 rent out assets in the (carrying) amount:
In 2023
| Land, | Mobile | Assets | ||||||
| In EUR thousand | buildings, | Cable | Telephone | network | Other | under | Other | Total |
| and cable | network | exchanges | equipment | equipment | construction | |||
| lines | ||||||||
| Assets rent out under | 12,392 | 0 | 0 | 0 | 2 | 0 | 0 | 12,394 |
| operating lease |
In 2022
| Land, | Mobile | Assets | ||||||
| In EUR thousand | buildings, | Cable | Telephone | network | Other | under | Other | Total |
| and cable | network | exchanges | equipment | equipment | construction | |||
| lines | ||||||||
| Assets rent out under | 6,985 | 0 | 0 | 0 | 9 | 0 | 0 | 6,994 |
| operating lease |
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
205
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 to 15 years.
Changes in right-of-use assets of the Telekom Slovenije Group in 2023
| Base | Technological | ||||||
| stations | premises – | Lease of | Lease | ||||
| In EUR thousand | – | easement | premises | Vehicles | of | Other | Total |
| easement | and lease | and land | lines | ||||
| and lease | |||||||
| Cost | |||||||
| Balance as at 1 January 2023 | 74,036 | 8,929 | 9,719 | 2,687 | 22,246 | 4,224 | 121,841 |
| Difference from translation to the presentation | |||||||
| currency | 0 | 0 | 0 | 0 | -88 | 0 | -88 |
| Increases - contract modifications | 8,781 | 714 | 1,721 | 327 | 176 | 98 | 11,817 |
| Transfer to use - new contracts | 3,564 | 322 | 872 | 664 | 1,119 | 60 | 6,601 |
| Decreases - contract modifications | -477 | -305 | -353 | -96 | -90 | 0 | -1,321 |
| Decreases | -503 | -146 | 0 | -478 | 0 | -37 | -1,164 |
| Other transfers | 0 | 0 | 11 | 0 | 0 | 0 | 11 |
| Balance as at 31 December 2023 | 85,401 | 9,514 | 11,970 | 3,104 | 23,363 | 4,345 | 137,697 |
| Allowance | |||||||
| Balance as at 1 January 2023 | 27,748 | 3,337 | 5,923 | 1,220 | 6,365 | 1,829 | 46,422 |
| Decreases | -197 | -82 | 0 | -457 | 0 | -37 | -773 |
| Depreciation/Amortisation | 7,481 | 802 | 1,664 | 606 | 1,745 | 509 | 12,807 |
| Other transfers | 0 | 36 | 0 | 0 | 0 | 0 | 36 |
| Balance as at 31 December 2023 | 35,032 | 4,093 | 7,587 | 1,369 | 8,110 | 2,301 | 58,492 |
| Carrying amount | |||||||
| Balance as at 1 January 2023 | 46,288 | 5,592 | 3,796 | 1,467 | 15,881 | 2,395 | 75,419 |
| Balance as at 31 December 2023 | 50,369 | 5,421 | 4,383 | 1,735 | 15,253 | 2,044 | 79,205 |
Changes in right-of-use assets of the Telekom Slovenije Group in 2022
| Base | Technological | ||||||
| stations | premises – | Lease of | Lease | ||||
| In EUR thousand | – | easement | premises | Vehicles | of | Other | Total |
| easement | and lease | and land | lines | ||||
| and lease | |||||||
| Cost | |||||||
| Balance as at 1 January 2022 | 65,619 | 8,507 | 9,243 | 2,257 | 20,557 | 3,846 | 110,029 |
| Difference from translation to the presentation | |||||||
| currency | 0 | 0 | 0 | 0 | -2 | 0 | -2 |
| Increases - 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 |
| Decreases | -1,488 | -175 | -472 | -654 | -109 | 0 | -2,898 |
| Other transfers | 0 | 1 | 0 | 0 | 17 | 0 | 18 |
| Balance as at 31 December 2022 | 74,036 | 8,929 | 9,719 | 2,687 | 22,246 | 4,224 | 121,841 |
| Allowance | |||||||
| Balance as at 1 January 2022 | 21,501 | 2,533 | 4,641 | 1,310 | 4,739 | 1,335 | 36,059 |
| Decreases | -1,268 | -89 | -258 | -652 | -109 | 0 | -2,376 |
| 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 December 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 December 2022 | 46,288 | 5,592 | 3,796 | 1,467 | 15,881 | 2,395 | 75,419 |
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
206
Changes in right-of-use assets of the company Telekom Slovenije in 2023
| Base | Technological | ||||||
| stations | premises – | Lease of | Lease | ||||
| In EUR thousand | – | easement | premises | Vehicles | of | Other | Total |
| easement | and lease | and land | lines | ||||
| and lease | |||||||
| Cost | |||||||
| Balance as at 1 January 2023 | 60,695 | 7,994 | 4,054 | 2,456 | 44,461 | 633 | 120,293 |
| Increases - contract modifications | 2,389 | 185 | 13 | 133 | 10,368 | 78 | 13,166 |
| Transfer to use - new contracts | 3,564 | 322 | 872 | 599 | 1,120 | 0 | 6,477 |
| Decreases | -322 | -125 | 0 | -435 | 0 | 0 | -882 |
| Balance as at 31 December 2023 | 66,326 | 8,376 | 4,939 | 2,753 | 55,949 | 711 | 139,054 |
| Allowance | |||||||
| Balance as at 1 January 2023 | 21,882 | 2,884 | 2,100 | 1,063 | 13,759 | 478 | 42,167 |
| Decreases | -141 | -62 | 0 | -415 | 0 | 0 | -618 |
| Depreciation/Amortisation | 6,288 | 687 | 733 | 552 | 3,734 | 155 | 12,149 |
| Balance as at 31 December 2023 | 28,029 | 3,509 | 2,833 | 1,200 | 17,493 | 633 | 53,698 |
| Carrying amount | |||||||
| Balance as at 1 January 2023 | 38,813 | 5,110 | 1,954 | 1,393 | 30,702 | 155 | 78,126 |
| Balance as at 31 December 2023 | 38,297 | 4,867 | 2,106 | 1,553 | 38,456 | 78 | 85,356 |
Changes in right-of-use assets of the company Telekom Slovenije in 2022
| Base | Technological | ||||||
| stations | premises – | Lease of | Lease | ||||
| In EUR thousand | – | easement | premises | Vehicles | of | Other | Total |
| easement | and lease | and land | lines | ||||
| and lease | |||||||
| Cost | |||||||
| Balance as at 1 January 2022 | 58,640 | 7,678 | 3,785 | 2,054 | 40,163 | 645 | 112,965 |
| Increases - 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 |
| Decreases | -1,379 | -170 | -111 | -624 | -109 | 0 | -2,393 |
| Balance as at 31 December 2022 | 60,695 | 7,994 | 4,054 | 2,456 | 44,461 | 633 | 120,293 |
| Allowance | |||||||
| Balance as at 1 January 2022 | 16,933 | 2,188 | 1,638 | 1,163 | 10,054 | 321 | 32,297 |
| Decreases | -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 December 2022 | 21,882 | 2,884 | 2,100 | 1,063 | 13,759 | 478 | 42,166 |
| Carrying amount | |||||||
| Balance as at 1 January 2022 | 41,706 | 5,490 | 2,147 | 891 | 30,109 | 324 | 80,667 |
| Balance as at 31 December 2022 | 38,813 | 5,110 | 1,954 | 1,393 | 30,702 | 155 | 78,126 |
The amounts recognised in the statement of profit or loss
| In EUR thousand | Telekom Slovenije Group | Telekom Slovenije | ||
| 31 Dec 2023 | 31 Dec 2022 | 31 Dec | 31 Dec | |
| 2023 | 2022 | |||
| Depreciation costs of the right-of-use assets | 12,807 | 12,728 | 12,149 | 11,968 |
| Interest expenses from lease liabilities | 2,829 | 2,122 | 2,313 | 2,072 |
| Expenses related to variable lease payments not | ||||
| included in the measuring of lease liabilities | 42 | 36 | 40 | 33 |
| Total | 15,678 | 14,886 | 14,502 | 14,073 |
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
207
19. Investments in subsidiaries
Telekom Slovenije holds a 100% interest in the following subsidiaries, the value of which, as at 31
December 2023, amounts to:
| In EUR thousand | 31 Dec 2022 | Impairment | 31 Dec 2023 |
| GVO | 5,758 | 0 | 5,758 |
| Avtenta | 1,323 | 0 | 1,323 |
| TSmedia | 3,460 | -1,290 | 2,170 |
| IPKO | 20,730 | 0 | 20,730 |
| Soline | 891 | -421 | 470 |
| SIOL Zagreb | 501 | -89 | 412 |
| SIOL Podgorica | 2,620 | 0 | 2,620 |
| SIOL Sarajevo | 1,710 | 0 | 1,710 |
| SIOL Skopje | 1,005 | 0 | 1,005 |
| SIOL Beograd | 100 | 0 | 100 |
| TSinpo | 419 | 0 | 419 |
| Institution Ustanova Srčni sklad | 3 | 0 | 3 |
| SIOL Prishtina | 200 | 0 | 200 |
| Investments in subsidiaries | 38,720 | -1,800 | 36,920 |
For 2023, based on checking for signs of impairment, the Company opted to assess the recoverable
amount for its subsidiaries TSmedia, TSinpo, Soline, SIOL Zagreb, SIOL Prishtina and SiOL Sarajevo.
The recoverable amounts of individual companies were assessed by a certified business appraiser.
The appraisals showed that the investments in subsidiaries TSmedia, Soline and SIOL Zagreb needed
to be impaired. The impairment was recognised in the statement of profit or loss in the amount of EUR
1,800 thousand.
TSmedia
The recoverable amount of the 100% share capital in TSmedia for the purpose of financial reporting
amounts to EUR 2,170 thousand. During the value assessment, the present value method of expected
free cash flows for a five-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 12.03% 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 1,290 thousand (Note 13 Finance income
and finance expenses). Fair value measurement is classified in level 3 of the fair value measurement
hierarchy.
| Sensitivity analysis - change in NPV of equity in EUR thousand | ||
| Impact of change in assumption | ||
| Growth / WACC | -1% | +1% |
| -1% | 2,293 | 2,683 |
| +1% | 1,834 | 2,060 |
Soline
The recoverable amount of the 100% share capital in Soline for the purpose of financial reporting equals
EUR 470 thousand. During the value-in-use assessment, the present value method of expected free
cash flows for a five-year period based on actual plans was used, excluding indebtedness. The discount
rate applied in the projection was 14.97% 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 421 thousand (Note
13 Finance income and finance expenses). Fair value measurement is classified in level 3 of the fair
value measurement hierarchy.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
208
| Sensitivity analysis - change in NPV of equity in EUR thousand | ||
| Impact of change in assumption | ||
| Growth / WACC | -1% | +1% |
| -1% | 597 | 669 |
| +1% | 314 | 350 |
SIOL Zagreb
The recoverable amount of the 100% share capital in SIOL Zagreb for the purpose of financial reporting
amounts to EUR 412 thousand. During the value-in-use assessment, the present value method of
expected free cash flows for a five-year period based on actual plans was used, excluding indebtedness.
The discount rate used in the projection is 9,38 % in the optimistic scenario and 9,44 % in the pessimistic
scenario. Based on the valuation, the Company impaired the investment in SIOL Zagreb in the amount
of EUR 89 thousand (Note 13 Finance income and finance expenses). Fair value measurement is
classified in level 3 of the fair value measurement hierarchy.
| Sensitivity analysis - change in NPV of equity in EUR thousand | |
| Impact of change in assumption | |
| WACC | |
| -1% | 433 |
| +1% | 393 |
The valuations made by the Company for other investments in subsidiaries did not indicate a need for
impairment as the recoverable amount is higher than the carrying amount.
20. Other investments
Non-current investments
| Telekom Slovenije Group | Telekom Slovenije | |||
| In EUR thousand | 31 Dec 2023 | 31 Dec 2022 | 31 Dec 2023 | 31 Dec 2022 |
| Investments in other shares and interests | 2,454 | 2,423 | 2,454 | 2,423 |
| Loans to companies | 0 | 0 | 19,558 | 46,073 |
| - of which to companies in the Group | 0 | 0 | 19,558 | 46,073 |
| Loans to employees | 2 | 9 | 2 | 9 |
| Other non-current financial assets | 16 | 16 | 0 | 0 |
| Total non-current investments | 2,472 | 2,448 | 22,014 | 48,505 |
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 2,170 thousand (31 December
2022: EUR 2,139 thousand) relates to investments which are listed on the stock exchange. Investments
are not pledged as collateral and are free of encumbrances.
Current investments
| Telekom Slovenije Group | Telekom Slovenije | |||
| In EUR thousand | 31 Dec 2023 | 31 Dec 2022 | 31 Dec 2023 | 31 Dec 2022 |
| Short-term loans to companies | 0 | 0 | 17,958 | 11,480 |
| * of which to companies in the Group | 0 | 0 | 17,958 | 11,480 |
| Loans to employees | 7 | 16 | 8 | 16 |
| Other current financial assets | 2 | 2 | 0 | 0 |
| Fair value of interest rate swap | 0 | 19 | 0 | 20 |
| Bank deposits | 1,037 | 800 | 36 | 0 |
| Total current investments | 1,046 | 837 | 18,002 | 11,516 |
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
209
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 | Telekom Slovenije | |||
| In EUR thousand | 31 Dec 2023 | 31 Dec 2022 | 31 Dec 2023 | 31 Dec 2022 |
| Long-term loans granted | 2 | 9 | 19,560 | 46,082 |
| Loans granted | 0 | 0 | 19,558 | 46,073 |
| Loans to employees | 2 | 9 | 2 | 9 |
| Short-term loans granted | 7 | 16 | 17,966 | 11,496 |
| Part of long-term loan falling due in 12 months - | 0 | 0 | 16,026 | 10,666 |
| loans granted | ||||
| Part of long-term loan falling due in 12 months - | 7 | 16 | 8 | 16 |
| loans to employees | ||||
| Short-term loans granted and interest | 0 | 0 | 1,932 | 814 |
| Closing balance - loans granted | 9 | 25 | 37,526 | 57,578 |
The maturity of long-term and short-term loans as well as other data are disclosed in Note 45 Financial
instruments and financial risk management.
The interest rate for loans granted to employees ranges between 4.08% and 6.23%.
At Telekom Slovenije, long-term loans refer entirely to loans to subsidiaries. The interest rate for loans
granted to subsidiaries ranges between 4.346% and 7.832%. For more details see Note 45 Financial
instruments and financial risk management.
21. Contract assets
| Telekom Slovenije Group | Telekom Slovenije | |||
| In EUR thousand | 31 Dec 2023 | 31 Dec 2022 | 31 Dec 2023 | 31 Dec 2022 |
| Non-current contract assets | 5,183 | 3,963 | 4,753 | 3,572 |
| Other non-current contract assets | -1,004 | -339 | -1,004 | -338 |
| Total other non-current assets | 4,179 | 3,624 | 3,749 | 3,234 |
In 2023, the Group impaired contract assets in the amount of EUR 657 thousand (in 2022: EUR 617
thousand), and the company Telekom Slovenije EUR 655 thousand (in 2022: EUR 609 thousand).
22. Deferred costs
| Telekom Slovenije Group | Telekom Slovenije | |||
| In EUR thousand | 31 Dec 2023 | 31 Dec 2022 | 31 Dec | 31 Dec |
| 2023 | 2022 | |||
| Prepaid leases | 31 | 35 | 15 | 20 |
| Other non-current assets | 2,683 | 3,258 | 2,772 | 3,674 |
| Total other non-current assets | 2,714 | 3,293 | 2,787 | 3,694 |
Other non-current assets represent the balance of non-current deferred costs of license maintenance
and similar costs.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
210
23. Investment property
Changes in investment property in 2023
| Telekom Slovenije Group | Telekom Slovenije | |||||
| In EUR thousand | Land | Buildings | Total | Land | Buildings | Total |
| Cost | ||||||
| Balance as at 1 January 2023 | 1,986 | 6,211 | 8,197 | 4,958 | 6,400 | 11,358 |
| Decreases | 0 | -78 | -78 | 0 | -78 | -78 |
| Other transfers | -206 | -961 | -1,167 | -3,178 | -1,590 | -4,768 |
| Balance as at 31 December | 1,780 | 5,172 | 6,952 | 1,780 | 4,732 | 6,512 |
| 2023 | ||||||
| Allowance | ||||||
| Balance as at 1 January 2023 | 1,689 | 2,204 | 3,893 | 1,689 | 2,212 | 3,901 |
| Decreases | 0 | -20 | -20 | 0 | -20 | -20 |
| Depreciation/Amortisation | 0 | 138 | 138 | 0 | 143 | 143 |
| Other transfers | 0 | -355 | -355 | 0 | -808 | -808 |
| Balance as at 31 December | 1,689 | 1,967 | 3,656 | 1,689 | 1,527 | 3,216 |
| 2023 | ||||||
| Carrying amount | ||||||
| Balance as at 1 January 2023 | 297 | 4,007 | 4,304 | 3,269 | 4,188 | 7,457 |
| Balance as at 31 December | 91 | 3,205 | 3,296 | 91 | 3,205 | 3,296 |
| 2023 | ||||||
Changes in investment property in 2022
| Telekom Slovenije Group | 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 |
| Decreases | 0 | -116 | -116 | 0 | -157 | -157 |
| Balance as at 31 December | 1,986 | 6,211 | 8,197 | 4,958 | 6,400 | 11,358 |
| 2022 | ||||||
| Allowance | 0 | 0 | 0 | |||
| 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 | 153 |
| Balance as at 31 December | 1,689 | 2,204 | 3,893 | 1,689 | 2,212 | 3,901 |
| 2022 | ||||||
| Carrying amount | ||||||
| Balance as at 1 January 2022 | 297 | 4,248 | 4,545 | 3,269 | 4,372 | 7,641 |
| Balance as at 31 December | 297 | 4,007 | 4,304 | 3,269 | 4,188 | 7,457 |
| 2022 | ||||||
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 Book and fair values.
In 2023, Telekom Slovenije reclassified investment properties into tangible fixed assets, including the
land and building of Hotel Tisa totaling 811 thousand EUR and the land and building in Sečovlje salt
pans totaling 3,148 thousand EUR.
As of 31 December 2023, all investment properties are owned by Telekom Slovenije.
Among the investment properties, the following are reported: a building on Vilharjeva Street totaling
3,123 thousand EUR, land and buildings in Rakovnik, and other apartments totaling 173 thousand EUR
(compared to 196 thousand EUR in 2022). Lease agreements for apartments are concluded with
individuals for an indefinite period with a notice period for termination by either party. Other lease
agreements are concluded for a fixed period with the possibility of extension. The notice period ranges
from 2 to 12 months.
The decrease in investment property relates to the sale of part of the building on Vilharjeva.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
211
Revenue generated on investment property in 2023, recognised in the Group’s statement of profit or
loss, equalled EUR 404 thousand (2022: EUR 372 thousand). Costs associated with investment
properties in 2023 amounted to 400 thousand EUR (2022: 345 thousand EUR).
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 2023, 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 | Telekom Slovenije | |
| In EUR thousand | Assets held for sale | Assets held for sale |
| Balance as at 1 January 2022 | 799 | 799 |
| Sale | -3 | -3 |
| Balance as at 31 December 2022 | 796 | 796 |
| Transfer to property, plant and equipment | -208 | -208 |
| Balance as at 31 December 2023 | 588 | 588 |
In 2023, Telekom Slovenije reclassified part of its assets from assets held for sale to property, plant and
equipment.
25. Inventories
| Telekom Slovenije Group | Telekom Slovenije | |||
| In EUR thousand | 31 Dec 2023 | 31 Dec 2022 | 31 Dec 2023 | 31 Dec 2022 |
| Material | 11,366 | 10,707 | 9,676 | 8,804 |
| Products | 891 | 664 | 0 | 0 |
| Merchandise | 12,545 | 13,882 | 11,500 | 12,898 |
| Total inventories | 24,802 | 25,253 | 21,176 | 21,702 |
In 2023, the Telekom Slovenije Group impaired and wrote off EUR 902 thousand of inventories (in 2022:
EUR 1,380 thousand).
In 2023, Telekom Slovenije wrote off or impaired EUR 852 thousand worth of inventories (in 2022: EUR
1,266 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 Financial instruments and financial risk management.
Telekom Slovenije Group
| 31 Dec 2023 | 31 Dec 2022 | |||
| In EUR thousand | Gross amount | Allowance | Net amount | Net amount |
| Non-current trade receivables | 19,620 | -96 | 19,524 | 18,952 |
| Other receivables | 161 | 0 | 161 | 299 |
| Total trade and other receivables | 19,781 | -96 | 19,685 | 19,251 |
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
212
Current trade receivables
| 31 Dec 2023 | 31 Dec 2022 | |||
| In EUR thousand | Gross | Allowance | Net amount | Net amount |
| amount | ||||
| Trade receivables | 147,285 | -12,553 | 134,732 | 125,738 |
| Trade receivables due from foreign operators | 11,444 | -1,479 | 9,965 | 12,226 |
| Trade receivables due from domestic operators | 22,578 | -7,068 | 15,510 | 13,490 |
| Total trade receivables | 181,307 | -21,100 | 160,207 | 151,454 |
| Paid advances | 6,005 | 0 | 6,005 | 1,958 |
| VAT and other tax receivables | 2,487 | 0 | 2,487 | 2,954 |
| Other receivables | 1,424 | 0 | 1,424 | 1,314 |
| Total other receivables | 9,916 | 0 | 9,916 | 6,226 |
| Total trade and other receivables | 191,223 | -21,100 | 170,123 | 157,680 |
Trade receivables do not bear interest.
Changes in allowances for receivables
| In EUR thousand | 31 Dec 2023 | 31 Dec 2022 |
| Balance as at 1 January | -17,974 | -16,944 |
| Allowances during the year | -7,717 | -6,002 |
| Reversal of allowances | 3,918 | 4,070 |
| Write-offs | 577 | 902 |
| Closing balance | -21,196 | -17,974 |
Telekom Slovenije
| 31 Dec 2023 | 31 Dec 2022 | |||
| In EUR thousand | Gross amount | Allowance | Net amount | Net amount |
| Non-current trade receivables | 19,620 | -96 | 19,524 | 18,952 |
| Other receivables | 160 | 0 | 160 | 294 |
| Total trade and other receivables | 19,780 | -96 | 19,684 | 19,246 |
Current trade receivables
| 31 Dec 2023 | 31 Dec 2022 | |||
| In EUR thousand | Gross amount | Allowance | Net | Net amount |
| amount | ||||
| Trade receivables | 131,218 | -7,507 | 123,711 | 116,856 |
| Receivables due from foreign operators | 12,128 | -1,482 | 10,646 | 12,830 |
| Receivables due from domestic operators | 24,781 | -7,079 | 17,702 | 16,130 |
| Total trade receivables | 168,127 | -16,068 | 152,059 | 145,816 |
| Paid advances and warranties | 5,934 | 0 | 5,934 | 1,832 |
| VAT and other tax receivables | 1,881 | 0 | 1,881 | 2,245 |
| Other receivables | 1,217 | 0 | 1,217 | 991 |
| Total other receivables | 9,032 | 0 | 9,032 | 5,068 |
| Total trade and other receivables | 177,159 | -16,068 | 161,091 | 150,884 |
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
213
Changes in allowances for receivables
| In EUR thousand | 31 Dec 2023 | 31 Dec 2022 |
| Balance as at 1 January | -13,757 | -13,111 |
| Allowances during the year | -7,259 | -5,526 |
| Reversal of allowances | 3,526 | 3,595 |
| Write-offs | 1,326 | 1,285 |
| Closing balance | -16,164 | -13,757 |
Maturity analysis of receivables is presented in more detail in Note 45 Financial instruments and financial
risk management.
27. Contract assets
| Telekom Slovenije Group | Telekom Slovenije | |||
| In EUR thousand | 31 Dec 2023 | 31 Dec 2022 | 31 Dec 2023 | 31 Dec 2022 |
| Contract assets from mobile and fixed-line | 7,645 | 6,225 | 7,645 | 6,225 |
| segment | ||||
| Other contract assets | 6,503 | 9,717 | 6,391 | 9,337 |
| Total current contract assets | 14,148 | 15,942 | 14,036 | 15,562 |
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
| Telekom Slovenije Group | Telekom Slovenije | |||
| In EUR thousand | 31 Dec 2023 | 31 Dec 2022 | 31 Dec 2023 | 31 Dec 2022 |
| Deferred costs | 6,708 | 4,545 | 4,855 | 3,741 |
| Other | 35 | 0 | 0 | 0 |
| Total deferred assets | 6,743 | 4,545 | 4,855 | 3,741 |
Current deferred costs mainly include prepaid costs of system and license maintenance.
29. Cash and cash equivalents
| Telekom Slovenije Group | Telekom Slovenije | |||
| In EUR thousand | 31 Dec 2023 | 31 Dec 2022 | 31 Dec 2023 | 31 Dec 2022 |
| Cash on hand and bank balances | 18,779 | 37,382 | 11,376 | 19,573 |
| Short-term bank deposits with maturity of up to | 36,700 | 0 | 33,000 | 0 |
| three months | ||||
| Total cash and cash equivalents | 55,479 | 37,382 | 44,376 | 19,573 |
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
214
30. Equity and reserves
Authorised, issued and fully called-up 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 represents the
same stake and corresponding amount in share capital.
Ownership structure
| 31 Dec 2023 | 31 Dec 2022 | |||
| Shareholder | Number of shares | Interest in % | Number of shares | Interest in % |
| Republic of Slovenia | 4,087,569 | 62.54% | 4,087,569 | 62.54% |
| Domestic and foreign natural | 966,340 | 14.79% | 938,649 | 14.36% |
| persons* | ||||
| Foreign legal entities | 410,583 | 6.28% | 407,335 | 6.23% |
| Kapitalska družba, d.d. | 365,175 | 5.59% | 365,175 | 5.59% |
| Slovenian Sovereign Holding | ||||
| (Slovenski državni holding d.d.) | 277,839 | 4.25% | 277,839 | 4.25% |
| (SSH – SDH) | ||||
| Domestic financial companies | 247,339 | 3.78% | 271,723 | 4.16% |
| and funds | ||||
| Domestic legal entities | 143,797 | 2.20% | 150,352 | 2.30% |
| Treasury shares | 36,836 | 0.56% | 36,836 | 0.56% |
| Total | 6,535,478 | 100% | 6,535,478 | 100% |
* Natural persons also include natural persons independently performing a gainful activity on the market.
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 2023.
Share premium
The share premium may be used under the conditions and for the purpose set by the law. As at 31
December 2023, Telekom Slovenije's share premium amounted to EUR 180,956 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 2023.
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 excess share premium and legal reserves can be used to
increase share capital from a company’s assets and to cover losses brought forward, if revenue reserves
are not at the same time used for pay-out of profits to shareholders.
Treasury shares
In 2023 the Company did not acquire treasury shares. As at 31 December 2023, the Company had
36,836 treasury shares, which equals 0.56% of all issued shares.
The value of treasury shares in the amount of EUR 4,065 thousand is disclosed as a deductible item
from equity 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
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
215
increases, and for covering all types of 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 loss and loss brought forward, if this loss cannot be settled by means of any other sources, and
for creating treasury shares if no other funds are available.
Other revenue reserves
When compiling the Annual Report, the Group or the Company may form other revenue reserves up to
50% of net profit for the year, less amounts used for statutory or legal reserves. Other revenue 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 retained net earnings brought forward from previous years and net profit or
loss for the current year.
Based on the resolution adopted by the General Meeting of Shareholders on 16 June 2023, the
accumulated profit for 2022 in the amount of EUR 40,293 thousand was not distributed, as the
distribution was not voted through at the General Meeting of Shareholders, thus all accumulated profit
remained undistributed and increases the retained net earnings from previous years.
Determination of accumulated profit of Telekom Slovenije for 2023
| in EUR | |
| Net profit or loss for 2023 | 23,863,902.71 |
| Net profit or loss brought forward | 46,627,849.39 |
| Decrease in non-current deferred development costs | -3,984,190.99 |
| Total | 66,507,561.11 |
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.
Changes in fair value reserve for financial instruments are shown in the statement of other
comprehensive income.
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 | Telekom Slovenije | |||
| In EUR thousand | 31 Dec 2023 | 31 Dec 2022 | 31 Dec | 31 Dec |
| 2023 | 2022 | |||
| Non-current contract liabilities | 406 | 740 | 352 | 532 |
| Non-current deffered revenue - leases | 19,324 | 16,332 | 18,885 | 15,893 |
| Total non-current contract liabilities | 19,730 | 17,072 | 19,237 | 16,425 |
Non-current deferred revenue – leases refer to leases of base stations and leases of lines in Slovenia
and abroad.The increase is due to the conclusion of new lease agreements.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
216
32. Provisions
Changes in provisions of the Telekom Slovenije Group in 2023
| Transfer | Changes in | |||||||
| In EUR | 31 Dec 2022 | to | Drawing | Reversal | Formation | discount | Reclassifications | 31 Dec |
| thousand | current | rates | 2023 | |||||
| portion | ||||||||
| Provisions for | 266 | 0 | 0 | 0 | 2,207 | 0 | 1,688 | 4,161 |
| probable | ||||||||
| liabilities resulting | ||||||||
| from legal claims | ||||||||
| Provisions for | 2,222 | 0 | -190 | 0 | 235 | 148 | 0 | 2,415 |
| jubilee rewards | ||||||||
| Provisions for | 8,487 | 0 | -101 | -94 | 449 | 371 | 0 | 9,112 |
| severance | ||||||||
| payments upon | ||||||||
| retirement | ||||||||
| Provisions for | 2,584 | 0 | -29 | 7 | 27 | 226 | 0 | 2,815 |
| estimated costs | ||||||||
| of the removal of | ||||||||
| receiving- | ||||||||
| transmitting | ||||||||
| stations | ||||||||
| Other provisions | 6,435 | -36 | -589 | 0 | 1,577 | 0 | -1,688 | 5,699 |
| Provisions for | 1,226 | 0 | -1,168 | -59 | 510 | 0 | 0 | 509 |
| restructuring | ||||||||
| Total provisions | 21,220 | -36 | -2,077 | -146 | 5,005 | 745 | 0 | 24,711 |
Changes in provisions of the Telekom Slovenije Group in 2022
| Transfer | Changes | Exchange | ||||||
| In EUR thousand | 31 Dec 2021 | to current | Drawing | Reversal | Formation | in | rate | 31 Dec |
| portion | discount | differences | 2022 | |||||
| rates | ||||||||
| Provisions for | 250 | 0 | 0 | 0 | 16 | 0 | 0 | 266 |
| probable liabilities | ||||||||
| resulting from legal | ||||||||
| claims | ||||||||
| Provisions for jubilee | 2,157 | 0 | -167 | -2 | 693 | -459 | 0 | 2,222 |
| rewards | ||||||||
| Provisions for | ||||||||
| severance payments | 11,731 | 0 | -121 | -3,637 | 400 | 114 | 0 | 8,487 |
| upon retirement | ||||||||
| Provisions for | 3,956 | 0 | -31 | 1 | 99 | -1,441 | 0 | 2,584 |
| estimated costs of the | ||||||||
| removal of receiving- | ||||||||
| transmitting stations | ||||||||
| Other provisions | 4,701 | -75 | -796 | -12 | 2,617 | 0 | 0 | 6,435 |
| Provisions for | 268 | 0 | -199 | -70 | 1,227 | 0 | 0 | 1,226 |
| restructuring | ||||||||
| Total provisions | 23,063 | -75 | -1,314 | -3,720 | 5,052 | -1,786 | 0 | 21,220 |
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
217
Changes in provisions of the company Telekom Slovenije in 2023
| In EUR thousand | 31 Dec 2022 | Drawing | Reversal | Formation | Changes in | Reclassifications | 31 Dec |
| discount rates | 2023 | ||||||
| Provisions for | 0 | 0 | 0 | 2,207 | 0 | 1,688 | 3,895 |
| probable liabilities | |||||||
| resulting from legal | |||||||
| claims | |||||||
| Provisions for jubilee | 1,770 | -160 | 0 | 175 | 121 | 0 | 1,906 |
| rewards | |||||||
| Provisions for | |||||||
| severance payments | 6,858 | -78 | -39 | 253 | 304 | 0 | 7,298 |
| upon retirement | |||||||
| Provisions for | 2,585 | -29 | 7 | 27 | 227 | 0 | 2,817 |
| estimated costs of the | |||||||
| removal of receiving- | |||||||
| transmitting stations | |||||||
| Other provisions | 5,920 | -19 | 0 | 1,010 | 0 | -1,688 | 5,223 |
| Provisions for | 792 | -792 | 0 | 0 | 0 | 0 | 0 |
| restructuring | |||||||
| Total provisions | 17,925 | -1,078 | -32 | 3,672 | 652 | 0 | 21,139 |
Changes in provisions of the company Telekom Slovenije in 2022
| In EUR thousand | 31 Dec 2021 | Drawing | Reversal | Formation | Changes in | 31 Dec 2022 |
| discount rates | ||||||
| Provisions for jubilee rewards | 1,719 | -133 | 0 | 558 | -374 | 1,770 |
| Provisions for severance payments | 9,608 | -54 | -3,119 | 329 | 94 | 6,858 |
| upon retirement | ||||||
| Provisions for estimated costs of | ||||||
| the removal of receiving- | 3,956 | -31 | 1 | 99 | -1,440 | 2,585 |
| transmitting stations | ||||||
| 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 |
Provisions for probable liabilities resulting from legal claims
Provisions for liabilities from probable legal claims are formed on the basis of the estimate of probable
outcome, conducted with a high level of prudence. Maturity date of the liability cannot be determined.
Based on the legal opinions obtained and the management's estimate, provisions were formed for legal
claims in the amount of EUR 4,161 thousand. The Telekom Slovenije Group was primarily successful in
cases finally concluded up to this date, which it also publishes promptly in accordance with the rules of
the Stock Exchange.
Total damages claimed in pending legal claims brought against the Telekom Slovenije Group companies
amount to EUR 250,542 thousand (in 2022: EUR 188,105 thousand). Total damages claimed in pending
legal claims brought against Telekom Slovenije amount to EUR 247,802 thousand (in 2022: EUR
185,365 thousand). For more information see Note 41 Contingent liabilities and contingent assets,
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
218
Provisions for severance pays and jubilee rewards
Provisions for severance pays and jubilee rewards are based on actuarial calculations.
| Telekom Slovenije Group | Telekom Slovenije | |||||
| Provisions | Provisions | Provisions | Provisions | |||
| In EUR thousand | for jubilee | for | Total | for jubilee | for | Total |
| rewards | severance | rewards | severance | |||
| pays | pays | |||||
| Provisions as at 01 January 2022 | 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 |
| Termination of employment | -31 | -116 | -147 | -17 | -65 | -82 |
| (severance) | ||||||
| Actuarial gains (+) and losses (-) | 100 | -3,661 | -3,562 | 79 | -3119 | -3,041 |
| - due to changes in financial | -496 | -3,395 | -3,891 | -391 | -2774 | -3,165 |
| assumptions | ||||||
| - 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 December 2022 | 2,221 | 8,488 | 10,709 | 1,770 | 6,857 | 8,627 |
| Interest cost | 100 | 376 | 476 | 79 | 304 | 384 |
| Current service cost | 140 | 325 | 465 | 102 | 253 | 355 |
| Termination of employment | -2 | -12 | -13 | 0 | 0 | 0 |
| (severance) | ||||||
| Actuarial gains (+) and losses (-) | 152 | 53 | 205 | 115 | -39 | 77 |
| - due to changes in financial | 53 | 286 | 339 | 42 | 232 | 273 |
| assumptions | ||||||
| - due to experience-based adjustments | 99 | -232 | -134 | 74 | -270 | -197 |
| Payments during the year | -197 | -118 | -315 | -160 | -78 | -239 |
| Provisions as at 31 December 2023 | 2,415 | 9,112 | 11,527 | 1,906 | 7,298 | 9,204 |
| Planned | Planned | ||||||
| payments | Telekom Slovenije Group | payments | Telekom Slovenije | ||||
| In EUR | In EUR | ||||||
| thousand | thousand | ||||||
| Period | Severance | Jubilee | Total | Period | Severance | Jubilee | Total |
| pay | bonuses | pay | bonuses | ||||
| Up to 1 year | 481 | 214 | 694 | Up to 1 year | 366 | 170 | 536 |
| > 1 - 2 years | 306 | 256 | 561 | > 1 - 2 years | 259 | 215 | 474 |
| > 2 - 3 years | 720 | 324 | 1,045 | > 2 - 3 years | 569 | 236 | 805 |
| > 3 - 4 years | 870 | 304 | 1,174 | > 3 - 4 years | 636 | 239 | 875 |
| > 4 - 5 years | 626 | 244 | 869 | > 4 - 5 years | 468 | 200 | 668 |
| > 5 - 10 years | 4,321 | 1,447 | 5,768 | > 5 - 10 years | 3,416 | 1,123 | 4,539 |
| > 10 years | 17,378 | 3,382 | 20,760 | > 10 years | 13,435 | 2,432 | 15,866 |
| Total | 24,701 | 6,171 | 30,872 | Total | 19,149 | 4,614 | 23,763 |
The company Telekom Slovenije and the Telekom Slovenije Group are exposed to the risks arising from
long-term employee benefits, primarily based on:
- 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, employee salaries, fixed amounts of bonuses and tax-free amounts of bonuses;
- 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 bonus amounts);
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
219
- 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:
- 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 3.7% for the company
Telekom Slovenije, d.d. for 2023 (2022: 4,4%), and 4.1% for the Telekom Slovenije Group for
2023 (2022: 5,0%), weighted by the number of employees in each company, while the
estimated retirement date is determined as the day when the first condition for retirement is
met, taking into account the legislation of the Republic of Slovenia;
- financial assumptions:
• expected growth of average salaries in the Republic of Slovenia takes into account IMAD
projections: Autumn Forecast of Economic Trends 2021, and is determined at 2.5% long-term
annual growth;
• expected increase in the salaries of employees in the Telekom Slovenije Group takes into
account the growth due to inflation, promotion and length of service allowance and amounts
to:
| Long-term salary growth in the company | from 2024 |
| Telekom Slovenije | 0.76% |
| GVO | 2.88% |
| Avtenta | 2.00% |
| TSmedia | 1.10% |
| Soline | 2.00% |
| TSinpo | 0.82% |
- the applied interest rate equals 4.07% p.a., which corresponds to the yield on 10-year investment
grade corporate bonds from euro area issuers at the end of November 2023, for Telekom Slovenije,
Soline, GVO, Avtenta, and TSinpo, and 4.17% p.a., which corresponds to the yield on 15-year
investment grade corporate bonds from euro area issuers at the end of November 2023, for TSmedia.
Sensitivity analysis of changes in actuarial assumptions in the Telekom Slovenije Group
| Assumption | Deviation | Description | Total | Severance | Jubilee rewards |
| In EUR thousand | pays | ||||
| Central scenario | 0.00% | balance | 11,527 | 9,112 | 2,415 |
| -0.50% | balance | 12,072 | 9,571 | 2,501 | |
| Discount interest rate | (difference) | -545 | -459 | -86 | |
| 0.50% | balance | 11,022 | 8,687 | 2,334 | |
| (difference) | -506 | -425 | -81 | ||
| -0.50% | balance | 11,008 | 8,675 | 2,333 | |
| Salary growth | (difference) | -520 | -437 | -83 | |
| 0.50% | balance | 12,082 | 9,580 | 2,502 | |
| (difference) | -555 | -468 | -87 |
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
220
Sensitivity analysis of changes in actuarial assumptions in Telekom Slovenije
| Assumption | Deviation | Description | Total | Severance | Jubilee rewards |
| In EUR thousand | pays | ||||
| Central scenario | 0.00% | balance | 9,204 | 7,298 | 1,906 |
| -0.50% | balance | 9,638 | 7,666 | 1,973 | |
| Discount interest rate | (difference) | -435 | -368 | -67 | |
| 0.50% | balance | 8,799 | 6,956 | 1,843 | |
| (difference) | -404 | -341 | -63 | ||
| -0.50% | balance | 8,788 | 6,946 | 1,842 | |
| Salary growth | (difference) | -416 | -352 | -64 | |
| 0.50% | balance | 9,647 | 7,674 | 1,974 | |
| (difference) | -444 | -376 | -68 |
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 4.07% p.a., which corresponds to the 10-year yield on investment-grade corporate bonds from euro
area issuers as at the end of November 2023.
Other provisions
Among other provisions, the Group and the Company disclose liabilities from concluded contracts, from
which arises a present obligation with uncertain repayment term.
Provisions for restructuring
In 2023, the Group utilised provisions for restructuring in the amount of EUR 1,168 thousand, which
were created in the previous reporting period, and formed new ones in the amount of EUR 510 thousand.
Telekom Slovenije did not establish any provisions for corporate restructuring in 2023.
33. Other liabilities
| Telekom Slovenije Group | Telekom Slovenije | |||
| In EUR thousand | 31 Dec 2023 | 31 Dec 2022 | 31 Dec 2023 | 31 Dec 2022 |
| Trade payables for program rights | 17,008 | 7,513 | 17,191 | 3,634 |
| Other | 6,328 | 664 | 125 | 213 |
| Total non-current trade payables | 23,336 | 8,177 | 17,316 | 3,847 |
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, refer to Note 45 Financial instruments and
financial risk management.
| Telekom Slovenije Group | Telekom Slovenije | |||
| In EUR thousand | 31 Dec 2023 | 31 Dec 2022 | 31 Dec 2023 | 31 Dec 2022 |
| Long-term borrowings | ||||
| Bank loans | 336,618 | 369,023 | 336,618 | 369,023 |
| - short-term portion of long-term loans | -30,040 | -132,340 | -30,040 | -132,340 |
| - long-term portion of loans | 306,578 | 236,683 | 306,578 | 236,683 |
| Total non-current portion | 306,578 | 236,683 | 306,578 | 236,683 |
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
221
| Short-term borrowings | ||||
| Short-term portion of long-term bank loans | 30,040 | 132,340 | 30,040 | 132,340 |
| Interest and other expenses from loans | 558 | 417 | 558 | 417 |
| Total short-term portion | 30,598 | 132,757 | 30,598 | 132,757 |
The Group’s non-current financial liabilities relate to long-term borrowings from banks by Telekom
Slovenije. The first long-term loan is a syndicated loan comprising three tranches, two of which fell due
in 2023, and the last one maturing in 2025. The loan is linked to a variable interest rate with a mark-up
of 1.35% and is collateralised by blank bills of exchange. The second long-term loan is a syndicated
loan consisting of three tranches maturing in 2028. The loan is linked to a variable interest rate with
mark-ups ranging from 0.75% to 1.00% and is collateralised by blank bills of exchange. The third long-
term loan has been received from the European Investment Bank (EIB). It comprises four tranches,
repaid according to amortisation schedules until 2032. The loan is linked to a fixed interest rate with
mark-up ranging from 1.571% to 3.427% and is collateralised by blank bills of exchange. The fourth
long-term loan is a syndicated loan drawn at the end of 2023, falling due in 2030. The loan is linked to
a variable interest rate with a mark-up of 0.75% and is collateralised by blank bills of exchange.
To ensure liquidity, the Group has short-term facilities with banks falling due in 2024. The liquidity buffer
in the form of revolving loans and overdraft facility totalling EUR 55 million was not drawn as at 31
December 2023. Revolving loans are linked to a variable interest rate with a 0.80% mark-up. The
overdraft facility is linked to a fixed interest rate equalling 4.43%.
Under credit agreements, banks require that the financial covenants at the Group level be fulfilled: the
net financial debt/EBIDTA ratio, equity-to-total assets ratio and equity as well as the EBIDTA/finance
expenses ratio. Failure to fulfil them may provide grounds to demand early repayment of the loans. As
at 31 December 2023, all financial covenants on the Group level were fulfilled.
Changes in borrowings
| Telekom Slovenije | Telekom Slovenije | |||
| In EUR thousand | 2023 | 2022 | 2023 | 2022 |
| Balance as at 1 January | 369,440 | 349,038 | 369,440 | 350,438 |
| Drawing | 100,000 | 60,000 | 100,000 | 60,000 |
| Repayments | -132,527 | -40,220 | -132,527 | -41,620 |
| Other | 263 | 622 | 263 | 622 |
| Balance as at 31 Dec. | 337,176 | 369,440 | 337,176 | 369,440 |
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 loans, 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 | Telekom Slovenije | |||
| In EUR thousand | 31 Dec 2023 | 31 Dec 2022 | 31 Dec | 31 Dec |
| 2023 | 2022 | |||
| Non-current liabilities arising from right-of-use assets | 65,216 | 59,342 | 70,267 | 60,871 |
| Current liabilities arising from right-of-use assets | 9,868 | 10,603 | 11,512 | 12,527 |
| Total liabilities arising from right-of-use assets | 75,084 | 69,945 | 81,779 | 73,398 |
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
222
Changes in lease liabilities
| In EUR thousand | Telekom Slovenije Group | Telekom Slovenije |
| As at 1 January 2022 | 66,556 | 73,697 |
| Increases | 12,547 | 8,424 |
| Interest | 2,122 | 2,072 |
| Lease payments | -11,280 | -10,795 |
| As at 31 December 2022 | 69,945 | 73,398 |
| Increases | 14,625 | 18,646 |
| Interest | 2,829 | 2,049 |
| Lease payments | -12,315 | -12,314 |
| As at 31 December 2023 | 75,084 | 81,779 |
The cash flow from leases amounts to EUR 12,315 thousand for the Telekom Slovenije Group (in 2022:
EUR 11,280 thousand) and EUR 12,314 thousand for the company Telekom Slovenije (in 2022: EUR
10,795 thousand), and is disclosed as cash flow arising from financing activities. The main lease element
within the cash flow statement is only the repayment of the lease principal, whereas interest payments
are included in the interest paid line.
36. Other financial liabilities
Financial liabilities
| Telekom Slovenije Group | Telekom Slovenije | |||
| In EUR thousand | 31 Dec 2023 | 31 Dec 2022 | 31 Dec | 31 Dec |
| 2023 | 2022 | |||
| Other financial liabilities | 2 | 2 | 0 | 0 |
| Total other current financial liabilities | 2 | 2 | 0 | 0 |
37. Operating liabilities
| Telekom Slovenije Group | Telekom Slovenije | |||
| In EUR thousand | 31 Dec 2023 | 31 Dec 2022 | 31 Dec | 31 Dec |
| 2023 | 2022 | |||
| Trade payables | 68,532 | 62,737 | 55,659 | 47,146 |
| Liabilities to domestic operators | 4,768 | 5,529 | 11,910 | 13,726 |
| Liabilities to foreign operators | 4,955 | 7,588 | 5,472 | 8,074 |
| VAT and other tax liabilities | 8,485 | 6,636 | 7,350 | 5,176 |
| Liabilities to employees | 8,843 | 8,120 | 6,866 | 6,504 |
| Liabilities for advances and warranties | 1,928 | 1,722 | 425 | 378 |
| Other liabilities | 26,235 | 31,583 | 20,540 | 18,296 |
| Total operating and other liabilities | 123,746 | 123,915 | 108,222 | 99,300 |
Operating liabilities are non-interest bearing and are generally settled in the agreed period of 8 to 120
days. The same applies to liabilities to operators which are also non-interest bearing and are generally
settled in an agreed-upon term between 10 and 90 days from the date of the invoice issue.
Other liabilities of the Company and the Group mostly include liabilities from cession and assignment in
the amount of EUR 1,659 thousand (in 2022: EUR 2,886 thousand), programme rights for TV content
in the amount of EUR 16,472 thousand (in 2022: EUR 12,619 thousand), and other current liabilities.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
223
38. Contract liabilities (short-term)
| Telekom Slovenije Group | Telekom Slovenije | |||
| In EUR thousand | 31 Dec 2023 | 31 Dec 2022 | 31 Dec 2023 | 31 Dec 2022 |
| Short-term deferred revenue-leases | 2,945 | 2,683 | 2,945 | 2,801 |
| Other short-term contract liabilities | 8,962 | 7,592 | 2,834 | 2,801 |
| Total current contract liabilities | 11,907 | 10,275 | 5,779 | 5,602 |
Other short-term 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 | Telekom Slovenije | |||
| In EUR thousand | 31 Dec | 31 Dec | 31 Dec | |
| 31 Dec 2023 | 2022 | 2023 | 2022 | |
| Current portion of government grant for property, | 40 | 42 | 39 | 40 |
| plant and equipment | ||||
| Other current deferred revenue - co-funding of | 1,214 | 1,738 | 185 | 443 |
| European projects | ||||
| Total current deferred revenue | 1,254 | 1,780 | 224 | 483 |
Short-term accrued costs
| Telekom Slovenije Group | Telekom Slovenije | |||
| In EUR thousand | 31 Dec 2023 | 31 Dec 2022 | 31 Dec 2023 | 31 Dec 2022 |
| Accrued costs and expenses for services rendered and | 10,687 | 11,487 | 7,443 | 8,187 |
| goods supplied (invoices not issued yet) | ||||
| Accrued costs and deferred revenue - calculation of | 11,355 | 12,425 | 11,361 | 12,433 |
| international services | ||||
| Accrued salaries, bonuses and severance pays | 8,033 | 5,845 | 7,809 | 5,686 |
| Accrued costs for unused annual leave | 2,944 | 4,079 | 2,215 | 3,372 |
| Other | 36 | 75 | 0 | 0 |
| Total accrued costs and expenses | 33,055 | 33,911 | 28,828 | 29,678 |
| Total accrued liabilities | 34,309 | 35,691 | 29,052 | 30,161 |
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.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
224
Book and fair values of financial instruments of the Telekom Slovenije Group as at 31 December 2023
| 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 | 2,170 | 2,170 | 2,170 | 0 | 0 |
| value through other comprehensive | |||||
| income | |||||
| Investments in shares and interests not | |||||
| listed on the stock exchange, measured at | 284 | 284 | 0 | 0 | 284 |
| fair value through other comprehensive | |||||
| income | |||||
| Loans granted | 2 | 2 | 0 | 2 | 0 |
| Other non-current financial assets | 16 | 16 | 0 | 16 | 0 |
| Trade receivables | 19,685 | 19,685 | 0 | 19,685 | 0 |
| Current financial assets | |||||
| Loans granted | 7 | 7 | 0 | 7 | 0 |
| Other current financial assets | 1,039 | 1,039 | 0 | 1,039 | 0 |
| Trade and other receivables | 171,055 | 171,055 | 0 | 171,055 | 0 |
| Cash and cash equivalents | 55,479 | 55,479 | 0 | 55,479 | 0 |
| Non-current financial liabilities | |||||
| Borrowings | 306,578 | 306,578 | 0 | 306,578 | 0 |
| Other liabilities | 23,336 | 23,336 | 0 | 23,336 | 0 |
| Current financial liabilities | |||||
| Borrowings | 30,598 | 30,598 | 0 | 30,598 | 0 |
| Other financial liabilities | 2 | 2 | 0 | 2 | 0 |
| Operating liabilities | 123,746 | 123,746 | 0 | 123,746 | 0 |
Book and fair values of financial instruments of the Telekom Slovenije Group as at 31 December 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 | 2,139 | 2,139 | 2,139 | 0 | 0 |
| value through other comprehensive | |||||
| income | |||||
| Investments in shares and interests not | |||||
| listed on the stock exchange, measured | 284 | 284 | 0 | 0 | 284 |
| at fair value through other comprehensive | |||||
| income | |||||
| Loans granted | 9 | 9 | 0 | 9 | 0 |
| Other non-current financial assets | 16 | 16 | 0 | 16 | 0 |
| Trade receivables | 19,251 | 19,251 | 0 | 19,251 | 0 |
| Current financial assets | |||||
| Loans granted | 16 | 16 | 0 | 16 | 0 |
| Other current financial assets | 802 | 802 | 0 | 802 | 0 |
| Fair value of interest rate swap | 19 | 19 | 0 | 19 | 0 |
| Trade and other receivables | 159,067 | 159,067 | 0 | 159,067 | 0 |
| Cash and cash equivalents | 37,382 | 37,382 | 0 | 37,382 | 0 |
| Non-current financial liabilities | |||||
| Borrowings | 236,683 | 236,683 | 0 | 236,683 | 0 |
| Other liabilities | 8,177 | 8,177 | 0 | 8,177 | 0 |
| Current financial liabilities | |||||
| Borrowings | 132,757 | 132,757 | 0 | 132,757 | 0 |
| Other financial liabilities | 2 | 2 | 0 | 2 | 0 |
| Operating liabilities | 123,915 | 123,915 | 0 | 123,915 | 0 |
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
225
Book and fair values of financial instruments of the company Telekom Slovenije as at 31 December 2023
| 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 | 2,170 | 2,170 | 2,170 | 0 | 0 |
| value through other comprehensive income | |||||
| Investments in shares and interests not | |||||
| listed on the stock exchange, measured at | 284 | 284 | 0 | 0 | 284 |
| fair value through other comprehensive | |||||
| income | |||||
| Loans granted | 19,560 | 19,560 | 0 | 19,560 | 0 |
| Trade receivables | 19,684 | 19,684 | 0 | 19,684 | 0 |
| Current financial assets | |||||
| Loans granted | 17,966 | 17,966 | 0 | 17,966 | 0 |
| Other current financial assets | 36 | 36 | 36 | ||
| Trade and other receivables | 161,533 | 161,533 | 0 | 161,533 | 0 |
| Cash and cash equivalents | 44,376 | 44,376 | 0 | 44,376 | 0 |
| Non-current financial liabilities | |||||
| Borrowings | 306,578 | 306,578 | 0 | 306,578 | 0 |
| Operating liabilities | 17,316 | 17,316 | 0 | 17,316 | 0 |
| Current financial liabilities | |||||
| Borrowings | 30,598 | 30,598 | 0 | 30,598 | 0 |
| Operating liabilities | 108,222 | 108,222 | 0 | 108,222 | 0 |
Book and fair values of financial instruments of the company Telekom Slovenije as at 31 December 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 | 2,139 | 2,139 | 2,139 | 0 | 0 |
| value through other comprehensive income | |||||
| Investments in shares and interests not | |||||
| listed on the stock exchange, measured at | 284 | 284 | 0 | 0 | 284 |
| fair value through other comprehensive | |||||
| income | |||||
| Loans granted | 46,082 | 46,082 | 0 | 46,082 | 0 |
| Trade receivables | 19,246 | 19,246 | 0 | 19,246 | 0 |
| Current financial assets | |||||
| Loans granted | 11,496 | 11,496 | 0 | 11,496 | 0 |
| Fair value of interest rate swap | 20 | 20 | 0 | 20 | 0 |
| Trade and other receivables | 152,170 | 152,170 | 0 | 152,170 | 0 |
| Cash and cash equivalents | 19,573 | 19,573 | 0 | 19,573 | 0 |
| Non-current financial liabilities | |||||
| Borrowings | 236,683 | 236,683 | 0 | 236,683 | 0 |
| Operating liabilities | 3,847 | 3,847 | 0 | 3,847 | 0 |
| Current financial liabilities | |||||
| Borrowings | 132,757 | 132,757 | 0 | 132,757 | 0 |
| Operating liabilities | 99,300 | 99,300 | 0 | 99,300 | 0 |
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 2023 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 valuation
was carried out on the basis of market comparisons (for flats) and on a return-based approach, using a
discount rate of 7,85 %. See Note 4 Fair value measurement.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
226
Book and fair values as at 31 December 2023
| Telekom Slovenije Group | Book value | Fair value | Level 1 | Level 2 | Level 3 |
| in EUR thousand | |||||
| Investment property | 3,296 | 5,010 | 5,010 |
| Telekom Slovenije | Book value | Fair value | Level 1 | Level 2 | Level 3 |
| in EUR thousand | |||||
| Investment property | 3,296 | 5,010 | 5,010 |
Book and fair values as at 31 December 2022
| Telekom Slovenije Group | Book value | Fair value | Level 1 | Level 2 | Level 3 |
| in EUR thousand | |||||
| Investment property | 4,304 | 5,102 | 5,102 |
| Telekom Slovenije | Book value | Fair value | Level 1 | Level 2 | Level 3 |
| in EUR thousand | |||||
| Investment property | 7,457 | 9,190 | 9,190 |
41. Contingent liabilities and contingent assets
Amounts claimed in litigation
Telekom Slovenije Group
| In EUR thousand | 2023 | 2022 |
| Amounts claimed in litigation | 250,542 | 188,105 |
As at the balance sheet date, the Group recorded 83 legal claims (31 December 2022: 107).
Based on the legal opinions obtained and the management's estimate, provisions were formed for legal
claims in the amount of EUR 4,161 thousand. In 2022, provisions for legal claims amounted to EUR 266
thousand. For more details see Note 32 Provisions.
The company Telekom Slovenije
| In EUR thousand | 2023 | 2022 |
| Amounts claimed in litigation | 247,802 | 185,365 |
As at the balance sheet date, the Company recorded 41 legal claims (31 December 2022: 66). Based
on the management’s assessment and legal opinions obtained, provisions amounting to EUR 3,895
thousand were made; in the previous year, the Company did not have any provisions for legal claims. For
more details see Note 32 Provisions.
Letter of support provided to subsidiary
Telekom Slovenije, as the sole shareholder of Soline, has issued a letter of support to Soline In this
letter, it declares its commitment to continue providing financial support for Soline's ongoing operations.
Furthermore, it states that this support will not be terminated within twelve months following the signing
of the letter of support.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
227
Guarantees given
The Group and the Company provide the following bonds:
| Telekom Slovenije | Telekom Slovenije | |||
| Group | ||||
| In EUR thousand | 31 Dec | 31 Dec | 31 Dec | 31 Dec |
| 2023 | 2022 | 2023 | 2022 | |
| Performance bonds and warranty bonds | 11,741 | 11,507 | 8,480 | 8,281 |
| Other guarantees | 1,020 | 218 | 28 | 170 |
| Total guarantees issued | 12,761 | 11,725 | 8,508 | 8,451 |
None of the stated liabilities qualifies for recognition among balance sheet items. Thus, no related
material consequences are expected for the Group and the Company.
Other contingent assets and liabilities
Under contingent assets and liabilities, the Group and the Company disclose other assets and liabilities
arising from the extension of rights amounting to EUR 9,118 thousand, which do not qualify for
recognition in the balance sheet as at 31 December 2023, mainly due to the uncertainty of settlement
and the passage of time.
42. Related party transactions
Related parties are individuals or companies related to the Telekom Slovenije Group.
Transactions with individuals
As at 31 December 2023, related individuals (Chairman and members of the Supervisory Board) held a
total of 1,178 TLSG shares, representing 0.01802% of share capital.
No loans were granted to related individuals in 2023.
Data on groups of persons in 2023
| Receipts as profit pay-outs | ||
| Total gross | based on the resolution of | |
| In EUR thousand | receipts | the General Meeting of |
| Shareholders | ||
| Members of the Management Board total | 920 | - |
| Members of the Supervisory Board | 245 | - |
| Members of the Supervisory Board committees | 24 | - |
| Other managerial staff employed under contracts not | 4,505 | - |
| subject to the tariff part of the Collective Agreement |
The members of the Management Board, the Supervisory Board, the Supervisory Board Committees,
and other executives of the Company employed under a contract that is not subject to the tariff part of
the Collective Agreement did not have any outstanding loans.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
228
Data on groups of persons in 2022
| Receipts as profit | Loans | |||
| Total | pay-outs based | |||
| gross | on the resolution | Unpaid | ||
| In EUR thousand | receipts | of the General | portion at 31 | Repayments |
| Meeting of | December | in 2022 | ||
| Shareholders | 2022 | |||
| Members of the Management Board total | 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 | 4,282 | - | - | 1 |
| Collective Agreement | ||||
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 Management Board members in 2023 – breakdown
| Voluntary | ||||||||
| In EUR | Salary | Cost | Holiday | Insurance | Bonuses | supplementary | Total | Total |
| reimbursement | allowance | premiums | pension | gross** | net*** | |||
| insurance | ||||||||
| Boštjan Košak | ||||||||
| (1 Jan. - 31 | 172,531 | 1,818 | 2,159 | 288 | 5,906 | 2,904 | 185,606 | 86,638 |
| Dec.) | ||||||||
| Boštjan Škufca | ||||||||
| Zaveršek | 163,906 | 1,845 | 2,159 | 228 | 0 | 2,904 | 171,042 | 86,948 |
| (1 Jan. - 31 | ||||||||
| Dec.) | ||||||||
| Špela Fortin | ||||||||
| (1 Jan. - 31 | 154,683 | 1,755 | 2,159 | 776 | 6,510 | 2,904 | 168,787 | 76,141 |
| Dec.) | ||||||||
| Irma Gubanec | ||||||||
| (1 Jan. - 31 | 155,271 | 2,919 | 2,159 | 771 | 0 | 2,904 | 164,024 | 82,860 |
| Dec.) | ||||||||
| Vesna Prodnik | ||||||||
| (1 Jan. - 31 | 155,271 | 2,934 | 2,159 | 776 | 6,438 | 2,904 | 170,482 | 77,593 |
| Dec.) | ||||||||
| Mitja Štular | ||||||||
| (1 Jan. - 13 | 54,380 | 0 | 720 | 33 | 3,563 | 1,210 | 59,906 | 29,716 |
| May)* | ||||||||
| Total | 856,042 | 11,271 | 11,515 | 2,872 | 22,417 | 15,730 | 919,847 | 439,896 |
* Remuneration during the notice period when he no longer held the position of a member of the Management Board.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
229
Remuneration of the Management Board members in 2022 – breakdown
| Voluntary | ||||||||||
| Salary | Variable | Other | Cost | Holiday | Insurance | Bonuses | supplementary | Total | Total | |
| In EUR | pay* | personal | reimbursement | allowance | premiums | pension | gross** | net*** | ||
| earnings | insurance | |||||||||
| Boštjan Košak | ||||||||||
| (4 Oct. - 31 | 40,228 | 0 | 0 | 664 | 502 | 10 | 1,898 | 726 | 44,028 | 20,792 |
| Dec.) | ||||||||||
| Boštjan Škufca | ||||||||||
| Zaveršek (14 | 20,591 | 0 | 0 | 266 | 331 | 0 | 591 | 484 | 22,263 | 11,339 |
| Nov. - 31 Dec.) | ||||||||||
| Špela Fortin (1 |
145,686 | 18,321 | 0 | 1,541 | 1,924 | 1,013 | 6,387 | 2,904 | 177,776 | 81,135 |
| Jan. - 31 Dec.) | ||||||||||
| Irma Gubanec | ||||||||||
| (12 Oct. - 31 | 32,699 | 0 | 0 | 675 | 502 | 81 | 0 | 726 | 34,683 | 18,347 |
| Dec.) | ||||||||||
| Vesna Prodnik | ||||||||||
| (14 Nov. - 31 | 19,508 | 0 | 0 | 271 | 331 | 81 | 1,202 | 484 | 21,877 | 10,088 |
| Dec.) | ||||||||||
| Barbara Galičič | ||||||||||
| Drakslar (1 Jan. | 114,251 | 11,913 | 80,582 | 1,171 | 1,443 | 790 | 5,414 | 2,420 | 217,984 | 97,350 |
| - 11 Oct.) | ||||||||||
| Tomaž Jontes | ||||||||||
| (1 Jan. - 1 | 103,933 | 41,123 | 689 | 823 | 1,283 | 871 | 5,579 | 2,178 | 156,479 | 71,679 |
| Sept.) | ||||||||||
| Cvetko Sršen (1 |
123,058 | 14,107 | 83,048 | 1,303 | 1,443 | 465 | 5,695 | 2,420 | 231,539 | 103,000 |
| Jan. - 3 Oct.) | ||||||||||
| Mitja Štular (1 | 146,148 | 12,753 | 0 | 1,127 | 1,924 | 544 | 6,790 | 2,904 | 172,190 | 86,048 |
| Jan. - 13 Nov.) | ||||||||||
| Tomaž Seljak | ||||||||||
| (for 2020 | 0 | 10,264 | 0 | 0 | 0 | 0 | 0 | 0 | 10,264 | 4,723 |
| and 2021) | ||||||||||
| Matjaž Beričič | ||||||||||
| (for 2020 | 0 | 5,061 | 0 | 0 | 0 | 0 | 0 | 0 | 5,061 | 2,957 |
| and 2021) | ||||||||||
| Vida Žurga | 0 | 2,939 | 0 | 0 | 0 | 0 | 0 | 0 | 2,939 | 1,717 |
| (for 2020) | ||||||||||
| Ranko Jelača |
0 | 718 | 0 | 0 | 0 | 0 | 0 | 0 | 718 | 419 |
| (for 2020) | ||||||||||
| Total | 746,102 | 117,199 | 164,319 | 7,841 | 9,683 | 3,855 | 33,556 | 15,246 | 1,097,801 | 509,594 |
*Variable remuneration refers to the part of the performance bonus, which was not paid in 2023.
** The total gross amount is the sum of all types of labour costs, including net receipts (reimbursement of costs), insurance premiums,
benefits and voluntary supplementary pension insurance (PDPZ).
*** The total net amount comprises the sum of net earnings of Management Board members, inclusive of insurance premiums and benefits,
which actually reduce net earnings of Management Board members, and exclusive of PDPZ, which is remitted to the pension company
and not to the members personally.
The members of the Management Board did not receive any profit pay-outs, options, or commissions.
The members of the Management Board were entitled to the attendance fees for performing the function
of a supervisory board member in the subsidiary GVO, d.o.o. as indicated below:
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
230
In 2023
| In EUR | Meetings | Basic pay | Total gross* | Total net** |
| External members | ||||
| Vesna Prodnik (1 Jan–31 Dec) | 1,073 | 5,085 | 6,158 | 4,478 |
| Total | 1,073 | 5,085 | 6,158 | 4,478 |
In 2022
| In EUR | Meetings | Basic pay | Total | Total net** |
| gross* | ||||
| External members | ||||
| Vesna Prodnik (9 Nov–31 Dec) | 138 | 563 | 701 | 509 |
| Mitja Štular (1 Jan–9 Nov) | 660 | 4,365 | 5,025 | 3,654 |
| Total | 798 | 4,928 | 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.
Remuneration of the Supervisory Board members in 2023 – breakdown
| In EUR | Meetings | Basic | Committees | Travel | Liability | Total | Total |
| pay | expenses | insurance | gross* | net** | |||
| External members | |||||||
| Žiga Debeljak (1 Jan–31 Dec) | 3,861 | 28,000 | 1,980 | 0 | 228 | 34,069 | 24,550 |
| Karla Pinter (1 Jan–31 Dec) | 3,861 | 22,400 | 1,980 | 0 | 228 | 28,469 | 20,477 |
| Marko Boštjančič (1 Jan–31 Dec) | 3,861 | 21,000 | 1,980 | 4,616 | 228 | 31,685 | 22,817 |
| Alenka Čok Pangeršič (1 Jan–31 Dec) | 3,586 | 17,500 | 2,948 | 0 | 228 | 24,262 | 17,418 |
| Mateja Čuk Orel (1 Jan–31 Dec) | 3,861 | 19,250 | 1,540 | 0 | 228 | 24,879 | 17,866 |
| Aleksander Igličar (1 Jan–31 Dec) | 3,586 | 19,250 | 3,168 | 0 | 228 | 26,232 | 18,850 |
| Internal members | |||||||
| Drago Kijevčanin (1 Jan–31 Dec) | 3,861 | 22,400 | 4,488 | 0 | 228 | 30,977 | 22,255 |
| Dušan Pišek (1 Jan–31 Dec) | 3,861 | 17,500 | 660 | 0 | 228 | 22,249 | 15,907 |
| Rok Pleteršek (1 Jan–31 Dec) | 3,861 | 17,500 | 660 | 0 | 228 | 22,249 | 15,907 |
| Total | 34,199 | 184,800 | 19,404 | 4,616 | 2,052 | 245,071 | 176,047 |
Remuneration of the Supervisory Board members in 2022 – breakdown
| In EUR | Meetings | Basic | Committees | Travel | Liability | Total | Total |
| pay | expenses | insurance | gross* | net** | |||
| External members | |||||||
| Žiga Debeljak (9 Sept–31 Dec) | 2,860 | 7,865 | 1,100 | 0 | 0 | 11,825 | 8,601 |
| Iztok Černoša (1 Jan–9 Sept) | 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 Sept–31 Dec) | 2,860 | 5,833 | 1,100 | 1,731 | 0 | 11,524 | 8,382 |
| Alenka Čok Pangeršič (9 Sept–31 Dec) | 2,860 | 5,396 | 660 | 0 | 0 | 8,916 | 6,484 |
| Mateja Čuk Orel (9 Sept–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 Sept) | 2,915 | 15,672 | 1,540 | 0 | 620 | 20,747 | 14,639 |
| Marko Kerin (1 Jan–9 Sept) | 2,915 | 16,644 | 3,564 | 0 | 620 | 23,743 | 16,818 |
| Jurij Toplak (1 Jan–9 Sept) | 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 June–31 Dec) | 4,180 | 9,755 | 220 | 0 | 0 | 14,155 | 10,295 |
| Jana Žižek Kuhar (1 Jan–2 June) | 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 earnings (travel expenses) and liability insurance.
**The total net amount includes the sum of all net receipts, including travel expenses.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
231
Remuneration of the Supervisory Board committee members in 2023 (breakdown)
| In EUR | Basic pay | Committees | Total gross* | Total net** |
| External committee members | ||||
| Janez Bešter (1 Jan–31 Dec) | 5,600 | 660 | 6,260 | 4,553 |
| Barbara Gorjup (1 Jan–31 Dec) | 5,600 | 3,168 | 8,768 | 6,377 |
| Marko Hočevar (1 Jan–31 Dec) | 5,600 | 2,948 | 8,548 | 6,217 |
| Total | 16,800 | 6,776 | 23,576 | 17,147 |
Remuneration of the Supervisory Board committee members in 2022 (breakdown)
| In EUR | Basic pay | Committees | Total gross* | Total net** |
| External committee members | ||||
| Janez Bešter (28 Nov–31 Dec) | 467 | 0 | 467 | 339 |
| Barbara Gorjup (1 Jan–31 Dec.) | 5,600 | 2,684 | 8,284 | 6,025 |
| Marko Hočevar (1 Jan–31 Dec) | 5,600 | 2,464 | 8,064 | 5,865 |
| Total | 11,667 | 5,148 | 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 earnings of the members of the Supervisory Board committees.
Supervisory Board
The attendance fees, remuneration for performing the function, travel expenses and insurance of the
Supervisory Board for the January 2023 - December 2023 period amount to EUR 245,072.76. This
includes Supervisory Board attendance fees, remuneration for performing the function, committee
attendance fees, liability insurance, reimbursement of expenses for external and internal members of
the Supervisory Board.
Attendance fees for the external members of the committees for the January 2023 - December 2023
period amount to EUR 23,576.12. This includes the cost of the attendance fees and remuneration for
the performance of functions.
For 2023, the members of the Company’s Supervisory Board received the following payments for
carrying out the functions of audit committee in the company Soline:
In 2023
| In EUR | Committees | Total gross* | Total net** |
| External members | |||
| Marko Hočevar (1 Jan–31 Dec) | 2,860 | 2,860 | 2,080 |
| Barbara Gorjup (1 Jan–31 Dec) | 3,080 | 3,080 | 2,240 |
| Drago Kijevčanin (1 Jan–31 Dec) | 3,080 | 3,080 | 2,240 |
| Aleksander Igličar (1 Jan–31 Dec) | 3,080 | 3,080 | 2,240 |
| Alenka Čok Pangeršič (1 Jan–31 Dec) | 2,860 | 2,860 | 2,080 |
| Total | 14,960 | 14,960 | 10,880 |
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
232
In 2022
| In EUR | Committees | Total gross* | Total net** |
| Marko Hočevar (1 Jan–31 Dec) | 1,320 | 1,320 | 960 |
| Barbara Gorjup (1 Jan–31 Dec) | 1,540 | 1,540 | 1,120 |
| Drago Kijevčanin (1 Jan–31 Dec) | 1,540 | 1,540 | 1,120 |
| Aleksander Igličar (1 Jan–31 Dec) | 1,540 | 1,540 | 1,120 |
| Marko Kerin (1 Jan–9 Sept) | 1,320 | 1,320 | 960 |
| Alenka Čok Pangeršič (14 Sept–31 Dec) | 220 | 220 | 160 |
| Total | 7,480 | 7,480 | 5,440 |
*The total gross amount is the sum of all committee costs.
**The total net amount is the sum of all net receipts of the Supervisory Board committee members.
For 2023, the members of the Company’s Supervisory Board received the following payments for
carrying out the functions of audit committee in the company Avtenta:
In 2023
| In EUR | Committees | Total gross | Total net |
| External committee members | |||
| Barbara Gorjup (1 Jan–31 Dec) | 2,420 | 2,420 | 1,760 |
| Marko Hočevar (1 Jan–31 Dec) | 2,200 | 2,200 | 1,600 |
| Aleksander Igličar (1 Jan–31 Dec) | 2,420 | 2,420 | 1,760 |
| Drago Kijevčanin (1 Jan–31 Dec) | 2,420 | 2,420 | 1,760 |
| Alenka Čok Pangeršič (1 Jan–31 Dec) | 2,200 | 2,200 | 1,600 |
| Total | 11,660 | 11,660 | 8,480 |
In 2022
| In EUR | Committees | Total gross* | Total net** |
| Marko Kerin (1 Jan–9 Sept) | 1,100 | 1,100 | 800 |
| Aleksander Igličar (1 Jan–31 Dec) | 1,540 | 1,540 | 1,120 |
| Drago Kijevčanin (1 Jan–31 Dec) | 1,540 | 1,540 | 1,120 |
| Marko Hočevar (1 Jan–31 Dec) | 1,320 | 1,320 | 960 |
| Barbara Gorjup (1 Jan–31 Dec) | 1,540 | 1,540 | 1,120 |
| Alenka Čok Pangeršič (14 Sept–31 Dec) | 440 | 440 | 320 |
| Total | 7,480 | 7,480 | 5,440 |
*The total gross amount is the sum of all committee costs.
**The total net amount is the sum of all net receipts of the Supervisory Board committee members.
The members of the Supervisory Board received no other payments.
Liabilities to related parties
The Telekom Slovenije Group and the company Telekom Slovenije record liabilities to related parties
arising from receipts that have not yet been paid out (liabilities for annual bonuses, 13th salary and
variable performance-related remuneration for 2020, 2021 and 2023), in the following amounts:
| Total amount of all | Total amount of all liabilities as | |
| In EUR thousand | liabilities as at 31 | at 31 December 2022 |
| December 2023 | ||
| Members of the Management Board total | 108 | 261 |
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
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
233
company Telekom Slovenije conducts business. All related party transactions are carried out under
market conditions.
Remuneration of the management of subsidiaries
In 2023
| Other | Voluntary | |||||||||||
| Company | in EUR | Salary | Christmas | personal | Cost | Holiday | Insurance | Bonuses | supplementary | Total | Total | |
| bonus |
Variable pay | earnings* | reimbursement | allowance | premiums | pension | gross** | net*** | ||||
| insurance | ||||||||||||
| Primož | ||||||||||||
| Avtenta | Kučič | 6,000 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 6,000 | 4,214 |
| (1.1.- | ||||||||||||
| 31.3.) | ||||||||||||
| Matija | ||||||||||||
| Avtenta | Nendl | 76,507 | 0 | 0 | 0 | 1,487 | 1.644 | 35 | 4,477 | 2,420 | 86,570 | 45,985 |
| (1.4.- | ||||||||||||
| 31.12.) | ||||||||||||
| Zef | ||||||||||||
| GVO | Vučaj | 99,474 | 0 | 0 | 0 | 1,610 | 2.159 | 177 | 3,987 | 2,904 | 110,311 | 56,371 |
| (1.1.- | ||||||||||||
| 31.12.) | ||||||||||||
| Klavdij | ||||||||||||
| Soline | Godnič | 90,541 | 0 | 0 | 0 | 1,703 | 1.203 | 0 | 6,936 | 2,904 | 103,287 | 48,306 |
| (1.1.- | ||||||||||||
| 31.12.) | ||||||||||||
| Vesna | ||||||||||||
| TSinpo | Lednik | 79,752 | 0 | 0 | 0 | 1,726 | 2.192 | 127 | 3,184 | 2,904 | 89,885 | 47,682 |
| (10.1.- | ||||||||||||
| 31.12.) | ||||||||||||
| Sandra | ||||||||||||
| TSinpo | Peršak | 1,855 | 0 | 0 | 40,800 | 50 | 153 | 15 | 243 | 242 | 43,358 | 18,859 |
| (1.1.- | ||||||||||||
| 9.1.) | ||||||||||||
| Igor | ||||||||||||
| TSmedia | Gajster | 89,029 | 0 | 0 | 886 | 1,758 | 2.159 | 113 | 6,057 | 2,904 | 102,906 | 51,513 |
| (1.1.- | ||||||||||||
| 31.12.) | ||||||||||||
| Rajko | ||||||||||||
| TSmedia | Gerič | 12,046 | 0 | 0 | 15,330 | 0 | 360 | 10 | 10 | 242 | 27,998 | 14,067 |
| (1.1.- | ||||||||||||
| 19.2.) | ||||||||||||
| Tomaž | ||||||||||||
| IPKO | Seljak | 57,132 | 0 | 0 | 17,365 | 1,202 | 2.159 | 419 | 4,652 | 2,453 | 85,382 | 49,773 |
| (1.1. - | ||||||||||||
| 3.11.) 1 | ||||||||||||
| Tomaž | ||||||||||||
| IPKO 3 | Seljak | 61,832 | 0 | 27,477 | 0 | 3,720 | 0 | 0 | 0 | 0 | 93,029 | - |
| (1.1. - | ||||||||||||
| 3.11.) 2 | ||||||||||||
| Andras | ||||||||||||
| IPKO 3 | Pali | 18,636 | 0 | 0 | 0 | 240 | 0 | 0 | 0 | 0 | 18,876 | - |
| (4.11. - | ||||||||||||
| 31.12.) 2 | ||||||||||||
| Simon | ||||||||||||
| SIOL | Furlan | 6,390 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 6,390 | - |
| Podgorica 3 | (1.1.- | |||||||||||
| 31.12.) | ||||||||||||
| Simon | ||||||||||||
| SiOL | Furlan | 3,340 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 3,340 | . |
| Sarajevo 3 | (1.1.- | |||||||||||
| 31.12.) |
*The second personal remuneration is the payment of a jubilee award and severance pay, allowance for work abroad.
** Total gross represents the sum of all types of labor costs, including net receipts (reimbursements), insurance premiums, credits, and
voluntary supplementary pension insurance.
*** Total net represents the sum of the net remuneration of directors of subsidiary companies, including insurance premiums and benefits,
which effectively reduce the net remuneration of directors of subsidiary companies. However, it excludes voluntary supplementary pension
insurance, which the director of the subsidiary company does not receive personally, but which is transferred to the pension company.
1 Remuneration payer Telekom Slovenije, d.d.
2 Remuneration payer IPKO
3 Due to the application of local legislation in the calculation of remuneration, the net remuneration is not shown.
In 2022
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
234
| Other | Voluntary | |||||||||||
| Company | in EUR | Salary | Christmas | Variable | personal | Cost | Holiday | Insurance | supplementary | Total | *Total | |
| bonus | pay | earnings* | reimbursement | allowance | premiums | Bonuses | pension | gross** | net*** | |||
| insurance | ||||||||||||
| Avtenta | Primož Kučič | 24,000 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 24,000 | 16,908 |
| (1.1.-31.12.) | ||||||||||||
| GVO | Zef Vučaj | 99,599 | 0 | 2,075 | 0 | 1,859 | 2,064 | 177 | 4,746 | 2,904 | 113,424 | 56,749 |
| (1.1.-31.12.) | ||||||||||||
| Klavdij | ||||||||||||
| Soline | Godnič | 89,983 | 0 | 0 | 0 | 1,368 | 1,074 | 0 | 7,318 | 2,890 | 102,633 | 47,423 |
| (1.1.-31.12.) | ||||||||||||
| Sandra | ||||||||||||
| TSinpo | Peršak | 81,467 | 0 | 2,125 | 0 | 1,394 | 1,924 | 179 | 3,290 | 2,904 | 93,283 | 48,735 |
| (1.1.-31.12.) | ||||||||||||
| Danilo | ||||||||||||
| TSinpo | Tomšič | 0 | 0 | 2,192 | 0 | 0 | 0 | 0 | 0 | 0 | 2.192 | 1,281 |
| (1.1.- | ||||||||||||
| 30.9.2021) | ||||||||||||
| TSmedia | Rajko Gerič | 87,600 | 0 | 2,281 | 460 | 1,180 | 2,008 | 61 | 4,989 | 2,904 | 101,483 | 53,148 |
| (1.1.-31.12.) | ||||||||||||
| Igor Gajster | ||||||||||||
| TSmedia | (15.12.- | 3,133 | 0 | 0 | 0 | 117 | 0 | 0 | 0 | 132 | 3,382 | 2,090 |
| 31.12.) | ||||||||||||
| Tomaž Seljak | ||||||||||||
| IPKO | (1.1. - | 67,414 | 1.391 | 0 | 21,735 | 1,273 | 1,924 | 229 | 6,276 | 2,904 | 103,146 | 47,682 |
| 31.12.) 1 | ||||||||||||
| Tomaž Seljak | ||||||||||||
| IPKO 3 | (1.1. - | 72,300 | 0 | 0 | 0 | 5,820 | 0 | 0 | 0 | 0 | 78,120 | - |
| 31.12.) 2 | ||||||||||||
| SIOL | Simon Furlan | 3,057 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 3,057 | - |
| Podgorica 3 | (1.1.-31.12.) | |||||||||||
| SiOL | Simon Furlan | 3,340 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 3,340 | - |
| Sarajevo 3 | (1.1.-31.12.) |
*The second personal remuneration is the payment of a jubilee award and severance pay, allowance for work abroad.
** Total gross represents the sum of all types of labor costs, including net receipts (reimbursements), insurance premiums, credits, and
voluntary supplementary pension insurance.
*** Total net represents the sum of the net remuneration of directors of subsidiary companies, including insurance premiums and benefits,
which effectively reduce the net remuneration of directors of subsidiary companies. However, it excludes voluntary supplementary pension
insurance, which the director of the subsidiary company does not receive personally, but which is transferred to the pension company.
1 Remuneration payer Telekom Slovenije, d.d.
2 Remuneration payer IPKO
3 Due to the application of local legislation in the calculation of remuneration, the net remuneration is not shown.
Remuneration of members of the supervisory board of GVO for 2023
| in EUR | Meetings | Basic pay | Commitees* | Travel | Total | Total net*** |
| expenses | gross** | |||||
| Capital representatives | ||||||
| Vesna Prodnik (1.1.-31.12.) | 1,073 | 5,085 | 0 | 0 | 6,158 | 4,478 |
| Peter Anžin (9.6.-31.12.) | 660 | 2,783 | 396 | 0 | 3,839 | 2,792 |
| Sabina Merhar (1.1.-31.3.) | 413 | 1,250 | 440 | 0 | 2,103 | 1,529 |
| Employee representatives | ||||||
| Helena Jakič (1.1.-31.12.) | 1,073 | 4,238 | 836 | 0 | 6,147 | 4,470 |
| Total | 3.219 | 13.356 | 1.672 | 0 | 18.247 | 13.269 |
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
235
| in EUR | Meetings | Basic pay | Commitees* | Travel | Total | Total net*** |
| expenses | gross** | |||||
| External members of commissions | ||||||
| Darinka Virant (1.1.-31.12.) | 0 | 1,695 | 836 | 61 | 2,592 | 1,885 |
* Meeting fees for commissions.
**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 earnings (travel expenses).
*** The total net amount includes the sum of all net receipts, including travel expenses.
Remuneration of members of the supervisory board of GVO for 2022
| in EUR | Meetings | Basic pay | Commitees* | Travel | Total | Total net*** |
| expenses | gross** | |||||
| Capital representatives | ||||||
| Vesna Prodnik (14.11.-31.12.) | 138 | 563 | 0 | 0 | 701 | 509 |
| Mitja Štular (1.1.-13.11.) | 660 | 4,365 | 0 | 0 | 5,025 | 3,654 |
| Sabina Merhar (1.1.-31.12.) | 798 | 5,000 | 638 | 0 | 6,436 | 4,681 |
| Employee representatives | ||||||
| Helena Jakič (1.1.-31.12.) | 798 | 4,238 | 638 | 0 | 5,674 | 4,126 |
| Total | 2.394 | 14.166 | 1.276 | 0 | 17.836 | 12.970 |
| in EUR | Meetings | Basic pay | Commitees* | Travel | Total | Total net*** |
| expenses | gross** | |||||
| External members of commissions | ||||||
| Darinka Virant (1.1.-31.12.) | 0 | 1,695 | 638 | 0 | 2,333 | 1,697 |
* Meeting fees for commissions.
**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 earnings (travel expenses).
*** The total net amount includes the sum of all net receipts, including travel expenses.
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 2023 | 31 Dec 2022 |
| Receivables due from companies in the Group | ||
| Subsidiaries - gross amount | 3,330 | 4,015 |
| Subsidiaries - allowance | -15 | -17 |
| Subsidiaries - net amount | 3,316 | 3,998 |
| Loans to companies in the Group | ||
| Subsidiaries - gross amount | 37,516 | 57,553 |
| Subsidiaries - allowance | 0 | 0 |
| Subsidiaries - net amount | 37,516 | 57,553 |
| Liabilities to companies in the Group | ||
| Subsidiaries | 33,092 | 26,721 |
| In EUR thousand | I–XII 2023 | I–XII 2022 |
| Revenue from sales in the Group | 15,799 | 15,829 |
| Subsidiaries | 15,799 | 15,829 |
| Purchase of material and services in the Group | 23,171 | 21,247 |
| Subsidiaries | 23,171 | 21,247 |
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.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
236
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 ad management and arrangement 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 to its subsidiary IPKO international IP services, roaming services of its users,
traffic transiting services and system lease services. The subsidiary charges the lease of lines and
international telecommunications services as well as services related to user roaming to the controlling
company.
Inter-company prices are formed on the same basis as for other users.
As at the reporting date, no contract performance bonds were issued by Telekom Slovenije to its
subsidiaries (neither were in 2022).
The Company did not make allowances for loans granted in 2023, as the estimated expected credit
losses are insignificant.
Loans granted to subsidiaries
| In EUR thousand | 31 Dec 2023 | 31 Dec 2022 |
| GVO, d.o.o. | 4,517 | 2,993 |
| TSmedia, d.o.o. | 492 | 290 |
| IPKO, d.o.o. | 20,000 | 42,649 |
| SOLINE d.o.o. | 1,789 | 1,275 |
| SIOL d.o.o., Zagreb | 313 | 458 |
| SiOL d.o.o. Sarajevo | 3,920 | 4,413 |
| SIOL BEOGRAD | 0 | 151 |
| INFRATEL, d.o.o. | 3,654 | 2,453 |
| SIOL Prishtina | 2,832 | 2,871 |
| Total granted to subsidiaries | 37,516 | 57,553 |
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) holds a 66.80% of share capital in Telekom Slovenije.
Companies related to the owners are those in which the Republic of Slovenia and SSH together hold a
business share of at least 20%. The list of these companies is published on the SSH’s website
(http://www.sdh.si/sl-si/upravljanje-nalozb/seznam-nalozb).
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
237
The total value of transactions is given in the table below.
| Telekom Slovenije | Telekom Slovenije | |||
| Group | ||||
| In EUR thousand | 31 Dec | 31 Dec | 31 Dec 2023 | 31 Dec 2022 |
| 2023 | 2022 | |||
| Outstanding trade receivables | 4,659 | 4,726 | 3,898 | 4,247 |
| Outstanding trade payables | 4,214 | 4,871 | 4,055 | 4,830 |
| VAT liabilities | 5,655 | 3,706 | 5,490 | 3,695 |
| Income tax payables | -889 | 3,803 | -442 | 3,437 |
| In EUR thousand | I–IX 2023 | I–IX 2022 | I–IX 2023 | I–IX 2022 |
| Operating revenues | 24,579 | 12,241 | 18,058 | 10,934 |
| Purchase costs of material and services | 24,646 | 8,366 | 23,504 | 0 |
| In EUR thousand | I–IX 2023 | I–IX 2022 | I–IX 2023 | I–IX 2022 |
| VAT payment | 55,554 | 38,287 | 54,660 | 38,228 |
| CIT payment | 2,137 | 6,940 | 1,144 | 6,102 |
| Dividend payment | 0 | 19,687 | 0 | 19,687 |
All related party transactions are carried out under market conditions.
43. Auditor’s fee
| Telekom Slovenije Group | Telekom Slovenije | |||
| In EUR thousand | 2023 | 2022 | 2023 | 2022 |
| Audit services | 206 | 187 | 110 | 122 |
| Other assurance engagements | 16 | 8 | 16 | 8 |
| Tax advisory services | 0 | 0 | 0 | 0 |
| Other non-audit services | 16 | 11 | 12 | 0 |
| Total auditor’s fees | 238 | 206 | 138 | 130 |
44. Categories of financial instruments
The Group and the Company have classified financial instruments into groups as shown in the table
below.
| Telekom Slovenije | Telekom Slovenije | |||
| Group | ||||
| In EUR thousand | 31 Dec | 31 Dec | 31 Dec | 31 Dec |
| 2023 | 2021 | 2023 | 2021 | |
| Financial assets measured at amortised | ||||
| cost | ||||
| Cash and cash equivalents | 55,479 | 37,382 | 44,376 | 19,573 |
| Bank deposits | 1,037 | 800 | 36 | 0 |
| Loans granted | 9 | 25 | 37,526 | 57,578 |
| Trade and other receivables | 189,647 | 176,632 | 180,615 | 169,836 |
| Financial assets measured at fair value | ||||
| through other comprehensive income | ||||
| Investments in shares and interests of companies | 2,454 | 2,423 | 2,454 | 2,423 |
| Financial liabilities measured at amortised | ||||
| cost | ||||
| Operating liabilities | 147,082 | 132,092 | 125,538 | 103,147 |
| Borrowings | 337,177 | 369,440 | 337,176 | 369,440 |
| Other financial liabilities | 2 | 2 | 0 | 0 |
The Group and the Company did not reclassify these instruments to other groups during the year.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
238
45. Financial instruments and financial risk management
Financial risks that the Telekom Slovenije Group and the company Telekom Slovenije are 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. Adequate management measures are
implemented based on the assessment of potential negative effects on financial stability.
Credit risk
Credit risk is the risk of financial loss if a client or party to a contract does not settle its obligations in full
or at all.
The maximum exposure to credit risk equals the carrying amount of financial assets.
| Telekom Slovenije Group | Telekom Slovenije | |||
| In EUR thousand | 31 Dec 2023 | 31 Dec 2022 | 31 Dec 2023 | 31 Dec 2022 |
| Loans granted | 9 | 25 | 37,526 | 57,578 |
| Deposits | 1,039 | 802 | 36 | 0 |
| Trade and other receivables | 189,808 | 176,931 | 180,775 | 170,130 |
| - of which trade receivables | 179,731 | 170,406 | 171,583 | 164,768 |
| Cash and cash equivalents | 55,479 | 37,382 | 44,376 | 19,573 |
| TOTAL | 246,335 | 215,140 | 262,713 | 247,281 |
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 2023, these amounted to EUR 179,731 thousand at the Group level,
having increased by EUR 9,325 thousand compared to the end of 2022. Most of the Group’s trade and
other receivables refer to Telekom Slovenije. Most receivables are unsecured. The Group records
receivables due from a large number of natural persons and legal entities. The biggest buyers of the
Group are operators, with which transactions are as a rule two-way, decreasing net credit exposure. We
have assessed that no major credit risk concentration exists in relation to a particular client or industry.
The Group companies introduced various procedures for managing receivables that include the
monitoring of business partners’ credit rating, collateralisation of receivables, monitoring of subscribers’
high 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.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
239
Maturity analysis of receivables of the Telekom Slovenije Group as at the reporting date
In EUR thousand
| 31 Dec 2023 | 31 Dec 2022 | |||||||
| Expected % | Expected | |||||||
| Gross | of credit | Allowance | Net | Gross | % of | Allowance | Net | |
| amount | losses | amount | amount | credit | amount | |||
| losses | ||||||||
| Total trade receivables | 200,927 | -21,196 | 179,731 | 188,380 | -17,974 | 170,406 | ||
| Trade receivables not past due | 165,270 | 0.5% | -784 | 164,486 | 155,985 | 0.5% | -714 | 155,271 |
| Overdue | ||||||||
| - up to and including 30 days | 8,799 | 5% | -412 | 8,387 | 8,565 | 4% | -316 | 8,249 |
| - from and including 31 days to and | 3,754 | 11% | -415 | 3,339 | 2,990 | 11% | -318 | 2,672 |
| including 60 days | ||||||||
| - from and including 61 days to and | 781 | 18% | -137 | 644 | 1,365 | 16% | -212 | 1,153 |
| including 90 days | ||||||||
| - from and including 91 days to and | 2,493 | 46% | -1,135 | 1,358 | 2,078 | 45% | -941 | 1,137 |
| including 180 days | ||||||||
| - from and including 181 days to | 2,735 | 87% | -2,371 | 364 | 2,297 | 55% | -1,265 | 1,032 |
| and including 365 days | ||||||||
| - from and including 366 days up to | 6,642 | 83% | -5,486 | 1,156 | 5,484 | 84% | -4,605 | 879 |
| two years | ||||||||
| - over two years | 7,650 | 100% | -7,653 | -3 | 6,484 | 100% | -6,472 | 12 |
| - trade receivables in insolvency | 2,803 | 100% | -2,803 | 0 | 3,132 | 100% | -3,131 | 1 |
| proceedings | ||||||||
| Total trade receivables past due | 35,657 | -20,412 | 15,245 | 32,395 | -17,260 | 15,135 | ||
| Other trade receivables | 10,077 | 0 | 10,077 | 6,525 | 0 | 6,525 | ||
| Total receivables | 211,004 | -21,196 | 189,808 | 194,905 | 0 | -17,974 | 176,931 | |
Maturity analysis of receivables of Telekom Slovenije as at the reporting date
| 31 Dec 2023 | 31 Dec 2022 | |||||||
| Expected | Expected | |||||||
| In EUR thousand | Gross | % of | Allowance | Net | Gross | % of | Allowance | Net |
| amount | credit | amount | amount | credit | amount | |||
| losses | losses | |||||||
| Total trade receivables | 187,747 | -16,164 | 171,583 | 178,525 | -13,757 | 164,768 | ||
| Trade receivables not past due | 158,789 | 0% | -787 | 158,002 | 151,819 | 0.5% | -724 | 151,095 |
| Overdue | ||||||||
| - up to and including 30 days | 8,126 | 5% | -405 | 7,721 | 7,793 | 4% | -312 | 7,481 |
| - from and including 31 days to and including 60 days | 3,509 | 11% | -386 | 3,123 | 2,725 | 11% | -300 | 2,425 |
| - from and including 61 days to and including 90 days | 598 | 15% | -90 | 508 | 1,205 | 15% | -181 | 1,024 |
| - from and including 91 days to and including 180 days | 1,628 | 45% | -733 | 895 | 1,792 | 46% | -824 | 968 |
| - from and including 181 days to and including 365 days | 2,239 | 90% | -2,025 | 214 | 1,819 | 50% | -909 | 910 |
| - from and including 366 days up to two years | 3,108 | 64% | -1,988 | 1,120 | 2,404 | 64% | -1,538 | 866 |
| - over two years | 7,457 | 100% | -7,457 | 0 | 6,462 | 100% | -6,462 | 0 |
| - trade receivables in insolvency proceedings | 2,293 | 100% | -2,293 | 0 | 2,506 | 100% | -2,507 | -1 |
| Total trade receivables past due | 28,958 | -15,377 | 13,581 | 26,706 | -13,033 | 13,673 | ||
| Other trade receivables | 9,192 | 0 | 9,192 | 5,362 | 0 | 5,362 | ||
| Total receivables | 196,939 | -16,164 | 180,775 | 183,887 | -13,757 | 170,130 | ||
The adjustment policy for receivables is explained in note 3f Financial instruments, Financial assets,
Trade and other receivables.
The Telekom Slovenije Group and the company Telekom Slovenije also monitor credit risks in other
segments of business operations.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
240
Due to the stability of the banking system and high liquidity of banks, credit risk in terms of cash held in
commercial accounts and investments in deposits is low. Consequently, no expected credit losses are
recorded for cash and cash equivalents and investments in deposits.
The Group is also exposed to credit risk arising from loans to employees, which is assessed as low as
repayments are made when employees receive salaries. Therefore, no expected credit losses are
recorded on these investments.
Telekom Slovenije is exposed to credit risk arising from receivables from loans granted to subsidiaries.
The Company regularly monitors and supervises the operations of its subsidiaries and their ability to
repay loans. Therefore, no expected credit losses are recorded on these investments.
Maturity of loans granted
| Telekom Slovenije | Telekom Slovenije | |||
| Group | ||||
| In EUR thousand | 31 Dec | 31 Dec | 31 Dec | 31 Dec |
| 2023 | 2022 | 2023 | 2022 | |
| Past due loans granted | 0 | 0 | 0 | 0 |
| Outstanding loans granted | 9 | 25 | 37,526 | 57,578 |
| - in less than 3 months | 3 | 7 | 1,487 | 3,212 |
| - 3 to 12 months | 4 | 10 | 16,479 | 8,284 |
| - 1 to 2 years | 2 | 6 | 11,321 | 14,332 |
| - 2 to 5 years | 0 | 2 | 4,350 | 27,560 |
| - more than 5 years | 0 | 0 | 3,890 | 4,190 |
| Total | 9 | 25 | 37,526 | 57,578 |
Liquidity risk
The Telekom Slovenije Group regularly settles its liabilities. The Group's liquidity is the result of active
planning of cash flows, ensuring appropriate maturity and financial debt diversification, financing within
the Group, and managing 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 three long-term syndicated loans in
the total amount of EUR 237.2 million with respective interest, a long-term loan from the European
Investment Bank in the amount of EUR 100.5 million with respective interest, and lease liabilities in the
amount of EUR 75.1 million and EUR 81.8 million at the Group and Company level, respectively.
In 2023, Telekom Slovenije repaid EUR 132.5 million of long-term loans and drew down a long-term
syndicated loan with SID and NLB totalling EUR 100 million at the end of 2023, which was used to fully
refinance a tranche of the syndicated long-term loan maturing at the end of 2023.
The Group and the Company have short-term financing facilities with banks to ensure liquidity. The
liquidity buffer in the form of revolving loans and overdraft facility totalling EUR 55 million was not drawn
as at 31 December 2023.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
241
Maturity profile of liabilities of the Telekom Slovenije Group as at 31 December 2023 and 31 December
2022 based on contractual, undiscounted payments
| Not due | |||||||
| In EUR thousand | Up to 3 | 3 to 12 | 1 to 2 | 2 to 5 | Over 5 | Total | Book value of |
| months | months | years | years | years | liabilities | ||
| 31 Dec 2023 | |||||||
| Loans and | 887 | 43,849 | 45,556 | 181,391 | 122,681 | 394,364 | 337,700 |
| borrowings | |||||||
| Other financial | 0 | 2 | 0 | 0 | 0 | 2 | 2 |
| liabilities | |||||||
| Trade payables and | |||||||
| other operating | 93,881 | 29,866 | 11,839 | 5,476 | 6,021 | 147,083 | 147,083 |
| liabilities | |||||||
| Financial liabilities | 5,246 | 6,279 | 11,831 | 23,703 | 46,193 | 93,252 | 75,084 |
| from lease | |||||||
| Total | 100,014 | 79,996 | 69,226 | 210,570 | 174,895 | 634,701 | 559,869 |
| 31 Dec 2022 | |||||||
| Loans and | 8,505 | 137,413 | 37,817 | 96,473 | 132,639 | 412,847 | 370,087 |
| borrowings | |||||||
| Other financial | 2 | 0 | 0 | 0 | 0 | 2 | 2 |
| liabilities | |||||||
| Trade payables and | |||||||
| other operating | 89,528 | 34,387 | 3,669 | 443 | 4,065 | 132,092 | 132,092 |
| liabilities | |||||||
| Financial liabilities | 5,541 | 6,695 | 12,046 | 23,504 | 37,206 | 84,992 | 69,945 |
| from lease | |||||||
| Total | 103,576 | 178,495 | 53,532 | 120,420 | 173,910 | 629,933 | 572,126 |
Maturity of liabilities of Telekom Slovenije as at 31 December 2023 and 31 December 2022 based on
contractual, undiscounted payments
| Not due | |||||||
| In EUR thousand | Up to 3 | 3 to 12 | 1 to 2 | 2 to 5 | Over 5 | Total | Book value of |
| months | months | years | years | years | liabilities | ||
| 31 Dec 2023 | |||||||
| Loans and | 887 | 43,849 | 45,556 | 181,391 | 122,681 | 394,364 | 337,700 |
| borrowings | |||||||
| Trade payables and | |||||||
| other operating | 91,945 | 16,278 | 11,716 | 5,476 | 125 | 125,540 | 125,540 |
| liabilities | |||||||
| Financial liabilities | 5,864 | 7,658 | 9,986 | 25,275 | 48,422 | 97,205 | 81,779 |
| from lease | |||||||
| Total | 98,696 | 67,785 | 67,258 | 212,142 | 171,228 | 617,109 | 545,019 |
| 31 Dec 2022 | |||||||
| Loans and | 8,505 | 137,413 | 37,817 | 96,473 | 132,639 | 412,847 | 370,087 |
| borrowings | |||||||
| Trade payables and | |||||||
| other operating | 87,396 | 11,905 | 3,278 | 443 | 125 | 103,147 | 103,147 |
| liabilities | |||||||
| Financial liabilities | 6,194 | 8,195 | 10,211 | 26,011 | 36,394 | 87,005 | 73,398 |
| from lease | |||||||
| Total | 102,095 | 157,513 | 51,306 | 122,927 | 169,158 | 602,999 | 546,632 |
| Not due | |||||||
| In EUR thousand | Up to 3 | 3 to 12 | 1 to 2 | 2 to 5 | Over 5 | Total | Book value of |
| months | months | years | years | years | liabilities | ||
| 31 Dec 2023 | |||||||
| Loans and | 887 | 43,849 | 45,556 | 181,391 | 122,681 | 394,364 | 337,700 |
| borrowings | |||||||
| Other financial | 0 | 2 | 0 | 0 | 0 | 2 | 2 |
| liabilities | |||||||
| Trade payables and | |||||||
| other operating | 93,881 | 29,866 | 11,839 | 5,476 | 6,021 | 147,083 | 147,083 |
| liabilities | |||||||
| Financial liabilities | 5,246 | 6,279 | 11,831 | 23,703 | 46,193 | 93,252 | 75,084 |
| from lease | |||||||
| Total | 100,014 | 79,996 | 69,226 | 210,570 | 174,895 | 634,701 | 559,869 |
| 31 Dec 2022 | |||||||
| Loans and | 8,505 | 137,413 | 37,817 | 96,473 | 132,639 | 412,847 | 370,087 |
| borrowings | |||||||
| Other financial | 2 | 0 | 0 | 0 | 0 | 2 | 2 |
| liabilities | |||||||
| Trade payables and | |||||||
| other operating | 89,528 | 34,387 | 3,669 | 443 | 4,065 | 132,092 | 132,092 |
| liabilities | |||||||
| Financial liabilities | 5,541 | 6,695 | 12,046 | 23,504 | 37,206 | 84,992 | 69,945 |
| from lease | |||||||
| Total | 103,576 | 178,495 | 53,532 | 120,420 | 173,910 | 629,933 | 572,126 |
| Not due | |||||||
| In EUR thousand | Up to 3 | 3 to 12 | 1 to 2 | 2 to 5 | Over 5 | Total | Book value of |
| months | months | years | years | years | liabilities | ||
| 31 Dec 2023 | |||||||
| Loans and | 887 | 43,849 | 45,556 | 181,391 | 122,681 | 394,364 | 337,700 |
| borrowings | |||||||
| Trade payables and | |||||||
| other operating | 91,945 | 16,278 | 11,716 | 5,476 | 125 | 125,540 | 125,540 |
| liabilities | |||||||
| Financial liabilities | 5,864 | 7,658 | 9,986 | 25,275 | 48,422 | 97,205 | 81,779 |
| from lease | |||||||
| Total | 98,696 | 67,785 | 67,258 | 212,142 | 171,228 | 617,109 | 545,019 |
| 31 Dec 2022 | |||||||
| Loans and | 8,505 | 137,413 | 37,817 | 96,473 | 132,639 | 412,847 | 370,087 |
| borrowings | |||||||
| Trade payables and | |||||||
| other operating | 87,396 | 11,905 | 3,278 | 443 | 125 | 103,147 | 103,147 |
| liabilities | |||||||
| Financial liabilities | 6,194 | 8,195 | 10,211 | 26,011 | 36,394 | 87,005 | 73,398 |
| from lease | |||||||
| Total | 102,095 | 157,513 | 51,306 | 122,927 | 169,158 | 602,999 | 546,632 |
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 2023, the Group's interest rate risk exposure arises from the potential
change in the Euribor reference interest rate.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
242
We manage hedging of exposure to interest rate risk:
- by borrowing with a fixed interest rate and
- concluding interest rate swaps (IRS).
In the structure of the Group’s and the Company’s financial liabilities
105
as at 31 December 2023,
liabilities from received loans, which bear interest at fixed interest rates represent a 27,7% share.The
remaining liabilities arise from long-term loans with a variable interest rate.
In order to mitigate interest rate risk, the company entered into an interest rate swap (IRS) transaction
after closing of 2023. As a result, the proportion of loans with a fixed or hedged interest rate increased
to 51.9% by the end of February 2024. For more details see Note 46 Events after the reporting date.
Exposure to interest rate risk
| Telekom Slovenije Group | Telekom Slovenije | |||
| In EUR thousand | 31 Dec 2023 | 31 Dec 2022 | 31 Dec 2023 | 31 Dec 2022 |
| Financial instruments with variable | ||||
| interest rate | ||||
| Financial liabilities | 237,143 | 265,824 | 237,143 | 265,824 |
| Net financial liabilities | 237,143 | 265,824 | 237,143 | 265,824 |
The table is exclusive of non-interest bearing financial instruments and instruments bearing a fixed
interest rate, as they are not exposed to interest rate risk.
Sensitivity analysis
The sensitivity analysis shows the impact of change in EURIBOR benchmark on the Group’s and the
Company’s profit or loss before tax as at the reporting date.
Interest rate risk table
| 2023 | Interest rate increase/decrease | Effect on profit or loss before tax in EUR thousand | |
| Telekom Slovenije Group | Telekom Slovenije, d.d. | ||
| EURO | +100 bps | -2,371* | -2,371* |
| EURO | -100 bps | 2,371* | 2,371* |
| 2022 | Interest rate increase/decrease | Effect on profit or loss before tax in EUR thousand | |
| Telekom Slovenije Group | Telekom Slovenije, d.d. | ||
| EURO | +100 bps | -2,526* | -2,526* |
| EURO | -100 bps | 2,658* | 2,658* |
*The calculation applies for the next 12 months.
EURIBOR interest rate values
| EURIBOR | Value at 31 Dec 2023 | Value at 31 Dec 2022 | Change |
| (in percentage points) | |||
| 3-month | 3.909 | 2.132 | 1.777 |
| 6-month | 3.861 | 2.693 | 1.168 |
Capital management
The 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.
105
Considered balance of long-term loans’ principals.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
243
The Group and the Company monitor changes in equity by using a debt-to-equity ratio and equity-to-
total assets ratio. 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.
Debt-to-equity ratio and equity-to-total assets ratio of the Telekom Slovenije Group and the company
Telekom Slovenije as at 31 December 2023 and 31 December 2022
| Telekom Slovenije Group | Telekom Slovenije | |||
| In EUR thousand | 31 Dec 2023 | 31 Dec 2022 | 31 Dec 2023 | 31 Dec 2022 |
| Borrowings and other financial liabilities | 412,262 | 439,387 | 418,955 | 442,838 |
| Current investments and cash assets with | -56,525 | -38,219 | -62,378 | -31,089 |
| short-term deposits | ||||
| Net financial liabilities | 355,737 | 401,168 | 356,577 | 411,749 |
| Equity | 658,638 | 611,677 | 630,189 | 606,233 |
| Total assets | 1,317,866 | 1,275,338 | 1,250,315 | 1,223,290 |
| Debt-to-equity ratio | 54.0% | 65.6% | 56.6% | 67.9% |
| Equity-to-total assets ratio | 50.0% | 48.0% | 50.4% | 49.6% |
46. Events after the reporting date
• For the third year in a row, Telekom Slovenije has received the international Top Employer
certificate, which is awarded to companies that implement excellent HR practices.
• On January 23, the Court of Auditors of the Republic of Slovenia published the audit report titled
"Effectiveness of Telekom Slovenije, d.d.'s Operations." The Court of Auditors audited the
efficiency of Telekom Slovenije's operations in the period from 1 January 2019, to 31 October
2022. The audit report does not impose measures on the company, nor is the company required
to submit a response report.
• On February 2, 2024, Telekom Slovenije received from the District Court in Ljubljana a
preparatory application from the plaintiff in relation to the lawsuit filed by the company T-2, d.o.o.,
in which the latter proposes, among other things, an increase in the claim by an estimated
amount of EUR 59 million. We will respond promptly to the received application and the
amendment of the claim.
• On February 7, 2024, the 37th Shareholders meeting of Telekom Slovenije was held. The
shareholders supported the proposal to allocate EUR 40,291,580.40, or EUR 6.20 gross per
individual share, for the payment of dividends.
• In February 2024, Telekom Slovenije entered into an interest rate swap (IRS) transaction
amounting to 75% of the principal of a long-term loan drawn at the end of 2023 in order to
reduce interest rate risk. As a result, as of the end of February 2024, the proportion of loans
within the Group's and the company's financial liabilities that bear interest at a fixed or protected
interest rate increased to 51.9%.
• On February 28, 2024, Telekom Slovenije received a lawsuit from the District Court in Ljubljana
filed by the company T-2, in which the latter demands, among other things, that the court
determine the non-existence of Telekom Slovenije's right to demand the submission of securities
in accordance with contracts concluded based on standard offers for local access at a fixed
location (WLA) and central access at a fixed location (WCA). Telekom Slovenije requires
operators to submit securities to protect its business interests and minimize the risk of non-
payment for obligations under the aforementioned contracts. In T-2 company's annual report for
the year 2022, published in November 2023, the auditor, under the Significant Uncertainty
section related to a going concern, identified the existence of significant liquidity risk and stated
that the situation indicates significant uncertainty about the company's ability to continue as a
going concern. Telekom Slovenije implements all risk mitigation measures in accordance with
concluded contracts and applicable legislation and in a consistent and non-discriminatory
manner. The company will respond to the received lawsuit within the deadline.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
244
• Telekom Slovenije received a judgment from Administrative Court of the Republic of Slovenia
on 12 March, 2024, in an administrative dispute against the defendant, The Slovenian
Competition Protection Agency (hereinafter: CPA), for the annulment of CPA's decision dated 2
February, 2015. The Administrative Court of the Republic of Slovenia, in a re-examination
procedure, fully granted Telekom Slovenije's lawsuit and annulled CPA's decision also in the
remaining part concerning the alleged abuse of a dominant position in the inter-operator market
for broadband access with bitstream and in the inter-operator market for access to physical
network infrastructure in the Republic of Slovenia. The matter is remanded for further
proceedings before CPA.
245
Letno poročilo Skupine Telekom Slovenije in družbe Telekom Slovenije, d.d., za leto 2023
9.3. Independent auditor’s report for the Telekom Slovenije Group and the
company Telekom Slovenije
246
Letno poročilo Skupine Telekom Slovenije in družbe Telekom Slovenije, d.d., za leto 2023
247
Letno poročilo Skupine Telekom Slovenije in družbe Telekom Slovenije, d.d., za leto 2023
248
Letno poročilo Skupine Telekom Slovenije in družbe Telekom Slovenije, d.d., za leto 2023
249
Letno poročilo Skupine Telekom Slovenije in družbe Telekom Slovenije, d.d., za leto 2023
250
Letno poročilo Skupine Telekom Slovenije in družbe Telekom Slovenije, d.d., za leto 2023
251
Letno poročilo Skupine Telekom Slovenije in družbe Telekom Slovenije, d.d., za leto 2023
252
Letno poročilo Skupine Telekom Slovenije in družbe Telekom Slovenije, d.d., za leto 2023
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
I
10 ANNEXES
10.1 Telekom Slovenije Group subsidiaries
Company: GVO, gradnja in vzdrževanje telekomunikacijskih omrežij, d.o.o.
Registered office: Ljubljana
Address: Cigaletova ulica 10, 1000 Ljubljana
Tel: +386 1 234 19 50
Website: www.gvo.si
Email: gvo@telekom.si
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
Linkedin: Avtenta
Facebook: Avtenta, d.o.o.
Youtube: Avtenta d.o.o.
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
Linkedin: TSmedia
Facebook: TSmedia
Youtube: TSmedia
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
Facebook: SOLINE Pridelava soli d.o.o.
Instagram: Piranske Soline (@piranske_soline)
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
Elektronski naslov: info@tsinpo.si
Facebook: TSinpo, storitveno in invalidsko podjetje
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
II
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
Website: http://www.siol.com/
Company: SIOL d.o.o., Podgorica
Registered office: Podgorica, Montenegro
Address: Džordža Vašingtona 108/36A, The Capital Plaza
Website: http://www.siol.com/
Company: SIOL DOOEL Skopje
Registered office: Skopje, North Macedonia
Address: Str. NAUM NAUMOVSKI BORCE no.50/2-12, SKOPJE – CENTAR
Website: http://www.siol.com/
Company: SIOL, d.o.o., Beograd-Palilula
Registered office: Belgrade, Serbia
Address: 27. marta 11
Website: http://www.siol.com/
Company: SIOL Prishtina L.L.C.
Registered office: Prishtina, Kosovo
Address: Pejton, Str. Mujo Ulqinaku 5/1
Website: http://www.siol.com/
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
III
10.2 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
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 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.
Earnings before
interest, taxes,
depreciation and
amortisation (EBITDA)
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 earnings
before interest, taxes,
depreciation and
amortisation
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.
Earnings before
interest, taxes,
depreciation and
amortisation as a
proportion of sales
revenue (%)
EBITDA / sales revenue x 100
Measure of commercial success
and profitability.
Earnings before
interest, taxes,
depreciation and
amortisation as a
EBITDA / operating revenues x 100
Measure of commercial success
and profitability.
The measure is used by SDH to
measure the performance of
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
IV
Alternative
performance measure
Calculation methodology
Selection of measure
proportion of operating
revenues (%)
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 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.
Earnings before
interest, taxes,
depreciation and
amortisation –
investments
Earnings before interest, taxes,
depreciation and amortisation – Value of
investments in the acquisition of property,
plant and equipment and intangible assets
Indicator of free cash flow.
Ratio of earnings
before interest, taxes,
depreciation and
amortisation
(investments) to
earnings before
interest, taxes,
depreciation and
amortisation (cash
margin)
(Earnings before interest, taxes,
depreciation and amortisation – Value of
investments in the acquisition of property,
plant and equipment and intangible
assets) / Earnings before interest, taxes,
depreciation and amortisation
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
Operating revenues – Costs of materials,
goods and services – Other operating
expenses
Basic economic indicator and basic
measure of economic activity and
success. Represents the newly
generated value of a company in a
given period.
Value added per
employee
Value added / average number of
employees in the period (as at December
of the current year and December of the
previous year)/2)
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.
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.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
V
Alternative
performance measure
Calculation methodology
Selection of measure
Net financial debt on
earnings before
interest, taxes,
depreciation and
amortisation
Net financial debt / Earnings before
interest, taxes, depreciation and
amortisation
Ratio that indicates how many
years would be required to repay
financial debt from existing liquid
assets and cash flows from
operating activities, assuming the
same level of operations and
profitability
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.
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 2023
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10.3 Commitments and membership in associations
106
Employees of Telekom Slovenije Group companies establish links and exchange experience and expertise
through corporate or individual membership in numerous professional organisations and associations. 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
• CER Partnership for a Sustainable Economy
• 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
• 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
• 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 Slovenija)
• Slovenian Corporate Treasurers Association
• Association of Slovenian Digital Television Operators
• Association of Disability Companies of Slovenia (TSinpo)
• Slovenian Logistics Association
• Tourism and Hospitality Chamber of Slovenia
• Association of Certified Fraud Examiners
(ACFE)
• Broadband Forum
• ECO – European Association of the Internet
Industry
• European Telecommunications Network
Operators’ Association (ETNO)
• GSM Association (IPKO);
• 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) (IPKO)
• Trusted Introducer: Directory: TSLO-CERT
(trusted-introducer.org);
• European Mentoring and Coaching Council
(EMCC Slovenija)
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
• Society of Cable Telecommunications
Engineers
106
GRI 2-28
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
VII
10.4 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 2023 to 31 December 2023.
GRI 1 used
GRI 1: Foundation 2021
Applicable
GRI Sector
Standard(s)
GRI G4 – Media, GRI 2002 – Telecommunications
GRI
standard
107
Description of disclosure
Section/
page
Omitted
requirements
Reason and explanation
for omission
GRI 2: GENERAL DISCLOSURES 2021
Organisation and its reporting practices
2-1
Organisational details
1.1/3–4
6/44–48
2-2
(ESRS 2 BP-1)
Entities included in the
organisation’s sustainability
reporting
8.1.4/100
2-3
Reporting period, frequency
and contact point
1.1/3–4
8.1.4/100
2-4
(ESRS 2 BP-2)
Restatements of information
8.1.4/100
2-5
External assurance
8.1.4/100
Activities and workers
2-6
(ESRS 2 SBM-
1)
Activities, value chain and
other business relationships
7.7.1/76–
77
7.7.2/77–
83
8.3.4/137–
139
2-7
(ESRS 2 SBM-
1, S1-6)
Employees
8.3.3/121–
137
2-7-b-iii
Not relevant.
Telekom Slovenije Group
companies do not have
non-guaranteed hours
employees.
2-8
(S1-7)
Workers who are not
employees
8.3.3/121–
137
Management and governance
2-9
Governance structure and
composition
5.3/25–39
8.1.1/91–
92
107
In addition to the GRI code numbers, the table also shows links to the relevant ESRS data points (ESRS
standards will be in force from the 2024 calendar year).
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
VIII
(ESRS 2 GOV-
1, G1 GOV-1,
G1-5)
2-10
Nomination and selection of
the highest governance body
5.3/25–39
2-11
Chair of the highest
governance body
5.3/25–39
2-12
(ESRS 2 GOV-
1, GOV-2, SBM-
2, G1 GOV-1)
Role of the highest
governance body in
overseeing the management
of impacts
8.1.1/91–
92
8.4.1/140–
144
2-13
(ESRS 2 GOV-
1, GOV-2, G1-3)
Delegation of responsibility
for managing impacts
8.1.1/91–
92
8.4.1/140–
144
2-14
(ESRS 2 GOV-
1, GOV-5, IRO-
1)
Role of the highest
governance body in
sustainability reporting
8.1.1/91–
92
2-15
Conflicts of interest
5.3/25–39
8.4.1/140–
144
2-16
(ESRS 2 GOV-
2, G1-1, G1-3)
Communication of critical
concerns
8.4.1/140–
144
2-17
(ESRS 2 GOV-
1)
Collective knowledge of the
highest governance body
8.1.1/91–
92
2-18
Evaluation of the
performance of the highest
governance body
5.3/25–39
2-19
(ESRS 2 GOV-
3, E1.GOV-3)
Remuneration policies
5.3/25–39
2-20
(ESRS 2 GOV-
3)
Process to determine
remuneration
5.3/25–39
2-21
(S1-16)
Annual total compensation
ratio
5.3/25–39
Strategies, policies and practices
2-22
(ESRS 2 SBM-
1)
Statement on sustainable
development strategy
2/11–13
8.1.1/91–
92
2-23
(S1-1, S2-1, S4-
1, G1-1)
Policy commitments
8.2.1/101-
109
8.4.1/140–
144
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
IX
2-24
(ESRS 2 GOV-
2, S1-4, G1-1)
Embedding policy
commitments
8.2.1/101-
109
8.4.1/140–
144
2-25
(S1-1, S2-1, S4-
1)
Processes to remediate
negative impacts
8.4.1/140–
144
2-26
(G1-1, G1-3)
Mechanisms for seeking
advice and raising concerns
8.4.1/140–
144
2-27
(ESRS 2 SBM-
3, S1-17, G1-4)
Compliance with laws and
regulations
8.2.1/101-
109
8.2.2/109-
112
8.3.1/113-
115
2-28
Membership in associations
10.3/VI
Stakeholder engagement
2-29
(ESRS 2 SBM-
2, S1-1, S2-1,
S4-1)
Approach to stakeholder
engagement
6/44-48
7.7.3/84–
90
8.1.3/97–
99
8.3.3/121–
137
2-30
(S1-8)
Collective bargaining
agreements
8.3.3/121–
137
GRI 3: Material topics
GRI standard
Description of disclosure
Section/pa
ge
Omitted
requirements
Reason and explanation
for omission
3-1
(ESRS 2 BP-
1, IRO-1)
Process to determine
material topics
8.1.2/92–
96
3-2
(ESRS 2 BP-
2)
List of material topics
8.1.2/92–
96
ECONOMIC IMPACTS
GRI 201: Economic performance 2016
3-3
Management of material
topics
4.1/16
201-1
(ESRS 2 SBM-
1)
Direct economic value
generated and distributed
7.3/63–65
7.7.2/77–
83
8.3.1/113-
115
We only report on taxes for
the Telekom Slovenije
Group.
201-2
(ESRS 2, E1
SBM-3, E1-3,
E1-9)
Financial implications and
other risks and opportunities
for the organisation’s
7.3/63–65
8.2.1/101-
109
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
X
activities due to climate
change
201-3
Defined benefit plan
obligations and other
retirement plans
8.3.3/121–
137
GRI 202: Market presence 2016
3-3
Management of material
topics
4.1/16
202-1
(S1-10)
Ratios of standard entry level
wage by gender compared to
local minimum wage
8.3.3/121–
137
202-2
Share of location
management
8.3.3/121–
137
GRI 203: Indirect economic impacts 2016
3-3
Management of material
topics
7.5/68
7.6/69–75
203-1
Development and impact of
significant infrastructure
investments and services
supported by the
organisation
7.5/68
7.6/69–75
GRI 204: Procurement practices 2016
3-3
Management of material
topics
8.3.4/137–
139
204-1
Proportion of spending on
local suppliers
8.3.4/137–
139
GRI 205: Anti-corruption 2016
3-3
Management of material
topics
8.4.1/140–
144
205-2
(G1-3)
Communication and training
about anti-corruption policies
and procedures
8.4.1/140–
144
The number of hours is
reported for Telekom
Slovenije.
205-3
(G1-4)
Confirmed incidents of
corruption and actions taken
8.4.1/140–
144
GRI 206: Anti-competitive behaviour 2016
3-3
Management of material
topics
8.4.1/140–
144
206-1
Number of legal proceedings
for anti-competitive
behaviour, anti-trust and
monopoly practices and their
outcomes
8.4.1/140–
144
GRI 207: Tax 2019
3-3
207-1
Approach to tax
8.4.3/144–
145
We do not report on the
evaluation of the approach
to the management of
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
XI
Management of material
topics
taxes or on the link
between the management
of tax liabilities and
sustainable development.
207-2
Tax governance, control and
risk management
8.4.3/144–
145
Tax-related disclosures are
verified by an independent
external auditor. The
auditor’s opinion can be
found on page 256 of the
financial report.
207-3
Stakeholder engagement
8.4.3/144–
145
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
financial
report
(compositi
on of the
Telekom
Slovenije
Group), pp.
181–184,
and Note
13
Corporate
income
tax,
deferred
tax assets
and
liabilities,
p. 2191.
ENVIRONMENTAL IMPACTS
GRI 302: Energy 2016
3-3
(E1-5)
Management of material
topics
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
(E1-5)
Energy consumption within
the organisation
8.2.1/101-
109
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 2023
XII
302-3
(E1-5)
Energy intensity
8.2.1/101-
109
302-4
Reduction of energy
consumption
8.2.1/101-
109
We report the relevant
reductions in consumption
for Telekom Slovenije.
GRI 303: Waste and effluents 2018
3-3
Management of material
topics
8.2.2/109-
112
303-1
(ESRS 2 SBM-
3, IRO-1, E3-2,
E3-3)
Interactions with water as a
shared resource
8.2.2/109-
112
We only report on how
water is withdrawn and
discharged.
303-2
(E2-3)
Management of water
discharge-related impacts
8.2.2/109-
112
We do not report on the
methodology/standards
used to determine the
consumption and quality of
the discharge of water.
303-3
Water withdrawal
8.2.2/109-
112
303-5
(E3-4)
Water consumption
8.2.2/109-
112
GRI 304: Biodiversity 2016
3-3
(E4-1)
Management of material
topics
8.2.2/109-
112
304-1
(E4 SBM-3,
IRO1, E4-5)
Location and size of land
managed in, or adjacent to,
protected areas and areas of
high biodiversity value
outside protected areas
8.2.2/109-
112
We report on the location
and size of land managed
by the company in
protected natural areas.
304-2
(E4-5)
Significant impacts of
activities, products and
services on biodiversity
8.2.2/109-
112
304-3
(E4-3)
Habitats protected or
restored
8.2.2/109-
112
We do not report on the
methodologies that were
used for that purpose.
304-4
(E4-5)
Number of IUCN Red List
species and national
conservation list species with
habitats in areas affected by
operations
8.2.2/109-
112
GRI 305: Emissions 2016
3-3
(E1-4, E1-6)
Management of material
topics
8.2.1/101-
109
We control the evaluation
of the approach in
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
XIII
accordance with the ISO
14001 standard.
305-1
(E1-4, E1-6)
Direct greenhouse gas
emissions (Scope 1)
8.2.1/101-
109
305-2
(E1-4, E1-6)
Energy indirect (Scope 2)
GHG emissions
8.2.1/101-
109
305-3
(E1-4, E1-6)
Other indirect (Scope 3)
GHG emissions
8.2.1/101-
109
GRI 306: Waste 2020
3-3
Management of material
topics
8.2.1/101-
109
We control the evaluation
of the approach in
accordance with the ISO
14001 standard.
306-1
(ESRS 2 SBM-
3, IRO-1)
Waste generation and
significant waste-related
impacts
8.2.1/101-
109
306-2
(E5-2, E5-5)
Management of significant
waste-related impacts
8.2.1/101-
109
306-3
(E5-5)
Waste generated
8.2.1/101-
109
SOCIAL IMPACTS
GRI 401: Employment 2016
3-3
Management of material
topics
8.3.3/121–
137
We do not report on the
evaluation of the
management approach.
401-1
(S1-6)
New employee hires and
employee turnover
8.3.3/121–
137
Data by gender are not
disclosed.
401-2
(S1-11)
Benefits provided to full-time
employees that are not
provided to temporary or
part-time employees
8.3.3/121–
137
401-3
(S1-15)
Return to work and retention
rates after parental leave, by
gender
8.3.3/121–
137
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
8.3.3/121–
137
402-1
Minimum notice period
regarding significant
operational changes,
including whether this is
8.3.3/121–
137
Deadlines for notifying
employees are in line with
valid legislation and are not
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
XIV
specified in the collective
agreement
included in the collective
agreement.
GRI 403: Occupational health and safety 2018
3-3
(S1-4, S1-5)
Management of material
topics
8.3.3/121
–137
403-1
Occupational health and
safety management system
8.3.3/121
–137
403-2
Hazard identification, risk
assessment and incident
investigation
8.3.3/121
–137
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
(S1-1)
Occupational health services
8.3.3/121
–137
403-4
Worker participation in the
development,
implementation and
evaluation of the
occupational health and
safety system
8.3.3/121
–137
403-5
Training in the area of
occupational health and
safety
8.3.3/121
–137
403-6
Promotion of health
8.3.3/121–
137
403-7
Prevention and mitigation of
occupational health and
safety impacts
directly linked to a
company’s services and
products
8.3.3/121–
137
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
(S1-14)
Workers covered by an
occupational health and
safety management system
8.3.3/121–
137
403-9
(S1-4, S1-14)
Number of work-related
injuries and rate
8.3.3/121–
137
Reporting relates to the
number of injuries.
403-10
(S1-4, S1-14)
Occupational diseases
8.3.3/121–
137
GRI 404: Training and education 2016
3-3
Management of material
topics
8.3.3/121–
137
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XV
404-1
(S1-13)
Average number of
education and training hours
per employee by gender and
by employee category
8.3.3/121–
137
We report the absolute
number of hours for the
number of training hours
by employee category.
404-2
(S1-1)
Programmes for training and
lifelong learning
8.3.3/121–
137
404-3
(S1-13)
Percentage of employees
receiving regular
performance and career
development reviews by
gender
8.3.3/121–
137
We do not report on
percentages by employee
category or gender.
GRI: 405: Diversity and equal opportunity 2016
3-3
Management of material
topics
8.4.1/140–
144
405-1
(ESRS 2 GOV-
1, S1-6, S1-9,
S1-12)
Composition of governance
bodies and the breakdown of
employees by employee
category (gender, age,
minority group membership
and other relevant indicators
of diversity)
5.3/25–39
8.3.3/121–
137
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
(S1-16)
Ratio of basic salary and
remuneration of women to
men, by significant locations
of operation
8.3.3/121–
137
GRI 406: Non-discrimination 2016
3-3
Management of material
topics
8.4.1/140–
144
406-1
(S1-17)
Total number of incidents of
discrimination and corrective
actions taken
8.3.3/121–
137
GRI 415: Public policy 2016
3-3
Management of material
topics
8.4.1/140–
144
415-1
(G1-5)
Political contributions
8.4.1/140–
144
GRI 417: Marketing and labelling 2016
3-3
Management of material
topics
8.3.2/115–
120
We do not report on
product marking.
417-3
(S4-4)
Total number of incidents of
non-compliance with
regulations and codes
concerning marketing
communications, including
advertising, promotion and
8.3.2/115–
120
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sponsorship, by type of non-
compliance and by outcomes
GRI 418: Customer privacy 2016
3-3
Management of material
topics
8.4.1/140–
144
418-1
(S4-3, S4-4)
Substantiated complaints
concerning breaches of
customer privacy and losses
of customer data
8.4.1/140–
144
SPECIFIC SECTOR INDICATORS (GRI G4) – MEDIA
Accessibility to media content
DMA
8.3.2/115–
120
G4-M4
Measures to improve
accessibility to media
content and the protection of
vulnerable audiences
8.3.2/115–
120
SPECIFIC SECTOR INDICATORS GRI 2002 – TELECOMMUNICATIONS
Internal operations
IO1
Infrastructure investments in
the telecommunications
network by region
7.5/68
7.6/69–75
IO3
Health and safety measures
for field personnel
8.3.3/121–
137
Provision of access to ICT products and services
PA1
Policies and practices for
providing access to the
telecommunications
infrastructure, products and
services to the population in
remote, less populated
regions
8.3.2/115–
120
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
8.3.2/115–
120
PA4
Quantitative level of
available telecommunication
products and services in
operating regions
7.7.2/77–
83
8.3.2/115–
120
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PA6
Programmes for providing
and maintaining
telecommunication links and
services in extraordinary
circumstances and in the
event of natural disasters
8.1.1/91–
92
We manage emergencies
with the business
continuity management
system.
PA8
Policies and practices to
publicly communicate on
EMR-related issues
8.2.1/101-
109
PA10
Initiatives to ensure the
clarity of charges and tariffs
8.3.2/115–
120
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).
7.7.2/77–
83
8.2.1/101-
109
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
8.2.1/101-109
TC-TL-130a.1
Competitive
behaviour &
open internet
Total amount of monetary losses as a
result of legal proceedings associated with
anticompetitive behaviour regulations
8.4.1/140–144
TC-TL-520a.1
Managing
technology
disruptions
Systems to provide unimpeded service
during service interruptions
We manage
emergencies
with the
business
continuity
management
system.
TC-TL-550a.2
Data privacy
Description of policies and practices
relating to behavioural advertising and
customer privacy
8.4.1/140–144
TC-TL-220a.1
Total amount of monetary losses as a
result of legal proceedings associated with
customer privacy
8.4.1/140–144
TC-TL-220a.3
Data security
Number of personal data breaches
8.4.1/140–144
TC-TL-230a.1
Description of approach to identifying and
addressing data security risks, including
use of cybersecurity standards
8.4.1/140–144
TC-TL-230a.2
Data regarding
operations
Number of wireless subscribers
7.7.2/77–83
TC-TL-000.A
Number of wireline subscribers
7.7.2/77–83
TC-TL-000.B
Number of broadband subscribers
7.7.2/77–83
TC-TL-000.C
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
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10.5 Abbreviations of technical terms
Abbreviation
English term
Slovene translation
Cloud services
Storitve v oblaku
Roam like at home
Gostuj kot doma
Small cell
Mala celica
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
5G
5th generation mobile network
Mobilno omrežje pete generacije
AAA
Authentication Authorization
Accounting
Sistem za avtentikacijo in avtorizacijo
uporabnikov
ADSL
Asymmetric digital subscriber line
Asimetrični digitalni naročniški vod
AKOS
The Agency for Communication
Networks and Services of the RS
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
ARSO
Slovenian Environment Agency
Agencija Republike Slovenije za okolje
AVK
Slovenian Competition Protection
Agency
Javna agencija Republike Slovenije za
varstvo konkurence
BCaaS
Business Connect as a service
Sodobna rešitev za upravljanje
dokumentarnega gradiva kot storitev
GDP
Gross Domestic Product
Bruto domači proizvod
BPM
Business process management
Upravljanje poslovnih procesov
CAGR
Compound Annual Growth Rate
Povprečni letni prirast
CAPEX
Capital Expenditure
Vrednost investicij
COSO ERM
Committee of Sponsoring
Organizations of the Treadway
Commission, Enterprise risk
management Integrated Framework
Odbor sponzorskih organizacij
Treadwayeve komisije, Upravljanje
tveganj v organizaciji v povezavi s
strategijo in delovanjem organizacije
CPE
Customer premises equipment
Oprema pri uporabniku
CSI
Customer Satisfaction Index
Indeks zadovoljstva uporabnikov
CSP
Cloud Solution Provider
Ponudnik rešitev v oblaku
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Abbreviation
English term
Slovene translation
CSRD
Corporate Sustainability Reporting
Directive
Direktiva o trajnostnem poročanju
DDOS
Distributed Denial of Services
Porazdeljena zavrnitev storitve
VAT
Value added tax
Davek na dodano vrednost
DHCP
Dynamic Host Configuration
Protocol
Omrežni protokol za dinamično
dodeljevanje IP naslovov končnim
napravam. gostitelja
DNS
Domain Name System
Sistem za mapiranje domenskih imen
v IP naslove
DOCIS
Data Over Cable Service Interface
Specification
Vmesnika prenosa podatkov po kablu
EBIT
Earnings before interest, taxes
Dobiček iz poslovanja pred obrestmi in
davki
EBITDA
Earnings before interest, taxes,
depreciation and amortization
Dobiček iz poslovanja pred obrestmi,
davki in amortizacijo
EFQM
European Foundation for Quality
Management
Evropska nagrada za poslovno
odličnost
EMR
Electromagnetic radiation
Elektromagnetna sevanja
ERP
Enterprise Resource Planning
Poslovni informacijski sistem
ESG
Environment, social, governance
Okolje, družba, upravljanje
ESMA
European Securities and Markets
Authority
Evropski nadzorni organ za
vrednostne papirje in trge
ESF
European Social Fund
Evropski socialni sklad
ETNO
European Telecommunications
Network Operators
Evropsko združenje
telekomunikacijskih operaterjevđ
EU
European Union
Evropska unija
EWSD
Elektronisches Wählsystem
(Digital Electronic Digital Switching
System)
Elektronski digitalni preklopni sistem
FTTH
Fiber To The Home
Optično vlakno do doma
FTTP
Fiber To The Premises
Optično vlakno do prostora
FTTx
Fiber To The Exchange
Optika do X
GHG Protocol
GHG Protocol Corporate
Accounting and Reporting Standard
Protokol o toplogrednih plinih
Standardi za podjetniško
računovodstvo in poročanje
GIS
Geographical Information System
Geografski informacijski sistem
GRI
Global reporting initiative
Pobuda za globalno poročanje
HR
Human Resource
Človeški viri
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Abbreviation
English term
Slovene translation
HVAC
Heating, ventilation and air
conditioning
Ogrevanje, prezračevanje in
klimatizacija
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
IoT
Internet of Things
Internet stvari
IP TV/IPTV
IP television
Televizija prek internetnega protokola
ISO
International Organization for
Standardization
Mednarodna organizacija za
standardizacijo
IT
Information Technology
Informacijska tehnologija
KEDS
Kosovo Energy Distribution
Services
Kosovsko elektrodistribucijsko podjetje
SSNP/KPSS
Sečovlje Salina Nature park
Krajinski park Sečoveljske soline
MEC
Multi-access edge computing
Sodostopno računalništvo na robu
MMDS
Multichannel multipoint distribution
service
Večkanalska večtočkovna razdelilna
storitev
MOSS
Slovenian ranking reach of
websites
Merjenje obiskanosti spletnih strani
MPLS
Multiprotocol label switching
Tehnologija za posredovanje,
usmerjanje in preklapljanje prometnih
tokov skozi omrežje
IFRS/MSRP
International Financial Reporting
Standards
Mednarodni standardi računovodskega
poročanja
MSSP
Managed Security Services Partner
Partner za upravljanje varnostnih
storitev
NEO
A multimedia platform that connects
the best solutions for home and
entertainment in one place.
Multimedijska platforma, ki na enem
mestu povezuje najboljše rešitve za
dom in zabavo.
NFD
Net financial debt
Neto finančni dolg
NPS
Net Promotor Score
Kazalnik lojalnosti uporabnikov
OPEX
Operating Expenses
Operativni stroški
ORVI
Measurement of organisational
vitality
Merjenje organizacijske vitalnosti
OSS
Operations Support system
Sistem za podporo delovanja
OBN
Open Broadband network
Odprto širokopasovno 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
POP
Point of Presence
Točka prisotnosti
PPDFT
Anti-money laundering/counter-
financing of terrorism (AML/CFT)
compliance officer
Pooblaščenec za preprečevanje pranja
denarja in financiranja terorizma
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
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
Slovenski državni holding
SD-WAN
Software-defined wide-area
networking
Programsko opredeljena
širokopasovna omrežja
SMS
Short Message Service
Storitev kratkih sporočil
SOK
Slovenian Advertising Code
Slovenski oglaševalski kodeks
SPLA
Service Provider Licence
Agreement
Licenčni sporazum za ponudnika
storitev
BCMS/SUNP
Business continuity management
system
Sistem upravljanja neprekinjenega
poslovanja
EEMS
Efficient Energy Management
System
Sistem učinkovitega ravnanja z
energijo
SURS
Statistical office of Republic
Slovenia
Statistični urad Republike Slovenije
ISMS/SUVI
Information security management
system
Sistem upravljanja varovanja
informacij
TDM
Time Division Multiplex
Časovni multipleks, sistem s
porazdeljevanjem časa
GHG
Greenhouse gases
Toplogredni plini
TLSG
Shares of Telekom Slovenije
Delnica družbe Telekom Slovenije
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Abbreviation
English term
Slovene translation
TOM Telephone
Phone for children and adolescents
Telefon za otroke in mladostnike
TSLO-CERT
Telekom Slovenije – Cyber security
Response Team
Odzivni center za kibernetsko varnost
Telekoma Slovenije
IMAD/UMAR
Institute of macroeconomic analysis
and development
Urad za makroekonomske analize in
razvoj
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
SCC
Security Control Centre
Varnostno nadzorni center
VoIP
Voice over IP
Govor prek IP-protokola
VPN
Virtual private network
Navidezno zasebno omrežje
Wi-Fi
Wireless Fidelity
Brezžično omrežje po standardih IEEE
802.11
xWDM
Wavelength Division Multiplexing
Zgoščeni valovni multipleks
ZDIJZ
Access to Information of a Public
Nature Act
Zakon o dostopu do informacij javnega
značaja
ZDUS
Association of Pensioner Societies
of Slovenia
Zveza društev upokojencev Slovenije
ZEKom-2
Electronic Communications Act
Zakon o elektronskih komunikacijah
ZGD
Companies Act
Zakon o gospodarskih družbah
ZPPOGD
Act Governing the Remuneration of
Managers of Companies with
Majority Ownership held by the
Republic of Slovenia or Self-
Governing Local Communities
Zakon o prejemkih poslovodnih oseb v
gospodarskih družbah v večinski lasti
Republike Slovenije in samoupravnih
lokalnih skupnostih
ZVOP
Personal Data Protection Act
Zakon o varstvu osebnih podatkov
ZZPri
Whistleblower Protection Act
Zakon o zaščiti prijaviteljev
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
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Publisher: Telekom Slovenije, d.d., Cigaletova 15, 1000 Ljubljana - official version
Text and editing: Skupina Telekom Slovenije in Studio Kernel d.o.o.
Translation: Amidas d.o.o. in Deloitte revizija, d.o.o.
Photography: Telekom Slovenije Group
Ljubljana, April 2023