Annual Report • Apr 18, 2025
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Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 Contents 1 LETTER FROM THE PRESIDENT OF THE MANAGEMENT BOARD ..............................................1 Statement of responsibility of the Management Board ....................................................................................... 4 2 LETTER FROM THE PRESIDENT OF THE SUPERVISORY BOARD ..............................................5 3 THE TELEKOM SLOVENIJE GROUP IN 2024 ..................................................................................6 3.1 About the Telekom Slovenije Group ............................................................................................................ 6 3.2 Operations of the Telekom Slovenije Group in 2024 .................................................................................. 8 3.3 Significant achievements in 2024 ............................................................................................................... 12 4 STRATEGIC BUSINESS PLAN ....................................................................................................... 14 4.1 Strategic Business Plan of the Telekom Slovenije Group for the period 2024 to 2028 ......................... 14 4.2 Achievement of planned objectives by the Telekom Slovenije Group in 2024 ....................................... 17 5 CORPORATE GOVERNANCE STATEMENT ................................................................................. 19 5.1 Corporate Governance Policy ..................................................................................................................... 19 5.2 Statement of compliance with the Code .................................................................................................... 19 5.3 Management and supervisory bodies ........................................................................................................ 21 5.4 Other explanations in accordance with the Companies Act .................................................................... 36 6 SHARE TRADING AND OWNERSHIP STRUCTURE ..................................................................... 38 7 OPERATIONS OF THE TELEKOM SLOVENIJE GROUP IN 2024 ................................................ 43 7.1 Business environment and trends in the sector ....................................................................................... 43 7.1.1 Impact of the macroeconomic environment on operations ............................................ 43 7.1.2 Comparison of the Slovenian telecommunications sector with the EU ......................... 45 7.1.3 Telecommunications sector in Kosovo .......................................................................... 49 7.2 Risk management ........................................................................................................................................ 51 7.3 Performance of the Telekom Slovenije Group .......................................................................................... 56 7.4 Financial performance of the Telekom Slovenije Group .......................................................................... 59 7.5 Investments .................................................................................................................................................. 61 7.6 Development of the network, technologies and services ........................................................................ 62 7.7 Marketing and sales ..................................................................................................................................... 71 7.7.1 Market and market shares in key service segments ...................................................... 71 7.7.2 Sales .............................................................................................................................. 72 7.7.3 Brands and market communications .............................................................................. 79 8 SUSTAINABILITY STATEMENT OF THE TELEKOM SLOVENIJE GROUP .................................. 87 8.1 General information (ESRS 2) ..................................................................................................................... 87 8.1.1 About the annual report (BP-1) ...................................................................................... 87 8.1.2 Management of sustainability at the Telekom Slovenije Group ..................................... 89 8.1.3. Business model and value chain of the Telekom Slovenije Group ................................ 93 Value chain of the Telekom Slovenije Group ..................................................................................................... 97 8.1.4 Inclusion and participation of stakeholders (SBM-2) ..................................................... 98 8.1.5 Impacts of the Telekom Slovenije Group’s operations ................................................ 102 8.2 Environmental information (E) .................................................................................................................. 108 8.2.1 Climate change (E1) .................................................................................................... 109 8.2.2 Circular economy (E5) ................................................................................................. 118 8.2.3 Disclosures of indicators for economic activities that are included in the EU Taxonomy 120 8.2.4 Biodiversity in the Sečovlje saltpans ............................................................................ 128 8.3 Social information (S) ................................................................................................................................ 133 8.3.1 Employees (S1) ............................................................................................................ 133 8.3.2 Users (S4) .................................................................................................................... 146 8.3.3 Support to local communities ....................................................................................... 154 8.4 Governance information (G1) ................................................................................................................... 157 8.4.1 Corporate culture ......................................................................................................... 157 8.4.2 Responsible supply chain ............................................................................................ 162 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 8.4.3 Taxes and auditing ....................................................................................................... 164 8.4.4 Regulation of electronic communications .................................................................... 165 8.4.5 Management systems .................................................................................................. 167 8.5 Independent Limited Assurance Report on the Consolidated Sustainability Report .......................... 169 9 FINANCIAL REPORT OF THE TELEKOM SLOVENIJE GROUP AND THE COMPANY TELEKOM SLOVENIJE, D.D., FOR THE YEAR 2024 ..................................................................................... 175 9.1 Financial statements of the Telekom Slovenije Group and Telekom Slovenije ................................... 176 9.2 Notes to the consolidated financial statements of the Telekom Slovenije Group and the separate financial statements of Telekom Slovenije .............................................................................................. 184 9.3 Independent auditor’s report for the Telekom Slovenije Group and the company Telekom Slovenije ..................................................................................................................................................................... 263 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 Disclosure requirements in ESRS covered by the undertaking’s sustainability statement ................ VIII 10.7 Abbreviations of technical terms.............................................................................................................. XXI 1 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 1 LETTER FROM THE PRESIDENT OF THE MANAGEMENT BOARD Dear Shareholders, Investors, Business Partners, Users and Co-Workers, The Strategic Business Plan for the period 2024 to 2028 sets out the Telekom Slovenije Group’s main objectives. Growth is our main ambition. Our aim in Slovenia and Kosovo is to provide an increasing number of users with high-quality, secure and reliable services via the most-advanced infrastructure. We carried out numerous activities in 2024 to fulfil established plans. We focused on increasing operational efficiency, increasing the number of users and continuously improving the quality and value of our services. We continued to expand the portfolio of services, particularly in the area of IT solutions. We once again exceeded our targets The Telekom Slovenije Group performed well in 2024, exceeded established objectives and improved operations significantly relative to 2023 in all important segments and on all target markets. The Telekom Slovenije Group generated EUR 720.0 million in operating revenues in 2024, which was an increase of 2% relative to 2023 and above planned amounts. Earnings before interest, taxes, depreciation and amortisation (EBITDA) totalled EUR 240.3 million at the Telekom Slovenije Group level, an increase of 5% (or EUR 11.7 million) relative to 2023 and 3% higher than planned. The EBITDA margin (i.e. EBITDA as a proportion of sales revenue) was 33.7% at the Group level. Following the calculation of income tax (including deferred taxes), the Telekom Slovenije Group generated a net profit of EUR 55.2 million, an increase of 17% (or EUR 8.1 million) relative to 2023 and 28% higher than planned. We recorded the highest level of customer satisfaction in the last three years We significantly enhanced our strengths in providing the best user experience. The satisfaction of Telekom Slovenije’s users (Customer Satisfaction Index or CSI), which was measured via market research in March 2024 in the fixed and mobile segments, reached its highest value of the last three years, which was seen in part in an increase in the number of new subscribers. At the end of 2024, the Group had 4% or 82,766 more retail mobile users that at the end of 2023. Fixed retail broadband and TV connections were up by 4% or 12,120 connections at the end of 2024 relative to December 2023. With a market share of 35.8%, we remain the leader in the mobile services segment and increased our market share in the fixed internet access and IPTV segments, while at 34%, we assumed the leading market share on the fibre optic FTTH network. We are the leader in the mobile segment in Kosovo with a market share of 53%, and hold a 28% market share in the fixed segment. We are focused on technological development and the expansion of networks as the basis for a superior user experience Telekom Slovenije is the largest telecommunications operator is Slovenia and the leading provider of the most-advanced comprehensive ICT solutions. We are aware of our special roles and responsibilities. We represent the core service and infrastructure basis for the digitalisation of society and the digital transformation of the economy. For this reason, we have invested more than EUR 680 million over the last ten years to develop and maintain our fixed and mobile networks. In the future, users at fixed locations will only be able to access the internet via fibre optic networks. Today, we already provide such high-capacity and reliable access to more than 478,000 households. We exceeded 213,000 retail broadband connections in 2024, and facilitated access to our fibre optic network by an additional 19,000 households. Last year, we implemented the biggest project to date aimed at the modernisation and expansion of the 4G and 5G radio network, which includes more than 540 base stations. We increased 5G coverage by one-third, so that more than 80% of the Slovenian population now has access to the aforementioned technology. We continue to increase the capacities of the network, and also doubled package speeds 2 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 and facilitated data transfer at gigabit speeds. At locations where the fibre optic network is not available, we facilitated fixed broadband services on the mobile network. We set up the first private 5G mobile network in the region. That network facilitates the use of new applications, services and solutions for the digitalisation of operations. We ensured an additional frequency spectrum in all municipalities with the aim of facilitating our long-term development. We are continuing with the very intensive modernisation and expansion of the network to provide the best user experience. We are also a leader in the deployment of 5G technology in Kosovo, where we already cover 65% of the population. Customer relations The purpose of our operations is to understand and anticipate the needs of our users, and to design appropriate communication and communication-related solutions. We provide a superior overall user experience through a world-class network, and a respectful and responsible approach to users. We continuously improve our processes, including the reduction of the time required to connect new users and clear faults. We improved the average fault clearance time by 30% relative to 2023, while we decreased the average time to the first offered appointments for a visit by a technician by 50%. Users rate our operations via the NPS (Net Promotor Score). By raising the average annual transactional NPS to 62 in 2024 (an increase of four points relative to the previous year), we demonstrated that a rapid response and high-quality support can increase customer satisfaction significantly. We put security first Cyber and information security is a precondition for the continuous functioning of social and economic systems. Telekom Slovenije is strengthening its role in the area of information and cyber security. Playing a key role in that respect is Telekom Slovenije’s Cyber Security and Resilience Centre, which is one of the largest and most-advanced centres of its kind in the region. More than one hundred experts are responsible for ensuring the cyber security of our systems, networks and services, and for the comprehensive security solutions we offer business users. Security risks in the environment are managed through continuous investments in technologies for the effective and precise detection of security threats. The rapid rise in these threats is evidenced by the fact that our experts handled more than 250% more security incidents last year than the year before. Continuous investments in equipment, knowledge and experience enables our experts to respond appropriately to cyber threats. We are aware that it is impossible to ensure total cyber security. The best possible guarantees are working with the best experts, employing the best technical solutions and a commitment to continuous improvements in the identification and elimination of cyber threats. We invest in the sustainable and socially responsible growth of the Group We believe that growth must be sustainable. Through investment and other business decisions, we will contribute to the achievement of carbon neutrality under Scopes 1 and 2 by the end of 2028. By signing a loan agreement in the amount of EUR 80 million, we secured financing for investments, relieved pressure on current operations and consolidated long-term debt. In the five-year period from 2024 to 2028, we are planning investments of EUR 951 million, which will ensure the improved accessibility and capacities of our fibre optic network and mobile services, and even more attractive content on our NEO IPTV platform. The year 2025 will be demanding in terms of investments. We will invest EUR 218 million in the development of the network and services. By the end of the year, we will cover 99% of the Slovenian population with the 5G network, and will thus bridge the digital divide and contribute to the objectives of Slovenia’s digital transformation strategy until 2030. Together with the growing prevalence of digital technologies, the importance of the balanced, secure and responsible use of screens is also increasing. For this reason, we developed the Uživajmo pametno (Enjoy Smart) platform, which we use to spread messages and recommendations regarding digital dangers and the smart use of technology. As a responsible development partner, we provide local communities with solutions for smart cities and communities and eCare services, and are active in several European projects aimed at the development of new services and technologies. We are developing and testing new solutions in the areas of IoT, 5G and 6G technologies, cyber security, critical communications support and eHealth. 3 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 We continued efforts in 2024 to automate processes, and are already including the use of artificial intelligence in those activities where this makes sense. Based on past experience and the rapid advancement of capabilities, we recognise and are realising the great potential of this technology to help us achieve our objectives. The Telekom Slovenije Group’s team, which comprised 3,200 employees at the end of 2024, pays special attention to an inclusive and cooperative culture, knowledge and training, and to HR and sustainability practices. The international Top Employer certificate, which we received for the fourth time, will encourage and commit us to continuing in that direction. Good operating results are driven by the excellent work of the entire team. The Telekom Slovenije Group community comprises employees, users, shareholders, investors and business partners. We are connected by a clear objective: to grow and increase the value of the Telekom Slovenije Group. On behalf of Telekom Slovenije’s Management Board, I would like to thank you for your excellent cooperation in the achievement of that common objective in 2024. Boštjan Košak, President of the Management Board 4 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 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 2024, as well as the accounting policies applied and the notes to the financial statements. The members of Telekom Slovenije, d.d.’s Management Board hereby find that: – to the best of our knowledge, the annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 and all its constituent parts, including the corporate governance statement and the sustainability report, have been compiled and published in accordance with valid legislation and the International Financial Reporting Standards and the European Sustainability Reporting Standards as adopted by the EU; – the accounting report and accompanying notes have been compiled in accordance with the relevant financial reporting framework, and provides a true and fair picture of the assets, liabilities, financial position and operating results of Telekom Slovenije, d.d. and the Telekom Slovenije Group as a whole; – the selected accounting policies were applied consistently in the compilation of the financial statements and any changes to the policies were disclosed, and that accounting estimates were made fairly and with careful consideration, according to the principle of prudence and the diligence of a good manager, and under the assumption that Telekom Slovenije, d.d. and the Telekom Slovenije Group are going concerns; and – the business report includes a fair presentation of the development and operating results of Telekom Slovenije 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, 11 March 2025 5 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 2 LETTER FROM THE PRESIDENT OF THE SUPERVISORY BOARD Dear Stakeholders, Telecommunications represent the bedrock of contemporary society, the economy and technological development. Advances in telecommunications technologies are increasing connectivity and thus productivity. The negative side is that exposure to cyber risks is also on the rise. Telekom Slovenije Group companies have exploited all of the aforementioned opportunities and challenges to grow and develop their operations. Significant achievements were seen in 2024. The Telekom Slovenije Group successfully achieved established objectives, increased the number of users and improved the user experience. This is the result of prudent investments in the most-advanced technologies, including the modernisation of the mobile network and the expansion of coverage by 5G technology, which had already exceeded 80% of the Slovenian population by the end of 2024. The Group is continuously active in the promotion of the transformation to a digitally connected Slovenia through the development and introduction of new technologies, services, solutions and projects. In addition, the Group effectively managed cyber security challenges last year and further strengthened its services in this key area of operations. Achieved results are a reflection of the effective work and commitment of the Management Board and all employees in the achievement of established objectives. The Telekom Slovenije Group will continue in the future to focus on providing the best user experience, while continuously progressing, strengthening cyber resilience, developing solutions that respond to the needs of users and the wider community, and fulfilling its commitments to corporate sustainability and social responsibility. In this way, we are promoting digitalisation and creating a more people- and environmentally friendly society. I believe that all of the above strengthens the trust of shareholders and other stakeholders in the successful future development of Telekom Slovenije and the Telekom Slovenije 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 2024. The composition, content and work of the Supervisory Board and its committees during the 2024 financial year are presented in more detail in the report on the work of the Supervisory Board. Žiga Debeljak, MSc, President of the Supervisory Board Telekom Slovenije 6 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 3 THE TELEKOM SLOVENIJE GROUP IN 2024 3.1 About the Telekom Slovenije Group The Telekom Slovenije Group operates in South-East Europe. The parent company 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. Through its services, it facilitates the digitalisation of society and the green transition as well as the safe, smart and responsible use of technologies. 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 2024 are presented in the picture below, and in more detail on the website https://www.telekom.si/en/about-us/telekom- slovenije-group/subsidiraries. There were no changes in the composition of the Telekom Slovenije Group or in the ownership of subsidiaries in 2024. All Telekom Slovenije subsidiaries are under the 100% ownership of Telekom Slovenije. 7 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 Subsidiaries: IPKO offers a comprehensive range of telecommunication services in Kosovo, including mobile telephony, internet access and digital TV. GVO offers comprehensive solutions in the areas of project design, surveying and the construction, management and maintenance of telecommunications networks. It has two subsidiaries: Optic-tel and Infratel. Avtenta offers advanced and verified business solutions for the optimisation and improvement of the efficiency of companies, organisations and public administration in Slovenia and the wider region. TSmedia has a long tradition in the development of digital content, and the design and management of media and information points. TSinpo is a disabled workers company that provides business and logistics support services, refurbishes telecommunications equipment and offers a range of cardboard sleeves. Soline is the manager of the Sečovlje Salina Nature Park, where natural and cultural heritage is preserved through the traditional production of salt. The company also offers thalassotherapy at the Thalasso Spa Lepa Vida. SIOL companies: Telekom Slovenije established SIOL Prishtina, SIOL Belgrade, SIOL Podgorica, SIOL Sarajevo, SIOL Skopje and SIOL Croatia for the purpose of building a regional fibre optic network. The aim of the Heart Foundation 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 activities of the Telekom Slovenije Group comprise: • fixed and mobile communication services, • 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 control and upgrading of terminal equipment and the production of packaging and • the preservation of natural and cultural heritage in the Sečovlje Salina Nature Park, salt production and tourism activities. 8 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 3.2 Operations of the Telekom Slovenije Group in 2024 Performance indicators in EUR thousand 2024 / 31 December 2024 2023 / 31 December 2023 Index 24/23 Sales revenue 712,442 694,913 103 EBITDA 240,316 228,569 105 EBITDA margin = EBITDA / sales revenue 33.7% 32.9% 103 EBIT 72,843 64,138 114 Return on sales = EBIT / sales revenue (EBIT margin) 10.2% 9.2% 111 Net profit 55,188 47,065 117 Assets 1,338,533 1,317,866 102 Equity 672,947 658,638 102 Return on equity (ROE) 8.3% 7.4% 112 Return on net assets (RONA) 6.5% 5.8% 112 Net financial debt 372,912 355,737 105 Net financial debt / EBITDA 1.6 1.6 100 Investments (CAPEX) 218,992 188,037 116 Investments as a proportion of turnover 30.7% 27.1% 114 Number of employees as at the last day of the period 3,200 3,253 98 For a definition of the items and indicators, see point 10.2 Alternative performance measures. Retail mobile users Retail mobile users as at 31 December 2024 31 December 2023 Index 24/23 Slovenia 991,307 953,441 104 Kosovo 1,000,030 955,130 105 Telekom Slovenije Group 1,991,337 1,908,571 104 Retail broadband and TV connections Retail broadband connections as at 31 December 2024 31 December 2023 Index 24/23 Slovenia 213,582 201,236 106 Kosovo 102,594 102,820 100 Telekom Slovenije Group 316,176 304,056 104 9 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 Sales revenue Earnings before interest, taxes, depreciation and amortisation (EBITDA) Operating profit (EBIT) and net profit 652 695 712 0 100 200 300 400 500 600 700 800 2022 2023 2024 in EUR million 216,5 228,6 240,3 0 50 100 150 200 250 300 2022 2023 2024 in EUR million 50.4 64.1 72.8 37.5 47.1 55.2 0 10 20 30 40 50 60 70 80 2022 2023 2024 in EUR million EBIT Net profit 10 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 Structure of equity and liabilities, and net financial debt Investments as a proportion of sales revenues 612 659 673 664 659 666 401 356 373 0 50 100 150 200 250 300 350 400 450 0 200 400 600 800 1.000 1.200 1.400 1.600 2022 2023 2024 NFD in EUR million Equity (in EUR million) Liabilities (in EUR million) Net financial debt (NFD) (in EUR million) Equity and Liabilities in EUR million 168 188 219 25,7% 27,1% 30,7% 23% 24% 25% 26% 27% 28% 29% 30% 31% 32% 0 50 100 150 200 250 2022 2023 2024 in EUR milion Investments Proportion of sales revenue in % 11 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 Indicators of the sustainable (ESG) operations of the Telekom Slovenije Group 2024 2023 Index 24/23 Environmental indicators Consumption of electricity (in MWh) 89,464 87,136 103 Energy intensity (in MWh/EUR million) 125.6 125.4 100 Carbon footprint per employee (in tonnes of CO 2eq ) 10.32 15.15 68 Total waste (in tonnes) 4,932 4,103 120 Social indicators Number of employees 3,200 3,253 98 Average age of employees 44 44 100 Proportion of the under-represented gender 33.5% 33.0% 102 Number of employees with a disability 88 92 96 Employee turnover 7.0% 7.6% 92 Number of education and training hours per employee 28.2 26.3 107 Proportion of employees with a master’s degree and doctorate 5.2% 5.3% 98 Coverage of the Slovenian population with 5G technology 80.0% 60.7% 132 Coverage of the Slovenian population with 4G technology 99.0% 97.5% 102 Complaint rate as a proportion of all issued sales invoices 0.65% 0.63% 103 Costs earmarked for sponsorships and donations as a proportion of operating revenues 0.30% 0.30% 100 Proportion of funds for purchases from local suppliers (Slovenia) 88% 88% 100 Proportion of suppliers registered as sheltered workshops 0.47% 0.46% 102 Governance indicators Value added (in EUR thousand) 370,272 354,697 104 Value added per employee (in EUR) 114,760 108,886 105 Proportion of the under-represented gender on management and supervisory bodies as at 31 December 43% 43% 100 Average age of members of Telekom Slovenije’s Management Board 51 50 102 Personal data protection (number of inspections by supervisory authorities) 1 3 33 Protection of privacy (number of reports of potential breaches of customer’s privacy) 92 123 75 All data relate to the Telekom Slovenije Group, unless it is stated that they relate to Slovenia or Telekom Slovenije. With the start of reporting according to the ESRS in accordance with the requirements of the Companies Act (ZGD-1M), the level of consolidation of non-financial reporting is aligned with financial reporting. The data has not been audited. 12 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 3.3 Significant achievements in 2024 Significant events after the balance sheet date are presented in the accounting report in point 46. Events after the reporting date. 13 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 Recognitions and awards received by the Telekom Slovenije Group in 2024 • Gold Sempler: At the 23rd SEMPL media conference, Telekom Slovenije and TSmedia received the prestigious Gold Sempler Award in the category Best Use of Data for Targeted TV Advertising on the NEO platform. • Sporto: Telekom Slovenije received special recognition for promoting responsible cheering during the Paris Olympics. • Websi: in the area of digital achievements, Telekom Slovenije received two awards for Sebatar: 2nd place for a new website and comprehensive web presence in the Telecommunications category and 2nd place for the NAI gift, an AI tool for gift-giving in the category of Use of Advanced Technologies. • Trusted Brand 2024: Telekom Slovenije received the award in the telecommunications category. Research was conducted amongst Slovenian users and customers. • Telekom Slovenije ranks amongst the 10 most respected employers in Slovenia. • Top Employer: Telekom Slovenije received the prestigious Top Employer certificate, which is awarded by the global Top Employers Institute organisation. That certificate represents an international professional standard in the area of sustainability and HR practices that companies implement for their employees. • Best Buy Award 2024: Telekom Slovenije received the award for the best value for money. According to Slovenian consumers, we are the best provider of mobile services, internet access services and business solutions. • Most secure company in 2024: at the international Corporate Security Days conference, Telekom Slovenije received the Grand Security Award for the most secure company in 2023. It is the most prestigious award in the area of security in Slovenia. The Slovenian Marketing Association named us a finalist in the Excellent Step category for our cyber security project. • VCSP (Veeam Cloud & Service Provider): Telekom Slovenije was named Partner of the Year in the Best Solution Selling and Practice Development category. The award confirms our commitment to ensuring high standards in Veeam solutions that rely on superior quality backup and recovery solutions. • SoMo: the upgraded telekom.si website won a regional award in the SoMo Web category. • Heart Friendly Company: Telekom Slovenije received the Heart Friendly Company certificate for the increased safety of employees at work, at home or on the road. • eHealth: gold award from Central Slovenia Region of the Chamber of Commerce and Industry of Slovenia (GZS) for the best innovations in the region for its eCare and vital sign monitoring solutions. • Web Retail Award 2024: Telekom Slovenije’s Online Store ranked first in the Best Delivery Experience category. • Taxpayer of the Year: IPKO received the Taxpayer of the Year award for 2023, confirmation of its role in the development of the local community in Kosovo through ethical business practices. • TOP Investor in knowledge: in the scope of the Edutainment conference, Telekom Slovenije received a gold certificate as TOP Investor in education, ranking us once again among organisations that exceed the average in terms of investments in employee education and training. • Fit Company 2024: Telekom Slovenije was recognised for understanding the importance of healthy working habits, encouraging physical activity and creating a supportive environment for its employees. Participation in sport is one of the important factors of a healthy life within the Telekom Slovenije Group. 14 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 4 STRATEGIC BUSINESS PLAN 4.1 Strategic Business Plan of the Telekom Slovenije Group for the period 2024 to 2028 The Strategic Business Plan of the Telekom Slovenije Group for the period 2024 to 2028 sets out our future development in a period of rapid technological development and advances in the ICT sector. Ensuring the best user experience is at the core of our strategy. We are guided by the following four values that are incorporated in all levels of our operations when pursuing our mission, vision and established objectives: motivated, open, self-confident and team- oriented (M.O.S.T.). 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. We provide the most-advanced telecommunication services, fast and reliable internet and advanced ICT services. We thus facilitate comprehensive social development, cross-sectoral cooperation and growth in productivity, as well as more equitable access to services and social inclusion. The business model and value chain are presented in section 8.1.3 Business model and value chain of the Telekom Slovenije Group. Helping shape trends in the sector 15 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 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 services allows us to offer users the most for more: the most quality, the most security, the most advanced solutions and services, and the most development. We simplify users’ lives 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 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. Employees, technology and responsible and sustainable operations play a key role in development and the generation of value. Employees We are creating an inclusive and cooperative culture and a safe and healthy work environment, ensuring 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 sustainability, 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. 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. 16 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 STRATEGIC PILLARS 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 placed on making better use of the existing infrastructure. DIGITAL Developing new business models. As a reliable provider of infrastructure and the digitalisation of services, we plan the highest growth in the ICT segment and digital services. We will continue to increase the value of those services through the inclusion of cyber security solutions. EFFECTIVE Raising commercial awareness. We are improving operational efficiency through the continued digitalisation of operations, the reduction of costs and the improved efficiency of investing activities. Objectives of the Telekom Slovenije Group for 2025 in EUR million Sales revenue 726.2 EBITDA 248.9 Net profit 53.6 Investment value 218.4 We are planning investments of EUR 218.4 million at the Telekom Slovenije Group level in 2025. In 2025, the Telekom Slovenije Group will focus its investments on the modernisation of the mobile network, which includes increasing the coverage and capacities of the 5G network, and on expanding and increasing the capacities of Telekom Slovenije’s fibre-optic network and GVO's open broadband fibre optic networks. We will also modernise a significant part of the IT infrastructure and the associated software for digital support systems. A portion of investments will be earmarked for increasing energy efficiency and strengthening cyber resilience. Planned investments also include investments in software rights and the capitalisation of lease payments in accordance with IFRS 16, as well as investments in the attraction of customers. 17 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 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 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. 4.2 Achievement of planned objectives by the Telekom Slovenije Group in 2024 The Telekom Slovenije Group achieved the objectives set out in the Annual Business Plan for 2024. An overview of key activities and achievements is presented below. Achievement of the planned objectives of the Telekom Slovenije Group for 2024 in EUR million Achieved in 2024 Planned in 2024 Index Achieved/ Planned Total operating revenues 720.0 717.4 100 Earnings before interest, taxes, depreciation and amortisation (EBITDA) 240.3 233.6 103 Net profit 55.2 43.2 128 Investments 219.0 235.7 93 CONNECTED - The proportions of satisfied and completely satisfied Telekom Slovenije customers in the fixed and mobile segments (CSI) reached their highest levels in the last three years. - In 2024, Telekom Slovenije implemented the largest 4G and 5G radio network modernisation and expansion project to date, which included more than 500 base stations. We thus increased the coverage of the population with the 5G signal from 60% to 80%, and coverage with the LTE/4G signal to 99%. We also launched the region's first private RAN network. IPKO upgraded 100 sites with 5G coverage. - Telekom Slovenije exceeded 213 thousand retail broadband connections in 2024. In 2024, we facilitated the connection of more than 19 thousand additional households to our fibre optic network, bringing the total number of households connected to our fibre optic network to nearly one half of all Slovenian households or nearly half a million. - We exceeded our target transactional NPS by 2 index points. - In Slovenia, we maintain the highest market share in both the mobile and IPTV services segments. Our market shares were as follows: 35.7% of the mobile telephony segment, 27.6% of the fixed broadband internet access segment and 43.0% of the IPTV segment (figures for third quarter of 2024; source: AKOS). - IPKO is the leading operator in Kosovo, with a 53% share of the mobile telephony segment and a 28% share of the fixed segment. 18 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 DIGITAL - We developed new functionalities and upgraded them with new environmental sensors in the scope of smart city and community solutions, through which we provide municipalities traffic management services, smart parking and environmental measurements (e.g. air pollution and noise) . - The number of business users of Cyber Security and Resilience Centre services was up in 2024 and now exceeds 219. - 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, 5G and 6G, cyber security, support for communications and eHealth. - We help numerous users with the eCare service. In cooperation with municipalities and the Doctor 24 service, we exceeded plans at the eCare Assistance Centre, and facilitated access to digital health care services for 1,700 users. - We upgraded the NEO platform with new and improved functionalities, such as simplified voice control, an expanded back-view functionality and the introduction of a range of new programmes. We surpassed the milestone of 300,000 NEO Smartbox subscribers. We developed a new NEO mobile application, which has received the highest user ratings in its category in the Apple Store and Google Play. - The VALÚ Smart Wallet was used by more than 150,000 users in 2024, an increase of 7% relative to the previous year. We expanded the number of points of sale that facilitate payments with VALÚ and introduced the possibility of payments on the e-Taxes portal. We introduced an additional functionality in the VALÚ Smart Wallet: the possibility of identification using a biometric ID card on a mobile phone. - Payments for digital content by our users in the App Store and Google Play were up by 25% relative to 2023, while the number of users was up by 30%. - The portfolio in the Online Store platform is continuously updated and now comprises around 5,500 products spanning more than 84 categories, with more than 4,000 of those products available in the Loyalty Programme with the option of instalment payments. We achieved a high transaction NPS and received a very good trust mark of 9.2 from CERTIFIED SHOP® (a symbol of safe online shopping), and ranked first in the Best Delivery Experience category in the scope of the Web Retail Award 2024. EFFECTIVE - The Telekom Slovenije Group had 3,200 employees at the end of the year, with Slovenian companies accounting for 2,720 of that number. The number of employees was down 1.6% relative to the previous year. - Group employees received an average of 28.2 hours of training, while that figure was 32.4 hours at Telekom Slovenije. - We signed a loan agreement in the amount of EUR 80 million to finance investments, current operations and the consolidation of long-term debt. Those funds will facilitate the implementation of an ambitious development strategy and strengthen Telekom Slovenije’s role on the market. - 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. 19 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 5 CORPORATE GOVERNANCE STATEMENT 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 2024. It relates to the period 1 January 2024 to 31 December 2024. We also disclose significant events after the aforementioned period and up to the publication of the statement (for more information, see point 46. of the accounting report Events after the reporting date). 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 (https://www.telekom.si/en/about-us/company/corporate-governance) and in the Ljubljana Stock Exchange’s electronic information system (http://seonet.ljse.si). 5.1 Corporate Governance Policy Corporate governance within the Telekom Slovenije Group and at Telekom Slovenije 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, 1 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. Telekom Slovenije, d.d.’s 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 stakeholder groups, the associated communication strategy and cooperation with those groups, the policy governing links between the Company and its subsidiaries, and the commitment to identifying conflicts of interest and the independence of members of the Management Board and Supervisory Board. The Supervisory Board and Management Board update 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 performing management and supervisory functions at Telekom Slovenije Group companies. 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 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). 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 2024 financial year: 1 An updated Corporate Governance Rulebook of the Telekom Slovenije Group was adopted in December 2024 and entered into force on 20 January 2025. 20 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 - Slovenian 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 and the Recommendations and Expectations of Slovenski državni holding, which were adopted by Slovenski državni holding in December 2023 and are published on the website www.sdh.si; - Recommendations to Public Companies Regarding Notification, which were adopted by the Ljubljana Stock Exchange on 25 March 2024. Those recommendations entered into force on 9 April 2024 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. The Code of Ethics is published on the website https://www.telekom.si/media/iitfzami/kodeks-poslovne-etike.pdf. Statement of compliance with the Slovenian 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 accordance with the recommendation of the Code, Telekom Slovenije revised the Policy Governing the Diversity of the Management Board and Supervisory Board of Telekom Slovenije, d.d. in 2024. Telekom Slovenije deviates in part from the recommendations, as objectives, with the exception of gender diversity, are stated in descriptive terms, but not in numbers or percentages. 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 was 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 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 has not yet been performed. The self- assessment of the Supervisory Board for 2024 was carried out based on the methodology of the Slovenian Directors’ Association. Based on that self-assessment, the Supervisory Board held discussions, adopted an action plan of improvements and implemented the latter by the established deadlines. Succession system for the Management Board Recommendation 22.1: a succession policy for the senior management bodies and key management positions of Telekom Slovenije Group companies was adopted in March 2025. Publication of rules of procedure of bodies Recommendation 32.7: Telekom Slovenije deviates in part from this recommendation, as only the rules of procedure of the Management Board have been published 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: 21 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 Diversity Policy Recommendations 3.8.1 and 3.8.3: Telekom Slovenije deviates in part from the recommendations in the part that relates to the specific objectives of individual aspects of diversity. These are largely defined in descriptive terms in the Diversity Policy, with only a quantitative objective for gender representation by the end of 2026. Succession Policy Recommendation 7.10: a succession policy for the senior management bodies and key management positions of Telekom Slovenije Group companies was adopted in March 2025. 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). Policy Governing the Diversity of the Management and Supervisory Bodies of Telekom Slovenije Group Companies The Supervisory Board of Telekom Slovenije, d.d. adopted the Policy Governing the Diversity of the Management and Supervisory Bodies of Telekom Slovenije Group Companies on 13 February 2024. The policy states that the following aspects must be taken into account in the implementation of the Diversity Policy: • Expertise and competences: the management and supervisory bodies must comprise experts who complement each other in terms of expertise and competences. • Continuity of work: it is important that not all members of bodies are replaced at the same time to ensure the functioning of the Company with the aim of achieving established objectives and implementing its strategy. The continuity of the work of management and supervisory bodies is partially compliant. The Succession Policy for the management and supervisory bodies of the Telekom Slovenije Group is currently being drafted. • Experience and age structure: a diverse age structure of members facilitates the transfer of skills and experience. It is thus important to have an appropriate balance in terms of age representation. The composition of the Management Board and 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. • Gender representation: the criteria for the selection of members must be non-discriminatory in terms of gender. The objective is to achieve heterogeneity, with the under-represented gender accounting for 33% of the total number of members of the Company’s Management Board and Supervisory Board by the end of 2026. The gender diversity target was met in year 2024. The under-represented gender accounts for 43% of the overall composition of the Company’s Management Board and Supervisory Board (six women and eight men). The other aspects of the Diversity Policy are largely met and are in line with the Policy Governing the Diversity of the Management and Supervisory Bodies of Telekom Slovenije Group Companies. 5.3 Management and supervisory bodies Telekom Slovenije is a public limited company with a two-tier governance system. The Company is managed 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. 22 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 GENERAL MEETING OF SHAREHOLDERS AND RIGHTS OF SHAREHOLDERS Telekom Slovenije treats all shareholders equally, and consistently ensures 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 Companies Act (hereinafter: 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 (AJPES) is deemed the official date of that convocation. Shareholders exercise their rights at the General Meeting of Shareholders themselves of via proxies. Detailed information about the rights of shareholders is published to coincide with the convening of the General Meeting of Shareholders and are accessible on the Company’s website (https://www.telekom.si/en/about-us/investor- relations/shareholders-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) and who have registered in writing at least three days prior to the General Meeting of Shareholders are entitled to participate and vote at the General Meeting of Shareholders. The shareholders of Telekom Slovenije met at two General Meetings in 2024. At total of 78.97% of shares with voting rights were represented at the 37th General Meeting of Shareholders held on 7 February 2024. At the General Meeting of Shareholders, the Company’s shareholders: • approved the proposed resolution on the use of distributable profit, which amounted to EUR 40,292,646.55 for 2022. At total of 79.22% of shares with voting rights were represented at the 38th General Meeting of Shareholders held on 17 June 2024. 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 2023; • were briefed on the report on the remuneration of members of Telekom Slovenije’s Management Board and Supervisory Board for 2023; • conferred official approval on the Management Board and Supervisory Board for 2023 and • elected Aleksander Igličar, MSc to serve a four-year term of office as a shareholder representative on the Supervisory Board, beginning 22 January 2025. No challenges against resolutions adopted by the General Meeting of Shareholders were announced. The resolutions and documentation from previous General Meetings of Shareholders are published on the Company’s website. MANAGEMENT BOARD 2 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. There were no changes to the Company’s Management Board in 2024. 2 ESRS GOV-1_01-03 23 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 Members of the Management Board Name Function Area of work on the Management Board in 2024 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. (until 30 June 2024) Irma Gubanec, MSc Member of the Management Board 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 of the Management Board Network Management, IT and ICT Services, and the subsidiaries GVO, SIOL Zagreb, SIOL Podgorica, SIOL Sarajevo, SIOL Skopje, SIOL DOO Belgrade and SIOL Prishtina. 14 November 2022 13 November 2026 Female Slovenian 1972 Holds a bachelor’s degree in electrical engineering and a master’s degree in communication sciences. 24 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 . Members of the Management Board Name Function Area of work on the Management Board in 2024 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 Špela Fortin Member of Management Board – Workers’ Director Corporate Sustainability, 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 (current term of office) 13 September 2023 (first term of office) 13 September 2027 (current term of office) Female Slovenian 1978 High school graduate. Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 25 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 62 ordinary sessions in 2024. Due to circumstances that could result in conflicts of interest, individual members of the Management Board recused themselves from decision making on four matters within the Management Board’s competences. In 2024, Telekom Slovenije’s Management Board continued to implement the Strategic Business Plan of the Telekom Slovenije Group for the period 2024 to 2028. Telekom Slovenije enhanced its portfolio of ICT and digital services, including cyber security solutions, which contributed to the increased value of services for users. The Management Board gave special attention to the expansion and increased utilisation of the available infrastructure, which led to further growth in Telekom Slovenije’s revenues and market share on both the domestic and foreign markets. Telekom Slovenije continued with the second phase of the modernisation of the mobile network and the upgrade of the fixed network in 2024, leading to an increase in the coverage and capacities of its network. The Company also strengthened cyber resilience through additional measures to protect users and the infrastructure. The Management Board has integrated sustainable development principles into the Company's operations and reduced the Company’s carbon footprint by improving energy efficiency, building its own solar power plants and using cleaner energy sources. It has also actively contributed to the bridging of the digital divide, and to an inclusive and safe society. In the scope of its competences, the Management Board supported a number of activities and measures that contributed to the successful operations of Telekom Slovenije Group companies, including: • investments in the modernisation of the network and the improved portfolio of IPKO, Telecommunications, LLC, which have facilitated an increase in the quality of services and market share on the Kosovo market; • new business opportunities of Avtenta, d.o.o. for the digital transformation of companies and the implementation of pilot and transformation projects within the Telekom Slovenije Group, which led to an improvement in Avtenta, d.o.o.’s operations; and • the construction of GVO, d.o.o.’s open broadband network (OBN), as well as the fibre optic and mobile network in various areas throughout Slovenia, which had a significant impact on the Telekom Slovenije Group’s results as they relate to the telecommunications infrastructure. Through the above-described activities, the Management Board has laid a solid foundation for the future development of the Telekom Slovenije Group as a leading provider of telecommunication and digital services in the region. Earnings of the Management Board 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 correlations 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 Body and the Management Bodies of Telekom Slovenije Group Subsidiaries, which was updated in 2023. Remuneration criteria, which include ESG aspects, are described in detail in section 8.1.2 Management of sustainability at the Telekom Slovenije Group. 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 2024 are presented in a Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 26 separate report on the remuneration of members of Telekom Slovenije, d.d.’s Management Board and Supervisory Board for 2024. They are also stated 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 2024. 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 2024. 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 nine regular and two correspondence sessions in 2024. Composition of the Supervisory Board 3 The Supervisory Board comprised the following members in 2024: Žiga Debeljak, MSc (President) Karla Pinter, MSc (Vice-President), Marko Boštjančič, Mateja Čuk Orel, MSc, Alenka Čok Pangeršič, MSc, Aleksander Igličar, MSc, 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. Data regarding members of the Supervisory Board: 3 ESRS 2 GOV-1_01-03 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 27 Members of the Supervisory Board Name Function First appointment to function Completion of function/ term of office Shareholder/ employee representative Participatio n in Supervisory Board sessions Gender Nationality Year of birth Education/ professional profile Independence per statement of independence Existence of conflicts of interest during the financial year Membership in supervisory bodies of other companies Employment Žiga Debeljak, MSc President 9 September 2022 8 September 2026 Shareholder representative 11/11 Male Slovenian 1971 Holds a bachelor's degree in information technology and a master's degree in business administration and organisation / corporate governance. YES YES – excluded from one matter 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 11/11 Female Slovenian 1982 Holds bachelor’s and master’s degrees in the field of law. YES YES – excluded from one matter Director General of the Internal Market Directorate at the Ministry of the Economy, Tourism and Sport. Marko Boštjančič Member 9 September 2022 8 September 2026 Shareholder representative 11/11 Male Slovenian 1967 Holds a bachelor's degree in law/telecommunic ations. YES YES – excluded from one matter Managing Director of MIBO, Komunikacije, d.o.o., Sarajevo Alenka Čok Pangeršič, MSc Member 9 September 2022 8 September 2026 Shareholder representative 11/11 Female Slovenian 1971 Holds a bachelor’s degree in engineering physics and a master’s degree in management and organisation/asset management. YES NO 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 11/11 Female Slovenian 1980 Holds bachelor’s and master’s degrees in law. YES NO GEN energija, d.o.o., Krško; Lawyer at Odvetniška družba Čuk Orel o.p., d.o.o., Ljubljana Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 28 Members of the Supervisory Board Name Function First appointment to function Completion of function/ term of office Shareholder/ employee representative Participatio n in Supervisory Board sessions Gender Nationality Year of birth Education/ professional profile Independence per statement of independence Existence of conflicts of interest during the financial year Membership in supervisory bodies of other companies Employment Aleksander Igličar, MSc Member 22 September 2021 (first term of office) 22 January 2025 (current term of office) 21 January 2025 21 April 2029 Shareholder representative 11/11 Male Slovenian 1962 Holds a master's degree in economics / accounting. YES NO Iskra Mehanizmi Holding, d.d. Senior lecturer at the University of Ljubljana’s School of Economics and Business. 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 11/11 Male Slovenian 1964 Telecommunicatio ns 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 11/11 Male Slovenian 1964 Telecommunicatio ns engineer/technolo gy. YES NO NO Telekom Slovenije, team leader in the Network and Infrastructure organisational unit, Chair of the Works’ Council Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 29 Members of the Supervisory Board Name Function First appointment to function Completion of function/ term of office Shareholder/ employee representative Participatio n in Supervisory Board sessions Gender Nationality Year of birth Education/ professional profile Independence per statement of independence Existence of conflicts of interest during the financial year Membership in supervisory bodies of other companies Employment Rok Pleteršek Member 2 June 2022 14 November 2025 Employee representative 11/11 Male Slovenian 1990 Holds a master's degree in law / legal affairs and telecommunication s. YES NO NO Telekom Slovenije, Corporate sustainability and business excellence, member of the Works Council Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 30 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. All members of the Supervisory Board submitted statements of compliance with the criteria of independence in accordance with the Corporate Governance Code (the statements are published on the Company’s website). During 2024, three members of the Supervisory Board reported potential facts that could have affected their independence, and recused themselves from voting on the items concerned or refused in advance any material and information related to the topics in question. 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 2024: • discussed and adopted the annual business plan of the Telekom Slovenije Group and Telekom Slovenije for 2025, with projections for the period 2025 to 2029; • discussed and adopted the audited annual report of the Telekom Slovenije Group and Telekom Slovenije for 2023; • regularly discussed the interim reports on the operations of the Telekom Slovenije Group and Telekom Slovenije, and monitored the realisation of business plans; • monitored the implementation of the Telekom Slovenije Group's and Telekom Slovenije's sustainability reporting processes; • monitored activities in connection with the continued development and modernisation of the mobile network; 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 2024: • 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 parent 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 2024 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 2024 are described below: As an advisory body, the Audit Committee assists the Supervisory Board in its supervision of financial reporting, sustainability reporting, internal controls and risk management, and in cooperation with external and internal auditors. The Audit Committee’s key tasks are to ensure professional cooperation in the corporate governance process, where it functions for the good of the Company and protects the interests of its stakeholders. Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 31 In accordance with the law and the relevant Supervisory Board resolution, the Audit Committee of Telekom Slovenije’s Supervisory Board also performed audit committee tasks at the subsidiaries Soline and Avtenta. On 14 June 2024, in accordance with applicable legislation, Telekom Slovenije’s Supervisory Board adopted a decision to discontinue the Audit Committee’s tasks at the subsidiary Soline, as the company no longer met the criteria to be classified as a medium-sized enterprise and thus subject to an audit. On 17 December 2024, in accordance with amended legislation, Telekom Slovenije’s Supervisory Board adopted a decision to discontinue the Audit Committee’s tasks at the subsidiary Avtenta, as the latter ceased to be a public interest entity under applicable legislation. Composition of the Audit Committee in 2024: • 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 is presented in the table detailing the members of the Supervisory Board, while information regarding the external members of the Audit Committee is presented in the table below. Name Committee Gender Nationality Education Year of birth Professional profile Membership in supervisory bodies of other companies Barbara Gorjup, MSc Audit Committee Female Slovenian Holds a master’s of science. 1973 Accounting, auditing, business finance, business valuation. Member of the Supervisory Board of: HSE, d.o.o. and Triglav skladi, d.o.o. Dr Marko Hočevar Audit Committee Male Slovenian Holds a doctorate in economics. 1962 Accounting. Member of the Supervisory Board of: KZPS, d.o.o. and DUJPP, d.o.o. The Audit Committee met at nine ordinary sessions and held three correspondence sessions in 2024. As a rule, all members were present at sessions. Members of the Supervisory Board who are not members of the Audit Committee were briefed on the latter’s work through the periodic report of the chair of the Audit Committee at sessions of the Supervisory Board, and by reviewing the minutes of that committee’s sessions. The Audit Committee was briefed on issues in accordance with the ZGD-1, recommendations for audit committees, priorities in the work of audit committees, the Audit Committee’s rules of procedure, its work plan adopted for 2024 and the resolutions of Telekom Slovenije’s Supervisory Board. Key tasks performed by the Audit Committee in 2024 were as follows: • it monitored and discussed financial reporting regarding the operations of the Telekom Slovenije Group and Telekom Slovenije; • it monitored and discussed the process of implementing the sustainability reporting of the Telekom Slovenije Group and Telekom Slovenije; Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 32 • 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 2023, 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 2023, the work plan of the Internal Audit Service for 2024, changes to the Internal Auditing Rules of the Telekom Slovenije Group, and conducted interviews with the head of the Internal Audit Service in the absence of the Management Board; • 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; • monitored and assessed the quality of the work of the auditor of the financial statements of the Telekom Slovenije Group and Telekom Slovenije for 2023; • with the support of Telekom Slovenije’s specialist departments, carried out the selection process and proposed to Telekom Slovenije’s Supervisory Board the appointment of a candidate as auditor of the Sustainability Report; • in accordance with the resolution of Telekom Slovenije’s Supervisory Board, it also performed the tasks of the audit committee at the subsidiaries Soline (until 14 June 2024) and Avtenta (until 17 December 2024). 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 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 improving the quality of its work, the Audit Committee performed a self-assessment in May 2024, discussed the results of that assessment and drafted a plan of improvements. It briefed the Supervisory Board on the aforementioned self-assessment and proposed improvements. The HR Committee met at seven regular sessions. Significant activities of the HR Committee included: • the drafting of revised employment contracts for the members of Telekom Slovenije’s Management Board; • the updating of the competence profile for members of Telekom Slovenije’s Supervisory Board; • the conducting of nomination procedures for the preparation of a proposal for the appointment of a member to Telekom Slovenije’s Supervisory Board; • the updating and monitoring of the implementation of the Diversity Policy at Telekom Slovenije Group companies; and • the drafting of the Succession Policy for Members of Senior Management and Key Management Positions at Telekom Slovenije Group Companies. Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 33 Composition of the HR Committee in 2024: • Mateja Čuk Orel, MSc (chair) • Marko Boštjančič, • Žiga Debeljak, MSc, • Drago Kijevčanin, and • Karla Pinter, MSc. The Business Development Committee met at three sessions where it discussed the following: • the proposed modernisation of IPKO’s mobile network; • activities relating to cyber security and resilience within the Telekom Slovenije Group; and • the presentation of the product strategy in the area of digitalisation. Composition of the Business Development Committee in 2024: • 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 2024 is presented in the table detailing the members of the Supervisory Board, while information regarding the committee’s external member is presented in the table below. Name Committee Gen der 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 telecommunicat ions. 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 2024. Based on its review of the annual report and financial statements (including the notes thereto), and its review of the Management Board’s proposal on the use of distributable profit and the certified auditor’s report, the Supervisory Board confirmed the audited annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024. 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 2024, together with the auditor’s report for 2024, to the Supervisory Board immediately after Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 34 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 2024 was audited by the audit firm Deloitte revizija, d.o.o., which issued an unmodified opinion regarding the financial statements and a limited assurance on the consolidated sustainability report 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, d.d. for 2024 and found that the annual report was compiled in a timely, clear and transparent manner, and in accordance with the provisions of the Companies Act (ZGD-1), the applicable International Financial Reporting Standards and European Reporting Standards, as adopted by the European Union, and other relevant legislation. The Audit Committee had no comments with respect to the annual report for 2024, and proposed that the Supervisory Board approve the annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 in accordance with Article 282 of the ZGD-1. Based on the auditor’s opinion, the position of the Audit Committee, and data and disclosures in the annual report, Telekom Slovenije’s Supervisory Board assesses that the auditor performed its work independently and professionally in accordance with valid legislation and business practices, that the annual report was compiled, in all material aspects, in accordance with the requirements of the ZGD-1, and that the financial statements fairly present, in all material aspects, the assets and financial position of the Telekom Slovenije Group and Telekom Slovenije as at 31 December 2024, 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 and that the sustainability statement, which forms part of the business section of the annual report, is prepared in accordance with European Sustainability Reporting Standards as adopted by the European Union. 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 2024 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 2024 at its ordinary session held on 16 April 2025. 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 2024, and assessed that they are a reflection of the actual governance of the Company in 2024. 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 accounting report. Management and governance of subsidiaries Telekom Slovenije is the parent company of the Telekom Slovenije Group. It manages the operations of subsidiaries in the scope of corporate governance by defining subsidiaries’ strategic policies and operational objectives, and by monitoring the achievement of established objectives. The Telekom Slovenije Group’s strategy defines uniform corporate governance within the Group, which facilitates the optimisation of the operations of companies, and ensures the improved flow of information and the exploitation of synergies at the Group level. Rules, criteria and mechanisms for managing and supervising Group companies are defined in the Telekom Slovenije Group’s Corporate Governance Rules, in line with Telekom Slovenije’s Corporate Governance Policy. Management and supervisory tasks are performed 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 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 35 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). Composition of the management and supervisory bodies of subsidiaries of the Telekom Slovenije Group as at 31 December 2024 SLOVENIA GVO, d.o.o. Managing Director: Dr Zef Vučaj Supervisory Board: Vesna Prodnik, MSc (President), Peter Anžin and Helena Jakič Infratel, d.o.o. Managing Director: Dr Zef Vučaj Optic-Tel, d.o.o. Managing Director: Matej Kušar Managing Director: Dr Zef Vučaj (until 30 November 2024). Avtenta, d.o.o. Managing Director: Matija Nendl TSmedia, d.o.o. Managing Director: Igor Gajster Soline, d.o.o. Managing Director: Aleksander Valentin Managing Director: Klavdij Godnič (until 30 June 2024) TSinpo, d.o.o. Managing Director: Vesna Lednik OTHER COUNTRIES IPKO Telecommunications LLC, Kosovo CEO: András Páli SIOL, d.o.o. Zagreb, Croatia Managing Director: Simon Furlan, MSc SIOL, d.o.o. Podgorica, Montenegro Managing Director: Simon Furlan, MSc SIOL, d.o.o. Sarajevo, Bosnia and Herzegovina Managing Director: Simon Furlan, MSc SIOL DOOEL Skopje, North Macedonia Managing Director: Simon Furlan, MSc SIOL DOO BELGRADE, Serbia Managing Director: Simon Furlan, MSc SIOL Prishtina LLC, Kosovo Managing Director: Simon Furlan, MSc Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 36 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 risk management, the Group takes into account a system of internal controls, as a process, that is based on the principles of segregation of duties, controls over the execution of transactions, the timeliness of records, the reconciliation of the balances in the books of accounts to the actual situation, the segregation of records from the execution of transactions, and the professionalism and independence of the accounting function. Those principles are employed to manage risks in the financial reporting process. The accounting process is IT-supported. Internal controls are therefore an element of information technology and include, inter alia: controls restricting access to data and applications, controls over access to data and applications, and controls over the accuracy and completeness of the capture and processing of data. Data access rights are regularly reviewed and updated. Also in place, in addition to internal accounting controls, are other internal controls at all levels of operations, both in the processes and organisational units of companies. The Group strives to ensure an appropriate system of internal controls to prevent errors and manage risks, including: • 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; • the adaptation of internal controls to legislation, standards, processes, organisational changes; and findings from the self-assessment 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. The establishment and functioning of key internal controls at the parent company and subsidiaries are reviewed once a year to provide a comprehensive overview of the functioning and adequacy 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 2024. 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 2024 37 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 2024: 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 Members of the Management Board are appointed by the Supervisory Board in accordance with its legal powers and the provisions of the Articles of Association. 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 processes of selecting and determining the appropriateness of candidates in the Criteria and Procedures for Determining the Appropriateness of Candidates for Members of the Management Board, as well as additional conditions that candidates must meet. In February 2024, the Supervisory Board adopted the Competence Profile of the Members of Telekom Slovenije, d.d.’s Supervisory Board, which is also available at https://www.telekom.si/en/about- us/company/corporate-governance. 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 manner in which the Company communicates is 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. As a company with shares listed on the Ljubljana Stock Exchange, Telekom Slovenije is committed to high standards of information. It continued to provide high-quality, timely, relevant and credible information to investors and other stakeholders in 2024. In order to ensure that the operations of Telekom Slovenije Group companies and the conduct of their employees is in line 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. Preventive measures to prevent irregularities, and swift and effective action in the event of identified breaches play an important role in this respect. For more information, see section 8.4.1 Compliance and integrity. Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 38 6 SHARE TRADING AND OWNERSHIP STRUCTURE General information regarding Telekom Slovenije shares as at 31 December 2024 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 8,071 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. They are included in the SBITOP and SBITOP TR share indices, and accounted for 4.28% of those two indices according to the quarterly review of computational parameters conducted on 19 December 2024. 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 76.50 on the last trading day of 2024, representing year-on- year growth of 26.45%, while the SBITOP index was up by 32.97% during the same period. The market capitalisation of Telekom Slovenije was EUR 499.96 million at the end of 2024. Turnover in the Company’s shares (excluding block trades) in year 2024 totalled EUR 14.02 million, representing 3.15% of total turnover on the Ljubljana Stock Exchange. Trading statistics for TLSG shares Standard price in EUR 2024 2023 Index Highest daily price 77.50 61.00 127 Lowest daily price 60.50 47.00 129 Average daily price 71.01 52.10 136 Turnover (excluding block trades) in EUR thousand 2024 2023 Index Total volume for the year 14,017.47 12,367.35 113 Highest daily volume 367.63 485.54 76 Lowest daily volume 0.00 0.00 - Average daily volume 56.75 50.07 113 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 39 Change in the share price and turnover in TLSG shares in 2024 Source: Ljubljana Stock Exchange, 31 December 2024 Movement in the TLSG share price compared to the SBITOP in 2024 (index: 31 December 2023 = 100) Sources: Ljubljana Stock Exchange, 31 December 2024 0 200 400 45 50 55 60 65 70 75 80 in EUR thousand EUR Turnover, excluding block trades (right axis) TLSG share price (left axis) 95 100 105 110 115 120 125 130 135 140 Index TLSG SBITOP TLSG SBITOP +33,0 % +26,4% Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 40 Key financial data relating to TLSG shares 31 December 2024 / 31 December 2023 / Index I – XII 2024 I – XII 2023 Closing price of one share on the last trading day of the period in EUR 76.50 60.50 126 Capital return per share during the period in % 1 26.45 28.18 94 Telekom Slovenije Book value of one share in EUR 2 107.10 96.43 111 P/BV 0.71 0.63 114 Net earnings per share in EUR 3 17.06 3.67 465 Adjusted net earnings per share in EUR 4 4.30 3.67 117 Telekom Slovenije Group Book value of one share in EUR 5 102.97 100.78 102 P/BV 0.74 0.60 124 Net earnings per share in EUR6 6 8.49 7.24 117 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 profit for the accounting period to the average number of issued ordinary shares of Telekom Slovenije, excluding treasury shares. 4 Adjusted earnings per share is calculated as the ratio of Telekom Slovenije's adjusted net profit for the period to the average number of issued ordinary shares excluding treasury shares. Net profit is adjusted for the reversal of a portion of the impairment of the investment in IPKO. 5 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. 6 Net earnings per share is calculated as the ratio of the Telekom Slovenije Group’s net 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 2024 Telekom Slovenije had 8,071 shareholders at the end of 2024, a decrease of 191 relative to the previous year. At 0.82 percentage points, domestic financial corporates and funds recorded the most significant decrease in ownership stake during the year. Domestic and foreign individual shareholders reduced their ownership stake by 0.38 percentage points. Foreign legal entities increased their ownership stake by 1.20 percentage points. Ownership structure * Individual shareholders include individuals who pursue gainful activities on the market. Source: KDD, 31 December 2024 Republic of Slovenia 62.54% Domestic and foreign individuals 14.41% Foreign legal entities 7.48% Kapitalska družba d.d. (pension fund manager; KAD) 5.59% Slovenian Sovereign Holding , d.d. 4.25% Domestic financial companies and funds 2.96% Domestic companies 2.21% Treasury shares 0.56% Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 41 Ten largest shareholders The concentration of ownership, as measured by the ownership stake held by the ten largest shareholders, stood at 80.53% at the end of 2024, an increase of 0.96 percentage points in year-on- year terms. Sources: KDD, 31 December 2024 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 2024. Name Function Number of shares % of equity Management Board Boštjan Škufca Zaveršek Vice-President of the Management Board 380 0.00581 Vesna Prodnik Member of the Management Board 400 0.00612 Supervisory Board Aleksander Igličar Member of the Supervisory Board 150 0.00230 Drago Kijevčanin Vice-President of the Supervisory Board 212 0.00324 Dušan Pišek Member of the Supervisory Board 36 0.00055 Total Management Board and Supervisory Board 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 4 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 email ([email protected] and [email protected]). Shareholders may send proposals and suggestions via the investor relations email ([email protected]). 4 GRI 2-29 62.54% 5.59% 4.25% 3.66% 1.30% 1.22% 0.60% 0.56% 0.42% 0.38% 0%10%20%30%40%50%60%70% Republic of Slovenia Kapitalska družba, d.d. Slovenian Sovereign Holding, d. d. (SDH) Erste Group Bank AG - fiduciary account Citibank N.A. - fiduciary account Perspektiva FT, d.o.o. Intercapital securities Ltd. - fiduciary account Telekom Slovenije, d.d. Privredna banka Zagreb d.d. - fiduciary account Lisca d.o.o. 31.12.2024 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 -… Perspektiva FT, d.o.o. Raiffeisen Bank International AG (RBI) - fiduciary… Guarantee Fund of the First Pension Fund Telekom Slovenije, d.d. NLB Funds – Multi - Asset Slovenia 31.12.2023 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 42 In addition to regular communication, we carried out the following activities in 2024: • we sent the TLSG newsletter to registered domestic and foreign recipients quarterly following the publication of operating results. The TLSG newsletter included a selection of the most important news for a specific period, supported by actual data regarding operations and the sales portfolio; • we attended five events for investors organised by the Ljubljana Stock Exchange, where we presented the Company’s operations and key new features; and • we organised two General Meetings 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 28 press releases were issued in 2024, 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 place. Dividend policy The strategy laid out in 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 37th General Meeting of Shareholders held on 7 February 2024, shareholders adopted a resolution to allocate EUR 40,291,580.40 of distributable profit from 2022 for the payment of dividends, which, excluding treasury shares, amounted to gross dividends of EUR 6.20 per share. Dividends were paid in two instalments: the first instalment of EUR 3.10 gross per share was paid on 22 March 2024, while the second instalment of EUR 3.10 gross per share was paid on 23 August 2024. At the 38th General Meeting of Shareholders held on 17 June 2024, shareholders adopted a resolution to allocate from distributable profit for 2023 the amount of EUR 23,863,902.71, representing net profit for 2023, to other profit reserves. The balance of distributable profit, which derives from profit brought forward from previous years, is to remain undistributed as retained earnings and will be used in future financial years based on decisions taken at that time. Treasury shares Telekom Slovenije did not purchase treasury shares in 2024. The Company held 36,836 treasury shares on the final day of 2024, representing 0.56% of all issued shares. Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 43 7 OPERATIONS OF THE TELEKOM SLOVENIJE GROUP IN 2024 7.1 Business environment and trends in the sector 7.1.1 Impact of the macroeconomic environment on operations Slovenia In their most recent forecasts for the euro area, international institutions are forecasting only slightly higher GDP growth in 2025 than in 2024, followed by a gradual strengthening in growth. Economic growth of 0.8% is forecast for the euro area in 2025, followed by growth of 1.1% in 2026 and 1.2% in 2027. Amongst major trading partners, economic recovery is expected to be slowest in Germany, where growth in 2026 and 2027 is expected to rise to 0.8% following a period of stagnation. Economic growth in Slovenia will strengthen to 2.1% in 2025. Slightly higher growth in GDP is expected in the two years that follow (2.4% in 2026 and 2.3% in 2027). With a gradual recovery in foreign demand, growth in exports of goods and services is expected to continue, but will be lower than in the period prior to the pandemic and energy crisis. Domestic consumption will remain a key factor in GDP growth. Household consumption will grow at a rate similar to 2025, and will drive continued growth in retail sales, accommodation and food services, and culture, entertainment, personal and sports services. Growth in investments will strengthen further. Inflation is expected to stand at 2.7% at the end of 2025, and will average 2.3% over the entire year. Risks associated with the realisation of forecasts are linked primarily to conditions in the international environment and to a lesser extent to conditions in the domestic environment. Risks are largely negative and more significant than in the autumn of 2024: • A sharp increase in uncertainty in connection with the potential escalation of protectionist measures adopted by the US and retaliatory measures adopted by affected countries. • Geopolitical uncertainty in connection with the development of events in the Middle East and Ukraine. • The addressing of structural challenges at a time when the European economy has been struggling for some time due to a diminishing competitiveness, climate change and political uncertainty. • Risks in the domestic environment are linked primarily to the capacity to implement large-scale investment projects, and to the impact of rising labour costs on competitiveness. • Opportunities for higher economic growth derive from the even more successful attraction of labour, and from the positive effects of the comprehensive drawdown of EU funds in conjunction with reform measures. Key macroeconomic indicators in Slovenia Sources: SURS, Bank of Slovenia, ECB and UMAR calculations and forecasts (Autumn Forecast of Economic Trends, February 2025) Kosovo Kosovo’s economy continues to perform well, supported by strong private consumption and higher public investment. The International Monetary Fund (IMF) projects GDP growth to reach 3.8% in 2024 and 4% the following year. Headline inflation has fallen sharply and stood at 0.4% year-on-year in October 2024, as the result of slowing growth in food and transportation prices. The banking sector remains healthy – profitable and well capitalised, with low levels of non-performing loans. 2.7 2.1 1.6 2.1 2.4 2.3 2022 2023 2024 2025 2026 2027 GDP, real growth in % 5.3 0.1 1.6 2.2 2.3 2.4 -0.7 2.4 8.5 2.7 4.1 2.2 2022 2023 2024 2025 2026 2027 Private consumption (real growth %) State consumption (real growth %) Real growth in % Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 44 Gross domestic product in Kosovo Sources: International Monetary Fund, World Economic Outlook Database, October 2024 Telecommunications market, trends and opportunities Main characteristics of the Slovenian market: high level of competition, growth in fibre optic access, 4G/5G, FWA, high speed and price competition. Services with the highest expected revenue growth Mobile IoT services, ICT services and mobile value-added services (content and other services) are followed by mobile data and fixed broadband access services. Key development areas 5G, fibre optics, gigabit speeds, digitalisation, personalisation, AI (artificial intelligence), IoT, smart services (cities and buildings), cloud services (SaaS, IaaS, etc.), cyber security, co-location, unified communications, OTT video services, quantum communications and energy efficiency. 10.7 4.3 3.3 3.8 4.0 4.0 2021 2022 2023 2024 2025 2026 BDP real growth in % Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 45 7.1.2 Comparison of the Slovenian telecommunications sector with the EU Source: European Commission, 2024 Digital Decade Country Report for Slovenia (data from 2023) Two main strengths or areas for progress: • Digital public services and eHealth: Slovenia has made notable progress in the area of eGovernment, including the implementation of a national e-identification scheme and the achievement of high general eHealth maturity (access to eHealth records scored 87.6 out of 100). • Infrastructure for connectivity: Slovenia enjoys a good starting point in terms of coverage by fibre optics, with 78.5% of households covered compared to the EU average of 64%. Slovenia must improve its performance in the achievement of Digital Decade objectives in order to promote competitiveness, resilience, sovereignty, European values and climate measures. Fixed broadband access market There were 722,625 broadband connections in Slovenia in the fourth quarter of 2024, an increase of 7.2% relative to the previous year, with 86.0% being private connections. The household fixed broadband access penetration rate reached 88.2% during the same period, a decrease of 5.4 percentage points in year-on-year terms. 47% 89% 3.8% 17.1% 79% 82% 66% 9.5% 78.5% 89.2% 56% 90% 4.8% 19.4% 79% 89% 66% 18.5% 64.0% 89.9% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% People with at least basic digital skills Internet use (% of individuals) Percentage of information and communication technology (ICT) experts Percentage of female ICT experts Very high capacity network (VHCN) coverage 5G coverage Penetration of fixed broadband connections with a speed of at least 100 Mb/s (% of households) Penetration of connections with a speed of at least 1 Gb/s (% of households) Fibre to the premises (FTTP) coverage (% of households) Penetration of mobile broadband connections (% of individuals) Digital skills Digital infrastructure EU Slovenia Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 46 Change in fixed broadband connections in Slovenia in the period 2019 to 2024 Source: AKOS, SURS (third quarter of 2024). The proportion of fibre-to-the-home (FTTH) connections is increasing, with 405,597 such connections at the end of the third quarter, an increase of 8.3% relative to the previous year. FTTH connections account for 56.1% of all fixed broadband connections. The number of connections with internet speeds of at least 100 Mbit/s is also increasing, while the proportion of connections with lower speeds is decreasing. 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 2024, AKOS Pay TV market Forecast growth in pay-TV subscribers is low in the period until 2029. The analysts of Analysys Mason also assess that IPTV will contribute most to growth. The Slovenian pay-TV market is stable: the number of subscribers is expected to continue to grow, while the number of cable TV subscribers will decline. Pay TV accounts for 78,8% of all TV connections in Slovenia and continues to grow. Cable TV accounts for 34.3% and the number of ADSL; 4.2% VDSL; 8.4% DOCSIS 2.0; 0.3% DOCSIS 3.0; 22.4% FTTH; 57.0% Other technologies; 7.7% ADSL VDSL DOCSIS 2.0 DOCSIS 3.0 FTTH Other technologies Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 47 connections is declining, IP TV connections are the biggest and growing category, accounting for 62.2% of the total (fourth quarter of 2024, source: AKOS). Telekom Slovenije maintains the highest share of the IPTV market. That share rose to 43.4% in the fourth quarter (source: AKOS). Despite the relatively low interest in payable video streaming services in Slovenia, a slight increase in the number of subscribers is expected. Operators play an important role as a sales channel on small markets. Market shares of TV connections by technology Source: Report on the development of the electronic communications market for the fourth quarter of 2024, AKOS Fixed telephony market According to Analysys Mason, the fixed telephony market is continuing to decline. At the end of the third quarter of 2024 there were 563,823 IP telephony connections or 92.4% of all fixed telephony connections. The number of IP telephony connections has been declining for the last three years. At 44.6% in the fourth quarter of 2024, Telekom Slovenije maintains the highest market share in the voice traffic segment generated by IP telephony users. Mobile services market European operators are gradually replacing 2G and 3G networks with the more technologically advanced 5G technology. Telekom Slovenije stopped using 3G mobile technology in 2022. According to Analysys Mason, 89% of mobile connections in western Europe will use 5G by 2029. Data traffic will continue to grow, driven directly by the increasing use of unlimited data and the expansion of 5G network coverage. Mobile connections with regard to type of subscription and proportion of 5G connections, Western Europe (million users), 2019‒2029 Cable television; 34,3% IPTV; 62,2% Satellite television; 3,3% MMDS; 0,3% Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 48 Source: Analysys Mason – Western Europe telecoms market: trends and forecasts 2024–2029; January 2025, based on data up to Q2 2024. The number of mobile network users in Slovenia (active SIM and eSIM cards) increased by 1.6% over a one-year period to stand at 2,773,689 at the end of the third quarter of 2024 (source: SURS). The number of residential users increased by 1.0%, while the number of business users was up by 3.2% in one year. The household mobile broadband access penetration rate was 101.6% in the fourth quarter of 2024 and the positive trend continues. The household penetration rate of active mobile telephony users increased, to reach 130.2% (source: AKOS). 4G users still have the highest proportion of all mobile users (54.1% in the fourth quarter of 2024), but this is declining and the proportion of 5G users is increasing (40.2% over the same period). 180 170 170 169 166 162 158 154 151 148 145 347 358 367 377 385 393 397 401 403 405 406 89% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0 100 200 300 400 500 600 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Prepaid Contract 5G share of connections Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 49 Telekom Slovenije enjoys the highest share of the mobile telephony market (35.8%, fourth quarter of 2024; source: AKOS), which is higher than the previous year. Shares of the mobile telephony market in Slovenia Source: Report on the development of the electronic communications market for the forth quarter of 2024, AKOS For more information regarding the Telekom Slovenije Group’s position on the Slovenian market, see Section 7.7 Marketing and Sales. 7.1.3 Telecommunications sector in Kosovo Key trends in the telecommunications sector in Kosovo: 1. Mobile segment: the market is predominantly pre-paid, with a further shift from voice to data services, and a growing trend towards the use of smartphones and the mobile internet. 2. Fixed segment: the market continues to be dominated by bundled services, with an increasing focus on premium content and the growing use of the IPKO TV OTT application, which has expanded the brand’s digital footprint and enriched the portfolio of services. 3. Technology: with the successful introduction of 5G technology and e-SIM, IPKO remains the technology leader in Kosovo. IPKO continues to maintain its position as one of the strongest and most recognised brands on the Kosovo telecommunications market. Mobile telephony penetration in Kosovo reached 118% in the third quarter of 2024. The use of smartphones and the mobile internet has grown sharply, with mobile internet use increasing from 87% to 94% relative to the previous year. Two major operators, Vala and IPKO, operate on the mobile market, with IPKO capturing 52.9% of mobile telephony users and 58.4% of revenues (third quarter of 2024). Vala continues to lose market share, despite showing improvement in customer loyalty and satisfaction. The third operator, MTS (a subsidiary of Telekom Srbija), has only a limited presence on the market. IPKO remains the only operator in Kosovo to have fully implemented the +383 country code and successfully launched its 5G network in 2023. 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2019 2020 2021 2022 2023 2024 Hot Mobil 2.8 3.1 3.4 3.6 3.7 3.7 4.0 4.2 4.3 4.4 4.7 4.8 4.9 5.1 5.2 5.2 5.2 5.4 5.5 5.5 5.5 5.6 5.6 5.5 Mega M 0.2 0.2 0.2 0.2 0.2 0.2 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.4 0.4 0.4 0.4 0.5 0.5 0.5 0.5 0.5 Telemach 21.5 21.5 22.0 22.3 22.7 23.0 23.5 23.6 23.8 23.9 24.1 24.2 24.8 25.0 25.1 25.1 25.3 25.4 25.7 25.7 25.8 26.9 26.6 26.5 T-2 5.4 5.5 5.6 5.8 5.9 6.0 6.1 6.3 6.4 6.5 6.5 6.6 6.8 6.8 6.9 7.0 7.1 7.1 7.2 7.3 7.3 7.3 6.9 6.8 A1 Slovenija 28.3 28.1 28.1 28.1 27.9 27.9 27.7 27.7 27.6 27.5 27.4 27.3 26.7 26.6 26.6 26.6 26.6 26.3 26.0 25.8 25.6 24.3 24.7 24.8 Telekom Slovenije 41.9 41.3 40.7 39.9 39.5 39.1 38.5 37.9 37.6 37.2 36.8 36.7 36.4 36.0 35.7 35.5 35.3 35.3 35.1 35.2 35.4 35.4 35.7 35.8 0 10 20 30 40 50 60 70 80 90 100 % Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 50 Market shares of operators in the mobile telephony segment in Kosovo Source: RAEPC report, Q3 2024 The fixed market is highly competitive, with IPKO sharing second place in terms of brand strength index (BSI of 40) with Telkos, while Art Motion is the leader with a BSI of 45. Art Motion has made significant gains due to its strong position in sports and entertainment content, in particular the football league, and its aggressive promotion of packages. Despite competition, IPKO has managed to maintain a stable fixed user base with a positive trend in subscribers and upgrades to premium packages. IPKO also expanded its IPKO TV application, and thus increased its market recognition from 24% in 2023 to 52% in 2024. Market shares of operators in the internet access segment in Kosovo Source: RAEPC report, Q3 2024 IPKO; 27.5% KUJTESA; 15.9% Artmotion; 28.0% Telecom Kosovo; 5.3% Others; 23.3% Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 51 7.2 Risk management Effective risk management is crucial to achieving our strategic objectives and mission, and an important factor in decision-making. A comprehensive and robust risk management framework provides us stability and resilience to challenges in a dynamic business environment. We regularly brief our stakeholders on the material risks. Risk management framework The risk management framework is based on COSO ERM practices and the ISO 31000 standard. The Telekom Slovenije Group handles risks according to the principles set out in the Telekom Slovenije Group Risk Management Policy. We define risk as the possible occurrence of external or internal events (or a series of events) that may adversely affect the achievement of our business or financial objectives, and opportunities as potential events that may have a positive impact on the achievement of our objectives. ESG risks are included in the risk catalogue, where environmental, social and governance aspects have been defined. Risk analyses and assessments represent the basis for monitoring our exposure. Identified risks and opportunities are analysed and assessed in terms of their likelihood, financial impact and timing. • Probability is assessed on a four-point scale, from unlikely to almost certain. • Financial impacts on operations are assessed on a four-point scale, ranging from low-impact to high-impact events. • The timing of the impacts of risks and opportunities are determined according to a three-point scale. Short-term impacts are defined for a period of one year, medium-term impacts for up to five years, and long-term impacts for a period of more than five years. Risk owners are responsible for implementing risk management strategies. We report risks to stakeholders on a quarterly basis. To manage risks more effectively at all levels of the business, we classify risks into categories: • strategic risks, • financial risks, • regulatory and compliance-related risks, and • operational risks. We also place a great emphasis on the management of key internal controls. In the scope of this system, we annually review the establishment of key internal controls across all business processes. We assess existing internal controls in terms of their functioning in accordance with the methodology on the self- assessment of internal controls. For areas where internal controls are not in place or are not functioning properly, new internal controls or appropriate compensating controls are established. They replace missing controls until they are fully in place or functioning better. This ensures transparency in the identification of deficiencies in processes and more effective risk management. We are building a culture where all employees understand their role in identifying, assessing and managing risk. We are aware that risk management is a dynamic process. We are therefore strengthening our risk management culture by adapting to change and with the aim of continuous improvement. We regularly analyse past experiences and continuously monitor changes in the business environment. We are adapting our approaches to ensure the long-term resilience and success of the Telekom Slovenije Group. Risk management at the Company and within the Telekom Slovenije Group is reviewed by the Internal Audit Service and reported to the Management Board in accordance with professional guidelines. The Management Board is regularly informed of the Telekom Slovenije Group’s risk assessment and of the findings of the audits of the various assurance providers. It responds to assessments and findings appropriately through a range of measures to manage risks and ensure compliance. The Management Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 52 Board reports regularly to the Supervisory Board and the latter’s committees with regard to material risks, findings and the adopted measures. Highlights and progress of risk management in 2024 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 53 RISK MANAGEMENT WITHIN THE TELEKOM SLOVENIJE GROUP In 2024, we focused on managing risks that could jeopardise the Telekom Slovenije Group’s long-term competitiveness and performance. We have implemented the appropriate measures and responded as required to these risks. Strategic risks Strategic risks are linked to the Telekom Slovenije Group’s long-term business objectives and can have a significant impact on our competitive advantages. They include risks related to technological changes, competition and new market entrants, macroeconomic factors, regulatory requirements, the impacts of society and the environment on operations, and changing customer needs and expectations. Our strategic risk management strategy is based on the monitoring of technological trends and investments in the latest technologies to consolidate our position as a technologically advanced operator. These risks are also managed by adapting business models, finding new sources of revenue on ICT markets and operating in a sustainable and socially responsible manner. All this allows us to adapt more quickly to market and other changes. In order to remain competitive and satisfy the growing needs of our customers, we actively invest in the development of new services and the digitalisation of our operations. We are digitalising the user experience by standardising communication channels and simplifying the IT architecture. We also promote the responsible use of artificial intelligence. By actively monitoring our competitors, adapting our pricing and business strategies and continuously improving our services, we are increasing market shares and creating added value for our users. Our strategy focuses on adapting to customer needs by offering innovative services, enriching programme content and by offering flexible packages to respond to dynamic market demands. We provide a high- quality and wide range of competitive services for the widest range of users. We implement programmes to retain users and encourage subscribers to switch to better packages. We offer advanced mobile payment options. We pursue ambitious objectives in the sale of cyber security, IT support, eCare and digital infrastructure services (smart cities, energy, mobility, Industry 4.0 and mobile private networks), and comprehensive ICT solutions tailored to the needs of business users. We are carrying out intensive activities in the area of eCare for the smooth transition to an insurance system for long-term care in line with the entry into force of the Long-Term Care Act. Regulatory and compliance-related risks The telecommunications market is subject to strict regulatory requirements that affect our operations. Risks in this area relate to changes in legislation, decisions, sectoral regulations and the requirements of the competent authorities. We work closely with the relevant authorities to manage regulatory risks, and regularly monitor all regulatory changes. Those changes are introduced into our business practices in a timely manner. The risks inherent in any tightening or expansion of Telekom Slovenije’s regulatory obligations on the fixed and mobile electronic communications market 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 the analysis of relevant markets and strictly comply with regulatory decisions to ensure compliance. The decision designating Telekom Slovenije as a universal service provider in the territory of the Republic of Slovenia expired at the beginning of December 2024. AKOS issued a decision on 12 December 2024 designating Telekom Slovenije as a universal service provider for the next period, from 13 December 2024 to 1 July 2026. We process extensive collections of personal data relating to users, business partners, employees and other stakeholders. For this reason, we pay a great deal of attention to safe and compliant data processing in both existing and new services. To that end, we take into account regulations governing general data protection and the requirements of specific sectoral regulations. The increasing use of artificial intelligence also brings new challenges and risks related to data protection and personal data breaches, as well as additional security threats. For the purpose of managing these risks, we adopted the Strategy for the Implementation and Management of Artificial Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 54 Intelligence in the Telekom Slovenije Group’s Business Processes, which also sets out the procedures for managing artificial intelligence solutions. We also train employees on the safe use of artificial intelligence. In addition to providing payment and e-money services, we also provide services to users who are financial entities and fall within the scope of Regulation (EU) 2022/2554 on digital operational resilience for the financial sector. In accordance with the requirements of the aforementioned regulation, which entered into force on 17 January 2025, and associated implementing acts, we modernised our procedures and processes to ensure digital operational resilience. Financial risks Financial risks derive from unforeseen changes in the financial environment that may have a material impact on the Telekom Slovenije Group’s 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 Telekom Slovenije Group, and through short-term credit lines that are regularly rolled over with respect to needs. Appropriate 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 mitigated by means of credit protection and the regular monitoring of the adequacy thereof. 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 is 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 Operational risks arise in day-to-day business processes related to network capacity, the quality of services, the internal organisation and the reliability of suppliers and partners. These include network failures, technology faults, anomalies in business process, a lack of training and errors by employees, and a lack of customer support capacity. Networks and the infrastructure are the foundation of our operations. The complexity of systems is constantly increasing due to the rapid development of new technologies and services, new security threats, rising user expectations and a broadening scope of regulatory requirements. We continuously upgrade and technologically renew the fixed and mobile network and systems. We upgrade equipment capacity and the number of licences in line with growth in traffic. We are accelerating the modernisation of the radio access network (RAN), in accordance with the radio frequency allocation decision, and core network. Business continuity is ensured through a Business Continuity Management System (BCMS) that we develop, update and assess. We upgrade topology, infrastructure capacities and ICT services as needed. In the context of a rise in cyber threats, protecting the infrastructure, data and business processes is crucial. We continuously invest in an advanced cyber security infrastructure to increase resilience. We constantly update our networks and systems and adapt them to new threats with the aim of preventing abuse. We consistently carry out security testing. We share knowledge and information with European telecommunication operators and international response teams in order to resolve cyber security incidents. Our Cyber Security and Resilience Centre proactively identifies and removes threats. This ensures resilience, security, operational reliability and data protection. We are building advanced user authentication and authorisation technology into the internal business network, and introducing at an accelerated rate modern network technology (Software Defined Access or SDA), which also includes the zero trust principle of cyber security. Managing procurement risks is key to smooth operations and cost optimisation. Risks are mitigated by searching for alternative suppliers and implementing a strategy of two or more suppliers, primarily for the securing of critical goods and services. We have established partnerships with suppliers. They are regularly monitored and evaluated. We also regularly verify the availability of goods and the timeliness Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 55 of deliveries. Orders are forecast and goods are ordered in advance to ensure sufficient stocks. We also face the risk of retaining key employees. We manage that risk 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 cooperation and internal mobility, and by implementing other activities to motivate and retain key knowledge. We work with various educational institutions to recruit new, highly-qualified staff, and carry out a number of employer branding activities. We also offer company scholarships. We identify the transition and physical risks associated with climate change. We manage transition risks primarily through efforts to increase energy efficiency and reduce greenhouse gas emissions. The digital and green transition is an element of the Telekom Slovenije Group’s strategy, which is based on the superior quality of the network, the most-advanced ICT services and solutions, and the use of clean energy sources. We thus help to mitigate climate change and adapt our operations to environmental impacts. By improving energy efficiency, we also save on energy costs. To make the network more resilient to the effects of climate change, we implement preventive measures to prevent or mitigate potential damage. Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 56 7.3 Performance of the Telekom Slovenije Group Analysis of the consolidated income statement The Telekom Slovenije Group achieved the following results in 2024 relative to 2023: • The Telekom Slovenije Group had a total of 1,991,337 retail mobile users as at 31 December 2024, an increase of 4% or 82,766 users relative to the end of 2023. The Group had 316,176 fixed retail broadband and TV connections as at 31 December 2024, an increase of 4% or 12,120 relative to 31 December 2023. Telekom Slovenije increased the number of fixed retail broadband and TV connections by 12,346 and the number of retail mobile telephony users by 37,866. IPKO in Kosovo increased the number of retail mobile telephony users by 44,900. • Sales revenue reached EUR 712.4 million, an increase of 3% relative to 2023. The Group recorded an increase in revenues on account of growth in the number of users and higher sales of IT merchandise and services, while revenues from financial, eHealth and insurance services were also higher. • Operating expenses amounted to EUR 647.2 million, which was comparable with the operating expenses recorded in 2023. • Earnings before interest, taxes, depreciation and amortisation (EBITDA) totalled EUR 240.3 million at the Telekom Slovenije Group level, an increase of 5% or EUR 11.7 million relative to 2023. The EBITDA margin (i.e. EBITDA as a proportion of sales revenue) was 33.7% at the Group level. • Earnings before interest and taxes (EBIT) amounted to EUR 72.8 million at the Telekom Slovenije Group level, an increase of 14% relative to the previous year. • Following the calculation of income tax (including deferred taxes), the Telekom Slovenije Group generated a net profit of EUR 55.2 million, an increase of 17% (or EUR 8.1 million) relative to 2023. Reversal of a portion of impairments of Telekom Slovenije’s investment in IPKO: In accordance with International Accounting Standard 36 – Impairment of Assets (IAS 36), Telekom Slovenije impaired its investment in the subsidiary IPKO in the total amount of EUR 109,295 thousand in 2010 and 2012 due to a reduction in the fair value of that investment. At the end of 2024, the Company commissioned an appraisal of the fair value of its investment in the subsidiary IPKO. That appraisal was performed by an independent business appraiser, and was based on the income approach to valuation using the discounted cash flow method. A higher fair value of the investment was identified in the new appraisal. The Company reversed a portion of impairments in the amount of EUR 82,934 thousand at the end of 2024. The reversal of impairments was recorded as an increase in the value of the Company’s investment in the aforementioned subsidiary, which resulted in an increase in assets in the statement of financial position and an increase in finance income from the reversal of impairments, which in turn had a positive effect on Telekom Slovenije’s net profit. The reversal of the impairment has no impact on the corporate income tax of Telekom Slovenije or on the financial statements of the Telekom Slovenije Group. Analysis of the consolidated balance sheet Total assets amounted to EUR 1,338.5 million as at 31 December 2024, an increase of 1.6% or EUR 20.7 million relative to 31 December 2023. Non-current assets amounted to EUR 1,098.1 million, an increase of EUR 54.1 million or 5.2% relative to 31 December 2023. There were increases in property, plant and equipment (EUR 29.8 million), intangible assets (EUR 11.8 million) and right-of-use assets (EUR 7.3 million). The proportion of the Group’s total assets accounted for by non-current assets rose to 82.0% (2023: 79.2%). Current assets amounted to EUR 240.4 million, a decrease of 12.2% or EUR 33.5 million. There was a decrease of EUR 36.6 million in cash and cash equivalents, and an increase of EUR 3.9 million in trade receivables and other receivables. Equity totalled EUR 673.0 million, an increase of 2.2% or EUR 14.3 million relative to the end of 2023, and accounted for 50.3% of total assets (2023: 50.0%). Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 57 Non-current liabilities amounted to EUR 450.9 million, and accounted for 33.7% of total assets. They were up EUR by 2.1 million relative to the end of 2023. Non-current liabilities as at 31 December 2024 were up by 0.5% relative to the end of 2023. Current liabilities amounted to EUR 214.7 million, an increase of EUR 4.3 million relative to the end of 2023. At 16.0%, current liabilities as a proportion of total liabilities were at the level recorded in 2023. Net financial debt amounted to EUR 372.9 million as at 31 December 2024, an increase of 4.8% relative to 31 December 2023. Analysis of the consolidated statement of cash flows The Group recorded investments in fixed assets in the amount of EUR 198.6 million in outflows for investing activities. The Group’s inflows from investing activities in 2024 primarily comprised interest income in the amount of EUR 1.1 million, proceeds from the sale of assets in the amount of EUR 0.7 million, inflows from dividends in the amount of EUR 0.1 million and proceeds from repaid loans and deposits in the amount of EUR 0.1 million. The Group’s outflows from financing activities included the payment of dividends in the amount of EUR 40.3 million, repayments of the current portion of long-term loans in the amount of EUR 30.2 million, and interest paid on loans raised and right-of-use assets in the total amount of EUR 16.7 million. Under IFRS 16, lease liabilities (excluding interest) in the amount of EUR 10.0 million were recognised under outflows from financing activities. The Group recorded the refinancing of the long-term loan in the amount of EUR 15.4 million in December 2024. Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 58 Key performance indicators of the Telekom Slovenije Group and company Telekom Slovenije in accordance with the financial report Telekom Slovenije Group Telekom Slovenije in EUR thousand and % I–XII 2024/ 31 December 2024 I–XII 2023/ 31 December 2023 Index 24/23 I–XII 2024/ 31 December 2024 I–XII 2023/ 31 December 2023 Index 24/23 Sales revenue 712,442 694,913 103 614.218 601,669 102 EBITDA 240,316 228,569 105 177,595 174,421 102 EBITDA margin = EBITDA / sales revenue 33.7% 32.9% 103 28.9% 29.0% 100 EBIT 72,843 64,138 114 37,042 36,552 101 Return on sales = EBIT / sales revenue (EBIT margin) 10.2% 9.2% 111 6.0% 6.1% 99 Net profit 55,188 47,065 117 110,850 23,864 465 Adjusted net profit 27,916 23,864 117 Assets 1,338,533 1,317,866 102 1,300,543 1,250,315 104 Adjusted assets 1,217,609 1,250,315 97 Equity 672,947 658,638 102 699,948 630,189 111 Adjusted equity 617,014 630,189 98 Return on equity (ROE) 8.3% 7.4% 112 16.7% 3.9% 427 Adjusted ROE 4.5% 3.9% 115 Net financial debt 372,912 355,737 105 384,098 356,577 108 Net financial debt / EBITDA 1.6 1.6 100 2.2 2.0 106 Investments (CAPEX) 218,992 188,037 116 160,823 158,930 101 Investments as a proportion of sales revenues 30.7% 27.1% 114 26.2% 26.4% 99 Number of employees as at the last day of the period 3,200 3,253 98 2,049 2,083 98 * Adjusted for the reversal of a portion of impairments of the investment in IPKO. The definition of items and indicators 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. Detailed information can be found in the financial report in point 6. Segment reporting. Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 59 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 2025. 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 2024. A portion of the Group’s financial liabilities is accounted for by two syndicated loans in the total amount of EUR 196.9 million, a separate long-term loan in the amount of EUR 15.4 million and a loan from the European Investment Bank in the amount of EUR 94.7 million. Other financial liabilities are comprised almost entirely of finance leases and non-current liabilities from an interest rate swap. Loans received as at 31 December 2024 carry fixed (i.e. hedged) and variable interest rates. Fixed or hedged interest rates account for 55.3% of interest-bearing financial liabilities at the Group level 5 . Net financial debt (NFD) of the Telekom Slovenije Group The net financial debt to EBITDA ratio stood at 1.55 at the end of 2024. 5 Loan principal is taken into account. 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 31.12.2022 31.12.2023 31.12.2024 Long term financial liabilities Short term financial liabilities 0.0 0.5 1.0 1.5 2.0 0 50 100 150 200 250 300 350 400 450 31.12.2022 31.12.2023 31.12.2024 NFD / EBITDA in million EUR Financial liabilities Net financial debt (NFD) NFD / EBITDA Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 60 Repayment schedule for existing long-term loans, 2025 to 2029 A total of EUR 45.6 million in long-term loans was repaid in 2024. At the end of 2024, a separate long-term loan in the amount of EUR 15.4 million was partially drawn down for the purpose of fully refinancing a tranche of a long-term syndicated loan that would have matured at the end of 2025. 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 financial 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 2024. 0 100 200 300 400 2024 2025 2026 2027 2028 2029 in EUR milion Principal repayment Oustanding debt Draw ing of a loan Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 61 7.5 Investments Investments 6 Through investments in the construction, modernisation and development of networks and services, we provide the basis for attracting new and retaining existing users, and for securing new revenue sources and maintaining a high level of quality. The majority of investments in 2024 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, the modernisation of data centres, solar power plants and 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. Investment values by company in EUR thousand I – XII 2024 I – XII 2023 Index 24/23 Telekom Slovenije 160,823 158,930 101 Other companies in Slovenia 7,164 23,707 30 IPKO – Kosovo 52,711 23,629 223 Other companies abroad 691 1,670 41 Exclusions and adjustments between Group companies -2,397 -19,899 - Telekom Slovenije Group 218,992 188,037 116 Structure of investments by purpose 6 GRI IO1 Network 43.6% CPE - Customer equipment 6.1% Customers solutions 29.8% IT, internal ICT infrastructure, R&R projects 7.5% IFRS 16 9.3% Other 3.7% Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 62 7.6 Development of the network, technologies and services 7 We manage and develop the largest and most advanced fixed and mobile telecommunications network in Slovenia, through which we provide residential and business users the best user experience and most secure future. Through continuous and systematic development and research projects, we ensure reliable, stable and secure connectivity at the appropriate speeds. Through innovative solutions, we bring the benefits of digitalisation to all segments of the economy and society as a whole. We are laying the foundations for a sustainable and secure transition to the digital society of the future through advanced services and a high-capacity infrastructure. RESEARCH PROJECTS Telekom Slovenije is included in numerous European development projects that are co-financed for the most part by the EU Horizon Europe programme. These projects facilitate cooperation with domestic and foreign partners, and the development of new services and technologies in the international environment. In 2024, we participated in five major European projects that cover strategic areas through the intensive development of new technologies, such as 5G, cyber security, IoT and communications. We secured three new co-financed projects, including our first 6G-related project. Major research and development projects in which Telekom Slovenije participated in 2024 are described in more detail below: • 5G-IANA, • SUNRISE, • ATLANTIS, • 5G-SITACOR, • ENDURANCE. 7 GRI IO1 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 63 In the European 5G-IANA project (https://www.5g-iana.eu/), we participated in the establishment of an open experimentation platform for the automotive industry and related companies. The platform facilitates the development, set-up and testing of innovative solutions in connection with self-driving vehicles and communication between devices in vehicles. After three and a half years, the project was successfully completed in November 2024. Telekom Slovenije provided the necessary 5G infrastructure to test the experimentation platform, as well as an appropriate virtual environment in which partners set up virtual network functions. We presented the functioning of the system on various specific examples and demonstrated that the solution is useful for both technological research and practical solutions to contemporary traffic and road safety problems. The project involved 16 partners from eight European countries. The purpose of the EU-financed SUNRISE project (https://sunrise-europe.eu/) is to improve the resilience of the infrastructure – access to transport, energy, water and healthcare – in times of pandemics and other major threats. A total of 41 partner organisations are working together to develop new technologies and strategies to improve the availability, reliability and continuity of the infrastructure. A wide range of different partners facilitates seamless integration across national borders, economic sectors, and public and private stakeholders. Our participation in the project will allow us to gain the knowledge required to develop advanced tools to protect access to the infrastructure and improve security through more accurate risk assessment. We will also strengthen our role in the European infrastructure and establish new international links for future projects. The aim of the EU ATLANTIS project (https://www.atlantis-horizon.eu/) is to establish the improved and more resilient protection of the infrastructure, and to reduce its exposure to new systemic risks. The project promotes the proactive resolution of specific challenges and agile management practices. The resilience of the infrastructure is addressed at the systemic level. It ensures the continuity of the infrastructure by reducing connected, cascading effects. The project is being implemented in several phases. In the scope of LSP#1, we participated in the development of concrete test scenarios and simulations based on risk analyses, including cross-border transport, energy and ICT links and their interdependencies along the Mediterranean transport corridor. During the other phases of the ATLANTIS project, we made important steps with partners to achieve established objectives, an indication of the project’s commitment to innovation and cooperation. Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 64 The 5G-SITACOR project is part of the Connecting Europe Facility (CEF) and was implemented during the first half of 2024. The project resulted in a study for the introduction of a 5G corridor on cross-border sections of the Mediterranean and Baltic-Adriatic transport corridors. The study laid down criteria for the establishment of an infrastructure to develop smart digital services for businesses, schools, hospitals, cities and motorways. The best ways to exploit 5G technology and to develop a linear infrastructure (e.g. connected and automated mobility (CAM), eCall road safety system, etc.) were also identified and assessed. The study covered more than 200 km of links along the Mediterranean and Baltic-Adriatic transport corridors, and more than 60 km of auxiliary motorways that can be used in the event of a critical incident in western Slovenia and Friuli Venezia Giulia. The Endurance project began in October 2024. The aim of the project is to improve the overall resilience of Europe’s infrastructure against cyber-attacks, natural disasters, technical failures and other events that could compromise its functioning. It envisages the establishment of data sharing and risk assessment measures between infrastructure stakeholders. The project covers various elements of the infrastructure, from digital services, energy, water and health to public administration services. Telekom Slovenije will actively participate in the preparation and implementation of the project strategy. We will play a key role in the MESO pilot programme that will focus on the resilience of the infrastructure to disruptions in the digital and energy sectors, which are closely connected and interdependent. The project involves 22 partners from six European countries. It will last for three years. In addition to Endurance, we secured two new co-financed projects in 2024, which will start in 2025: • The XTRUST 6G project is Telekom Slovenije’s first 6G-related project. Its aim is to establish powerful security solutions for 6G networks that are also resilient to attacks by quantum computers. It will use artificial intelligence to protect against attacks. • The AliEnS project focuses on improving cyber security in the energy sector. The emphasis is on the technical and operational challenges posed by advanced cyber threats, the integration of information and operational technologies, and the lack of sectoral-specific cyber threat intelligence (CTI) tools. Telekom Slovenije received EU funding for the following research projects in 2024: 5G-SITACOR, Atlantis, Precinct, Sunrise, Endurance, 5G LOGINNOV and ALIEns-SOCi. The total value of the funds received was EUR 467,702.57. DEVELOPMENT OF THE NETWORK AND SOLUTIONS 8 Buildings and infrastructure 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 2024, while development activities focused on the Internet of Things, the upgrading of 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, which will be completed by mid-2025. 8 GRI PA6 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 65 We established a direct IP data connection between Telekom Slovenije and Microsoft’s data centre. Through this connection, we have relieved the burden on the remainder of the data connections to the internet, while at the same time providing our users with better response times when using Microsoft services. We carried out significant generational replacements of systems in data centres and introduced non- erasable security backups, which facilitates improved resilience. In terms of the development of communication platforms, we carried out a number of system software upgrades and generational replacements of systems for call centres, and upgraded the firewalls of business and residential telephony systems. We completed a major project to virtualise the international exchange (IX). Several software updates and additional security enhancements were carried out in the development of IP-supported critical infrastructure support systems. In the business segment, we have participated in a number of projects, primarily in the areas of security and network solutions. We established a mobile unit to deploy an emergency network in disaster-prone areas using satellite backhaul. We continuously expand and upgrade Telekom Slovenije’s fibre optic network. This enables higher internet speeds (up to 10 Gbps), a superior user experience for broadband content and advanced solutions for home networks. 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. In 2024, we facilitated the connection of more than 19,000 households, bringing the total number of connected households to more than 478,000. A total of 60 new fibre optic links to base stations were built. We are gradually migrating from the copper network to the fibre optic network. The copper network with ADSL2+ technology has been completely replaced by VDSL2 technology, which offers higher speeds and better transmission symmetry. We are building the network across all of Slovenia, both in urban centres and in rural areas. In doing so, we pursue our development strategy and commitments, economic criteria and the interests of our users. We are working intensively with municipalities, local communities and other infrastructure operators in the joint construction and upgrading of the infrastructure. We are thus facilitating the fast and efficient connection of users to the most-advanced broadband networks. We are also expanding fibre optic connections to base stations and connections for business users. In 2024, we completed the construction of the distribution network for the synchronisation of the 5G network and continued the expansion of the DWDM ROADM network through the further inclusion of 100G and 10G interfaces. The optimisation of the SDH network was carried out in line with the trends of the exclusion of TDM connections. Due to the modernisation of the mobile network, which requires increased bandwidth, we also upgraded microwave links to base stations that are not connected to fibre optic network. We established a direct IP data connection between Telekom Slovenije and Microsoft’s data centre. Through this connection, we have relieved the burden on the remainder of the data connections to the internet, while at the same time providing our users with better response times when using Microsoft services. Users’ needs for an increasingly more powerful mobile internet are rising every year, while volumes of transferred data were also up 2024. For this reason, we continuously update our mobile network and software, and 4G and 5G equipment. We are increasing the capacity of existing base stations and improving coverage by building new ones. During the second half of 2024, Telekom Slovenije implemented the largest 4G and 5G radio network modernisation and expansion project to date, which included more than 540 base stations. We are thus meeting guidelines on the use of frequency spectrum for advanced 4G and 5G technologies, while increasing coverage of the 5G signal from 60% to 80% of the population. In 2024, we also established the first private RAN, while in the two largest cities in Slovenia, Ljubljana and Maribor, we expanded the capacities of the mobile packet core of the redundant link and built new redundant IP/MPLS hotspots to meet the needs of the 5G mobile core. Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 66 The following were connected to Telekom Slovenije’s radio access network in Slovenia as at 31 December 2024: • 1,609 LTE/4G base stations, and • 956 5G base stations, plus several hundred micro and pico base stations. In parallel, we are also improving the 4G network, which already covers 99% of the population. Modern technology will allow us to adapt 4G capacities for 5G when needed. 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 brings users even faster and more reliable mobile data transfer and a more stable connection. We also provide FWA (fixed wireless access) via 5G, which facilitates access to the internet without the need for physical cables. We are planning the smart 5G infrastructure in such a way that ensures numerous virtual dedicated networks for specific business verticals, such as eHealth, energy, transport, logistics, factories, smart cities and communities, etc. Provision of services to users In the services we provide to users, we paid particular attention to exceeding expectations in terms of quality and the speed of delivery. At 86 index points, we exceeded the target transactional NPS at the ‘technician-to-user’ touchpoint by 2 index points. We significantly improved the two most important performance indicators. We improved the average time to eliminate a fault by 30% and the average time of the first offered visits by a technician by 50%. Via the Lightning-Quick Visit preventive campaign, we recorded the fewest destroyed modems in 2024 in the last eight years, while we also achieved the shortest average waiting time for users to replace faulty modems. Connectivity at major events We provided high-quality and reliable connections to visitors, organisers and participants at many high- profile events: The 60th Golden Fox event in Kranjska Gora, the FIS Nordic Junior World Ski Championships in Planica, the women’s World Cup ski jumping event in Ljubno ob Savinji, the Vitranc Cup in Kranjska Gora, the Ski Flying World Championship in Planica, the international Internautica Boat Show in Portorož, the Tour of Slovenia, the Bled Strategic Forum and the Red Bull Flugtag in Maribor. Cyber security and data security Security is one of the key pillars of successful operations and an important building block of any business process. Focused and comprehensive corporate security management at the Telekom Slovenije Group level facilitates the effective management of security risks and thus ensures the high-quality functioning of our network and services. We manage technical and mechanical security systems through our own Alarm Receiving Centre (ARC), which functions in accordance with valid sectoral regulations and is certified in accordance with the SIST EN 50518 standard. Together with physical security, the constant updating and expansion of technical security systems ensure the safety of people and the Company’s property. We ensure a high level of security and the availability of our network and services by having an Information Security Management System (ISMS) and Business Continuity Management System (BCMS) in place. Those systems facilitate a high level of resilience to unwanted events, a rapid response to events, and the protection and recovery of services and processes in the event of identified security threats or incidents. Both systems are certified according to the international ISO 27001 and ISO 22301 standards. We continuously improve information security and particularly cyber security. We include additional security measures before new threats emerge. We thus protect sensitive information and resources that are crucial for ensuring a secure, reliable and high-quality network and services. We ensure compliance with legal requirements when handling and protecting classified information. Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 67 We place an increasing amount of emphasis on the protection of data and systems. The Cyber Security and Resilience Centre and the continuous training and screening of employees for the identification of security threats in cyberspace play a key role in detecting such threats. We raise awareness about security threats and the safe use of electronic communications amongst our users, and share our experience and best practices with others. In 2024, we participated in the INFOSEK information security conference, where we presented security measures for identifying and defending against protracted cyber-attacks. We pay a great deal of attention to cyber and information security. Telekom Slovenije’s Cyber Security and Resilience Centre is one of the largest and most advanced of its kind in the region. Through it, we ensure that our systems, networks, services and users are safe. We also provide cyber protection services to various organisations, companies and events. Our experts handled over 250% more security incidents in 2024 than the previous year. The most frequent attacks, both on individuals and businesses, are perpetrated using malware (worms, Trojans, etc.) and ransomware. Attackers mostly deliver malware and ransomware through phishing or through identified vulnerabilities in software. Distributed denial of service (DDoS) attacks and network scanning for security weaknesses are also very common. The Cyber Security and Resilience Centre continued the automation of processes, risk management and the provision of services to new users in 2024. We continuously monitor the development of cyber security tools. By introducing new tools, we can detect threats more efficiently and quickly, and respond more effectively in the event of a threat. Trend in the handling of security events by the Cyber Security and Resilience Centre Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 68 NEO multimedia platform The NEO multimedia platform links the best solutions for home and entertainment in one place. The platform was developed by Telekom Slovenije’s experts, who are also responsible for its continuous development and upgrades with the latest services. The NEO mobile application was also redesigned in the scope of the updating of the NEO Smartbox interface. For that purpose, we used the new Flutter development platform, which facilitates standard development for Android and iOS mobile operating systems. We thus reduced both the cost and development time of the solution. At the same time, we supported additional TV platforms and updated the existing Smart TV interface. Smart infrastructure services Through smart infrastructure services, we are improving the quality of living, ensuring a clean and sustainable environment, and promoting the use of smart solutions. Smart infrastructure services include remote metering, smart parking lots, building energy management and smart cities. Key smart infrastructure projects in 2024: • In the scope of smart cities and communities, we began to set up a Digital Signage solution to display municipal news and other useful information from connected IoT systems. The solution is designed in a modular way and connectivity is provided by our 5G mobile network. Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 69 • In the scope of the VARCITIES project sponsored by the Municipality of Novo Mesto, we are continuing to develop an advanced IoT platform that we have upgraded with environmental sensors. That platform provides decision-makers with a comprehensive overview of municipal indicators and thus supports local communities in the reduction of emissions and the improvement of energy efficiency. It facilitates the smart management of lighting, mobility, traffic and parking, and the monitoring of environmental indicators, such as air quality and temperature, air pressure, humidity, noise levels and the status of watercourses. • We are working with the Municipality of Celje and two consortium partners in the further development of Centralka. The latter is a modern platform with services for the citizens and visitors of Celje, and contributes to a better quality of life and a more sustainable and environmentally friendly living environment. • Slovenia’s largest shopping centre has cost-effective remote metering of energy consumption (electricity and heat) with the analytical processing of measurements on a cloud platform. The solution, which is based on NB-IoT technology, is one of the first in this part of the EU. It has proven to be a very successful and reliable solution for the remote connection of measuring devices. It facilitates the easier and more efficient management of energy consumption. • Together with our partner, we are developing IIoT360, an innovative platform for the digitalisation of machinery that is intended for the real-time monitoring and optimisation of production machines. The platform improves utilisation and availability of machinery, and facilitates proactive maintenance. It is based on the latest Industrial Internet of Things (IIoT) concepts, cloud technologies and cyber security. Information systems In the area of service delivery systems, we successfully completed the migration of fixed services to a business support systems (BSS) environment in 2024, and shut down the existing Atlantis system. We made a number of additions to our back-office solutions that allow us to implement changes to our portfolio more efficiently. The introduction of the Configure Price Quote (CPQ) system and its integration Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 70 with the Customer Relationship Management (CRM) system has enabled us to fully automate the process. We also updated the integrations of TRM order execution systems and upgraded the activation system (Activator) to facilitate change management. In the area of portal solutions, we upgraded key portals and applications to improve the user experience, performance and security. We integrated additional security protections and optimised the performance thereof. We containerised key applications (i.e. combined their components into stand- alone units) on a modern platform, making them more flexible and more efficient to manage. To support field technicians, we upgraded our in-house application and the Master portal. We have successfully integrated an AI-based assistant, which significantly improves and speeds up technicians’ user experience. In the area of service billing, we facilitate all types of invoices to be issued through the single MM Invoicing system. The user experience was further improved through an upgrade. We modernised the monitoring of international call traffic and provided retail billing for international calls and SMS messages through our own systems. In the area of business intelligence, we expanded the use of a pilot in-house solution for identifying corporate logos during advertising on IPTV, and integrated artificial intelligence and machine learning. We improved the user experience by starting broadcasts more precisely. In the area of commercial warehouses, we updated and optimised reporting, visualisation and the SAP BO data-sharing system. We thus achieved the improved automation of the system and reduced the time needed to prepare mailing lists at first contact with the customer. In terms of the infrastructure, we upgraded key platforms. We introduced a tool to increase the capacities of systems, which has contributed to the improved use of resources and the stability of services. In accordance with the recommendations of the European Banking Authority (EBA), we updated the infrastructure of the VALÚ/VALÚ Moneta system. We ensured the increased resilience of our systems to cyber threats through preparations for compliance with the Digital operational resilience for the financial sector (DORA) regulation. We actively pursued our strategy of simplifying and automating processes. In the area of operational support systems (OSS), we supported new services and technical solutions for the B2B, B2C and wholesale markets, and developed new functionalities and applications to support operational processes. Efficient OSS are crucial for managing the day-to-day processes of monitoring, managing, building and maintaining telecommunications networks and services. We overhauled the infrastructure and upgraded the inventory system and introduced automatic activation for certain services on the B2B market, including the automatic allocation of IP numbers. For the OSS that we offer on markets, we introduced IT support for individual business users and provided cyber security services. The management of the electronic toll collection system for freight vehicles was upgraded with the interoperability of the European Electronic Toll System (EETS), in which two EETS providers are now included. All upgrades and other activities have ensured at least a 99.96% availability rate of individual OSS. Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 71 7.7 Marketing and sales 7.7.1 Market and market shares in key service segments 9 On the developed and saturated Slovenian telecommunications market, which includes system integration and cloud services, Telekom Slovenije is the leader 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 2024. The fixed and mobile markets were dominated by four convergent operators in 2024: Telekom Slovenije, Telemach (United Group), A1 Slovenija (Telekom Austria Group) and T-2. Market shares of leading operators in key segments, in % Source: AKOS, fourth quarter of 2024. Market shares of Telekom Slovenije in key segments 9 GRI 2-6, SDG 8.10 2,504,332 2,538,579 2,590,853 2,661,731 2,730,139 2,773,689 622,874 643,294 666,600 673,571 674,343 722,625 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2019 2020 2021 2022 2023 2024 Mobile telephony Broadband access Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 72 Source: Report on the development of the electronic communications market for the fourth quarter of 2024, AKOS; internal Telekom Slovenije figures. 7.7.2 Sales 10 TELEKOM SLOVENIJE GROUP CONNECTIONS AND SERVICES BY MARKET The Telekom Slovenije Group had a total of 1,991,337 retail mobile users as at 31 December 2024, an increase of 4% or 82,766 users relative to the end of 2023. The Group had 316,176 fixed retail broadband and TV connections as at 31 December 2024, an increase of 4% or 12,120 relative to 31 December 2023. Telekom Slovenije increased the number of fixed retail broadband and TV connections by 12,346 and the number of retail mobile telephony users by 37,866. IPKO in Kosovo increased the number of retail mobile telephony users by 44,900. Retail mobile users Retail mobile users as at 31 December 2024 31 December 2023 Index 24/23 Slovenia 991,307 953,441 104 Kosovo 1,000,030 955,130 105 Telekom Slovenije Group 1,991,337 1,908,571 104 Retail broadband and TV connections Retail broadband connections as at 31 December 2024 31 December 2023 Index 24/23 Slovenia 213,582 201,236 106 Kosovo 102,594 102,820 100 Telekom Slovenije Group 316,176 304,056 104 10 GRI PA4, SASB: TC-TL-000.A, TC-TL-000.B, TC-TL-000.C Fixed broadband access IP TV Market share 28.1% 43.4% Annual change (p.p.) 0.9 p.p. 1.7 p.p. Connections 213,582 181,925 Annual change 6.1% 7.4% 35.8% 0.7 p.p. 991,307 4.0% Mobile telephony 28,1% 71,9% 43,4% 56,6% 35,8% 64,2% Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 73 Sales revenue of the Telekom Slovenije Group Breakdown of sales revenue by company in EUR thousand I – XII 2024 I – XII 2023 Index 24/23 Telekom Slovenije 614,218 601,669 102 Other companies in Slovenia 81,096 97,498 83 IPKO – Kosovo 95,490 90,665 105 Other companies abroad 3,953 3,956 100 Exclusions and adjustments between Group companies -82,315 -98,876 - Telekom Slovenije Group 712,442 694,913 103 TELEKOM SLOVENIJE Telekom Slovenije generated sales revenue of EUR 614.2 million in 2024, an increase of 2% relative to 2023. Revenues were up relative to the previous year in the fixed segment on account of growth in the number of broadband users and higher sales of IT goods and services, while revenues from financial, eHealth, eCommerce and insurance services were also up. Mobile services By doubling the speed of mobile packages free of charge, Telekom Slovenije also facilitated gigabit data transfer speeds in the mobile network. The most popular mobile packages, Naj C and SUPR, have achieved speeds of up to 1 gigabit per second, while almost all mobile packages offer unlimited data transfer within Telekom Slovenije’s network and large amounts of data in countries outside the EU-tariff area, where we also facilitated the automatic purchase of data transfer quantities. We established the first mobile roaming service with voice traffic over the LTE/4G network and VoLTE services for the US market, in partnership with T-Mobile. In the prepaid Mobi segment, Telekom Slovenije’s promotional offers included the launch of new options for the purchase of unlimited quantities, short-term periodic purchases, automatic renewal without topping up, and a special offer for Mobi and IZI SIM cards for its users. Fixed services In the scope of adaptations to achieve the best user experience, Telekom Slovenije upgraded older packages to current higher speeds and better functionalities free of charge for more than 140,000 users. We upgraded the NEO platform with new and improved functionalities, such as simplified voice control, an expanded back-view functionality and the introduction of a range of new programmes. We surpassed the milestone of 300,000 NEO Smartbox subscribers. We developed a new NEO mobile application, which has received the best user ratings in its category in the Apple Store and Google Play. The number of users of services of other operators in Slovenia roaming on Telekom Slovenije’s network also increased. Information and cyber security The need to protect users from rapidly growing threats has contributed to a huge jump in sales of the Safe Web service, which protects against online scams, computer viruses, the downloading of harmful files and programmes, and attempts to steal or abuse personal data. We successfully focused on sales of licences, and reached 70,000 users by the end of the year, an increase of 40,000 relative to the end of 2023. To improve accessibility and visibility, we integrated the Safe Web service into SUPR packages for youth. Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 74 eCare In cooperation with municipalities and the Doctor 24 service, we exceeded plans, and facilitated self- pay and subsidised access to digital health care services for 1,700 users. The service ensures a 24- hour-a-day link to an assistance centre and medical staff, as well as the organisation of necessary assistance. It is designed to help the elderly, disabled and chronically ill to live more independently and safely in their home environment. We use modern technologies to simplify their lives and help meet the growing need for long-term care for older people at home. The subsidised service was implemented with the Slovenian Federation of Pensioners’ Associations, as consortium partner, while Slovenia secured funding from the European Social Fund and REACT-EU sources. In 2025, the exercising of the right to eCare will be regulated under the Long-Term Care Act. VALÚ Smart Wallet The VALÚ payment and identification system functions in an extensive network of more than 4,000 points of sale. In 2024, it was used by more than 150,000 users, an increase of 7% relative to the previous year. We expanded the point of sales network to the area of petroleum products, pharmacies and vignette purchases, and introduced the possibility of payments on the e-Taxes portal. We introduced an additional functionality in the VALÚ Smart Wallet: the possibility of identification using a biometric ID card on a mobile phone. This innovation received a silver award from the Slovenian Chamber of Commerce and Industry for the best innovation in the Central Slovenia region. Insurance Under the Brezskrbni brand, we combined mobile device insurance (phones, tablets, laptops and smartwatches) and innovative travel insurance, which stand out in terms of accessibility and flexibility. The high level of trust in the brand is reflected in the growing number, satisfaction and loyalty of users. Points of sale and sales network We adapt Telekom Slovenije’s wide network of sales outlets to the needs of our customers and market changes. To that end, we successfully relocated the Telekom centre in Ptuj to a more accessible and more frequented location. In addition to our own network of 17 sales centres, we strengthened our field teams of authorised agents and, to a lesser extent, continued the consolidation of our agency sales network, which at the end of the year comprised 67 authorised points of sale. We have dedicated a comprehensive training system to the competences of our field teams and authorised agents, and supported them with a revised, even more targeted approach to local marketing and sales tools. In the area of field sales, we reached a development milestone and increased the number of field advisers to 130, a 2.8-fold increase, in line with the efficiency of our sales channels, which was positively reflected in significantly improved field performance. We also recorded good results in direct sales, where the reorganisation of our call centre and the introduction of advanced solutions improved our reachability and success in handling the increased volume of calls and other forms of communication from our users. Help Desk One of the key changes in 2024 was the merger of the business and residential segments in the call centre, which has contributed to the successful handling of more calls from our users. We successfully answered 397,870 calls, received 177,369 emails, made 13,670 video-identification calls and called 120,000 users. We restructured certain processes to help reduce the time it takes to process cases, improved the analysis of existing procedures and increased the total time advisers spent talking to users, and thus improved the call centre’s accessibility to users. In the area of sales, we increased the number of registrations in the My Telekom application and boosted sales of our Safe Web services. Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 75 SOLUTIONS FOR BUSINESS USERS The Telekom Slovenije Group is recognised on markets as the leader in the introduction and linking of the latest generations of mobile and fixed communications, systems integration, cloud services and multimedia content. This strengthens the Digital strategic pillar, which also includes advanced services for business users that cover the design, set-up, management and maintenance of ICT solutions. As the leading provider of corporate multimedia communications, we provide the most-advanced telephony and video communication, and the integration of business telephony with the Microsoft Teams environment or Cisco Webex Communicator. We act as a key partner for ICT solutions and cyber security services, and are also the leader in Slovenia in this important area for the wider community. For more about cyber security, see section 7.6 Development of the network, technologies and services. In 2024, we continued the trend of attracting new business users and maintaining subscriptions with large business users. This objective also led to the improvement of some partnership statuses and the upgrading of employees’ competences. Presented below are several of the most important statuses and certificates: • 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 Telekom Slovenije’s cloud via the Microsoft SPLA (Service Provider Licence Agreement) and Open License and Open Value agreements. We have Gold Partner status, or Solutions Partner for Modern Work. • Premier Partner Status in the area of systems integration (Premier Integrator) for Cisco technological solutions. • HP Amplify Synergy Partner Status. The Silver Solution Provider registration includes the Silver Hybrid Cloud Specialist and Silver Aruba Specialist titles. • The Platinum Solution Provider status for Dell Technologies, which covers DELL and EMC. • IBM Silver Business partner with a contract signed for ESA to sell managed services with QRadar SIEM integration, and for the area of security (ESA Security). • Expert Partner for the sale of technical solutions from Fortinet with the Managed Security Services Partner (MSSP) status and Integrator status. • Veeam Gold Cloud & Service Provider and Gold Value-Added Reseller partner status for secure data storage services, the development of business continuity and disaster recovery services, and the resale or leasing of licensed software. Smart charging network Together with our partners, we developed a comprehensive solution for our business users to easily and efficiently manage their e-charging network and electrify their fleet. Having their own charging infrastructure facilitates the switch to electric vehicles and affordable charging, and increases their independence from public charging points. The smart charging network service is designed as a turnkey solution, and includes installation, software management and maintenance. Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 76 Private mobile networks Telekom Slovenije signed its first contracts to build commercial private mobile networks, which are a fundamental building block of the digital transformation and the Industrial Internet of Things. They enable companies to adapt their communication infrastructure to the requirements of their business models and processes, including real-time applications such as robotics, logistics or autonomous vehicles. They achieve high data transfer speeds with low latency, even with a large number of connected devices. Companies gain a high level of security in the processing and use of sensitive data and information security, and can improve productivity, automate and optimise processes. Private mobile networks also facilitate the deployment and implementation of comprehensive sustainability strategies by facilitating the management and monitoring of energy sources and consumers, and the collection, analysis and processing of large amounts of data in real time. INO.LAB open innovation environment This demonstration environment represents an important meeting point and test environment for entrepreneurs, businesses, research and academic organisations and other users who want to engage in an open process of innovation and the deployment of private mobile networks. At their disposal are various examples of 5G private mobile networks developed by Telekom Slovenije together with its partners (the LASIM Laboratory of the Faculty of Mechanical Engineering at the University of Ljubljana, and the companies Iku, Avtenta, Metronik, Spica and Tipteh). INTER-OPERATOR SEGMENT Domestic wholesale services We allow operators who roam in Telekom Slovenije’s fixed and mobile network to (co)use the passive telecommunications infrastructure, which includes antenna towers, optical fibres, cable ducts and co- location premises. Our network is used by all major Slovenian operators. Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 77 The number of fibre optic connections in the access network was maintained at the same level as the previous year, while the number of connections on the copper network was down. As a result, we recorded a decline in revenues on the domestic wholesale market. Revenues were lower in the mobile operator access segment primarily due to the discontinuation of the national roaming service and reduced quantities of application text messages, while higher revenues were generated from the leasing of the physical infrastructure. International wholesale services International wholesale revenues remained stable despite challenges related to international roaming and the decline in voice traffic due to regulatory restrictions. Growth in revenues and margin was achieved primarily in the roaming segment. Contributing to their stability was the optimisation of revenues in the international SMS application segment and the efficient monetisation of the regional fibre network on the strategic Sofia–Milan and Sofia–Vienna sections. Following the breakthrough achieved with the introduction of advanced DWDM technology with a capacity of 400 GB, which connected the Sofia Equinix and Vienna Interxion data centres, Telekom Slovenije’s strategic position was further strengthened by a technological upgrade. We integrated the Sofia Equinix and Sofia Telepoint data centres with Milan Irideos and Vienna Digital Reality, and confirmed our position as a leading provider of high-added-value regional telecommunication solutions. The key pillar of our success remains the regional fibre network, which is based on Telekom Slovenije’s backbone network and represents a robust, alternative link between the Balkans and central telecommunication hubs in Western Europe. 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; Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 78 • 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 sales revenue of EUR 11.7 million in 2024, an increase of 5% relative to 2023. 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 builds open broadband networks that are financed by the EU and Slovenia. In 2024, special emphasis was placed on the construction of OBN 4 and OBN 5, and cooperation with local communities and other stakeholders. Sales revenue reached EUR 56.3 million in 2024, a decrease of 23% relative to the previous year. 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 sales revenue of EUR 4.5 million, a decrease of 15% relative to 2023. The company produced 1,557 tonnes of salt in 2024, an increase of 50% relative to 2023. 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 7,256 guests visited the Lepa Vida Thalasso Spa during the 2024 season, a decrease of 2% relative to the previous year. Sečovlje Salina Nature Park recorded 45,794 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 6,561 visitors. For more information regarding Soline's operations and environmental impacts, see Section 8.2.4 Biodiversity in the Sečovlje Saltpans. 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 generated net sales revenue of EUR 2.0 million in 2024, an increase of 15% relative to the previous year. It ensures a stimulative work environment for the long-term employment of disabled persons and other vulnerable groups. TSmedia 11 Slovenia's leading provider of digital content and advanced advertising solutions expanded its network of digital screens under management, comprehensively updated and improved the user experience on the Siol.net digital media and effectively increased revenues from targeted TV advertising in 2024. The company generated sales revenue of EUR 6.7 million, an increase of 2% relative to 2023. Also functioning under the auspices of TSmedia are the Siol.net online media, the Bizi business directory, the only official telephone directory in Slovenia (itis.si), the najdi.si website and DOOH displays. The company is also Telekom Slovenije’s partner in targeted TV advertising on the NEO platform. IPKO In 2024, IPKO reaffirmed its position as the leading provider of telecommunication services in Kosovo, as it provided a full range of convergent services, including mobile communications, fixed telephony, internet and cable TV. With a strong commitment to innovation and customer satisfaction, the company generated sales revenue of EUR 95.5 million, an increase of 5% relative to 2023. This success is the result of strategic marketing initiatives, targeted cross-selling campaigns and a strengthened sales function. As the strongest telecommunications brand in Kosovo, IPKO continues to expand its network, improve the quality of services and introduce digital solutions to meet the changing needs of its customers. 11 GRI TA2 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 79 7.7.3 Brands and market communications The Telekom Slovenije Group had 241 registered brands as at 31 December 2024. The entire list can be accessed on the website http://www2.uil-sipo.si/. Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 80 COMMUNICATION WITH USERS, EVENTS AND PROMOTIONS Through the promise and slogan Always for the Better, we took communication to a socially responsible and sustainable level with the Enjoy Smart platform in 2024. The aim of the campaign was to raise awareness about the responsible use of digital technologies and to encourage users to think about their impact on physical and mental health. A key element of the campaign was a “snap”, which Ambassador Sebastijan Cavazza used in a TV ad to illustrate a moment of awareness and remind us to use digital technologies responsibly. That symbolic snap has become a central theme of the campaign and has spread to all levels of communication. During the Olympic Games (Cheer Smart), we worked with top sports figures to highlight the negative impact of hate speech on athletes. During Black Friday and the New Year, we highlighted the importance of safe online shopping (Shop Smart) and personal gift-giving(Give What Matters, Gift Smart), and promoted our products. We have expanded the Enjoy Smart message to a younger demographic and focused on Generation Z. We introduced them to topics such as overuse, over-reliance on technology, cyber bullying, phishing and responsible driving in a tailored and innovative way. We presented our SUPR offer in the scope of those activities. We also organised a product campaign, Odmrznimo Slovenijo (Unfreeze Slovenia) using NEO fibre optics. That campaign addressed the huge untapped potential of users who were still not on the fibre optic network in 2024 and thus do not enjoy the best user experience. In an October campaign for Naj packages, where Sebastijan Cavazza appears in a remote mountain world, we highlighted the benefits of the network (the coverage and stability of the network’s functioning) and customer satisfaction, in addition to the single promotional price of the packages. MOBI prepaid packages were also presented in 2024 with a new unlimited offer and a new SIM MOBI package with a promotional unlimited seven-day pre-purchase, which we supported with an advertising campaign using the slogan Stay Free. Throughout the year, regular monthly campaigns were organised to promote the Loyalty Programme and Modri Fon, as well as campaigns for the portfolio of Naj and SUPR mobile telephony packages, including in cooperation with device suppliers. Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 81 NEO celebrated its 6th anniversary at the end of the year, with additional free TV content gifted to users. We also reached a new milestone: 300,000 NEO Smartboxes. Throughout the year, we presented the eCare service to older people and their relatives in publications and the local media, making it possible for them to live more safely and independently at home. We continued to communicate with business users using the slogan Always for the Better. During the year, we organised a number of different sales-oriented advertising campaigns, in which we presented various benefits for entrepreneurs. Cyber security awareness campaigns Due to the increased risk of cyber threats, Telekom Slovenije warned companies throughout the year about the consequences of cyber attacks and advised how to effectively ensure adequate cyber resilience, in particular by protecting IT and OT environments and thus critical industrial systems. We focused on protecting both IT environments that are critical to day-to-day operations, and on OT environments (operational technology environments) that include critical industrial systems. We warned small and micro enterprises about online security risks and informed them about the Secure Web service, which protects devices on fixed and mobile networks against those risks. IPKO participated in the organisation of a second cyber security conference, and thus strengthened its position in the ICT sector in Kosovo. Together with our partners, we were active at more than 70 events, organised 10 webinars regarding cyber security and energy efficiency with over 900 participants, and organised more than 60 promotional days in Telekom centres and over 500 direct campaigns (SMS, Viber and direct mail). Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 82 Our activities were marked by a special Olympic year, in which we hosted athletes and their representatives even more frequently, paid tribute to their achievements and worked together to raise awareness amongst fans. To promote and circulate technological knowledge, we organised traditional and new events for business partners, professional staff and other interested stakeholders, such as meetings of foreign international operators and large business users, and open house at the INO.LAB innovation laboratory. For several years now, we have paid special attention to the loyalty of our users as the members of Telekom Slovenije's Loyalty Programme, who we segmented in 2024 according to their purchasing decisions. We took sports fans to see a World Cup climbing event in Koper in September and took families to see the Bear and Piggy puppet show at the Ljubljana Puppet Theatre, while film enthusiasts were invited to a pre-premiere screening of the film My Late Summer (Nakon ljeta) directed by Danis Tanović. Communication with users via the web and social networks More than 590 different emails were sent to keep users informed about new features and events. We saw exceptional growth in the area of social media: TikTok, YouTube and LinkedIn are at the forefront, but we actively manage 14 different profiles under the Telekom Slovenije, VALÚ and IZI brands. Through tailored communication on different networks, we ensure we reach the widest possible audience in the way that suits them best. We demonstrate concern for our users on a daily basis through various offers, user tips, prize games, and information from the areas of technology and sports. The majority of the content relates to our portfolio of services. We are in daily contact with our users on social networks, and via chat rooms and emails. We thus responded to 9,218 chats, 141,904 emails and interacted with more than 100 users on social networks every day last year. We were active on all social networks. The picture below illustrates active users on specific networks. SATISFACTION OF TELEKOM SLOVENIJE’S USERS 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. Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 83 Residential users Telekom Slovenije has successfully maintained a high level of customer satisfaction. Overall satisfaction reached its highest level in recent years. 12 Users give the highest ratings to responsiveness and the handling of requests (a fast call centre response and fast connection), bundled offers (system update, free content in December, NEO tour prize game, NEO, portfolio of TV applications and increase in data transfer quantities) and the infrastructure (network update, good and fast internet, including abroad, the best coverage, the fibre optic network, etc.). The following represent the key building blocks to satisfaction with the Telekom Slovenije brand: • the quality of services, • the coverage and speed of the mobile network, • the stability of the network (fixed and mobile), • the reliability of the operator, and • thumbnail scrolling, content search, speed of switching between channels, time functions, the portfolio of TV applications, interface and remote control amongst TV users. Satisfaction index for residential users of Telekom Slovenije’s fixed and mobile services Source: Valicon, Satisfaction of the users of telecommunication services; spring 2024. NEO is a generator of positive experiences and has maintained a high level of satisfaction over time. The NEO user base increased significantly (relative to 2023), while growth was also recorded in recognition and choice. It is convincing to users primarily as an interface with simple voice-controlled searching and content in one place. (Valicon, Monitoring of product brands – NEO, 20 December 2024 to 6 January 2025, n = 1,040). NEO achieves the highest ratings amongst advanced TV users in 13 out of 26 elements: 12 Valicon: Satisfaction of the users of telecommunication services, Spring 2024 (11 March to 18 March 2024; sample size: 1,017) 19% 60 61 62 63 64 65 66 67 68 69 70 6% 8% 10% 12% 14% 16% 18% 20% Spring 2020 Spring 2021 Spring 2022 Spring 2023 Spring 2024 Customer satisfaction index (CSI) - fixed category (growth 2020/2024) CSI CSI % completely satisfied +10% 18% 60 61 62 63 64 65 66 67 68 69 70 6% 8% 10% 12% 14% 16% 18% 20% Spring 2020 Spring 2021 Spring 2022 Spring 2023 Spring 2024 Customer satisfaction index (CSI) - mobile category (growth 2020/2024) CSI CSI % completely satisfied +6% Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 84 Payment cards and cash remain the most frequently used forms of payment, while the share of e-wallet users was up by 5 percentage points (e-wallets are now used by 78% of Slovenes between the ages of 15 and 75 years). In the mobile payment systems and mobile wallets category, VALÚ increased its choice position last year (from 15% in 2023 to 18% in 2024) and maintained a stable brand strength index (BSI = 25, representing growth of 1 point relative to the previous year). The VALÚ brand is perceived by users as: • trustworthy, • local, • appropriate for different purposes and situations, and • caring for users. (Valicon, Monitoring of product brands – VALÚ, December 2024; 20 December 2024 to 6 January 2025, n = 1,040). Business users Telekom Slovenije is the most frequently recalled ICT and IT solutions provider among its business users (71% recall it first, 88% overall), while it also ranks first in choice (69% as top choice, 85% overall). The elements that matter most to business users when choosing a telecommunications provider are: the availability of help, quality and performance of services, responsiveness of help desk and breadth of choice for business users. More than 90% of users 13 are satisfied with these elements at Telekom Slovenije. Satisfaction with Telekom Slovenije’s points of sale 13 Valicon: Satisfaction amongst Telekom Slovenije’s B2B users, Autumn 2024 (8 November to 25 November 2024; n = 90). Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 85 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 call centres and responsiveness to messages sent via email to [email protected]. The best rating again last year was achieved by the email channel. The call centre channel recorded the biggest increase in its rating over a one-year period. Through sales standards and the continuous education for Telekom Slovenije’s advisors, we are improving the excellence of the user experience in all channels. Source: Temidia / Arhea, Mystery Shopper, 2024 14 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 daily 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, 2024. The year 2024 was very successful, as we exceeded our NPS targets and delighted users. Despite challenges, such as heavy snowfall at the beginning of the year, occasional disruptions in the functioning of services and autumn notifications about changes in terms and conditions, we proved that a rapid response and reliable support can make a significant difference in maintaining a high level of customer 14 Temidia / Arhea, Mystery Shopper, 2024 (three visits to each selected Telekom branch, 10 calls to the call centre and 10 emails). 0 10 20 30 40 50 60 70 80 90 100 Telekom Slovenije branches Email Call Centre Overall assessment by channel, 2024 first half-year 2023 second half-year 2023 first half-year 2024 second half-year 2024 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 86 satisfaction. Our advisers at call centres and point-of-sales, field technicians and installers received outstanding praise for their professionalism, friendliness and helpfulness. 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. In order to improve its products and services, Avtenta measures the satisfaction of its business partners using CSI (customer satisfaction index) and NPS (net promoter score) indicators. Measurement indicators were higher in 2024 than in previous measurements. GVO measures satisfaction regularly using NPS at contact points during simple installation and indoor installations at the users of Telekom Slovenije’s services. The NPS has increased further in 2024 (from 82 to 89) and remains above target values. TSinpo carries out unstructured interviews with users once a year. 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. 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. Its NPS for mobile services remains significantly higher than its competitors at 78, which reflects a high level of customer loyalty and satisfaction. However, Art Motion has gained a competitive advantage in customer satisfaction in fixed services due to its diverse range of content. Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 87 8 SUSTAINABILITY STATEMENT OF THE TELEKOM SLOVENIJE GROUP 8.1 General information (ESRS 2) Sustainability principles are an integral part of the Telekom Slovenije Group's business strategy and development. We integrate them in all our business processes, products, services and content. We focus on bridging the digital divide, and strive 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. In this annual report, we have upgraded our long-standing presentation of the environmental, social and governance (ESG) aspects of our operations to meet the requirements of the European Sustainability Reporting Standards (ESRS). List of requirements by disclosure 15 Section/page ESRS 2 – General disclosures BP-1 – General basis for preparation of sustainability statements 8.1.1/87 BP-2 – Disclosures in relation to specific circumstances 8.1.1/87 GOV-1 – The role of the administrative, management and supervisory bodies 8.1.2/89 GOV-2 – Information provided to and sustainability matters addressed by the undertaking’s administrative, management and supervisory bodies 8.1.2/89 GOV-3 – Integration of sustainability-related performance in incentive schemes 8.1.2/89 GOV-4 – Statement on due diligence 8.1.2/89 GOV-5 – Risk management and internal controls over sustainability reporting 8.1.2/89 SBM-1 – Strategy, business model and value chain 8.1.3/93 SBM-2 – Interests and views of stakeholders 8.1.4/98 SBM-3 – Material impacts, risks and opportunities and their interaction with strategy and business model 8.1.5/102 IRO-1 – Description of the processes to identify and assess material impacts, risks and opportunities 8.1.5/102 IRO-2 – Disclosure requirements in ESRS covered by the undertaking’s sustainability statements Annex 10.4/VIII 8.1.1 About the annual report (BP-1) 16 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), national legislation (Companies Act – ZGD-1M) and the Corporate Sustainability Reporting Directive (CSRD). The Controlling, Corporate Communication and Corporate Sustainability and Business Excellence organisational units are responsible for drafting the annual report. Data and information are captured with the help of structured questionnaires, the content of which is prepared by experts for specific areas from Telekom Slovenije 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 2024 to 31 December 2024. The Sustainability Statement of the Telekom Slovenije Group has been prepared in accordance with the European Sustainability Reporting Standards (ESRS) as adopted by the EU and in accordance with the requirements of the Companies Act (ZGD-1M). The Sustainability Statement of the Telekom Slovenije Group was approved by the Management Board on 11 March 2025. The Deloitte revizija d.o.o. performed limited assurance engagement related to Sustainability Statement of the Telekom Slovenije Group for 2024 and issued unqualified limited assurance conclusion. 15 ESRS IRO-2_02 16 ESRS BP-1_01-06 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 88 The sustainability statement is prepared on a consolidated basis and applies to the Telekom Slovenije Group. 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, where permitted limits are taken into account for companies outside the EEA (IPKO). Financial reporting covers the parent company and all of its subsidiaries, as is evident in Note 5 in the financial report. Identified impacts, risks and opportunities primarily relate to our own activities, while we currently only cover the upstream and downstream value chain in the section of the report that relates to greenhouse gases. When designing the sustainability statement, we complied in full with the ESRS and also took into account sectoral GRI and SASB indicators. This all facilitates a comprehensive and transparent overview of the sustainability efforts and impacts of the Group’s operations. We have not omitted any information in the statement relating to intellectual property, know-how or the results of innovation, nor have we exercised the option to exempt disclosure of any foreseeable events or matters that are the subject of ongoing negotiations. 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-1M). 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 2022. Disclosures in relation to specific circumstances (BP-2) 17 We began taking a transparent approach to the disclosure of our non-financial impacts in 2009, when we first applied the then international GRI G3 Reporting Guidelines. We first identified material sustainability matters through a materiality analysis and stakeholder engagement in 2016. We added our positions regarding the UN Global Sustainable Development Goals (SDGs) to GRI disclosures a year later, followed by the addition of our positions regarding the Sustainability Accounting Standards issued by the SASB in 2020. In 2023, we adopted the Corporate Sustainability Policy of the Telekom Slovenije Group and implemented the double materiality assessment (DMA) process for sustainability matters, as foreseen by new European standards (ESRS). The results were reviewed and updated in 2024, as shown in Section 8.1.5 Impacts of the Telekom Slovenije Group's operations. In light of the above, we restructured the Telekom Slovenije Group’s Sustainability Statement for 2024 to be consistent with: • CSRD (Directive (EU) 2022/2464), • ESRS (Commission Delegated Regulation (EU) 2023/2772), • Taxonomy Regulation (Regulation (EU) 2020/852), and • Companies Act (ZGD-1M). In addition to the information required by the ESRS, we also followed voluntary sectoral commitments and non-financial reporting standards: the GRI US (Global Reporting Initiative, Universal Standards), SASB (Sustainability Accounting Standards Board) and the UN's global Sustainable Development Goals (SDGs). The time periods used for that purpose are consistent with those defined in ESRS 1, Section 6.4. We maintained consistency with the methodology used in the analysis and capture of data in previous years, so reporting boundaries and the way the data are presented remain unchanged. Any minor deviations from this approach are explained in detail in the footnotes, which ensures the transparency and reliability of the results presented. 17 ESRS BP-2_01, BP-1_10-17 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 89 Incorporation by reference 18 All the content required by the ESRS is included in the Sustainability Statement of the Telekom Slovenije Group, except for the description of revenue by sector, which is presented in point 6. Segment reporting in the financial report. 8.1.2 Management of sustainability at the Telekom Slovenije Group 19 Telekom Slovenije is a public limited company with a two-tier governance system. The Company is managed by the Management Board and supervised by the Supervisory Board. Telekom Slovenije’s Management Board comprises five members: the President, Vice-President, two members and the Workers’ Director as employee representative. In the management of transactions, the Management Board acts with the diligence of a conscientious and honest business manager. The Management Board ensures that risks are properly managed, integrity is respected and trade secrets are protected. The composition of the members of the Management Board in 2024 and their areas of work are presented below: – Boštjan Košak, President: 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. – Boštjan Škufca Zaveršek, MSc, Vice-President: B2B and B2C, Development of Products and Services, Digitalisation, Development of ICT Solutions, Marketing and the subsidiaries Avtenta and Soline. – Irma Gubanec, MSc, member: Finance, Accounting, Controlling, Procurement, Real Estate Management, Logistics and the subsidiary TSmedia. – Vesna Prodnik, MSc, member: Network Management, IT and ICT Services, and the subsidiaries GVO, SIOL Zagreb, SIOL Podgorica, SIOL Sarajevo, SIOL Skopje, SIOL DOO Belgrade and SIOL Prishtina. – Špela Fortin, member and Workers’ Director. Corporate Sustainability, quality management systems and the subsidiary TSinpo. The responsibilities of the Management Board member who serves as Workers’ Director derive directly from valid legislation. The Supervisory Board comprised the following members: Žiga Debeljak, MSc (President) Karla Pinter, MSc (Vice-President), Marko Boštjančič, Alenka Čok Pangeršič, MSc, Mateja Čuk Orel, MSc, Aleksander Igličar, MSc, Drago Kijevčanin (Vice-President and employee representative), and Dušan Pišek and Rok Pleteršek (employee representatives). All members of the Supervisory Board submitted a statement of compliance with the criteria of independence in accordance with the Corporate Governance Code. The composition of the Supervisory Board is diverse. The members of the Supervisory Board 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 the scope of its competences, the Supervisory Board ensured the responsible and prudent supervision of the operations of the Telekom Slovenije Group and Telekom Slovenije in 2024. 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. Corporate sustainability management system The Telekom Slovenije Group’s Corporate Sustainability Policy is a core document that governs our activities in priority sustainability areas. Specific areas of sustainable operations are defined in detail in sectoral rules, policies, codes and declarations. The Management Board is responsible for ensuring corporate sustainability, the drafting of strategic guidelines, transparent reporting and the monitoring of progress and results in this area. The Board appoints a member from among its members to be responsible for the management of corporate sustainability. 18 ESRS BP-2_20 19 ESRS 2 GOV-1_01-04, GOV-1_08-17, GOV-2_01-03, G1.GOV-1_01-02 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 90 The following roles are defined for the effective management of corporate sustainability: • Management Board member responsible for corporate sustainability: oversees the operations of the Corporate Sustainability Group and heads the Corporate Sustainability Committee. • Corporate Sustainability Committee (hereinafter: the committee): the committee’s tasks are to oversee the implementation of the Corporate Sustainability Policy, integrate the sustainability strategy into the activities of the parent company and its subsidiaries, and monitor the implementation of activities and the achievement of planned objectives. The committee is also responsible for making decisions regarding the content of the Group’s reports and disclosures prior to public announcements. As a rule, the committee comprises: o all members of the Management Board, o B-1 directors of the parent company who are nominated to serve on the committee by the responsible members of Management Board (with the exception of the member of the Management Board who serves as Workers’ Director), where each member of the Management Board may nominate one (1) B-1 director (who is the head one of the business areas within the Management Board member’s area of responsibility and accountability) to serve on the committee, o the managing directors of subsidiaries, and o the head of Corporate Sustainability. The committee meets at least twice a year. Other employees or external members with the relevant competences in the area of sustainable operations may also participate in sessions of the committee based on the proposal of the committee chair or the head of the Corporate Sustainability Group. The committee’s sessions may be held physically, by electronic conference call or by correspondence. The format of session is decided by the chair of the committee. • The Corporate Sustainability Group is a permanent working group that comprises representatives of the parent company’s business areas, representatives of subsidiaries and experts in certain areas. It is responsible for planning and coordinating the implementation of the action plan for achieving corporate sustainability objectives, as defined in the strategy and annual business plan, and for continuous improvements and progress in this area. • The Head of Corporate Sustainability: heads the Corporate Sustainability Group, is responsible for communication between that group, the Corporate Sustainability Committee and the Management Board, and organises and coordinates the preparation of key sustainability-related documents and activities. • Representatives for corporate sustainability comprise representatives of the parent company’s business areas and representatives of the subsidiaries that are members of the Corporate Sustainability Group. Together with the B-1 directors of the parent company and the managing directors of subsidiaries, they are responsible for the planning and implementation of an action plan at the parent company and subsidiaries. • Subject-matter experts are individuals with the specialised skills needed for the Corporate Sustainability Group to work effectively and efficiently. The Corporate Sustainability Committee and Corporate Sustainability Group are appointed by the Management Board. Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 91 Corporate Sustainability management system The Management Board and the Supervisory Board are regularly briefed on significant impacts, risks and opportunities. The Supervisory Board is informed of measures implemented in the context of the quarterly business reports, while the Supervisory Board’s Audit Committee is briefed more frequently in the scope of its competences. The Management Board is also briefed on material impacts, risks and opportunities through the weekly reports on sustainable operations. The broader management team of the parent company and the Group’s subsidiaries address sustainability matters through their work on the Corporate Sustainability Committee. Management and supervisory bodies have the necessary competences and expertise to oversee sustainability matters, which enables them to take due account of impacts, risks and opportunities in their various business decisions. They further develop and enhance their expertise by accessing professional resources, experts and training through the Directors’ Association, and membership in the CER Business Betwork and other organisations. The results and process of the double materiality analysis, including the double materiality matrix and the impacts, risks and opportunities of the Group (see section 8.1.5), were discussed and approved by the Corporate Sustainability Committee. The Supervisory Board’s Audit Committee and the Supervisory Board were continuously briefed on the implementation of the CSRD. Incentive scheme and remuneration policy (GOV-3) 20 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 correlations 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 Body and the Management Bodies of Telekom Slovenije Group Subsidiaries (hereinafter: the Remuneration Policy), which was last updated in 2023. 20 ESRS 2 GOV-3_01 to 06, E1. GOV-3_01 to 03 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 92 Each year, the Supervisory Board, in accordance with the Company’s annual business plan, specifies in more detail individual issues relating to the remuneration of the members of the Management Board. These primarily include the selection of short- and long-term performance criteria, and the associated annual targets and weighting in terms of importance, the system used to assess the achievement of those targets, the method used to calculate the variable component of remuneration based on scores achieved, and other necessary content. The remuneration of the members of the Management Board comprises a base salary, a variable remuneration component and certain other rights and benefits. The criteria for the payment of the variable component of remuneration are formulated from financial and non-financial criteria. According to the Remuneration Policy, financial criteria (e.g. net sales revenue, EBITDA) contribute 50% of the total variable remuneration. Non-financial criteria contribute an equal 50%. Non-financial criteria include market position (30% of non-financial criteria), development (25%) and organisational effectiveness (15%), as well as environmental (10%), social (10%) and governance responsibilities (10% of non-financial criteria). The success of environmental responsibility includes, inter alia, the achievement of carbon footprint targets. Social responsibility includes indicators regarding employee development and training, and diversity, while governance responsibility includes compliance and integrity, and the quality of communication with stakeholders. The aforementioned decree states that the basic remuneration of members of the Management Board may not exceed five times the average gross salary within the Telekom Slovenije Group. The remuneration of each member of the Management Board takes into account their powers, duties, experience, responsibilities, scope of work and the Company’s financial situation. 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 2024 are presented in a separate report on the remuneration of members of Telekom Slovenije, d.d.’s Management Board and Supervisory Board for 2024. They are also presented in the financial report, in point 42. Related party transactions. Risk management and internal controls over sustainability reporting (GOV-5) 21 The risk management framework is based on COSO practices and the ISO 31000 standard. Risks are managed according to the principles set out in the Group’s Risk Management Policy and are classified into the following categories: • strategic risks, • financial risks, • regulatory and compliance-related risks, and • operational risks, which include sustainability risks. Risk management at the Company and within the Telekom Slovenije Group, which includes identified sustainability risks, is reviewed by the Internal Audit Service and reported to the Management Board in accordance with professional guidelines. The Management Board is regularly informed of the Telekom Slovenije Group’s risk assessment and of the findings of the audits of the various assurance providers. It responds to assessments and findings appropriately through a range 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. Statement on due diligence 22 All defined material sustainability matters are taken into account in the Telekom Slovenije Group’s Strategic Business Plan for the period 2024 to 2028. The overall strategy is supported by thematic strategies regarding sustainable aspects of operations, technological development and employees. In line with the sustainability aspects of the Group’s strategy, requirements regarding sustainability due diligence and risk management are integrated into business processes through policies and procedures, including 21 ESRS 2 GOV-5_01-05 22 ESRS 2 GOV-4_01 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 93 the Commitment to Human Rights in Business, the Code of Ethics of the Telekom Slovenije Group, the Code of Conduct for the Suppliers of the Telekom Slovenije Group and the Risk Management Policy. Sub-sections of the sustainability statement correspond to each material sustainability matter and provide an overview of the risk assessment and due diligence processes related to each material sustainability matter, as well as an assessment of identified potential adverse impacts, measures to address and mitigate identified impacts, and the results of these efforts. Sustainability-related objectives 23 The Telekom Slovenije Group is committed to sustainable operations and to achieving goals that include positive impacts on the environment, society and the economy. These goals are aligned with global guidelines and policies (the UN Sustainable Development Goals (SDGs), the Digital Slovenia 2030 strategy and the EU Green Deal), and focus on key areas such as bridging the digital divide, energy efficiency, responsibility to customers and a superior user experience. The key sustainability-related strategic objectives are set out as integral parts of the business strategy: • carbon neutrality (under Scopes 1 and 2) by 2028; • option of broadband internet access for 99% of households in Slovenia (fibre optics, 4G, 5G) by 2026; and • gender balance in leading positions. We strive to expand access to high-speed internet and mobile services in all Slovenian towns and regions and in Kosovo, which is key to promoting digital literacy and inclusion, and the reduction of social inequalities. Our cloud solutions also enable business customers to increase operational efficiency and optimise resource use. 8.1.3. Business model and value chain of the Telekom Slovenije Group 24 Business model of the Telekom Slovenije Group We create value for stakeholders through our business model: we develop, market and distribute ICT services and products for residential and business users. 23 ESRS 2 SBM-1_21-23 24 ESRS SBM-1_01-04, 06, SBM-1_21-28 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 94 Value chain The Telekom Slovenije Group’s value chain functions as a broad and interwoven ecosystem of interdependent and interconnected elements. In accordance with the business model, we create value through superior services and products to meet the growing communication needs of society, and residential and business users in Slovenia and Kosovo. Telekom Slovenije Group plays a leading role in the upstream, midstream and downstream value chain by ensuring continuous and stable operations, continuous improvement and sustainable development. A robust network infrastructure plays a fundamental role in the creation of value. In cooperation with upstream, midstream and downstream stakeholders, we are committed to continuously building on the value we create to help society, the economy and local communities achieve the goals of digitalisation and the green transition. The Telekom Slovenije Group has 3,200 employees, 2,720 of whom work in Slovenia and 480 of whom work in Kosovo. Revenues broken down by sector are disclosed in point 6. Segment reporting in the financial section of the annual report. Upstream value chain: suppliers and partners The Telekom Slovenije Group’s upstream value chain includes suppliers and business partners. Their role is fundamental for the compliant and smooth implementation of activities, in particular for the functioning of our superior network and technologies, and the internal and external ecosystems. Data security and privacy are essential aspects of our activities already in development processes. Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 95 Suppliers provide us with network equipment (e.g. base stations and routers), telecommunications equipment (e.g. phones and modems) and software (e.g. operating systems and applications), as well as construction materials (for the building of the infrastructure). Business partners are involved in the development and implementation of services, network maintenance (e.g. equipment servicing), consultancy and training. The aim of our targeted approach to the selection of suppliers and business partners is to ensure sustainable and responsible operations throughout the supply chain. The Telekom Slovenije Group operates in a regulated environment. In its operations and development along the entire chain, Telekom Slovenije complies with legislation in the areas of telecommunications, data protection, consumer protection, etc. Midstream value chain: own operations Playing a key role at the heart of the value chain are employees with their knowledge, experience and commitment, which serve as the building blocks of customer satisfaction (particularly in the development of new services, sales, marketing and user support) and the achievement of business objectives. The Telekom Slovenije Group promotes a culture of inclusion and diversity, which draws its strengths from the diversity, professionalism and cooperation of employees, while it encourages a healthy lifestyle and ensures the professional and personal advancement of employees. Through a number of professional training programmes, we are building a supportive work environment that attracts talented people. We are focused on the excellence of user experience, technological development and the continuous achievement of the highest standards of security for personal and other data. We are committed to responsible procurement processes and the efficient use of natural resources, and to taking sustainability into account in the development of our network and portfolio. The Telekom Slovenije Group has a corporate governance system in place based on ethical principles, transparency and accountability. Corporate sustainability and social responsibility are embedded in all business processes and strategic planning. Downstream value chain: customer satisfaction, sustainable growth and digital transformation Our efforts in both parts of the value chain are delivering tangible results. Through a reliable and powerful infrastructure, we facilitate millions of daily interactions, strengthen the digitalised and competitive Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 96 economy, and equal inclusion and participation in society. We continuously invest in the development of new services and technologies. In all of this, we strive for an excellent user experience, which is at the core of our strategy, with high quality-services at competitive prices, which is reflected in a high level of customer satisfaction. These are residential and business users, who use our telecommunication services such as: mobile and fixed telephony, internet, TV, data roaming, and smart solutions for home, business and local communities. In the downstream value chain, we strive to reduce the environmental impacts of our products and services. For this purpose, we implement policies and measures for the efficient consumption of energy, improve the composition of energy sources, introduce solutions to extend the life cycle of products, reduce waste and ensure the responsible disposal thereof. Our role in contemporary society extends to many areas of everyday life and to almost all sectors of the economy, which further dictates that we communicate transparently and openly with users and other stakeholders. We actively promote the safe and responsible use of digital technologies. Our development focuses on widely accessible services and the digital inclusion of all segments of the population. We strive for financial stability and growth in operations so that we are a profitable investment for shareholders, who are kept equally and regularly informed of our plans and results. Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 97 Value chain of the Telekom Slovenije Group Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 98 8.1.4 Inclusion and participation of stakeholders (SBM-2) 25 Engaging with key stakeholder groups is crucial to our long-term success. Understanding their views and interests impacts our strategy and business model in different ways. Together with our partners, we promote the transformation to a carbon-neutral and digitally connected Slovenia with a comprehensive range of solutions for the further development of smart cities, businesses and communities. Our activities help to bridge the digital divide and foster an inclusive, healthy and safe society in Slovenia and Kosovo. Stakeholder views form the basis for our due diligence process and materiality assessment, which is described in more detail in point 8.1.5. Impacts of the Telekom Slovenije Group’s operations. The Telekom Slovenije Group’s key stakeholders, as defined in Telekom Slovenije, d.d.’s Corporate Governance Policy, are as follows: • employees, • shareholders and potential investors, • users of our services, • regulatory and government authorities, • banks, financial analysts and other financial publics, • suppliers and other business partners, and • local and broader communities, and • the media. 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. We gather users’ opinions regarding our services, including the sustainability aspects of operations, through regular surveys, focus groups and questionnaires. Feedback serves as a useful guide in the development and upgrading of products and services, and in the setting and monitoring of targets and key performance indicators. Management and Supervisory Board are informed of all risks, opportunities and impacts reported by stakeholders as part of regular reporting. The table below shows how we engage with our key stakeholders, what is most important to them and what the results of that engagement were in 2024. 25 ESRS 2 SBM-2_01-12, S1-2_01-04, S4-2_01-09 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 99 Overview of Telekom Slovenije’s stakeholders and the inclusion thereof 26 Stakeholders What is most important to them? How they are included and frequency of contact Activities in 2024 Shareholders , banks, analysts and other financial publics – 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 [email protected] and [email protected]; – 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 business reports and the annual report; and – 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 invoked two General Meetings 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 [email protected] and [email protected] 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 principle; – through annual user satisfaction research; – regular contact through page view statistics; and – daily measurement of Net Promoter Score – We present users new services, the portfolio and other content relevant to them via numerous (physical and digital) channels. – We cover more than 99% of the population with the LTE/4G network and more than 80% of the population with the 5G network. – Customer satisfaction with Telekom Slovenije’s fixed and mobile services was the highest in recent years. – In 2024, we received 397,870 calls and 177,369 emails from users, and made 13,670 video identification calls. We are accessible by users via the online chat feature, the X platform and Facebook. – The digital adviser Maks recorded 38,015 contacts in 2024, a decrease of 3% relative to 2023. This is mainly due to the high availability rate of advisers on other channels. – In 2024, 1,365,511 sessions with users were carried out by advisers in their work through the automation and support bot platform, an increase of 3% relative to 2023. – We achieved a high transactional NPS (visit by a technician 26 GRI 2-29 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 100 Stakeholders What is most important to them? How they are included and frequency of contact Activities in 2024 (NPS) at touchpoints. 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; – the MO.S.T. organisational culture; and – information regarding the Company’s operations and strategic plans, and on current developments at the Company and in its activities. – #connected – 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 and appraisal-development interviews with employees. – A total of 100% of employees were included in education and training in 2024. Employees received an average of 28.2 hours of training at the Group level and 32.4 hours per employee at Telekom Slovenije. – Persons with a level VII education account for the highest proportion of employees at the Telekom Slovenije Group level (37.7%). – Telekom Slovenije awarded 5 company scholarships during the 2024/2025 academic year, while the Company has 22 active scholarship holders. – The Works Council met at nine regular sessions in 2024, while three sessions were held as correspondence sessions. Members of the Works Council receive regular training and participate in study sessions organised by the Slovenian Association of Works Councils, and are familiar with key activities relating to concern for employees and the Company’s operations. 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 2,676 suppliers from 47 countries. A total of 96.3% 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 588 million in 2024, including 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; – professional and continuous response to the proposals, analyses and decisions of regulatory bodies; – participation in the drafting of legislation, with expert comments (as required); and – regular contact with the sectoral regulatory – We consistently adhere to applicable laws, regulatory measures, regulations and best practices in all phases of the business process and operations. Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 101 Stakeholders What is most important to them? How they are included and frequency of contact Activities in 2024 – limitation of environmental impacts and a focus on sustainable development; body. – We prepare proposals for changes to regulatory measures and respond by commenting on the regulatory body’s published analyses, implementing acts and strategic documents. Local and wider community – Wide access to services and responsible siting of the infrastructure (fixed and mobile network); – corporate 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 corporate 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 2.2 million for those purposes in 2024. – We conducted 102 measurements of electromagnetic radiation (EMR) in 2024 as a result of the expansion of the 4G and 5G network (2023: 112). A total of 78 measurements were carried out for 5G technology. Media – Business ethics and compliance; – media and ICT literacy; – sustainability and 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, podcasts, responses to journalists’ questions, and maintenance of formal and informal relationships); – organisation of corporate business events and meetings; and – regular communication about corporate topics, new services and products, and other topics related to the Company’s operations. – The Telekom Slovenije Group’s general communications are carried out through the parent company. In addition, subsidiaries carry out their own communications and sales support activities to strengthen media relations in line with the specific nature of their operations. – We responded to around 200 questions from journalists in 2024. A total of 62 press releases were sent to journalists during the year. Special attention was given to corporate social responsibility communication (‘Enjoy Smart’, ‘Cheer Smart’ and ‘Shop Smart’). – We organised seven press conferences, independently or in conjunction with partners, and maintained formal and informal relations. – Telekom Slovenije significantly strengthened its media presence in 2024, with a significant increase in favourable articles, and thus consolidated its position as the leading provider of telecommunications services in Slovenia. In 2024, Telekom Slovenije appeared in 4,872 media publications, which represents a 10.23% increase compared to 2023 (4,420 publications). The annual increase in the number of planned media articles is the tangible result of Telekom Slovenije’s proactive communication strategy, as the proportion of such articles was up by 4.95 percentage points in 2024 relative 2023. Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 102 8.1.5 Impacts of the Telekom Slovenije Group’s operations Description of the processes to identify and assess material impacts, risks and opportunities (IRO 1) 27 The double materiality assessment (DMA) process was carried out by assessing IROs at the Group level. In cooperation and consultation with subsidiaries, we obtained all the necessary information to properly disaggregate and assess material IROs (in accordance with ESRS 1 paragraph 103). The set of relevant sustainability matters and the definition of IROs were based on: – the substantive requirements of ESRS matters, sub-matters and sub-sub-matters (as defined in ESRS 1 AR 16), – the established GRI international sustainability reporting standards, – the sustainable accounting standards issued by the SASB for the telecommunication sector, – best reporting practices in the European telecommunications sector, – identified risks and opportunities in the scope of the Telekom Slovenije Group’s continuous risk management process, – the identified impacts of the Telekom Slovenije Group on (key) stakeholders and nature, – relevant external expert and internal sources, – existing material sustainability matters, and – the Telekom Slovenije Group’s strategy and policies. Methodology and assumptions Materiality of impacts The assessment of the materiality of impacts is carried out by assessing a minimum of two to a maximum of four factors on a six-point scale, with assessments ranging from 0 to 5: • scale (from 0 meaning negligible impact to 5 meaning very strong impact), • scope (from 0 meaning negligible to 5 meaning global impact), • probability (from 0 meaning not likely to 5 certainly), and • irremediable character (from 0 meaning to 5 meaning not possible to return to previous state). Scale, scope and irremediability determine the severity of the impact. Impacts are assessed according to the type of impact: actual/potential and negative/positive (as foreseen by the ESRS, paragraphs 45 and 46), and according to the time horizon (impact that will be felt most in the short, medium or long term). Financial materiality The methodology for calculating the financial materiality of sustainability matters is based on the guidelines of ESRS 1, and also takes into account the existing methodology for assessing risks and opportunities of the Telekom Slovenije Group. Matters, i.e. identified risks and opportunities, are assessed on a five-point scale according to: • the probability of an event occurring (from 0 meaning not likely to 4 meaning almost certain), • potential/actual financial impact (from 0 meaning no impact to 4 meaning very high impact), and • the duration of the financial impact. Where both risks and opportunities are present for a particular matter, they are assessed separately. The thresholds for assessing sustainable IROs are the same as those used for assessing all risks in the Group and also have monetary values set. The latter are not disclosed in the report as they are commercially sensitive. Sustainable IROs identified through the DMA process have been added or further defined in the Group’s risk catalogue. 27 ESRS IRO-1_01 to IRO-1_15 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 103 Process of the assessment of IROs 1. The assessment of impacts was carried out in two steps. In the first step, a total of 33 in-house experts gave their views on a range of material matters and assessed the impact of the Telekom Slovenije Group on the environment and people. Of these, 28 were internal experts, members of the Corporate Sustainability Group and representatives of subsidiaries in Slovenia who cooperate with all major stakeholder groups, and five employees from the subsidiary IPKO in Kosovo. A matter was identified as material for the Telekom Slovenije Group in terms of its impact if its assessment was equal to or greater than 24. That threshold thus covers impacts of moderate scale and moderate to widespread impact, with an unlikely impact and difficult-to-mitigate consequences. In the second step, sustainability matters were assessed by stakeholders via an online questionnaire. The second step served as feedback from stakeholders as to whether the internal experts’ assessments were in line with their expectations. 2. The assessment of the financial impact of risks/opportunities was carried out through a workshop with 44 management staff and experts from all Group companies in Slovenia and Kosovo, responsible for key business functions, under the guidance of the President of the Telekom Slovenije Management Board and the Management Board member responsible for corporate sustainability. Participants identified and assessed the content of risks/opportunities. A matter was deemed material in terms of financial impact if it involves at least a moderate financial impact and the possible realisation of a risk or opportunity. 3. Evaluation and confirmation of results. The results of the assessment of impacts, risks and opportunities, which was carried out by internal experts in the previous two steps, have been reviewed and confirmed by the Corporate Sustainability Committee. The financial materiality of the topics was then further reviewed and supplemented by Telekom Slovenije's Management Board, which confirmed the final results of the double materiality. Results of double materiality assessment (SBM-3) 28 Identified impacts, risks and opportunities have been grouped into 16 material matters through the double materiality assessment process: of these, five are the highest assessed matters in terms of both financial impacts, and impacts on the environment and people – Cyber security and data security, Energy, Climate Change adaptation and mitigation, Top-quality network and service, and Talent recruitment and employee development. Out of a total of 16 material matters, 13 are ESRS matters with 26 ESRS sub-matters/sub-sub- matters, while three are specific matters outside the ESRS, i.e. under the SASB and GRI Standards – Quality of the network and services, Cyber security and data security, Support for sport, culture, science and humanitarian causes. Presented below are the Telekom Slovenije Group’s most material sustainability matters in terms of double materiality. The table shows, according to the definition, whether there is a positive/negative impact and whether there is a risk/opportunity, and where in the value chain the impacts are concentrated and their expected durations. They are displayed in chart form (matrix) according to final assessment and ranking. A description of impacts, risks and opportunities are shown alongside matter categories. 28 ESRS 2 SBM-3_01 to SBM-3_12 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 104 Concentration of IRO in the value chain Expected duration Upstr eam In- hous e activi ty Dow nstre am Short -term Medi um- term Long -term Most material sustainability matters Impact, risk and opportunity Climate change adaptation and mitigation Actual positive impact x x x x x x Risk x x x x Opportunity x x x x Energy Actual negative impact x x x x x x Risk x x x Opportunity x x x x Circular economy and waste management Potential negative impact x x x x x Opportunity x x x x Job security, working hours and decent pay Actual positive impact x x x x x Risk x x Freedom of association, collective bargaining and social dialogue Actual positive impact x x x x Risk x x Healthy and safe working environment Actual positive impact x x Risk x x Talent recruitment and employee development Potential positive impact x x Risk x x x Diversity, inclusion of employees and equal opportunities Potential positive impact x x x x Opportunity x x x Support for sport, culture, science and humanitarian causes Actual positive impact x x x x Opportunity x x x Quality of the network and services Actual positive impact x x x x x Risk x x x x Freedom of expression and privacy Potential negative impact x x Risk x x Online security Potential negative impact x x Risk x x x x Cyber security and data security Potential positive impact x x x x x x Risk x x x x x Opportunity x x x x Access to the information society Actual positive impact x x x Opportunity x x x x Corporate culture Actual positive impact x x Opportunity x x x Responsible supply chain Actual positive impact x x x Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 105 Risk x x x The majority of Telekom Slovenije Group companies operate in the telecommunications sector, with the exception of two companies: Soline and TSinpo. In accordance with ESRS 1 (paragraphs 103 and 104), we have also reviewed, identified and inventoried IROs separately at these two subsidiaries, although they do not affect the results of the DMA at the Group level due to the small proportion of the Group's operations that they account for. A financial assessment found that the IROs for TSinpo (Diversity and inclusion and Equal opportunities) are the same as the IROs at the Group level. Thus, entity-specific IROs were only identified and defined for Soline, as follows: Climate change adaptation and mitigation, Water and marine resources, Biodiversity and ecosystems and Pollution. Disclosures in connection with these matters are presented in the section 8.2.4 Biodiversity in the Sečovlje saltpans. Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 106 Illustration of the double materiality of sustainability matters Most material sustainability matters of the Telekom Slovenije Group 1 Cyber security and data security 2 Energy 3 Quality of the network and services 4 Climate change adaptation and mitigation 5 Talent recruitment and employee development Other material sustainability matters of the Telekom Slovenije Group 6 Support for sport, culture, science and humanitarian causes 7 Access to the information society 8 Circular economy and waste management 9 Online security 10 Freedom of association, collective bargaining and social dialogue 11 Corporate culture 12 Healthy and safe working environment 13 Responsible supply chain 14 Freedom of expression and privacy 15 Diversity, inclusion of employees and equal opportunities 16 Job security, working hours and decent pay Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 107 Explanation of matters assessed as less material 29 In the double materiality assessment process, we took into account as material sustainability matters (based on established thresholds) those that proved to be material in terms of their impact on the environment and people, or in terms of their financial impact on the Telekom Slovenije Group’s operations, or from both perspectives (dual materiality). Matters with no IROs and/or assessments below certain thresholds were assessed as less material: • Pollution (E2): The Telekom Slovenije Group's activities do not cause or impact pollution, nor does pollution have a material impact on the Group's operations (except for its subsidiary Soline). • Water and marine resources (E3): water and marine resources are not essential to the implementation of the Telekom Slovenije Group’s core activities (except for the subsidiary Soline), nor do our operations have any material impacts on water and marine resources. • Biodiversity and ecosystems (E4): The Telekom Slovenije Group operates in the telecommunications sector, where the use of land and water is much lower than in many other sectors. Various biodiversity parameters can be impacted along the value chain indirectly through in the purchase of products (raw materials) – electronic devices. We reduce impacts through responsible procurement practices and the promotion of a circular economy, which we define in two other sustainability matters. This topic is only material for the subsidiary Soline. • Workers in the value chain (S2): the Telekom Slovenije Group’s workers in the value chain comprise the employees of our contractual partners who sell our telecommunications services in Slovenia, where working conditions are appropriately guaranteed by law and the risk of child or forced labour by contractors is negligible. • Affected communities (S3): The Telekom Slovenije Group's activities do not have a direct impact on the economic, social, cultural, civil and political rights of the community. A positive contribution to sport, culture, science and humanities is defined in the specific sustainability topic Support for sport, culture, science and humanitarian causes. Metrics in relation to material sustainability matters (MDR-M) 30 We use standard metrics for each area to monitor the effectiveness of our actions in managing material sustainability matters. Those metrics are explained in more detail, together with the data presented. 29 ESRS IRO-2_04, IRO-2_05, IRO-2_06, IRO-2_09, IRO-2_10, E2.IRO-1_01 to 03, E3.IRO-1_01 to 02, E4.IRO- 1_01 to 16 30 ESRS MDR-M_01 to MDR-M_03 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 108 8.2 Environmental information (E) List of material requirements by disclosure 31 Section/page E1 – Climate change ESRS 2 GOV-3-E1 – Integration of sustainability-related performance in incentive schemes 8.1.2/89 E1-1 – Transition plan for climate change mitigation 8.2.1/109 ESRS 2 GOV-3-E1 – Material impacts, risks and opportunities and their interaction with strategy and business model 8.2.1/109 ESRS 2 IRO-1-E1 – Description of the processes to identify and assess material climate-related impacts, risks and opportunities 8.2.1/109 E1-2 – Policies related to climate change mitigation and adaptation 8.2.1/109 E1-3 – Actions and resources in relation to climate change policies 8.2.1/109 E1-4 – Targets related to climate change mitigation and adaptation 8.2.1/109 E1-5 – Energy consumption and mix 8.2.1/109 E1-6 – Gross Scopes 1, 2 and 3 and total GHG emissions 8.2.1/109 E2 – Pollution (Soline) E2.IRO-1 – Description of the processes to identify and assess material pollution- related impacts, risks and opportunities 8.2.4/128 E-3 – Water and marine resources (Soline) E3.IRO-1 – Description of the processes to identify and assess material water and marine resources-related impacts, risks and opportunities 8.2.4/128 E3-1 – Policies related to water and marine resources 8.2.4/128 E3-4 – Water consumption 8.2.4/128 E-4 – Biodiversity and ecosystems (Soline) E4.SBM-3 – Material IROs and their interaction with strategy and business model 8.2.4/128 E4.IRO-1 – Description of processes to identify and assess material biodiversity and ecosystem-related impacts, risks, dependencies and opportunities 8.2.4/128 E4-1 – Transition plan on biodiversity and ecosystems in the strategy and business model 8.2.4/128 E4-2 – Policies related to biodiversity and ecosystems 8.2.4/128 E4-3 – Actions and resources related to biodiversity and ecosystems 8.2.4/128 E4-4 – Targets related to biodiversity and ecosystems 8.2.4/128 E4-5 – Impact metrics related to biodiversity and ecosystems change 8.2.4/128 E-5 – Resource use and circular economy E5.IRO-1 – Description of the processes to identify and assess material resource use and circular economy-related impacts, risks and opportunities 8.2.2/146 E5-1 - Policies related to resource use and circular economy 8.2.2/146 E5-2 – Actions and resources related to resource use and circular economy 8.2.2/146 E5-3 - Targets related to resource use and circular economy 8.2.2/146 E5-5 – Resource outflow 8.2.2/146 31 ESRS IRO-2_02 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 109 8.2.1 Climate change (E1) Material impacts, risks and opportunities and their interaction with strategy and business model (SBM-3, IRO-1) 32 The Telekom Slovenije Group operates primarily in the information and communication technologies sector. Energy consumption represents the most significant environmental impact in our sector. For this reason, the most attention in the management of environmental impacts is dedicated to energy efficiency and cleaner sources of energy, which represents our greatest contribution to climate change mitigation. We do this by investing in energy-efficient equipment, purchasing electricity from low-carbon sources and reducing greenhouse gas emissions. At the same time, we encourage suppliers, producers and users to act responsibly. We involve ourselves in professional initiatives aimed at developing and communicating science- based positions on the environmental impacts of our sector. To that end, we take into account the following key guidelines: • Regular monitoring of the use of resources, in particular energy consumption and associated costs. • Ensuring the compliance of strategic and energy-related objectives with the requirements of operations and development. • Monitoring and compliance with the requirements of Slovenian and European law. • Systematically preventing and reducing impacts on the social and natural environments. In assessing the Telekom Slovenije Group’s climate-related IROs, we first and foremost reviewed all activities and processes that are a significant source of greenhouse gases. We focused on the short and medium term, and on activities that we know and understand well. We have less insight into potential risks in the value chain that could affect us indirectly. Based on available information and projections, we believe it unlikely that risks in the value chain would pose a real threat to our operation. We believe that our identified impacts and risks do not have a direct impact on our business model or strategy in the short or medium term. Below, we describe the highest-assessed impacts, risks and opportunities. More efficient energy consumption and the transition to renewable energy sources are crucial for combating climate change and reducing our overall environmental footprint. We have identified transition risk as the most material risk. Although network equipment and data centres are becoming more energy efficient, overall energy consumption is increasing due to the expansion of the telecommunications infrastructure and the increase in data traffic, which can lead to higher operating costs. Extreme weather events related to climate change are becoming more frequent over time. For this reason, the Group also faces increasing physical threats to its network infrastructure, which is of systemic importance, and if those threats are realised, they could disrupt the wider economy. This can lead to the loss of revenues and unplanned capital expenditure to repair damaged or compromised equipment. The evaluation of climate-related threats is based on the analysis of Scope 1, 2 and 3 emissions, and on data from suppliers and users and previous cases of damage. It takes into account the probability, duration and scale of impacts, as well as the transition scenarios developed by sectoral associations, in line with global emission reduction targets. To that end, we focus on acute water-related (flooding) and temperature-related (heat waves, ice storms, etc.) threats. We have not yet analysed resilience to climate scenarios due to their currently low financial impact on our operations. Extreme weather events are, however, addressed and managed through the business continuity management system. We have also identified opportunities and potential positive impacts on climate change mitigation. Through our portfolio of ICT solutions for users (smart infrastructure services, smart 32 ESRS E1.SBM-3_01, E1.SBM-3_07, E1.IRO-1_01 to E1.IRO-1_16 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 110 parking, energy management of buildings, etc.), we promote and contribute to the reduction of the energy consumption of residential and business users and local communities. The Telekom Slovenije Group uses a methodology for calculating total GHG emissions in accordance with the generally accepted GHG Protocol Standard. Transition plan for climate change mitigation (E1-1) 33 The key elements of the decarbonisation strategy are already included in the Strategic Business Plan for the period 2024 to 2028, but a comprehensive transition plan has not yet been formally adopted and is planned for 2027 at the latest. Our climate change adaptation strategy currently focuses on our own work and is based on a multi- phased approach. The primary focus is on increasing the energy efficiency of the network infrastructure, buildings and vehicle fleet. The next steps are to use cleaner, low-carbon energy sources and to set up our own solar power plants. We dedicate a great deal of attention to the possibility of concluding long-term power purchasing agreements (PPAs) that involve renewable energy sources. The remainder of emissions that cannot be neutralised through the above-described measures will be neutralised from 2028 on through high-quality active carbon removal projects, either on our own or with partners. Due to the specificities of certain subsidiaries, the individual steps of this approach are tailored as required to each Group company, as explained in more detail below. Telekom Slovenije Group's approach to climate change mitigation and decarbonisation The decarbonisation strategy relates to Scopes 1 and 2 of the GHG Protocol and is based on scientific evidence from the SBTi recommendations for the ICT sector, which are in line with efforts to limit global warming to 1.5 degrees Celsius under the Paris Agreement. During the next year, we will expand and supplement the strategy to the most material Scope 3 categories (lower and higher up the value chain), depending on the availability, accessibility and credibility of data regarding the value chain. We will also set targets for Scope 3 based on scientific evidence relevant to our sector, with the aim of achieving climate neutrality by 2050. In connection with the above-described strategy, we are also planning the necessary financial resources, as evident in the financial section of the annual report, as well as human resources with the relevant competences. All elements of the above-presented strategy are an integral part of the business strategy and were approved in 2023 as part of the revised Strategic Business Plan of Telekom Slovenije Group for the period 2024 to 2028. It was approved by the Sustainability Operations Committee, the Company’s Management Board and the Supervisory Board based on a proposal from the Supervisory Board’s Audit Committee. Policies and actions related to climate change (E1-2, E1-3) 34 We control and manage the environmental impacts of our business processes through the established environmental management system (EMS) in accordance with the requirements of the 33 ESRS E1-1_01 to 03, E1-1_13 to 16 34 ESRS E1-2_01 to 04, E1-3_01, E1-3_03, E1-3_04 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 111 ISO 14001 standard. We manage energy efficiency through the efficient energy management system (EEMS), which is in line with the requirements of the ISO 50001 standard. We have adopted an environmental Statement and the statement of the energy efficiency of Telekom Slovenije, d.d., as well as the Quality and Environmental Policy of GVO. 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 the network of Telekom Slovenije, GVO and IPKO, and introducing the principles of the circular economy and sustainable mobility. We select electricity suppliers with certificates of low-carbon sources, and we are continuing with projects to build our own solar power plants and energy storage facilities at companies in Slovenia and Kosovo. As the final step towards achieving carbon neutrality under Scopes 1 and 2, the remaining emissions that cannot be reduced will be offset by verified carbon removal projects from 2028 on. In addition to reducing the impacts of our own operations, we are contributing to the green transition of the economy and of society as a whole through ICT services and solutions such as smart networks, smart buildings, smart logistics and industrial processes that can play an important role in considerably reducing greenhouse gas emissions, thereby mitigating and preventing the effects of climate change. Precise data regarding positive impacts have not yet been measured but are part of plans for the coming years. 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 broadly established initiatives and respond to them promptly. Metrics and targets (E1-4) 35 Our main climate change targets are linked to the decarbonisation approaches mentioned above. There is an overall carbon neutrality target for Scopes 1 and 2 in 2028, and we are monitoring progress towards this target on an annual basis. We have not yet set detailed targets for the individual areas that have the greatest impact on achieving this target, as analyses are ongoing and quantifying specific sustainability impacts may be difficult due to the complexity of the data and methodology. Our transition towards sustainable operations is at an early stage as we are currently focused on integrating the key elements of our decarbonisation strategy, so specific, measurable targets will be defined at a later stage. We recognise that our biggest impact is electricity consumption. Managed growth in total electricity consumption is our overarching energy objective, integrated into the personal goals at the annual interviews of the responsible organisational unit. The energy efficiency management system is integrated into regular work processes. Other objectives are aimed at increasing the energy efficiency of own real estate and reducing car fleet emissions, as well as securing electricity from low-carbon sources. We are also continuing to install our own solar power plants. We regularly monitor the consumption of electricity and other energy products, as well as the amount of electricity we generate from our own renewable sources. Despite the current lack of formally defined measurable targets, we are effectively monitoring and evaluating the progress of our sustainability policies through regular data collection and analysis, we are preparing for the implementation of software solutions and tools that allow us to accurately monitor ESG performance indicators, we regularly conduct internal audits, and we benchmark our progress against industry standards and best practices to help us identify areas for improvement. We met nearly all strategic and annual objectives relating to efficient energy consumption again in 2024. We reduced electricity consumption in the fixed segment of the network by optimising equipment and premises at functional locations. Energy consumption will increase until the end of 2026, primarily due to the upgrading of the 5G network. 35 ESRS E1.MDR-T_01, E1-4_01 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 112 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. We have also installed additional solar panels. IPKO has adopted several measures to reduce electricity consumption, including installing more energy-efficient air-conditioning, replacing lighting fixtures with LED lamps and installing solar panels at its branches. 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. Energy report (E1-5) Our work in the field of energetics is guided also by the energy efficiency management system (EEMS), compliant with the requirements of the ISO 50001 standard. For more than a decade, we were successful in reducing our overall energy consumption. Due to fact that we have our system certified, we fulfil the conditions for conducting the energy reviews by our own experts. This fact alone enables us to save at least EUR 40,000 every year. With more than 220 energy reviews completed, we are the leading company in Slovenia in the field. In 2024, we carried out all internal energy reviews for buildings for which the validity of the previous ones expired or where major civil works were carried out. Energy consumption in the Telekom Slovenije Group 36 Illustrated below is our own energy consumption by source, following the disclosure requirements in the data point: E1-5 – Energy consumption and mix. 36 ESRS E1-5_01-09, ESRS E1-5_12-17, GRI 302-1, SASB: TC-TL-130a.1 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 113 Energy consumption and mix 2023 2024 (1) Fuel consumption from coal and coat products in MWh 0 0 (2) Fuel consumption from crude oil and petroleum products in MWh 15,823 15,906 (3) Fuel consumption from natural gas in MWh 931 960 (4) Fuel consumption from other fossil sources in MWh 0 0 (5) Consumption of purchased or acquired electricity, heat, steam or cooling from fossil sources in MWh 53,742 27,290 (6) Total fossil energy consumption in MWh (calculated as the sum of lines 1 to 5) 70.495 44.156 Share of fossil sources in total energy consumption in % 73% 44% (7) Consumption from nuclear sources in MWh 11.114 49.119 Share of consumption from nuclear sources in total energy consumption in % 11% 48% (8) Fuel consumption for renewable sources, including biomass (also comprising industrial and municipal waste of biological origin, biogas, renewable hydrogen, etc.) in MWh 0 0 (9) Consumption of purchased or acquired electricity, heat, steam, and cooling from renewable sources (MWh) 15,067 7,477 (10) Consumption of self-generated non-fuel renewable energy (MWh) 411 528 (1 Total renewable energy consumption (MWh) (calculated as the sum of lines 8 to 10) 15.479 8.005 Share of renewable sources in total energy consumption (%) 16% 8% Total energy consumption (MWh) (calculated as the sum of lines 6, 7 and 11) 97.088 101.279 We took into account the quantities of energy for own use, as shown in the carbon footprint assessment under Scopes 1 and 2. The largest increase can be seen in the category of consumption from nuclear sources, as Telekom Slovenije concluded a contract in 2024 for the supply of electricity with certificates of origin (POI) from low-carbon sources for nuclear energy. Electricity 37 Electricity is our most important energy source, both in terms of quantity and cost. After more than a decade of decline, electricity consumption increased by 3% at the Group level and 3.7% at the parent company level in 2024 relative to the previous year. The main reason was the implementation of additional base stations to build the 5G network. A little more than one fifth of electricity consumption is accounted for by other users of our real estate, i.e. subsidiaries, regulated co-locations, other lessees of our premises, who have the cost of electricity and heating included in the price per m 2 of rented space. Production by Telekom Slovenije’s own solar power plants accounted for around one half of a percent of total electricity consumption (around 300 thousand kWh). In 2024, Telekom Slovenije began building several solar power plants with a total installed capacity of 1.49 GW. This will help us achieve half of our target by 2027, the generation of 5% of electricity consumed from own sources. 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 close to 37 GRI 302-4 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 114 12,500 data entities. We continuously upgrade and supplement the system through the development of the network. Assessment of carbon footprint (E1-6) 38 In 2023, we stepped up our activities to developing a decarbonisation strategy for the 2024 to 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 the period 2024 to 2028, which was adopted at the end of 2023, sets the ambitious target of carbon neutrality under Scopes 1 and 2 by 2028. In that period, we will focus heavily on securing cleaner electricity and installing our own solar power plants. The positive impact 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 invested in our own solar power plants. Independently of this, we continued activities to further increase our energy efficiency, mainly by upgrading the network and actively managing our property and vehicle fleet. These activities continued in 2024. In light of efficient energy use and environmental concerns, we raised awareness among employees about energy conservation and the importance of sustainable behavior. The carbon footprint was calculated in accordance with the methodology set out in the international Greenhouse Gas Protocol (Corporate Accounting and Reporting Standard and Corporate Value Chain (Scope 3) Accounting and Reporting Standard). We follow the latest industry guidelines, such as Scope 3 Guidance for telecommunications operators. The calculation includes the emission scopes, categories or activities presented below: • Scope 1: Direct emissions from the consumption of fuels (e.g. heating and company vehicles, diesel electricity generators) and fugitive emissions from electricity and air conditioning systems (HVAC). • Scope 2: Indirect emissions from consumed electricity and heat. In the baseline year of 2021, indirect emissions from electricity consumption represented the most significant environmental impact for Telekom Slovenije Group. Through various measures aimed at achieving high energy efficiency and selecting cleaner energy sources, we have been successfully mitigating this impact over the years. For most quantities of the electricity and heat consumed, we use the market-based method or data regarding the emission factors of energy or heat suppliers known at the time of publication of the annual report. Telekom Slovenije made significant progress in reducing Scope 2 emissions in 2024 by primarily purchasing electricity with certificates of origin from low-carbon sources, as already mentioned in previous points. Given the emission control factor set (carbon footprint (Scopes 1+2)) in t CO 2eq per employee, we can confirm a positive trend in the reduction of emissions relative to the baseline year of 2021. 39 Through a positive trend in the reduction of emissions, we are also pursuing the target of approaching carbon neutrality under Scope 1 and Scope 2 in 2028. We took a more in-depth approach to the analysis of Scope 3 in 2024. The Telekom Slovenije Group can impact the entire value chain, as the ICT sector is recognised as an enabler for the potential reduction of the CO 2 emissions of other sectors. 38 ESRS E1-6_01-23, E1-7_20, GRI 3-3, 305-1, 305-2, 305-3 39 The total value according to the market- and location-based methods is included in the total value of Scopes 1 and 2 emissions and the carbon footprint indicator per employee. Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 115 Scope 3 includes emissions that result from an organisation’s activities but are generated in its broader value chain, both in the supply chain and by customers. This is the most comprehensive scope of emissions and the most time-consuming process in terms of obtaining data for assessment. The GHG Protocol envisages a breakdown of emissions into 15 different categories. In the past, Telekom Slovenije has reported less material emission categories under this scope, which could be estimated on the basis of available data. In 2024, we took a more comprehensive approach to assessing the materiality of categories. We assessed the most material categories based on available sectoral data and guidelines for telecommunication operators issued by the GSMA, GeSI and ITU. These are prioritised because of their importance for the Company’s overall environmental impact. The most material categories are: purchased goods and services (category 1); capital goods (category 2); consumption of (sold) products (category 11); and leased assets (category 13). We have added more material categories to the categories already reported in Scope 3, as follows: 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 at users). In 2024, we estimated the balance of Telekom Slovenije’s purchases of goods and services and investments (categories 1 and 2) not covered in previous years. This was done using a hybrid approach, combining spend-based and product-specific calculation methods. We will gradually transfer the relevant assessment approaches to Telekom Slovenije Group’s other subsidiaries. The estimated emissions data obtained will serve as a starting point for further analysis, the confirmation of the baseline year, the preparation of the carbon footprint reduction plan and the setting of targets, including in Scope 3. Presented below is a table of the Telekom Slovenije Group’s carbon footprint according to the disclosure requirements in the data point: E1-6 – Gross Scopes 1, 2 and 3 and total GHG emissions Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 116 Gross Scopes 1, 2, 3 and total GHG emissions of the Telekom Slovenije Group Retrospective 2021 2023 2024 % N/ N-1 Scope 1 GHG emissions Gross GHG emissions Scope 1 (t CO 2 eq) 4,919 4,549 4,838 106% Percentage of Scope 1 GHG emissions from regulated emission trading schemes (%) 0 0 0 - Scope 2 emissions Gross location-based Scope 2 GHG emissions (in t CO 2 eq) 28,797 24,520 24,343 99% Gross market emissions of GHG Scope 2 (in t CO 2 eq) 45,490 20,200 3,849 19% Significant scope 3 GHG emissions Total gross indirect GHG emissions (Scope 3)(in t CO 2 eq) 27,159 24,329 44,010 181% 1 Purchased goods and services 10 182 17,637 - 2 Capital goods 0 0 5,449 - 3 Fuel and energy-related activities (not included in Scope1 or Scope 2) 1,100 1,016 3,919 386% 4 Upstream transportation and distribution 0 0 0 - 5 Waste generated in operations 205 124 178 144% 6 Business traveling 11 45 59 131% 7 Employee commuting 1,400 1,751 2,130 122% 8 Upstream leased assets leased 378 174 0 0% 9 Downstream transportation and distribution 0 0 0 - 10 Processing of sold products 0 0 0 - 11 Use of sold products 0 0 1,283 - 12 End-of-life treatment of sold products 0 0 74 - 13 Downstream leased assets 24,055 21,037 13,278 63% 14 Franchises 0 0 0 - 15 Investments 0 0 0 - Total GHG emissions Total GHG emissions (location-based) (in t CO 2 eq) 60,876 53,398 73,191 137% Total GHG emissions (market-based) (in t CO 2 eq) 77,568 49,078 52,696 107% Within Scope 3, we assessed the following non-material categories for Telekom Slovenije, which are not currently reported: transport and distribution of products (Categories 4 and 9); processing of products sold (Category 10); franchises (Category 14); and investments (Category 15). Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 117 In the context of the additional analysis of the relevance of the categories to subsidiaries, we allow for the possibility of supplementing and expanding categorisation to those categories that are not currently relevant. Changes in methodology compared to the baseline year: In the past, we treated electricity consumption used by other tenants at co-locations (examples of sharing of base station infrastructure and common areas or co-locations) as out of scope, as we did not treat this as our organisation’s emissions, nor as Scope 3 (Category S3-13 13 Downstream leased assets). In 2024, we adjusted the methodology to disclose these quantities under that category. We did not adjust emissions in the baseline year, as we do not consider it material in Scope 3. From category S3-8, we moved emissions from the categories work from home, leasing of electric vehicles and overnight accommodations to S3-6 and S3-7. The change is only in the context of categorisation. No baseline year recalculation was made for the emissions of the additional Scope 3 categories (S3- 1, S3-2) because we deemed it non-material. If targets are set for Scope 3, we will adjust those values. Vehicle fleet The Telekom Slovenije Group began updating fleet management in 2024 based on sustainable mobility, digitalisation and cost optimisation. The main focuses are on reducing CO 2 emissions, the transition to environmentally friendly vehicles and improving fleet utilisation. We have automated processes and improved real-time data analysis by introducing advanced digital tools for monitoring and managing vehicles. These solutions help to reduce operating costs and the Company’s carbon footprint. The strategy combines flexibility, efficiency and sustainability to support the achievement of our environmental and business objectives. Real estate management The Telekom Slovenije Group continued to implement its real estate management strategy in 2024 with the aim at optimising costs, increasing spatial efficiency and the value of its real estate portfolio. We also focused on designing, developing and creating a pleasant and productive work environment, and reducing our carbon footprint through energy renovation measures. Electromagnetic radiation (EMR) 40 When the mobile network (4G and 5G) is expanded or upgraded, we commission EMR measurements from certified institutions in Slovenia. A total of 102 EMR measurements were performed for Telekom Slovenije in 2024; this number included 78 measurements for the 5G network. Radiation was up slightly at base stations that we upgraded. However, the results indicated that, even in the worst case, measured values in human-accessible areas were more than four times lower than the strict thresholds valid in Slovenia. They are also 10 times lower than the values set out in the ICNIRP’s guidelines and the EU’s recommendations. Average exposure was significantly lower and amounted to just a few percent of the thresholds for level I radiation protection areas in accordance with the Decree on Electromagnetic Radiation in the Natural and Living Environment. 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 cooperation with Forum EMS, the population is informed about radiation and other environmental impacts through brochures at Telekom Slovenije’s points of sale. In the scope of the e-card EMS project, Forum EMS developed a mobile application that allows the general public to access data regarding harmful impacts on the environment due to high-frequency EMR and the effect of exposure due to the use of mobile phones. The subsidiary IPKO also performs EMR measurements in Kosovo when new base stations are installed. 40 GRI PA8, GRI 2-23, 2-24, 2-27 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 118 8.2.2 Circular economy (E5) Identification of impacts, risks and opportunities (IRO-1) 41 Waste can have significant negative impacts on the environment and on human health if it is not handled properly. These impacts often go beyond the area where the waste is generated or disposed. Given the activities carried out by the Telekom Slovenije Group, the largest proportion of waste is accounted for by construction waste from the construction of the telecommunications network, and electronic waste from used mobile phones and other electronic equipment. We include the employees of all Group companies, authorised waste transporters and the relevant government authorities (ARSO) in the identification and management of the above-described impacts. Policies related to the circular economy (E5-1) 42 The Telekom Slovenije Group integrates sustainability into all phases of its operations, as the Group is aware that it can make a significant contribution to environmental protection by managing resources responsibly. Our goal is to create a sustainable cycle where materials and products are given new life in a new form before they become waste. By introducing the principles of the circular economy, we are continuously improving the ways we manage the waste equipment we receive back from users, as we believe that extending the life of equipment leads to more sustainable and efficient operations. Telekom Slovenije has implemented an environmental management system (EMS) that complies with the requirements of the international recommendation or Slovenian SIST EN ISO 14001: 2015 standard. We adopted general information regarding Telekom Slovenije’s environmental management system. We also have a waste management plan and separate waste collection system in place, in line with the valid Decree on Waste. Our subsidiaries IPKO, Soline and GVO have also introduced the principles of the circular economy. Actions and resources in relation to circular economy (MDR-A) 43 To ensure the efficient collection and handling of waste, Telekom Slovenije has set up special collection points, so-called eco-islands, where various types of waste are separated and handed over to authorised partners with the relevant certificates and authorisations. These partners ensure that the material is broken down into its basic components and prepared for re-use in a consistent way. Unusable components are disposed of in a way that is as environmentally neutral as possible, which further contributes to reducing the Company's environmental footprint. At Telekom Slovenije’s points of sale, we offer customers the opportunity to drop off packaging waste and used electronic equipment such as mobile phones, tablets and computers. Returned CPE is thoroughly inspected, cleaned and prepared for further use, in cooperation with the subsidiary TSinpo. The share of reused CPE-modems in Telekom Slovenije's customer base was 40% in 2023 and 47% in 2024. IPKO also has a CPE reuse system in place. In 2024, 44.9% of CPE was returned for reuse. Some plastic packaging is converted into stretch foil, which is used in warehouses to wrap materials and equipment on pallets. We thus contribute our part to a sustainable economy where used materials are reused in new cycles, while we encourage users to actively contribute to reducing the environmental impact of waste. IPKO collects waste separately, and that waste is collected by a local licensed handler. In the construction and maintenance of telecommunications networks by GVO, excavations are carried out for the laying of telecommunications cables or other cable infrastructure (cable ducts, and plastic or HDPE pipes). In the case of excavation, the excavated soil is primarily used for backfilling, with any excess material handed over to licensed handlers. Where possible, excavation is carried 41 ESRS E5.IRO-1_01 and 02, GRI 3-3, 306-1, 306-2, 306-3 42 ESRS E5-1_01 and 02, E5.MDR-P 43 ESRS E5.MDR-A_01 to 12 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 119 out using trenching machines or rotary tillers, which reduce the quantity of material excavated and thus the impact on the environment. Excavations on roadways or sidewalks generate waste asphalt and concrete, which is also sent for further processing to authorised handlers. These materials thus can be reused, and the use of new natural resources reduced as a result. Targets related to the circular economy (E5-3) 44 Companies in Slovenia are reducing the amount of waste going to landfills by consistently separating waste and shipping it over to authorised partners for recycling and recovery. By refurbishing and reusing CPE, we extend the life of equipment and materials and reduce electronic waste. Our aim is to ensure that all returned equipment that is functionally suitable for further use is technically and visually checked and refurbished, and returned to the process as usable stock for installation by users. The Telekom Slovenije Group regularly monitors the proportion of reused CPE and strives to maximise it. Resource outflow (E5-5) 45 Telekom Slovenije disposed of 3,508 tonnes of waste in 2024, with construction waste representing the largest proportion of total waste. More than 90% of all waste is recycled or reused. In the construction of networks, we succeeded in reusing much of the soil from excavations as backfill material, which further reduces the environmental impact. Electronic and electrical equipment is broken down into its basic components, yielding about 20% plastic and 75% metal, while less than 5% of these materials are destined for incineration. Most of the remaining waste (around 80%) is processed into basic raw materials, while around 20% is converted into energy sources. There was a change in waste collection contractor in the waste disposal process at IPKO, and thus in the way quantities are reported. Instead of the previous estimates, the contracted volume is now taken into account. All waste for energy recovery is handed over to licensed collectors with the appropriate environmental standards, who meet the highest environmental requirements in line with European legislation. Quantities of waste Type of waste (in tonnes) Telekom Slovenije Group 2024 2023 Index 24/23 Hazardous waste 82 - - Non-hazardous waste 3.770 - - TOTAL 3.852 4,103 94 * 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 46 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 also sign documents electronically in their work. A large proportion of agreements and other documents are sent to users in electronic form after they are signed. Telekom Slovenije has already digitalised more than 75% of all incoming documents. 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 44 ESRS E5.MDR-T_01 to 13, E5-3_07 and 13 45 ESRS E5-5_07 to 13 46 GRI TA2, SDG 12, 306-2 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 120 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. A total of 66.37% of invoices were received in electronic form in 2024, an increase relative to 2023. 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 12 tonnes of office paper in 2024, which was 8% less than in 2023. 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 120 tonnes of paper, which was a fall of 7% on the 2023 figure. We made planners out of recycled paper and presented them to Telekom Slovenije employees. We also produced new writing pads that will be used for promotional purposes at various corporate events and training courses. We thus gave a second life to the waste paper that all our employees collected throughout the year. 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. The percentage of invoices issued in electronic form rose to 41% of all Telekom Slovenije’s invoices in 2024. Sustainable gifts for business partners For the 2024 year-end gift, we prepared a special collection that we called Always for the Better. It was developed with the close cooperation of Telekom Slovenije, Soline and the subsidiary TSinpo. The collection includes Soline products, while gift packaging is sustainable. The cardboard sleeves manufactured at the TSinpo company are made from 100% recycled cardboard. The lids, which are made from recyclable LDPE, are also environment-friendly. In cooperation with Reusable Technologies®, we produced a promotional USB key made from waste Slovenian wood. The promotional USB key is entirely manufactured in Slovenia and a life-cycle analysis (LCA) confirms savings of 5.3 kg of environmentally hazardous emissions compared to similar products. This product also uses sustainable packaging that is free of adhesives and plasticised paper. 8.2.3 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, 2021/2178, 2023/2485 and 2023/2486) 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. The aim of the Taxonomy Regulation is to encourage investment in environmentally sustainable activities. Mandatory reporting should ensure transparency and uniform metrics through sustainable financial indicators. A taxonomy-eligible economic activity is an economic activity described in delegated acts that supplement the Taxonomy Regulation, irrespective of whether the defined economic activity meets any or all of the technical screening criteria set out in those delegated acts. A taxonomy-aligned Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 121 economic activity is an economic activity that is in line with the technical screening criteria defined in the Climate Delegated Act. Approach for capturing and presenting data for 2024 The Telekom Slovenije Group is in the process of inventorying activities that could meet taxonomy requirements. Reporting practices in this area are still being developed, so a comprehensive review of activities at the Telekom Slovenije Group level according to all six environmental goals has not yet been carried out. 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 continue to refine our reporting systems and reports in line with the recommendations of regulators, so that they will provide more comprehensive disclosures as required by the Delegated Regulation. Description of taxonomy-eligible activities The list of economic activities described in the Taxonomy Regulation and delegated acts covers, to a very limited extent, the Telekom Slovenije Group’s core business activities. The majority of business activities are not subject to the Taxonomy Regulation. Thus, significant investments in the 5G infrastructure and fibre optic network are not deemed eligible. For the telecommunications and broader ICT sector, we have identified activities in data centres, and the development and use of ICT solutions to observe or mitigate climate change according to the taxonomy. 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. Other activities of Telekom Slovenije Group companies are currently not subject to reporting under the EU Taxonomy. For this reason, proportions of turnover and CAPEX are relatively small in relation to the total volume. We classify the following under revenue-generating activities: Activity Description of revenue-generating activities Contribution to goal 8.1 Data processing, hosting and related activities The Telekom Slovenije Group offers equipment rental and data centre services, as well as aaS business services. Climate change mitigation 8.2 Data-driven solutions for GHG emissions reductions The Telekom Slovenije Group develops services based on IoT solutions (e.g. environmental measurements, digitalisation platform, remote meter reading, video identification, etc.). Climate change mitigation 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. 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. Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 122 Investments directly linked to taxonomy-eligible economic activities are classified in accordance with the delegated act 2023/2486: Activity CAPEX (c) activities of the Telekom Slovenije Group Contribution togoal 7.4 Installation, maintenance and repair of charging stations for electric vehicles in buildings (and parking spaces attached to buildings) The Telekom Slovenije Group purchases equipment and services from companies that provide installation, maintenance and repair services for e-charging equipment. Climate change mitigation 7.6 Installation, maintenance and repair of renewable energy technologies The Telekom Slovenije Group purchases equipment and services from companies that provide installation, maintenance and repair services for solar power plants. Climate change mitigation Activity CAPEX (a) activities of the Telekom Slovenije Group Contribution to goal 8.1 Data processing, hosting and related activities The Telekom Slovenije Group purchases data centre equipment and services for its maintenance (software upgrades). Climate change mitigation 8.2 Data-driven solutions for GHG emissions reductions The Telekom Slovenije Group purchases services from companies that develop new ICT solutions. Climate change mitigation In addition to previously described activities 8.1 and 8.2, the following activities are also classified as investments directly related to taxonomy-eligible economic activities: 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). 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. In certain cases, specific business activities could be allocated to more than one activity under the taxonomy. All Telekom Slovenije Group activities that are taxonomy-eligible currently contribute only to the environmental objective of climate change mitigation. This rules out double counting. Double counting was also avoided by allocating OPEX or CAPEX values to the main activity on the basis of the majority principle. Reporting is in line with the consolidated data of the Telekom Slovenije Group. Assessment of taxonomy-aligned activities For the activities that we identified as taxonomy-eligible, there are thresholds for assessing the substantial contribution to alignment. 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. The Telekom Slovenije Group will follow these regulations and delegated acts, and will establish a working group to assess alignment in the coming years. For these reasons, none of the activities currently meet the criteria for taxonomy-alignment for the 2024 reporting year. Description of the bases (denominator) for the composition of the KPIs Turnover, CAPEX and OPEX are calculated from the indicators described below. The following categories were taken into account in the denominator: Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 123 Turnover: total operating revenue (sales revenue) is taken into account. Turnover (in EUR thousand) 2024 2023 Revenues from services rendered 614,611 597,585 Sales revenue – goods 97,831 97,328 Total sales revenue 712,442 694,913 Annual Report of the Telekom Slovenije Group and Telekom Slovenije, section 9.2, Note 7: Sales revenue. CAPEX: takes into account purchases of intangible assets and property, plant and equipment, increases in assets under lease and other investments. CAPEX in EUR thousand 2024 2023 Telekom Slovenije Group 218,992 188,037 OPEX: only certain categories are included in total operating expenses (OPEX), such as: material costs, subcontracted services, maintenance of property, plant and equipment, and the costs of leases of property, plant and equipment (short-term leases). OPEX (in EUR thousands) 2024 2023 Costs of materials 1,591 1,593 Costs of subcontractors 21,494 19,062 Maintenance of property, plant and equipment 20,837 20,773 Leasing of property, plant and equipment 1,527 1,326 Total included in OPEX for Telekom Slovenije 45.449 42.754 Only Telekom Slovenije is included in the OPEX denominator, as consolidation is not done at the level of individual accounts. The numerator of all three indicators, revenue, OPEX and CAPEX, includes the values related to the taxonomy-eligible activities. The Telekom Slovenije Group’s annual report is prepared in accordance with the International Financial Reporting Standards (IFRS), as explained in section 9 of the financial report. Key performance indicators – EU Taxonomy Below we present 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. Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 124 Proportion of turnover from products and services associated with taxonomy-aligned economic activities – disclosures of the Telekom Slovenije Group for 2024 Financial year 2024 Year Substantial Contribution Criteria DNSH (‘Do no significant harm’) Criteria Economic Activities (1) (2) Designations (3) Value of turnover (4) Proportion of turnover 2024 (5) Climate change mitigation (6) Climate change adaptation (7) Water and marine resources (8) Circular economy (9) Pollution (10) Biodiversity and ecosystems (11) Climate change mitigation (12) Climate change adaptation (13) Water and marine resources (14) Circular economy (15) Pollution (16) Biodiversity and ecosystems (17) Minimum safeguards Taxono my- aligned proportio n of turnover for 2023 (20) Cat egor y ena blin g acti vity (21) Cat egor y tran sitio nal acti vity in EUR % YES; NO; N/EL YES; NO; N/EL YES; NO; N/EL YES; NO; N/EL YES; NO; N/EL YES; NO; N/EL YES /NO YES /NO YES /NO YES /NO YES /NO YES /NO YES /NO % E T A.) Taxonomy-eligible activities A.1 Environmentally sustainable activities (Taxonomy-aligned) Total A.1 Turnover of environmentally sustainable activities (Taxonomy-aligned) 0 0.00% 0.00% N/E L N/ E L N/ E L N/ E L N/ E L N O N O N O N O N O N O N O 0.00% Of which enabling 0 0.00% 0.00% E Of which transitional 0 0.00% 0.00% T A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) 8.1 Data processing, hosting and related activities CCM 8.1 327,058 0.05% 0.05% EL N/ E L N/ E L N/ E L N/ E L 0.06% 8.2 Data-driven solutions for GHG emissions reductions CCM 8.2 7,084,818 0.99% 0.99% EL N/ E L N/ E L N/ E L N/ E L 0.99% Total A.2 Turnover of Taxonomy-eligible but not environmentally sustainable activities 7,411,876 1.04% 1.04% 0.00 % N/ E L N/ E L N/ E L N/ E L 1.05% Total (A.1 + A.2) 7,411,876 1.04% 1.04% 0.00 % N/ E L N/ E L N/ E L N/ E L 1.05% B.) Taxonomy-non-eligible activities Turnover of Taxonomy-non- eligible activities (B) 705,030,393 98.96% Total turnover (A+B) 712,442,269 100.00% Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 125 Proportion of capital expenditure (CAPEX) from products or services associated with taxonomy-aligned economic activities – disclosures of the Telekom Slovenije Group for 2024 Financial year 2024 Year Substantial Contribution Criteria DNSH (‘Do no significant harm’) Criteria Economic Activities (1) (2) Designations (3) Value of CAPEX (4) Proportion of CAPEX (5) Climate change mitigation (6) Climate change adaptation (7) Water and marine resources (8) Circular economy (9) Pollution (10) Biodiversity and ecosystems (11) Climate change mitigation (12) Climate change adaptation (13) Water and marine resources (14) Circular economy (15) Pollution (16) Biodiversity and ecosystems (17) Minimum safeguards (19) Proportio n of taxonomy -aligned investme nts for 2023 (20) Category enabling activity (21) Categor y transitio nal activity in EUR % YES; NO; N/EL YES; NO; N/EL YES; NO; N/EL YES; NO; N/EL YES; NO; N/EL YES; NO; N/EL YES/ NO YES/ NO YES/ NO YES /NO YES /NO YES /NO YES /NO % E T A.) Taxonomy-eligible activities A.1 Environmentally sustainable activities (Taxonomy-aligned) Total A.1 CAPEX from environmentally sustainable activities (Taxonomy-aligned) 0 0.00% 0.00% N/EL N/EL N/EL N/EL N/EL NO NO NO NO NO NO NO 0.00% Of which enabling 0 0.00% 0.00% E Of which transitional 0 0.00% 0.00% T A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) 7.4 Installation, maintenance and repair of charging stations for electric vehicles in buildings (and parking spaces attached to buildings) CCM 7.4 18,606 0.01% 0.01% N/EL N/EL N/EL N/EL N/EL 0.02% 7.6 Installation, maintenance and repair of renewable energy technologies CCM 7.6 564,870 0.26% 0.26% N/EL N/EL N/EL N/EL N/EL 0.05% 8.1 Data processing, hosting and related activities CCM 8.1 1,784,517 0.81% 0.81% N/EL N/EL N/EL N/EL N/EL 0.90% 8.2 Data-driven solutions for GHG emissions reductions CCM 8.2 11,339 0.01% 0.01% N/EL N/EL N/EL N/EL N/EL 0.04% Total A.2 CAPEX from activities that are taxonomy eligible but are not environmentally sustainable 2,379,332 1.09% 1.09% 0.00% N/EL N/EL N/EL N/EL 1.01% Total (A.1 + A.2) 2,379,332 1.09% 1.09% 0.00% N/EL N/EL N/EL N/EL 1.01% B.) Taxonomy-non-eligible activities CAPEX from Taxonomy-non-eligible activities (B) 216,613,026 98.91% Total CAPEX (A+B) 218,992,359 100.00% Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 126 Proportion of operating expenses (OPEX) in connection with taxonomy-aligned economic activities – disclosures of the Telekom Slovenije Group for 2024 Financial year 2024 Year Substantial Contribution Criteria DNSH (‘Do no significant harm’) Criteria Economic Activities (1) (2) Designations (3) Value of OPEX (4) Proportion of OPEX (5) Climate change mitigation (6) Climate change adaptation (7) Water and marine resources (8) Circular economy (9) Pollution (10) Biodiversity and ecosystems (11) Climate change mitigation (12) Climate change adaptation (13) Water and marine resources (14) Circular economy (15) Pollution (16) Biodiversity and ecosystems (17) Minimum safeguards (19) Proportio n of taxonomy -aligned investmen ts for 2023 (20) Catego ry enablin g activity (21) Categ ory transit ional activit y in EUR % YES; NO; N/EL YES; NO; N/EL YES; NO; N/EL YES; NO; N/EL YES; NO; N/EL YES; NO; N/EL YES /NO YES /NO YES /NO YES /NO YES /NO YES /NO YES/ NO % E T A.) Taxonomy-eligible activities A.1 Environmentally sustainable activities (Taxonomy-aligned) Total A.1 OPEX of environmentally sustainable activities (Taxonomy-aligned) 0 0.00 % 0.00% N/EL N/EL N/EL N/EL N/EL N O N O N O N O N O N O N O 0.00% Of which enabling 0 0.00 % 0.00% E Of which transitional 0 0.00 % 0.00% T A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) 7.4 Installation, maintenance and repair of charging stations for electric vehicles in buildings (and parking spaces attached to buildings) CCM 7.4 24,423 0.05% 0.05% N/EL N/EL N/EL N/EL N/EL 0.11% 8.1 Data processing, hosting and related activities CCM 8.1 3,597,069 7.91% 7.91% N/EL N/EL N/EL N/EL N/EL 8.85% 8.2 Data-driven solutions for GHG emissions reductions CCM 8.2 181,690 0.40% 0.40% N/EL N/EL N/EL N/EL N/EL 0.25% Total A.2 OPEX of Taxonomy-eligible but not environmentally sustainable activities 3,803,182 8.36% 8.36% 0.00% N/EL N/EL N/EL N/EL 9.21% Total (A.1 + A.2) 3,803,182 8.36% 8.36% 0.00% N/EL N/EL N/EL N/EL 9.21% B.) Taxonomy-non-eligible activities OPEX of Taxonomy-non-eligible activities (B) 41,645,970 91.64% Total OPEX (A+B) 45,449,151 100.00% Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 127 Abbreviations explained: Section A1: YES – Taxonomy-eligible and Taxonomy-aligned activity with the relevant environmental objective NO – Taxonomy-eligible but not Taxonomy-aligned activity with the relevant environmental objective N/EL – not eligible, Taxonomy-non-eligible activity for the relevant environmental objective Section A.2: EL – Taxonomy-eligible activity for the relevant objective N/EL – Taxonomy-non-eligible activity for the relevant objective We have updated the methodology for capturing categories for operating expenses in 2024 to include a smaller range of direct non-capitalised costs. The values are also adjusted in the previous year’s indicators. The catalogue of taxonomy-eligible activities will be supplemented in the future with the remaining activities that we have identified as potentially relevant for our Company: − 4.1 Provision of data-supported information/operational technology solutions − 5.4 Sale of used goods − 5.5 Product-as-a-service and other circular service models focused on use and results for the contribution to the circular economy goal 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. The principles of sustainable operations are an integral element of the business processes of Telekom Slovenije and Telekom Slovenije Group companies. We therefore expect that key performance indicators will gain in value in the coming years. The following table, extracted from Regulation 2023/2486, shows the taxonomy-eligible and taxonomy-aligned revenue, CAPEX and OPEX proportions against the stated environmental objective. 47 Proportion of turnover / Total turnover Proportion of CAPEX / Total CAPEX Proportion of OPEX / Total OPEX Objective Taxonomy -aligned per objective Taxonomy- eligible per objective Taxonomy -aligned per objective Taxonomy- eligible per objective Taxonomy -aligned per objective Taxonomy -eligible per objective CCM 0.00% 1.04% 0.00% 1.09% 0.00% 8.36% CCA 0.00% 0.00% 0.00% WTR 0.00% 0.00% 0.00% CE 0.00% 0.00% 0.00% PPC 0.00% 0.00% 0.00% BIO 0.00% 0.00% 0.00% As mentioned in the previous points, we have not yet assessed the alignment criteria. We have attributed all the above-stated taxonomy-eligible activities to the objective of climate change mitigation (CCM). 47 Abbreviations explained: CCM – Climate change mitigation CCA – Climate change adaptation WTR – Water and marine resources CE – Circular economy PPC – Pollution prevention and control BIO – Biodiversity and ecosystems Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 128 8.2.4 Biodiversity in the Sečovlje saltpans Soline has managed the state-protected Sečovlje Salina Nature Park (SSNP) since 2003. 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. 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. Soline’s activity, i.e. the traditional harvesting of salt from the salt pans in the SSNP, does not cause any negative impacts. Its activity represents a special feature of the cultural heritage of Mediterranean Slovenia, and preserves the biodiversity of the Sečovlje salt pans. 48 The Sečovlje salt pans are currently endangered primarily due to flooding, their location in an urban area, agricultural activities in the hinterland and the pollution of the waters flowing into the sea and the salt pans. They are heavily impacted by noise from the nearby airport, followed by water pollution from untreated sewage in nearby settlements. In terms of the introduction and spread of non-native turtle species, the Drnice Valley and a nearby an old mine represent threats, with rejected non-native species entering the park from there. Non-native plant species are also spreading from the surrounding area and from the introduction of construction materials. The openness of the area and the urban surroundings are also a source of settlement and accessibility for domestic animals (cats, dogs, etc.). Other harmful forms of visitation (fishing, nocturnal visitation, walking dogs without leashes, etc.) should also be highlighted. 49 Description of the processes to identify and assess material impacts, risks and opportunities 50 The process of assessing the double materiality of the Telekom Slovenije Group's sustainability topics identified specific IROs for Soline according to the ESRS, as presented in the following table. Representatives of the affected communities were not involved in that process, as the IROs are defined in relation to the Management Plan of the SSNP, the regular monitoring of the quality of seawater and tributaries, and the observation of fauna and flora. IRO for Soline 48 ESRS E4.SBM-3_01 and 02, E4-5_02 49 GRI 304-1, ESRS E4.SBM-3_03 and 04 50 ESRS E2.IRO-1_01 to 03, E3.IRO-1_01 and 02, E4.IRO-1_01 to 16 Topic Identified risks and opportunities Identified impacts on the environment and people (stakeholders) Climate change adaptation and mitigation Risk: acute physical risks from extreme weather events and chronic physical risks associated with climate change (rising sea level) have been identified. This may have a negative impact on the salt pan ecosystems in the SSNP, which Positive impacts: Soline is reducing the consequences of climate change at Sečovlje Saltpans Nature Park by restoring the dykes in production areas and erecting new barriers or other infrastructure and mechanisms for Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 129 Plans, measures and objectives for the management of the Sečovlje Salt Pans (E4-1, E4-3, E4-4) 51 As a public nature conservation service, the SSNP is completely independent of Soline’s business model, as all policies and activities are defined in the SSNP management plan. 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 new draft management plan for the period 2024 to 2034 was still undergoing interdepartmental coordination at the end of the year. The management plan sets out a ten-year vision for the conservation of natural values and the development of the park. The objectives of the park are based on the Decree Governing the SSNP, regulations, international conventions and European nature conservation rules, the assessment and analysis of the state of the park, and taking into account the conservation of cultural heritage. These objectives are of a long-, short- and medium-term nature. It should be pointed out that the park area is protected under the rules governing the protection of cultural heritage. Part of the park has been declared a cultural monument of national importance, while the rest is deemed a cultural monument of local importance. The management plan sets out more detailed conservation arrangements and guidelines for activities, interventions and conduct. Representing an integral part of the management plan is a staff and financial plan, which sets out required staffing levels, and the level and the source of funding. 51 ESRS E4-1_01 to 06, E4-3_09, E4-4_06, E4.MDR-A, E4.MDR-T brings the risk of revenue loss due to reduced production and insufficient salt stocks, and a decline in visits to the Thalasso Spa Lepa Vida. regulating the water regime in response to fluctuations in the expected water levels, and preventing adverse impacts from sea level rises, extreme weather events or other climate change-related factors. Water and marine resources Risk/dependence: Soline is dependent on the use of seawater, which it uses for its core activities: salt production and the operation of the Thalasso Spa Lepa Vida wellness centre in the Sečovlje Salina Nature Park. Potential negative impacts: The capture of sea water during salt production using traditional methods does not have a significant impact on the sea or oceans, nor is the water (which is returned to the sea after production) contaminated. Lepa Vida Thalasso Spa requires sea water for its swimming pools and salt-water showers. The use of shampoo and soap is prohibited. Biodiversity and ecosystems Opportunities that are also defined as positive environmental impacts: As manager of the SSNP, Soline preserves the wetland character of the salt marsh ecosystem, which is also an active carbon sink and has a positive impact on its biodiversity through: - traditional salt production, - the protection and conservation of all the essential features of natural values and the habitat types of flora and fauna species, - monitoring the status and protection of biodiversity in the scope of adopted action plans. Pollution Risk: Soline is dependent on the quality of the seawater in the SSNP area, which it uses for its core activities: salt production and the operation of the Thalasso Spa Lepa Vida wellness centre. Potential marine pollution could therefore mean a loss of revenue due to the inappropriate quality of salt and the closure of the wellness centre. Potential negative impacts: Sea water is not contaminated during salt production using traditional methods. Soline returns the water to the sea after use. At Lepa Vida Thalasso Spa, the use of shampoos and soaps is prohibited in the showers to avoid the potential negative impact of sea water pollution. Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 130 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. The management plan requires Soline to carry out the following activities: 52 - 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. 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. Policies related to biodiversity and ecosystems (E4-2) 53 The Sečovlje Salt Pans are of great national and international importance because of the many rare, and endangered species and habitat types linked to the salt environment. This is demonstrated by the conservation statuses that the area enjoys under Slovenian and European legislation and international conventions on nature conservation. As a nature conservation value of national importance, the SSNP is deemed an ecologically important area. The 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. Traditional salt production in the SSNP has a direct positive impact on the socio-economic development of the area, while protecting biodiversity. In addition to regular and seasonal employment in the salt fields, the restoration and maintenance of the salt pans provide work for many subcontractors and service providers. It also offers an additional opportunity to promote tourism and raise awareness about the area. Soline has developed two brands (Solnce and Lepa Vida) related to salt and other products that derive from salt production, as well as the SSNP brand related to the park. It is these products and services that are the key drivers of the tourist offer of the spa complexes in Portorož and Piran. Impact metrics related to biodiversity and ecosystems change (E4-5) 54 One of the SSNP’s core tasks in terms of the public service of nature conservation is wildlife monitoring, which is conducted by certified and qualified nature conservation monitors. At the same time, the regular wildlife monitoring of target plant and animal species, habitat types, non-native species and weather is carried out in the park area. A small part (0.6 ha) of the area near an old mine was restored to ensure favourable conservation conditions for the endangered European pond turtle (Emys orbicularis) in 2024 as part of the LIFE URCA PROEMYS project. In the scope of the Climate Change Fund (CCF), we renovated and raised embankments in the third and first evaporation basins in Lera. A total of 309 bird species, 900 butterfly species, 40 grasshopper species, two praying mantis species, 36 dragonfly species, five amphibian species and eight reptile species have been recorded in the SSNP. There are 48 protected butterfly species, one protected praying mantis species, five protected amphibian species and six protected reptile species. A total of 57 butterfly species, four amphibian species and six reptile species are on the Red List of endangered species, while two butterfly species and one reptile species are deemed Natura 2000 species. There are no endangered 52 ESRS E4.MDR-A_01 to 12 53 ESRS E4-2_05, 06, 17, 19, E4.MDR-P 54 ESRS E4-5_05-09, E4-5_15 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 131 animal or plant species from the IUCN’s global list of endangered species present in the SSNP. 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. 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 2024. In the scope of the LIFE URCA PROEMYS project, we levelled embankments in the area of an old mine, built floating platforms for sunning and created an artificial nesting site for the endangered European pond turtle. The inclusion of the local community in the raising of awareness and the preservation of natural and 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 45,794 visitors in 2024, with 39,233 visiting the Lera area. The Fontanigge area recorded 6,561 visitors. In 2024, the SSNP participated in the Virtuoso Chairman’s Event, which brought together more than 250 of the most successful agents from 45 countries specialising in luxury and adventure travel. 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. Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 132 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 1,728 litres of sea water in 2024 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. 55 Waste is consistently separated and disposed of by the competent municipal department. Water consumption at Soline 56 2024 2023 Index 24/23 Consumption of sanitary water (in m 3 ) 3,232 2,836 114 Consumption of sea water (in m 3 ) 151,722 76,085 199 - salt production 150,000 74,000 203 - Thalasso Spa Lepa Vida 1,722 2,085 83 55 ESRS E3-1_01-03, GRI 3-3, 303-1, 303-2 56 ESRS E3-4_01, 03, 06, GRI 303-3, 303-5 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 133 8.3 Social information (S) 8.3.1 Employees (S1) List of material requirements by disclosure Section/page S1 – Own workforce ESRS 2 SBM-2-S1 – Interests and views of stakeholders 8.1.4/98 S1.SBM-3 – Material impacts, risks and opportunities and their interaction with strategy and business model 8.3.1/133 S1-1 – Policies related to own workforce 8.3.1/133 S1-2 – Processes for engaging with own workers and workers’ representatives about impacts 8.3.1/133 S1-3 – Processes to remediate negative impacts and channels for own workers to raise concerns 8.3.1/133 S1-4 – Taking action on material impacts on own workforce, and approaches to mitigating material risks and pursuing material opportunities related to own workforce, and effectiveness of those actions 8.3.1/133 S1-5 – Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities 8.3.1/133 S1-6 – Characteristics of the undertaking’s employees 8.3.1/133 S1-7 – Characteristics of non-employee workers in the undertaking’s own workforce 8.3.1/133 S1-8 – Collective bargaining coverage and social dialogue 8.3.1/133 S1-9 – Diversity metrics 8.3.1/133 S1-10 – Adequate wages 8.3.1/133 S1-12 – Persons with disabilities 8.3.1/133 S1-13 – Training and skills development metrics 8.3.1/133 S1-14 – Health and safety metrics 8.3.1/133 S1-15 – Work-life balance metrics 8.3.1/133 S1-16 – Compensation metrics (pay gap and total compensation) 8.3.1/133 S1-17 – Incidents, complaints and severe human rights impacts 8.3.1/133 Material impacts, risks and opportunities (S1.SBM-3) 57 The Telekom Slovenije Group has in place a comprehensive risk management system, which also includes human resource risks. Risk management is integrated into business decisions. The process involves systematic communication, the definition and analysis of risks, assessment, monitoring and the implementation of measures to manage risks. Telekom Slovenije has identified the following risks on HR: the appropriateness of the existing organisational culture, the departure of key employees and the availability of employees with the relevant skills and certifications, lawsuits filed by employees, appropriate employee training and education, and occupational safety and health. While different companies have defined different HR risks, the majority of companies dedicate special attention to key employees, and occupational safety and health. In the DMA process, in line with ESRS, all identified risks, opportunities and impacts have been summarised into five sustainability themes, which are described in the table below. These cover all employees (permanent or temporary). 57 ESRS S1.SBM-3_01, 02, 05 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 134 Topic Description of risks/opportunities and impacts on employees Diversity, inclusion of employees and equal opportunities Identified opportunities and positive impacts: The Telekom Slovenije Group adheres to the principles of diversity, equality of employees, and equal pay for equal work in all of its activities, regardless of gender or any other circumstance. Our policies and measures are designed to prevent violence and harassment at the workplace. TSinpo, a subsidiary and sheltered company for workers with disabilities, employs and trains disabled workers. It therefore increases the employability of persons with disabilities within the wider social community, and provides them with opportunities to further their careers. Talent recruitment and employee development Identified risks, opportunities and positive impacts: Recruiting talented people and the necessary employees is a growing challenge at all Telekom Slovenije Group companies, especially for employees with specific skills. To recruit the best employees in strategically important areas (ICT, multimedia, cloud services, user interfaces, cyber security, etc.), we offer students practical training and education, award company scholarships, and establish partnerships with universities, faculties and secondary schools. Through continuous, systematic training, knowledge management and the transfer of knowledge between co-workers, we ensure the growth and development of both the Company and its employees. Healthy and safe working environment Identified opportunities and positive impacts: The management of occupational health and safety is in line with legal requirements. In addition to meeting legal requirements, preventive programmes are implemented to protect the health and well- being of employees. Risks: The risk of absenteeism has been identified. Job security, working hours and decent pay Positive impacts: Telekom Slovenije Group employees have guaranteed decent working conditions in accordance with the requirements of the law and the collective agreement, and other internal acts. Job security is guaranteed through permanent and full-time employment contracts. Employees are paid more than the minimum wage, with the exception of Soline. Freedom of association, collective bargaining and social dialogue Identified opportunities and positive impacts: Group companies in Slovenia maintain an ongoing social dialogue with trade union partners (communication, joint consultations and the issuing of consents) in accordance with the Workers Participation in Management Act. Policies related to own workforce (S1-1) 58 The Telekom Slovenije Group aims to provide an inclusive, cooperative, safe and healthy working environment. The basis for this is continuous training, the development of employees’ potential and competences, motivation, remuneration and retention, and the recruitment of diverse and highly effective 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. 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. We are aware that long-term commercial success can only be achieved by investing in knowledge and development, as we operate in a high-tech and dynamic sector that is constantly evolving. The systematic building of the employer brand and our organisational culture is crucial for ensuring the appropriate employee structure. We introduce and upgrade HR practices together with employees and through their inclusion, while we also strive to improve the overall experience and treatment of employees through a number of activities. Care for employees is a key element of our HR policy and the organisational culture. We dedicate numerous activities to the promotion of health, well-being and the prevention of burnout. Special attention is given to sustainable management, the promotion of diversity, 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. To that end, we also carry out a large number of activities aimed at promoting healthy lifestyles. 58 ESRS S1-1_01-03, 09-13, 21, 22 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 135 Telekom Slovenije and GVO regulate the area of human resources through a collective agreement, which is the umbrella act for regulating employment relations. All companies in Slovenia also have several sets of rules governing specific areas (e.g. job systematisation, working hours, work from home, training, occupational health and safety, as well as the safety declaration etc.). Adopted policies cover all Group employees. Human rights policies The Telekom Slovenije Group believes that respect for human rights is crucial to creating an inclusive and supportive working environment. Our commitments in the area of human rights are clearly set out in our Code of Ethics, which applies to all Group companies, and the rules on the respect of human rights. 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. Telekom Slovenije is also a signatory of the Commitment to respect human rights in the course of operations, which is part of the National Action Plan of the Republic of Slovenia on the Respect of Human Rights in Business. We have also established mechanisms to monitor compliance with human rights, including procedures to report and address possible breaches. The member of the Management Board who serves as Workers’ Director is responsible for receiving and handling reports of possible breaches, and is also involved in the implementation of preventive measures to ensure that the human rights of all employees are respected. The area of human resources at IPKO in Kosovo is in line with local legislation and its own health, safety and quality control system. It also has a Human Rights Policy and a Code of Conduct for Responsible Operations, which commit employees at IPKO and its suppliers to respect human rights and the rights of workers. Processes to remediate negative impacts and channels for own workers to raise concerns (S1-3) 59 The Telekom Slovenije Group is committed to ethical, transparent and responsible operations that prevent potential violations of human rights, and ensure a work environment that is based on respect, equal opportunities and the dignity of all. To that end: • We regularly analyse and assess risks in connection with human rights, with a special emphasis on areas such as discrimination, equality, workers’ rights, data security and privacy, and responsible supply chains. We engage internal and external stakeholders in dialogue to identify and address potential risks and develop solutions to mitigate them. • We have set up various complaints mechanisms to allow employees, partners and customers to report alleged breaches and potential irregularities confidentially and anonymously. More on these mechanisms and procedures is reported in point 8.4.1 Corporate culture. We handle reports in accordance with clearly defined procedures that ensure impartial, transparent and fair resolution. If irregularities are identified, immediate action is taken, including the improvement of processes, additional training or cooperation with suppliers to correct the irregularities. • When negative impacts are identified, we ensure remediation, which includes both addressing the causes and rectifying the damage for the affected parties, where possible. We cooperate with social partners with the aim of protecting and strengthening employees’ rights, and to ensure proper working conditions. We also encourage open dialogue between management, employees and their representatives to create an environment based on mutual respect, transparency and cooperation. Individual Group companies have appropriate mechanisms in place for identifying potential cases of discrimination, and for taking action in such cases. 59 ESRS S1-3_01-07, 09 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 136 Taking action, and the management of material impacts, risks and opportunities (S1-4) 60 In line with material risks and opportunities identified in connection with employees, we focus on providing a safe working environment and maintaining their health at work and at home. We also dedicated a great deal of attention to the retention of key employees. Telekom Slovenije is implementing the following key measures to address these issues: • The Key and Perspective Employee System, which includes 9% of all employees. This involves the continuous process of developing employees’ potential through planned education, developing • successors, ensuring the transfer of critical skills and involving them as a priority in the recruitment process for • more demanding jobs, while we are committed to retaining them at the Company. • the Modro jabolko (Wise Apple) health portal, where we promote healthy living by publishing various articles and information about exercise and healthy eating. At the beginning of every year, we publish a schedule of additional medical examinations that employees may sign up for. A total of 1,342 additional examinations were thus carried out in 2024. We facilitate vaccinations against various diseases. • The Živijo, stres, (Hello, Stress!) project for activities on stress management and the prevention of burnout. To that end, we organise webinars with various experts, regular in-house training workshops and thematic posts on the intranet (active breaks, nutrition, etc.). We also organised anti-stress workshops and preventive health recreation, which last year was aimed at employees with disabilities. • The Modri telefon (Wise Telephone), where employees can speak to a psychologist. • In 2024, we decided to take a more organised approach to encouraging employees to exercise and a healthy lifestyle, and thus introduced Health Ambassadors. • We introduced the ‘How are you?’ chat to identify risks of employee departures. The latter is intended for the timely identification of risks and the implementation of measures when they arise. The effectiveness of adopted measures is monitored through the measurement of organisational vitality, annual employee interviews, occupational health examination, post-training questionnaires, etc. Such insights serve as the basis for potential changes to measures. In addition to the legal requirements, other Group companies also implement various programmes and measures to promote health and ensure a safe working environment: • TSmedia encourages employees to be active with a weekly online exercise class. • Last year, TSinpo organised a ‘green’ breakfast for all employees to raise awareness about sustainability. • GVO organised a preventive health recreation programme and a first aid course for its employees. • Avtenta’s employees can enjoy fresh fruit every Monday and Wednesday, as well as free drinks and healthy snacks every day. Every quarter, they organise a Healthy Breakfast, where all employees come together. The event is aimed at socialising and the promotion of healthy eating and a healthy lifestyle. • IPKO has a Health and Safety Team, which is certified by the competent ministry, and is committed to reducing risks and maintaining a safe working environment. The company also has a talent management system in place to retain and attract talented and key employees. Targets related to material impacts, risks and opportunities (S1-5) 61 We have defined a number of measures and related objectives at all Telekom Slovenije Group companies based on the identified risks, opportunities and impacts. Those objectives are adopted in line with legal (such as the Occupational Health and Safety Act) and internal acts (policies and rules), while employee representatives are involved in their formulation. At Telekom Slovenije, these objectives relate primarily to: 60 ESRS S1-4_01-04, 06, 07 61 ESRS S1.MDR-T_01 to 13, S1-5_01 to 03 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 137 • Ensuring employee diversity: This includes fostering an inclusive work environment where different perspectives, competencies and experiences are valued. • Gender balance on Telekom Slovenije’s Management Board and Supervisory Board: The goal is to achieve gender balance in management positions. • Maintaining a constructive dialogue with employee representatives: Regular cooperation with trade unions and works councils to ensure good working conditions and the resolution of potential challenges. • Bridging the gap between the desired and current organisational culture: The implementation of measures to foster the desired organisational culture (M.O.S.T.) based on values such as motivated, open, self-confident and team-oriented. • Maintaining a high level of organisational vitality (above the national average): Encouraging employee motivation and commitment by providing good working conditions, opportunities for development and the recognition of achievements. • Inclusion in education systems: Investment in the development of employees’ knowledge and competences by providing opportunities for continuous education and training. • Management of turnover and the retention of competent employees: Measures to manage employee turnover and retain employees with key expertise, such as programmes for the development of personal and professional skills, the facilitation of internal mobility, and a systematic approach to induction and mentoring. • Systematic building of the employer brand: We also strengthen the employer brand through various events, by cooperating with schools, faculties and research institutions, providing company scholarships, engaging guest lecturers, etc. • Employee satisfaction: Monitoring and improving employee satisfaction with the working environment and conditions, and other activities. • Prevention of harmful conduct: The implementation of measures to prevent harassment, discrimination and other harmful practices in the workplace. • Reduction in the number of injuries and lost working days, and lower absenteeism than at the national level: Ensuring a safe and healthy working environment, and promoting a healthy lifestyle for employees. Other Group companies also have objectives that are reasonable, given their specific circumstances. Characteristics of the undertaking’s employees (S1-6) 62 At the end of 2024, the Telekom Slovenije Group had 3,200 employees (compared with 3,253 the previous year), of which 2,720 were in Slovenia and the rest in Kosovo (480). A total of 242 employees left the Group and 189 new hires were made. 62 ESRS SBM-1_03-04, S1-6_01 to 20, S1-9_03 to 05 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 138 Data regarding employees as at 31 December 2024 Telekom Slovenije Group Telekom Slovenije Other companies in Slovenia IPKO Number of employees 3,200 2,049 671 480 Average number of employees in 2024 3,173 2,058 634 481 Type of employment Permanent employment 2,891 2,014 605 272 Temporary employment 309 35 66 208 Sex Men 2,129 1,330 530 269 Women 1,071 719 141 211 Working time Full-time 3,134 2,008 646 480 Part-time (due to disability, parenthood, etc.) 66 41 25 0 Type of employment contract Employees covered by collective agreement 3,138 2,003 662 473 Employees outside the collective agreement system 62 46 9 7 Age structure under 30 years of age 435 187 127 121 between 31 and 50 years of age 1,716 1,040 339 337 over 50 years of age 1,049 822 205 22 Employee turnover 7.0% 5.1% 11.1% 9.1% All data regarding employees relate to the number of employees (headcount) on the last day of the year, except in the case of the average number of employees and turnover. Data regarding employees as at 31 December 2024 Women Men Total Number of permanent employees 938 1,953 2,891 Number of temporary employees 135 174 309 Number of non-guaranteed hours employees / / / Number of full-time employees 1,026 2,108 3,134 Number of part-time employees 47 19 66 The Telekom Slovenije Group employs temporary workers due to temporary increases in the workload and to cover protracted absences. 63 Collective bargaining coverage and social dialogue (S1-8) 64 The Telekom Slovenije Group strives for constructive and respectful social dialogue that is based on two-way communication with employee representatives. At the Group level, 98.1% of all employees are covered by a collective agreement, the same proportion as in 2023. The remaining 1.9% of employees have contracts outside the collective bargaining system. These are primarily employees in management positions. In Kosovo, which is outside the European Economic Area, the proportion of employees under a collective agreement is 98.5%. 63 ESRS S1-7_01, 03, 05, 06 64 ESRS S1-8_01 do 08 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 139 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 (notification, joint consultation, issuing of consent, etc.). We are actively involved in the regulation of labour rights through collective agreements and other bilateral arrangements, all of which are consistently respected. This approach builds working environment and reflects a high level of social responsibility within the Group, which contributes significantly to the long-term trust of employees and other stakeholders. Diversity metrics (S1-9) 65 In accordance with the Policy Governing the Diversity of the Management and Supervisory Bodies of Telekom Slovenije Group Companies, we pursue the objectives of gender balance and the heterogeneity of members. The gender diversity target is met. The under-represented gender accounts for 43% of the overall composition of the Telekom Slovenije’s Management Board and Supervisory Board (six women and eight men). Adequate wages (S1-10) 66 The Telekom Slovenije Group regularly analyses employee wages and compares them with those in the sector to ensure that they are fair and in line with market standards. Our approach is based on ensuring fair wages and wage equity, and promoting the long-term development of employees. In the coming years, we will continue to strengthen the transparency of our wage policy and incorporate employee feedback into the development of the wage system. 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 14.3% higher than the minimum wage in Kosovo. We pay a great deal of attention to rewarding and motivating, and reward both individual and team success. Bonuses are paid based on the company-level collective agreement and other internal acts. We offer monetary rewards (semi-annual incentives, sales incentives and rewards for outstanding performance) and non-monetary rewards. Social protection (S1-11) 67 In accordance with Slovenian law, employers must ensure compulsory insurance at the start of the employment relationship to ensure comprehensive social protection. This includes protection in cases of sickness absence, parental leave and unemployment. Social protection also includes protection against loss of income due to workplace injuries, disability and financial security in retirement. Such a system of social protection contributes to the stability and security of employees, and ensures social justice and a dignified life, even in unforeseen life circumstances. Adequate social protection is also provided to IPKO employees in Kosovo, where the company contributes to their compulsory health and pension insurance in accordance with local legislation. Additional social benefits Telekom Slovenije is committed to the financial security of our employees in the future. After one year of service, we offer all employees Voluntary supplementary pension insurance. We also pay premiums at GVO, Avtenta, TSmedia and TSinpo. Help in special situations Telekom Slovenije offers assistance to employees to provide financial and social support in extraordinary life circumstances. Such assistance is available in cases such as the death of an immediate family member, prolonged sick leave, severe disability or in the event of natural disasters. Assistance is allocated in accordance with the provisions of the collective agreement, taking into account an employee’s average income and other relevant conditions. At other companies, solidarity assistance is paid in accordance with internal rules or regulation. 65 ESRS 2 Gov-1_06, S1-9_01, 02 66 ESRS S-10_01 67 ESRS S1-11_01 to 05 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 140 Heart Foundation – charitable events and activations of employees We established the Heart Foundation to support the children of Telekom Slovenije Group employees who have lost a parent, or who are seriously ill and incurring high medical costs. The Heart Foundation currently includes 46 children of employees up to the age of 21, while we also helped four seriously ill children in 2024. Donations are made via SMS, as a one-off donation or as a recurring contribution. On World Heart Day in 2024, we organised the second Heart Rise of the Group, where we combined charity, the strengthening of health and connectivity. We facilitated intergenerational socialising amongst Group employees, but above all, it brought a strong team spirit and togetherness, and a heartfelt touch. We also began a special charitable activation through the internal auctions of the Heart Foundation. The auctions are held with the participation of Telekom Slovenije Group employees, and the funds are donated to the Heart Foundation and the children in the Heart Foundation. Employment and training of persons with disabilities (S1-12) 68 The Telekom Slovenije Group strives to create an inclusive work environment where all employees, regardless of their abilities, have equal opportunities to develop, work and cooperate. We pay special attention to employees with disabilities, as we are aware of their important contribution to the diversity and success of our organisation. Group companies have a total of 88 employees included in disability levels II and III (2.7% of all employees). Of those persons, 41.0% 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 disabled employee over the prescribed quota. IPKO has two employees with disabilities, but there is no remuneration system as described above at the national level in Kosovo. Our subsidiary TSinpo has a special mission in terms of the treatment of people with disabilities in work processes, as it provides employment and training for people with disabilities, as well as workplace adaptations for employees with disabilities that prevent them from working at the parent company. The company recruits people with disabilities from within the Group and from the labour market. The company had 49 employees in 2024, 28 of whom are disabled workers. TSinpo produces and markets cardboard sleeves and packaging under its own brand. The products are made from 100% recycled cardboard, while the lids are also made from recyclable LDPE. It provides Telekom Slovenije various support services, such as the control, refurbishing and distribution of telecommunications terminal equipment, the technical preparation of telecommunication works, the compilation of sales and other packages, the distribution of marketing materials, the preparation and distribution of CRM materials for end-users, the maintenance of the documentary material archive and a correspondence contact centre. Employee training and development (S1-13) 69 Our employee training and education strategy supports the Company’s key strategic objectives. Through systematic training, and the management and transfer of knowledge, we facilitate the growth 68 ESRS S1-12_01 and 03. Categories of disabled persons are monitored and classified according to Slovenian law, where Category II includes insured persons whose capacity for work in their occupation has been reduced by 50% or more. Category III includes insured persons who are no longer capable of working full-time, with or without prior occupational rehabilitation, but may perform certain work at least half-time, insured persons whose capacity for work in their occupation has been reduced by less than 50%, and insured persons who are still able to work full-time in their occupation but are unable to work in the job to which they are assigned. 69 ESRS S1-13_01 to 05 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 141 and development of employees and the Company, while ensuring sustainable operations and a superior user experience. All employees, regardless of gender, age and position, can access relevant education and training courses. Development and training plans are drawn up as part of annual development interviews, where we define the objectives and purpose of training. We monitor the effectiveness and satisfaction of participants through questionnaires, which facilitate the continuous improvement of content. 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 for which we have annual development interviews. 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. We pay special attention to key and perspective employees, for whom we design specific development programmes. 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 perspective employees. IPKO in Kosovo also has a talent management system, where 10% of employees have been identified as perspective employees. Key data regarding employee training in 2024 Telekom Slovenije Group Telekom Slovenije Women Men Total Women Men Total Number of education and training hours 33,313 57,063 90.376 23,647 42,789 66.436 Average number of training hours per employee 31.0 26.8 28.2 32.9 32.2 32.4 Total training hours by employment category in 2024 Telekom Slovenije Group Telekom Slovenije Technology and sales staff 54,135 41,629 Administration 10,397 9,270 Department heads 11,067 9,249 Middle management 7,656 5,865 Other 7,122 424 Total 90.377 66.437 Intergenerational cooperation Workplaces today contain people of different generations with different experiences, knowledge and responses to professional challenges. In encouraging the structured transfer of knowledge and intergenerational cooperation, we focus on mentoring and on work by in-house lecturers. Management of older employees 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. We again focused on health and well-being in 2024, and organised another experiential workshop on the challenges of retirement. The aim of the workshop was to create a safe, relaxed environment in which colleagues who were Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 142 due to retire could get together, reawaken a sense of hope, and express their wishes and aspirations for the period to come. Occupational health and safety (S1-14) 70 The management of occupational health and safety within the Telekom Slovenije Group is in accordance with legal requirements that are defined for all employees and for each sector separately. We implemented all key measures relating to occupational health and safety, and fire protection in 2024. We took regular measurements of environmental conditions and lighting in the work environment for all locations where 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. 71 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. 72 The area of occupational health and safety is comprehensively governed at companies in Slovenia by the Occupational Health and Safety Act (ZVZD-1) and by declarations of safety with risk assessments. This area is governed at IPKO by local legislation, its declaration of safety with risk assessments and through an internal health, safety and quality control system that includes all employees. 73 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). 74 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, occupational medicine 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 facilitate vaccination against tick-borne meningoencephalitis for employees, considering the nature of the work, and raise awareness amongst employees in Slovenia about the possibility of flu vaccinations. 75 70 GRI 3-3, IO3, SDG 8 71 GRI 403-2 72 GRI 403-5 73 GRI 403-1, 403-8, ESRS S1-14_01, ESRS S1-14_10, ESRS S1-14_11 74 GRI 403-2, 403-4 75 GRI 403-3, IO3 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 143 Healthcare and workplace injuries in the Telekom Slovenije Group 76 Occupational health and safety 2024 2023 2022 Index 24/23 Number of workplace injuries 37 31 35 119 Work-related injuries 7.0 n.a. n.a. n.a. Number of working days lost 1,545 1,712 1,637 90 Number of working hours lost 10,965 13,534 12,992 81 Number of medical examinations 922 1,165 1,501 79 - preliminary examinations 199 253 212 79 - periodic examinations 723 988 1,289 73 Number of deaths 0 0 0 / * For the injury rate, we used the following calculation: number of injuries/number of total hours worked by employees * 1,000,000. The Telekom Slovenije Group has no employees at high risk to occupational diseases. 77 Fire safety In place in all of our facilities are fire safety rules and evacuation and fire plans that are reviewed and updated to reflect major changes. Fire safety training is carried out as part of occupational safety training. Fire extinguishers and hydrant networks were inspected and serviced in all buildings in 2024, 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. Telekom Slovenije recorded two small fires in 2024. Work-life balance (S1-15) 78 Promoting work-life balance is one of our commitments, as we believe that satisfied employees contribute to our long-term success. Telekom Slovenije’s flexible measures to balance family and professional obligations help us pursue the values of the Family-Friendly Company and Socially Responsible Employer certificates. We strive to create a stimulating and friendly working environment that enables employees to achieve work-life balance. We thus support flexible forms of work, such as flexible working hours, work from home and work at two locations. This approach not only increases employee satisfaction and loyalty but also improves productivity and strengthens inclusion and diversity in the workplace. We pay special attention to young families, as we enable them to better balance their work and private obligations through various activities. Through a range of activities to strengthen the employer brand and organisational culture, we encourage mutual cooperation, and create an environment that attracts and retains employees. Flexible forms of work represent a modern way of adapting to the working environment and employees’ expectations. Where the work process allows, employees are given greater freedom to choose where, when and how to work, while ensuring a high level of performance. To that end, we make it easier for our employees to balance their work and personal obligations, which contributes to a better work-leisure-time balance and improves their overall satisfaction and effectiveness. By including flexible working practices into our business strategy, we are consolidating our position as a responsible and modern employer who ensures a supportive and flexible working environment for employees. 76 GRI 403-9, ESRS S1-14_02, 03, 04, 05, 07 77 ESRS S1-14_06 78 ESRS S1-15_01 to 04 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 144 Taking parental leave is a key example of this commitment. All employees are entitled to parental leave and exploit it in full. Although mothers still represent the majority, an increasing number of fathers are taking advantage of this right. We thus promote equality in childcare in the earliest stages of life. Following parental leave, employees successfully return to their jobs, and are supported by measures in line with legislation and the needs of work processes. Telekom Slovenije Group Telekom Slovenije 2024 2023 2022 2024 2023 2022 Number of employees on parental leave 110 62 73 53 21 21 of which: women 58 51 54 23 20 17 of which: men 52 11 19 30 1 4 Employees who returned to work following parental leave 89 52 54 50 21 21 proportion in % 81 84 74 94 100 100 of which: women 39 41 36 21 20 17 proportion in % 66 80 67 91 100 100 of which: men: 50 11 18 29 1 4 proportion in % 98 100 95 97 100 100 In Kosovo, employees can take paid parental leave for six months in accordance with local legislation, while IPKO offers workers the possibility of taking unpaid parental leave for an additional six months. Gender pay gap and total compensation (S1-16) 79 The Telekom Slovenije Group is committed to ensuring equal pay for equal work or work of equal value, regardless of gender. The basic salary of each employee of the Telekom Slovenije Group is determined on the basis of the wage grade for a particular position for which an employment contract has been concluded and does not depend on gender or any other personal circumstances. The ratio between the basic remuneration of the members of Telekom Slovenije’s Management Board and the average salary of employees within the Telekom Slovenije Group (all companies based in Slovenia) is in accordance with the Remuneration Policy for the Management Body of Telekom Slovenije, d.d. and the Management Bodies of Telekom Slovenije Group Subsidiaries, and amounts to 5 to 1. In accordance with the ZPPOGD, the basic part of remuneration is determined in relation to the average salary paid at Group companies, which may result in the basic part of remuneration of the President of the Management Board amounting to a maximum of five times the average gross salary to the employees of Group companies. Wage equality 2024 Gender pay ratio in % 7.04 The gender pay gap at Telekom Slovenije reflects historical factors and gender imbalance in the core activity, where the educational structure is strongly in favour of men, which is reflected at management levels and throughout the rest of the organisation. Various factors similarly influence the relationship between men and women at other Group companies. Our diversity initiatives aim for gender balance in management positions, taking into account the gender structure. We are already achieving that balance. 79 ESRS S1-16_01 to 03 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 145 The wage system is the same for all employees at all Group companies, regardless of gender, and we also offer other bonuses and benefits to employees where there are no gender differences. Thus, excluding specific factors, data regarding wage equality reflect an equitable relationship. Meaning of the data in the table: • The percentage represents the difference in average wages between men and women, and is calculated by subtracting the average gross hourly wage of female employees from the average gross hourly wage of male employees, and then dividing the difference by the average hourly wage of male employees. • The calculation includes the cost of wages and salaries, benefits and allowances that are taken into account when calculating the average wage at a company. • Actual payments of salary are taken into account. The calculation excludes allowances financed from external sources (e.g. allowances covered by the state or other institutions). Incidents, complaints and severe human rights impacts(S1 – 17) 80 The Telekom Slovenije Group handled one complaint in 2024. Communication with employees Communication with employees is key to the successful operations of the Telekom Slovenije Group, as we are aware that effective communication promotes teamwork and cooperation amongst employees, which leads to increased productivity and satisfaction. Telekom Slovenije uses various communication tools for this purpose , the most important of which is the internal TIP portal. In addition to daily news and information on what is happening within the Group, the portal also serves as a repository for a wide range of other important data and various documents. We also communicate with our employees through emails, the Microsoft Teams application and digital screens installed at all our key locations across Slovenia. Every Group company has in place its own method of communicating with employees. Telekom Slovenije encourages its employees to be (pro)active ambassadors on social media. To make our work easier and more efficient, and to work more closely and share knowledge and experience with each other, we are connected on a daily basis through the Sociabble digital platform. Last year, we organised two workshops for new ambassadors and three for existing ambassadors on very topical issues. We believe that our employees are the best creators and promoters of our stories. Any employee who creates, shares and presents our Company in a positive light on social channels, and likes and comments on our posts, can become an ambassador. This further helps to co-create Telekom Slovenije’s reputation, its corporate brand and its ‘employer brand’. Concern for employees and activities outside the workplace We organise summer and New Year’s social gatherings with employees and team meetings within the Telekom Slovenije Group. Father Christmas gives presents to the youngest children, and we also give presents to first-graders, employees celebrating work anniversaries and the new-borns of employees. We organise holiday childcare for employees’ children and support Telekom Slovenije’s pensioners’ clubs. 80 ESRS S1-17_02, 03, 05 to 07 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 146 All employees can be members of 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 2024, the club organised championships in skiing, snowboarding, badminton, table tennis, running, beach volleyball, sailing, golf, nine-pin bowling, standard bowling, shooting, tennis, five-a-side football, frisbee golf and basketball. We participated in the Ljubljanica Night Run, the 28th Ljubljana Marathon, the Goni Pony event and the Trio Relay Race, organised hikes for employees to Kofce, Planina nad Vrhniko and Rašica, and took part in the Journey from Litija to Čatež. We made it possible for employees to buy Telekom Slovenije cycling jerseys and organised the Telekom Slovenije Tour at all Telekom centres, as well as a social cycling event as part of Telekom Slovenije Group Day. We participated in the Workers’ Sports Games in Novo Mesto in the cycling time trial. The club also organised bowling outings for individual organisational units, a golfing course for beginners, a course for boat operators, a VHF GMDSS course, and a self-defence course for women and employees’ children. Guided remote Pilates courses are available. 8.3.2 Users (S4) List of material requirements by disclosure Page S4 – Consumers and end-users ESRS 2 SBM-2-S4 – Interests and views of stakeholders 8.1.4/98 S4.SBM-3 – Material impacts, risks and opportunities and their interaction with strategy and business model 8.3.2/146 S4-1 – Policies related to consumers and end-users 8.3.2/146 S4-2 – Processes for engaging with consumers and end-users about impacts 8.3.2/146 S4-3 – Processes to remediate negative impacts and channels for consumers and end- users to raise concerns 8.3.2/146 S4-4 – Taking action on material impacts on consumers and end-users, and approaches to managing material risks and pursuing material opportunities related to consumers and end- users, and the effectiveness of those actions 8.3.2/146 S4-5 – Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities 8.3.2/146 Material impacts, risks and opportunities (SBM-3) 81 The Telekom Slovenije Group offers a broad range of telecommunications and payment services in Slovenia and Kosovo. Our users are divided into residential (natural persons) and business users, while our services can have both negative and positive impacts on different user groups. The table below presents shows five sustainability themes, in the scope of which identified significant risks, opportunities and impacts for each user group are presented. Topic Identified risks, opportunities and impacts Quality of the network and services By continuously investing in the construction of new and the upgrading of existing networks, we are improving the reliability and quality of the network infrastructure, mitigating business continuity risks and economy- wide systemic disruptions, and providing users a top-quality user experience. Freedom of expression and privacy The Telekom Slovenije Group processes large amounts of personal and other data of users who may be exposed to risks, such as identity theft, unauthorised access to personal data or other forms of data abuse. We have rules in place to govern measures and procedures for ensuring 81 ESRS S4.SBM-3_01 to 06 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 147 appropriate data protection. Telekom Slovenije, TSmedia and IPKO also have Personal Data Protection Officers, to whom individuals can turn in the event of possible violations. Online security As a group operating in the telecommunications sector, we are aware of our responsibility to ensure the online security of our users, in particular children and young people. We use various security mechanisms to protect children in the online environment and when accessing digital content, while we also prevent discrimination and online harassment. Cyber security and data security The Telekom Slovenije Group is aware of the growing number of cyber attacks and the impact thereof. We therefore invest in the development and implementation of advanced security solutions that ensure the secure and reliable functioning of services for users. This also allows us to strengthen our competitive edge on the market. Access to the information society Certain vulnerable groups, such as the elderly, people with disabilities and people living in rural areas, may face barriers to accessing telecommunication services. The Telekom Slovenije Group develops specific technological solutions and a portfolio that address these issues and promote digital literacy and inclusion. Policies related to consumers and end-users (S4-1) 82 The Telekom Slovenije Group strives to ensure that policies (plans, rules, guidelines and procedures) are in line with our sustainability strategy and include a responsible approach to managing impacts on all consumers and end-users. The main objective is to provide high-quality, accessible, secure and reliable digital services, while respecting the principles of fairness, transparency and protection. To manage identified risks, opportunities and impacts, we implement an Accessibility Policy to develop and expand our network, and to adapt devices and services to the needs of vulnerable groups. We are committed to the highest standards of protection of personal data, user privacy, network and service integrity and cyber security through our Policy on the Prevention of the Abuse of Electronic Communications and the existing security plan to ensure the security of the network and services. Our Transparent Communication Policy establishes clear channels for communicating changes in services or problems, and facilitates effective customer support via different channels. Through special care for the secure use of services and a portfolio of products and services for vulnerable groups and the security of users, we have in place a Policy on the Ethical and Secure use of Technology to prevent the undesired effects of technology, such as digital addiction, the abuse of data or unethical advertising practices, and to protect children when using the internet. We have adopted a number of internal policies and rules in line with Slovenian legislation, European and other international requirements and standards in these areas. They include: Smart Standards for Network Excellence, rules for ensuring the functioning of services and fault clearance, ISMS, BCMS, special terms and conditions on the use of e-services, the Privacy Policy, general and special terms and conditions on use of electronic services, legislation (AKOS, the Information Security Act, the Digital Operational Resilience Act, the GDPR and the ZVOP-2), the personal data protection rules, trade secret rules, etc. Processes for engaging with consumers and end-users about impacts (S4-2) 83 We actively involve consumers in the development and testing of new services to meet their needs. We use feedback from periodic customer satisfaction measurements to make improvements. We 82 ESRS S4.MDR-P_01-06, S4-1_01-05 83 ESRS S4-2_01 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 148 regularly assess risks and their impact on consumer rights, and monitor the results of complaint mechanisms and other feedback. Processes to remediate negative impacts and channels for consumers and end-users to raise concerns(S4-3, S4-4) 84 The Telekom Slovenije Group has various channels in place to facilitate the simple and efficient expression of concerns, reports or claims by consumers. These channels are accessible to everyone, including vulnerable consumers (e.g. elderly, people with disabilities). Telekom Slovenije offers various options for resolving problems and submitting complaints. Users may choose the My Telekom online platform or the mobile application, visit a branch or call our helpline. We are also accessible via social networks (Facebook, X and Instagram). To that end, we monitor effectiveness by regularly assessing the speed of response and resolution of complaints, and measure user satisfaction after each case is closed. All channels ensure the protection of personal data in accordance with the GDPR, ZVOP-2 and internal rules, while users receive feedback on the handling of questions (e.g. notifications on the status of a question). In accordance with the law, we have measures in place to protect individuals from retaliatory measures. Call agents and other staff are also regularly trained to deal with sensitive topics and to ensure appropriate practices. Targets related to impacts and risks, and opportunities for consumers and end-users (S4-5) 85 The Telekom Slovenije Group has a number of annual targets and measures in place to manage material impacts and risks, and to exploit opportunities related to our users. They are presented below according to identified sustainability themes. Access to the information society: objectives include expanding the availability of networks, in particular the fibre optic and 5G mobile networks, including in rural areas, with the aim of bridging the digital divide. A total of 99% of Slovenian households will have access to these networks by 2026. In this context, the design of tailor-made packages for different target groups, including vulnerable users, is also an important objective. High-quality networks and services: setting standards for internet speed, call quality and responsiveness to problems are among our most important objectives. We also plan to establish faster and more transparent complaint resolution procedures, to monitor customer satisfaction to improve the user experience, and to develop new services, such as smart home applications, telemedicine, e-learning or sustainable technology. Cyber security and data security: we have in place objectives and measures to mitigate the risks of cyber attacks and to protect the data of the Telekom Slovenije Group and our users. Online security: we design new programmes or functionalities to help younger users, in particular, use the internet securely. Freedom of expression and privacy: at Telekom Slovenije and the subsidiary IPKO, we take great care to protect privacy, personal data and trade secrets, as data protection is one of the key factors of trust in the Telekom Slovenije Group and our services. To that end, we do not interfere with the content of communications and we only restrict access to content in accordance with the law and on the basis of decisions from the competent authorities (for example, restricting access to gambling- related websites on the basis of court decisions). 84 ESRS S4-4_01-10 85 ESRS S4.MDR-T_01-13 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 149 Taking action, and approaches to managing material risks, opportunities and impacts related to consumers and end-users (S4-4) 86 The Telekom Slovenije Group cooperates with various non-governmental organisations and government bodies in the introduction of solutions and services, and establishes partnerships with educational institutions to promote the secure use of digital technologies. Telekom Slovenije received 92 privacy-related reports from users in 2024. The majority of incidents derive from the potential abuse of identity when entering into contracts to purchase devices. We saw an increase in incidents in 2023 and have put additional measures in place to prevent such events. By taking action, we succeeded in reducing the number of such incidents in 2024. In one case, where human error led to the disclosure of a subscriber’s data to a third party, where this could have jeopardised the rights and freedoms of the individual, we self-reported the incident to the Information Commissioner. We did not identify material breaches of personal data protection in the other cases we handled. When handling cases of abuse, we protect the rights of customers whose data has been misused through the appropriate handling of cases. We ceased working with one authorised seller because of improper data handling and for other reasons. IPKO recorded one privacy-related incident in 2024. Following an investigation, the company took appropriate measures to mitigate such risks. We also provide information to individuals about the processing of personal data based on their questions, queries and complaints. We monitor operations and control the processing of personal data through the handling of complaints and internal controls. We take appropriate action when irregularities are identified, update processes, provide additional guidance and train employees and authorised agents. In 2024, Telekom Slovenije's Personal Data Protection Officer handled 77 reports from individuals concerning their personal data. The majority of reports concerned statements of traffic data as personal data. We placed the greatest emphasis in 2024 on the security of Telekom Slovenije's portals, and upgraded them with by introducing two-factor authentication (2FA). In addition to an email address and password, users must also enter a one-time SMS security code, which is sent to their mobile phone number, to log in. For easier access to the online version of My Telekom, we added the option of logging in with a QR code, while we protected the use of the My Telekom mobile application with biometrics, such as facial recognition and fingerprint recognition. Ethical market communication 87 We comply with high standards of marketing ethics in our marketing and advertising processes. Telekom Slovenije pursues those standards as a signatory of the code of conduct for providers of electronic communication services for the protection of users, the code of mobile operators and internet providers aimed at user protection and the ETNO Corporate Responsibility Charter. To that end, we comply with the Media Act and the Slovenian Advertising Code (SOC), and follow the recommendations of AKOS in the area of customer care. We are signatories of the Commitment to Introduce Sustainable Standards in the Advertising Industry because we are aware of the responsibilities and role that all of us working in advertising have, as this is also an area where the transition to a sustainable society is needed. In marketing communications, we practice the self-regulation of advertising, which means that we adhere to principles and rules that advertisers must follow when designing their ads. Compliance with the 86 ESRS S4.MDR-A_01-12, S4-4, GRI 418-1 87 GRI 2-27, 3-3, 417-3 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 150 Slovenian Advertising Code is assessed by the Advertising Tribunal. Our responsible departments respond in the event of reports to the Market Inspectorate. As Slovenia’s leading provider of the most-advanced digital services, Telekom Slovenije is aware of its socially responsible role in raising awareness and ensuring the safer, more balanced and responsible use of technology and the internet. We have developed several projects to this end. These include the umbrella initiative ‘Enjoy Smart’ and its derivatives ‘Cheer Smart’, ‘Smart Technology is Not Enough, Smart Must Be in Your Head’, SUPR, ‘Shop Smart’ (Black Friday) and others. We received a warning from the competent market inspectorate in 2024 regarding potential breaches of Telekom Slovenije’s slogans Best and Fastest Network According to Users and Best TV Experience According to Users. The inspectorate stated that the slogans were based on outdated research. We immediately corrected the error on the website and updated the post with the latest survey data supporting the use of the slogan. This satisfies the requirement for verifiability of stated data. There were no other warnings or breaches. The subsidiaries TSmedia and IPKO in Kosovo also comply with general professional advertising codes. Transparency in the charging of services 88 Telekom Slovenije is aware of the importance of concern for the environment in its operations. For this reason, we are implementing a number of initiatives and activities to reduce the number of printed invoices. Activities in 2024 thus led to an increase relative to the previous year in the number of invoices in one of the electronic formats. The proportion of electronic invoices was 41%. We issued 5.3 million invoices for telecommunication services in 2024 (excluding non-standard invoices and credit notes). Users filed complaints about 0.65% of all invoices issued, an increase of 0.02 percentage points relative to the previous year. The appropriateness of implemented measures and the good work done to resolve complaints are also reflected in the low percentage of user disputes received in relation to the number of subscribers at AKOS compared with other operators, as seen in the table below. 88 GRI PA10 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 151 Source: Report on the resolution of user disputes in the areas of electronic communications, and postal and audiovisual media services, and rail passenger complaints for the second quarter of 2024. Superior quality and broad access to the Group’s services 89 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 99.00% 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. 90 89 GRI PA1, PA2, SDG 9, SASB: TC-TL-550a.1, TC-TL-520a.2, TC-TL-000.D 90 GRI PA4, SDG 1 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 152 Network availability indicators in Slovenia and Kosovo: Slovenia Kosovo 5G – coverage of population 80.0% 65.0% 4G/LTE – coverage of population 99.0% 92.1% 2G/GSM – coverage of population 99.6% 99.2% Fibre optic – possibility of connection 478,000 35,000 Availability of the fixed network >99,995% >99.939% Availability of the mobile core network elements >99,999% >99,999% Availability of mobile access elements >99.993% >99.856% Concern for the safe use of services and vulnerable user groups 91 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. 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. It was updated in 2024 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. Together with company Logout, we also developed a family screen safety plan that is suitable for families in which all members already use devices and the internet. • 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. 91 GRI G4-DMA, G4-M4, PA2 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 153 • We launched , the ‘Enjoy Smart’ website, where together with the profession we have brought together in one place some recommendations and tools for the smart, responsible and safe use of technology. We worked with experts from Logout, Neodvisen TV and the Slovenian Friends of Youth Association (TOM telefon) to develop content for the ‘Enjoy Smart’ website, while taking into account national guidelines for safe use of screens by children and adolescents, which were drawn up by Slovenian paediatricians. • We've upgraded the memory game, where pictures bring attention to online dangers to remember when surfing the web. Tools for parents encourage conversations between parents and children with the aim of transferring knowledge and raising awareness about the importance of the safe and responsible use of technology. Retirees and the elderly • 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 facilitate 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 the subscribers of our mobile and fixed 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. • 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. Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 154 8.3.3 Support to local communities 92 The Telekom Slovenije Group gives a great deal of attention to its responsibilities towards vulnerable groups and the local communities in which it operates. 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 new rules on sponsorships and donations in 2024. We introduced a form for submitting applications, which is published on the website. Prior to submitting their application, applicants read the associated strategy, which highlights, inter alia, applicants’ connection with our values, integrity and sustainability. Applications are processed by an internal committee in accordance with the Rules on the Treatment and Approval of Sponsorships and Donations. Major sponsorships and donations in 2024 The Telekom Slovenije Group earmarked a total of EUR 2.2 million or 0.3% of its sales revenues for sponsorships and donations in 2024. Telekom Slovenije Sponsorship and donations We carried out several sponsorship activities in Slovenia to strengthen awareness of our support for widening access to and involvement in sport for broader groups. A significant part of the sponsorship activities was thus linked to the ‘Cheer Smart’ initiative, which started with the Tour of Slovenia, where we promoted safe, responsible and smart cheering. We continued the initiative during the Slovenian national football team’s matches at EURO 2024, while it was also the main focus of the Olympic campaign that we prepared as a sponsor of the Slovenian Olympic Committee during the Olympic Games in Paris. To mark the end of Peter Prevc's career, we set up an answering machine to record best wishes. Fans were able to leave a message on his answering machine with their best wishes, congratulations, memories and feelings, and thus paid tribute to his successful career. At the LIFFe Film Festival, we also raised awareness among our invitees about the responsible, efficient, safe and smart use of screens. 92 GRI 3-3, 201-1, 203-1 sport charity education / science culture other Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 155 Humanitarian projects Our activities in 2024 included the support of 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; • 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 Matej Mohorič Foundation to help children and young people who cannot afford to participate in sport due to financial hardship; and • Institute 7 from Nova Gorica, where we supported the Neodvisen.si programme, which raises awareness among young people and adults about different paths of addiction. We also helped individuals who needed assistance in co-financing their medical treatment, and provided educational institutions with computer equipment. 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 sustainable management conference; • the multimedia educational programme at the Faculty of Electrical Engineering at the University of Ljubljana; and • the Post and Telecommunications Museum, which Telekom Slovenije co-founded. Culture and other fields 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; • 65th Ljubljana Jazz Festival; • Ljubljana Art Weekend 2024; and • Game Gang Show 2024. Sport Telekom Slovenije is one of the biggest supporters of Slovenian athletes and Slovenian sport. We supported various associations, clubs and events in 2024: • sporting associations: Ski Association of Slovenia, the Slovenian Olympic Committee, the Slovenian Football Association, 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 Shooting Union of Slovenia, the Slovenian Gymnastics Association, the Rowing Association of Slovenia and the Slovenian Judo Federation; • sporting clubs: Maribor Football Club, Mura Football School, Cedevita Olimpija Basketball Club, Krka–Telekom Novo Mesto Basketball Club, Domžale Basketball Club, Portorož Basketball Club, Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 156 Triglav Kranj Basketball Club, Celje Pivovarna Laško Handball Club, Trimo Trebnje Handball Club, Rog Cycling Association and others; • sporting events: the World Ski Flying Championships in Planica, the FIS Women's Ski Jumping World Cup in Ljubno, the Franja Marathon, the Tour of Slovenia cycling race, the Slovenian national football team’s matches at the European Football Championship, the 2nd Ljubljana Festival of Sport, the World Cup in Sport Climbing in Koper, the 42nd Three Hearts Marathon, the FIVB Volleyball Nations League 2024 tournament in Ljubljana, the Triglav Run, and many others. Cancer awareness-raising projects In 2024, we continued to raise awareness about the need to take care of our health, the importance of prevention and the need to go to the doctor in a timely manner if changes are noticed, through the Modri Fon campaigns in October and November. To this end, we dedicated additional attention to cancer awareness-raising activities in October and November. In conjunction with Samsung, we donated EUR 10,000 to the Slovenian chapter of the Europa Donna association for the 17th consecutive year in October. We interviewed Darja Molan from the Slovenian chapter of the Europa Donna association, who was the face of this year’s campaign. We organised a ‘pink hike’ to the Kofce pasture, where hikers wore pink clothes and bows. In November, which is men’s cancer awareness month, we donated EUR 5,000 to the Slovenian Oncology Association for Men (OnkoMan), together with the company Xiaomi. We published an interview with Martin Lisec, a member of OnkoMan, who through his personal experience, was this year’s face of men’s cancer awareness. In November, we organised a ‘moustache walk’ for men from Litija to Čatež. IPKO IPKO in Kosovo demonstrates a sustainable commitment to local communities through selected projects, and builds on the values of innovation, progress and social responsibility: • Health: Expanding the Together Against Cancer campaign to raise public awareness and donate mobile ultrasound devices for early cancer detection. • Culture: Sponsoring cultural attractions in Kosovo, including the Sunny Hill and Dokufest festivals, to support talented young people and enrich national identity. • Education, innovation and sustainability: Awarding of 25 scholarships to engineering and telecommunication students, supporting innovative projects, such as BONEVET electric vehicles and the Green Gateway IoT hackathon, and donating IT equipment to schools. In addition, IPKO facilitated the transition of the SOS Humanitarian Kindergarten to a sustainable heating system. • Sport: Supporting prominent football and basketball clubs to promote community inclusion, social cohesion and youth development. TSmedia and GVO As socially responsible companies, TSmedia and GVO support sports, education, cultural and humanitarian projects, and help individuals in need. In line with available funds and sources, they give back to local communities and society, and contribute to positive changes in the community. Social responsibility is also a policy at all other Telekom Slovenije Group companies. 157 Letno poročilo Skupine Telekom Slovenije in družbe Telekom Slovenije, d.d., za leto 2024 8.4 Governance information (G1) 8.4.1 Corporate culture 93 List of material requirements by disclosure Section/page G1 – Business conduct ESRS 2 GOV-1-G1 – The role of the administrative, management and supervisory bodies 8.1.2/89 ESRS 2 IRO-1-G1 – Description of the processes to identify and assess material impacts, risks and opportunities 8.1.2/89 G1-1 – Corporate culture and business conduct policies 8.4.1/157 G1-2 – Management of relationships with suppliers 8.4.2/162 G1-3 – Prevention and detection of corruption or bribery 8.4.1/157 G1-4 – Confirmed incidents of corruption or bribery 8.4.1/157 G1-6 – Payment practices 8.4.1/157 Impact, risk and opportunity management (SBM-3, IRO-1) 94 The Telekom Slovenije Group’s business conduct and corporate culture are based on a constructive employee behavioural style that promotes the superior quality of services, development, mutual cooperation, compliance, business excellence and the achievement of strategic objectives. Compliance and integrity (G1-1) 95 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. It commits us to fair and transparent operations, to the protection of personal data, the respect of human rights, information and business data, to the avoidance of conflicts of interest and the pursuit of personal interests, to the prevention of corrupt acts, money laundering and the restriction of competition, and to report dishonest conduct. 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. 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 person responsible for the compliance function is the Compliance and Integrity Officer appointed by the Management Board and approved by Telekom Slovenije’s Supervisory Board. 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). 93 GRI, 2-12, 2-13, 2-16, 2-23, 2-24, 2-25, 2-26, 3-3 94 ESRS 2 SBM-3, IRO-1_G1 95 GRI 2-12, 2-13, 2-16, 2-23, 2-24, 2-25, 2-26, 3-3, ESRS G1-1_01, G1.MDR-P_01-06, G1.MDR-A_01-02 158 Letno poročilo Skupine Telekom Slovenije in družbe Telekom Slovenije, d.d., za leto 2024 The officers worked mainly in the following areas in 2024: • 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 2024. More information on these reports is available in the section Mechanisms for reporting concerns about illegal conduct or conduct contrary to codes, guidelines and rules. Prevention and detection of corruption and conflicts of interest, and ensuring compliance with competition law 96 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 2025. That plan is in line with Slovenian legislation and thus the UN Convention against Corruption. Employee activities to prevent and manage conflicts of interest are defined in the rules governing conflicts of interest. Employees shall disclose all circumstances that could result in conflicts of interest, and shall consistently strive to avoid conflicts of interest. Employees in key positions (directors of organisational units, and members of management and supervisory bodies) 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. 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. Due to circumstances that could result in conflicts of interest, individual members of the Management Board recused themselves from decision making on five matters within their own or the Management Board’s collective competence. The Supervisory Board of Telekom Slovenije was also informed of those recusals. 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. Although no instances of transactions that would have required the prior approval of the Supervisory Board arose in 2024. We also have rules, guidelines and procedures in place for accepting and giving gifts, and invitations to events. 96 ESRS G1-1_01-03, G1-3_01, G1-3_03 159 Letno poročilo Skupine Telekom Slovenije in družbe Telekom Slovenije, d.d., za leto 2024 No cases of corruption were identified and confirmed within the Telekom Slovenije Group in 2024. The Telekom Slovenije Group companies were also not convicted of corruption- or bribery-related offences. 97 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. The Compliance and Integrity Officer checked the compliance of six sponsorship contracts in 2024, in each case finding that no infringements had been committed in the course of the performance of the contractual provisions. 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. 98 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. Data regarding contacts are publicly available on the website of the Commission for the Prevention of Corruption of the Republic of Slovenia, from which the manner and place of lobbying, the persons being lobbied, the purpose and objective of the lobbying (main lobbying topics and summaries of positions) are evident. The Compliance and Integrity Officer keeps a list of the authorisations issued to employees to carry out lobbying contacts. In addition to authorised employees, lobbying contacts are carried out by the Company's legal representatives, i.e. members of the Management Board. We did not use professional lobbyists or lobbying agencies in 2024. 99 In the area of competition law, we have adopted the Rules on Ensuring Compliance with Competition Law, which define prohibited conduct and how employees should conduct themselves in business activities. By regularly informing and training employees, we contribute additionally to the management of such risks. No new proceedings were initiated against Telekom Slovenije or its subsidiaries in 2024 in response to a potential breach of competition protection rules. One set of proceedings in this area from previous years is in progress before the Competition Protection Agency (AVK). The outcome is still pending. The AVK halted one set of proceedings. 100 Mechanisms for reporting concerns about illegal conduct or conduct contrary to codes, guidelines and rules 101 Employees must 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 raise awareness of the importance of such disclosures, either through intranet postings or various employee training sessions. Employees and other stakeholders may file reports via various channels, where confidentiality is ensured. Telekom Slovenije handles both anonymous and non-anonymous reports, which can be submitted by employees and other stakeholders through various channels: • via an email address ([email protected]) that is published on Telekom Slovenije's intranet and website; • via an electronic form that is published on Telekom Slovenije's intranet and website; • ordinary post (Telekom Slovenije, d. d., Whistleblowing Committee, Cigaletova ulica 15, 1000 Ljubljana, with the inscription ‘Do not open’). The system for receiving, handling and investigating reports is set out in the Rules on the Management of Reports and Protection of Whistleblowers. In line with the requirements of the Whistleblower Protection Act (ZZPri), the aforementioned rules also govern whistleblower protection and the prohibition of retaliatory measures. 97 ESRS G1-4_01, G1-4_02 98 GRI 415-1, ESRS G1 -5_01-08 99 G1-05, G1-3 03 100 GRI 419-1 101 ESRS G1-1_02, G1-1_05, G1-1_08, G1-1_12 160 Letno poročilo Skupine Telekom Slovenije in družbe Telekom Slovenije, d.d., za leto 2024 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. The committee comprises five members –delegates, including the Compliance and Integrity Officer who is a permanent member and serves as chair. The other four members of the committee are appointed by the Management Board, while one member is appointed based on the proposal of the Company’s Works Council. Committee members are appointed to a term of office of four (4) years, and may be re-appointed. They must act with a high degree of integrity, honesty and trustworthiness, and be autonomous and independent in the performance of their duties. Subsidiaries with fifty or more employees are required to appoint one or more trustees to handle whistleblower reports. We handled a total of seven reports from internal and external whistleblowers in 2024. The investigation of one report was still ongoing as at 12 December 2024. In one case, breaches of the Telekom Slovenije Group’s Code of Ethics were identified and recommendations set out in the Code were issued for the additional training of the violators. No breaches were identified in relation to the complaint received by the committee in 2023, the investigation of which was concluded in 2024. However, the committee identified certain weaknesses and thus issued three recommendations, two for the improvement of processes and one for an extraordinary internal audit. IPKO received two reports in 2024, both of which were still open as at 31 December 2024, while no reports were received by other subsidiaries in 2024. By 1 March of the current year, the Whistleblowing Committee must report to the Commission for the Prevention of Corruption on the number of anonymous and substantiated reports received and the number of retaliatory measures handled, including information regarding the trustees or members of the Whistleblowing Committee. Protection of privacy and personal data We pay a great deal of attention to the protection of privacy, personal data and trade secrets, as this helps us to maintain a high level of trust in the Telekom Slovenije Group and its services. In addition to personal data protection rules, the processing of personal data at the Company in individual areas is also governed by the Company’s other acts, in particular the Privacy Policy, Information regarding the processing of personal data in the context of business relationships for the use of real estate, Information regarding the processing of personal data in real estate transactions, Information regarding the processing of personal data in the context of video surveillance, and the terms and conditions of individual services. In 2024, supervisory authorities (AKOS and the Information Commissioner) initiated one supervisory procedure 102 in relation to personal and traffic data protection at Telekom Slovenije. The National Supervisory Authority in Kosovo initiated (as part of its monitoring of all operators) an oversight procedure regarding the processing of personal data in IPKO. Both procedures are ongoing. We did not record any losses in 2024 from legal proceedings as the result of events in connection with privacy or the protection of the personal data of individuals. 103 Cyber-attacks and the increasing use of artificial intelligence tools also pose additional risks to the protection of personal data, which we are addressing with additional measures. The Personal Data Protection Officer also advises on the development of services using artificial intelligence tools. Further information on the processing of users' personal data can be found n section 8.3.2. Users. 102 418-1 103 TC-TL 220a.3 161 Letno poročilo Skupine Telekom Slovenije in družbe Telekom Slovenije, d.d., za leto 2024 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 2024, nor did we identify any transactions involving the suspicion of money laundering or terrorist financing. 104 Compliance training 105 The Telekom Slovenije Group organises regular education, training, workshops and e-learning on the subject of compliance for employees and authorised agents: prevention of corruption and conflicts of interest, handling whistleblowing reports, ensuring compliance with competition law, protection of trade secrets, respect for human rights, personal data protection, prevention of money laundering and terrorist financing, overseeing the handling of confidential data, and public information. We also raise employees’ awareness about compliance via our intranet or email. In 2024, Telekom Slovenije employees completed a total of 1,307 hours of training in the areas of personal data protection, trade secrets and the handling of classified information, information security (cyber security) and social engineering. Employees at subsidiaries received 604 hours of training on the security culture and personal data protection in 2024. Telekom Slovenije Group employees also received 536 hours of training in the detection and prevention of money laundering and terrorist financing, and in the prevention of corruption and conflicts of interest. An e-learning course on the prevention of corruption and conflicts of interest was also organised and was mandatory for all employees. In 2024, Telekom Slovenije also organised the measurement of organisational vitality, which included questions related to respect for human rights, the protection of employees' personal data, the establishment of a whistleblowing mechanism and the prevention of conflicts of interest. Telekom Slovenije intends to organise an independent survey on integrity and compliance at Telekom Slovenije in 2025. 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). In 2024, we published the following: 112 notices at Telekom Slovenije, 2 notices at Avtenta, 23 notices at TSmedia, 2 notices at Soline, and 52 proactive notices at GVO. 104 GRI 205-3 105 ESRS G1-1_01, G1-1_10, G1-03_05, GRI 2-23, 2-24, 205-2, 412-2 162 Letno poročilo Skupine Telekom Slovenije in družbe Telekom Slovenije, d.d., za leto 2024 Telekom Slovenije handled five new requests for access to information, while other companies in Slovenia did not receive any requests for access to public 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 all subsidiaries. 8.4.2 Responsible supply chain 106 Management of relationships with suppliers (G1-2) Telekom Slovenije Group companies have a coordinated and standard procurement policy that includes the strategic policies and principles of a transparent procurement process. We develop long- term relationships with suppliers through correct and balanced communication, the fulfilment of agreements, the reliability of payments and the inclusion of suppliers in communication, procedures and development. To that end, we respect all legal and ethical principles on the market where we operate. 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. Our supply chain comprises the suppliers of goods and services, operators and agents in the sale of goods and the conclusion of subscriptions. Telekom Slovenije cooperates with 2,676 suppliers from 47 countries. The majority or 96.3% of suppliers are from the European Union. Total turnover between Telekom Slovenije and Slovenian subsidiaries and their business partners amounted to more than EUR 588 million in 2024, including VAT. That amount also includes sponsorships and donations. In managing relations with suppliers, we not only ensure smooth operations but also actively contribute to the Company’s sustainability goals, which include concern for the environment and respect for social standards. We pay particular attention to risk management in the management of suppliers and implementation of procurement processes in order to build a reliable, ethical and efficient supply chain that has a positive impact on the Company, its suppliers and society as a whole. These risks include operational risks (delivery delays and product quality), strategic risks (market changes and geopolitical risks), financial risks (instability of suppliers’ financial situation) and sustainability risks. By monitoring suppliers, analysing potential disruptions and taking appropriate measures to mitigate risks in the supply chain, we ensure that risks are as manageable as possible. This contributes to a supply chain that is more resilient to unforeseen events. To that end, we monitor and assess the environmental and social practices of our partners, as we are aware that these factors have a major impact on the long-term sustainability of our operations. We require suppliers to meet environmental standards and regulations. In addition to environmental aspects, we also take into account social aspects such as working conditions, the protection of workers’ rights and respect for ethical standards in the supply chain in our supplier relationship management. This includes ensuring that suppliers comply with standards to ensure fair and safe working conditions, and the promotion of gender equality and respect for human rights. When verifying whether suppliers meet these requirements, we may, in certain cases, audit the provision of services, either independently or through an authorised contractor, through contractual commitments. We inform key suppliers about our sustainability commitments and goals, and thus encourage them to take a step together on the path to sustainability. In the coming year, we will introduce a revised risk assessment methodology for cooperation with suppliers, with an even greater focus on monitoring risks in procurement processes and integrating sustainability, social and environmental 106 GRI 2-6, 3-3, 204-1, ESRS G1-2_01-03 163 Letno poročilo Skupine Telekom Slovenije in družbe Telekom Slovenije, d.d., za leto 2024 criteria. For strategic suppliers, the introduction of ESG reporting will ensure a better understanding of the sustainability dimensions of the supply chain and of materials and services procured. Payment practices (G1-6) 107 We pay our suppliers by the agreed payment deadlines. The standard payment period is 60 days. For this reason, we have not recorded any late payments or court proceedings. 107 ESRS G1-6_01-05 164 Letno poročilo Skupine Telekom Slovenije in družbe Telekom Slovenije, d.d., za leto 2024 8.4.3 Taxes and auditing Reporting on taxes Telekom Slovenije Group operates in accordance with tax law. 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. 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 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 under point 43. Auditor’s fee. 165 Letno poročilo Skupine Telekom Slovenije in družbe Telekom Slovenije, d.d., za leto 2024 Internal auditing Activities for 2024 were defined in the annual work plan drawn up on the basis of actual risks. Annual and multi-year plans were adopted by the Management Board, with the Supervisory Board’s consent. In addition to the assurance engagements in the annual plan, the Internal Audit Service completed three unscheduled engagements in 2024 and provided advisory support in various areas. Based on the engagements that were completed, the Internal Audit Department found that measures to manage risks to the achievement of the objectives are in place and working, or made recommendations to improve performance, efficiency and transparency in these areas. 8.4.4 Regulation of electronic communications Frequencies In March 2024, AKOS announced the completion of the tender with public auction for private networks in the 2300 MHz and 3600 MHz RF frequency bands for local use. In September, it published the Radio Frequency Spectrum Management Strategy for the period 2024 to 2026, which was previously approved by the Slovenian Government. Development of next generation broadband networks In August 2024, the Ministry of Digital Transformation published a call for the co-financing of the construction of high-capacity fixed broadband networks or the upgrading of existing fixed networks (GOŠO6). National legislation and EU regulations In May, the Ministry of Digital Transformation organised a consultation on the European Commission’s White Paper ‘How to master Europe’s digital infrastructure needs?’, which includes 166 Letno poročilo Skupine Telekom Slovenije in družbe Telekom Slovenije, d.d., za leto 2024 policy means to ensure a secure and resilient digital infrastructure, and possible ways to shape the future regulatory framework. On 6 February 2024, the European Commission adopted the Gigabit connectivity recommendation, which provides guidance on conditions for access to the construction infrastructure and promotes the faster migration from copper to fibre optic networks. The Regulation on measures to reduce the cost of deploying gigabit electronic communications networks (Gigabit Infrastructure Act) entered into force on 11 May 2024 and will be fully applicable from November 2025 on. That regulation defines new rules for the more rapid, cheaper and more efficient introduction of gigabit networks across the EU. Universal services AKOS defined Telekom Slovenije as a universal service provider for the period from 13 December 2024 to 1 July 2026. Universal services include services for connection to the public communications network at a fixed location, through which access to voice communications and/or broadband internet access is ensured, as are measures for disabled end-users. Relevant markets The AKOS conducted various inspections with respect to Telekom Slovenije in connection with imposed obligations on regulated relevant markets. Telekom Slovenije sent several initiatives to AKOS to amend regulatory measures on relevant markets 3b. Relevant market Change Relevant market 4 (2014/710/EU) ‘Wholesale high-quality access at a fixed location’ On 4 July 2024, AKOS issued a decision in a repeated procedure, designating Telekom Slovenije as an operator with significant market power from 2 October 2019 on. Relevant market 1 (2020/2245/EU) ‘Wholesale local access at a fixed location’ In a decision dated 19 December 2024, 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 20 December 2024, AKOS expanded the set of fully deregulated settlements. 167 Letno poročilo Skupine Telekom Slovenije in družbe Telekom Slovenije, d.d., za leto 2024 8.4.5 Management systems Through our high-quality management systems, we control the entire lifecycle of our services, from design and development, the allocation of resources, logistics, implementation and the maintenance of service quality during the operations phase, to the controlled end of the lifecycle. In 2024, the Group successfully maintained all existing management systems. Review of compliance for the management systems certificates, based on ISO, IEC, EN and SIST standards Certificates of compliance Scope of 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, d.d. SIST EN ISO/IEC 27001 Valid until: 28 April 2026 Cyber Security and Resilience Centre, Financial Services, Business ICT Services, Network and Service Monitoring 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 Telekom Slovenije, d.d. Energy services for internal use 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 electro energetic networks. SIST EN ISO 14001 Valid until: 31 December 2026 Design, construction and maintenance of telecommunications and electro energetic 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. The external audit of compliance of the energy management system, based on the requirements of the ISO 50001 standard, was also an accreditation audit for our external auditor. Despite supervision by an international team of Slovenian Accreditation auditors, the assessment did not reveal any deviations from the criteria for such management systems. We were successful on all other audits to maintain business partners certificates as well, such as MS Partner, Cisco, Oracle and HP, and for systems that are based on other recommendations (internal rules and the non-accredited systems such as Family-Friendly Company, Socially Responsible Employer, etc.). 168 Letno poročilo Skupine Telekom Slovenije in družbe Telekom Slovenije, d.d., za leto 2024 Illustration of management systems within the Telekom Slovenije Group 169 Letno poročilo Skupine Telekom Slovenije in družbe Telekom Slovenije, d.d., za leto 2024 8.5 Independent Limited Assurance Report on the Consolidated Sustainability Report 170 Letno poročilo Skupine Telekom Slovenije in družbe Telekom Slovenije, d.d., za leto 2024 171 Letno poročilo Skupine Telekom Slovenije in družbe Telekom Slovenije, d.d., za leto 2024 172 Letno poročilo Skupine Telekom Slovenije in družbe Telekom Slovenije, d.d., za leto 2024 173 Letno poročilo Skupine Telekom Slovenije in družbe Telekom Slovenije, d.d., za leto 2024 174 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 175 9 FINANCIAL REPORT OF THE TELEKOM SLOVENIJE GROUP AND THE COMPANY TELEKOM SLOVENIJE, d.d., FOR THE YEAR 2024 9.1 Financial statements of the Telekom Slovenije Group and Telekom Slovenije .................................... 176 9.2 Notes to the consolidated financial statements of the Telekom Slovenije Group and the separate financial statements of Telekom Slovenije .............................................................................................. 184 1. Reporting entity .......................................................................................................................................... 184 2. Basis for preparation ................................................................................................................................. 184 3. Summary of significant accounting policies ........................................................................................... 188 4. Fair value measurement ............................................................................................................................ 202 5. Composition of the Telekom Slovenije Group ......................................................................................... 203 6. Segment reporting ..................................................................................................................................... 206 7. Sales revenue ............................................................................................................................................. 208 8. Other operating income ............................................................................................................................. 209 9. Cost of goods sold, costs of materials, energy and services ................................................................ 210 10. Labour costs ............................................................................................................................................... 211 11. Depreciation/Amortisation ........................................................................................................................ 212 12. Other operating expenses ......................................................................................................................... 212 13. Finance income and expenses ................................................................................................................. 213 14. Income tax, deferred tax assets and tax liabilities .................................................................................. 213 15. Earnings per share ..................................................................................................................................... 216 16. Intangible assets ........................................................................................................................................ 217 17. Property, plant and equipment ................................................................................................................. 222 18. Right-of-use assets .................................................................................................................................... 226 19. Investments in subsidiaries ...................................................................................................................... 229 20. Other investments ...................................................................................................................................... 230 21. Contract assets .......................................................................................................................................... 231 22. Deferred costs ............................................................................................................................................ 231 23. Investment property ................................................................................................................................... 231 24. Assets held for sale ................................................................................................................................... 232 25. Inventories .................................................................................................................................................. 233 26. Trade and other receivables ...................................................................................................................... 233 27. Contract assets .......................................................................................................................................... 234 28. Deferred costs ............................................................................................................................................ 234 29. Cash and cash equivalents ....................................................................................................................... 235 30. Equity and reserves ................................................................................................................................... 235 31. Contract liabilities ...................................................................................................................................... 237 32. Provisions ................................................................................................................................................... 237 33. Other liabilities ........................................................................................................................................... 241 34. Loans and borrowings ............................................................................................................................... 241 35. Lease liabilities ........................................................................................................................................... 242 36. Other financial liabilities ............................................................................................................................ 242 37. Operating liabilities .................................................................................................................................... 243 38. Contract liabilities (short-term) ................................................................................................................. 243 39. Accrued liabilities ...................................................................................................................................... 243 40. Book and fair values .................................................................................................................................. 244 41. Contingent liabilities and contingent assets ........................................................................................... 247 42. Related party transactions ........................................................................................................................ 248 43. Auditor’s fee ............................................................................................................................................... 256 44. Categories of financial instruments ......................................................................................................... 256 45. Financial instruments and financial risk management ........................................................................... 256 46. Events after the reporting date ................................................................................................................. 262 9.3 Independent auditor’s report for the Telekom Slovenije Group and the company Telekom Slovenije ..................................................................................................................................................................... 263 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 176 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 2024 I - XII 2023 I - XII 2024 I - XII 2023 Sales revenue 7 712,442 694,913 614,218 601,669 Other operating income 8 7,571 13,254 3,844 9,628 Cost of goods sold 9 -92,405 -92,012 -97,187 -96,933 Cost of materials and energy 9 -22,812 -30,371 -17,544 -24,230 Cost of services 9 -217,926 -211,684 -205,432 -198,922 Labour costs 10 -129,956 -126,128 -105,361 -103,776 Depreciation/amortisation 11 -167,473 -164,431 -140,553 -137,869 Other operating expenses 12 -16,598 -19,403 -14,943 -13,015 Total operating expenses -647,170 -644,029 -581,020 -574,745 Operating profit 72,843 64,138 37,042 36,552 Finance income 13 2,795 2,015 88,381 5,511 Finance expenses 13 -18,649 -18,661 -16,438 -19,217 Profit before tax 56,989 47,492 108,985 22,846 Corporate income tax 14 -7,150 -4,890 -3,644 -2,062 Deferred tax 14 5,349 4,463 5,509 3,080 Net profit for the period 55,188 47,065 110,850 23,864 Earnings per share Basic in EUR 15 8.49 7.24 17.06 3.67 Adjusted in EUR 15 8.49 7.24 17.06 3.67 Notes on pages 184 to 263 are an integral part of these consolidated financial statements. Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 177 The consolidated and separate statement of other comprehensive income Telekom Slovenije Group Telekom Slovenije in EUR thousand Note I - XII 2024 I - XII 2023 I - XII 2024 I - XII 2023 Net profit for the period 55,188 47,065 110,850 23,864 Other comprehensive income that may be reclassified subsequently to the statement of profit or loss -1,662 -14 -1,668 -16 Translation reserves 30 6 0 0 0 Effective part of change in fair value of cash flow hedge 30 -2,139 -19 -2,139 -20 Deferred tax 14 471 5 471 4 Other comprehensive income that may not be reclassified subsequently to the statement of profit or loss 1,117 14 870 107 Actuarial gains and losses 30 816 -53 569 39 Net gains/losses on equity instruments at fair value through other comprehensive income 30 0 37 0 37 Change in fair value of financial instruments through other comprehensive income 30 386 29 386 30 Deferred tax 14 -85 1 -85 1 Other comprehensive income for the period after tax -545 0 -798 91 Total comprehensive income for the period 54,643 47,065 110,052 23,955 Total comprehensive income for the period belonging to: 54,643 47,065 110,052 23,955 owners of the parent company 54,643 47,065 110,052 23,955 Notes on pages 184 to 263 are an integral part of these consolidated financial statements. Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 178 The consolidated and separate balance sheet Telekom Slovenije Group Telekom Slovenije in EUR thousand Note 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 ASSETS Intangible assets 16 215,555 203,754 155,763 162,379 Property, plant and equipment 17 716,297 686,497 624,984 607,716 Right-of-use assets 18 86,464 79,205 92,568 85,356 Investments in subsidiaries 19 0 0 120,354 36,920 Other investments 20 2,856 2,472 12,524 22,014 Contract assets 21 4,173 4,179 3,779 3,749 Other receivables 26 19,242 19,685 19,179 19,684 Deferred costs 22 2,018 2,714 2,020 2,787 Investment property 23 3,349 3,296 3,349 3,296 Deferred tax assets 14 48,179 42,203 47,742 41,848 Total non-current assets 1,098,133 1,044,005 1,082,262 985,749 Assets held for sale 24 588 588 588 588 Inventories 25 24,146 24,802 20,518 21,176 Trade and other receivables 26 174,000 170,123 163,172 161,091 Income tax receivables 14 114 932 65 442 Contract assets 27 13,817 14,148 13,655 14,036 Deferred costs 22 7,852 6,743 4,779 4,855 Investments 20 1,004 1,046 6,447 18,002 Cash and cash equivalents 29 18,879 55,479 9,057 44,376 Total current assets 240,400 273,861 218,281 264,566 Total assets 1,338,533 1,317,866 1,300,543 1,250,315 EQUITY AND LIABILITIES Called-up capital 30 272,721 272,721 272,721 272,721 Capital surplus 30 181,489 181,489 180,956 180,956 Profit reserves 30 185,768 106,479 184,267 104,978 Legal reserves 30 51,612 51,612 50,434 50,434 Reserves for own shares and interests 30 4,065 4,065 4,065 4,065 Own shares and interests 30 -4,065 -4,065 -4,065 -4,065 Statutory reserves 30 54,854 54,854 54,544 54,544 Other revenue reserves 30 79,302 13 79,289 0 Retained earnings 30 32,213 96,640 61,760 70,492 Retained earnings from previous periods 32,213 49,575 6,335 46,628 Profit or loss for the period 0 47,065 55,425 23,864 Fair value reserve 30 -1,539 -172 -1,539 -172 Reserves for actuarial gains/losses 30 2,237 1,429 1,783 1,214 Translation reserves 30 58 52 0 0 Total equity 672,947 658,638 699,948 630,189 Contract liabilities 31 17,090 19,730 17,024 19,237 Provisions 32 28,177 24,711 24,227 21,139 Other payables 33 34,340 23,336 13,336 17,316 Deferred liabilities 8,515 8,916 546 426 Loans and borrowings 34 287,881 306,578 287,880 306,578 Lease liabilities 35 72,207 65,216 79,074 70,267 Other financial liabilities 36 2,139 0 2,139 0 Deferred tax liabilities 14 544 304 0 0 Total non-current liabilities 450,893 448,791 424,226 434,963 Operating liabilities 37 135,587 123,746 108,610 108,222 Income tax payable 14 1,501 7 1,257 0 Loans and borrowings 34 19,197 30,598 19,197 30,598 Lease liabilities 35 11,369 9,868 11,312 11,512 Other financial liabilities 36 2 2 0 0 Contract liabilities 38 10,858 11,907 4,587 5,779 Deferred liabilities 39 36,179 34,309 31,406 29,052 Total current liabilities 214,693 210,437 176,369 185,163 Total liabilities 665,586 659,228 600,595 620,126 Total equity and liabilities 1,338,533 1,317,866 1,300,543 1,250,315 Notes on pages 184 to 263 are an integral part of these consolidated financial statements. Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 179 Consolidated statement of changes in equity of the Telekom Slovenije Group in 2024 in EUR thousand Called- up capital Capital surplus Profit reserves Retained earnings Fair value reserve for financial instruments Fair value reserve for hedging instruments in net amount Reserves for actuarial deficits and surpluses 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 January 2024 272,721 181,489 51,612 4,065 -4,065 54,854 13 49,575 47,065 -172 0 1,429 52 658,638 Net profit or loss for the period 0 0 0 0 0 0 0 0 55,188 0 0 0 0 55,188 Other comprehensive income for the period 0 0 0 0 0 0 0 0 0 301 -1,668 816 6 -545 Total comprehensive income for the period 0 0 0 0 0 0 0 0 55,188 301 -1,668 816 6 54,643 Payment of dividends 0 0 0 0 0 0 0 -40,292 0 0 0 0 0 -40,292 Transactions with owners 0 0 0 0 0 0 0 -40,292 0 0 0 0 0 -40,292 Transfer of the previous year's profit or loss to retained earnings 0 0 0 0 0 0 0 47,065 -47,065 0 0 0 0 0 Transfer to other reserves based on the resolution of the General Meeting 0 0 0 0 0 0 23,864 -23,864 0 0 0 0 0 0 Transfer to other reserves based on the resolution of the Management Board 0 0 0 0 0 0 55,425 -237 -55,188 0 0 0 0 0 Other changes in equity 0 0 0 0 0 0 0 9 0 0 0 -9 0 0 Changes in equity 0 0 0 0 0 0 79,289 22,973 -102,253 0 0 -9 0 0 Other 0 0 0 0 0 0 0 -43 0 0 0 1 0 -42 Balance as at 31 December 2024 272,721 181,489 51,612 4,065 -4,065 54,854 79,302 32,213 0 129 -1,668 2,237 58 672,947 Notes on pages 184 to 263 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 2024 180 Consolidated statement of changes in equity of the Telekom Slovenije Group in 2023 in EUR thousand Called- up capital Capital surplus Profit reserves Retained earnings Fair value reserve for financial instruments Fair value reserve for hedging instruments in net amount Reserves for actuarial deficits and surpluses 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 January 2023 272,721 181,489 51,612 4,065 -4,065 54,854 13 12,497 37,506 -202 14 1,155 18 611,677 Net profit or loss for the period 0 0 0 0 0 0 0 0 47,065 0 0 0 0 47,065 Other comprehensive income for the period – adjusted 0 0 0 0 0 0 0 0 0 67 -14 -53 0 0 Total comprehensive income for the period 0 0 0 0 0 0 0 0 47,065 67 -14 -53 0 47,065 Transfer of the previous year's profit or loss to retained earnings 0 0 0 0 0 0 0 37,506 -37,506 0 0 0 0 0 Other changes in equity 0 0 0 0 0 0 0 -324 0 -37 0 327 34 0 Changes in equity 0 0 0 0 0 0 0 37,182 -37,506 -37 0 327 34 0 Other 0 0 0 0 0 0 0 -104 0 0 0 0 0 -104 Balance as at 31 December 2023 272,721 181,489 51,612 4,065 -4,065 54,854 13 49,575 47,065 -172 0 1,429 52 658,638 Notes on pages 184 to 263 are an integral part of these consolidated financial statements. Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 181 Separate statement of changes in equity of the company Telekom Slovenije in 2024 in EUR thousand Called- up capital Capital surplus Profit reserves Retained earnings Fair value reserve for financial instruments Fair value reserve for hedging instruments in net amount Reserves for actuarial deficits and surpluses Total Legal reserves 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 January 2024 272,721 180,956 50,434 4,065 -4,065 54,544 0 46,628 23,864 -171 -1 1,214 630,189 Net profit or loss for the period 0 0 0 0 0 0 0 0 110,850 0 0 0 110,850 Other comprehensive income for the period 0 0 0 0 0 0 0 0 0 301 -1,668 569 -798 Total comprehensive income for the period 0 0 0 0 0 0 0 0 110,850 301 -1,668 569 110,052 Payment of dividends 0 0 0 0 0 0 0 -40,292 0 0 0 0 -40,292 Transactions with owners 0 0 0 0 0 0 0 -40,292 0 0 0 0 -40,292 Transfer of the previous year's profit or loss to retained earnings 0 0 0 0 0 0 0 23,864 -23,864 0 0 0 0 Transfer to other reserves based on the resolution of the General Meeting 0 0 0 0 0 0 23,864 -23,864 0 0 0 0 0 Transfer to other reserves based on the resolution of the Management Board 0 0 0 0 0 0 55,425 0 -55,425 0 0 0 0 Other changes in equity 0 0 0 0 0 0 0 -1 0 0 0 1 0 Changes in equity 0 0 0 0 0 0 79,289 -1 -79,289 0 0 1 0 Other 0 0 0 0 0 0 0 0 0 0 0 -1 -1 Balance as at 31 December 2024 272,721 180,956 50,434 4,065 -4,065 54,544 79,289 6,335 55,425 130 -1,669 1,783 699,948 Notes on pages 184 to 263 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 2024 182 Separate statement of changes in equity of the company Telekom Slovenije in 2023 in EUR thousand Called- up capital Capital surplus Profit reserves Retained earnings Fair value reserve for financial instruments Fair value reserve for hedging instruments in net amount Reserves for actuarial deficits and surpluses Total Legal reserves 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 January 2023 272,721 180,956 50,434 4,065 -4,065 54,544 0 26,076 20,793 -203 15 897 606,233 Net profit or loss for the period 0 0 0 0 0 0 0 0 23,864 0 0 0 23,864 Other comprehensive income for the period 0 0 0 0 0 0 0 0 0 68 -16 39 91 Total comprehensive income for the period 0 0 0 0 0 0 0 0 23,864 68 -16 39 23,955 Transfer of the previous year's profit or loss to retained earnings 0 0 0 0 0 0 0 20,793 -20,793 0 0 0 0 Other changes in equity 0 0 0 0 0 0 0 -242 0 -37 0 278 -1 Changes in equity 0 0 0 0 0 0 0 20,551 -20,793 -37 0 278 -1 Other 0 0 0 0 0 0 0 1 0 1 0 0 2 Balance as at 31 December 2023 272,721 180,956 50,434 4,065 -4,065 54,544 0 46,628 23,864 -171 -1 1,214 630,189 Notes on pages 184 to 263 are an integral part of these consolidated financial statements. Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 183 The consolidated and separate cash flow statement Telekom Slovenije Group Telekom Slovenije in EUR thousand Note I - XII 2024 I - XII 2023 I - XII 2024 I - XII 2023 Cash flows from operating activities Net profit for the period 55,188 47,065 110,850 23,864 Adjustments for: Depreciation/amortisation 11, 16, 17, 18 167,473 164,431 140,553 137,869 Impairment and write-offs of property, plant and equipment, and intangible assets 417 8,736 1,162 2,959 Gain/loss on disposal of property, plant and equipment -809 -2,210 -615 -3,881 Impairment and write-off of inventories 12 1,469 902 1,453 852 Net impairment of receivables and contract assets 12 10,610 5,359 9,894 4,394 Adjustment for provisions 1,955 2,597 1,015 2,068 Finance income -1,076 -1,986 -86,661 -4,101 Finance expenses 16,141 17,262 13,929 19,188 Income tax expense 1,801 427 -1,865 -1,018 Cash flow from operating activities prior to changes in working capital and provisions 253,169 242,583 189,715 182,194 Change in inventories 669 1,833 686 1,957 Change in trade and other receivables -13,320 -17,518 -10,003 -13,539 Change in accrued and deferred asset items and contract assets -801 -1,037 77 149 Change in provisions 702 1,109 2,513 1,789 Change in trade and other payables 21,310 15,021 -3,249 22,009 Change in accrued and deferred liability items and contract liabilities -2,220 6,014 -930 1,640 Income tax paid -2,375 -2,300 -2,100 -1,245 Net cash from operating activities 257,134 245,705 0 176,709 194,954 Cash flows from investing activities Proceeds from investing activities 1,999 3,674 28,164 32,753 Proceeds from the sale of property, plant and equipment 735 3,171 825 4,662 Dividends received 125 166 1,270 271 Proceeds from interest 1,077 255 2,537 3,452 Receipts from the sale of investments 0 37 0 37 Proceeds from repayment of loans and deposits 62 45 23,532 24,331 Disbursements from investing activities -198,560 -171,140 -143,723 -143,518 Disbursements from property, plant and equipment -113,461 -95,588 -87,335 -70,157 Disbursements from intangible non-current assets -85,099 -75,352 -53,744 -69,131 Investments in subsidiaries and associated companies 0 0 -500 0 Disbursements for loans and deposits issued 0 -200 -2,144 -4,230 Net cash used in investing activities -196,561 -167,466 -115,559 -110,765 Cash flows from financing activities Proceeds from financing activities 15,384 100,000 15,384 100,000 Proceeds from borrowings 15,384 100,000 15,384 100,000 Disbursements from financing activities -112,559 -160,195 -111,855 -159,439 Disbursements for approval of borrowings and issue of bonds 0 -60 0 -60 Repayment of lease liabilities – principal -9,976 -10,243 -9,702 -10,002 Repayment of non-current borrowings -45,553 -132,527 -45,553 -132,527 Disbursements for interest -16,738 -17,365 -16,308 -16,850 Payment of dividends -40,292 0 -40,292 0 Net cash used in financing activities -97,175 -60,195 -96,471 -59,439 Net increase/decrease in cash and cash equivalents -36,602 18,044 -35,321 24,750 Opening balance of cash 55,479 37,382 44,376 19,573 Effect of exchange rate changes on cash and cash equivalents 2 53 2 53 Closing balance of cash 18,879 55,479 9,057 44,376 Notes on pages 184 to 263 are an integral part of these consolidated financial statements. Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 184 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, d. d., (hereinafter: Telekom Slovenije or the Company) and its subsidiaries comprise the Telekom Slovenije Group (hereinafter: Telekom Slovenije Group or the 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. Telekom Slovenije is a public limited company. The Company's registered address is: Cigaletova 15, 1000 Ljubljana, Slovenia. The company’s shares are listed on the Prime Market of the Ljubljana Stock Exchange. The Company’s largest owner is the Republic of Slovenia, which holds a 62.54% share in the company Telekom Slovenije (Note 30 Equity and reserves). The core activity of the Group is the provision of telecommunication services and products. These include fixed-line and mobile telephony services, internet and television services, installation and maintenance of telecommunications networks, systems integration of business solutions, digital content and advertising. With its companies, Telekom Slovenije Group operates in the following countries: Slovenia, Bosnia and Herzegovina, Serbia, Montenegro, Kosovo and North Macedonia. The attached consolidated and separate financial statements are prepared for the Telekom Slovenije Group and the company Telekom Slovenije for 2024, with comparative statements for 2023. 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 11 March 2025. The financial statements for the years 2024 and 2023 were audited by the auditing firm Deloitte Revizija, d. o. o., which issued 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 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 185 assumption (accounting assumption of going concern). The Group’s and the Company's operations are not of seasonal nature. 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 considers 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 31 October 2024 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 16, - property, plant and equipment – Note 3.c and Note 17. Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 186 Investments in subsidiaries For impairment of investments in subsidiaries, the Group checks indicators of impairment particularly for companies whose investment significantly (over 20%) exceeds the Company's share capital and for companies that reported negative operating results and/or disclosed negative equity, or if there were other indicators of impairment. In such cases, the Company obtains an estimate of the recoverable amount of investments in subsidiaries by a certified business appraiser. The recoverable amount equals fair value less the costs of sale or value in use, whichever is higher. Cash generating units (CGU) at Group level are individual group companies. For 2024, based on checking for signs of impairment, the Group opted to assess the recoverable amount for its subsidiaries TSmedia, Soline, SIOL Prishtina, SiOL Sarajevo and IPKO. 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, 26Trade 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.p 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. Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 187 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 several 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 2024. Their adoption has not materially impacted the disclosures, or the amounts reported in these financial statements. • 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. Amendments issued on January 2020 provide more general approach to the classification of liabilities under IAS 1 based on the contractual arrangements in place at the reporting date. Amendments issued in 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. Amendments add disclosure requirements, and ‘signposts’ within existing disclosure requirements to provide qualitative and quantitative information about supplier finance arrangements. • Amendments to IFRS 16 Leases - Lease Liability in a Sale and Leaseback issued by IASB on 22 September 2022. 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. Changes to other accounting standards for the group and the company are not relevant and will not affect the financial statements, so 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 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. 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 below will have a material impact on the financial statements in future periods. • Amendments to IFRS 1, IFRS 7, IFRS 9, IFRS 10 and IAS 7 - Annual Improvements to IFRS Accounting Standards - Volume 11 issued by IASB on 18 July 2024. These amendments include clarifications, simplifications, corrections and changes in the following areas: (a) hedge accounting by a first-time adopter (IFRS 1); (b) gain or loss on derecognition (IFRS 7); (c) disclosure of deferred difference between fair value and transaction price (IFRS 7); (d) introduction and credit risk disclosures (IFRS 7); (e) lessee derecognition of lease liabilities (IFRS 9); (f) transaction price (IFRS 9); (g) determination of a ‘de facto agent’ (IFRS 10); (h) cost method (IAS 7). Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 188 • Amendments to IFRS 9 and IFRS 7 - Amendments to the Classification and Measurement of Financial Instruments issued by IASB on 30 May 2024. Amendments clarify the classification of financial assets with environmental, social and corporate governance (ESG) and similar features. Amendments also clarify the date on which a financial asset or financial liability is derecognised and introduce additional disclosure requirements regarding investments in equity instruments designated at fair value through other comprehensive income and financial instruments with contingent features. • Amendments to IFRS 9 and IFRS 7 - Contracts Referencing Nature-dependent Electricity issued by IASB on 18 December 2024. The own-use requirements in IFRS 9 are amended to include the factors an entity is required to consider when applying IFRS 9:2.4 to contracts to buy and take delivery of renewable electricity for which the source of production of the electricity is nature-dependent. The hedge accounting requirements in IFRS 9 are amended to permit an entity using a contract for nature- dependent renewable electricity with specified characteristics as a hedging instrument to designate a variable volume of forecast electricity transactions as the hedged item if specified criteria are met and to measure the hedged item using the same volume assumptions as those used for the hedging instrument. Amendments to IFRS 7 and IFRS 19 introduce disclosure requirements about contracts for nature-dependent electricity with specified characteristics • 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. • 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. • IFRS 18 Presentation and Disclosures in Financial Statements issued by IASB on 9 April 2024 will replace IAS 1 Presentation of Financial Statements. The Standard introduces three sets of new requirements to improve companies’ reporting of financial performance and give investors a better basis for analysing and comparing companies. The main changes in the new standard compared with IAS 1 comprise: (a) The introduction of categories (operating, investing, financing, income tax and discontinued operations) and defined subtotals in the statement of profit or loss; (b) The introduction of requirements to improve aggregation and disaggregation; (c) The introduction of disclosures on Management-defined Performance Measures (MPMs) in the notes to the financial statements. • IFRS 19 Subsidiaries without Public Accountability: Disclosures issued by IASB on 9 May 2024. The standard permits a subsidiary to provide reduced disclosures when applying IFRS Accounting Standards in its financial statements. IFRS 19 is optional for subsidiaries that are eligible and sets out the disclosure requirements for subsidiaries that elect to apply it. 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 2024. 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. Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 189 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 influence 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 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 at 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 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 190 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 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 possible impairment 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 2024 Groups of intangible assets Useful lives in years - concessions 13 to 20 - licences 1 to 10 - programme rights – TV content 11 months 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 the costs that are directly related to obtaining subscribers and represent additional costs the Group and the Company have with obtaining contracts with customers and which would not have been incurred had the Group and the Company not obtained the contract. Sales commissions are recorded as costs of obtaining contracts with customers and are amortised in line with the transfer of the economic benefits to the customer, i.e. within the period of expected contract term. 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. Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 191 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 increase their cost if it is probable that their future economic benefits will flow to the Group or Company. The progress of projects and investments is monitored by the Group and the Company through project administrators on a monthly basis. If it is established that a certain project will not be finished, a write- off is carried out. Upon initial recognition, property, plant and equipment are measured at cost and reduced according to value due to depreciation or potential impairment. Residual values and useful lives of significant items of property, plant and equipment are reassessed on an annual basis and if expectations differ significantly from earlier estimates, depreciation rates are adjusted for the current and future periods. The effect of the change in estimate is described by the Group and the Company in the notes on the accounting period in which the change in estimate occurred. Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 192 Estimated useful lives of groups of property, plant and equipment in 2024 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 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 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 193 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 occurrence, the recoverable amount is determined. In the event of impairment, such impairment is recognised in the statement of profit or loss in line with IAS 36. Lease liabilities are recognised on the asset’s lease commencement date at the present value of lease payments that have not been paid yet. Liabilities represent discounted contractually agreed rents, while some contracts also include adjustment of liabilities to amend the cost of living index. The discount rate is determined using the interest rate derived from borrowing costs and based on the interest rate at which the Group and the Company, taking credit rating into account, can obtain a loan for the purchase of property, plant and equipment of a comparable amount (value) and maturity. Upon subsequent measurement of lease liabilities, the latter increase to reflect the interest on the lease liability and decrease by the value of the lease payments, additionally, in the event that the lease terms change, the present value is remeasured based on a reassessment of future lease payments or a change in the lease term (duration or price). After the lease commencement date, the financial liability from lease is remeasured using the new discount rate if the lease term or future lease payment amount has changed. If a lease is terminated or there is a decrease in scope, the gain or loss associated with the partial or full termination of the lease is recognised in the statement of profit or loss. Lease liabilities are recognised under non-current liabilities, except for liabilities that will be settled over the following 12-month period from the balance sheet date and are stated in the balance sheet as current lease liabilities. Leases comprise the lease of lines, business and technological premises, the creation of easement or lease of land or premises for base stations, and functional locations. Inter-operator leases in Slovenia are regulated by published price lists for most services. Non-current leases are subject to conclusion of contracts with a fixed-term period of predominantly 15 years. For business premises, base stations and functional locations, easement compensation or lease payment is set on the basis of agreements, valuations and the lessors’ price lists. Lease contracts are Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 194 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 becomes 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 the 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 the 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. Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 195 Financial assets measured at fair value through other comprehensive income This category includes investments in debt and equity financial instruments or shares and interests of other companies. Upon initial recognition of investments in equity instruments not held for trading, the Group and the Company irrevocably decide to measure these investments at fair value through other comprehensive income. This decision is made individually for each asset. The fair value of investments that are listed on the stock exchange is measured at the closing stock market price on each reporting date. Investments are recognised/derecognised as at the date of purchase/sale, respectively. Any gains or losses arising from changes in fair value of the financial asset are recognised in other comprehensive income and presented directly in capital within the financial instruments fair value reserve in the net amount. Amounts presented in other comprehensive income may not be subsequently transferred to profit or loss. However, the Group and the Company may transfer the cumulative gain or loss within equity’s item. Dividends received on such investments are recognised in profit or loss only: – upon establishment of the company’s right to receive a dividend, – if it is likely that economic benefits arising from the dividend will flowto 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, recognises 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 IFRS 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 increased since initial recognition. In this context, they consider all relevant and provable information, including future-facing information. Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 196 To estimate impairment, the Group and the Company apply the ECL measurement methodology, which is based on the risk parameters: - exposure at default (EAD), - probability of default (PD); and - loss given default (LGD). The risk parameter assessments, which they consider in estimating expected credit losses, are based on a combination of own and external (market) data. For the purpose of potential impairment, financial assets are assessed collectively for operating receivables and individually for other financial assets. If, on the reporting date, the credit risk for said financial instrument has not significantly increased since initial recognition, the Group and the Company measure impairment loss for the relevant financial instrument as an amount that is equivalent to expected credit losses over a 12-month period. For trade receivables and current contract assets that do not include a significant financing component, a simplified approach is used which requires impairment loss to always be measured as an amount that is equivalent to expected credit losses in the entire duration. In 2024, 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. 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, Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 197 namely: − comparing the investment's book value with the proportionate share of the book value of the total equity of the subsidiary on the cut-off date. Indication of impairment exists when the book value of the investment on cut-off date exceeds the subsidiary’s proportionate share of equity by more than 20%; − comparing the key indicators for the financial year with projections of the subsidiary’s operation. g. Investment property Investment property is initially stated at cost. The cost of an investment property comprises its purchase price and costs that may be directly attributed to the acquisition (transaction costs). After initial recognition, investment property is stated at cost less accumulated depreciation and impairment losses. Depreciation is calculated on a straight-line basis over the useful lives of the assets. Land is not 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 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. Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 198 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, and short-term deposits with original maturity of up to 3 months, where the risk of fair value change is minimal. l. Provisions Provisions are recognised if a present obligation (legal or constructive) exists as a result of a past event and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and if the amount of the obligation can be estimated reliably. If the effect is material, provisions are determined by discounting the expected future cash flows. Obligations with uncertain timing and amount are treated depending on management’s estimation of the amount and timing of the obligation and the probability of an outflow of resources that will be required to settle the obligation, either legal or constructive. Contingent liabilities are not recognised in financial statements as their exact amount could not be measured reliably or their existence will be confirmed only upon the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Group and the Company. The management of each Group company continually assess contingent liabilities to determine whether an outflow of resources embodying economic benefits has become probable. In this case, a provision is recognised in the financial statements for 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 rewards by the time of retirement. At each year-end, the amount of provisions is assessed and either increased or decreased accordingly. This applies mostly for determining the discount rate, the estimate of staff fluctuation and salary growth. The estimate on these liabilities can change in the future due to the complexity of the actuarial calculation and its long- term nature. Assumptions applied are disclosed in Note 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 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 199 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. 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 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 200 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 includes the income from financial services (VALÚ Moneta), eHealth, Big data, and insurance. Revenue from wholesale market comprises broad-band access, stream broad-band access, network interconnection, lease of network, national tracking, and foreign inter-operator services. Revenue from network interconnection is recognised based on the estimated value expected in view of the traffic performed in the previous month. Monthly differences between estimated and actual revenue arise mostly as a result of the tolerance allowed with data about traffic, and the price changes. The tolerance allowed differs from one contract to another, amounting to a maximum of 2% of the contractual value. These differences are included in profit or loss when the actual balance of revenue is established. Revenue is recognised on the gross basis, as the Group provides services by means of own network and equipment, based on contractually defined prices. Revenue is recognised in the period in which the services are rendered. Other revenue and other merchandise of the Telekom Slovenije Group include revenue generated through network construction and maintenance by GVO, business IT solutions provided by Avtenta, salt and related products of the company Soline, and multi-media contents of TSmedia. 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 stage of completion 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. Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 201 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-off of liabilities from contracts with customers is recognised. Customer loyalty program With the loyalty program, the Group and the Company encourage customers to purchase goods and services. By joining the loyalty program and by purchasing goods or services, the customer is assigned a credit that can be redeemed as a benefit when purchasing goods or services. With each euro of payment, the buyer is rewarded with 1 point, which is worth 1 cent (100 points = 1 euro). The points are redeemable one year from the date of purchase (until the end of the month in which they were 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. Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 202 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 recognised 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 2024 and 31 December 2023, statement or profit or loss for 2024, and additional information necessary to make adjustments of cash inflows and outflows. 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; Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 203 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 108 As at the reporting date, the Telekom Slovenije Group comprises the controlling company Telekom Slovenije and the following subsidiaries: 108 GRI GS 102-45. Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 204 SUBSIDIARY COMPANIES Share in Share in Book value of Profit or loss in EUR Tax Share in voting voting equity in EUR thousand Title Address Country Activity rate equity in rights in % rights in % thousand % I - XII 2024 I - XII 2023 I - XII I - XII I - XII I - XII 2024 2023 2024 2023 SLOVENIA GVO, gradnja in construction, maintenance 1 vzdrževanje Cigaletova 10, Slovenia works and management of 22% 100% 100% 100% 32,405 29,433 2,735 1,381 telekomunikacijskih Ljubljana telecommunications omrežij, d.o.o. network AVTENTA, napredne 2 poslovne rešitve, Stegne 19, Ljubljana Slovenia system integrator 22% 100% 100% 100% 2,701 3,145 499 293 d.o.o. TSmedia, medijske Cigaletova 15, multimedia and internet 3 vsebine in storitve, Ljubljana Slovenia content 22% 100% 100% 100% 408 347 39 72 d.o.o. production of salt and 4 SOLINE Pridelava Seča 115, Portorož Slovenia preservation and 22% 100% 100% 100% 486 412 -423 -465 soli, d.o.o. management of a landscape park 5 TSinpo, storitveno in Vojkova cesta 58, Slovenia paper and cardboard tubes 22% 100% 100% 100% 153 128 28 30 invalidsko podjetje, d.o.o. Ljubljana OPTIC-TEL Cigaletova 10, 6 telekomunikacije Ljubljana Slovenia telecommunication services 22% 100% 100% 100% 5,368 6,261 9 272 d.o.o. INFRATEL, Cigaletova 10, 7 telekomunikacijska Ljubljana Slovenia telecommunication services 22% 100% 100% 100% 5,353 5,130 224 8 infrastruktura, d.o.o. 8 USTANOVA SRČNI Cigaletova 15, Slovenia humanitarian organisation 22% 100% 100% 100% 19 21 -3 0 SKLAD Ljubljana Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 205 SUBSIDIARY COMPANIES Share Share in Share in Book value of equity in Profit or loss in EUR Title Address Country Activity Tax in voting voting EUR thousand thousand rate equity rights in % rights in % in % I - XII 2024 I - XII 2023 I - XII 2024 I - XII 2023 I - XII 2024 I - XII 2023 ABROAD IPKO Lagija Ulpiana, 9 Telecommunications Rruga "Zija Kosovo telecommunication 10% 100% 100% 100% 75,629 51,669 23,960 21,886 LLC Shemsiu", nr 34, services Prishtina 10 SIOL d.o.o. Margaretska 3, Croatia telecommunication 10% 100% 100% 100% 882 849 62 34 Zagreb services SiOL d.o.o. Ul. Branilaca Bosnia and telecommunication 11 Sarajevo Sarajeva br.12, Herzegovina services 10% 100% 100% 100% 2,540 2,280 263 239 Sarajevo Džordža Vašingtona telecommunication 12 SIOL doo Podgorica 108/A36, The Montenegro services 9% 100% 100% 100% 2,782 2,736 47 116 Capital Plaza, Podgorica p. Naum 13 SIOL DOOEL Naumovski borce North telecommunication 10% 100% 100% 100% 1,459 1,602 74 86 Skopje no.50/2-12, Skopje Macedonia services - Centar SIOL DOO 27. marta br. 11/I, telecommunication 14 BEOGRAD- Beograd Palilula Serbia services 15% 100% 100% 100% 526 486 35 13 PALILULA Peyton, Str. Mujo telecommunication 15 SIOL Prishtina LLC Ulqinaku 5/1, Kosovo services 10% 100% 100% 100% 565 486 81 111 10000 Pristina Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 206 Changes in the composition of the Group In 2024, there were no changes in the composition of the 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 2024 207 Segment reporting in EUR thousand Slovenia Other countries Eliminations and Total adjustments I-XII 2024 I-XII 2023 I-XII 2024 I-XII 2023 I-XII 2024 I-XII 2023 I-XII 2024 I-XII 2023 Sales revenue 622,711 609,832 89,731 85,081 0 0 712,442 694,913 Revenue from 73,042 89,336 9,713 9,540 -82,755 -98,876 0 0 subsidiaries Total segment income 695,753 699,168 99,444 94,621 -82,755 -98,876 712,442 694,913 Other operating income 5,895 11,806 1,676 1,448 0 0 7,571 13,254 Costs of goods and material -89,555 -88,948 -2,850 -3,064 0 0 -92,405 -92,012 sold Cost of materials and energy -20,494 -28,108 -2,318 -2,263 0 0 -22,812 -30,371 Cost of services -194,136 -189,285 -23,790 -22,399 0 0 -217,926 -211,684 Labour costs -122,191 -119,154 -7,765 -6,974 0 0 -129,956 -126,128 Depreciation/amortisation -143,014 -139,287 -24,459 -25,144 0 0 -167,473 -164,431 Other operating expenses -14,602 -17,786 -1,996 -1,617 0 0 -16,598 -19,403 Total operating expenses -583,992 -582,568 -63,178 -61,461 0 0 -647,170 -644,029 Operating profit per 117,656 128,406 37,942 34,608 -82,755 -98,876 72,843 64,138 segment Finance income 0 0 0 0 0 0 2,795 2,015 Finance expenses 0 0 0 0 0 0 -18,649 -18,661 Profit before tax 0 0 0 0 0 0 56,989 47,492 Corporate income tax 0 0 0 0 0 0 -7,150 -4,890 Deferred tax 0 0 0 0 0 0 5,349 4,463 Net profit for the period 55,188 47,065 Other data by segment Slovenia Other countries Eliminations and Total adjustments 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 2024 2023 2024 2023 2024 2023 2024 2023 Segment assets 1,399,130 1,350,732 166,220 135,536 -226,817 -168,402 1,338,533 1,317,866 Segment liabilities 652,290 675,667 81,836 75,429 -68,540 -91,868 665,586 659,228 The amount from mutual relations between companies excluded from the consolidated financial statements. EUR 89,628 thousand (in 2023: EUR 84,795 thousand) of income from other countries, which as at 31 December stands at EUR 89,731 thousand (in 2023: EUR 85,081 thousand), refers to Kosovo, where the Group has two subsidiaries. The segment assets referring to other countries, which total EUR 166,220 thousand as at 31 December 2024 (in 2023: EUR 135,536 thousand), stand at EUR 152,539 thousand (in 2023: EUR 121,176 thousand) for the state of Kosovo. Segment income in EUR thousand Slovenia Other countries Total I-XII 2024 I-XII 2023 I-XII 2024 I-XII 2023 I-XII 2024 I-XII 2023 Mobile services on end-customer market 212,198 214,335 60,236 54,965 272,434 269,300 Fixed-line telephone services on end-customer market 203,812 192,624 22,539 21,418 226,351 214,042 Additional services 5,677 5,166 0 0 5,677 5,166 Wholesale market 167,937 165,495 6,956 8,698 174,893 174,193 Other revenue and merchandise 33,087 32,212 0 0 33,087 32,212 Total sales revenue 622,711 609,832 89,731 85,081 712,442 694,913 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 208 in EUR thousand Slovenia Other countries Total I-XII 2024 I-XII 2023 I-XII 2024 I-XII 2023 I-XII 2024 I-XII 2023 Revenue from the sale of services 528,070 515,560 86,541 82,025 614,611 597,585 Revenue from the sale of goods 94,641 94,272 3,190 3,056 97,831 97,328 Total sales revenue 622,711 609,832 89,731 85,081 712,442 694,913 7. Sales revenue Breakdown of sales revenue by service groups Telekom Slovenije Group Telekom Slovenije in EUR thousand I - XII 2024 I - XII 2023 I - XII 2024 I - XII 2023 Mobile services on end-customer market 272,434 269,300 212,392 214,524 Fixed-line telephone services on end-customer 226,351 214,042 202,229 191,250 market Additional services 5,677 5,166 5,843 5,327 Wholesale market 174,893 174,193 170,564 168,511 Other revenue and merchandise 33,087 32,212 23,190 22,057 Total sales revenue 712,442 694,913 614,218 601,669 Telekom Slovenije Group Telekom Slovenije in EUR thousand I - XII 2024 I - XII 2023 I - XII 2024 I - XII 2023 Revenue from the sale of services 614,611 597,585 516,017 503,186 Revenue from the sale of goods 97,831 97,328 98,201 98,483 Total sales revenue 712,442 694,913 614,218 601,669 Revenue from sales in the Telekom Slovenije Group amounted to EUR 712.4 million in 2024, which is EUR 17,529 thousand more than in 2023. 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 the 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 recognised in the net amount, without VAT and other taxes collected on behalf of the state. The Company expects that 73.7% of the transaction price allocated to unfulfilled obligations arising from 12- or 24-month customer subscriptions as at 31 December 2024 will be recognised as revenue in the amount of EUR 61,882 thousand in the next reporting period. The remaining 26.3% or EUR 22,048 thousand will be recognised in the financial year 2026. In 2023, 73.7% or EUR of 75,739 thousand of the transaction price allocated to unfulfilled obligations arising from 12- or 24-month customer subscriptions was recognised as revenue in the following reporting period. The remaining 26.2% or EUR 26,912 thousand will be recognised in the financial year 2025, and 0.02% or EUR 182 thousand will be recognised in the financial year 2026. All other contracts with customers are valid for a period of one year or less or are charged according to the agreed term. The Group and the Company used the practical expedient provided under IFRS 15.121 and chose not to disclose information about the unsatisfied performance obligations. In 2024, the Group and the Company recognised EUR 4,275 thousand in revenue (in 2023: EUR 5,262 thousand), which was included at the start of the period under the balance of liabilities from contracts Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 209 with customers. • In the mobile services on end-customer market, revenue has increased mostly due to an increased number of users in IPKO. In Telekom Slovenije, revenue was lower also due to longer replacement cycles for mobile goods, resulting in lower revenue from goods. • In the fixed-line telephone services on end-customer market within the Telekom Slovenije Group revenue increased, both in Telekom Slovenije mainly due to higher sales of IT and broadband services, and in IPKO. • Additional sources of revenue include revenue from financial services, eHealth, and insurance. All revenues in 2024 record growth. • We have also perceived growth of wholesale revenue, mainly due to higher revenues from international wholesale. • Other revenue and merchandise are higher compared to the values in the same period in 2023, which is due to higher revenue from e-commerce in Telekom Slovenije. Revenue from leases The Telekom Slovenije Group generated EUR 12,801 thousand of revenue from leases in 2024 and EUR 13,130 thousand in 2023. The company Telekom Slovenije generated EUR 13,830 thousand of revenue from leases in 2024 and EUR 14,220 thousand in 2023. Non-discounted leases received in the period: in EUR thousand Telekom Slovenije Group Telekom Slovenije Maturity 2024 2023 2024 2023 - up to 1 year 8,950 7,510 8,764 8,613 - 1 to 2 years 8,358 7,385 8,171 8,488 - 2 to 3 years 12,364 6,792 12,177 7,896 - 3 to 4 years 7,481 10,794 7,294 11,897 - 4 to 5 years 6,290 5,934 6,103 7,037 - over 5 years 32,121 26,482 125,028 125,387 8. Other operating income Telekom Slovenije Group Telekom Slovenije in EUR thousand I - XII 2024 I - XII 2023 I - XII 2024 I - XII 2023 Government grants and other aids 2,150 6,492 643 4,105 Gains on disposal of property, plant and equipment 809 2,927 615 3,882 Revaluation operating income 72 4 0 0 Revenue from the write-off of liabilities from contracts 394 636 27 43 with customers Revenue from humanitarian foundation 68 93 0 0 Other revenue 4,078 3,102 2,559 1,598 Total other operating income 7,571 13,254 3,844 9,628 Revenues from received government and other aids mostly represent co-financing by the state and the European Union. The company GVO has acquired OŠO projects, which are co-financed by European funds under the Public Call for Co-financing the Construction of Open Next-Generation Broadband Networks, designated as GOŠO. Other revenues mainly refer to received compensations, reminder fees, court costs, and other expenses. Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 210 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 2024, the cost of goods sold of the Telekom Slovenije Group and the company Telekom Slovenije totalled EUR 92,405 thousand (in 2023: EUR 92,012 thousand) and EUR 97,187 thousand (in 2023: EUR 96,933 thousand). Costs of materials and energy Telekom Slovenije Group Telekom Slovenije in EUR thousand I - XII 2024 I - XII 2023 I - XII 2024 I - XII 2023 Costs of material 3,817 4,502 1,591 1,593 Costs of energy 18,995 25,869 15,953 22,637 Total costs of materials and energy 22,812 30,371 17,544 24,230 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 2024 I - XII 2023 I - XII 2024 I - XII 2023 Telecommunications services 112,419 110,469 110,053 108,288 Costs of leased lines, networks and platforms 6,448 5,271 10,567 8,560 Multimedia contents 9,845 10,736 9,045 10,013 Costs of subcontractors 26,877 25,366 21,494 19,062 Maintenance of property, plant and equipment 20,561 20,256 20,837 20,773 Other services 41,776 39,586 33,436 32,226 Total costs of services 217,926 211,684 205,432 198,922 The Group’s costs of services in 2024 are higher by EUR 6,242 thousand compared to 2023. In 2024, income from domestic wholesale was higher, resulting in higher costs of telecommunication services. The costs of leased lines, networks and platforms are slightly higher. The costs of services at the company Telekom Slovenije are EUR 6,510 thousand higher in 2024 compared to the previous year, mainly the costs of telecommunications. The costs of leased lines, networks and platforms are also slightly higher, as well as costs of subcontractors. Costs of other services mainly comprise advertising and sponsorship costs in the amount of EUR 9,211 thousand (in 2023: EUR 8,009 thousand), costs of intellectual and personal services in the amount of EUR 7,749 thousand (in 2023: EUR 6,517 thousand), and insurance premiums in the amount of EUR 3,177 thousand (in 2023: EUR 3,407 thousand). Costs of research and development amounted to EUR 16 thousand in 2024 (the same as in 2023). Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 211 10. Labour costs Telekom Slovenije Group Telekom Slovenije in EUR thousand I - XII 2024 I - XII 2023 I - XII 2024 I - XII 2023 Salaries and compensations 110,784 106,701 83,274 81,493 Social security contributions 21,073 20,497 16,608 16,312 - of which pension insurance 13,480 13,073 10,541 10,332 contributions Other labour costs 14,836 14,741 10,815 10,688 Provisions for anniversary bonuses -85 242 -66 175 Provisions for termination benefits 1,247 767 653 253 Capitalised own products and services -17,899 -16,820 -5,923 -5,145 Total labour costs 129,956 126,128 105,361 103,776 In the Telekom Slovenije Group, of the total capitalised own products and services in the amount of EUR 19,642 thousand (in 2023: EUR 18,694 thousand), EUR 17,899 thousand were disclosed under labour costs (in 2023: EUR 16,820 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 2024, the average number of employees by hours worked in the Telekom Slovenije Group was 3,127 (in 2023: 3,156 employees). In the company Telekom Slovenije, of the total capitalised own products and services in the amount of EUR 6,833 thousand (in 2023: EUR 5,933 thousand), EUR 5,923 thousand were disclosed under labour costs (in 2023: EUR 5,145 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 2024, the average number of employees by hours worked in the company Telekom Slovenije was 2,000 (in 2023: 2,043 employees). Employee structure by level of education Telekom Slovenije Group Telekom Slovenije Level/number of employees 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 Levels I–IV 256 273 85 95 Level V 920 933 656 666 Level VI 653 667 372 380 Level VII 1,207 1,208 834 835 Level VIII 165 172 102 107 Total 3,201 3,253 2,049 2,083 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 212 11. Depreciation/Amortisation Telekom Slovenije Group Telekom Slovenije in EUR thousand I - XII 2024 I - XII 2023 I - XII 2024 I - XII 2023 Amortisation of intangible assets 72,843 71,751 59,914 57,953 Depreciation of property, plant and equipment 81,828 79,735 68,424 67,624 Amortisation of right-of-use assets 12,689 12,807 12,102 12,149 Depreciation of investment property 113 138 113 143 Total amortisation/depreciation 167,473 164,431 140,553 137,869 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 2024 I - XII 2023 I - XII 2024 I - XII 2023 Provisions 792 1,588 429 1,640 Loss on disposal of intangible assets and 1,125 717 1,121 710 property, plant and equipment Impairment and write-off of inventories 1,469 902 1,453 852 Impairment of trade and other receivables 9,886 4,701 8,805 3,739 Adjustment and write-off of contract assets 1,119 657 1,117 655 Impairment of intangible assets and 417 8,736 0 2,910 property, plant and equipment Impairment of leased (ROU) assets 77 204 40 49 Capitalised own products and services -1,743 -1,874 -910 -788 Other humanitarian expenditure – Srčni 85 91 0 0 sklad Other expenses 3,371 3,681 2,888 3,248 Total other operating expenses 16,598 19,403 14,943 13,015 Impairment and write-offs of trade and other receivables in 2024 increased by EUR 5,185 thousand at the Group level and by EUR 5,066 thousand in Telekom Slovenije. The increase is primarily due to non- payment by certain domestic operators who have failed to settle their obligations for wholesale services. Telekom Slovenije has initiated appropriate legal proceedings against these operators. Other expenses mostly relate to the cost of compensation for the use of land. Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 213 13. Finance income and expenses Telekom Slovenije Group Telekom Slovenije in EUR thousand I - XII 2024 I - XII 2023 I - XII 2024 I - XII 2023 Income from dividends 125 166 1,270 272 Income from the reversal of the impairment of the 0 0 82,934 0 financial investment Interest income 2,609 1,720 4,113 5,104 Net exchange gains 17 0 21 12 Revenue from write-off of liabilities for right-of-use 37 114 36 112 assets Other finance income 7 15 7 11 Total finance income 2,795 2,015 88,381 5,511 Interest expenses 12,887 14,445 12,868 14,436 Foreign exchange net losses 0 2 0 0 Impairments and write-offs of investments 0 0 0 1,800 Interest expenses from lease liabilities 3,167 2,829 2,736 2,313 Other finance expenses 2,595 1,385 834 668 Total finance expenses 18,649 18,661 16,438 19,217 Net cash -15,854 -16,646 71,943 -13,706 The company Telekom Slovenije’s finance income includes dividends received and received interest on loans granted to subsidiaries. Income from the reversal of the impairment of the financial investment in the subsidiary relates to the reversal of the impairment of the company IPKO from 2010 in the amount of EUR 82,934 thousand. Note 19 Investments in subsidiaries. 14. Income tax, deferred tax assets and tax liabilities Telekom Slovenije Group Telekom Slovenije in EUR thousand I - XII 2024 I - XII 2023 I - XII 2024 I - XII 2023 Current tax payable -7,150 -4,890 -3,644 -2,062 Deferred tax assets/ liabilities 5,349 4,463 5,509 3,080 Total tax -1,801 -427 1,865 1,018 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 214 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 2024 2023 2024 2023 Profit/loss before tax 56,989 47,492 108,985 22,846 Income tax using the prescribed tax rate -12,538 -7,178 -23,977 -4,341 Tax effect of tax-free received dividends 26 30 265 49 Tax effect of utilizing tax reliefs in the current period 1,113 955 815 737 Effect of a changed tax rate on deferred taxes 0 5,748 0 5,700 Tax effect on non-deductible expenses -2,568 -2,237 -2,279 -2,029 Tax effect of deductible expenses/revenues that were 1,080 948 19,265 906 non-deductible in previous years Tax effect of utilizing past tax losses in the current 0 1,303 0 0 period Tax effect of recognizing/reversing deferred taxes on 7,775 -4 7,776 -4 unused tax reliefs Effect of higher/lower tax rates for companies abroad 3,311 8 0 0 Total tax -1,801 -427 1,865 1,018 Effective tax rate 3.2% 0.9% 0.0% 0.0% The tax loss of the Telekom Slovenije Group as at 31 December 2024 stood at EUR 108,336 thousand (31 December 2023: EUR 107,963 thousand). The tax loss of the company Telekom Slovenije as at 31 December 2024 stood at EUR 91,967 thousand (31 December 2023: EUR 91,967 thousand). The unused tax reliefs of the Group stood at EUR 72,816 thousand for 2024, and at EUR 74,620 thousand for 2023. The unused tax reliefs of the company Telekom Slovenije as at 31 December 2024 stood at EUR 71,884 thousand (31 December 2023: EUR 73,666 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 22% tax rate (2023: 19%). In the 2024–2028 period, corporate income will be taxed at a 22% tax rate, after which the tax rate is expected to return to the original 19%. Tax rates in other companies are defined in the table of subsidiaries in Note 5 Composition of the Telekom Slovenije Group. Deferred tax assets Telekom Slovenije Group Telekom Slovenije in EUR Through Through Through Through thousand 2024 2023 profit or comprehensive 2024 2023 profit or comprehensive loss income loss income Intangible assets, and 26,003 24,390 1,613 25,854 24,352 1,502 property, plant and equipment Investments 785 399 0 386 785 399 0 386 Operating 5,287 3,691 1,596 5,158 3,550 1,608 receivables Tax loss and unused tax 15,815 13,430 2,384 15,815 13,430 2.385 reliefs Provisions 289 293 -4 130 117 14 Deferred tax 48,179 42,203 5,589 386 47,742 41,848 5,509 386 assets Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 215 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 2024, the Group and the Company have EUR 15,815 thousand of deferred tax assets from unused investment incentives. In their tax declarations, the Group and the Company took into account the investment incentives from the previous years and used deferred tax assets in the amount of EUR 5,390 thousand. Deferred tax assets from investment incentives for 2024 were formed in the total amount. The Group and the Company take in consideration two criteria for tax planning: Annual business plan and applicable tax legislation. Future taxable profit is derived from the Annual business plan for 2025 with projections until 2029. 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 in EUR thousand 2024 2023 Through profit 2024 2023 Through profit or loss or loss Intangible assets, and property, 544 304 240 0 0 0 plant and equipment Deferred tax liabilities 544 304 240 0 0 0 Changes in deferred tax assets in EUR thousand Telekom Slovenije Group Telekom Slovenije Balance as at 1 January 2023 39,324 39,057 Utilisation -8,487 -8,427 Reversed -12,535 -12,429 Creation 23,901 23,647 Balance as at 31 December 2023 42,203 41,848 Utilisation -8,929 -8,874 Reversed -1,409 -1,311 Creation 16,314 16,079 Balance as at 31 December 2024 48,179 47,742 Changes in deferred tax liabilities in EUR thousand Telekom Slovenije Group Telekom Slovenije Balance as at 1 January 2023 1,893 293 Reversed -1,780 -476 Creation 191 183 Balance as at 31 December 2023 304 0 Creation 240 0 Balance as at 31 December 2024 544 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 2023: EUR 104,586 thousand, and deferred tax assets would be EUR 23,009 thousand; - as at 31 December 2024: EUR 91,967 thousand, and deferred tax assets would stand at EUR 20,233 thousand. In the Telekom Slovenije Group, the amount of deductible temporary differences, unused tax losses and unused investment incentives for which deferred tax assets were not formed amounts to: Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 216 - as at 31 December 2023: EUR 121,242 thousand, and deferred tax assets would total EUR 26,673 thousand; - as at 31 December 2024: EUR 108,964 thousand, and deferred tax assets would be EUR 23,972 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 2024 amount to EUR 114 thousand for the Telekom Slovenije Group (in 2023: EUR 932 thousand). Income tax receivables for 2024 amount to EUR 65 thousand for the company Telekom Slovenije (in 2023: EUR 442 thousand). Income tax payables The current income tax payables for 2024 amount to EUR 1.501 thousand for the Telekom Slovenije Group (in 2023: EUR 7 thousand). The current income tax payables for 2024 amount to EUR 1,257 thousand for the company Telekom Slovenije (no obligations for income tax 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 the Telekom Slovenije Group, excluding ordinary shares owned by the Company or the Group. The Company does not have any dilutive potential ordinary shares, which is why the basic and diluted earnings per share are equal. Weighted average number of ordinary shares Telekom Slovenije Group Telekom Slovenije in EUR thousand I - XII 2024 I - XII 2023 I - XII 2024 I - XII 2023 Total number of shares 6,535,478 6,535,478 6,535,478 6,535,478 Weighted average of own shares -36,836 -36,836 -36,836 -36,836 Weighted average of shares excluding own 6,498,642 6,498,642 6,498,642 6,498,642 shares Number of ordinary shares of the Telekom Slovenije Group Earnings per share Telekom Slovenije Group Telekom Slovenije in EUR thousand I - XII 2024 I - XII 2023 I - XII 2024 I - XII 2023 Net profit from continuing operations 55,188 47,065 110,852 23,864 The weighted average number of common 6,498,642 6,498,642 6,498,642 6,498,642 shares for earnings per share Earnings per share from operating 8.49 7.24 17.06 3.67 activities Number of ordinary shares of the Telekom Slovenije Group Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 217 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 88,112 thousand (31 Dec 2023: EUR 92,485 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 2029 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 29 September until 29 September 19,302 in the 2100 MHz band 2021 2036 Decision on the allocation of radio frequencies 09 April 2023 until 9 April 2036 4,329 in the 2100 MHz band Decision on the allocation of radio frequencies 01 July 2024 until 15 June 2041 328 in the 3400 MHz to 3420 MHz band Renewal of permit for 900 and 1800 MHz 30 July 2019 until 30 July 2039 11,734 Frequencies for 20 Years Allocation of 2x5MHz (1730 - 1735 MHz & 1 January 2021 until 7 January 1,355 1825 - 1830 MHz) in the 1800 MHz band 2039 Allocation of 2x10 MHz in the 800 MHz band 15 February 2023 until 15 February 3,467 2043 Allocation of 1x80 MHz in the 3.6 GHz Band 15 February 2023 until 15 February 1,865 2043 Allocation of 1x20 MHz in the 3.6 GHz Band 15 February 2023 until 15 February 443 2040 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 2024, 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 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 11.2% and the assessed long-term growth rate was 0%. The book value exceeds the recoverable amount, thus requiring no impairment of goodwill. Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 218 Telekom Slovenije Group Changes in intangible assets of the Telekom Slovenije Group in 2024 Cost of Concessions obtaining Computer Other Intangible in EUR thousand Goodwill and licences contracts software intangible assets under Total with assets construction customers Cost Balance as at 1 January 2024 49,737 436,637 24,670 255,783 67,606 5,244 839,677 Increases 0 28,556 0 0 132 54,638 83,326 Assets generated in the Group 0 0 0 0 0 1,773 1,773 Transfer into use 0 22,231 14,985 15,623 34 -52,873 0 Impairments and write-offs 0 -49,523 -6,933 -58,729 -37 -2 -115,224 Other transfers 0 0 0 10 356 0 366 Balance as at 31 December 49,737 437,901 32,722 212,687 68,091 8,780 809,918 2024 Allowance Balance as at 1 January 2024 46,019 299,193 10,788 227,451 52,205 267 635,923 Impairments and write-offs 0 -49,265 -6,933 -58,530 -37 0 -114,765 Other transfers 0 0 0 5 357 0 362 Depreciation/amortisation 0 42,866 9,507 18,565 1,905 0 72,843 Balance as at 31 December 46,019 292,794 13,362 187,491 54,430 267 594,363 2024 Carrying amount Balance as at 1 January 2024 3,718 137,444 13,882 28,332 15,401 4,977 203,754 Balance as at 31 December 3,718 145,107 19,360 25,196 13,661 8,513 215,555 2024 Other transfers include transfers between intangible assets and property, plant and equipment, transfers among groups of assets. Changes in intangible assets of the Telekom Slovenije Group in 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 Increases 0 0 0 1,126 0 0 1,126 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 2024 219 As at 31 December 2024, the Group disclosed contractual commitments for intangible assets in the amount of EUR 16,388 thousand (31 December 2023: EUR 7,179 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 2024 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 2024 3,602 293,809 24,670 242,612 19,336 4,954 588,983 Increases 0 0 0 0 0 52,274 52,274 Assets generated in the company 0 0 0 0 0 1,471 1,471 Transfer into use 0 21,768 14,985 14,003 34 -50,790 0 Impairments and write-offs 0 -23,353 -6,933 -56,659 -37 -1 -86,983 Other transfers 0 -3 0 10 0 1 8 Balance as at 31 December 2024 3,602 292,221 32,722 199,966 19,333 7,909 555,753 Allowance Balance as at 1 January 2024 0 186,751 10,788 212,194 16,871 0 426,604 Impairments and write-offs 0 -23,095 -6,933 -56,469 -37 0 -86,534 Other transfers 0 2 0 4 0 0 6 Depreciation/amortisation 0 32,832 9,507 17,224 351 0 59,914 Balance as at 31 December 2024 0 196,490 13,362 172,953 17,185 0 399,990 Carrying amount Balance as at 1 January 2024 3,602 107,058 13,882 30,418 2,465 4,954 162,379 Balance as at 31 December 2024 3,602 95,731 19,360 27,013 2,148 7,909 155,763 * Other transfers include transfers between intangible assets and property, plant and equipment, transfers among groups of assets. 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 Other transfers 0 283 0 -562 0 0 -279 Depreciation/amortisation 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 assets. The Group companies have unlimited property rights on intangible assets, which are free of encumbrances. Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 220 As at 31 December 2024, the Company disclosed contractual commitments for intangible assets in the amount of EUR 17,875 thousand (31 December 2023: EUR 8,740 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 2024 amount to EUR 4,057 thousand (31 December 2023: EUR 4,502 thousand) for the Telekom Slovenije Group and EUR 3,487 thousand (31 December 2023: 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. Changes in non-current deferred costs of development of the Telekom Slovenije Group in 2024 Other Other Computer intangible Computer intangible in EUR thousand software non-current software non-current Asset under Total Own work – assets Own External – assets construction development work – development External – development development Cost Balance as at 1 January 2024 10,125 4 40,156 318 296 50,899 Increases - external development 0 0 0 0 1,436 1,436 Increases - own development 0 0 0 0 398 398 Transfer from assets under construction 529 0 1,325 33 -1,887 0 Decreases -3,108 0 -11,407 0 0 -14,515 Balance as at 31 December 2024 7,546 4 30,074 351 243 38,218 Allowance Balance as at 1 January 2024 9,506 4 36,759 128 0 46,397 Decreases -3,108 0 -11,353 0 0 -14,461 Depreciation/amortisation 395 0 1,806 24 0 2,225 Balance as at 31 December 2024 6,793 4 27,212 152 0 34,161 Carrying amount Balance as at 1 January 2024 619 0 3,397 190 296 4,502 Balance as at 31 December 2024 753 0 2,862 199 243 4,057 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 221 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 current under Total Own work – assets Own External – assets – construction development 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 455 0 1,594 0 -2,049 0 construction Decreases -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 Decreases -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 company Telekom Slovenije in 2024 Other Other Computer intangible Computer intangible in EUR thousand software non-current software non-current Asset under Total Own work – assets Own External – assets construction development work – development External – development development Cost Balance as at 1 January 2024 7,657 4 38,302 318 235 46,516 Increases - external development 0 0 0 0 1,225 1,225 Increases - own development 0 0 0 0 294 294 Transfer from assets under construction 362 0 1,114 33 -1,509 0 Decreases -2,650 0 -11,214 0 0 -13,864 Balance as at 31 December 2024 5,369 4 28,202 351 245 34,171 Allowance Balance as at 1 January 2024 7,463 4 34,937 128 0 42,532 Decreases -2,650 0 -11,160 0 0 -13,810 Depreciation/amortisation 224 0 1,714 24 0 1,962 Balance as at 31 December 2024 5,037 4 25,491 152 0 30,684 Carrying amount Balance as at 1 January 2024 194 0 3,365 190 235 3,984 Balance as at 31 December 2024 332 0 2,711 199 245 3,487 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 222 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 Own non-current software non-current under Total work – assets Own External – assets construction development 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 Decreases -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 Decreases -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 17. Property, plant and equipment Significant increases in property, plant and equipment in use in 2024 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. 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 2024, 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. 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 394 thousand. In 2024, 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 2024 amounted to EUR 10,127 thousand (31 December 2023: EUR 4,884 thousand) and mostly refer to the set-up of telecommunications network. Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 223 Changes in property, plant and equipment of the Telekom Slovenije Group in 2024 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 2024 530,605 1,261,294 82,980 311,798 350,596 6,921 247 2,544,441 Difference from translation to 0 1 0 0 -151 0 0 -150 the presentation currency Increases 0 1,380 0 0 252 97,137 20 98,789 Fixed assets generated in the 0 0 0 0 0 17,050 0 17,050 Group Transfer into use 10,171 29,114 998 29,985 30,283 -100,551 0 0 Impairments and write-offs -4,065 -310 -6,374 -33,821 -27,875 -27 0 -72,472 Other transfers 0 -1,338 8 0 -2 1,376 0 44 Balance as at 31 December 536,711 1,290,141 77,612 307,962 353,103 21,906 267 2,587,702 2024 Allowance Balance as at 1 January 2024 244,001 991,555 77,949 257,340 275,709 11,390 0 1,857,944 Difference from translation to 0 0 0 0 -153 0 0 -153 the presentation currency Increases 22 0 2 2 37 0 0 63 Impairments and write-offs -4,015 -235 -6,367 -33,709 -23,963 0 0 -68,289 Depreciation/amortisation 13,365 24,435 1,699 13,476 28,853 0 0 81,828 Other transfers 2 -2 2 0 10 0 0 12 Balance as at 31 December 253,375 1,015,753 73,285 237,109 280,493 11,390 0 1,871,405 2024 Carrying amount Balance as at 1 January 2024 286,604 269,739 5,031 54,458 74,887 -4,469 247 686,497 Balance as at 31 December 283,336 274,388 4,327 70,853 72,610 10,516 267 716,297 2024 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 2024 224 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 2023 518,088 1,219,276 84,890 300,538 355,401 27,491 61 2,505,745 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 in the 0 0 0 0 0 16,205 0 16,205 Group Transfer into use 11,185 46,137 1,290 19,212 33,904 -111,728 0 0 Impairments and write-offs -1,624 -4,594 -3,648 -7,952 -39,784 -4,562 0 -62,164 Other transfers 2,956 -161 448 0 9 9 0 3,261 Balance as at 31 December 530,605 1,261,294 82,980 311,798 350,596 6,921 247 2,544,441 2023 Allowance Balance as at 1 January 2023 229,415 971,670 79,481 253,252 281,036 11,390 0 1,826,244 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-offs -798 -2,907 -3,634 -7,831 -35,085 0 0 -50,255 Depreciation/amortisation 13,509 22,807 1,830 11,911 29,678 0 0 79,735 Other transfers 1,790 -14 267 0 10 0 0 2,053 Balance as at 31 December 244,001 991,555 77,949 257,340 275,709 11,390 0 1,857,944 2023 Carrying amount Balance as at 1 January 2023 288,673 247,606 5,409 47,286 74,365 16,101 61 679,501 Balance as at 31 December 286,604 269,739 5,031 54,458 74,887 -4,469 247 686,497 2023 Other transfers include transfers between intangible assets and property, plant and equipment, transfers among groups of assets. Of total assets, the Telekom Slovenije Group leased out assets in the (carrying) amount: In 2024 Land, Mobile Assets in EUR thousand buildings, Cable Telephone network Other under Other Total and cable network exchanges equipment equipment construction lines Assets leased out under 5,471 0 0 0 1 0 267 5,739 operating lease 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 leased out 7,399 0 0 0 2 0 247 7,648 under operating lease The company Telekom Slovenije As at 31 December 2024, the Company disclosed contractual commitments for property, plant and equipment in the amount of EUR 22,808 thousand (31 December 2023: EUR 14,291 thousand), which relate to network construction, purchase of telecommunications equipment, acquisition and construction of real estate, and purchase of hardware and other equipment. Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 225 Changes in property, plant and equipment of the company Telekom Slovenije in 2024 Land, Mobile in EUR thousand buildings, Cable Telephone network Other Assets under Total and cable network exchanges equipment equipment construction lines Cost Balance as at 1 January 2024 505,515 1,158,489 81,552 195,407 331,395 14,311 2,286,669 Increases 0 0 0 0 0 84,353 84,353 Assets generated in the Company 0 0 0 0 0 5,361 5,361 Transfer into use 10,143 23,179 998 21,395 26,474 -82,189 0 Impairments and write-offs -3,965 -25 -6,374 -28,324 -25,428 -6 -64,122 Other transfers 1 -11 8 0 -17 9 -10 Balance as at 31 December 2024 511,694 1,181,632 76,184 188,478 332,424 21,839 2,312,251 Allowance Balance as at 1 January 2024 234,990 938,008 76,714 163,852 265,389 0 1,678,953 Increases 22 0 2 2 34 0 60 Impairments and write-offs -3,925 -18 -6,368 -28,213 -21,641 0 -60,165 Depreciation/amortisation 12,996 19,009 1,662 8,683 26,074 0 68,424 Other transfers 3 -2 0 0 -6 0 -5 Balance as at 31 December 2024 244,086 956,997 72,010 144,323 269,852 0 1,687,267 Carrying amount Balance as at 1 January 2024 270,525 220,481 4,838 31,555 66,006 14,311 607,716 Balance as at 31 December 2024 267,608 224,635 4,174 44,155 62,572 21,839 624,984 Other transfers include transfers between intangible assets and property, plant and equipment, transfers among groups of assets. Changes in property, plant and equipment of the company Telekom Slovenije in 2023 Land, Mobile in EUR thousand buildings, Cable Telephone network Other Assets 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 7,241 -161 448 0 9 1 7,538 Balance as at 31 December 2023 505,515 1,158,489 81,552 195,407 331,395 14,311 2,286,669 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 Decreases -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 2,927 -14 267 0 9 0 3,189 Balance as at 31 December 2023 234,990 938,008 76,714 163,852 265,389 0 1,678,953 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. The Company and the Group have unlimited property rights on property, plant and equipment, which are free of encumbrances. Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 226 Of total assets, the company Telekom Slovenije leased out assets in the (carrying) amount: In 2024 Land, Mobile Assets in EUR thousand buildings, Cable Telephone network Other under Other Total and cable network exchanges equipment equipment construction lines Assets leased out 10,780 0 0 0 1 0 0 10,781 under operating lease 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 leased out under operating 12,392 0 0 0 2 0 0 12,394 lease 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 2024 Base stations – Technological Lease of Lease in EUR thousand easement and premises – premises Vehicles of Other Total lease easement and land lines and lease Cost Balance as at 1 January 2024 85,401 9,514 11,970 3,104 23,363 4,345 137,697 Contract modifications 13,416 742 2,423 154 620 122 17,477 Increases - contract modifications 1,954 98 129 565 116 102 2,964 Decreases -448 -184 -255 -113 -441 -224 -1,665 Other transfers 0 1 -7 -24 9 -1 -22 Balance as at 31 December 2024 100,323 10,169 14,258 3,688 23,667 4,344 156,450 Allowance Balance as at 1 January 2024 35,032 4,093 7,587 1,369 8,110 2,301 58,492 Decreases -162 -79 -190 -97 -439 -203 -1,170 Depreciation/amortisation 7,515 748 1,575 706 1,739 406 12,689 Other transfers 3 -3 148 -24 -151 2 -25 Balance as at 31 December 2024 42,388 4,759 9,120 1,954 9,259 2,506 69,986 Carrying amount Balance as at 1 January 2024 50,369 5,421 4,383 1,735 15,253 2,044 79,205 Balance as at 31 December 2024 57,935 5,410 5,138 1,734 14,408 1,838 86,464 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 227 Changes in right-of-use assets of the Telekom Slovenije Group in 2023 Base stations – Technological Lease of Lease in EUR thousand easement and premises – premises Vehicles of Other Total lease easement and and land lines 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 Contract modifications 8,304 409 1,368 231 86 98 10,496 Increases - contract modifications 3,564 322 872 664 1,119 60 6,601 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 9,512 11,968 3,106 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 5,419 4,381 1,737 15,253 2,044 79,205 Changes in right-of-use assets of the company Telekom Slovenije in 2024 Base stations Technological Lease of Lease in EUR thousand – easement premises – premises Vehicles of Other Total and lease easement and and land lines lease Cost Balance as at 1 January 2024 66,326 8,376 4,939 2,753 55,949 711 139,054 Contract modifications 12,170 634 962 12 3,078 122 16,978 Increases - contract modifications 1,954 98 133 464 116 0 2,765 Decreases -408 -177 -254 -34 -440 0 -1,313 Balance as at 31 December 2024 80,042 8,931 5,780 3,195 58,703 833 157,484 Allowance Balance as at 1 January 2024 28,029 3,509 2,833 1,200 17,493 634 53,698 Decreases -147 -75 -189 -33 -440 0 -884 Depreciation/amortisation 6,391 649 736 615 3,629 82 12,102 Balance as at 31 December 2024 34,273 4,083 3,380 1,782 20,682 716 64,916 Carrying amount Balance as at 1 January 2024 38,297 4,867 2,106 1,553 38,456 77 85,356 Balance as at 31 December 2024 45,769 4,848 2,400 1,413 38,021 117 92,568 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 228 Changes in right-of-use assets of the company Telekom Slovenije in 2023 Base stations Technological Lease of Lease in EUR thousand – easement premises – premises Vehicles of Other Total and lease easement and and land lines lease Cost Balance as at 1 January 2023 60,695 7,994 4,054 2,456 44,461 633 120,293 Contract modifications 2,389 185 13 133 10,368 78 13,166 Increases - contract modifications 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 The amounts recognised in the statement of profit or loss in EUR thousand Telekom Slovenije Group Telekom Slovenije 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 Depreciation costs of the right-of-use assets 12,689 12,807 12,102 12,149 Interest expenses from lease liabilities 3,167 2,829 2,736 2,313 Expenses related to variable lease payments not included in the measuring of lease liabilities 34 42 33 40 Total 15,890 15,678 14,871 14,502 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 229 19. Investments in subsidiaries Telekom Slovenije holds a 100% interest in the following subsidiaries, the value of which, as at 31 December 2024, amounts to: in EUR thousand 31 Dec 2023 Increase 31 Dec 2024 GVO, d.o.o. 5,758 0 5,758 INFRATEL d.o.o. 3,469 0 3,469 OPTIC-TEL d.o.o. 4,352 0 4,352 SOLINE, d.o.o. 470 500 970 USTANOVA SRČNI SKLAD 3 0 3 TSmedia, d.o.o. 2,170 0 2,170 TSinpo, d.o.o 419 0 419 IPKO Telecommunications LLC 20,730 82,934 103,664 SiOL d.o.o. Sarajevo 1,710 0 1,710 SIOL d.o.o. 412 0 412 SIOL doo Podgorica 2,620 0 2,620 SIOL DOOEL Skopje 1,005 0 1,005 AVTENTA, d.o.o. 1,323 0 1,323 SIOL DOO BEOGRAD-PALILULA 100 0 100 SIOL Prishtina LLC 200 0 200 Investments in subsidiaries 44,741 83,434 128,175 Subsidiaries of the company GVO d.o.o. For 2024, based on checking for signs of impairment, the Company opted to assess the recoverable amount for its subsidiaries TSmedia, Soline, SIOL Prishtina, SiOL Sarajevo and IPKO. The recoverable amounts of individual companies were assessed by a certified business appraiser. For all investments in subsidiaries assessed for financial reporting purposes, the valuations did not indicate a need for impairment, as their recoverable amounts exceeded their carrying values. IPKO In 2010 and 2012, Telekom Slovenije impaired its investment in the subsidiary IPKO due to a decrease in the fair value of the investment, amounting to a total of EUR 109,295 thousand, in accordance with International Accounting Standard 36 – Impairment of Assets (IAS 36). At the end of 2024, the company undertook an assessment of the fair value of its investment in the subsidiary IPKO. The valuation was prepared by an independent certified business valuation expert. The recoverable amount of the 100% equity interest in IPKO for accounting reporting purposes is EUR 113,259 thousand, with a value range from EUR 103,664 to EUR 124,443 thousand. The valuation was conducted using the present value method of expected free cash flows for a five-year forecast period. The discount rate applied in the projection is 15.10%. Due to the many risks faced by IPKO, which could negatively impact its operations, Telekom Slovenije considered the lower end of the sensitivity analysis range as the most appropriate value, as this value most comprehensively includes the relevant risks. Therefore, the company reversed the impairment of the investment in IPKO, amounting to EUR 82,934 thousand. The reversal of impairments is recorded as an increase in the value of the investment in the subsidiary and an increase in financial income from the reversal of impairments, as explained in Note 13 Financial Income and Expenses. The reversal of the impairment has no impact on the corporate income tax of Telekom Slovenije or on the financial statements of the Telekom Slovenije Group. Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 230 Sensitivity analysis – change in net asset value of equity in thousand EUR EBITDA margin 44.30% 45.30% 46.30% WACC 16.1% 103,664 107,326 110,987 15.10% 109,317 113,259 117,200 14.10% 115,907 120,175 124,443 The fair value measurement is classified within Level 3 of the fair value hierarchy. 20. Other investments Non-current investments Telekom Slovenije Group Telekom Slovenije in EUR thousand 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 Investments in other shares and interests 2,840 2,454 2,840 2,454 Loans to companies 0 0 9,684 19,558 - of which to companies in the Group 0 0 9,684 19,558 Loans to employees 0 2 0 2 Other non-current financial assets 16 16 0 0 Total non-current investments 2,856 2,472 12,524 22,014 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 2,556 thousand (31 December 2023: EUR 2,170 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 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 Short-term loans to companies 0 0 6,445 17,958 of which to companies in the Group 0 0 6,445 17,958 Loans to employees 3 7 2 8 Other current financial assets 1 2 0 0 Bank deposits 1,000 1,037 0 36 Total current investments 1,004 1,046 6,447 18,002 Loans granted Telekom Slovenije Group Telekom Slovenije in EUR thousand 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 Long-term loans granted 0 2 9,684 19,560 Loans granted 0 0 9,684 19,558 Loans to employees 0 2 0 2 Short-term loans granted 3 7 6,447 17,966 Part of long-term loan falling due in 12 months 0 0 3,817 16,026 - loans granted Part of long-term loan falling due in 12 months 3 7 3 8 - loans to employees Short-term loans granted and interest 0 0 2,627 1,932 Balance at the end of the loan period 3 9 16,131 37,526 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. Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 231 The interest rate for loans granted to employees ranges between 4.08% and 4.13%. At Telekom Slovenije, long-term loans refer entirely to loans to subsidiaries. The interest rate for loans granted to subsidiaries ranges between 3.461% and 4.952%. 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 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 Non-current contract assets 4,977 5,183 4,583 4,753 Other non-current contract assets -804 -1,004 -804 -1,004 Total other non-current assets 4,173 4,179 3,779 3,749 In 2024, the Group impaired contract assets in the amount of EUR 1,119 thousand (in 2023: EUR 657 thousand), and the company Telekom Slovenije EUR 1,117 thousand (in 2023: EUR 655 thousand). 22. Deferred costs Telekom Slovenije Group Telekom Slovenije in EUR thousand 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 Prepaid leases 26 31 10 15 Other non-current assets 1,992 2,683 2,010 2,772 Total other non-current assets 2,018 2,714 2,020 2,787 Other non-current assets represent the balance of non-current deferred costs of license maintenance and similar costs. 23. Investment property Changes in investment property in 2024 Telekom Slovenije Group Telekom Slovenije in EUR thousand Land Buildings Total Land Buildings Total Cost Balance as at 1 January 2024 92 4,303 4,395 92 4,303 4,395 Increases 0 166 166 0 166 166 Balance as at 31 December 2024 92 4,469 4,561 92 4,469 4,561 Allowance Balance as at 1 January 2024 0 1,099 1,099 0 1,099 1,099 Depreciation/amortisation 0 113 113 0 113 113 Balance as at 31 December 2024 0 1,212 1,212 0 1,212 1,212 Carrying amount Balance as at 1 January 2024 92 3,204 3,296 92 3,204 3,296 Balance as at 31 December 2024 92 3,257 3,349 92 3,257 3,349 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 232 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 -1,894 -1,830 -3,724 -4,866 -2,019 -6,885 Balance as at 31 December 2023 92 4,303 4,395 92 4,303 4,395 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 -1,689 -1,223 -2,912 -1,689 -1,236 -2,925 Balance as at 31 December 2023 0 1,099 1,099 0 1,099 1,099 Carrying amount 0 0 0 0 0 0 Balance as at 1 January 2023 297 4,007 4,304 3,269 4,188 7,457 Balance as at 31 December 2023 91 3,205 3,296 91 3,205 3,296 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. As of 31 December 2024, all investment properties are owned by Telekom Slovenije. Among the investment properties, the following are reported: a building on Vilharjeva Street totalling 3,199 thousand EUR, land and buildings in Rakovnik, and other apartments totalling 151 thousand EUR (compared to 173 thousand EUR in 2023). 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. Revenue generated on investment property in 2024, recognised in the Group’s statement of profit or loss, equalled EUR 387 thousand (2023: EUR 404 thousand). Costs associated with investment properties in 2024 amounted to EUR 407 thousand (2023: EUR 400 thousand). The Group and the Company do not have any limited title to investment property, nor are investments subject to encumbrance. 24. Assets held for sale As at 31 December 2024, 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 2023 796 796 Transfer to property, plant and equipment -208 -208 Balance as at 31 December 2023 588 588 Transfer to property, plant and equipment 0 0 Balance as at 31 December 2024 588 588 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 233 25. Inventories Telekom Slovenije Group Telekom Slovenije in EUR thousand 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 Material 9,335 11,366 7,828 9,676 Products 1,124 891 0 0 Merchandise 13,687 12,545 12,690 11,500 Total inventories 24,146 24,802 20,518 21,176 In 2024, the Telekom Slovenije Group impaired and wrote off EUR 1,469 thousand worth of inventories (in 2023: EUR 902 thousand). In 2024, Telekom Slovenije wrote off or impaired EUR 1,453 thousand worth of inventories (in 2023: EUR 852 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 2024 31 Dec 2023 in EUR thousand Gross amount Allowance Net amount Net amount Non-current trade receivables 19,406 -192 19,214 19,524 Other receivables 28 0 28 161 Total trade and other receivables 19,434 -192 19,242 19,685 Current trade receivables 31 Dec 2024 31 Dec 2023 in EUR thousand Gross amount Allowance Net amount Net amount Trade receivables 152,101 -13,358 138,743 134,732 Trade receivables due from foreign operators 14,611 -1,442 13,169 9,965 Trade receivables due from domestic operators 28,477 -14,323 14,154 15,510 Total trade receivables 195,189 -29,123 166,066 160,207 Paid advances 2,552 0 2,552 6,005 VAT and other tax receivables 2,321 0 2,321 2,487 Other receivables 3,061 0 3,061 1,424 Total other receivables 7,934 0 7,934 9,916 Total trade and other receivables 203,123 -29,123 174,000 170,123 Trade receivables do not bear interest. Changes in allowances for receivables in EUR thousand 31 Dec 2024 31 Dec 2023 Balance as at 1 January -21,196 -17,974 Allowances during the year -12,429 -7,717 Reversal of allowances 3,573 3,918 Write-offs 737 577 Closing balance -29,315 -21,196 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 234 Telekom Slovenije 31 Dec 2024 31 Dec 2023 in EUR thousand Gross amount Allowance Net amount Net amount Non-current trade receivables 19,343 -192 19,151 19,524 Other receivables 28 0 28 160 Total trade and other receivables 19,371 -192 19,179 19,684 Current trade receivables 31 Dec 2024 31 Dec 2023 in EUR thousand Gross amount Allowance Net amount Net amount Trade receivables 133,758 -7,342 126,416 123,711 Receivables due from foreign operators 15,188 -1,449 13,739 10,646 Receivables due from domestic operators 30,293 -14,341 15,952 17,702 Total trade receivables 179,239 -23,132 156,107 152,059 Paid advances and warranties 2,439 0 2,439 5,934 VAT and other tax receivables 1,830 0 1,830 1,881 Other receivables 2,796 0 2,796 1,217 Total other receivables 7,065 0 7,065 9,032 Total trade and other receivables 186,304 -23,132 163,172 161,091 Changes in allowances for receivables in EUR thousand 31 Dec 2024 31 Dec 2023 Balance as at 1 January -16,164 -13,757 Allowances during the year -12,255 -7,259 Reversal of allowances 3,389 3,526 Write-offs 1,706 1,326 Closing balance -23,324 -16,164 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 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 Contract assets from mobile and fixed- 9,375 7,645 9,375 7,645 line segment Other contract assets 4,442 6,503 4,280 6,391 Total current contract assets 13,817 14,148 13,655 14,036 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 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 Deferred costs 7,852 6,708 4,779 4,855 Other 0 35 0 0 Total deferred assets 7,852 6,743 4,779 4,855 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 235 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 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 Cash on hand and bank balances 17,878 18,779 9,057 11,376 Short-term bank deposits with maturity of up to 1,001 36,700 0 33,000 three months Total cash and cash equivalents 18,879 55,479 9,057 44,376 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 2024 31 Dec 2023 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 941,624 14.41% 966,340 14.79% persons Foreign legal entities 488,694 7.48% 410,583 6.28% Pension Fund Management 365,175 5.59% 365,175 5.59% (Kapitalska družba d.d.) Slovenian Sovereign Holding (Slovenski državni holding d.d.) 277,839 4.25% 277,839 4.25% (SSH – SDH) Domestic financial companies 193,444 2.96% 247,339 3.78% and funds Domestic legal entities 144,297 2.21% 143,797 2.20% Own shares 36,836 0.56% 36,836 0.56% Total 6,535,478 100.00% 6,535,478 100.00% * 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 2024. Share premium The share premium may be used under the conditions and for the purpose set by the law. As at 31 December 2024, 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 represents revaluation surpluses. Share premium did not change in 2024. 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. Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 236 Treasury shares In 2024 the Company did not acquire treasury shares. As at 31 December 2024, 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 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. The retained earnings, which amounted to EUR 66,508 thousand as at 31 December 2023, and which are represented by net profits up to and including the year 2022, were used for the payment of dividends in the amount of EUR 40,292 thousand, representing EUR 6.20 gross per share, in accordance with the resolution of the General Meeting dated 7 February 2024. The remaining part of the retained earnings, amounting to EUR 26,216 thousand, was used in accordance with the resolutions of the General Meeting dated 17 June 2024, as follows: an amount of EUR 23,864 thousand, representing the net profit for the year 2023, was allocated to other profit reserves, and the remaining retained earnings of EUR 2,352 thousand, originating from retained earnings from previous years, remained unallocated as retained earnings and will be decided upon in future financial years. Determination of accumulated profit of Telekom Slovenije for 2024 in EUR Net profit for the year 2024 110,849,785.06 Net profit or loss brought forward 6,335,496.24 Transfer to other reserves based on the resolution of the Management Board -55,424,892.53 Decrease in non-current deferred development costs -3,487,384.23 Total 58,273,004.54 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. Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 237 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 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 Non-current contract liabilities 461 406 395 352 Non-current deferred revenue - leases 16,629 19,324 16,629 18,885 Total non-current contract liabilities 17,090 19,730 17,024 19,237 Non-current deferred revenue – leases refer to leases of base stations and leases of lines in Slovenia and abroad. 32. Provisions Changes in provisions of the Telekom Slovenije Group in 2024 Transfer to Changes in in EUR thousand 31 Dec 2023 current Utilisation Reversed Creation discount Reclassifications 31 Dec 2024 portion rates Provisions for probable liabilities 4,161 0 -758 -739 4,435 0 3,307 10,406 resulting from legal claims Provisions for 2,415 0 -247 -104 19 208 0 2,291 anniversary bonuses Provisions for severance payments 9,112 0 -207 -833 397 365 0 8,834 upon retirement Provisions for estimated costs of the 2,815 0 -16 10 47 355 0 3,211 removal of receiving- transmitting stations Other provisions 6,208 0 -861 -833 2,291 0 -3,370 3,435 Total provisions 24,711 0 -2,089 -2,499 7,189 928 -63 28,177 Changes in provisions of the Telekom Slovenije Group in 2023 Transfer to Changes in in EUR thousand 31 Dec 2022 current portion Utilisation Reversed Creation discount Reclassifications 31 Dec 2023 rates Provisions for probable liabilities resulting from 266 0 0 0 2,207 0 1,688 4,161 legal claims Provisions for 2,222 0 -190 0 235 148 0 2,415 anniversary bonuses Provisions for severance payments 8,487 0 -101 -94 449 371 0 9,112 upon retirement Provisions for estimated costs of the removal of 2,584 0 -29 7 27 226 0 2,815 receiving-transmitting stations Other provisions 7,661 -36 -1,757 -59 2,087 0 -1,688 6,208 Total provisions 21,220 -36 -2,077 -146 5,005 745 0 24,711 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 238 Changes in provisions of the company Telekom Slovenije in 2024 Changes in in EUR thousand 31 Dec 2023 Utilisation Reversed Creation discount Reclassifications 31 Dec 2024 rates Provisions for probable liabilities resulting from legal 3,895 -758 -739 3,991 0 3,307 9,696 claims Provisions for anniversary 1,906 -193 -66 0 170 0 1,817 bonuses Provisions for severance 7,298 -145 -569 268 297 0 7,149 payments upon retirement Provisions for estimated costs of the removal of receiving- 2,817 -16 11 46 355 0 3,213 transmitting stations Other provisions 5,223 -12 -764 1,212 0 -3,307 2,352 Total provisions 21,139 -1,124 -2,127 5,517 822 0 24,227 Changes in provisions of the company Telekom Slovenije in 2023 Changes in Exchange in EUR thousand 31 Dec 2022 Utilisation Reversed Creation discount rates rate 31 Dec 2023 differences Provisions for probable liabilities resulting from 0 0 0 2,207 0 1,688 3,895 legal claims Provisions for anniversary 1,770 -160 0 175 121 0 1,906 bonuses Provisions for severance payments upon 6,858 -78 -39 253 304 0 7,298 retirement Provisions for estimated costs of the removal of 2,585 -29 7 27 227 0 2,817 receiving-transmitting stations Other provisions 6,712 -811 0 1,010 0 -1,688 5,223 Total provisions 17,925 -1,078 -32 3,672 652 0 21,139 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 10,406 thousand (in 2023: 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 343,883 thousand (in 2023: EUR 250,542 thousand). Total damages claimed in pending legal claims brought against Telekom Slovenije amount to EUR 340,482 thousand (in 2023: EUR 247,802 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 2024 239 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 for Provisions for Provisions for Provisions for in EUR thousand anniversary termination Total anniversary termination Total bonuses benefits bonuses benefits Provisions as at 1 January 2023 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 99 -232 -134 74 -270 -197 adjustments Payments during the year -196 -118 -315 -160 -77 -239 Provisions as at 31 December 2023 2,415 9,112 11,527 1,906 7,298 9,204 Interest cost 100 370 470 79 297 376 Current service cost 165 383 548 114 269 382 Termination of employment -6 -26 -32 0 0 0 (severance) Actuarial gains (+) and losses (-) -142 -816 -958 -89 -569 -658 due to changes in demographic -301 -1,276 -1,577 -227 -1,016 -1,243 assumptions - due to changes in financial 115 644 759 91 525 615 assumptions - due to experience-based 44 -185 -140 47 -77 -30 adjustments Payments during the year -241 -190 -431 -194 -146 -338 Provisions as at 31 December 2,291 8,833 11,124 1,816 7,298 9,204 2024 Planned payments Telekom Slovenije Group Planned payments Telekom Slovenije In EUR thousand In EUR thousand Up to 1 year 577 217 793 Up to 1 year 472 188 660 > 1 - 2 years 501 307 808 > 1 - 2 years 435 231 666 > 2 - 3 years 684 293 976 > 2 - 3 years 551 230 781 > 3 - 4 years 568 238 806 > 3 - 4 years 419 193 612 > 4 - 5 years 542 271 813 > 4 - 5 years 428 211 639 > 5 - 10 years 4,349 1,264 5,612 > 5 - 10 years 3,424 981 4,405 > 10 years 12,338 2,281 14,620 > 10 years 9,653 1,652 11,305 Total 19,559 4,871 24,428 Total 15,382 3,686 19,068 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); - change in discount rates used in measuring, according to the different balance sheet dates. Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 240 The following actuarial assumptions were taken into account in the calculation of provisions for jubilee rewards and post-employment benefits: - demographic assumptions: • expected mortality is determined on the basis of life tables of the population in the Republic of Slovenia (published for 2007); • fluctuation indicating the leaving of the company by one's own decision is determined as linearly decreasing according to the age of the employee and averages 2.8% for the company Telekom Slovenije for 2024 (2023: 3.7%), and 2.9% for the Telekom Slovenije Group for 2024 (2023: 4.1%), 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 2.6% 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 2025 onwards from 2024 onwards Telekom Slovenije 0.92% 0.76% GVO 3.07% 2.70% Avtenta 2.50% 3.15% TSmedia 1.10% 0.85% Soline 2.00% 2.00% TSinpo 0.51% 0.50% - the applied interest rate equals 3.34% p.a. (2023: 4.07%), which corresponds to the yield on 10-year investment grade corporate bonds from euro area issuers at the end of November 2024, for Telekom Slovenije, Soline, GVO, Avtenta, and TSinpo, and 3.37% p.a. (2023: 4.17%), 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 pay Jubilee rewards Central scenario 0.00% balance 11,124 8,833 2,291 -0.50% balance 11,617 9,250 2,367 Discount interest rate (difference) -493 -417 -76 0.50% balance 10,665 8,446 2,219 (difference) -459 -387 -72 -0.50% balance 10,657 8,438 2,218 Salary growth (difference) -468 -395 -73 0.50% balance 11,622 9,255 2,368 (difference) -498 -421 -76 Sensitivity analysis of changes in actuarial assumptions in Telekom Slovenije Assumption Deviation Description Total Severance pay Jubilee rewards Central scenario 0.00% balance 8,966 7,149 1,816 -0.50% balance 9,360 7,484 1,876 Discount interest rate (difference) -394 -335 -59 0.50% balance 8,598 6,837 1,760 (difference) -368 -312 -56 -0.50% balance 8,590 6,830 1,760 Salary growth (difference) -376 -319 -57 0.50% balance 9,365 7,489 1,876 (difference) -399 -340 -59 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 241 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 3.37% p.a., which corresponds to the 15-year yield on investment-grade corporate bonds from euro area issuers as at the end of November 2024. 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. 33. Other liabilities Telekom Slovenije Group Telekom Slovenije in EUR thousand 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 Trade payables for program rights 13,047 17,008 13,229 17,191 Other 21,293 6,328 107 125 Total non-current trade payables 34,340 23,336 13,336 17,316 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 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 Long-term borrowings Bank loans 306,567 336,618 306,566 336,618 - short-term portion of long-term loans -18,686 -30,040 -18,686 -30,040 - long-term portion of loans 287,881 306,578 287,880 306,578 Total non-current portion 287,881 306,578 287,880 306,578 Short-term borrowings Short-term portion of long-term bank loans 18,686 30,040 18,686 30,040 Interest and other expenses from loans 511 558 511 558 Total short-term portion 19,197 30,598 19,197 30,598 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 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 second 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 loan partially drawn at the end of 2024, with a maturity date at the end of 2032.The loan is linked to a variable interest rate with a mark-up of 0.42% and is collateralised by blank bills of exchange. To ensure liquidity, the Group has short-term facilities with banks falling due in 2025. The liquidity buffer in the form of revolving loans and overdraft facility totalling EUR 55 million was not drawn as at 31 December 2024. Revolving loans are linked to a variable interest rate with a 0.50% mark-up. The overdraft facility is linked to a fixed interest rate equalling 4.30%. 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 2024, all financial covenants on the Group level were fulfilled. Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 242 Changes in borrowings Telekom Slovenije Group Telekom Slovenije in EUR thousand 2024 2023 2024 2023 Balance as at 1 January 337,176 369,440 337,176 369,440 Drawing 33,954 100,000 33,954 100,000 Repayments -64,122 -132,527 -64,122 -132,527 Other 70 263 70 263 Balance as at 31 Dec. 307,078 337,176 307,078 337,176 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 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 Non-current liabilities arising from right-of-use assets 72,207 65,216 79,074 70,267 Current liabilities arising from right-of-use assets 11,369 9,868 11,312 11,512 Total liabilities arising from right-of-use assets 83,576 75,084 90,386 81,779 Changes in lease liabilities In EUR thousand Telekom Slovenije Group Telekom Slovenije Balance as at 1 January 2023 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 Increases 20,418 18,429 Interest 4,108 2,615 Lease payments -16,034 -12,437 Balance as at 31 December 2024 83,576 90,386 The cash flow from leases amounts to EUR 16,034 thousand for the Telekom Slovenije Group (in 2023: EUR 12,315 thousand) and EUR 12,437 thousand for the company Telekom Slovenije (in 2023: EUR 12,314 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 Non-current financial liabilities Telekom Slovenije Group Telekom Slovenije In EUR thousand 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 Interest rate swap liabilities 2,139 0 2,139 0 Total other non-current financial liabilities 2,139 0 2,139 0 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 243 Current financial liabilities Telekom Slovenije Group Telekom Slovenije in EUR thousand 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 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 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 Trade payables 68,571 68,532 55,656 55,659 Liabilities to domestic operators 5,793 4,768 11,916 11,910 Liabilities to foreign operators 7,763 4,955 8,322 5,472 VAT and other tax liabilities 6,707 8,485 5,995 7,350 Liabilities to employees 8,757 8,843 6,585 6,866 Liabilities for advances and warranties 2,079 1,928 422 425 Other liabilities 35,917 26,235 19,714 20,540 Total operating and other liabilities 135,587 123,746 108,610 108,222 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 programme rights for TV content and frequency obligations. In the Group, liabilities for programme rights for TV content rights amount to EUR 25,673 thousand (in 2023: EUR 16,472 thousand), and liabilities for frequencies amount to EUR 8,967 thousand (in 2023: EUR 8,967 thousand). 38. Contract liabilities (short-term) Telekom Slovenije Group Telekom Slovenije in EUR thousand 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 Short-term deferred revenue - leases 2,814 2,945 2,814 2,945 Other short-term contract liabilities 8,044 8,962 1,773 2,834 Total current contract liabilities 10,858 11,907 4,587 5,779 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 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 Current portion of government grant for 36 40 36 39 property, plant and equipment Other current deferred revenue - co-funding of 3,289 1,214 2,304 185 European projects Total current deferred revenue 3,325 1,254 2,340 224 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 244 Short-term accrued costs Telekom Slovenije Group Telekom Slovenije in EUR thousand 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 Accrued costs and expenses for services rendered and 11,613 10,687 8,735 7,443 goods supplied (invoices not issued yet) Accrued costs and deferred revenue - calculation of 10,138 11,355 10,137 11,361 international services Accrued salaries, bonuses and severance pay 8,823 8,033 8,505 7,809 Accrued costs for unused annual leave 2,217 2,944 1,689 2,215 Other 63 36 0 0 Total accrued costs and expenses 32,854 33,055 29,066 28,828 Total accrued liabilities 36,179 34,309 31,406 29,052 40. Book and fair values The table contains data on the classification in terms of fair value hierarchy solely for assets and financial liabilities which are measured at fair value and for which fair value is disclosed. Book and fair values of financial instruments of the Telekom Slovenije Group as at 31 December 2024 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 2,556 2,556 2,556 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 Other non-current financial assets 16 16 0 16 0 Trade receivables 19,242 19,242 0 19,242 0 Current financial assets Loans granted 3 3 0 3 0 Other current financial assets 1,001 1,001 0 1,001 0 Trade and other receivables 174,071 174,071 0 174,071 0 Cash and cash equivalents 18,879 18,879 0 18,879 0 Non-current financial liabilities Borrowings 287,881 287,881 0 287,881 0 Interest rate swap liabilities 2,139 2,139 2,139 Other liabilities 34,340 34,340 0 34,340 0 Current financial liabilities Borrowings 19,197 19,197 0 19,197 0 Other financial liabilities 2 2 0 2 0 Operating liabilities 135,587 135,587 0 135,587 0 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 245 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 284 284 0 0 284 at 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 company Telekom Slovenije as at 31 December 2024 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 2,556 2,556 2,556 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 9,684 9,684 0 9,684 0 Trade receivables 19,179 19,179 0 19,179 0 Current financial assets Loans granted 6,447 6,447 0 6,447 0 Trade and other receivables 163,237 163,237 0 163,237 0 Cash and cash equivalents 9,057 9,057 0 9,057 0 Non-current financial liabilities Borrowings 287,880 287,880 0 287,880 0 Interest rate swap liabilities 2,139 2,139 2,139 Operating liabilities 13,336 13,336 0 13,336 0 Current financial liabilities Borrowings 19,197 19,197 0 19,197 0 Operating liabilities 108,610 108,610 0 108,610 0 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 246 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 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 2024 or 2023. 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. See Note 4 Fair value measurement. Book and fair values as at 31 December 2024 Telekom Slovenije Group Book value Fair value Level 1 Level 2 Level 3 in EUR thousand Investment property 3,349 5,290 5,290 Telekom Slovenije Book value Fair value Level 1 Level 2 Level 3 in EUR thousand Investment property 3,349 5,290 5,290 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 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 247 41. Contingent liabilities and contingent assets Amounts claimed in litigation Telekom Slovenije Group In EUR thousand 2024 2023 Amounts claimed in litigation 343,883 250,542 As at the balance sheet date, the Group recorded 82 legal claims (31 December 2023: 83). Based on the legal opinions obtained and the management's estimate, provisions were formed for legal claims in the amount of EUR 10,406 thousand. In 2023, provisions for legal claims amounted to EUR 4,161 thousand. For more details see Note 32 Provisions. The company Telekom Slovenije in EUR thousand 2024 2023 Amounts claimed in litigation 340,482 247,802 As at the balance sheet date, the Company recorded 39 legal claims (31 December 2023: 41). Based on the management’s assessment and legal opinions obtained, provisions amounting to EUR 9,696 thousand were made. In 2023, provisions for legal claims amounted to EUR 3,895 thousand. For more details see Note 32 Provisions. As at 31 December 2024, the amount of claims primarily comprised the following lawsuits: - A lawsuit filed by T-2, d.o.o., claiming ordinary damages, lost profits and a declaration of non- existence of receivables in the total amount of EUR 125,501 thousand. Telekom Slovenije received the claim amounting to EUR 49,735 thousand on 2 March 2021, and T-2 d.o.o. has since increased its claim multiple times in the course of the proceedings. - A collective redress action filed by the PanSlovenian Stakeholders’ Association, amounting to EUR 122,690 thousand, alleging that the Company’s subscribers were disadvantaged. Telekom Slovenije received this lawsuit on 23 March 2023. - A lawsuit filed by A1 Slovenija, d.d., seeking damages of EUR 33,683 thousand. Telekom Slovenije received the lawsuit on 31 July 2024. It is based on alleged abuse of a dominant position in the wholesale market for central access and the wholesale market for local access. - A lawsuit filed by Telemach, d.o.o., claiming damages of EUR 28,796 thousand. Telekom Slovenije received the claim on 2 August 2021. The claim is based on alleged violations of regulatory decisions issued by the Agency for Communication Networks and Services of the Republic of Slovenia, as well as alleged abuse of a dominant position. Based on the senior management's assessment and the legal opinions obtained, the Company has not made provisions for these claims. The increase in the total amount of claims as at 31 December 2024, compared to the situation as at 31 December 2023, is primarily due to the increase in the claim filed by T-2, d.o.o. Guarantees given The Group and the Company provide the following bonds: Telekom Slovenije Group Telekom Slovenije In EUR thousand 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 Performance bonds and warranty bonds 12,524 11,741 8,999 8,480 Other guarantees 382 1,020 387 28 Total guarantees issued 12,906 12,761 9,386 8,508 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. Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 248 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 2024, 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 2024, 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 2024. Data on groups of persons in 2024 in EUR thousand Total gross receipts Members of the Management Board total 942 Members of the Supervisory Board 234 Members of the Supervisory Board committees 22 Other managerial staff employed under contracts not subject to the tariff part of the 4,489 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. Data on groups of persons in 2023 in EUR thousand Total gross receipts 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 subject to the tariff part of the 4,505 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. Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 249 Remuneration of the Management Board members in 2024 – breakdown Voluntary In EUR Salary Variable Cost Holiday Insurance Bonuses supplementary Total Total pay reimbursements allowance premiums pension gross net insurance Boštjan Košak 184,882 2,343 2,036 2,427 87 4,283 2,904 198,962 94,746 (1 Jan -31 Dec) Boštjan Škufca Zaveršek 175,221 2,343 1,685 2,427 87 0 2,904 184,667 93,247 (1 Jan -31 Dec) Špela Fortin 165,844 26,355 1,986 2,427 575 3,459 2,904 203,550 94,012 (1 Jan -31 Dec) Irma Gubanec 160,553 2,343 2,891 2,427 575 64 2,904 171,757 86,929 (1 Jan -31 Dec) Vesna Prodnik 166,399 2,343 2,823 2,427 575 5,215 2,904 182,686 84,639 (1 Jan -31 Dec) Total 852,899 35,727 11,421 12,135 1,899 13,021 14,520 941,622 453,573 Remuneration of the Management Board members in 2023 – breakdown Voluntary in EUR Salary Cost Holiday Insurance Bonuses supplementary Total Total reimbursements allowance premiums pension gross net insurance Boštjan Košak 172,531 1,818 2,159 288 5,906 2,904 185,606 86,638 (1 Jan -31 Dec) Boštjan Škufca Zaveršek 163,906 1,845 2,159 228 0 2,904 171,042 86,948 (1 Jan -31 Dec) Špela Fortin 154,683 1,755 2,159 776 6,510 2,904 168,787 76,141 (1 Jan -31 Dec) Irma Gubanec 155,271 2,919 2,159 771 0 2,904 164,024 82,860 (1 Jan -31 Dec) Vesna Prodnik 155,271 2,934 2,159 776 6,438 2,904 170,482 77,593 (1 Jan -31 Dec) Mitja Štular 54,380 0 720 33 3,563 1,210 59,906 29,716 (1 Jan -13 May) Total 856,042 11,271 11,515 2,872 22,417 15,730 919,847 439,896 * The variable pay represents part of the performance-based payment for the year 2024 (a Christmas bonus that was paid in the same amount as to other employees in the company). The board member Špela Fortin received variable remuneration for the year 2020 and for the year 2021. ** 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: In 2024 in EUR Meetings Basic pay Total gross Total net Vesna Prodnik (1 Jan -31 Dec) 935 5,085 6,029 4,405 Total 935 5,085 6,029 4,405 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 250 In 2023 in EUR Meetings Basic pay Total gross Total net Vesna Prodnik (1 Jan -31 Dec) 1,073 5,085 6,158 4,478 Total 1,073 5,085 6,158 4,478 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 2024 – breakdown in EUR Meetings Basic Committees Travel Liability Total Total pay expenses insurance gross net Capital representatives Žiga Debeljak (1 Jan -31 Dec) 2,915 28,000 2,200 0 87 33,202 24,219 Karla Pinter (1 Jan -31 Dec) 2,915 22,400 2,200 0 87 27,602 20,120 Marko Boštjančič (1 Jan -31 Dec) 2,915 21,000 2,200 4,586 87 30,788 22,452 Alenka Čok Pangeršič (1 Jan -31 Dec) 2,915 17,500 2,332 0 87 22,834 16,629 Mateja Čuk Orel (1 Jan -31 Dec) 2,915 19,250 1,540 0 87 23,792 17,331 Aleksander Igličar (1 Jan -31 Dec) 2,915 19,250 2,332 16 87 24,600 17,922 Employee representatives Drago Kijevčanin (1 Jan -31 Dec) 2,915 22,400 3,872 0 87 29,274 21,330 Dušan Pišek (1 Jan -31 Dec) 2,915 17,500 660 0 87 21,162 15,387 Rok Pleteršek (1 Jan -31 Dec) 2,915 17,500 660 0 87 21,162 15,387 Total 26,235 184,800 17,996 4,602 783 234,416 170,777 Remuneration of the Supervisory Board members in 2023 – breakdown in EUR Meetings Basic Committees Travel Liability Total Total pay expenses insurance gross net Capital representatives 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 Employee representatives 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 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. Remuneration of the Supervisory Board committee members in 2024 (breakdown) in EUR Basic pay Committees Total Total net gross Janez Bešter (1 Jan -31 Dec) 5,600 660 6,260 4,583 Barbara Gorjup (1 Jan -31 Dec) 5,600 2,332 7,932 5,807 Marko Hočevar (1 Jan -31 Dec) 5,600 2,112 7,712 5,646 Total 16,800 5,104 21,904 16,036 Remuneration of the Supervisory Board committee members in 2023 (breakdown) in EUR Basic pay Committees Total Total gross net 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 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 251 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. The attendance fees, remuneration for performing the function, travel expenses and insurance of the Supervisory Board for the January 2024 - December 2024 period amount to EUR 234,415.10. 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 2024 - December 2024 period amount to EUR 21,904.00. This includes the cost of the attendance fees and remuneration for the performance of functions. For 2024, 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 2024 in EUR Committees Total gross Total net Marko Hočevar (1 Jan- 14 June) 880 880 640 Barbara Gorjup (1 Jan- 14 June) 1,100 1,100 800 Drago Kijevčanin (1 Jan- 14 June) 1,100 1,100 800 Aleksander Igličar (1 Jan- 14 June) 1,100 1,100 800 Alenka Čok Pangeršič (1 Jan- 14 June) 1,100 1,100 800 Total 5,280 5,280 3,840 In 2023 in EUR Committees Total gross Total net 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 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 2024, 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 2024 in EUR Committees Total gross Total net Barbara Gorjup (1 Jan -31 Dec) 1,980 1,980 1,450 Marko Hočevar (1 Jan -31 Dec) 1,760 1,760 1,288 Aleksander Igličar (1 Jan -31 Dec) 1,980 1,980 1,450 Drago Kijevčanin (1 Jan -31 Dec) 1,980 1,980 1,450 Alenka Čok Pangeršič (1 Jan -31 Dec) 1,980 1,980 1,450 Total 9,680 9,680 7,088 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 252 In 2023 In EUR Committees Total gross Total net 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 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 2024), in the following amounts: Total amount of all Total amount of all liabilities as In EUR thousand liabilities as at 31 at 31 December 2023 December 2024 Members of the Management Board total 284 108 Members of the Management Board and the Supervisory Board of Telekom Slovenije are members of supervisory or management boards of other companies or owners of other companies with which the company Telekom Slovenije conducts business. All related party transactions are carried out under market conditions. Remuneration of the management of subsidiaries In 2024 Voluntary Company in EUR Salary Christmas Variable Cost Holiday Insurance Bonuses supplementary Total Total bonus pay reimbursement allowance premiums pension gross net insurance Avtenta Matija Nendl 102,010 2,343 0 1,606 2,427 20 3,773 2,916 115,095 63,959 (1 Jan -31 Dec) GVO Zef Vučaj 112,577 2,343 12,035 1,816 2,427 184 3,227 2,916 137,525 68,809 (1 Jan -31 Dec) Soline Klavdij Godnič 44,911 0 0 828 1,400 0 3,028 1,452 51,619 24,869 (1 Jan -30 June) Aleksander Soline Valentin 13,200 0 0 0 0 0 0 0 13,200 9,333 (1 July -31 Dec) 1 TSinpo Vesna Lednik 81,607 1,640 0 1,656 2,348 166 6,795 2,904 97,116 47,903 (1 Jan -31 Dec) TSmedia Igor Gajster 87,598 600 0 1,703 2,427 154 4,845 2,916 100,243 51,095 (1 Jan -31 Dec) IPKO Andras Pali 120,000 0 0 1,260 0 338 0 0 121,598 107.742 2 (1 Jan -31 Dec)2 SIOL Simon Furlan 7,540 0 0 0 0 0 0 0 7,540 6.450 3 Podgorica (1 Jan -31 Dec) SiOL Simon Furlan 3,412 0 0 0 0 0 0 0 3,412 3.080 3 Sarajevo (1 Jan -31 Dec) Total gross represents the sum of all types of labour 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 Business contract 2 Total net is not final, as gross income is taxed only according to local legislation. The income is subject to additional taxation in the country of residence (Hungary). 3 Total net is not final, as gross income is taxed only according to local legislation. The income is subject to additional taxation in the country of residence (Slovenia). Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 253 In 2023 Other Voluntary Company in EUR Salary Variable personal Cost Holiday Insurance Bonuses supplementary Total Total pay earnings reimbursement allowance premiums pension gross** net insurance Avtenta Primož Kučič 6,000 0 0 0 0 0 0 0 6,000 4,214 (1 Jan - 31 Mar) Avtenta Matija Nendl 76,507 0 0 1,487 1,644 35 4,477 2,420 86,570 45,985 (1 Apr -31 Dec) GVO Zef Vučaj 99,474 0 0 1,610 2,159 177 3,987 2,904 110,311 56,371 (1 Jan -31 Dec) Soline Klavdij Godnič 90,541 0 0 1,703 1,203 0 6,936 2,904 103,287 48,306 (1 Jan -31 Dec) TSinpo Vesna Lednik 79,752 0 0 1,726 2,192 127 3,184 2,904 89,885 47,682 (10 Jan -31 Dec) TSinpo Sandra Peršak 1,855 0 40,800 50 153 15 243 242 43,358 18,859 (1 Jan – 9 Jan) TSmedia Igor Gajster 89,029 0 886 1,758 2,159 113 6,057 2,904 102,906 51,513 (1 Jan -31 Dec) TSmedia Rajko Gerič 12,046 0 15,330 0 360 10 10 242 27,998 14,067 (1 Jan - 19 Feb) IPKO Tomaž Seljak 57,132 0 17,365 1,202 2,159 419 4,652 2,453 85,382 49,773 (1 Jan – 3 Nov)1 IPKO3 Tomaž Seljak 61,832 27,477 0 3,720 0 0 0 0 93,029 80,378 4 (1 Jan – 3 Nov)2 IPKO3 Andras Pali 18,636 0 0 240 0 0 0 0 18,876 16,817 3 (4 Nov – 31 Dec)2 SIOL Simon Furlan 6,390 0 0 0 0 0 0 0 6,390 5,400 4 Podgorica3 (1 Jan -31 Dec) SiOL Simon Furlan 3,340 0 0 0 0 0 0 0 3,340 2,687 4 Sarajevo3 (1 Jan -31 Dec) Other personal earnings represents the payment of jubilee awards, severance pay, allowance for work abroad. Total gross represents the sum of all types of labour 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 Total net is not final, as gross income is taxed only according to local legislation. The income is subject to additional taxation in the country of residence (Hungary). 4 Total net is not final, as gross income is taxed only according to local legislation. The income is subject to additional taxation in the country of residence (Slovenia). Remuneration of members of the supervisory board of GVO for 2024 in EUR Meetings Basic pay Committees Insurance Total Total net premiums gross Capital representatives Vesna Prodnik (1 Jan -31 Dec) 935 5,085 0 9 6,029 4,405 Peter Anžin (1 Jan -31 Dec) 935 5,000 528 9 6,472 4,792 Employee representatives Helena Jakič (1 Jan - 31 Dec) 935 4,238 528 7 5,708 4,470 Total 2.805 14,323 1,056 25 18,209 11,740 in EUR Meetings Basic pay Committees Travel Total Total net expenses gross External members of commissions Darinka Virant (1 Jan -31 Dec) 0 1,695 528 61 2,284 1,672 Meeting fees for committees. 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. Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 254 Remuneration of members of the supervisory board of GVO for 2023 in EUR Meetings Basic pay Committees Travel Total Total net expenses gross Capital representatives Vesna Prodnik (1 Jan - 31 Dec) 1,073 5,085 0 0 6,158 4,478 Peter Anžin (9 June - 31 Dec) 660 2,783 396 0 3,839 2,792 Sabina Merhar (1 Jan – 31 Mar) 413 1,250 440 0 2,103 1,529 Employee representatives Helena Jakič (1 Jan -31 Dec) 1,073 4,238 836 0 6,147 4,479 Total 3,219 13,356 1,672 0 18,247 13,269 in EUR Meetings Basic pay Committees Travel Total Total net expenses gross External members of committees Darinka Virant (1 Jan -31 Dec) 0 1,695 836 61 2,592 1,885 Meeting fees for committees. 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 2024 31 Dec 2023 Receivables due from companies in the Group Subsidiaries - gross amount 2,952 3,330 Subsidiaries - allowance -26 -15 Subsidiaries - net amount 2,926 3,316 Loans to companies in the Group Subsidiaries - gross amount 16,129 37,516 Subsidiaries - net amount 16,129 37,516 Liabilities to companies in the Group Subsidiaries 33,439 33,092 in EUR thousand I - XII 2024 I - XII 2023 Revenue from sales in the Group 15,723 15,799 Subsidiaries 15,723 15,799 Purchase of material and services in the Group 23,198 23,171 Subsidiaries 23,198 23,171 The Company generates revenue by selling material to the company GVO, by leasing business premises and property, plant and equipment, by rendering telecommunication services and by implementing the services of business support. Telekom Slovenije settles the company GVO's costs of investment construction, maintenance and elimination of defects. TSmedia pays the company Telekom Slovenije for the provision of telecommunications services and call centre services, for maintenance, development and purchase of multimedia platforms and contents, for business support services and for the lease of outdoor digital screens and business premises. To the controlling company, it charges the sale and management of multimedia services and contents, the use of the BiziPro business application, services related to the universal directory enquiry service, service 1977, as well as 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 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 255 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 2023). The Company did not make allowances for loans granted in 2024, as the estimated expected credit losses are insignificant. Loans granted to subsidiaries in EUR thousand 31 Dec 2024 31 Dec 2023 GVO, d.o.o. 3,566 4,517 TSmedia, d.o.o. 341 492 IPKO d.o.o. 0 20,000 SOLINE d.o.o. 1,507 1,789 SIOL d.o.o., Zagreb 107 313 SiOL d.o.o. Sarajevo 3,215 3,920 INFRATEL, d.o.o. 4,699 3,654 SIOL Priština 2,693 2,832 Total granted to subsidiaries 16,129 37,516 Transactions with owners and their related companies The largest owner of Telekom Slovenije is the Republic of Slovenia, which, together with Pension Fund Management and the Slovenian Sovereign Holding (SSH) holds 72.38% of share capital in Telekom Slovenije. Companies related to the owners are those in which the Republic of Slovenia, Pension Fund Management 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. The total value of transactions is given in the table below. Telekom Slovenije Group Telekom Slovenije in EUR thousand 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 Outstanding trade receivables 4,425 4,659 3,628 3,898 Outstanding trade payables 1,716 4,214 1,560 4,055 VAT liabilities 5,026 5,655 4,770 5,490 Income tax payables 1,422 -889 1,193 -442 in EUR thousand I - XII 2024 I - XII 2023 I - XII 2024 I - XII 2023 Sales revenue 23,154 24,579 20,501 18,059 Purchase costs of material and services 17,993 24,647 17,038 23,504 in EUR thousand I - XII 2024 I - XII 2023 I - XII 2024 I - XII 2023 VAT payment 55,015 55,554 52,922 54,661 CIT payment 2,311 2,137 2,101 1,144 Payment of dividends 29,330 0 29,330 0 All related party transactions are carried out under market conditions. Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 256 43. Auditor’s fee Telekom Slovenije Group Telekom Slovenije in EUR thousand 2024 2023 2024 2023 Audit services 226 206 114 110 Other assurance engagements 81 16 81 16 Other non-audit services 4 16 0 12 Total auditor’s fees 311 238 195 138 44. Categories of financial instruments The Group and the Company have classified financial instruments into groups as shown in the table below. Telekom Slovenije Group Telekom Slovenije in EUR thousand 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 Financial assets measured at amortised cost Cash and cash equivalents 18,879 55,479 9,057 44,376 Bank deposits 1,000 1,037 0 36 Loans granted 3 9 16,131 37,526 Trade and other receivables 193,242 189,808 182,351 180,775 Financial assets measured at fair value through other comprehensive income Investments in shares and interests of 2,840 2,454 2,840 2,454 companies Financial liabilities at fair value through other comprehensive income Interest rate swap liabilities 2,139 0 2,139 0 Financial liabilities measured at amortised cost Operating liabilities 169,927 147,082 121,946 125,538 Borrowings 307,078 337,176 307,077 337,176 Other financial liabilities 2 2 0 0 The Group and the Company did not reclassify these instruments to other groups during the year. 45. Financial instruments and financial risk management Financial risks that the Telekom Slovenije Group and the company Telekom Slovenije 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. Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 257 The maximum exposure to credit risk equals the carrying amount of financial assets. Telekom Slovenije Group Telekom Slovenije in EUR thousand 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 Loans granted 3 9 16,131 37,526 Deposits 1,001 1,039 0 36 Trade and other receivables 193,242 189,808 182,351 180,775 - of which trade receivables 185,280 179,731 175,258 171,583 Cash and cash equivalents 18,879 55,479 9,057 44,376 TOTAL 213,125 246,335 207,539 262,713 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 2024, these amounted to EUR 185,280 thousand at the Group level, having increased by EUR 5,549 thousand compared to the end of 2023. 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, with the exception of certain domestic operators. Telekom Slovenije faces higher credit risk with some domestic operators who do not settle their obligations for wholesale services. Telekom Slovenije has initiated appropriate legal proceedings against these operators. 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. Maturity analysis of receivables of the Telekom Slovenije Group as at the reporting date 31 Dec 2024 31 Dec 2023 in EUR thousand Expected Expected Gross % of Allowance Net Gross % of Allowance Net amount credit amount amount credit amount losses losses Total trade receivables 214,595 -29,315 185,280 200,927 -21,196 179,731 Trade receivables not past due 170,258 1.0% -1,733 168,525 165,270 0.5% -784 164,486 Past due - up to and including 30 days 8,986 9% -785 8,201 8,799 5% -412 8,387 - from and including 31 days to 4,174 23% -976 3,198 3,754 11% -415 3,339 and including 60 days - from and including 61 days to 2,404 38% -916 1,488 781 18% -137 644 and including 90 days - from and including 91 days to 3,942 64% -2,528 1,414 2,493 46% -1,135 1,358 and including 180 days - from and including 181 days 4,283 73% -3,132 1,151 2,735 87% -2,371 364 to and including 365 days - from and including 366 days 8,624 85% -7,330 1,294 6,642 83% -5,486 1,156 up to two years - over two years 8,818 100% -8,809 9 7,650 100% -7,653 -3 - trade receivables in 3,106 100% -3,106 0 2,803 100% -2,803 0 insolvency proceedings Total trade receivables past 44,337 -27,582 16,755 35,657 -20,412 15,245 due Other trade receivables 7,962 0 7,962 10,077 0 10,077 Total receivables 222,557 -29,315 193,242 211,004 0 -21,196 189,808 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 258 Maturity analysis of receivables of Telekom Slovenije as at the reporting date 31 Dec 2024 31 Dec 2023 Expected % Expected in EUR thousand Gross of credit Allowance Net Gross % of Allowance Net amount losses amount amount credit amount losses Total trade receivables 198,582 -23,324 175,258 187,747 -16,164 171,583 Trade receivables not past due 162,108 1.1% -1,753 160,355 158,789 0.5% -787 158,002 Past due - up to and including 30 days 7,969 10% -773 7,196 8,126 5% -405 7,721 - from and including 31 days to 3,937 24% -951 2,986 3,509 11% -386 3,123 and including 60 days - from and including 61 days to 2,231 39% -880 1,351 598 15% -90 508 and including 90 days - from and including 91 days to 3,503 67% -2,350 1,153 1,628 45% -733 895 and including 180 days - from and including 181 days to 3,624 74% -2,667 957 2,239 90% -2,025 214 and including 365 days - from and including 366 days up 3,819 67% -2,559 1,260 3,108 64% -1,988 1,120 to two years - over two years 8,790 100% -8,790 0 7,457 100% -7,457 0 - trade receivables in insolvency 2,601 100% -2,601 0 2,293 100% -2,293 0 proceedings Total trade receivables past 36,474 -21,571 14,903 28,958 -15,377 13,581 due Other trade receivables 7,093 0 7,093 9,192 0 9,192 Total receivables 205,675 -23,324 182,351 196,939 -16,164 180,775 The adjustment policy for receivables is explained in Note 3. f 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. 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. 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 Group Telekom Slovenije in EUR thousand 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 Past due 0 0 0 0 Outstanding: 3 9 16,131 37,526 - in less than 3 months 1 3 790 1,487 - 3 to 12 months 2 4 5,658 16,479 - 1 to 2 years 0 2 1,400 11,321 - 2 to 5 years 0 0 4,730 4,350 - more than 5 years 0 0 3,554 3,890 Total 3 9 16,131 37,526 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 259 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 two long-term syndicated loans in the total amount of EUR 196.9 million with respective interest, an independent long-term loan of EUR 15.4 million with accrued interest, a long-term loan from the European Investment Bank in the amount of EUR 95.1 million with respective interest, and lease liabilities in the amount of EUR 83.6 million and EUR 90.4 million at the Group and Company level, respectively. Other financial liabilities of the Telekom Slovenije Group almost entirely represent long-term interest rate swap liabilities. In 2024, Telekom Slovenije repaid EUR 45.6 million of long-term loans and partially drew down an independent long-term loan totalling EUR 15.4 million at the end of 2024, which was used to fully refinance a tranche of the syndicated long-term loan, which was originally due to mature at the end of 2025. 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 2024. Maturity profile of liabilities of the Telekom Slovenije Group as at 31 December 2024 and 31 December 2023 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 2024 Loans and 824 28,223 52,610 167,917 95,515 345,089 307,469 borrowings Other financial 0 2 0 0 2,139 2,141 2,141 liabilities Trade payables and other operating 94,530 41,057 11,331 2,024 20,985 169,927 169,927 liabilities Financial liabilities 5,036 8,671 12,564 26,639 52,693 105,603 83,576 from leases Total 100,390 77,953 76,505 196,580 171,332 622,760 563,113 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 leases Total 100,014 79,996 69,226 210,570 174,895 634,701 559,869 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 260 Maturity of liabilities of Telekom Slovenije as at 31 December 2024 and 31 December 2023 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 2024 Loans and 824 28,223 52,610 167,917 95,515 345,089 307,469 borrowings Other financial 0 0 0 0 2,139 2,139 2,139 liabilities Trade payables and other operating 92,329 16,280 11,205 2,024 108 121,946 121,946 liabilities Financial liabilities 5,607 8,575 11,497 27,600 57,139 110,418 90,386 from leases Total 98,760 53,078 75,312 197,541 154,901 579,592 521,940 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 leases Total 98,696 67,785 67,258 212,142 171,228 617,109 545,019 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 2024, the Group's interest rate risk exposure arises from the potential change in the Euribor reference interest rate. We manage hedging of exposure to interest rate risk: - by borrowing at a fixed interest rate and - concluding interest rate swaps (IRS). In order to mitigate interest rate risk, the Company entered into an interest rate swap (IRS) transaction in February 2024. In the structure of the Group’s and the Company’s financial liabilities 109 as at 31 December 2024, liabilities from received loans, which bear interest at fixed interest rates represent a 55.3% share.The remaining liabilities arise from long-term loans with a variable interest rate. 1 The principal balances of long-term loans have been taken into account. Exposure to interest rate risk Telekom Slovenije Group Telekom Slovenije In EUR thousand 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 Financial instruments with variable interest rate Financial liabilities 137,308 234,143 137,308 234,143 Net financial liabilities 137,308 234,143 137,308 234,143 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. Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 261 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 2024 Interest rate increase/decrease Effect on profit or loss before tax in EUR thousand Telekom Slovenije Group Telekom Slovenije EURO +100 bps -1,373 -1,373 EURO -100 bps 1,373 1,373 2023 Interest rate increase/decrease Effect on profit or loss before tax in EUR thousand Telekom Slovenije Group Telekom Slovenije EURO +100 bps -2,371 -2,371 EURO -100 bps 2,371 2,371 The calculation applies for the next 12 months. EURIBOR interest rate values EURIBOR Value at 31 Dec 2024 Value at 31 Dec 2023 Change (in percentage points) 3-month 2.714 3.909 -1.195 6-month 2.568 3.861 -1.293 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. 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, 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 2024 and 31 December 2023 Telekom Slovenije Group Telekom Slovenije in EUR thousand 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 Borrowings and other financial liabilities 392,795 412,262 399,602 418,955 Current investments and cash assets with -19,883 -56,525 -15,504 -62,378 short-term deposits Net financial liabilities 372,912 355,737 384,098 356,577 Equity 672,947 658,638 699,948 630,189 Balance sheet total 1,338,533 1,317,866 1,300,543 1,250,315 Debt-to-equity ratio 55.4% 54.0% 54.9% 56.6% Equity-to-total assets ratio 50.3% 50.0% 53.8% 50.4% Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 262 46. Events after the reporting date • At Telekom Slovenije, we have detected a cyber incident in which some internal business data was exposed. Immediate measures were taken to contain and stop the incident, preventing its continuation and spread. The breach occurred in the support system for incident management and troubleshooting. We emphasize that there was no breach of our customer databases or their communications. After the reporting date, there were no events that significantly impacted the financial statements for the year 2024. Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 263 9.3 Independent auditor’s report for the Telekom Slovenije Group and the company Telekom Slovenije Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 264 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 265 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 266 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 267 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 268 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 269 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 270 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 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 Telephone: +386 1 234 19 50 Website: www.gvo.si Email: [email protected] 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: [email protected], [email protected] 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: [email protected] 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: [email protected] 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 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 II Email: [email protected] Facebook: TSinpo, storitveno in invalidsko podjetje Companies abroad Company: IPKO Telecommunications LLC Registered office: Prishtina, Kosovo Address: Lagija Ulpiana Rruga Zija Shemsiu Nr. 34, Prishtina Telephone: +381 38 700 700 Website: www.ipko.com Email: [email protected] LinkedIn: IPKO Telecommunications Facebook: IPKO Telecommunications Instagram: IPKO Telecommunications Twitter: IPKO Telecommunications YouTube: IPKO Telecommunications TikTok: IPKO Telecommunications 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., Belgrade-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 2024 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 EBITDA / sales revenue x 100 Measure of commercial success and profitability. Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 IV Alternative performance measure Calculation methodology Selection of measure proportion of sales revenue (%) Earnings before interest, taxes, depreciation and amortisation as a proportion of operating revenues (%) EBITDA / operating revenues x 100 Measure of commercial success and profitability. The measure is used by SDH to measure the performance of companies with capital assets of the state. Adjusted net profit or loss Net profit or loss after taxes taking into account adjustments for one-off events that are not part of ordinary operations, such as 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. Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 V Alternative performance measure Calculation methodology Selection of measure 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. 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. RONA (return on net assets) in % Operating profit / (average assets during the period - average operating liabilities during the period - average current accrued expenses and deferred income during the period) The indicator shows whether a company is using its resources efficiently to generate profits. 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 2024 VI 10.3 Commitments and membership in associations 110 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 (SI.RISK) • 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) • Code for regulating hate speech on websites (Siol.net digital media) • Natura 2000, a European network of special protection areas (Soline) • Alliance of Companies Employing Disabled People of Slovenia (TSinpo, as founding member of interest association) • Slovenian Corporate Integrity Guidelines • Commitment to respect human rights in the course of operations in the scope of the National Action Plan of the Republic of Slovenia on the Respect of Human Rights in Business • Socially Responsible Employer Certificate Kosovo – IPKO • Chamber of Commerce • American Chamber of Commerce • European Investors Council 110 GRI 2-28 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 VII • Society of Cable Telecommunications Engineers Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 VIII 10.4 Disclosure requirements in ESRS covered by the undertaking’s sustainability statement 111 Still to be refreshed List of material requirements by disclosure Section/page ESRS 2 – General disclosures BP-1 – General basis for preparation of sustainability statements 8.1.1/87 BP-2 – Disclosures in relation to specific circumstances 8.1.1/87 GOV-1 – The role of the administrative, management and supervisory bodies 8.1.2/89 GOV-2 – Information provided to and sustainability matters addressed by the undertaking’s administrative, management and supervisory bodies 8.1.2/89 GOV-3 – Integration of sustainability-related performance in incentive schemes 8.1.2/89 GOV-4 – Statement on due diligence 8.1.2/89 GOV-5 – Risk management and internal controls over sustainability reporting 8.1.2/89 SBM-1 – Strategy, business model and value chain 8.1.3/93 SBM-2 – Interests and views of stakeholders 8.1.4/98 SBM-3 – Material impacts, risks and opportunities and their interaction with strategy and business model 8.1.5/102 IRO-1 – Description of the processes to identify and assess material impacts, risks and opportunities 8.1.5/102 IRO-2 – Disclosure requirements in ESRS covered by the undertaking’s sustainability statements Priloga 10.4/VIII E1 – Climate change ESRS 2 GOV-3-E1 – Integration of sustainability-related performance in incentive schemes 8.1.2/89 E1-1 – Transition plan for climate change mitigation 8.2.1/109 ESRS 2 GOV-3-E1 – Material impacts, risks and opportunities and their interaction with strategy and business model 8.2.1/109 ESRS 2 IRO-1-E1 – Description of the processes to identify and assess material climate-related impacts, risks and opportunities 8.2.1/109 E1-2 – Policies related to climate change mitigation and adaptation 8.2.1/109 E1-3 – Actions and resources in relation to climate change policies 8.2.1/109 E1-4 – Targets related to climate change mitigation and adaptation 8.2.1/109 E1-5 – Energy consumption and mix 8.2.1/109 E1-6 – Gross Scopes 1, 2 and 3 and total GHG emissions 8.2.1/109 S1 – Own workforce ESRS 2 SBM-2-S1 – Interests and views of stakeholders 8.1.4/98 ESRS 2 SBM-3-S1 – Material impacts, risks and opportunities and their interaction with strategy and business model 8.3.1/133 S1-1 – Policies related to own workforce 8.3.1/133 S1-2 – Processes for engaging with own workers and workers’ representatives about impacts 8.3.1/133 S1-3 – Processes to remediate negative impacts and channels for own workers to raise concerns 8.3.1/133 S1-4 – Taking action on material impacts on own workforce, and approaches to mitigating material risks and pursuing material opportunities related to own workforce, and effectiveness of those actions 8.3.1/133 S1-5 – Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities 8.3.1/133 111 ESRS IRO-2_02 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 IX List of material requirements by disclosure Section/page S1-6 – Characteristics of the undertaking’s employees 8.3.1/133 S1-7 – Characteristics of non-employee workers in the undertaking’s own workforce 8.3.1/133 S1-8 – Collective bargaining coverage and social dialogue 8.3.1/133 S1-9 – Diversity metrics 8.3.1/133 S1-10 – Adequate wages 8.3.1/133 S1-12 – Persons with disabilities 8.3.1/133 S1-13 – Training and skills development metrics 8.3.1/133 S1-14 – Health and safety metrics 8.3.1/133 S1-15 – Work-life balance metrics 8.3.1/133 S1-16 – Compensation metrics (pay gap and total compensation) 8.3.1/133 S1-17 – Incidents, complaints and severe human rights impacts 8.3.1/133 S4 – Consumers and end-users ESRS 2 SBM-2-S4 – Interests and views of stakeholders 8.1.4/98 ESRS 2 SBM-3-S4 – Material impacts, risks and opportunities and their interaction with strategy and business model 8.3.2/146 S4-1 – Policies related to consumers and end-users 8.3.2/146 S4-2 – Processes for engaging with consumers and end-users about impacts 8.3.2/146 S4-3 – Processes to remediate negative impacts and channels for consumers and end-users to raise concerns 8.3.2/146 S4-4 – Taking action on material impacts on consumers and end-users, and approaches to managing material risks and pursuing material opportunities related to consumers and end-users, and the effectiveness of those actions 8.3.2/146 S4-5 – Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities 8.3.2/146 G1 – Business conduct ESRS 2 GOV-1-G1 – The role of the administrative, management and supervisory bodies 8.1.2/89 ESRS 2 IRO-1-G1 – Description of the processes to identify and assess material impacts, risks and opportunities 8.1.2/89 G1-1 – Corporate culture and business conduct policies 8.4.1/157 G1-2 – Management of relationships with suppliers 8.4.2/162 G1-3 – Prevention and detection of corruption or bribery 8.4.1/157 G1-4 – Confirmed incidents of corruption or bribery 8.4.1/157 G1-6 – Payment practices 8.4.1/157 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 X 10.5 List of datapoints in cross-cutting and topical standards that derive from other EU legislation 112 ESRS 2 disclosure IRO-2, paragraph 56 and ESRS 2 Appendix B Disclosure requirement and related datapoint SFDR reference Pillar 3 reference Benchmark regulation reference EU climate law reference Material / immaterial Page ESRS 2 GOV-1 Board's gender diversity, paragraph 21(d) Indicator number 13 of Table #1 of Annex 1 Commission Delegated Regulation (EU) 2020/1816, Annex II 8.1.2/89 ESRS 2 GOV-1 Percentage of board members who are independent, paragraph 21(e) Delegated Regulation (EU) 2020/1816, Annex II 8.1.2/89 ESRS 2 GOV-4 Statement on due diligence, paragraph 30 Indicator number 10 of Table #3 of Annex 1 8.1.2/89 ESRS 2 SBM-1 Involvement in activities related to fossil fuel activities, paragraph 40(d)(i) Indicator number 4 of Table #1 of Annex 1 Article 449a of Regulation (EU) No 575/2013; Implementing Regulation (EU) 2022/2453, Table 1: Qualitative information on environmental risk and Table 2: Qualitative information on social risk Delegated Regulation (EU) 2020/1816, Annex II IMMATERIAL ESRS 2 SBM-1 Involvement in activities related to chemical production, paragraph 40(d)(ii) Indicator number 9 of Table #2 of Annex 1 Delegated Regulation (EU) 2020/1816, Annex II IMMATERIAL ESRS 2 SBM-1 Involvement in activities related to controversial weapons, paragraph 40 (d)(iii) Indicator number 14 of Table #1 of Annex 1 Delegated Regulation (EU) 2020/1818, Article 12(1) of Delegated Regulation (EU) 2020/1816, Annex II IMMATERIAL 112 ID: IRO-2_01 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 XI Disclosure requirement and related datapoint SFDR reference Pillar 3 reference Benchmark regulation reference EU climate law reference Material / immaterial Page ESRS 2 SBM-1 Involvement in activities related to cultivation and production of tobacco, paragraph 40(d)(iv) Delegated Regulation (EU) 2020/1818, Article 12(1), Delegated Regulation (EU) 2020/1816, Annex II IMMATERIAL ESRS E1-1 Transition plan to reach climate neutrality by 2050, paragraph 14 Regulation (EU) 2021/1119, Article 2(1) 8.2.1/109 ESRS E1-1 Undertakings excluded from Paris-aligned benchmarks, paragraph 16(g) Article 449a of Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453, Template 1: Banking book - Climate change transition risk: Credit quality of exposures by sector, emissions and residual maturity Delegated Regulation (EU) 2020/1818, Article 12(1), points (d) to (g), and Article 12(2) IMMATERIAL ESRS E1-4 GHG emission reduction targets, paragraph 34 Indicator number 4 of Table #2 of Annex 1 Article 449a of Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453, Template 3: Banking book – Climate change transition risk: alignment metrics Delegated Regulation (EU) 2020/1818, Article 6 8.2.1/109 ESRS E1-5 Energy consumption from fossil sources disaggregated by sources (only high climate impact sectors), paragraph 38 Indicator number 5 of Table #1 and Indicator number 5 of Table #2 of Annex 1 IMMATERIAL ESRS E1-5 – Energy consumption and mix, paragraph 37 Indicator number 5 of Table #1 of Annex 1 8.2.1/109 ESRS E1-5 Energy intensity associated with activities in high climate impact sectors, paragraphs 40 to 43 Indicator number 6 of Table #1 of Annex 1 IMMATERIAL Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 XII Disclosure requirement and related datapoint SFDR reference Pillar 3 reference Benchmark regulation reference EU climate law reference Material / immaterial Page ESRS E1-6 Gross Scopes 1, 2, 3 and total GHG emissions, paragraph 44 Indicators number 1 and 2 of Table #1 of Annex 1 Article 449a of Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453, Template 1: Banking book - Climate change transition risk: Credit quality of exposures by sector, emissions and residual maturity Delegated Regulation (EU) 2020/1818, Articles 5(1), 6 and 8(1) 8.2.1/109 ESRS E1-6 Gross GHG emissions intensity, paragraphs 53 to 55 Indicator number 3 of Table #1 of Annex 1 Article 449a of Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453, Template 3: Banking book – Climate change transition risk: alignment metrics Delegated Regulation (EU) 2020/1818, Article 8(1) 8.2.1/109 ESRS E1-7 GHG removals and carbon credits, paragraph 56 Regulation (EU) 2021/1119, Article 2(1) IMMATERIAL ESRS E1-9 Exposure of the benchmark portfolio to climate- related physical risks, paragraph 66 Delegated Regulation (EU) 2020/1818, Annex II; Delegated Regulation (EU) 2020/1816, Annex II IMMATERIAL ESRS E1-9 Disaggregation of monetary amounts by acute and chronic physical risk, paragraph 66(a) ESRS E1-9 Location of significant assets at material physical risk, paragraph 66(c) Article 449a of Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453, paragraphs 46 and 47; Template 5: Banking book – Climate change physical risk: Exposures subject to physical risk IMMATERIAL Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 XIII Disclosure requirement and related datapoint SFDR reference Pillar 3 reference Benchmark regulation reference EU climate law reference Material / immaterial Page ESRS E1-9 – Breakdown of the carrying value of its real estate assets by energy-efficiency classes, paragraph 67(c) Article 449a of Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453, paragraph 34; Template 2: Banking book – Climate change transition risk: Loans collateralised by immovable property – Energy efficiency of the collateral IMMATERIAL ESRS E1-9 Degree of exposure of the portfolio to climate – related opportunities, paragraph 69 Delegated Regulation (EU) 2020/1818, Annex II IMMATERIAL ESRS E2-4 Amount of each pollutant listed in Annex II of the E- PRTR Regulation (European Pollutant Release and Transfer Register) emitted to air, water and soil, paragraph 28 Indicator number 8 of Table #1 of Annex 1, indicator number 2 of Table #2 of Annex 1, indicator number 1 of Table #2 of Annex 1, indicator number 3 of Table #2 of Annex 1 IMMATERIAL ESRS E3-1 Water and marine resources, paragraph 9 Indicator number 7 of Table #2 of Annex 1 IMMATERIAL ESRS E3-1 Dedicated policy, paragraph 13 Indicator number 8 of Table #2 of Annex 1 IMMATERIAL ESRS E3-1 Sustainable oceans and seas, paragraph 14 Indicator number 12 of Table #2 of Annex 1 IMMATERIAL ESRS E3-4 Total water recycled and reused, paragraph 28(c) Indicator number 6.2 of Table #2 of Annex 1 IMMATERIAL ESRS E3-4 Total water consumption in m3 per net revenue on own operations, paragraph 29 Indicator number 6.1 of Table #2 of Annex 1 IMMATERIAL ESRS 2 – IRO-1 – E4, paragraph 16(a), point (i) Indicator number 7 of Table #1 of Annex 1 IMMATERIAL Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 XIV Disclosure requirement and related datapoint SFDR reference Pillar 3 reference Benchmark regulation reference EU climate law reference Material / immaterial Page ESRS 2 – IRO-1 – E4, paragraph 16(b) Indicator number 10 of Table #2 of Annex 1 IMMATERIAL ESRS 2 – IRO-1 – E4, paragraph 16(c) Indicator number 14 of Table #2 of Annex 1 IMMATERIAL ESRS E4-2 Sustainable land / agriculture practices or policies, paragraph 24(b) Indicator number 11 of Table #2 of Annex 1 IMMATERIAL ESRS E4-2 Sustainable oceans / seas practices or policies, paragraph 24(c) Indicator number 12 of Table #2 of Annex 1 IMMATERIAL ESRS E4-2 Policies to address deforestation, paragraph 24(d) Indicator number 15 of Table #2 of Annex 1 IMMATERIAL ESRS E5-5 Non-recycled waste, paragraph 37(d) Indicator number 13 of Table #2 of Annex 1 IMMATERIAL ESRS E5-5 Hazardous waste and radioactive waste, paragraph 39 Indicator number 9 of Table #1 of Annex 1 IMMATERIAL ESRS 2 – SBM-3 – S1 Risk of incidents of forced labour, paragraph 14(f) Indicator number 13 of Table #3 of Annex 1 IMMATERIAL ESRS 2 – SBM-3 – S1 Risk of incidents of child labour, paragraph 14(g) Indicator number 12 of Table #3 of Annex 1 IMMATERIAL ESRS S1-1 Human rights policy commitments, paragraph 20 Indicator number 9 of Table #3 and indicator number 11 of Table #1 of Annex 1 8.3.1/133 ESRS S1-1 Due diligence policies on issues addressed by the fundamental International Labor Organisation Conventions 1 to 8, paragraph 21 Delegated Regulation (EU) 2020/1816, Annex II 8.3.1/133 ESRS S1-1 Processes and measures for preventing trafficking in human beings, paragraph 22 Indicator number 11 of Table #3 of Annex 1 IMMATERIAL Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 XV Disclosure requirement and related datapoint SFDR reference Pillar 3 reference Benchmark regulation reference EU climate law reference Material / immaterial Page ESRS S1-1 Workplace accident prevention policy or management system, paragraph 23 Indicator number 1 of Table #3 of Annex 1 8.3.1/133 ESRS S1-3 Grievance/complaint handling mechanisms, paragraph 32(c) Indicator number 5 of Table #3 of Annex 1 8.3.1/133 ESRS S1-14 Number of fatalities and number and rate of work- related accidents, paragraph 88(b) and (c) Indicator number 2 of Table #3 of Annex 1 Delegated Regulation (EU) 2020/1816, Annex II IMMATERIAL ESRS S1-14 Number of days lost to injuries, accidents, fatalities or illness, paragraph 88(e) Indicator number 3 of Table #3 of Annex 1 8.3.1/133 ESRS S1-16 Unadjusted gender pay gap, paragraph 97(a) Indicator number 12 of Table #1 of Annex 1 Delegated Regulation (EU) 2020/1816, Annex II 8.3.1/133 ESRS S1-16 Excessive CEO pay ratio, paragraph 97(b) Indicator number 8 of Table #3 of Annex 1 IMMATERIAL ESRS S1-17 Incidents of discrimination, paragraph 103(a) Indicator number 7 of Table #3 of Annex 1 8.3.1/133 ESRS S1-17 – Non-respect of UNGPs on Business and Human Rights and OECD, paragraph 104(a) Indicator number 10 of Table #1 and indicator number 14 of Table #3 of Annex 1 Delegated Regulation (EU) 2020/1816, Annex II; Delegated Regulation (EU) 2020/1818, Article 12(1) IMMATERIAL ESRS 2 – SBM-3 – S2 Significant risk of child labour or forced labour in the value chain, paragraph 11(b) Indicators number 12 and 13 of Table #3 of Annex 1 IMMATERIAL ESRS S2-1 Human rights policy commitments, paragraph 17 Indicator number 9 of Table #3 and indicator number 11 of Table #1 of Annex 1 IMMATERIAL ESRS S2-1 – Policies related to value chain workers, paragraph 18 Indicators number 11 and 4 of Table #3 of Annex 1 IMMATERIAL Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 XVI Disclosure requirement and related datapoint SFDR reference Pillar 3 reference Benchmark regulation reference EU climate law reference Material / immaterial Page ESRS S2-1 – Non-respect of UNGPs on Business and Human Rights principles and OECD guidelines, paragraph 19 Indicator number 10 of Table #1 of Annex 1 Delegated Regulation (EU) 2020/1816, Annex II; Delegated Regulation (EU) 2020/1818, Article 12(1) IMMATERIAL ESRS S2-1 Due diligence policies on issues addressed by the fundamental International Labor Organisation Conventions 1 to 8, paragraph 19 Delegated Regulation (EU) 2020/1816, Annex II IMMATERIAL ESRS S2-4 Human rights issues and incidents connected to its upstream and downstream value chain, paragraph 36 Indicator number 14 of Table #3 of Annex 1 IMMATERIAL ESRS S3-1 Human rights policy commitments, paragraph 16 Indicator number 9 of Table #3 of Annex 1 and indicator number 11 of Table #1 of Annex 1 IMMATERIAL ESRS S3-1 Non-respect of UNGPs on Business and Human Rights, ILO principles or and OECD guidelines, paragraph 17 Indicator number 10 of Table #1 of Annex 1 Delegated Regulation (EU) 2020/1816, Annex II; Delegated Regulation (EU) 2020/1818, Article 12(1) IMMATERIAL ESRS S3-4 Human rights issues and incidents, paragraph 36 Indicator number 14 of Table #3 of Annex 1 8.3.1/133 ESRS S4-1 – Policies related to consumers and end-users, paragraph 16 Indicator number 9 of Table #3 and indicator number 11 of Table #1 of Annex 1 8.3.2/146 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 XVII Disclosure requirement and related datapoint SFDR reference Pillar 3 reference Benchmark regulation reference EU climate law reference Material / immaterial Page ESRS S4-1 Non-respect of UNGPs on Business and Human Rights and OECD guidelines, paragraph 17 Indicator number 10 of Table #1 of Annex 1 Delegated Regulation (EU) 2020/1816, Annex II; Delegated Regulation (EU) 2020/1818, Article 12(1) IMMATERIAL ESRS S4-4 Human rights issues and incidents, paragraph 35 Indicator number 14 of Table #3 of Annex 1 IMMATERIAL ESRS G1-1 United Nations Convention against Corruption, paragraph 10(b) Indicator number 15 of Table #3 of Annex 1 8.4.1/157 ESRS G1-1 Protection of whistle- blowers, paragraph 10(d) Indicator number 6 of Table #3 of Annex 1 8.4.1/157 ESRS G1-4 Fines for violation of anti-corruption and anti-bribery laws, paragraph 24(a) Indicator number 17 of Table #3 of Annex 1 Delegated Regulation (EU) 2020/1816, Annex II 8.4.1/157 ESRS G1-4 Standards of anti- corruption and anti- bribery, paragraph 24 (b) Indicator number 16 of Table #3 of Annex 1 8.4.1/157 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 XVIII 10.6 GRI and SASB content 113 Content according to GRI (Global Reporting Initiative) Reporting Standards GRI standard Description of disclosure Section/ page Omitted requirements Reason and explanation for omission GRI 417: Marketing and labelling 2016 3-3 Management of material topics 8.3.2/146 We do not report on product marking. 417-3 Total number of incidents of non-compliance with regulations and codes concerning marketing communications, including advertising, promotion and sponsorship, by type of non- compliance and by outcomes 8.3.2/146 GRI 418: Customer privacy 2016 3-3 Management of material topics 8.4.1/157 418-1 Substantiated complaints concerning breaches of customer privacy and losses of customer data 8.4.1/157 SPECIFIC SECTOR INDICATORS (GRI G4) – MEDIA Accessibility to media content DMA 8.3.2/146 G4-M4 Measures to improve accessibility to media content and the protection of vulnerable audiences 8.3.2/146 SPECIFIC SECTOR INDICATORS GRI 2002 – TELECOMMUNICATIONS Internal operations IO1 Infrastructure investments in the telecommunications network by region 7.5/61 7.6/62 IO3 Health and safety measures for field personnel 8.3.3/154 Provision of access to ICT products and services PA1 Policies and practices for providing access to the telecommunications infrastructure, products and 8.3.2/146 113 ESRS BP-2_17 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 XIX services to the population in remote, less populated regions PA2 Policies and practices for overcoming obstacles in accessing and using telecommunication products and services relating to the language, culture, illiteracy, deficient education, revenues, special needs and age 8.3.2/146 PA4 Quantitative level of available telecommunication products and services in operating regions 7.7.2/72 8.3.2/146 PA6 Programmes for providing and maintaining telecommunication links and services in extraordinary circumstances and in the event of natural disasters 8.1.1/87 We manage emergencies with the business continuity management system. PA8 Policies and practices to publicly communicate on EMR-related issues 8.2.1/109 PA10 Initiatives to ensure the clarity of charges and tariffs 8.3.2/146 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). 7.7.2/72 8.2.1/109 Content according to Sustainability Accounting Standard of the SASB (Sustainability Accounting Standards Board) Topic Description of indicator Section/page Indicator code Environment al footprint of operations Energy consumption 8.2.1/109 TC-TL-130a.1 Competitive behaviour and open internet Total amount of monetary losses as a result of legal proceedings associated with anticompetitive behaviour regulations 8.4.1/157 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 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 XX Data privacy Description of policies and practices relating to behavioural advertising and customer privacy 8.4.1/157 TC-TL-220a.1 Total amount of monetary losses as a result of legal proceedings associated with customer privacy 8.4.1/157 TC-TL-220a.3 Data security Number of personal data breaches 8.4.1/157 TC-TL-230a.1 Description of approach to identifying and addressing data security risks, including use of cyber security standards 8.4.1/157 TC-TL-230a.2 Data regarding operations Number of wireless subscribers 7.7.2/72 TC-TL-000.A Number of wireline subscribers 7.7.2/72 TC-TL-000.B Number of broadband subscribers 7.7.2/72 TC-TL-000.C Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 XXI 10.7 Abbreviations of technical terms Abbreviation English term Slovene translation Cloud services Storitve v oblaku 2FA Two-Factor Authentication Dvofaktorska avtentifikacija 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 6G 6th generation mobile network Mobilno omrežje šeste generacije AAS Attitude-Activation-Satisfaction Model Model Stališč-Aktivacije-Zadovoljstva ADSL Asymmetric digital subscriber line Asimetrični digitalni naročniški vod AI Artificial Intelligence Umetna unteligenca AJPES Agency of the Republic of Slovenia for Public Legal Records and Services Agencijo za javnopravne evidence in storitve 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 ARSO Slovenian Environment Agency Agencija Republike Slovenije za okolje AVK Slovenian Competition Protection Agency Javna agencija Republike Slovenije za varstvo konkurence B2B Business to Business Poslovanje med podjetji BCaaS Business Connect as a service Sodobna rešitev za upravljanje dokumentarnega gradiva kot storitev BDP Gross Domestic Product Bruto domači proizvod BIO Biodiversity and ecosystems Biotska raznovrstnost in ekosistemi BSI British Standards Institution Britanski inštitut za standardizacijo BSS Business Support Systems Poslovni podporni sistemi CAM Connected and Automated Mobility Samodejna mobilnost CAPEX Capital Expenditure Vrednost investicij CCA Climate change adaptation Preprečevanje onesnaževal v sisteme Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 XXII Abbreviation English term Slovene translation CCM Climate change mitigation Blažitev podnebnih sprememb CE Circular economy Krožno gospodarstvo CEF The Connecting Europe Facility Instrument za povezovanje Evrope CO2-ekv Carbon dioxide equivalent Ekvivalent ogljikovega dioksida CPE Customer permises equipment Oprema pri uporabniku CPQ Configure Price Quote Konfiguracija ponudbe cen CRM Customer Relationship Management Upravljanje odnosov s strankami CSI Customer Satisfaction Index Indeks zadovoljstva uporabnikov CSP Clould Solution Provider Ponudnik rešitev v oblaku CSRD Corporate Sustainability Reporting Directive Direktiva o trajnostnem poročanju CTI Cyber Threat Intelligence Kibernetsko obveščanje o grožnjah DDOS Distributed Denial of Services Porazdeljena zavrnitev storitve DDV Value added tax Davek na dodano vrednost DMA Double Materiality Assesment Ocena dvojne pomembnosti DORA Digital Operational Resilience Act Akt o digitalni operativni odpornosti DVD Digital Video Disc Digitalni Video Disk DWDM ROADM Dense Wavelength Division Multiplexing – Reconfigurable Optical Add-Drop Multiplexer Tehnologija za prenos podatkov v optičnih omrežjih, ki omogoča učinkovito uporabo svetlobnih valovnih dolžin za prenos velike količine podatkov. EBA European Banking Authority Evropski bančni organ 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 EEA European Economic Area Evropsko gospodarsko območje EETS European Electronic Toll Service Evropska storitev elektronskega cestninjenja EK European Commission Evropska komisija EMS Electromagnetic radiation Elektromagnetna sevanja EN European Standards Evropski standardi ERP Enterprise Resource Planning Poslovni informacijski sistem ESA European Space Agency Evropska vesoljska agencija Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 XXIII Abbreviation English term Slovene translation ESG Environment, social, governance Okolje, družba, upravljanje ESI Economic Sentiment Indicator Ekonomski sentimentni indeks eSIM Embedded Subscriber Identity Module Elektronska kartica naročnika ESMA European Securities and Markets Authority Evropski nadzorni organ za vrednostne papirje in trge ESRS European Sustainability Reporting Standards Evropski standardi poročanja o trajnostnosti ESS European Social Fund Evropski socialni sklad ETNO European Telecommunications Network Operators Evropsko združenje telekomunikacijskih operaterjevđ EU European Union Evropska unija FIS International Ski Federation Mednarodna smučarska zveza FIVB VNL Fédération Internationale de Volleyball - Volleyball Nations League Liga narodov v odbojki FTTH Fiber To The Home Optično vlakno do doma GDPR General Data Protection Regulation Splošna uredba o varstvu podatkov GeSI The Global Enabling Sustainability Initiative Globalna pobuda za trajnostni razvoj GHG Protocol GHG Protocol Corporate Accounting and Reporting Standar Protokol o toplogrednih plinih Standardi za podjetniško računovodstvo in poročanje GRI Global reporting initiative Pobuda za globalno poročanje GSMA GSM Association Združenje GSM GZS Chamber of Commerce and Industry of Slovenia Gospodarska zbornica Slovenija 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 IEC International Electrotechnical Commission Mednarodna elektrotehniška komisija IFRS International Financial Reporting Standards Mednarodni standardi računovodskega poročanja IIoT Industrial Internet of Things Industrijski internet stvari Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 XXIV Abbreviation English term Slovene translation IKT Information and Communication Technologies Informacijsko komunikacijske tehnologije IMF International Monetary Fund Mednarodni denarni sklad INFOSEK Information Security Informacijska varnost IoT Internet of Things Internet stvari IPTV IP television Televizija prek internetnega protokola IRO Impact Risk Opportunity Vpliv tveganje priložnost ISO International Organization for Standardization Mednarodna organizacija za standardizacijo IT Information Technology Informacijska tehnologija ITU International Telecommunication Union Mednarodna telekomunikacijska zveza IUCN International Union for Conservation of Nature Mednarodna zveza za varstvo narave KDD Clearing and Depository Company Klirinško depotna družba KPI Key Performance Indicator Ključni kazalnik uspešnosti KPSS Sečovlje Salina Nature park Krajinski park Sečoveljske soline LASIM Logistical and Advanced Services for Integrated Mobility Logistične in napredne storitve za integrirano mobilnost LCA Life Cycle Assessment Ocena življenjskega cikla LDPE Low-Density Polyethylene Polietilen nizke gostote LLC Limited Liability Company Družba z omejeno odgovornostjo LTE-M Long Term Evolution for Machines LTE za strojno komunikacijo M.O.S.T. Motivated, open, confident, and team-oriented Motivirani, odprti, samozavestni in timski MDR-A Minimum disclosure requirement - Actions Minimalne zahteve po razkritju v zvezi z ukrepi MDR-M Minimum disclosure requirement - Metrics Minimalne zahteve po razkritju v zvezi z metrikami MDR-P Minimum disclosure requirement - Policies Minimalne zahteve po razkritju v zvezi s politikami MDR-T Minimum disclosure requirement - Targets Minimalne zahteve po razkritju v zvezi s cilji MOSS Slovenian ranking reach of websites Merjenje obiskanosti spletnih strani Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 XXV Abbreviation English term Slovene translation MPLS Multiprotocol label switching Tehnologija za posredovanje, usmerjanje in preklapljanje prometnih tokov skozi omrežje MSRP International Financial Reporting Standards Mednarodni standardi računovodskega poročanja MSSP Managed Security Services Partner Partner za upravljanje varnostnih storitev NB-IoT Narrowband Internet of Things Ozkopasovni internet stvari 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 OSS Operations Support system Sistem za podporo delovanja OŠO Open Broadband network Odprto širokopasovno omrežja OTT Over-the-top content Storitve, ki delujejo neodvisno od omrežja – distribucija video- in avdiovsebin prek interneta PEGI Pan European Game Information Pan-evropske informacije o igrah POI Certificate of Origin from Low- Carbon Sources Potrdilo o izvoru nizko-ogljičnih virov PPA Power Purchase Agreement Pogodba o nakupu električne energije PPC Pollution prevetion and control Preprečevanje in nadzorovanje onesnaževanja PWAS Public warning alarm system Sistem za javno alarmiranje in obveščanje QR Quick response Hitri odziv RAN Radio Access Network Radijsko dostopovno omrežje REACT-EU Recovery Assistance for Cohesion and the Territories of Europe Obnova in pomoč za kohezijska območja in ozemlja Evrope RF Radio Frequency Bands Radiovalovni pasovi ROADM Reconfigurable Optical Add-Drop Multiplexer Nastavljiv optični multipleksor za dodajanje in odvzemanje ROE Return on Equity Dobičkonosnost kapitala RONA Return on Net Assets Donosnost neto sredstev SaaS Software as a service Programska oprema kot storitev Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 XXVI Abbreviation English term Slovene translation SAP Systems Applications and Products Programska oprema za posel SAP BO SAP BusinessObjects Zbirka poslovnih analitičnih orodij, ki podjetjem pomaga pri izvajanju naprednih analiz, poročanju in vizualizaciji podatkov. SAP ERP Systems, Applications, and Products in Data Processing Celovita programska rešitev, ki omogoča podjetjem avtomatizacijo in integracijo različnih poslovnih funkcij, kot so financiranje, prodaja, nabava, proizvodnja, skladiščenje in kadrovski postopki. SAPaaS SAP as a service Aplikacija SAP SASB Sustainability Accounting Standards Board Odbor za trajnostne računovodske standarde SBITOP Slovenian Stock Market Index Slovenski borzni indeks SBM Strategy and Business Model Strategija in poslovni model SBTi Science Based Targets initiative Iniciativa za cilje, temelječe na znanstvenih dognanjih SDG / ESG Sustainable Development Goals Cilji trajnostnega razvoja SDH Slovenian Sovereign Holding Slovenski državni holding SIEM Security Information and Event Management Upravljanje varnostnih informacij in dogodkov SIM Subscriber Identity Module Kartica naročnika SIST Slovenian Institute for Standardization Slovenski inštitut za standardizacijo SIST EN ISO Slovenian standard aligned with European and International Standards Slovenski standard, ki je usklajen z evropskimi in mednarodnimi standardi SMS Short Message Service Storitev kratkih sporočil SOK Slovenian Advertising Code Slovenski oglaševalski kodeks SoMo Social mobile Socialno mobilni SPLA Service Provider Licence Agreement Licenčni sporazum za ponudnika storitev SPS Climate Change Fund Sklad za podnebne spremembe SRO Environmental Management System Sistem ravnanja z okoljem SUNP Business continuity management system Sistem upravljanja neprekinjenega poslovanja Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 XXVII Abbreviation English term Slovene translation SURE Efficient Energy Management System Sistem učinkovitega ravnanja z energijo SURS Statistical office of Republic Slovenia Statistični urad Republike Slovenije SUVI Information security management system Sistem upravljanja varovanja informacij TDM Time Division Multiplex Časovni multipleks, sistem s porazdeljevanjem časa TGP Greenhouse gases Toplogredni plini TIP Internal portal of Telekom Slovenije Interni portal Telekoma Slovenije TLSG Shares of Telekom Slovenije Delnica družbe Telekom Slovenije TOM telefon Phone for children and adolescents Telefon za otroke in mladostnike TRM Technical Resource Management Sistem za upravljanje tehničnih virov TSLO-CERT Telekom Slovenije – Cyber security Response Team Odzivni center za kibernetsko varnost Telekoma Slovenije UMAR Institute of macroeconomic analysis and development Urad za makroekonomske analize in razvoj USB Universal Serial Bus Univerzalni serijski vod 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. VCSP Veeam Cloud and Service Provider Veeam oblak in ponudnik storitev VDSL Very High Speed Digital Subscriber Line Digitalni naročniški vod z zelo visokimi hitrostmi VFH GMDSS Very High Frequency system within the Global Maritime Distress and Safety System Sistem zelo visoke frekvence v okviru svetovnega sistema za pomorsko nujno pomoč in varnost VNC Security Control Centre Varnostno nadzorni center VoLTE Voice over Long-Term Evolution Glas preko LTE Wi-Fi Wireless Fidelity Brezžično omrežje po standardih IEEE 802.11 WTR Water and marine resources Vodni in morski viri 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 ZEK-om-2 Electronic Communications Act Zakon o elektronskih komunikacijah Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 XXVIII Abbreviation English term Slovene translation 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 ZVZD Occupational Health and Safety Act Zakon o varstvu in zdravju pri delu ZZPri Whistleblower Protection Act Zakon o zaščiti prijaviteljev Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2024 XXIX Publisher: Telekom Slovenije, d.d., Cigaletova 15, 1000 Ljubljana ‒ official version Text and editing: Telekom Slovenije Group and Studio Kernel, d.o.o. Text revision and translation: Amidas d.o.o. Photography: Telekom Slovenije Group Ljubljana, April 2025
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