Annual Report (ESEF) • Apr 18, 2024
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Download Source FileTelekom Slovenije, d.d. (hereinafter: Telekom Slovenije) is the leading Slovenian provider of the most advanced ICT services and solutions. The Company continuously ensures the development and introduction of new innovative technologies. It provides subscribers an excellent user experience and superior services that match their needs and expectations. Users rate Telekom Slovenije’s network the best in Slovenia (source: Brand Track, autumn 2023).
The Telekom Slovenije Group operates in South-East Europe. IPKO is the leading provider of mobile and fixed broadband services in Kosovo, while the Group is also present via its subsidiaries in Croatia, Bosnia and Herzegovina, Serbia, Montenegro and North Macedonia.
The activities of the Telekom Slovenije Group comprise:
Company: Telekom Slovenije, d.d.
Address: Cigaletova ulica 15, 1000 Ljubljana
Registration number: 5014018000
VAT ID number: SI98511734
Entry in the companies register: 1/24624/00, Ljubljana District Court
Number of shares: 6,535,478
Ticker symbol of no-par-value shares: TLSG
Telephone: +386 1 234 10 00
Website: http://www.telekom.si
Email: [email protected]
LinkedIn: telekom-slovenije
Facebook: TelekomSlovenije
Instagram: Telekom_Slovenije
X: @TelekomSlo
YouTube: TelekomSlovenije
TikTok: TelekomSlovenije
The shares of Telekom Slovenije are listed on the prime securities market of the Ljubljana Stock Exchange. See section 6 Share trading and ownership structure for more information.
[email protected] and [email protected]
Corporate communications: [email protected]
The Telekom Slovenije Group has companies in seven countries in South-East Europe. The composition of the Telekom Slovenije Group and participating interests as at 31 December 2023 are presented in the picture below, and in more detail on the website https://www.telekom.si/o-podjetju/skupina-telekom-slovenije/odvisne-druzbe.
With the deletion from the business register in Germany on 25 September 2023, the liquidation of GVO Telekommunikation GmbH was completed. That company was owned by GVO, d.o.o. There were no other changes in the composition of the Telekom Slovenije Group or in the ownership of subsidiaries in 2023.
Telekom Slovenije is the founder of the Heart Foundation, the aim of which is to help the children of employees of Slovenian Telekom Slovenije Group companies who have lost one or both parents, or who are seriously ill. The foundation’s funds are contributed voluntarily by the employees of Slovenian Telekom Slovenije Group companies.
in EUR thousand and %
| 23/22 | Total operating revenues | 708,167 | 658,953 | 107 |
|---|---|---|---|---|
| EBITDA | 228,569 | 216,452 | 106 | |
| EBITDA margin = EBITDA / sales revenue | 32.9% | 33.2% | 99 | |
| EBIT | 64,138 | 50,362 | 127 | |
| Return on sales = EBIT / sales revenue | 9.2% | 7.7% | 120 | |
| Net profit from continuing operations | 47,065 | 37,506 | 125 | |
| Assets | 1,317,866 | 1,275,338 | 103 | |
| Equity | 658,638 | 611,677 | 108 | |
| Return on equity (ROE) | 7.4% | 6.2% | 120 | |
| Equity ratio | 50.0% | 48.0% | 104 | |
| Net financial debt | 355,737 | 401,168 | 89 | |
| Net financial debt / EBITDA | 1.6 | 1.9 | 84 | |
| Investments (CAPEX) | 188,037 | 167,791 | 112 |
| 2023 | 2022 | Index |
|---|---|---|
| 3,253 | 3,262 | 100 |
| 2023 | 2022 | Index |
|---|---|---|
| 26.6% | 25.5% | 104 |
Definitions can be found in point 10.2 Alternative performance measures.
| 31 December 2023 | 31 December 2022 | Index 23/22 | |
|---|---|---|---|
| Mobile telephony | 1,908,571 | 1,842,444 | 104 |
| Broadband connections | 299,506 | 297,895 | 101 |
| 2021 | 2022 | 2023 | |
|---|---|---|---|
| in EUR million | 654 | 659 | 708 |
| 2021 | 2022 | 2023 | |
|---|---|---|---|
| in EUR million | 220.8 | 216.5 | 228.6 |
| 2021 | 2022 | 2023 | |
|---|---|---|---|
| EBIT | 51.7 | 50.4 | 64.1 |
| Net income | 37.9 | 37.5 | 47.1 |
| 2021 | 2022 | 2023 |
|---|---|---|
| 600 | 612 | 659 |
| 650 | 664 | 659 |
| 2021 | 2022 | 2023 |
|---|---|---|
| 208 | 168 | 188 |
| Equity (in EUR million) | Liabilities (in EUR million) |
|---|---|
| 399 | 401 |
| 356 |
| Year | 2023 | 2022 | Index 23/22 |
|---|---|---|---|
| Environmental indicators | |||
| Electricity consumption (in million kWh) | 87 | 90 | 97 |
| Energy intensity (in MWh/EUR million) | 125 | 138 | 91 |
| Carbon footprint per employee at Telekom Slovenije (in tonnes of CO2eq) | 11.62 | 12.72 | 91 |
| Total waste (in tonnes) | 4,103 | 6,710 | 61 |
| Use of fuel for company cars (in litres) | 1,390,733 | 1,411,536 | 99 |
| Social indicators | |||
| Number of employees | 3,253 | 3,262 | 100 |
| Average age of employees |
33.0%
32.7%
92
97
95
7.6%
7.4%
26.3
27.2
5.3%
5.6%
60.7%
40.0%
97.5%
97.0%
0.65%
0.53%
0.3%
0.3%
88%
90%
0.46%
0.43%
| Value added (in EUR thousand) | 354,697 | 334,310 |
|---|---|---|
| Value added per employee (in EUR) | 108,886 | 102,142 |
Because we do not compromise, we constantly improve the user experience. We facilitate the connection of subscribers to the internet and TV immediately following the conclusion of an agreement via mobile technology. Until now, the solution was available primarily to users in areas where setting up a fixed connection was not possible, but a mobile signal was available. The development of a high-capacity, highly stable and scalable mobile network means the service is more accessible and, above all, immediately available to users. It is very simple to connect to this service, something users can do themselves.
- Re-establishment of functioning communication services following floods, and social responsibility
A large area of Slovenia was hit by catastrophic floods in August. Our cable infrastructure was flooded, damaged or severed at both the backbone and access levels of the network in affected areas. Some functional locations were completely flooded or destroyed. Temporary connections were established for fixed services in affected areas and will be fully rehabilitated in the future, together with other infrastructure. The timetable for implementation will partly depend on the restoration of other infrastructure at the national and local levels.
We were the first operator to fully re-establish the mobile network. During this period, we also allowed the users of all other operators in Slovenia to communicate on our network via national roaming.
We earmarked donations in the total amount of EUR 250,000 to help families and individuals hit hardest by the floods, and to 20 volunteer fire brigades. We also helped those affected by the floods with services in the total amount of EUR 350,000 and through a number of other activities, which together amounted to EUR 600,000. Via SMS donations, our users donated more than one million euros to help those affected.
- Smart cities: for the Municipality of Celje, we developed a mobile application and the Centralka urban card, which facilitates the purchase of tickets and the monitoring of bus arrivals, bike rental, an overview of available parking spaces, payment for parking and the remote extension of parking. In the scope of the VARCITIES project, under the auspices of the Municipality of Novo Mesto, we established an advanced IoT platform that we integrated with environmental sensors and thus facilitated a comprehensive overview of the situation via an information solution. With this IoT solution, local communities are able to support the reduction of emissions, improve energy efficiency, ensure the smart management of lighting, mobility, traffic and parking, and monitor.
Environmental parameters, such as air quality and temperature, air pressure, humidity, noise levels and the water levels of watercourses.
In the Company’s business premises, we were the first in Slovenia to set up a demonstration environment for a private 5G mobile network, which is intended for anyone wishing to test the benefits of such networks and participate in an open innovation process. INO.LAB has different specific examples of the use of private mobile networks.
After obtaining the necessary frequencies and the completion of comprehensive testing, IPKO successfully launched the 5G network. IPKO was thus the first on the market to offer mobile data speeds in excess of 1Gbp/s.
The Company and its partners at the University of Ljubljana’s Faculty of Electrical Engineering set up a 5G research and test environment. Modern equipment at technical faculties is crucial for educating the young people who are and will be the creators of the digital future.
Together with the Slovene Federation of Pensioners’ Associations, we were chosen via public tender to provide services in the remote eCare project in the scope of the ‘Remote eCare’ project sponsored by the Ministry of Solidarity-Based Future. In the scope of the project, eCare is available to entitled parties free of charge until 30 June 2025.
Several new innovations and improvements were introduced in NEO TV. We carried out an automated update of the voice model, improved video quality, developed new targeted advertising functionalities, added new content and applications, and redesigned the NEO interface for a better user experience. We recycle NEO remote controls. Remote controls are made of high-quality, long-lasting materials. They can be repaired and re-used, and can be recycled at the end of their useful life.
We redesigned Telekom Slovenije’s Loyalty Programme in 2023.
Soline and the Ministry of Natural Resources and Spatial Planning signed an agreement on the management of the Sečovlje Salina Nature Park for the next 10-year period, i.e. until 2033. Significant events after the reporting date are presented in the financial report in point 47 Events after the reporting date.
Dear Shareholders, Investors, Business Partners and Co-Workers,
Our expectations for 2023 were based on economic uncertainty, primarily due to conditions on the energy markets. Nevertheless, the Telekom Slovenije Group drew up an ambitious business plan for 2023 with the primary objective of reversing the negative trends of recent years, and thus increasing market shares and achieving growth in revenues and the number of users in key segments of its operations.
Our operations were affected in 2023 by the floods that hit Slovenia in August. The infrastructure of Telekom Slovenije and GVO was flooded, damaged or severed in affected areas. In just two days, the experts of Telekom Slovenije and GVO re-established communication services for residents in affected areas, despite extensive damage to the infrastructure. During that period, Telekom Slovenije also ensured communications for the users of all other operators in Slovenia. Contemporary life and work is impossible to imagine without information and communication services. Telekom Slovenije once again demonstrated that it is the infrastructure and service foundation of a modern society.
In 2023, the Telekom Slovenije Group performed well, exceeded established objectives and improved operations significantly relative to 2022. All of this in adverse market conditions in the context of high energy costs and taking into account the damage caused by August’s floods. A significant improvement in operations was achieved in all key segments of operations and on all target markets. Results were driven by the tremendous efforts of the entire team.
The Telekom Slovenije Group generated EUR 708.2 million in operating revenues in 2023, an increase of 7% relative to 2022. The Group recorded an increase in revenues in several segments of its operations. The highest growth was recorded in mobile and broadband services, while the most significant increase in revenues in the ICT segment was recorded in the provision of cyber security. Also up were revenues from the Online Store, and insurance and eHealth services, while revenues were also higher on the wholesale market. All Group companies recorded an increase in revenues generated on the market. At 14%, IPKO recorded the highest growth in revenues.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) totalled EUR 228.6 million at the Telekom Slovenije Group level, an increase of EUR 12.1 million or 6% relative to 2022. The EBITDA margin (i.e. EBITDA as a proportion of sales revenue) was 32.9% at the Group level.
Earnings before interest and taxes (EBIT) amounted to EUR 64.1 million at the Telekom Slovenije Group level, an increase of 27% relative to 2022.
The Telekom Slovenije Group generated a net profit of EUR 47.1 million in 2023, the highest level since 2015. Net profit was up by EUR 9.6 million or 25% relative to 2022.
Had energy prices in 2023 remained at the 2022 level, and if there was no state aid for energy in 2023 and there was no negative effect of floods, EBITDA would have been 10% higher and EBIT would have been 46% higher than in 2022.
The Telekom Slovenije Group also recorded a decrease in net financial debt as at 31 December 2023 by 11% relative to 31 December 2022.
In Slovenia, we are consolidating our leading market share in the mobile subscriber segment, where Telekom Slovenije enjoys a 35.4% market share, and in the IPTV segment, where the Company’s market share is 41.8%. We increased our share of the fixed broadband access market to 28.0%. In Kosovo, IPKO holds a 49.2% share of the mobile telephony market and a 25.5% of the fixed telephony market.
Knowledge, and strengthening existing and developing new employee competences are the main drivers of value added. Only connected and highly qualified employees can achieve development. All employees were included in education and training during the previous year. Incentivising us is the receipt of the TOP Investor in Education certificate and the advanced Socially Responsible Employer certificate for our activities in this area. We rank amongst the ten most respected employees in Slovenia, while the Top Employer certificate represents international confirmation of the quality of our work environment.
Technological development requires advanced skills and a superior network. Established business models are amended and improved with the latest tools and technological capacities. The expected result is improved efficiency in the context of the simultaneous mitigation of sustainability risks. The need for cyber security is growing. Experts in the Cyber Security and Resilience Centre, which is one of the most advanced centres of its kind in the region, identified 85% more security incidents in 2023 than the previous year. Using modern technology, they closely monitor, analyse and respond to security threats 24 hours a day. On account of its size, experience, systems and know-how, Telekom Slovenije is an integral element of measures to increase the cyber security of companies, organisations and events.
We continued to upgrade and modernise the network in 2023. We facilitate the connection to our fibre optic network by more than 460 thousand Slovenian households, with an additional 16,980 households connected in 2023. Coverage with LTE/4G technology exceeds 97%. We covered an additional 420 thousand inhabitants with 5G technology in 2023 and strengthened the capacities of the entire mobile network, such that more than 60% of the Slovenian population is covered by 5G technology. By 2025, we will ensure 99% coverage in accordance with needs, requirements and plans. We are thus actively pursuing the vision of a gigabit digital Slovenia by 2030.
We are also improving the user experience and increasing the accessibility of services. We facilitate the immediate connection of new subscribers to the internet and TV via the mobile 4G/5G network. In our business premises, we established INO.LAB, a demonstration environment for a private 5G mobile network, to which we invite all interested stakeholders. In the scope of our smart city solution, we established an advanced Internet of Things platform in several Slovenian municipalities that facilitates a comprehensive overview of environmental data, and the monitoring of and decisions regarding sustainable mobility.
In 2023, IPKO was the first operator in Kosovo to introduce 5G technology and made very successful use of eSIM technology in addition to other advanced services.
Amongst our significant achievements in 2023, I am also pleased to highlight the fact that Telekom Slovenije and the Slovene Federation of Pensioners’ Associations were selected, via a public tender issued by the Ministry of Solidarity-Based Future, to provide eCare services. In the scope of the project, eCare is available to entitled parties free of charge until 30 June 2025, i.e. until the entry into force of the right to eCare set out in the Long-Term Care Act, which systematically governs this area.
Soline and the Ministry of Natural Resources and Spatial Planning signed an agreement on the management of the Sečovlje Salina Nature Park for the next ten-year period.
We adopted the Strategic Business Plan of the Telekom Slovenije Group for the period 2024 to 2028 at the end of 2023. The Group’s development will be ensured primarily by highly qualified and motivated employees, and through the effective use of the best technologies. Special attention will be given to improving sustainable operations and social responsibility.
a comprehensive approach and the inclusion of cyber security solutions. We will improve operational efficiency through the effective use of new technologies and tools, cost reduction and the improved efficiency of investing activities. In the coming period, we are planning further growth in our shares of the mobile telephony and fixed broadband access markets, as well as growth in revenues, EBITDA and net profit.
The full amount of distributable profit from 2022 is earmarked for the payment of dividends in 2024. In 2023, the Group took advantage of aid granted under the Act on Aid to the Economy to Mitigate the Impact of the Energy Crisis.
We are planning operating revenues of EUR 717.4 million, EBITDA of EUR 233.6 million and a net profit of EUR 43.2 million at the Telekom Slovenije Group level in 2024. Through a clear vision and strategy for further development, prudent investments and ambitious objectives, and through the increasingly effective provision of high-quality services and an excellent customer experience, we will consolidate and strengthen the trust of shareholders and all other stakeholders.
Our guiding principle is ‘Always for the Better’.
Boštjan Košak,
President of the Management Board
The members of the Management Board of Telekom Slovenije, d.d. responsible for compiling the annual report hereby confirm the financial statements of Telekom Slovenije, d.d. and the Telekom Slovenije Group for the year ending 31 December 2023, as well as the accounting policies applied and the notes to the financial statements.
The members of the Management Board of Telekom Slovenije, d.d. hereby find that:
The Management Board is also responsible for taking appropriate measures to secure assets, and for preventing and detecting fraud and other irregularities and unlawful acts.
The tax authorities may, at any time within five years following the year for which tax was levied, audit companies’ operations, which can result in an additional tax liability. The Management Board is not aware of any circumstances that could give rise to any significant liability on this account.
Boštjan Košak,
President of the Management Board
Boštjan Škufca Zaveršek,
MSc,
Vice-President of the Management Board
Irma Gubanec,
MSc,
Member of the Management Board
Vesna Prodnik,
MSc,
Member of the Management Board
Špela Fortin
Member of Management Board – Workers’ Director
Ljubljana, 15 March 2024
Dear Stakeholders,
Telecommunications are the driving force of social progress. The expectations of users regarding superior connectivity, the further development of mobile technologies, smart city and Internet of Things solutions, cyber security, virtualisation and the development of private mobile networks are just a few of the trends that are creating our future.
stakeholders. This was also demonstrated by our performance in 2023, when Telekom Slovenije successfully reversed the trend of several years of declining market shares and sales revenues, and responded effectively to changes in the dynamic business environment through a flexible and steadfast approach.
Operations in 2023 were affected by high energy costs, rising interest rates, which led to an increase in financing expenses, and the impairment of the infrastructure of Telekom Slovenije and GVO, which was flooded, damaged or severed during August’s storms. Through its excellent response to the worst natural disaster in Slovenia’s history, Telekom Slovenije once again demonstrated that it is the infrastructure backbone of Slovenian society, as it reconnected Slovenia in three days despite extremely adverse circumstances and extraordinary conditions, and made its network available for use by all major operators who were able to provide services to users in affected areas. Thanks for this go to selfless employees, and would not have been possible without regular and strategically planned investment in the modernisation of the network. That modernisation is being carried out in phases and in accordance with the established timetable, which allows the Company to function effectively.
In the context of continuous digitalisation, Telekom Slovenije is consolidating and strengthening its position in the area of cyber security and resilience, both for its own needs and for the needs of the wider environment: residential users, companies, critical infrastructure, organisations and the Company’s partners. Telekom Slovenije is an important regional stakeholder in ensuring and raising awareness about the importance of adequate cyber protection.
Achieved results demonstrate the focus and vision of the Management Board in the achievement of established objectives, while our ambitiousness for the future is also reflected in the Strategy of the Telekom Slovenije Group for the period 2024 to 2028, which lays out clear guidelines, opportunities and ambitions for further development. The Telekom Slovenije Group’s focus in the future will continue to be on ensuring the best user experience in the context of continuous development, which is based on connectivity, digitalisation and effectiveness, as well as clear ESG objectives and commitments.
I believe that all of the above strengthens the trust of shareholders and other stakeholders in the successful future development of the Company and Group.
In the scope of its competences, Telekom Slovenije’s Supervisory Board ensured the responsible and high-quality supervision of the operations of the parent company and Group companies in 2023. The composition, content and work of the Supervisory Board and its committees during the 2023 financial year are presented in more detail in the report of the Supervisory Board.
Žiga Debeljak, MSc,
President of the Supervisory Board
The Group’s future development is laid out in the Strategic Business Plan of the Telekom Slovenije Group for the period 2024 to 2028. During that period, the ICT sector will be characterised by intensive technological development and progress.
The Telekom Slovenije Group is constantly moving forward, evolving and facilitating development and progress by connecting opportunities. We serve as the infrastructure backbone for connecting users and devices. Through the network that we use to provide the most advanced telecommunications services, a fast and reliable internet and advanced ICT solutions, we facilitate comprehensive social development, intersectoral cooperation and productivity growth, as well as equitable access and social inclusion.
We based strategic planning on internal analyses, available information about changes in the regulatory environment, forecasts of macroeconomic and market trends, and the expected development of the dynamic sector in which we operate. The strategy includes clear and measurable sustainability indicators and ambitious objectives, through which we contribute to the realisation of the European Green Deal and the United Nations’ Sustainable Development Goals (SDG). The Telekom Slovenije Group's strategy until 2028 presents our responses to development opportunities, and to global and regional challenges.
Business models are tied to the monetisation of the network and the capacities thereof, while operators are entering new markets with higher value added as connectivity providers. Internal and external ecosystems are emerging based on partnerships, mergers and acquisitions, efficient purchasing, and effective corporate governance and the management of portfolio investments.
The traditional role of operators is expanding. With the digitalisation of society, a superior network and technology are becoming increasingly complex and are taking on a fundamental role in operations.
In the context of the continuous digitalisation of society as a whole and constant development, artificial intelligence, machine learning, big data, the Internet of Things, connectivity and the development of the most advanced mobile technologies are becoming increasingly important. At the forefront are the constant improvement of new technologies and their introduction into all areas of digital society.
The threat of cyber attacks is increasing in the digital world. Telecommunication operators are strengthening cyber resilience to ensure comprehensive network security, to protect users and to help other organisations and companies ensure cyber resilience and information security.
Key aspects of the sector’s sustainable development focus on achieving carbon neutrality, primarily through the use of energy-efficient technologies and low-carbon and renewable energy sources, and on sustainable disclosures, security, diversity, inclusion and sustainable supply chains.
Users expect a seamless user interaction, the quick resolution of problems and an innovative range of products and services tailored to the needs of specific segments.
Dynamic changes that bring new technologies and changing business models require the development of new employee competences and knowledge that will enable Group companies to operate in the digital landscape.
The most for more
Our superior network with the latest technology and highest level of service will allow us to continue offering users the most for more: the most quality, the most security, the most advanced solutions and services, and the most development. We will continue to simplify users’ lives in the future through our continuous market presence, whether we are talking about mobile or fixed services, TV experience, content, digital commerce, comprehensive ICT solutions, health or mobile payments.
Increased security risks in the environment are managed through continuous investments in technologies for the effective and precise detection of security threats. We are deepening analytics, automating operational processes, and regularly performing security, penetration and vulnerability testing. We work with international organisations and strive for the increased security of our users, and the resiliency of the network and services.
Developing and strengthening our core activity.
We will record additional growth in revenues and market shares on telecommunications markets in Slovenia and abroad. Special emphasis will be given to making better use of the existing infrastructure.
Developing new business models.
As a reliable provider of critical infrastructure and the digitalisation of services, we plan the highest growth in the ICT segment and digital services. We will increase the value of services through the inclusion of cyber security solutions.
Raising commercial awareness.
We will improve operational efficiency through the continued digitalisation of operations, the reduction of costs and the improved efficiency of investing activities.
The main role in the development of the Telekom Slovenije Group is played by employees, technology, and responsible and sustainable operations.
We are creating an inclusive and cooperative culture and a safe and healthy work environment, ensuring continuous education and training, the development of potentials and competences, the motivation, remuneration and retention of employees, and attracting and recruiting diverse individuals. Through an agile and systematic approach, we are strengthening our reputation and brand as an employer, and creating a culture of development and opportunities for the growth of individuals and the Group. We dedicate special attention to sustainable leadership, the promotion of diversity, and activities relating to concern for employees and flexible forms of work.
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 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.
| Operating revenues | 717.4 |
|---|---|
| EBITDA | 233.6 |
| Net income | 43.2 |
| Value of investments | 235.7 |
| in EUR million | Earnings before interest, taxes, depreciation and amortisation (EBITDA) in 2028 | 280 |
|---|---|---|
| Net profit in 2028 | 83 | |
| Value of investments in the period 2024 to 2028 | 951 | |
| Carbon-neutrality under Scope 1 and 2 by 2028 |
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.
The Telekom Slovenije Group achieved the objectives set out in the Annual Business Plan for 2023. An overview of key activities and achievements is presented below.
| in EUR million | Achieved in 2023 | Planned in 2023 | Index 2023 Achieved/Planned |
|---|---|---|---|
| Operating revenues | 708.2 | 680.8 | 104 |
| Earnings before interest, taxes, depreciation and amortisation (EBITDA) | 228.6 | 206.2 | 111 |
| Net income | 47.1 | 20.1 | 234 |
Telekom Slovenije, d.d. (hereinafter: Telekom Slovenije) hereby issues its corporate governance statement in accordance with the fifth paragraph of Article 70 of the Companies Act, and the recommendations of the Corporate Governance Code and the Corporate Governance Code for Companies with Capital Assets of the State.
The corporate governance statement is an integral part of the audited annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023. It relates to the period 1 January 2023 to 31 December 2023. We also disclose significant events after the aforementioned period and up to the publication of the statement. The corporate governance statement is accessible in electronic form, for a minimum of five years from the date of its publication, on the Company’s website at https://www.telekom.si/en/about-us/company/corporate-governance and in the Ljubljana Stock Exchange’s electronic information system at http://seonet.ljse.si.
Corporate governance at Telekom Slovenije and within the Telekom Slovenije Group is based on the following principles and guidelines:
The Corporate Governance Policy defines a system for segregating responsibilities and competences between members of management and supervisory bodies, the role of Supervisory Board’s committees and the protection of employees’ interests. It also defines groups of stakeholders, a strategy for communication and cooperation with those groups, a policy governing links between the Company and its subsidiaries, and a commitment to identify conflicts of interest and to ensure the independence of members of the Supervisory Board and Management Board.
The Supervisory Board and Management Board adopt updates to the Corporate Governance Policy, taking into account current guidelines in the area of corporate governance, as well as binding regulations and best practices.
The way in which the corporate governance of subsidiaries is implemented in individual areas. The Management Board and Supervisory Board function in accordance with the law and other regulations, the Articles of Association of Telekom Slovenije, d.d. and the rules of procedure of the Management Board and Supervisory Board.
The Corporate Governance Policy of Telekom Slovenije, d.d., the rules of procedure of the Management Board and the other documents linked to corporate governance are publicly accessible on the Company’s website at https://www.telekom.si/en/about-us/company/corporate-governance.
Telekom Slovenije, as a public interest entity whose securities are traded on the regulated securities market, and as a company with capital assets of the State, took into account the corporate governance recommendations set out in the following documents to the greatest extent possible during the 2023 financial year:
In its work and operations, Telekom Slovenije also complies with the guidelines set out in the Code of Ethics of the Telekom Slovenije Group of 1 February 2017 (published on the Company’s website at www.telekom.si).
Telekom Slovenije explains below deviations from individual recommendations set out in the aforementioned code:
Recommendations 4.1 and 4.3: In 2020, Telekom Slovenije adopted the Policy Governing the Diversity of the Management Board and Supervisory Board of Telekom Slovenije, d.d. in accordance with the recommendations of the code. The Company deviates in part from this recommendation, as targets are stated in descriptive terms, but not in numerical terms or percentages, except with regard to gender diversity. The Supervisory Board began the process of revising the Diversity Policy in 2024.
Recommendations 6 and 6.2: Telekom Slovenije deviates in part from this recommendation as, in accordance with Appendix 2 to the Recommendations and Expectations of SDH, the Remuneration Policy for the Management Body of Telekom Slovenije, d.d. and the Management Bodies of Telekom Slovenije Group Subsidiaries only governs the remuneration of members of the Company’s management body, while the remuneration of the members of its supervisory body were defined by a resolution of the 31st General Meeting of Shareholders that is in line with the sample resolution found in Appendix 1 to the Recommendations and Expectations of SDH.
Recommendation 15.1: Telekom Slovenije deviates in part from the recommendation with respect to the definition of an annual training plan for members of the Supervisory Board and the members of its committees, as an annual plan as a unique document is not defined.
Recommendation 16.4: Telekom Slovenije did not comply with this recommendation, as an external evaluation of the assessment of the Supervisory Board was not performed. The self-assessment of the Supervisory Board for 2023 was carried out based on the methodology of the Slovenian Directors’ Association. Based on that assessment, the Supervisory Board discussed and adopted an action plan of improvements.
Recommendation 32.7: Telekom Slovenije deviates in part from this recommendation, as it has only published the rules of procedure of the Management Board on its website.
Telekom Slovenije explains below deviations from individual recommendations set out in the aforementioned code:
Recommendations 3.6.1 and 3.6.3: – Telekom Slovenije deviates from this recommendation in the part that relates to specific targets of individual aspects of diversity, which the policy did not include in 2023, while targets are likewise not implemented in the Company’s internal acts. In 2024, the Supervisory Board adopted a renewed Diversity Policy, which sets a target of 33% under-represented gender in the Management Board and Supervisory Board by the end of 2026.
Recommendations 6.1, 6.2 and 6.2.1 to 6.2.3 and 6.2.6: Telekom Slovenije deviates in part from this recommendation, as it has not adopted a succession policy in the form of a single document; internal candidates are appropriately considered in the scope of the selection process. The Company began drafting a Succession Policy in 2024.
The Supervisory Board starts the selection process for candidates for the Management Board before the expiry of the term of office of the current Management Board or when the need to start the recruitment process for the appointment of Management Board members is identified.
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.
Telekom Slovenije is a public limited company. It has a two-tier system of governance. It is run by the Management Board and supervised by the Supervisory Board. The Company’s governing bodies are the General Meeting of Shareholders, Supervisory Board and Management Board.
The Company convenes the General Meeting of Shareholders at least once a year, when it benefits the Company or whenever required in accordance with the law and its Articles of Association. The date that the convening of the General Meeting of Shareholders is published on the website of the Agency of the Republic of Slovenia for Public Legal Records and Related Services is deemed the official date of that convocation. Shareholders exercise their rights at the General Meeting of Shareholders in person or through authorised representatives. Detailed information about the rights of shareholders is published to coincide with the convening of the General Meeting of Shareholders and is accessible on the Company’s website (https://www.telekom.si/en/about-us/investor-relations/shareholder-s-meetings).
Shareholders who are entered in the central register of securities at KDD (Central Securities Clearing Corporation) at the close of business seven days prior to the General Meeting of Shareholders (cut-off day) are entitled to participate and vote at the General Meeting of Shareholders, if they have registered in writing at least three days prior to the General Meeting of Shareholders.
Telekom Slovenije’s shareholders met at one General Meeting of Shareholders in 2023. At total of 80.60% of shares with voting rights were represented at the 36th General Meeting of Shareholders held on 16 June. At the General Meeting of Shareholders, the Company’s shareholders:
No challenges against resolutions adopted by the General Meeting of Shareholders were announced. The resolutions of General Meetings of Shareholders and documentation from previous meetings are published on the Company’s website.
Telekom’s Management Board comprises five members: the President, Vice-President, two members and the Workers’ Director. The term of office of Management Board members is four years, with the possibility of reappointment.
At its 16th ordinary session held on 11 September 2023, Telekom Slovenije’s Supervisory Board reappointed Špela Fortin as member of the Management Board and Workers’ Director based on the proposal of the Works Council. Her four-year term of office began on 14 September 2023.
There were no other changes to the Management Board in 2023.
| Name | Office | Area of work on the Management Board | First appointment to function |
|---|---|---|---|
| Name | Position | Responsibilities | Start Date | End Date | 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 |
| Name | Title | Membership | Start Date | End Date | Gender | Nationality | Year of Birth | Education |
|---|---|---|---|---|---|---|---|---|
| Irma Gubanec, MSc | Member | Finance, Accounting, Controlling, Procurement, Real Estate Management, Logistics and the subsidiary TSmedia. | 12 October 2022 | 11 October 2026 | Female | Slovenian | 1968 | Holds a bachelor’s degree in economics and a master’s of science. |
| Vesna Prodnik, MSc | Member | Network Management, IT and ICT Services, and the subsidiaries GVO, SIOL Zagreb, SIOL Podgorica, SIOL Sarajevo, SIOL Skopje, SIOL DOO Beograd and SIOL Prishtina. | 14 November 2022 | 13 November 2026 | Female | Slovenian | 1972 | Holds a bachelor’s degree in electrical engineering and a master’s degree in communication sciences. |
| Špela Fortin | Member of Management Board – Workers’ Director |
The responsibilities of the Management Board member who serves as Workers’ Director derive directly from valid legislation.
14 September 2019 (first term of office)
14 September 2023
13 September 2023 (first term of office)
13 September 2027
Female
Slovenian
1978
High school graduate.
The Management Board manages transactions and represents the Company independently, and is liable for its own actions in that regard in accordance with the limitations set out in the Company’s Articles of Association and internal acts. The responsibilities of individual members of the Management Board are set out in the rules of procedure of that body and in the resolution defining the business areas and responsibilities of Management Board members, to which the Supervisory Board gives its consent.
In managing transactions, the Management Board ensures the appropriate risk management, respect for the integrity and security of trade secrets, and acts with the diligence of a conscientious and fair manager.
The Management Board met at 66 ordinary sessions and one correspondence session in 2023. Due to circumstances that could result in conflicts of interest, individual members of the Management Board recused themselves from decision making on nine matters within their own or the Management Board’s collective competence.
The Management Board made numerous business decisions and implemented activities to achieve the objectives set out in the current Strategic Business Plan, taking into account the principles of sustainable development and the interests of shareholders and other stakeholders. It dedicated special attention to activities to upgrade the mobile network and to ensuring the provision of secure and reliable services.
The Management Board actively responded to events in the broader and local social environment, which was particularly evident after August’s catastrophic floods, when Telekom Slovenije’s network was functioning normally again in the shortest time possible.
With the consent of the Supervisory Board, the Management Board adopted the Strategic Business Plan for the period 2024 to 2028, in the scope of which it also discussed the strategy of sustainable operations. The conclusion of a loan agreement in the amount of EUR 100 million for the pursuit of Telekom Slovenije’s ambitious and development-oriented strategy ensured the Company will receive the necessary funding, and stable, long-term sources of financing.
The remuneration, composition and amount of earnings of Management Board members are set out in employment contracts taking into account the Act Governing the Remuneration of Managers of Companies with Majority Ownership held by the Republic of Slovenia or Self-Governing Local Communities (ZPPOGD), the Decree setting the highest correlation between the basic salary and the amount of variable remuneration of directors (hereinafter: the Decree) and the Remuneration Policy for Members of Telekom Slovenije, d.d.’s Management Bodies and the Management Bodies of Telekom Slovenije Group Subsidiaries (hereinafter: Remuneration Policy), which was updated in 2023.
Detail specific questions regarding the remuneration of Management Board members, the selection of short- and long-term performance criteria and their target values for individual years, the weighting of criteria in terms of importance, a system of assessing the fulfilment of criteria, the method for calculating the variable component of remuneration taking into account achieved assessments, and other necessary content.
The earnings of Management Board members comprise a basic salary, a variable component of remuneration, and other rights and benefits. The criteria for the payment of the variable component of remuneration comprise quantitative and qualitative and financial and non-financial criteria. According to the Remuneration Policy, the variable component of remuneration based on financial criteria (e.g. net sales revenue, EBITDA, etc.) is 50%. The same 50% share applies to the variable component of remuneration based on non-financial criteria (e.g. trend in market share, NPS, organisational efficiency, development, sustainable operations according to environmental, social and governance criteria).
8 GRI 2-18, 2-19, 2-20 Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
The aforementioned Decree states that the basic salary of Management Board members may amount to a maximum of five times the average gross salary within the Telekom Slovenije Group, where the salary of an individual member of the Management Board is determined taking into account their powers, duties, experience, responsibilities, scope of work and the Company’s financial situation.
9 The conditions for profit sharing by the Management Board are governed by the Company’s Articles of Association. The earnings of Management Board members in 2023 are presented in the separate report, Report on the remuneration of members of Telekom Slovenije, d.d.’s Management Board and Supervisory Board for 2023, and in the financial report in point 42 Related party transactions.
In accordance with the Articles of Association of Telekom Slovenije, d.d., the Company’s Supervisory Board comprises nine members. The composition of the Supervisory Board was unchanged in 2023. In the scope of its competences, the Supervisory Board ensured the responsible and prudent supervision of the operations of Telekom Slovenije and the Telekom Slovenije Group in 2023. It met regularly, and discussed different aspects of operations and monitored the implementation of plans. Specific topics were discussed in advance by the Supervisory Board’s committees. Based on findings, proposals and careful assessment by those committees, the Supervisory Board adopted decisions and informed stakeholders after its sessions. The Supervisory Board met at eleven ordinary sessions and four correspondence sessions in 2023.
10 The Supervisory Board comprised the following members in 2023: Žiga Debeljak, MSc (President) Karla Pinter, MSc (Vice-President), Aleksander Igličar, MSc, Mateja Čuk Orel, MSc, Alenka Čok Pangeršič, MSc, Marko Boštjančič, Drago Kijevčanin (Vice-President), Dušan Pišek and Rok Pleteršek. The composition of the Supervisory Board is diverse, as its members complement each other in terms of their expertise, competences, experience, age, gender, work method and other aspects. This facilitates the effective exchange of opinions and views at sessions.
In accordance with the Corporate Governance Code, the Supervisory Board hereby declares that all costs in connection with its work are disclosed in this annual report.
9 GRI 2-21
10 GRI 2-9, 2-10, 2-11, 2-15, 405-1
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
| Name | Office | First |
|---|---|---|
| Žiga Debeljak, MSc | President | |
| Karla Pinter, MSc | Vice-President | |
| Aleksander Igličar, MSc | ||
| Mateja Čuk Orel, MSc | ||
| Alenka Čok Pangeršič, MSc | ||
| Marko Boštjančič | ||
| Drago Kijevčanin | Vice-President | |
| Dušan Pišek | ||
| Rok Pleteršek |
| Appointment to function | Completion of function/term of office | Shareholder/employee representative | Participation 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 | 9 September 2022 | 8 September 2026 | Shareholder representative | 15/15 | Male | Slovenian | 1971 | Holds a bachelor's |
| Name | Position | Start Date | End Date | Role | Attendance | Gender | Nationality | Year of Birth | Education |
|---|---|---|---|---|---|---|---|---|---|
| Karla Pinter, MSc | Vice-President | 18 June 2021 | 17 June 2025 | Shareholder representative | 15/15 | Female | Slovenian | 1982 | Holds a bachelor's degree in law and a master’s degree in legal affairs. |
| Aleksander Igličar, MSc | Member | 22 January 2021 | 21 January 2025 | Shareholder representative | 14/15 | Male | Slovenian | 1962 | Director General of the Internal Market Directorate at the Ministry of the Economy, Tourism and Sport. |
| Name | Office | First appointment to function | Completion of function/term of office | Shareholder/employee representative | Participation in Supervisory Board sessions | Gender | Nationality | Year of birth | Education / professional profile | Independence per statement of |
|---|---|---|---|---|---|---|---|---|---|---|
| Iskra Mehanizmi | Holding, d.d. | Lipnica | Slovenska tiskovna agencija, d.o.o., Ljubljana (until 12 December 2023) | Senior lecturer at the University of Ljubljana’s School of Economics and Business. | YES | NO |
| Membership in supervisory bodies of other companies | Employment |
|---|---|
| Marko Boštjančič | Managing Director of MIBO, Komunikacije, d.o.o., Sarajevo |
| Alenka Čok Pangeršič, MSc |
| Name | Position | Start Date | End Date | Type | Attendance | Gender | Nationality | Year of Birth | Education | Conflict of Interest |
|---|---|---|---|---|---|---|---|---|---|---|
| Marko Boštjančič | Member | 9 September 2022 | 8 September 2026 | Shareholder representative | 15/15 | Male | Slovenian | 1967 | Holds a bachelor's degree in law/telecommunications. | YES |
| Alenka Čok Pangeršič, MSc | Member | 9 September 2022 | 8 September 2026 | Shareholder representative | 14/15 | Female | Slovenian | 1971 | Holds a bachelor’s degree in engineering physics and a master’s | NO |
| Name | Office | First appointment to function | Completion |
|---|---|---|---|
| Mateja Čuk Orel, MSc | Advisor to the Management Board/head of project to introduce sustainable operations at Modra zavarovalnica, d.d. | 9 September 2022 | 8 September 2026 |
| Shareholder representative | 15/15 | Female | Slovenian |
| 1980 | Holds bachelor’s and master’s degrees in law/legal affairs. | YES | NO |
| GEN energija, d.o.o., Krško | SODO, d.o.o., Maribor (until 2 October 2023) | Attorney-at-law to the Law company of Čuk Orel, Ljubljana |
| Shareholder/Employee Representative | Participation 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 |
|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Name | Position | Date of Birth | Nationality | Profession | Current Term Start | Current Term End | Role |
|---|---|---|---|---|---|---|---|
| Dušan Pišek | Member | 1964 | Slovenian | Telecommunications engineer/technology. | 19 September 2018 | 14 November 2025 | Employee representative |
| Rok Pleteršek | Member | 1964 | Slovenian | Telecommunications engineer/technology. | 15 November 2021 | 14 November 2025 | Chair of the Works’ Council |
2 June 2022
14 November 2025
Employee representative
15/15
Male
Slovenian
1990
Holds a master's degree in law / legal affairs and telecommunications
YES
NO
NO
Telekom Slovenije, Network and Infrastructure organisational unit, member of the Works’ Council
The Supervisory Board performed its work in accordance with the powers and competences prescribed by the law, the Company’s Articles of Association and its own rules of procedure. It is fully liable for the performance of its supervisory function and makes its decisions independently. In accordance with the Corporate Governance Code, all members of the Supervisory Board issued statements of compliance with the criteria of independence, which are published on the Company’s website.
During the 2023 financial year, one member of the Supervisory Board informed the latter of facts that could affect their independence. The compliance and integrity officer assessed the possible existence of a conflict of interest in connection with a member of the Supervisory Board, but did not identify any circumstances that would affect the impartial and objective performance of the Supervisory Board member’s duties.
The Supervisory Board discussed various aspects of the operations of the Company and other Group companies, and monitored the implementation of plans. Specific topics were discussed in advance by the Supervisory Board’s committees. Based on the proposals and assessments of its committees, the Supervisory Board adopted the appropriate decisions.
Within the scope of its competences, the Supervisory Board made the following responsible decisions in 2023:
companies, the Supervisory Board was briefed regularly on the following in 2023:
The Supervisory Board assessed its work in August 2023 according to the methodology of the Slovenian Directors’ Association. Following discussion, it adopted an action plan with commitments that were fulfilled by the set deadline.
The Supervisory Board had three permanent committees: Audit Committee, HR Committee and Business Development Committee. In accordance with their respective competences and tasks, the aforementioned committees discussed individual areas of expertise and topics relating to the functioning of the Supervisory Board, and advised the latter regarding important issues. This contributed to the improved work and effectiveness of the Supervisory Board.
The composition and most important tasks of individual committees in 2023 are described below:
As an advisory body, the Audit Committee assists the Supervisory Board in its supervision of financial reporting, internal controls and risk management at Telekom Slovenije and at the Telekom Slovenije Group level, and in cooperation with external and internal auditors. The Audit Committee’s key tasks are to ensure professional cooperation in the areas of corporate governance, where it functions for the good of the Company and protects the interests of its stakeholders.
Based on the decision of Telekom Slovenije’s Supervisory Board, audit committee tasks at the subsidiaries Soline and Avtenta, which are public-interest entities, are carried out by the Audit Committee of Telekom Slovenije’s Supervisory Board.
The Audit Committee’s members were as follows as at 31 December 2023:
Information regarding the members of the Audit Committee who were also members of the Supervisory Board in 2023 is presented in the table detailing the members of the Supervisory Board, while information regarding the external members of the Audit Committee is presented in the table below.
| 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 |
Dr Marko Hočevar
Male
Slovenian
Holds a doctorate in economics.
Member of the Supervisory Board of: HSE d.o.o., and Triglav skladi, d.o.o.
1962 Accounting.
Member of the Supervisory Board of KZPS, d.o.o.
The Audit Committee met at twelve ordinary sessions and held three correspondence sessions in 2023. As a rule, all members were present at sessions. Members of the Supervisory Board who are not members of the Audit Committee were kept abreast about the latter’s work through the review of the minutes of the committee’s sessions. The chair of the Audit Committee also regularly reported on the committee’s work and findings at sessions of the Supervisory Board.
The Audit Committee addressed issues in accordance with the ZGD-1, recommendations for the work of audit committees, the Audit Committee’s rules of procedure, its work plan adopted for 2023 and the resolutions of Telekom Slovenije’s Supervisory Board.
The Audit Committee performed the following activities:
In accordance with the Guidelines for monitoring the independence of the auditor of the financial statements of the Telekom Slovenije Group and Telekom Slovenije, an auditor is selected every three years. An invitation to submit bids was sent to seven audit firms in February 2023. A total of four bids were received. All four bidders presented themselves at a meeting attended by the audit committees of all Group companies. Based on those presentations and an analysis of bids, a proposal was issued in April 2023 for the selection of the auditor of the financial statements of the Telekom Slovenije Group and Telekom Slovenije for 2023, 2024 and 2025. The auditor was appointed at Telekom Slovenije’s General Meeting of Shareholders held on 16 June 2023;
The Director of the Telekom Slovenije’s Internal Audit Service was invited to all sessions of the Audit Committee. The Audit Committee also invited the appointed external auditor to sessions at which quarterly reports on the operations of the Telekom Slovenije Group and Telekom Slovenije were discussed.
With the aim of implementing continuous improvements and ensuring the quality of its work, the Audit Committee performed a self-assessment of its work in February 2023 and discussed potential improvements. It notified the Supervisory Board about the aforementioned self-assessment and proposed improvements.
The HR Committee met at six regular sessions. Significant activities of the HR Committee included:
The HR Committee’s members were as follows as at 31 December 2023:
The Business Development Committee held three sessions, at which it discussed the Strategic Business Plan of the Telekom Slovenije Group for the period 2024 to 2028 and activities aimed at the modernisation of Telekom Slovenije’s mobile network.
Members of the Business Development Committee as at 31 December 2023:
• Dušan Pišek,
• Rok Pleteršek, and
• Dr Janez Bešter, external member.
Information regarding the members of the Business Development Committee who were also members of the Supervisory Board in 2023 is presented in the table detailing the members of the Supervisory Board, while information regarding the external member of the Business Development Committee is presented in the table below.
| Name | Committee | Gender | Nationality | Education | Year of birth | Professional profile | Membership in supervisory bodies of other companies |
|---|---|---|---|---|---|---|---|
| Dr Janez Bešter | Business Development Committee | Male | Slovenian | Holds a doctorate in telecommunications. | 1955 | Telecommunications and multimedia. |
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.
The Supervisory Board discussed the audited annual report of the Telekom Slovenije Group and Telekom Slovenije for 2023. Based on its review of the annual report and financial statements (including the notes thereto), and its review of the Management Board’s proposal on the use of distributable profit and the auditor’s report with the latter’s opinion, the Supervisory Board confirmed the audited annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023.
report of the Telekom Slovenije Group and Telekom Slovenije for 2023 and found that the annual report was compiled in a timely, clear and transparent manner, and in accordance with the provisions of the ZGD-1, the applicable International Financial Reporting Standards and other relevant legislation.
Audit Committee had no comments with respect to the annual report for 2023, and proposed that the Supervisory Board approve the annual report of the Telekom Slovenije Group and Telekom Slovenije for 2023 in accordance with Article 282 of the ZGD-1.
Based on the auditor’s report with the latter’s opinion, the position of the Audit Committee, and data and disclosures in the annual report, Telekom Slovenije’s Supervisory Board assesses that the auditor performed its work independently and professionally in accordance with valid legislation and business practices, that the annual report was compiled, in all material aspects, in accordance with the requirements of the ZGD-1, and that the financial statements fairly present, in all material aspects, the assets and financial position of the Telekom Slovenije Group and Telekom Slovenije as at 31 December 2023, and their operating results and cash flows for the year then ended in accordance with the International Financial Reporting Standards, as adopted by the European Community. The Supervisory Board has no remarks regarding the auditor’s report. It also has no comments regarding the annual report of the Telekom Slovenije Group and Telekom Slovenije for 2023 that would in any way inhibit its decision to approve that report.
Thus, in accordance with the third paragraph of Article 282 of the ZGD-1, the Supervisory Board of Telekom Slovenije approved the annual report of the Telekom Slovenije Group and Telekom Slovenije for 2023 at its ordinary session held on 16 April 2024. The Supervisory Board approved the annual report for 2023 by the prescribed deadline, i.e. within one month from its submission by the Company’s senior management.
When adopting the annual report, the Supervisory Board also took a position with regard to the corporate governance statement, which is included in the business report section of the annual report of the Telekom Slovenije Group and Telekom Slovenije for 2023, and assessed that they are a reflection of the actual governance of the Company in 2023.
Supervisory Board members are entitled to basic payment for performing their functions, attendance fees and additional payments for participation in Supervisory Board committees. The remuneration of members of the Supervisory Board is defined in a general meeting resolution, and is in line with the Recommendations and Expectations of the Slovenian Sovereign Holding. Also defined are the maximum annual amounts of and eligibility criteria for the reimbursement of transportation expenses, daily allowances and costs of overnight stays. The amounts of payments made to members of the Supervisory Board are disclosed in the financial report.
The Policy Governing the Diversity of the Management Board and Supervisory Board of Telekom Slovenije, d.d. (hereinafter: the Diversity Policy), which was adopted in 2020, states that in order to ensure the optimal composition of the Management Board and Supervisory Board, the diversity of a body in terms of professional profile, continuity, experience, gender and age must be taken into account, in addition to legal requirements and requirements set out in the Company’s Articles of Association.
As a measurable objective, the Diversity Policy lays out efforts to ensure heterogeneity in terms of gender composition, whereby an under-represented gender should account for 40% of the members of the Supervisory Board and 33% of all members of the Management Board and Supervisory Board by the end of 2026.
The overall objective of gender diversity in terms of the composition of Telekom Slovenije’s management and supervisory bodies was achieved in 2023.
On 13 February 2024, the Supervisory Board adopted a renewed Policy on Ensuring Diversity of Management and Supervisory Bodies of companies of Telekom Slovenije Group.
Slovenije Group’s strategy defines uniform corporate governance within the Group, which facilitates the optimisation of the operations of companies, and ensures the improved flow of information and the exploitation of synergies at the Group level.
Rules, criteria and mechanisms for managing and supervising Group companies are defined in the Telekom Slovenije Group’s Corporate Governance Rules, in line with Telekom Slovenije’s Corporate Governance Policy.
Management and supervisory tasks are performed taking into account Slovenian law and the applicable laws in the home countries of individual subsidiaries. Subsidiaries operate in accordance with local legislation, business cooperation agreements with Telekom Slovenije, and with internal rules and instructions adopted by the management of an individual subsidiary or the Management Board of the parent company.
The management and supervision of the operations of Telekom Slovenije Group companies is based on the following core principles:
| Company | Managing Director | Supervisory Board |
|---|---|---|
| GVO, d.o.o. | Dr Zef Vučaj | Vesna Prodnik, MSc (President), Peter Anžin and Helena Jakič |
| Infratel, d.o.o. | Dr Zef Vučaj | |
| Optic-Tel, d.o.o. | Dr Zef Vučaj | |
| Avtenta, d.o.o. | Matija Nendl | Primož Kučič served as Managing Director until 31 March 2023. |
| TSmedia, d.o.o. | Igor Gajster | |
| Soline, d.o.o. | Klavdij Godnič | |
| TSinpo, d.o.o. | Vesna Lednik | Sandra Peršak served as Managing Director until 9 January 2023. |
| Company | Managing Director |
|---|---|
| IPKO Telecommunications LLC, Kosovo | András Páli |
| Tomaž Seljak, MSc served as CEO until 4 November 2023. | |
| SIOL, d.o.o. Zagreb, Croatia | Simon Furlan, MSc |
| SIOL, d.o.o. Podgorica, Montenegro | Simon Furlan, MSc |
| SiOL, d.o.o. Sarajevo, Bosnia and Herzegovina | Simon Furlan, MSc |
| SIOL, DOOEL Skopje, North Macedonia | Simon Furlan, MSc |
| SIOL DOO Beograd, Serbia | Simon Furlan, MSc |
Pursuant to the fifth paragraph of Article 70 of the Companies Act (ZGD-1), Telekom Slovenije hereby issues the following explanations:
The internal control system as it relates to financial reporting and risk management are integral elements of corporate governance within the Group.
The internal control system as it relates to financial reporting ensures the appropriate management of risks, the ethical operations of Group companies, precise, reliable, timely and complete accounting records, and true, fair, transparent and reliable external and internal financial reporting that is in accordance with the law, the adopted accounting framework and regulations, and the guidelines and policies of the Group. All Group companies must report in accordance with the same accounting guidelines and policies.
In the scope of the risk management framework, the Company treats the internal control system as a process that is based on the principle of segregation of duties and that serves as the basis for identifying, assessing and managing risks, and control over the financial reporting process.
Information support is provided for the accounting process. Internal controls are therefore built into the IT infrastructure, which comprises, inter alia, controls over restrictions on access to data and applications, and controls over access to data and applications as a way to control the accuracy and completeness of data capture and processing. Data access rights are regularly reviewed and updated.
Also in place in addition to internal accounting controls are other internal controls in the processes and organisational units of companies, and at all levels of operations. The Group strives to ensure an appropriate system of internal controls that includes:
The owners of internal controls are responsible for the consistent implementation of controls, documentation regarding their functioning and proposals for improvements. A report is drafted once a year on the self-assessment of internal controls at the parent company and subsidiaries to provide a comprehensive overview of the establishment and functioning of internal controls.
There were no changes to the structure of share capital in 2023. The value of Telekom Slovenije’s share capital is EUR 272,720,664.33 and is divided into 6,535,478 ordinary registered no-par-value shares. All shares constitute one class and are issued in dematerialised form. Each share represents the same stake and corresponding amount in share capital, while all shares have been paid up in full. Each share gives its holder the right to one vote at the General Meeting of Shareholders, a proportionate share of profits (payment of dividends) and a proportionate share of residual assets after the liquidation or bankruptcy of the Company. Shares are listed on the prime securities market of the Ljubljana Stock Exchange. Detailed information regarding shares and the ownership structure is presented in section 6 Share trading and ownership structure.
All shares are freely transferable.
Telekom Slovenije has not issued securities that would provide special controlling rights.
Telekom Slovenije does not have a share scheme for shareholders.
Telekom Slovenije is not aware of any such agreements.
The Supervisory Board appoints members of the Management Board in accordance with its legal powers and statutory provisions. To that end, it prudently and responsibly assesses the fulfilment of the required qualifications. In accordance with the above, the Supervisory Board also defined the candidate selection process, additional conditions that candidates must meet and procedures for determining the appropriateness of candidates in the Criteria and Procedures for Determining the Appropriateness of Candidates for Members of the Management Board.
The Supervisory Board formulated criteria and professional profiles for members of the Company’s Supervisory Board (competence profile) in June 2016, taking into account the specific nature of the Company. Those criteria ceased to apply with the adoption of the Competence Profile for Members of the Supervisory Board of Telekom Slovenije, d.d. of 12 February 2020. That profile is publicly accessible on the Company’s website.
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.
Telekom Slovenije is not aware of any such agreements.
Telekom Slovenije has no such agreements in accordance with the Takeovers Act.
Telekom Slovenije constantly strives to improve corporate governance practices in its operations, including proactive corporate communication with various stakeholders. The Company communicates in the manner set out in Telekom Slovenije, d.d.’s Corporate Governance Policy, the Communications Strategy of Telekom Slovenije, d.d. and the Policy on Communication with the Shareholders of Telekom Slovenije, d.d.
With the listing of its shares on the prime market of the Ljubljana Stock Exchange, the Company undertook to comply with the relevant reporting standards. Telekom Slovenije once again provided investors with high-quality, timely, relevant and reliable information in 2023.
In order to ensure that Telekom Slovenije Group companies and employees comply with the law, other rules, applicable recommendations and bylaws, the Telekom Slovenije Group’s Compliance Management Policy defines the purpose and objectives of compliance management, an integrity plan and powers and responsibilities. The compliance management system facilitates the identification of risks and the implementation of measures to manage those risks. Playing an important role in that framework are preventive actions, and rapid and effective measures in the event of identified breaches. For more information, see section 8.4.1 Compliance and integrity.
Telekom Slovenije will continue to strive in the future to comply with and introduce the highest standards and best practices in the area of corporate governance, both at the parent company and at other Telekom Slovenije Group companies.
in the period 2 February 2024 to 11 March 2024 in accordance with Article 5.7 of the Slovenian Corporate Governance Code. That external assessment is not deemed to be the provision of the assurance services provided by accounting experts with public authorisation (auditors) or accounting experts without public authorisation (e.g. internal auditors).
As an independent external reference institution that does not provide audit services for the aforementioned Company or in connection with it, we reviewed all of the contents of the corporate governance statement and its appropriateness in terms of the fifth paragraph of Article 70 of the ZGD-1, and assessed whether that statement appropriately describes the governance of the Company, as is evident from the latter’s relevant documents.
That assessment also included a review of selected reference codes and statements of compliance with the reference codes that the Company follows. A report was drawn up on the external assessment of the corporate governance statement, and submitted to the Company’s Management Board and Supervisory Board.
The Slovenian Directors’ Association hereby declares that the corporate governance statement included in the annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023 contains all legally prescribed elements, and that the content of that statement appropriately describes the governance of the Company, as is evident from documents received from the latter.
11 March 2024
Irena Prijovič, MSc
Executive Director
Slovenian Directors’ Association
| Ticker symbol | TLSG |
|---|---|
| ISIN | SI0031104290 |
| Listing | Ljubljana Stock Exchange, prime market |
| Share capital (EUR) | 272,720,664.33 |
| Number of ordinary registered no-par value shares | 6,535,478 |
| Number of shares held in treasury | 36,836 |
| Number of shareholders as at 31 December 2023 | 8,262 |
The shares of Telekom Slovenije are listed on the prime securities market of the Ljubljana Stock Exchange under the ticker symbol TLSG. The shares are included in the SBITOP and SBITOP TR share indices, and accounted for 4.57% of those two indices according to the quarterly review of computational parameters conducted on 18 December 2023. The SBITOP and SBITOP TR are the Slovenian ‘blue chip’ indices that provide information regarding the movement of the most liquid and largest shares on the Ljubljana Stock Exchange. In contrast to the SBITOP, the SBITOP TR takes into account both market prices and dividends in its calculation. Telekom Slovenije’s shares are also included in the ADRIAprime share index, which is a composite index of selected companies listed on the prime markets of the Ljubljana Stock Exchange and Zagreb Stock Exchange. The aforementioned index takes into account both changes in share prices and dividend yield.
| Standard price in EUR | 2023 | 2022 |
|---|---|---|
| Highest daily price | 61.00 | 61.00 |
| Lowest daily price | 47.00 | 46.40 |
| Average daily price | 52.10 | 54.83 |
| Turnover (excluding block trades) in EUR thousand | 2023 | 2022 |
|---|---|---|
| Total volume for the year | 12,367.35 | 10,180.02 |
| Highest daily price | 485.54 | 653.46 |
| Lowest daily price | 0.00 | 0.00 |
| Average daily price | 50.07 | 40.56 |
Source: Ljubljana Stock Exchange, archive of data.
Source: Ljubljana Stock Exchange, archive of data.
| 0 | 200 | 400 | 600 | |||||
|---|---|---|---|---|---|---|---|---|
| 45 | 50 | 55 | 60 | 65 | ||||
| in EUR thousand | EUR | |||||||
| Turnover, excluding block trades (right axis) | TLSG share price (left axis) | |||||||
| 128 | 120 | 95 | 100 | 105 | 110 | 115 | 120 | 125 |
| 31 December 2023 | 31 December 2022 | I – XII 2023 | I – XII 2022 | |
|---|---|---|---|---|
| Closing price of one share on the last trading day of the period in EUR | 60.50 | 47.20 | ||
| Capital return per TLSG share during the period in % | 1 | 28.18 | -16.01 | |
| Book value of one TLSG share in EUR | 2 | 96.43 | 92.76 | |
| P/BV for TLSG shares | 0.63 | 0.51 | ||
| Net earnings per TLSG share in EUR | 3 | 3.67 | 3.20 | |
| Book value of one TLSG share in EUR | 4 | 100.78 | 93.59 | |
| P/BV for TLSG shares | 0.60 | 0.50 | ||
| Net earnings per TLSG share in EUR | 5 | 7.24 | 5.77 |
period to the average number of issued ordinary shares of Telekom Slovenije, excluding treasury shares.
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.
Net earnings per share is calculated as the ratio of the Telekom Slovenije Group’s net operating profit for the accounting period to the average number of issued ordinary shares of Telekom Slovenije, excluding treasury shares.
Telekom Slovenije had 8,262 shareholders at the end of 2023, a decrease of 196 relative to the end of 2022. Domestic and foreign individual shareholders increased their ownership stake most, by 0.42 percentage points, while foreign legal entities increased their stake by 0.05 percentage points. Domestic financial companies and funds reduced their ownership stake by 0.37 percentage points, while domestic companies reduced their stake by 0.10 percentage points.
Individual shareholders include individuals who pursue gainful activities on the market.
| Republic of Slovenia | 62.54% |
|---|---|
| Domestic and foreign individuals* | 14.79% |
| Foreign legal entities | 6.28% |
| Kapitalska družba d.d. (pension fund manager; KAD) | 5.59% |
| Slovenian Sovereign Holding , d.d. | 4.25% |
| Domestic financial companies and funds | 3.78% |
| Domestic companies | 2.20% |
| Treasury shares | 0.56% |
The concentration of ownership, as measured by the ownership stake held by the ten largest shareholders, stood at 79.58% at the end of 2023, a decrease of 0.59 percentage points in year-on-year terms.
Shares held by the Management Board and Supervisory Board of Telekom Slovenije
Members of the Management Board and Supervisory Board held 1,178 TLSG shares as at 31 December 2023.
| Name | Office | Number of shares | % of equity |
|---|---|---|---|
| Boštjan Škufca Zaveršek, MSc | Vice-President of the Management Board | 380 | 0.00581 |
| Vesna Prodnik, MSc | Member of the Management Board | 400 | 0.00612 |
| Aleksander Igličar, MSc | Member of the Supervisory Board | 150 | 0.00230 |
| Drago Kijevčanin | Vice-President of the Supervisory Board |
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.
We strive for equal treatment, and the transparency, timeliness and accuracy of information in investor relations. We communicate regularly and comprehensively with existing and potential shareholders, and other interested parties. The transparency of operations is achieved by taking into account the criteria and standards that apply to the issuers of shares on the prime market. The Company communicates with domestic and foreign investors and analysts at individual meetings and investor conferences, and via conference calls and email ([email protected] and [email protected]). Shareholders may send proposals and suggestions via the investor relations email ([email protected]).
| Shareholder | Percentage |
|---|---|
| Republic of Slovenia | 62.54% |
| Kapitalska družba, d.d. | 5.59% |
| Slovenian Sovereign Holding, d. d. (SDH) | 4.25% |
| Citibank N.A. - fiduciary account | 1.88% |
| Erste Group Bank AG - PBZ Croatia Osiguranje - fiduciary account | 1.65% |
| Perspektiva FT, d.o.o. | 1.22% |
| Raiffeisen Bank International AG (RBI) - fiduciary account | 0.80% |
| Guarantee Fund of the First Pension Fund | 0.68% |
| Telekom Slovenije, d.d. | 0.56% |
| NLB Funds – Multi - Asset Slovenia | 0.39% |
In addition to regular communication, we carried out the following activities in 2023:
We regularly publish price-sensitive and other important information on the Company’s website in the Investor relations section and in the Ljubljana Stock Exchange’s SEOnet system. A total of 27 press releases were issued in 2023, with simultaneous publication in Slovene and English.
The financial calendar is published in the Ljubljana Stock Exchange’s SEOnet system and on the Company’s website (https://www.telekom.si/en/about-us/investor-relations/financial-calendar). Any changes to the financial calendar are published in the same manner.
The objective of Telekom Slovenije’s Dividend Policy is to pay dividends in the amount of 30% to 50% of the Telekom Slovenije Group’s net profit, taking into account the Group’s current financial position and investment needs.
At the 36th General Meeting of Shareholders held on 16 June 2023, shareholders did not adopt a resolution on the use of distributable profit, which amounted to EUR 40,292,646.55 for 2022.
Telekom Slovenije did not purchase treasury shares in 2023. The Company held 36,836 treasury shares on the final day of 2023, representing 0.56% of all issued shares.
Economic growth slowed in Slovenia in 2023, but will recover slightly in 2024 (2.4%). Slightly higher growth in GDP is expected in the two years that follow (2.5% in 2025 and 2.6% in 2026). Continuing growth in investments, easing inflationary pressures and the recovery of foreign demand will have a favourable impact on economic trends.
Uncertainties regarding the realisation of IMAD’s Spring Forecast of Economic Trends 2024 are linked primarily to the geopolitical and economic situation in the international environment, which could impact the speed of the expected recovery and easing inflation in trading partners. Uncertainties are also present in the domestic environment and are linked to the impact of deteriorating competition in the export sector of the economy, Slovenia’s capacity to implement a high level of investments in the coming years, and a lack of clarity on some reform measures.
After relatively high growth in the period following the epidemic, growth in activity in the euro area slowed in 2022 and stagnated in 2023. According to Eurostat’s estimate, GDP growth was 0.5% in 2023.
Source: SURS, Bank of Slovenia, ECB and UMAR calculations and forecasts (Spring Forecast of Economic Trends, February 2023)
Kosovo has a high unemployment rate, and its GDP is just a sixth of Slovenia’s, for which reason prices of telecommunication services on the Kosovar market, where IPKO operates, are significantly lower than those in Slovenia. The economy remains dependent on economic and employment developments in Western Europe, and on foreign direct investment.
Annual GDP growth can be expected to average 4% in 2023 and 2024, thanks primarily to a fall in international commodity prices, lively remittance inflows from the diaspora, and solid macroeconomic policy. Average inflation is expected to have fallen to approximately 5% in 2023, and to continue slowing to 3.5% in 2024. The risks to growth are balanced over the short term, but are greater over the medium term given the complexities of the geopolitical situation.
Source: International Monetary Fund, World Economic Outlook Database, October 2023
Source: European Commission (Digital Decade Country Report 2023, Slovenia)
Slovenia has very good coverage with a very high-capacity fixed network, which is slightly above the EU average (Slovenia: 76%; EU: 73%). Just 51% of households in rural areas are covered, as the complex structure of the terrain presents a major challenge.
The penetration of broadband connection with a speed of at least 100 Mb/s has increased in Slovenia (from 43% of households in 2021 to 52% in 2022), but continues to lag behind the EU average (55%). The fixed broadband connection market in Slovenia continues to grow at a slow pace. IP TV is also growing, albeit at a slower pace, while VoIP has begun to decline.
Coverage with the optical network to premises (FTTP) in Slovenia stands at 76% (2022), compared with 56% of households in the EU overall. FTTX connections accounted for 55.0% of all broadband connections in Slovenia in the third quarter of 2023.
Telekom Slovenije is upgrading and expanding its fibre optic network, and is thus laying the infrastructural foundations for the future of the telecommunications sector.
Source: AKOS, SURS, Q3 2023
There were a total of 680,306 broadband connections in Slovenia at the end of the third quarter of 2023 (compared with 679,851 at same point of 2022), 86.2% of which were accounted for by residential connections. The household fixed broadband penetration rate reached 83.7% in Slovenia (83.3% in 2022).
Telekom Slovenije holds a 28.0% market share in the aforementioned segment.
The proportion of fibre optic connections and the offer of high-speeds in operator packages is also increasing. At the end of the third quarter of 2023, the number of active fibre optic connections in Slovenia was already 374,448, which represents 55.0% of all connections. The number of fibre optic connections rose by 8.1% in one year.
According to forecasts by analysts at Analysys Mason, IPTV connections will continue to rise, both in terms of number and value, while the number of cable TV users will continue to fall. OTT services (video content provided over the internet) will become as popular as IPTV by 2027. OTT services provided by operators will then have almost as many users as IPTV services.
According to figures from AKOS, pay TV is present in 79.2% of households (the same as at the same period of 2022).
Source: Report on the development of the electronic communications market for the third quarter of 2023, AKOS
According to Analysys Mason, the fixed telephony market is continuing to decline, and is increasingly being replaced by mobile telephony.
IPTV accounts for 60.1% of all TV connections in Slovenia and continues to grow. It is followed by cable TV (35.6%), where the number of connections is falling (fourth quarter of 2023; source: AKOS).
The proportion of IP telephony connections stood at 91.8% in Slovenia at the end of the fourth quarter of 2023. That proportion is rising, albeit more slowly than in previous years.
Telekom Slovenije had just over 117,000 users on FTTH connections at the end of the third quarter of 2023 (same period of 2022: 109,000).
Telekom Slovenije holds the highest share of the IPTV market, with 41.8% (fourth quarter of 2023).
Technological obsolescence means that European operators are gradually withdrawing 2G and 3G networks, and replacing them with 5G. Telekom Slovenije stopped using 3G in 2022. According to Analysys Mason, 81% of mobile connections in western Europe will use 5G by 2027. Data traffic will continue to increase. Telekom Slovenije had covered more than 60% of the population with 5G by the end of 2023.
Source: Analysys Mason – Western Europe telecoms market: trends and forecasts 2022–2027; February 2023, based on data up to Q2 2022.
General coverage with 5G has increased sharply in Slovenia, from 37% in 2021 to 64% in 2022 (European Commission, Digital Decade Country Report 2023, Slovenia), but still trails the EU average of 81%. 5G coverage in the 3.4 to 3.8 GHz band essential for the most advanced applications is significantly higher in Slovenia than in the EU overall (55% versus 41%).
The number of active mobile telephony users in Slovenia in the third quarter of 2023 was up more than 62,000 or 2.3% on the same point of the previous year. The mobile penetration rate had risen to 128.4% by the third quarter of 2023.
The household mobile broadband access penetration rate stood at 98.2% in Slovenia in the fourth quarter of 2023 and will continue to rise.
The household penetration rate of active mobile telephony users stood at 128.6% in Slovenia in the fourth quarter of 2023.
Telekom Slovenije maintained a market share of 35.8% in fixed telephony in the fourth quarter of 2023.
Telekom Slovenije maintains the leading share of the mobile telephony market (35.0% in the fourth quarter of 2023).
The volume of data traffic in 4G networks and the most advanced networks with mobile broadband access is growing. Telekom Slovenije’s share of the mobile broadband internet access market stood at 30.7% in the fourth quarter of 2023. The household mobile broadband access penetration rate stood at 98.2% in Slovenia in the fourth quarter of 2023, and will continue to rise.
Operators’ revenues for ICT services in western Europe will increase at an annual rate (CAGR) of 8.2% to reach EUR 23.0 billion by 2027 (source: Analysys Mason). ICT services include security, unified communications, co-locations and cloud services, such as SaaS and IaaS. Take-up of these services at businesses was accelerated by the Covid-19 pandemic, which increased many firms’ interest in digital transformation.
Operator revenues from dedicated connections will rise slightly from EUR 16.9 billion in 2021 to EUR 17.3 billion in 2027 (source: Analysys Mason for western Europe).
Demand for bandwidth per connection is rising due to the intensifying migration of business applications to the cloud. Revenue growth will be limited by price competition and the increased availability of alternative solutions, which are based on high-quality broadband services, together with SD-WAN and other software-supported network services.
Total revenues in the IoT value chain in western Europe are forecast to rise at a CAGR of 12% between 2021 and 2027, but the share of connection revenues that they account for will fall.
Total revenues in the IoT wireless value chain (TVC) will reach almost EUR 31 billion by 2027. IoT connectivity offered by operators will continue to account for a small share of total revenues (8% by 2027). The car sector alone will account for more than half of IoT TVC revenues, while the sectors of smart buildings and utilities will also see considerable growth in revenues. These sectors will be strengthened by EU funding earmarked to assist in meeting sustainability targets.
Revenues from ICT services in Slovenia will rise at a CAGR of 8.4% over the period to 2027. The number of IoT connections will rise sharply, which will drive growth in revenues (CAGR of 13.8%). IoT connectivity will nevertheless account for just 3.7% of revenues in the mobile segment in 2027.
IPKO retains its position as one of the leading brands in the Kosovar market. It is recognised as a brand for young people in the mobile telephony segment, and also has a significant share of the fixed services segment.
The mobile market remains largely prepaid, with the widespread use of OTT applications and a significant shift from voice to data services. In fourth quarter 2023, Vala caught up with IPKO in terms of market share by users (IPKO 49.2%, Vala 49.3%), and in terms of revenue share, IPKO remains the leading operator in the mobile segment with a market share of 55.0% (RAEPC Q4 2023). IPKO remains the only operator to have fully implemented the country code of +383. It also launched various Roaming-Like-Home offers in the western Balkans between 2020 and 2023 at the request of RAEPC.
It has successfully completed 5G testing, and has obtained a frequency band from the Kosovar regulator RAEPC.
Telekom Slovenije will provide a comprehensive set of business ICT solutions, and will also attend to planning, installation, management and maintenance. Its smart infrastructure services are used to provide services that help to raise quality of life, and to ensure a clean, sustainable environment, and the use of smart solutions.
The mobile segment in Kosovo maintains a high penetration rate. Mobile penetration in Kosovo reached 107.0% in fourth quarter 2023.
There are two major operators in the market, Vala and IPKO, and a third smaller operator, Mts. IPKO is the only operator offering 5G in Kosovo, and was also the only operator to launch eSIM in 2023.
Source: RAEPC report, Q4 2023
The fixed market has become fiercely competitive in the last few years, with three main operators fighting for market share (IPKO, Artmotion and Kujtesa), with two more just behind (PTK and Telkos). These operators have launched packages with low prices and higher internet speed, and are continuing to focus on strengthening and improving the digital product range. The competition (Artmotion and Kujtesa, and also Telkos in 2023) have standardised their services, and enriched their content to provide sport and other TV.
Despite the fierce competition, IPKO succeeded in maintaining a stable base of fixed users by offering long-term subscription contracts with benefits, and continued its positive trend of expanding the subscriber base and increasing premium packages. The seasonal effect of the diaspora is felt in both the mobile and fixed segments, which helped IPKO to build its total user base and to grow revenues in 2023.
Source: RAEPC report, Q3 2023
As essential elements in our business processes, the comprehensive and effective identification and management of risks are major factors in our decisions, and are also vital in meeting our strategic objectives and realising our mission. We regularly brief stakeholders on the material risks.
Good risk management and the prompt identification of new risks allow us to consistently monitor and mitigate the adverse impact on our performance from the internal and external environments. We also monitor risks in the area of sustainability, which are also integrated into the comprehensive risk management framework at the Group.
The risk management framework is based on the practices of the COSO and is in line with the ISO 31000 standard.
The carefully planned identification of risks at the Group ensures that our understanding of them is consistent, which allows for easier communication, more comprehensive reporting on material risks and the corresponding measures taken, decisions taken with regard to the risk management strategy, and a clear structure of responsibilities in risk management. The Group also monitors risk exposure in line with its in-house calculation methodology. We continually promote good awareness of the importance of risk management. The risk management process is developed and coordinated by the team responsible for compliance and risk management.
The review of key internal controls is also an integral part of risk management. The establishment and functioning of internal controls is reviewed once a year, in line with the self-assessment methodology. This ensures transparency in the identification of deficiencies in processes and more effective risk management.
Risk management is also reviewed by the internal audit department alongside its other tasks, and it reports in line with its professional guidance. The Management Board is regularly briefed on risk assessment at the Group, and the findings of inspections by various assurance providers, and responds appropriately to the assessment and the findings with a set of measures to manage risks and ensure compliance. The Management Board reports regularly to the Supervisory Board and the latter’s committees with regard to material risks, findings and the adopted measures.
The material risks at the Telekom Slovenije Group and the measures to manage them are presented below.
Monitoring of user expectations and market trends, and flexibility in supply. The emphasis is on ensuring the highest quality and the broadest set of competitive services for the most diverse user segments. To ensure the very best user experience, we are constantly optimising and developing the product portfolio. We follow user needs by overhauling our mobile and fixed packages, by offering innovations and by enriching programme content. We also encourage existing users to switch over to better packages, and carry out subscriber retention programmes.
In doing business we take account of applicable legislation, rulings, sectoral regulations and the requirements of competent authorities. The regulatory risks inherent in any tightening or expansion of Telekom Slovenije’s obligations by the regulator of the market for fixed and mobile electronic communications are managed by means of organisational and process measures, through constructive dialogue, and by putting forward opinions, commentaries and proposals in procedures where the regulator’s acts are discussed. We actively participate in analysis of the relevant markets, and consistently apply the rulings issued by the regulator and ensure our regulatory compliance. We also pursue legal remedies against regulatory rulings when this is justified. We regularly monitor changes in the regulatory framework.
We process extensive collections of personal data relating to users, business partners, employees and other stakeholders. Much of our attention therefore turns to the security and compliance of data processing, for existing services and for new services alike. This we ensure by constantly monitoring, reviewing and upgrading our processes and measures to protect personal data, by conducting impact assessments for the development of new services and the introduction of new technologies, and by continually training employees and authorised agents. This is how we respond to changes in the regulatory environment, to nascent threats, and to stakeholders’ expectations.
January 2023 saw the entry into force of the new Personal Data Protection Act (the ZVOP-2), which finally enacted Regulation (EU) 2016/679 of the European Parliament and of the Council on the protection of natural persons with regard to the processing of personal data and on the free movement of such data (General Data Processing Regulation). In addition to these regulations, the sectoral legislation is also important to personal data processing at Telekom Slovenije, most notably the Electronic Communications Act (the ZEKom-2).
We are also monitoring the drafting of other regulations in the area of personal data processing in Slovenia and at EU level that are yet to enter into force but will affect the provision of the Company’s services in the future. For example, Regulation (EU) 2023/1543 on European Production Orders and European Preservation Orders for electronic evidence in criminal proceedings and for the execution of custodial sentences following criminal proceedings, which begins to be applied in August 2026, the new ePrivacy Regulation, which is being coordinated between EU bodies, and the Data Act.
We are preparing for the introduction of Directive (EU) 2022/2464 as regards corporate sustainability reporting (CSRD) and the European sustainability reporting standards (C(2023)5303), which enter into force in 2024. The process of defining double materiality as envisaged by the directive was carried out in 2023, and represents the basis for reporting under the European sustainability reporting standards. For more, see section 8.1.1 Management of sustainability at the Telekom Slovenije Group.
expectations and the increased scope of regulatory requirements. We therefore continually upgrade and overhaul the technology and security of our networks, data centres and other technical infrastructure. Activities is underway to modernise and upgrade the RAN with 5G technology, to make a generational replacement of the MPLS backbone network and to upgrade the mobile packet network. To ensure business continuity, we regularly assess and, as necessary, upgrade the topologies and capacities of the infrastructure and ICT services. We are setting up a new support location for disaster recovery in Kosovo.
revenues on the wholesale market. All Group companies recorded an increase in revenues generated on the market.
The operating expenses of the Telekom Slovenije Group amounted to EUR 644.0 million, an increase of 6% relative to 2022. The increase was driven by higher electricity costs, the impairment of the infrastructure destroyed in the August floods, and higher direct costs, which is linked to higher sales revenue.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) at the Telekom Slovenije Group amounted to EUR 228.6 million, up EUR 12.1 million or 6% on 2022. Had energy prices in 2023 remained at the 2022 level, and if there was no state aid for energy in 2023 and there was no negative effect of floods, EBITDA would have been 10% higher than in 2022. The EBITDA margin (i.e. EBITDA as a proportion of sales revenue) was 32.9% at the Group level.
Earnings before interest and taxes (EBIT) amounted to EUR 64.1 million at the Telekom Slovenije Group level, an increase of 27% relative to 2022. Had energy prices in 2023 remained at the 2022 level, and if there was no state aid for energy in 2023 and there was no negative effect of floods, EBIT would have been 46% higher than in 2022.
Following the calculation of income tax (including deferred taxes), the Telekom Slovenije Group generated a net profit of EUR 47.1 million in 2023, an increase of EUR 9.6 million or 25% relative to 2022. One factor in the rise in Telekom Slovenije Group’s net profit was a change in the corporate income tax rate from 19% to 22% as of 2024, which had a positive effect on deferred taxes in 2023 in the amount of EUR 5.7 million. Had energy prices in 2023 remained at the 2022 level, and if there was no state aid for energy in 2023 and there was no negative effect of floods and no effect of a change in the tax rate; the net profit of the Telekom Slovenije Group would have been 30% higher than in 2022.
| In EUR million | I - XII 2023 | Adjusted I-XII 2023* | I - XII 2022 | Index 23/22 | Index adjusted 23/22 |
|---|---|---|---|---|---|
| EBITDA | 228.6 | 237.6 | 216.5 | 106 | 110 |
| EBIT | 64.1 | 73.2 | 50.4 | 127 | 146 |
| Net profit | 47.1 | 48.7 | 37.5 | 125 | 130 |
The Telekom Slovenije Group and Telekom Slovenije recognised impairments for the infrastructure damaged in the August floods. That impairment was lower than the estimate published in the Unaudited Business Report for the period January to September 2023. The recognised total net effect on the EBIT of the Telekom Slovenije Group in 2023 was estimated at EUR 3.9 million, with Telekom Slovenije accounting for EUR 1.2 million of that figure. The estimated impairment to the present value of property, plant and equipment amounted to EUR 5.6 million at the Group level and to EUR 1.3 million at Telekom Slovenije, and was recognised in the income statement in other operating expenses. The effects of impairment need to be considered together with estimated other operating revenues (revenues in the form of insurance claims paid and revenues from the reversal of provisions for subsidies received), which amounted to EUR 1.7 million at the Group level and EUR 150 thousand at the Company.
In accordance with the Act on Aid to the Economy to Mitigate the Impact of the Energy Crisis, the Telekom Slovenije Group received aid in the amount of EUR 3.6 million during 2023.
The Telekom Slovenije Group also uses the Alternative Performance Measures (APMs) defined by the ESMA to present its operating results (for more information, see Enclosure 3 Alternative Performance Measures).
Total assets amounted to EUR 1,317.9 million as at 31 December 2023, up EUR 42.5 million or 3.3% on 31 December 2022.
Non-current assets amounted to EUR 1,044.0 million, up EUR 12.5 million or 1.2% on the end of 2022. There were increases in property, plant and equipment (EUR 7.0 million) and in right-of-use assets (EUR 3.8 million). The proportion of the Group’s total assets accounted for by non-current assets declined to 79.2% (2022: 80.9%).
Current assets amounted to EUR 273.9 million, up EUR 30.0 million or 12.3% in year-on-year terms. There were increases of EUR 18.1 million in cash holdings, and EUR 11.1 million in trade receivables and other receivables.
Equity totalled EUR 658.6 million, up EUR 47.0 million or 7.7% on the end of 2022, and accounted for 50.0% of total assets (2022: 48.0%).
Non-current liabilities amounted to EUR 448.8 million, and accounted for 34.1% of total assets. The figure was up EUR 98.6 million on the end of 2022, primarily as a result of the refinancing of a long-term loan in the amount of EUR 100 million maturing in December. Non-current liabilities as at 31 December 2023 were thus up 28.2% on the end of 2022.
Current liabilities amounted to EUR 210.4 million, down EUR 103.0 million on the end of 2022. The proportion of total assets accounted for by current liabilities declined to 16.0% (2022: 24.6%), primarily as a result of the refinancing of the long-term loan in the amount of EUR 100 million maturing in December, which was recorded under current financial liabilities.
Net financial debt as at 31 December 2023 was down 11% on 31 December 2022.
The Group recorded investments in non-current assets in the amount of EUR 170.9 million and outflows for loans granted and deposits placed in the amount of EUR 0.2 million under outflows for investing activities.
The Group’s inflows from investing activities in 2023 primarily comprised proceeds from the sale of non-current assets in the amount of EUR 3.2 million (with the sale of the fibre optic network to ARNES accounting for EUR 2.5 million of that amount), inflows from interest in the amount of EUR 0.3 million and inflows from dividends in the amount of EUR 0.2 million.
The Group’s outflows from financing activities included repayments of the current portion of long-term loans in the amount of EUR 32.5 million, interest paid on loans raised and right-of-use assets in the total amount of EUR 17.4 million, and outflows for the approval of loan borrowings in the amount of EUR 0.1 million. Under IFRS 16, lease liabilities (excluding interest) in the amount of EUR 10.2 million were recognised under outflows from financing activities.
The Group recorded the refinancing of the long-term loan in the amount of EUR 100 million in December 2023.
| Telekom Slovenije Group | Telekom Slovenije | |||||
|---|---|---|---|---|---|---|
| in EUR thousand and % | I – XII 2023 / 31 Dec 2023 | I – XII 2022 / 31 Dec 2022 | Index 23/22 | I – XII 2023 / 31 Dec 2023 | I – XII 2022 / 31 Dec 2022 | Index 23/22 |
| Sales revenue | 694,913 | 652,121 | 107 |
| Operating Revenues | Current Year | Previous Year | Change (%) |
|---|---|---|---|
| Total operating revenues | 708,167 | 658,953 | 107 |
| Other operating income | 13,254 | 6,832 | 194 |
| EBITDA | Current Year | Previous Year | Change (%) |
|---|---|---|---|
| EBITDA | 228,569 | 216,452 | 106 |
| EBITDA margin = EBITDA / sales revenue | 32.9% | 33.2% | 99 |
| EBIT | Current Year | Previous Year | Change (%) |
|---|---|---|---|
| EBIT | 64,138 | 50,362 | 127 |
| Return on sales = EBIT / sales revenue | 9.2% | 7.7% | 120 |
| Net Profit | Current Year | Previous Year | Change (%) |
|---|---|---|---|
| Net profit for the financial year | 47,065 | 37,506 | 125 |
| Assets | Current Year | Previous Year | Change (%) |
|---|---|---|---|
| Assets | 1,317,866 | 1,275,338 | 103 |
| Equity | Current Year | Previous Year | Change (%) |
|---|---|---|---|
| Equity | 658,638 | 611,677 | 108 |
| Return on equity (ROE) | 7.4% | 6.2% | 120 |
|---|---|---|---|
| Net financial debt | 355,737 | 401,168 | 89 |
| Net financial debt / EBITDA | 1.6 | 1.9 | 84 |
| Investments (CAPEX) | 188,037 | 167,791 | 112 |
| Number of employees as at the last day of the period | 3,253 | 3,262 | 100 |
| Investments as a proportion of operating revenues | 26.6% | 25.5% | 104 |
Definitions can be found in point 10.2 Alternative performance measures.
To ensure its liquidity the Group has short-term funding from banks maturing in 2024. The liquidity reserve in the form of revolving loans and an overdraft facility on the business account in the total amount of EUR 55 million was not drawn down as at 31 December 2023.
A portion of the Group’s financial liabilities is accounted for by three syndicated loans in the total amount of EUR 237.1 million and a loan from the European Investment Bank in the amount of EUR 100 million. Other financial liabilities consist of finance leases.
Loans received as at 31 December 2023 carry fixed and variable interest rates. Fixed interest rates account for 29.7% of interest-bearing financial liabilities at the Group level16.
| 0% | 10% | 20% | 30% | 40% | 50% | 60% | 70% | 80% | 90% | 100% | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 31.12.2021 | 31.12.2022 | 31.12.2023 | ||||||||||
| Non-current financial liabilities | ||||||||||||
| Current financial liabilities |
The net financial debt to EBITDA ratio stood at 1.56 at the end of 2023.
A total of EUR 132.5 million in long-term loans was repaid in 2023. A long-term syndicated loan in the total amount of EUR 100 million was drawn down from SID banka and NLB at the end of 2023, thus fully refinancing the tranche of the long-term syndicated loan maturing in December 2023.
Subsidiaries secure borrowings from the parent company. Financing within the framework of the Group and the reallocation of cash surpluses between Group companies allows for more effective cash management and the optimisation of cash flows.
A detailed description of financial risk management is found in section 7.2 Risk management and in the accounting report in point 45 Financial instruments and risk management.
In their loan agreements creditor banks require the fulfilment of financial commitments at Group level. Failure to meet the commitments could be grounds for the early maturity of the loans. All financial commitments at the Group level were met as at 31 December 2023.
Through investments in the construction, modernisation and development of networks and services, we provide the basis for attracting new and retaining existing subscribers, and for securing new revenue sources and maintaining a high level of quality. The majority of investments in 2023 were earmarked for the expansion of the fibre optic access network, and the modernisation and expansion of the mobile radio network, which will provide users a superior user experience in terms of broadband content and high-speed internet access. Investments were also earmarked for cyber security, business information support, and for the development of new services and the continued optimisation of operations. For more information, see section 7.6 Development of the network, technologies and services.
| in EUR thousand | I – XII 2023 | I – XII 2022 | Index |
|---|---|---|---|
We manage the largest and most advanced fixed and mobile networks, in which we provide users the best user experiences. Through continuous and systematic development and research projects, we ensure reliable, stable and secure connectivity at the highest speeds.
Research activities are co-financed with European funds, which we secured via various tenders, primarily in the scope of the Horizon Europe programme for the period 2021 to 2027. These projects facilitate cooperation with domestic and foreign partners and the development of new services and technologies in the international environment. In 2023, we focused on the intensive development of new technologies, such as 5G, cyber security, the Internet of Things and critical communications. We received state aid in 2023 in the amount of EUR 185.6 thousand for research and development work in the fields of health and medicine, and smart cities and communities (co-financing under the public call, Protecting Innovation Potential, which represents de minimis aid).
Completed in November 2023 was the 5G-LOGINNOV (https://5g-loginnov.eu/) project, which began in 2020 and was intended for the optimisation of logistics and traffic at European ports. Over a three-year period, 15 partners tested solutions at ports in Koper, Hamburg and Piraeus.
Telekom Slovenije set up a development-test 5G network with additional MEC (Multi-Access Edge Computing) capacities in the vicinity of the Port of Koper in the scope of the project. That network is intended for the development and testing of solutions for optimising processes, increasing efficiency and reducing environmental impacts in the management of transport logistics. When testing solutions, we and our project partners used the latest 5G mobile network technologies and devices, sensors, automation, analytics and traffic management systems, including the use of self-driving freight vehicles.
The aim of the European 5G-IANA (https://www.5g-iana.eu/) project is the establishment of an open experimental platform for the needs of the automotive industry. The platform will be intended primarily for small and medium-sized enterprises, and will facilitate the development, set-up and testing of innovative solutions in connection with self-driving vehicles and communication between devices in.
| Telekom Slovenije | 158,930 | 114,086 | 139 |
|---|---|---|---|
| Other companies in Slovenia | 23,707 | 23,109 | 103 |
| IPKO – Kosovo | 23,629 | 38,924 | 61 |
| Other companies abroad | 1,670 | 1,374 | 122 |
| Exclusions and adjustments between Group companies | -19,899 | -9,702 | - |
| Telekom Slovenije Group | 188,037 | 167,791 | 112 |
We will also provide the necessary virtualised environment, in which partners will establish virtual network functions.
(https://www.precinct.info/) was completed at the end of September 2023. Independent assessors gave the project the highest possible score and recommended it as an example of best practice. The primary aim of the project was the connection of critical infrastructure managers to protect against cyber threats and natural disasters in a specific geographical area.
The project included 40 international partners from different European countries, who used simulations and artificial intelligence in a test environment to develop tools for identifying security vulnerabilities, and various measures for the more effective provision of critical infrastructure security. The project thus contributed significantly to the increased security of the population and the improved reliability of the European critical infrastructure.
Telekom Slovenije’s role in the project was to set up a test environment for the testing of various solutions, such as a digital twin and serious games. Serious games represent a special category of video games that are not intended solely for entertainment, but primarily for education or training.
(https://sunrise-europe.eu/), which began in October 2022 and is expected to last three years. The aim of the project is to develop solutions that will facilitate active cooperation between links in the critical infrastructure, and will ensure improved readiness and equipment in the joint management of the risks brought about by pandemics.
The project addresses various aspects, such as cyber security and business continuity, the recovery and development of socially relevant public structures, with an emphasis on sustainability and green recovery. The project includes 41 European partners, including ten from Slovenia. During the project, Telekom Slovenije will provide a modern information infrastructure and connectivity via the 5G network for secure and reliable communication.
(https://www.atlantis-horizon.eu/) is to increase resilience to a combination of cyber and physical attacks that target critical infrastructure. A total of 39 European partners are participating in the project, which began in October 2022 and is expected to last until September 2025.
The aim of the project is to improve the identification of systemic risks and the vulnerabilities of critical infrastructure. New flexible and adaptable measures and tools will be developed for that purpose. Cooperation will improve between critical infrastructure managers and other stakeholders.
Through the fixed access network, we ensure broadband coverage, and the high performance of the cable network and active access devices. We continued to modernise radio and fibre optic access networks in 2023, while development activities focused on the Internet of Things, 5G technology and the provision of services through the mobile network.
We carried out the third phase of the evolutionary upgrade of the aggregate element of the MPLS backbone network. The project will be completed by the end of 2024. We upgraded the peering element of the MPLS network: connectivity with international internet service providers. We completed the construction of a consolidated network of data centres and completed the third phase of the internal business network upgrade. We also expanded transmission systems (microwave connections, xWDM systems, etc.).
In 2023, we completed a multi-phase project to upgrade the central disk array to ensure sufficient capacities for the next two years. We also upgraded the server infrastructure of the private cloud’s virtualised environment.
In the area of communication platform development, we upgraded the firewall systems for business and private telephony, and carried out the generational replacement of the call recorder and a number of system software upgrades. We began to upgrade the e-call system and to phase out the EWSD (Electronic Digital Switching System) at the Rakovnik location.
Telekom Slovenije’s fibre optic network is continuously expanded and upgraded, as we use it to provide higher internet speeds (up to 1 Gb/s and up to 10 Gb/s upon request), a superior user experience for broadband content and advanced home network solutions. At the same time, we are improving the cost effectiveness of the system and contribute to the achievement of Slovenia’s strategic objectives in the development of gigabit infrastructure by 2030.
The fibre optic network provides higher internet speeds, a superior user experience for broadband content and advanced home network solutions. At the same time, we are also improving the cost effectiveness of the system and contribute to the achievement of Slovenia’s strategic objectives in the development of gigabit infrastructure by 2030.
We are gradually migrating from the copper network to the fibre optic network; on the copper network, ADSL2+ technology is making way for VDSL2 technology, which facilitates higher speeds and improved transmission symmetry.
We are building the network throughout Slovenia, in both urban centres and rural areas, in accordance with the development strategy, economic criteria and the interests of users. To that end, we are fulfilling our commitment to build a fibre optic network in locations where we have expressed market interest.
We are working intensively with municipalities, local communities and other infrastructure operators in the joint construction and upgrading of the infrastructure, and are thus facilitating the more rapid and efficient construction and connection of users to the broadband network. We are also expanding fibre optic connections to base stations and connections for business users.
We continued to expand the DWDM ROADM network in 2023 with the inclusion of 100 G and 10 G interfaces, and through the construction of a distribution network for the synchronisation of the 5G network. We optimised the SDH network taking into account trends of the exclusion of TDM connections.
On the regional fibre optic network, we constructed the coherent Zagreb–Banja Luka–Sofia section, and included additional 100 G connections.
Users’ needs for even higher-capacity mobile internet access continue to grow every year. The trend of rising data transfer quantities was also characteristic of 2023. For this reason, the mobile network, software and equipment are continuously upgraded with 4G and 5G technologies. We also increase the capacities of base stations. The external and internal coverage of the mobile radio signal is improved through the construction of base stations at new locations. Following intensive preparations during the first half of the year, we implemented the biggest project to date aimed at the modernisation and expansion of the 4G and 5G radio network during the second half of the year, and are thus following guidelines on the use of the frequency spectrum for advanced 4G and 5G technologies.
We covered more than 97% of the population with the LTE/4G network and more than 60% of the population with the 5G network as at 31 December 2023. We included an additional 77 small cells for the needs of internal coverage.
We are upgrading the 5G network according to the NSA (non-standalone) principle; in November 2023, we set up a demonstration environment for a private network according to the SA (standalone) principle.
We ensure coverage with the 5G network in the 2,600 MHz, 3,600 MHz and 700 MHz frequency bands, primarily in cities, business centres and along transport routes, and also in some rural areas. 5G technology brings users even faster and more reliable mobile data transfer and stabler connections. We are planning the smart 5G infrastructure in such a way that facilitates numerous virtual dedicated networks for specific business verticals, such as eHealth, energy, transport, logistics, factories, smart cities and communities, etc. In November 2023, we switched on the first test private network based on SA technology.
We provided high-quality and reliable services and connections to numerous visitors, organisers, competitors and journalists at the largest sporting events in Slovenia.
We provided flawless communication connections at the 59th Golden Fox event in Kranjska Gora and at the world cup biathlon event in Pokljuka, where we also provided access to a high-capacity Wi-Fi network for 15,000 fans. In Kranjska Gora and Planica, we upgraded our 4G and 5G network with even higher capacities and speeds prior to the Nordic World Ski Championships and other sporting events.
the services they need for the high-quality and uninterrupted performance of their work. We set up a single, high-capacity open Wi-Fi network that was available to all in Planica, something no other organisers of similar sporting events have ever achieved. A total of 57,000 fans watched the sporting event at the venue. In the Municipality of Kranjska Gora, we completed a project to set up a free wireless WiFi4EU internet, as part of an EU initiative to set up points for accessing a Europe-wide wireless internet.
Cyber attacks are becoming increasingly intense and complex, while changing global conditions increase risks in the area of cyber security. Telekom Slovenije is part of the critical infrastructure, and is therefore dedicating a great deal of attention to cyber and information security. We have one of the largest and most advanced cyber security and resilience centres in the region. In our centre, we ensure the cyber security of our systems, networks, services and users, while we also provide cyber protection services to various organisations, companies and events. Our experts handled 65% more security incidents in 2023 than in 2022. The most frequently used methods of attack used by attackers to target individuals and companies are malware (worms, trojans, etc.) and ransomware, which attackers deliver to victims mainly with the help of phishing or via the vulnerabilities of software. DDoS attacks, network scanning and the search for security weaknesses have become part of everyday life.
The Cyber Security and Resilience Centre continued activities in 2023 aimed at automation of processes, risk management and the provision of services to new users. We introduced new cyber security management tools and concepts, and strengthened employee competences.
The NEO multimedia platform, which brings together the best home and entertainment solutions in one place, celebrated its fifth anniversary at the end of 2023. The platform is the result of the development of Telekom Slovenije’s experts.
NEO continuously and rapidly adapts to the habits of TV viewers. The interface was updated at the end of the summer based on focus group studies for an even simpler and more intuitive method for accessing content. We updated the home screen and left-hand menu.
We recorded 12 user videos, which we referred to as NEO Namigi (NEO Hints), for the updated NEO screen. Those videos explain in detail specific functionalities and facilitate the use of services and settings, such as voice control, the activation of a Wi-Fi access point, the setting of the PIN code in the Children’s Park and many others.
Through smart infrastructure services, we are improving the quality of living, and ensuring a clean and sustainable environment and the use of smart solutions. These services include remote meter reading, smart parking lots, building energy management and smart cities.
and our partners Imovation and Nomago. Centralka improves the mobility system, and brings together and digitalises the municipality’s mobility services. This modern platform, through which services are available to the citizens of and visitors to Celje, results in higher-quality, more sustainable and environmentally friendly living.
In 2023, we migrated the Online Store platform to the SAP Commerce Cloud, which is a hybrid solution that facilitates improved functioning, lower costs and security improvements. We successfully launched the Red Hat OpenShift platform, which represents an important step on the path to the digital transformation, as the platform facilitates more effective management and the orchestration (deployment) of container applications and improved responsiveness to changes. With the integration of the DevOps methodology and the introduction of continuous integration and continuous deployment (Ci/CD), we achieved a significantly faster development cycle, which in turn facilitates the quicker introduction of new functions and improvements. The result is a more agile, flexible and effective IT environment.
Effective information support systems (OSS) are necessary to control everyday processes, and to manage and maintain the telecommunications network and services. In 2023, we supported new services and technical solutions for the B2B, B2C and wholesale markets, and developed new functionalities and applications to support operational processes.
The technical inventory system infrastructure is being updated in the scope of the modernisation of the OSS, while we also upgraded the HDM system in the test environment, supplemented the WorkForce Management system, upgraded the CNEEKS system, and supplemented models, interfaces, adapters and web applications to support the automation of the business segment, new technologies and sales promotions.
We completed the consolidation of the GIS (geographic information system). We optimised key processes for the provision of services and the fault management system, and simplified the work of the technical help desk.
In accordance with the Telekom Slovenije Group’s strategy, we offered OSS systems to the market, where we successfully implemented information support for individual business users and provided cyber security services.
Corporate security management ensures comprehensive security management at the Group level, the safeguarding of assets and information, a safe and secure working environment, and the secure and high-quality functioning of our network and services.
We manage technical and mechanical security systems through our own security control Centre (SCC), which is certified according to the SIST EN 50518 standard. Through the information security management system (ISMS) and business continuity management system (BCMS), we ensure a high level of security and the availability of the network and services. Those systems facilitate a rapid response, protection and the recovery of both services and processes when security threats or incidents are identified. Both systems are certified according to the international ISO 27001 and ISO 22301 standards.
Another important factor in the area of cyber security is the continuous training and testing of employees regarding the recognition of cyber security threats. We also inform our users about security threats and the secure use of electronic communications.
The Slovenian telecommunications market (including systems integration and cloud services) is developed and already in the phase of saturation. Telekom Slovenije maintains a high market share in all segments in which it operates, and provides the most advanced services, tailored to the needs of users. We hold the leading market share in the IPTV, mobile telephony and mobile internet segments.
Changes in the number of connections on the electronic communications market in Slovenia
Source: Statistical Office of the Republic of Slovenia, third quarter of 2023.
The fixed and mobile segments of the Slovenian communications market are dominated by four convergent operators. Telekom Slovenije, A1 Slovenija (Telekom Austria Group), Telemach (United Group) and T-2 compete amongst each other with a range of package services.
Market shares of leading operators in key segments, in %
Source: AKOS, fourth quarter of 2023.
GRI 2-6, SDG 8.10
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
The Telekom Slovenije Group had 1% more broadband connections at the end of 2023 than it did at the end of the previous year. The total number of connections was up by 2% in Slovenia and down by 3% in Kosovo.
The total number of mobile telephony users was up by 4%. The number of mobile telephony users in Slovenia was unchanged relative to 2022, but up by 7% in Kosovo.
| Retail mobile users | Number of connections as at | 31 December 2023 | 31 December 2022 | Index 23/22 | |
|---|---|---|---|---|---|
| Slovenia | 953,441 | 949,779 | 100 | ||
| Kosovo | 955,130 | 892,665 | 107 | ||
| Telekom Slovenije Group | 1,908,571 | 1,842,444 | 104 |
| Retail broadband connections | Number of connections as at | 31 December 2023 | 31 December 2022 | Index 23/22 |
|---|---|---|---|---|
| Slovenia | 201,236 | 196,610 | 102 | |
| Kosovo | 98,270 | 101,285 |
| Fixed broadband access | IP TV | ||
|---|---|---|---|
| Market share | 28.0% | 41.8% | 35.0% |
| Annual change (p.p.) | 0.5 p.p. | 0.5 p.p. | -0.6 p.p. |
| Connections | 201,236 | 1,697,425 | 953,441 |
| Annual change | 2.4% | 2.9% | 0.4% |
| 28.0% | 72.0% |
|---|---|
| 41.8% | 58.2% |
| 35.0% | 65.0% |
| Company | I – XII 2023 | I – XII 2022 | Index 23/22 |
|---|---|---|---|
| Telekom Slovenije | 601,669 | 575,886 | 104 |
| Other companies in Slovenia | 97,498 | 94,899 | 103 |
| IPKO – Kosovo | 90,665 | 79,015 | 115 |
| Other companies abroad | 3,956 | 3,956 | 100 |
| Exclusions and adjustments | -98,875 | -101,635 | |
| Telekom Slovenije Group | 694,913 | 652,121 | 107 |
The focus of our operations is on users, whom we provide the best user experience through advanced solutions and a portfolio adapted to their needs. We also adapt to the preferences and behaviour of users through the use of advanced algorithms and machine learning techniques, as this allows us to identify patterns, trends and links in data. This is also how we provide personalised recommendations, and increase user satisfaction and loyalty.
In 2023, we included one of the more contemporary Naj or SUPR packages free of charge for subscribers of older mobile packages. Because users require increasingly more data transfer quantities, we improved mobile packages by including practically unlimited data transfer in our network and more than 20 GB of data transfer in countries covered by the EU tariff.
In the prepaid segment, we prepared various promotional campaigns for MOBI and IZI users. In October, we increased quantities in existing Čvekaj Mobi and Mini Mobi packages at the same prices, and prepared the new Mobi Net package.
We updated NEO packages by including even faster internet access and a TV programme scheme with rich content. We simplified the portfolio of fixed packages by including the highest possible internet speed with respect to technology. We also successfully replaced older Netgem set-top boxes with modern NEO Smartboxes.
Our Safe Web service protects users against online fraud, computer viruses, transfers of harmful files and programs, and the attempted theft or abuse of personal data, without the installation of software on users’ devices. In 2023, the aforementioned service halted more than ten million cyber threats (attempts to access dangerous domains) and protected over 40% of devices using the Secure Web service that would have been exposed to cyber risk without protection.
VALÚ is a smart wallet or payment and identification system that was used by more than 140,000 users in 2023. That translates to a 16% increase relative to 2022. Users executed more than 2.7 million transactions.
We increased the number of points of sale where the VALÚ Smart Wallet can be used to make payments by 15%, with such payments now possible at more than 4,000 points of sale. We expanded the network of points of sale to petroleum products, pharmacy and sanitation, libraries, vignette purchases and delivery services, as well as the sale of footwear and fashion.
We migrated the Online Store to the SAP Commerce Cloud, and carried out a visual and technical redesign. In accordance with the valid ZVPot and ZEKom, we made it possible for users to view the lowest price of the last 30 days and to see the offer document before a purchase is finalised. The portfolio is continuously updated and now comprises around 5,300 products spanning more than 130 categories, with more than 3,400 of those products available in the Loyalty Programme with the option of instalment payments. In the scope of the Certified Shop, a symbol of secure online purchasing according to consumers, we received an excellent trust score (9.6 out of 10) and achieved a high transactional NPS.
eCare provides the elderly, disabled and chronically ill more independent and safer living in their home environment. It ensures a 24-hour-a-day link to an assistance centre and medical staff, as well as the organisation of assistance when users need it.
Together with consortium partner, the Slovene Federation of Pensioners’ Associations (ZDUS), we were chosen via public tender in 2023 to implement the Remote eCare project sponsored by the Ministry of Solidarity-Based Future, which represents the continuation of the Home eCare project, sponsored by the Ministry of Health, which was completed in September 2023 and co-financed by the European Social Fund (ESF). The service will be available free-of-charge to 5,500 eligible parties until 30 June 2025, after which time it will be financed under the Long-Term Care Act.
The Remote eCare project will run from 1 October 2023 to 30 June 2025, while EUR 3.9 million is available, primarily to cover eCare connections and subscriptions for use of the service. A total of EUR 359,690 was drawn down from the beginning of October until the end of 2023.
The results of the Home eCare project, which was completed in September, were seen in the high level of satisfaction of eCare users. Telekom Slovenije drew down a total of EUR 2.9 million in 2022 and 2023. The majority of that amount (EUR 2.6 million) was earmarked for the connections and subscriptions of the service’s users. The remainder of drawn funds were earmarked for the reimbursement of the costs of communication and information about possibilities for using the service and the execution of required studies.
eCare in the scope of the Safe and Connected at Home project is also provided by numerous Slovenian municipalities that subsidise eCare for their citizens. The number of municipalities that have joined the project was up in 2023, with around 30 participating municipalities subsidising eCare in the amount of EUR 58,643. eCare is also included in our regular portfolio.
We also make it possible for Slovenian hospitals and health centres to use telemedicine to treat patients remotely, i.e. in their own home, without hospitalisation or a visit to an outpatient clinic. More than 2,000 patients across Slovenia have been treated using telemedicine. We provided technological support in 2023 for the telemedicine treatment of patients with lung diseases, and developed and tested a prototype for the integration of telemedicine and eCare.
Telekom Slovenije’s sales network comprises a broad network of points of sale: 17 Telekom centres and 48 authorised agents with 82 points of sale, and 16 authorised agents who make sales exclusively in the field.
In 2023, we established the new direct sales channel, which includes an internal field team, sales call centre and a team of authorised field agents. We thus centralised sales activities in the field and increased the number of visits. We executed more than 1,500 outreach campaigns in the field and opened more than 47,000 contacts. The outbound call centre contacted more than 70,000 users, primarily to inform them about the replacement of their old communicators, which were discontinued at the end of November 2023.
Solutions for business users represent an important element of our Digital strategic pillar, where we provide a comprehensive range of ICT solutions, while ensuring the planning, deployment, management and maintenance thereof.
We are the leader in the introduction and linking of the latest generations of mobile and fixed communications, systems integration, cloud services and multimedia content. Our most important partner statuses and certificates are as follows:
We are the leading provider of business multimedia communication services, which include the most advanced telephone and video communication. We provide business users the integration of business telephony with the Microsoft Teams environment or the Cisco Webex communicator. We continue to attract new business users in the area of cyber security. We perform security checks of information and industrial environments, and research cyber threats for specific organisations. We provide Cyber Security and Resilience Centre services to large international companies and the managers of the critical infrastructure, as well as essential services to small and medium-sized enterprises. An integral part of the Cyber Security and Resilience Centre is the Telekom Slovenije Computer Emergency Response Team (TSLO-CERT), which is an accredited member of the community of Trusted Introducer response centres.
IPKO organised the first cyber security conference in Kosovo. The conference was attended by 350 participants and participants discussed challenges and solutions in the area of cyber security. By organising such a professional meeting, IPKO on the one hand consolidated its role in further developing and strengthening digital resilience and raising awareness on cybersecurity assurance, while at the same time laying the foundations for future cooperation in the sector.
Revenues continue to grow on the domestic wholesale market. The number of users of the fibre optic access network was up, while the number of users of the copper network was down. We also recorded growth in the mobile operator access segment for national roaming and in virtual mobile networks. The increased monetisation of application text messages had a major impact on revenue growth. We were also successful in the public tender issued by the ARNES in connection with fibre optic connections for the needs of educational institutions and institutes.
Telekom Slovenije’s network is used by all Slovenian operators who roam on our fixed broadband and mobile network. We also allow operators to (co)use the passive telecommunications infrastructure, which includes antenna towers, optical fibres, cable ducts and co-location premises.
We were able to maintain stable revenues, despite challenges in international roaming and voice services due to regulation and the drop in voice traffic. We achieved growth by beginning to market international application text messages, and through the monetisation of the regional fibre network on the Sofia–Milan and Sofia–Vienna connections.
The regional fibre optic network remains a key factor in our success. That network is based on Telekom Slovenije’s backbone network and provides an alternative connection between the Balkans and other important hubs in Western Europe. We achieved an important milestone in 2023 with the successful launch of the most advanced service with a capacity of 400 GB based on DWDM technology, which links the Sofia Equinix and Dunaj Interxion data centres.
Avtenta is the leading partner for managing and implementing SAP solutions and paperless operations on the Slovenian market. The company specialises in:
and
• information support for business processes with standardised package solutions (SAPaaS and BCaaS) and integration with various systems.
Avtenta generated net sales revenue of EUR 11.1 million in 2023, an increase of 15% relative to 2022.
GVO provides comprehensive solutions in the design, construction, management and maintenance of telecommunication networks. To that end, it participates in the design, construction and maintenance of major infrastructure projects, and in public-private partnership projects in which it builds open broadband networks that are financed by the EU and Slovenia.
Sales revenue amounted to EUR 56.6 million in 2023, similar to the level recorded in 2022. Revenues generated on the market were up by 53% due to the implementation of major projects for the market and growth in sales revenue from the management of OBN. Revenues generated with Group companies were down relative to 2022, primarily due to a decline in network construction on behalf of Telekom Slovenije.
Soline manages the Sečovlje Salina Nature Park, where it ensures the preservation of natural and cultural heritage through the traditional production of salt. It also offers salt-based cosmetic and food products, and manages the Lepa Vida Thalasso Spa.
Soline generated net sales revenue of EUR 5.2 million in 2023, an increase of 36% relative to 2022. The company produced 1,039 tonnes of salt in 2023, a decrease of 57% relative to 2022. The majority of Soline’s sales are accounted for by traditional salt, Piran salt with a protected designation of origin and fleur de sel. The company also exports its products, primarily to Germany, Austria, Italy and Japan.
A total of 7,425 guests visited the Lepa Vida Thalasso Spa during the 2023 season, a decrease of 2% relative to the previous year. Sečovlje Salina Nature Park recorded 48,081 visitors, which is similar to the pre-pandemic period. The majority of people visited the Lera area, where traditional salt production is carried out. The Fontanigge area recorded 5,244 visitors. For more information, see section 8.2.2 Biodiversity.
TSinpo is a service and disabled workers company that produces and markets cardboard sleeves and packaging under its own brand. It also provides business support services to other companies. The company ensures a stimulative work environment for the long-term employment of disabled persons and other vulnerable groups.
The company generated net sales revenue of EUR 1.7 million in 2023, an increase of 14% relative to 2022.
TSmedia is the leading provider of digital media content and advanced advertising solutions, through the Siol.net online media, the Bizi business assistant, the only official telephone directory in Slovenia (itis.si), the najdi.si website and outdoor digital screens, and as Telekom Slovenije’s partner through targeted TV advertising on the NEO platform.
TSmedia expanded the network of digital screens that it manages in 2023.
TSmedia generated sales revenue of EUR 6.6 million in 2023, an increase of 7% relative to the previous year.
IPKO in Kosovo provides users a comprehensive range of convergent mobile communication, fixed telephony, internet and cable TV services.
The company generated sales revenue of EUR 90.7 million in 2023, an increase of 9% relative to 2022. That increase was the result of intensive marketing activities, cross-selling campaigns and the upgrading of the sales function. Also having a positive impact on sales was an increase in the wholesale segment due to the successful implementation of the final phase of the ‘roam like at home’ regulation for countries in the Western Balkans.
The Telekom Slovenije Group had 252 registered brands as at 31 December 2023. The full list of registered brands is accessible at http://www2.uil-sipo.si/.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
We repositioned the Telekom Slovenije brand in 2023. The essence of the brand is ‘Trigger a wave of changes for the better with Telekom Slovenije’. The positional slogan ‘Always for the Better’ derives from the brand essence, and promises users continuous improvements, quality and the knowledge that they never have to be satisfied with less because they can always choose the best.
‘Always for the Better’ is also a communication platform for residential and business users, and served as the basis for more than 90 advertising campaigns and projects in 2023. To that end, we tailored the offer and messages to the highlighted content and selected target groups. We presented the platform with Sebastijan Cavazza, a famous Slovenian stage, film and TV actor, who became the recognised face of Telekom Slovenije. With him, we painted a portrait of someone who does not accept compromises in life because he only wants the best. In addition to TV advertisements, we also presented a synthetic Sebastijan Cavazza in a digital environment using artificial intelligence or ‘deepfake’ technology.
We organised more than 100 events and webinars for users, as well as more than 50 promotional days in Telekom centres. In the area of direct communications, we addressed users via more than 500 SMS and direct mail campaigns, and prepared more than 100 different print materials.
Regular monthly campaigns were organised throughout the year to promote the Loyalty Programme, Smart Phone and NEO Games. At the beginning of the school year, in cooperation with Mladinska knjiga, we launched the Učim se (I Learn) mobile application, which is intended exclusively for Telekom Slovenije’s users.
We also communicated with business users about the portfolio in the scope of the ‘Always for the Better’ platform, with the recognised face of Telekom Slovenije, Sebastijan Cavazza.
We responded to the business segment’s lack of knowledge about security risks with a cyber security campaign, in the scope of which we presented the story of a business man who suffered a cyber attack. We addressed the professional public using educational content via various communication channels. We continued to organise our own webinars and published articles in the scope of various media projects, such as the Slovenian Gazelle, Delo newspaper’s Entrepreneurial Stars and Mobility.
We built recognition of the best provider of comprehensive ICT solutions through the Totally Digital competition, in which we awarded a selected entrepreneur with the digital transformation of their business using Telekom Slovenije’s services.
The Company also presented itself at all major professional conferences intended for different professional publics and our users.
We prepared more than 350 emails in 2023 to inform users about new and special offers. We also placed a great deal of emphasis on communication regarding the safe use of services and concern for the greenest possible future. We were active on all social networks. The picture below illustrates active users on specific networks.
NPS is one of the key indicators for monitoring satisfaction, and tells us whether or not users recommend Telekom Slovenije.
The trend in the satisfaction of residential users turned positive in 2023. Overall satisfaction reached its high level in recent years 26.
Users were most satisfied with good packages (NEO, affordable offers, the Loyalty Programme, increased data transfer quantities, Online Shop purchases, etc.), responsiveness, mobile phones (good prices, simple purchase, etc.) and technical support (good resolution of problems, help with malfunctions, etc.).
25GRI 2-29
26Valicon: Satisfaction of the users of telecommunication services, spring 2023 (31 March to 4 April 2023; sample size: 1,024)
Source: Valicon, Satisfaction of the users of telecommunication services; spring 2023.
NEO is a generator of positive experiences. It stands in a league of its own in terms of voice-controlled searching. NEO wins over users primarily as an interface with simplified voice control, which is fully integrated with the TV. It is simple to use and offers entertainment for the entire family (Valicon, Monitoring of product brands – NEO; December 2023, n = 1,026).
A total of 87% of NEO users are satisfied, while 28% of those users are completely satisfied. The proportion of users satisfied with the most commonly used user functions in TV services remains high (and is growing over time): 87% of users are satisfied with the voice-controlled search for content and 88% of users are satisfied with content in one place. NEO’s key advantage over other providers is the TV interface/communicator (menu appearance, where to view programmes, access to additional services, etc.) (Valicon, Satisfaction of the users of telecommunication services, spring 2023, n = 1,024).
NEO achieves the highest scores amongst users in 16 out of 25 elements:
Payment cards and cash remain the most frequently used forms of payment, while the share of e-wallet users was up by 8 percentage points (e-wallets are now used by 73% of Slovenes between the ages of 15 and 75 years).
In the category of mobile payment systems and mobile wallets, the VALÚ brand increased recognition (by 8 points) during the last year, while overall brand strength was unchanged. (Valicon, Monitoring of product brands – VALÚ; December 2023, n = 1,026).
The overall satisfaction of business users was high and at the level measured the previous year. The proportion of fully satisfied users was down slightly but remains high. Telekom Slovenije remains the most frequently recalled provider of ICT solutions (growth by 11 points relative to the previous autumn), IT solutions and telecommunication services. It also maintains first place in terms of the overall selection of IT solutions, security solutions and telecommunication services.
Source: Valicon, Satisfaction amongst business users, November 2023.
we measure the satisfaction of visitors to points of sale, and satisfaction with contact centres and responsiveness to messages sent via email to [email protected]. The email channels received best rating last year, while other channels have room for improvement. Through sales standards and the continuous education for Telekom Slovenije’s advisors, we are improving the excellence of the user experience in all channels.
Globally, NPS is the most frequently used metric for monitoring the user experience, as it combines the indicator of a user’s willingness to recommend a company/product/service, user satisfaction, perception of user experience excellence and an expression of the user’s loyalty to a provider.
Telekom Slovenije takes measurements monthly for the most important touchpoints and twice a year for the users of fixed and mobile services. Telekom Slovenije ranks in the top third compared with the NPS of telecommunication operators on foreign markets.
Source: Telekom Slovenije, Transactional NPS, 2023.
NPS for user experience was above the target value at the majority of contact points during the first half of 2023. Somewhat lower results during the second half of the year were primarily the result of problems due to flooding and storms in northern and central Slovenia (our infrastructure was damaged, destroyed or flooded). Despite all challenges, our users still highlighted the quality and speed of the network and expressed satisfaction with the excellent and professional approach of advisors, who are always ready to advise and help.
TSmedia measures customer satisfaction using the research of online products with the help of web analytics (e.g. MOSS, which measures visits to Slovenian websites, the number of views, the number of visitors and bounce rate) and using online questionnaires and forms to collect users’ opinion regarding all products.
Avtenta measures satisfaction every two years, but no measurement was carried out in 2023.
GVO measures satisfaction regularly using NPS at contact points during simple installation and indoor installations at the users of the users of Telekom Slovenije’s services. NPS was above target values throughout 2023.
TSinpo carries out unstructured interviews with users once a year. Qualitative assessments of satisfaction were at the level recorded in previous years.
IPKO regularly monitors the user experience with the help of market research, social networks and internal quantitative studies. Measurements of satisfaction and NPS are carried out for fixed and mobile services. NPS (in the scope of brand strength research) was significantly higher in 2023 than the scores of other operators on the mobile services market, while the score on the fixed services market was also excellent.
IPKO also measures customer satisfaction using periodic questionnaires administered by an internal team. Measurements are carried out with users at points of sale, and with those who were in contact with the company via the call centre and field staff. The overall satisfaction score in the mobile segment was 4.0 on a scale of 1 to 5 (in 2022: 3.6). The users of fixed services gave IPKO a score of 3.9 (in 2022: 3.5).
The future development of the Telekom Slovenije Group will rely on highly qualified employees, the most advanced technologies, sustainable development and social responsibility. We aim to continue our long-term successful business operations through a balanced consideration of the economic, environmental, social and governance (ESG) aspects.
Guidelines for determining the priority areas of sustainability and operating within these areas are set out in the Telekom Slovenije Group’s Sustainable Business Policy. Specific areas of sustainable operations are defined in detail in sectoral rules, policies, codes and declarations.
Sustainable development and social responsibility are strategic decisions and commitments that we have made, and for which the Management Board, directors and all employees are responsible, in line with their competences and responsibilities. Sustainability is a process integrated into our business operations and business model. It enables us to manage the ESG impacts on our business in a responsible way. Through our core business – infrastructure, services and the latest technologies – we are supporting the development of Slovenia and the wider region into a digital and a people- and environment-friendly society.
The following roles and responsibilities for the effective governance of sustainable operations have been set out in the Sustainable Business Policy:
The key sustainability-related strategic objectives are set out as integral parts of the business strategy:
To achieve these ambitions and targets, we are focusing most heavily on the following projects and activities:
Social, economic and natural environments can have a major impact on our operations and our ability to achieve our strategic goals. Our operations can also have an impact on our stakeholders. This ‘double materiality’ is acknowledged every year with an analysis of stakeholders and an assessment of the materiality of the impacts. We defined stakeholder groups through various activities in previous years and included them in Telekom Slovenije’s Corporate Governance Policy, which we explain in more detail in point 8.1.3 Inclusion and participation of stakeholders. Through analysis, we prioritise our sustainability aspects, while striving to identify and understand the relevance of such topics for our stakeholders.
In September 2023, at a strategic workshop attended by 44 management staff and experts responsible for key business functions, we again conducted a materiality process and determined the double materiality of our sustainability-related topics, in line with the requirements of the European Sustainability Reporting Standards (ESRS) adopted in 2023. At the workshop, which took place under the auspices of the president of the Management Board and the member of the Management Board for sustainable operations, we defined the set of sustainability-related topics and assessed them from the point of view of impact materiality for the Telekom Slovenije Group.
We took into consideration the topics set out in the ESRS, the already established international GRI sustainability reporting standards, the SASB sustainability accounting standards for the ICT sector, good reporting practice in the ICT sector in Europe, and past (main) topics of the Telekom Slovenije Group. We assessed the financial impact using internally determined quantitative thresholds in relation to:
In the course of the process we identified the 18 most important sustainability-related topics and two specific topics with a financial impact on Soline, which operates outside the Group’s core business. We verified the impact of the topics on people, society and the environment by means of a survey in which 518 stakeholders took part. The list of topics and their double materiality are presented in the table below. The persons responsible for preparing the content of the annual report were also briefed on the results of the process and assessment of material topics at a workshop attended by 66 employees from Slovenian Group companies.
| Area of impacts | Sustainability-related topic | Impacts on the operations of the Telekom Slovenije Group (risks and opportunities)* | Impact on society, the environment and people* | Our objectives and efforts | Contribution to the achievement of SDG |
|---|---|---|---|---|---|
| Environmental impacts (E) | Climate change |
The Cyber Security and Resilience Centre is in charge of the cyber security of our systems, networks, services and users. It also provides cyber security services to other organisations, companies and events.
level is in line with the gender balance throughout the company as a whole.
• We earmark up to 0.3% of revenues a year for sponsorships and donations.
• By building new and updating the existing networks, and introducing the latest technologies, we provide users with premium and reliable services and connections.
• We will cover 99% of the Slovenian population with 5G technology by 2026.
• We will continue to connect an increasing number of Slovenian households to the fibre optic network owned by Telekom Slovenije until 2026.
• It is our goal to provide 10% of the over-65s in Slovenia with eCare and telemedicine services by 2030.
• We provide universal services in accordance with the Telecommunications Act.
• We implement measures for end-users from vulnerable groups.
We provide employees with excellent working conditions and fair pay for their work, and encourage and support professional growth and continuing education.
We devote considerable attention to protecting privacy, personal data and trade secrets. We provide employees and contractual partners with education and training in this area on an annual basis.
We do not allow forced labour or child labour to play any part in our activities or those of our suppliers. The Code of Ethics, the Code of Ethical Standards for Suppliers, and the Rules on Respect for Human Rights all prohibit such practices.
96
• We preserve natural and cultural heritage and biodiversity in accordance with the Plan on the Management of the Sečovlje Salina Nature Park.
*The values represent the level of the impact as established by the materiality analysis:
The key stakeholders of the Telekom Slovenije Group were defined in the Governance Policy of Telekom Slovenije, d.d. and include employees, shareholders and potential investors, users of our services, regulatory and state authorities, financial analysts and other financial publics, suppliers and other business partners, the media, and the local and wider communities. Through various approaches adapted to specific stakeholder groups, we create inclusive and long-term relationships with those groups and thus strengthen trust and cooperation.
Based on direct and indirect relations (research, data analyses, statistics, etc.), we identify mutual impacts and the interests of stakeholders.
Communication with stakeholders is open, balanced, proactive and reactive. We focus on the provision of accurate, relevant and clear messages.
| Stakeholders | What is most important to them? | How they are included and frequency of contact | Activities |
|---|---|---|---|
| Shareholders, analysts and |
We communicate regularly, proactively and comprehensively with existing and potential shareholders regarding the operations of the Telekom Slovenije Group.
We organised a General Meeting of Shareholders.
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;
We present users new services, the portfolio and other content relevant to them via numerous (physical and digital) channels.
cells for the needs of internal coverage.
A total of 100% of Group employees were included in education and training in 2023.
The annual report is prepared and coordinated by the Controlling and Corporate Communications organisational units. Data and information are captured with the help of structured questionnaires, the content of which is prepared by experts for specific areas from Telekom Slovenije Group companies. The financial report is compiled by the Finance and Accounting organisational unit.
Information regarding operations and indicators of sustainable operations in the annual report relates to the calendar year from 1 January to 31 December 2023. Reporting on sustainable content relates to the Telekom Slovenije Group, which comprises the parent company Telekom Slovenije, and the subsidiaries GVO, TSmedia, Soline, Avtenta, TSinpo and IPKO. Information on sustainability does not cover the operations of those subsidiaries abroad that do not have employees (and that therefore have no major sustainability-related impacts). These companies are SIOL Zagreb, SiOL Sarajevo, SIOL Podgorica, SIOL Skopje, SIOL Beograd, SIOL Prishtina and GVO Telekommunikation Germany. Financial reporting relates to the parent company and its subsidiaries, as explained in Note 5 in the Financial Report. Where standard reporting guidelines are not yet in place for the entire Group, we explain in each specific case whether the content applies only to the parent company or a specific Group company.
There were no significant changes to data from previous years or to reporting limitations, nor was there a change in the data disclosure methodology. Any minor changes and the reasons for them are explained in the notes.
Reporting on the operations of the Telekom Slovenije Group and Telekom Slovenije is carried out in line with the requirements of the International Financial Reporting Standards (IFRS) and national legislation (Companies Act – ZGD-1).
Information on sustainability, and therefore on our impacts and opportunities in the Environment, Social, Governance (ESG) and economic areas, are presented in a comprehensive manner in the annual report in accordance with the international Global Reporting Initiative (GRI) standards. This year, for the first time (albeit in a limited scope), we will report in accordance with the requirements of Directive (EU) 2022/2464 as regards corporate sustainability reporting (CSRD) and the European Sustainability Reporting Standards (C(2023)5303), which enter into force in 2024. We have been reporting in accordance with the GRI guidelines since 2009, while this report is compiled in accordance with the GRI’s newest standards (Universal Standards, 2021). We also take into account the previous generations of GRI recommendations for the ICT and IT sectors and the media. We also disclose in the annual report contributions to the sustainable development goals of the United Nations and compliance with certain indicators of the SASB (Sustainability Accounting Standards Board) standard for the ICT sector.
We report on sustainability mainly in the 8 Sustainable operations of the Telekom Slovenije Group section, as envisaged by the CSRD, although some information is included in other sections. The content of this information can be seen from the reference links to the GRI indicators and the overview GRI table. The inclusion of information on non-financial operations and the diversity of management and supervisory bodies is in line with the requirements of the Companies Act (ZGD-1L). When monitoring operations, we also take the Alternative Performance Measures (APM) into consideration, in accordance with the ESMA Guidelines.
The Telekom Slovenije Group operates mainly in the telecoms sector, where energy consumption has the biggest impact on the natural environment. We therefore pay greatest attention when controlling environmental impacts to energy efficiency and cleaner energy sources. As the manager of the Sečovlje Salina Nature Park, Soline has a major impact on coastal wetlands and biodiversity. Its activities and impacts are therefore reported in more detail in section 8.2.2 Biodiversity at Soline.
We control and manage the environmental impacts of our business processes through the established environmental management system certified to the ISO 14001 standard. We manage the field of energy through the efficient energy management system (EEMS), which has been certified to the requirements of the ISO 50001 standard. We have adopted an environmental statement and statement of the energy efficiency of Telekom Slovenije, d.d. We monitor progress in these areas by means of measurable indicators.
We invest carefully in efficient energy use measures and programmes and various initiatives to reduce carbon footprint, such as our own solar power plants and the purchase of electricity from low-carbon sources. We are incorporating the very latest, more energy-efficient active equipment into our network, and introducing the principles of the circular economy and sustainable mobility.
Our contributions to the green transition of the economy and of society as a whole include ICT services and solutions such as smart networks, smart buildings, smart logistics and industrial processes that can play an important role in considerably reducing global greenhouse gas emissions, thereby mitigating and preventing the effects of climate change.
We raise awareness about the importance of this area amongst employees through training, while we also encourage users to manage energy responsibly.
We involve ourselves in professional initiatives aimed at developing and communicating science-based positions on the impacts of the industry. We ensure sustainable operations and encourage the cooperation of all stakeholders. We monitor initiatives and respond to them promptly.
At the Telekom Slovenije Group, electricity consumption is responsible for the bulk of the carbon footprint under Scope 1 and 2. Under the strategic business plan, we will systematically reduce the impacts, with the aim of eliminating the impacts of Scope 1 and 2 by 2028.
Electricity is responsible for the biggest single share of our carbon footprint, followed by heating and the vehicle fleet. In accordance with the requirements and measures of the efficient energy use system in place (ISO 50001), in the last ten years we have managed to reduce our overall energy consumption by getting rid of older, energy-inefficient technologies (e.g. 3G) and updating technologies. We have been successfully reducing our overall consumption of energy for more than ten years. For the purpose of certifying the system, we meet conditions for the performance of energy audits by our own experts. This alone enables us to save at least EUR 40,000 a year. We are the leading company in Slovenia when it comes to internal energy audits, with more than 210 completed. We performed internal energy audits again in 2023 for all buildings for which the validity of the previous audit expired or where major interventions were planned.
| Telekom Slovenije Group | Telekom Slovenije | |||||
|---|---|---|---|---|---|---|
| 2023 | 2022 | Index 23/22 | 2023 | 2022 | Index 23/22 | |
| Electricity consumption (in GWh) | 87.1 | 90.0 | 97 | 68.6 | 71.7 | 96 |
| Electricity costs (in EUR thousand) | 22,828 | 14,028 | 163 | 20,727 | 12,327 | 168 |
| Fuel consumption for vehicle fleet (in litres) | 1,390,733 | 1,403,024 | 99 | 733,151 | 782,396 | 94 |
| Cost of fuel for vehicle fleet (in EUR thousand) | 1,935 | 1,975 | 98 | 983 | 1,117 | 88 |
| Cost of fuel for heating (in EUR thousand) | 935 | 834 | 112 | 900 | 802 | 112 |
| Production of own electricity from solar power plants (in MWh) | 496 | 263 | 189 | 371 | 239 | 155 |
Source: SAP; energy management system.
Group level and by 68% at Telekom Slovenije due to higher electricity prices. Other users, i.e. the lessees of our real estate, account for a fifth of electricity consumption. We built an additional solar electricity power plant in Slovenia so that the electricity generated from our own solar plants accounted for around half of one per cent of total electricity consumption in 2023 (approx. 371 kilowatt hours). A total of around 120,000 kilowatt hours of electricity was generated by the solar power plants in operation at IPKO in Kosovo.
At Telekom Slovenije in 2023, co-financing under the public call for the co-financing of the construction of new small installations for the generation of electricity using solar power (code: JR SE OVE 2021), which constitutes de minimis aid, was EUR 36,000.
Telekom Slovenije’s GemaLogic energy management system facilitates effective control over energy consumption, and includes 2,450 metering points, 85 locations with heating devices and more than 12 thousand data entities. We continuously upgrade and supplement the system through the development of the network.
Reducing overall consumption of electricity is our overriding energy objective. The energy management system is integrated into regular work processes. To that end, we have also set other environmental objectives (e.g. to improve the energy efficiency of the vehicle fleet, reduce noise and emissions into the atmosphere by modernising technological devices, etc.).
We met strategic and annual objectives relating to efficient energy consumption again in 2023. We reduced electricity consumption in the fixed segment of the network by optimising equipment and premises at functional locations. Despite effort to reduce consumption in connection with existing services, energy costs were higher in 2023 on account of significantly higher energy prices. Consumption will increase until 2026 on account of the extension of the 5G network. We intend to increase the number of own solar power plants considerably, as well as the quantity of energy produced by that source. We have also reduced consumption in the mobile sector on account of shutting down older technologies (e.g. use of 3G discontinued). In per-unit terms, 4G and 5G use less energy; however, they require more units (base stations) for the same coverage, which means electricity consumption will increase in the next two years.
Energy intensity is defined as the quotient between kWh consumed and net sales revenue.
We replaced old air conditioning units in several buildings with technologically more advanced and more energy-efficient units, and upgraded direct and alternating current systems in buildings in the fixed and mobile network with the aim of ensuring a continuous and back-up power supply.
In Kosovo, IPKO have taken a number of steps to reduce electricity consumption, including the installation of more energy-efficient air-conditioning equipment, the energy renovation of five branch offices with the replacement of conventional bulbs with LED bulbs, and the construction of additional solar power plants. At the end of 2023, IPKO had 175 kWp of solar collectors installed throughout the country.
In 2023 we stepped up our activities connected with the production of a decarbonisation strategy for the 2024–2030 period. For year-on-year comparisons and the tracking and achievement of the objectives, 2021 has been determined as the baseline year. The Telekom Slovenije Group’s Strategic Business Plan for 2024–2028, which was adopted at the end of 2023, sets the ambitious target of carbon neutrality under Scope 1 and 2 by 2028. In that period, we will focus heavily on securing cleaner electricity and building our own solar power plants. The positive impact of these measures on reducing the carbon footprint will become evident over the next few years.
We already increased the share of cleaner energy from low carbon sources in 2023, and made investments in our own solar power plants. Independently of this, we continued activities to further
31 GRI 302-1, SASB: TC-TL-130a.1
32 GRI 302-4
33 GRI 302-3
34 GRI 3-3, 305-1, 305-2, 305-3
| 2021 | 2022 | 2023 |
|---|---|---|
| 100 |
increase our energy efficiency, mainly by upgrading the network and actively managing our property and vehicle fleet. These activities will continue in 2024. We raised employees’ awareness of the importance of caring for the environment, saving and using energy efficiently, and behaving sustainably.
The carbon footprint was calculated in accordance with the methodology set out in the international Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard. We captured in the calculation the emission scopes, categories or activities presented below:
The most significant source of greenhouse gas emissions (GHG) is electricity consumption, which accounts for 83% of Scope 1 and 2 emissions.
| Emission category | GHG emissions in tonnes of CO2eq | Index | 2023 | 2022 | 23/22 |
|---|---|---|---|---|---|
| Scope 1 (direct emissions) | 2,443 | 2,618 | 93 | ||
| – S1-1: Stationary emissions (heating and generators) | 282 | 359 | 79 | ||
| – S1-2: Mobile emissions (work vehicles) | 1,865 | 1,996 | 93 | ||
| – S1-4: Fugitive emissions from HVAC and refrigeration systems (cooling technology) | 296 | 263 | 113 | ||
| Total Scope 2 (indirect emissions) | 21,764 | 24,124 | 90 | ||
| – S2-1: Indirect emissions from electricity consumption (location-based method) | 619 | 3,209 | 20 | ||
| – S2-2: Indirect emissions from electricity consumption (market-based method) | 19,489 | 18,860 | 103 | ||
| – S2-3: Indirect emissions from heat consumption (location-based method) | 1,105 |
| Scope | 2021 | 2022 | Index |
|---|---|---|---|
| Total Scope 1 and 2 | 24,207 | 26,742 | 91 |
| Carbon footprint (Scope 1 and 2) in CO2eq per employee | 11.62 | 12.72 | 91 |
| Carbon footprint (Scope 1 and 2) in CO2eq per sales revenue | 0.04 | 0.05 | 80 |
Under the GHG Protocol methodology, we reassessed Telekom Slovenije’s carbon footprint for 2021 and 2022 by using the energy supplier emission factors, which were published subsequent to those years and had not been collected at the time the 2022 annual report was published. The market-based method takes into account the last known emission factors obtained from energy suppliers over a two-year period. As the market-based method is used for 98% of electricity consumed, the impact of emission factors is crucial. By taking the new emission factors into account, Telekom Slovenije’s actual carbon footprint (Scope 1 and 2) actually fell by half relative to the baseline year of 2021.
Given the emission control factors set (carbon footprint (Scope 1+2) in t CO2eq per employee and t CO2eq per sale revenue), we can confirm a positive trend in the reduction of both indicators in comparison with the baseline year of 2021.
We have up to now included the following in non-mandatory reporting under Scope 3 (other indirect emissions): the consumption of drinking water, office paper, printed materials and other packaging, losses in internal electricity consumption, forwarded waste, business travel, overnight stays, employee commuting, the leasing of electric vehicles, work from home and assets leased to others (heating, electricity and drinking water in leased premises, and the consumption of electricity by CPE equipment at users).
| Emission category | Activity | 2023 | 2022 | Index |
|---|---|---|---|---|
| S3-1: Purchased goods and services | Consumption of drinking water, office paper, printed materials, and other |
| S3-3: Energy consumption not included in Scope 1 and 2 | Own electricity consumption | 1,016 | 1,077 | 94 |
|---|---|---|---|---|
| S3-5: Waste management | Waste forwarded to collection centres, waste water | 124 | 143 | 87 |
| S3-6: Business travel | Business travel (car and air transport) | 45 | 26 | 173 |
| S3-7: Employee commuting | Employee commuting (cars) | 1,751 | 1,662 | 105 |
| S3-8: Assets under lease | Electric vehicles under lease and work from home | 174 | 250 | 70 |
| S3-13: Leased assets | Heating, electricity and drinking water in leased premises, and the consumption of electricity by CPE equipment at users | 21,036 | 20,627 | 102 |
| Total Scope 3 (other indirect emissions) | 24,328 | 24,010 | 101 |
In the market-based method, we used the latest available emission factors set at the level of electricity supplier with regard to the structure of sources, as calculated by the electricity supplier. The most recent known and published supplier emission factors are for 2022, and were used in the calculation for 2023. Published emission factors for identified suppliers are used as market emission factors, while the location-based emission factor published in Annex III to the Rules on the Methods for Determining Energy Savings (Official Gazette of the Republic of Slovenia, No. 57/21) is used for remaining electricity consumption. The same approach is applied to energy for heating.
In 2023 we expanded the organisational boundaries of the monitoring of carbon footprint at the other companies in the Telekom Slovenije Group. An assessment of carbon footprint was made for Scope 1 and 2 for the main sources of emissions. The location-based method was used for electricity consumed.
GHG emissions in tonnes of CO2eq
| Index | Emission category | 2023 | 2022 | 23/22 | |
| Scope 1 (direct emissions) | 4,549 | 4,561 | 100 | ||
| – S1-1: Stationary emissions (heating) | 594 | 619 | 96 | ||
| – S1-2: Mobile emissions (work vehicles) | 3,574 | 3,646 | 98 | ||
| – S1-4: Fugitive emissions from HVAC and refrigeration systems (cooling technology) | 381 | 295 | 129 | ||
| Total Scope 2 (indirect emissions) | 44,712 | 47,188 | 95 | ||
| – S2-1: Indirect emissions from electricity consumption (location-based method) | 23,415 | 26,114 | 90 | ||
| – S2-2: Indirect emissions from electricity consumption (market-based method) | 19,641 | 19,019 | 103 | ||
| – S2-3: Indirect emissions from heat consumption (location-based method) | 1,105 | 537 | 206 | ||
| – S2-4: Indirect emissions from heat consumption (market-based method) | 551 | 1,518 | 36 | ||
| Total Scope 1 and 2 | 49,261 | 51,749 | 95 |
Carbon footprint (Scope 1 and 2) in CO2eq per sales revenue
| 0.07 | 0.08 | 88 |
|---|---|---|
We are also pursuing a sustainable development strategy in the management of the vehicle fleet by including more electric vehicles in the fleet and providing the necessary support infrastructure. We have installed charging points at all of our larger locations. We encourage employees to make use of the electric vehicle sharing services provided by external suppliers.
The Telekom Slovenije Group had a total of 1,010 vehicles in 2023, including 24 electric vehicles (one of which is a train with two wagons for transporting 50 passengers around the Sečovlje Salina Nature Park) and ten hybrid vehicles. Telekom Slovenije had a total of 599 vehicles, including eight electric and ten hybrid. The Group reduced fuel consumption by 1.5% relative to 2022, while Telekom Slovenije reduced consumption by 6.3%. The table below illustrates the number of vehicles with internal combustion engines (diesel and petrol) and total fuel consumption.
| Telekom Slovenije Group | Telekom Slovenije | 2023 | 2022 | Index 2023 / 2022 | 2023 | 2022 | Index 2023 / 2022 |
|---|---|---|---|---|---|---|---|
| Number of vehicles as at 31 December | 986 | 1,013 | 97 | 591 | 620 | 95 | |
| Fuel consumption in litres (diesel) | 1,058,550 | 1,078,621 | 98 | 488,164 | 526,606 | 93 | |
| Fuel consumption in litres (petrol) | 332,183 | 332,915 | 100 | 244,987 | 255,790 | 96 |
in terms of cost and space, create a pleasant and productive working environment, and reduce the carbon footprint.
Sanitary water does not represent an important environmental impact at Telekom Slovenije and other Group companies, as they are not major consumers of water and do not need water to perform their core activities. Telekom Slovenije used a total of 14,729 m3 of sanitary water at its key locations in 2023.
When the mobile network (4G and 5G) is expanded or upgraded, we commission EMR measurements from certified institutions in Slovenia. A total of 112 EMR measurements were performed for Telekom Slovenije in 2023; this number included 74 measurements for the 5G network. While radiation increased slightly at the base stations that we have upgraded, the results showed that the measured values in areas accessible to people were, even in the worst case, more than four times lower than the strict limit values applied in Slovenia. They are also ten times lower than the values set out in the ICNIRP’s guidelines and the EU’s recommendations. Average exposure was significantly lower and amounted to just a few percent of the thresholds for level I radiation protection areas in accordance with the Decree on Electromagnetic Radiation in the Natural and Living Environment.
All reports on EMR measurements are submitted to the Slovenian Environment Agency, where data regarding environmental impacts are stored and accessible by the general public. In 2023 we recorded three requests from the environmental and spatial planning inspectorate to provide documentation on EMR for the LJ – Brdo, LJ – Trnovo and LJ – Zadobrova ELES base stations. All documentation was delivered by the prescribed deadlines, with no comments forthcoming from the inspectorate. We also held discussions with/gave presentations on EMR to local communities on six occasions.
In cooperation with Forum EMS, people can read more about radiation and other environmental impacts on the https://forum-ems.si/ website. In the scope of the e-card EMS project, Forum EMS developed a mobile application that allows the general public to access data regarding harmful impacts on the environment due to high-frequency EMR and the effect of exposure due to the use of mobile phones: https://inis.si/karta/. IPKO also performs EMR measurements when new base stations are installed. These measurements were not required in 2023.
We are aware of the importance of environmental impact, which is why we handle all products and materials that enter our business processes in a responsible manner. We are introducing circular economy principles to an ever-greater extent with the aim of closing the 360° sustainability loop. We therefore try to process used equipment into a reusable product before it becomes waste. For several years now, TSinpo has carefully checked and cleaned up CPE equipment (modems, routers, TV interfaces) returned by our users, and readied them for reuse. We thus extend the useful life of equipment, increase cost-effectiveness and reduce the volume of electronic waste. Telekom Slovenije has a certified environmental management system (ISO 14001), which is an important tool for ensuring a responsible approach to the environment. When we carry out excavation work for the construction of the cable network, the excavated soil is mainly used for backfilling the cable route. Any surplus earth that remains is classed as construction waste.
All types of waste produced by our companies in Slovenia are collected in areas specifically set aside for the purpose (eco-islands), then sent for onward processing to authorised and certified partners. These partners ensure that, in compliance with the relevant legislation, the equipment is broken down into its raw materials as far as possible (the circular economy principle), while those parts that cannot be reused are destroyed in such a way as to have the least possible impact on the environment. As Kosovo does not yet have a regulated system of separate waste collection, all the waste produced is collected by authorised local utility companies.
Telekom Slovenije forwarded 3,097 tonnes of waste in 2023, a decrease of 20% relative to the previous year (due to significantly less construction waste, which accounts for 85% of all waste at the Company level). The majority of forwarded waste is recycled or reused. Earth excavated during the construction of the network is used as material to fill trenches. All waste electrical and electronic equipment is dismantled, which yields reusable plastic (18%) and metal (78%). Only around 3% of this waste is incinerated. Remaining waste is also forwarded for material recovery (around 87%), while only 13% is forwarded for energy recovery.
licences and that comply with the highest environmental standards in accordance with European legislation.
Users can also dispose of waste packaging from purchased products, used mobile phones, tablets, computers, etc. at Telekom centres.
| Type of waste (in tonnes)* | Telekom Slovenije Group | Telekom Slovenije | ||||
|---|---|---|---|---|---|---|
| 2023 | 2022 | Index 23/22 | 2023 | 2022 | Index 23/22 | |
| Waste electrical and electronic equipment, and waste batteries and metals | 227 | 278 | 82 | 227 | 278 | 82 |
| Waste packaging | 187 | 98 | 191 | 139 | 96 | 145 |
| Mixed municipal waste | 707 | 744 | 95 | 94 | 141 | 67 |
| Construction waste | 2,637 | 3,341 | 79 | 2,637 | 3,335 | 79 |
| TOTAL | 4,103 | 6,710 | 61 | 3,097 | 3,850 | 80 |
also digitalises incoming documents, so that more than 75% of those documents are already digitalised. A total of 57.4% of invoices were received in electronic form in 2023, an increase relative to 2022.
Users who have given us their consent only receive invoices for our services in electronic form. We also encourage users to receive electronic invoices for the purpose of electronic banking. Telekom Slovenije consumed 13 tonnes of office paper in 2023, which was the same quantity as in 2022. In addition to office materials, we also used paper for invoice printing purposes, the printing of catalogues and other printed material, and for cardboard packaging and paper bags. We therefore used a total of 128.8 tonnes of paper, which was a fall of 26% on the 2022 figure. We collected waste paper and used it to make planners for employees, and for business events and education/training. TSmedia also uses e-invoices, as well as electronic forms for procurement and the reservation of company vehicles, while orders are sent to suppliers electronically. The telephone directory, which is accessible on DVD and on the itis.si website, is also issued electronically. We increased the percentage of invoices issued in electronic form by four percentage points in one year.
We are seeing damage to network infrastructure from the extreme weather events associated with climate change. These risks are prevented in investments in new networks through underground construction. In August 2023 a large part of Slovenia was gripped by catastrophic floods that flooded, damaged or cut our cable infrastructure (backbone and access sections). We provided fixed-network subscribers with a 100% discount on their monthly subscription, or wrote off their contractual obligations. We also made donations to post-flood clean-up operations, more details of which can be found in section 8.3.1 Support to local communities. Climate change is an opportunity for revenue, mainly from the development and use of ICT solutions for climate change observation or mitigation. Our portfolio of services includes smart infrastructure (remote meter reading, smart car parks, energy management of buildings and smart cities). For more information, see section 7.6 Development of the network, technologies and services.
Sečovlje Salina Nature Park (SSNP) and the traditional harvesting of salt from salt fields are a special part of the cultural heritage of Mediterranean Slovenia, and help to preserve the biodiversity of the area. The Soline company has managed the SSNP, which is a national protected area, since 2003, when it signed a concession contract with the state. In 2023 an agreement was signed with the Ministry of Natural Resources and Spatial Planning on the management of the SSNP for the next 10-year period, i.e. until 2033. Key administrative objectives were set out in the Sečovlje Salina Nature Park management plan for the period 2011 to 2021, which was adopted by the Slovenian government. The management plan for 2023–2033 was still undergoing interdepartmental coordination and approval at the end of the year.
The most important objective of managing the SSNP is the preservation of the wetland characteristics of the saltpan ecosystem, its biodiversity and the economic and cultural values of the region. Soline submits an annual plan and a report on the management of the park to the Ministry of Natural Resources and Spatial Planning for approval. Every activity that exceeds the normal impacts on the environment is approved in advance by the department responsible for the protection of nature and cultural heritage.
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.
In the scope of the climate fund, we continued the renovation of 3,300 meters of embankments in the Lera salt production area in 2023, and installed new sluice gates for controlling seawater in the Fontanigge area. We have invested around EUR 355,000 in measures to manage the impacts of climate change on the ecosystems of the Sečovlje and Strunjan saltpans and other wetlands. We are therefore helping to realise the EU’s climate change mitigation and adaptation objectives. We also completed the introduction of traffic-calming measures in the Lera and Fontanigge areas, and laid out the entrance to the first Fontanigge protected area.
We completed the renovation of four salt workers’ houses in the Fontanigge area, which were damaged by floods in 2019 and 2020. Our goal is to become the first net-zero protected area in Slovenia. With the implementation of the CARS-OUT! project, we discontinued access to the park by motor vehicles in 2017 and ensured environmentally acceptable visits to the park using electric vehicles. In 2023 we continued to replace diesel vehicles with electric, and procured an additional electric vehicle for taking employees, renters of berths, the elderly and disabled persons to the SSNP.
The saltpan ecosystem is specific to the coastal wetlands. Salt production does not produce any environmentally harmful by-products, as the entire process relies on 700-year-old processes. The aforementioned concession agreement requires us to continue producing salt using traditional processes, as the latter are crucial for maintaining the cultural landscape and biodiversity. The use of the civil works and traffic infrastructure is kept to a minimum.
Research confirms that invasive exotic species have not been introduced to the saltpans due to the production process. The presence and number of such species are not yet so high as to have significant consequences for ecosystems or communities. The number of species in the Sečovlje Salina Nature Park has not fallen over the last ten years; on the contrary, we have recorded continuous growth in populations. Additional measures aimed at the state of the hydrological regime have led to an increase in the number of natural habitats for which halophilus plants are characteristic. No major changes in ecological processes were seen in 2023.
There are no endangered 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.
The Sečovlje Saltpans are included in the European Natura 2000 network. The region is recognised as one of two that are of national importance to the migration of birds according to the Bird Directive, while the saltpans are defined as a wetland of international importance according to the Ramsar Convention.
The saltpans are best known for birds, as they are a large body of water that birds use for food, overnight shelter or wintering during their migration. Certain species nest in the saltpans.
We were visited by greater flamingoes (Phoenicopterus roseus) in 2023, on two occasions in larger numbers. The largest flock, 210 birds in total, arrived on 20 November.
The inclusion of the local community in the raising of awareness and the preservation of cultural heritage is crucial. The local community is included in the management of the park through its participation in the Sečovlje Salina Nature Park Committee. This cooperation also takes place through the organisation of joint on-site events and presentations. The SSNP recorded 48,081 visitors in 2023, with 42,837 visiting the Lera area. The Fontanigge area recorded 5,244 visitors.
Data regarding electricity and fuel consumption in the table below are already included in data for the Group as a whole. They are disclosed here separately in order to comprehensively present environmental impacts in the SSNP. We reduced our fuel and electricity consumption relative to the previous year. The consumption of natural gas, which we use for the additional heating of pool water, was up due to unfavourable conditions for the operations of the Lepa Vida Thalasso Spa.
Sea water from the production of salt is returned to the sea uncontaminated. We segregate the salt pan area into crystallisation basins, salt water tanks and evaporation basins for salt production. We collect water at high tide and thicken it for 21 days, while salt is produced daily. The seawater capture cycle is repeated weekly during the salt production season. Brine is gradually released back into the sea following salt production.
Only used sanitary water that is discharged into the public sewerage network is treated as waste water. We used 2,100 litres of sea water in 2023 for the functioning of the Lepa Vida Thalasso Spa, in particular for the pool and salt-water showers, in which the use of soap and shampoo is forbidden. The sea water that is used for showering and the rinsing of salt-pan mud from the body passes through two collectors to separate mud from the water, which is discharged back into the sea. The sea water used in the swimming pool flows to a collection tank during filtering, where it is dechlorinated and passes to a drainage system for its return to the sea.
Waste is consistently separated and disposed of by the competent municipal department.
| 2023 | 2022 | Index 23/22 | |
|---|---|---|---|
| Consumption of natural gas (in m3) | 3,669 | 2,992 | 123 |
| Consumption of electricity (in MWh) | 396 | 418 | 95 |
| Consumption of fuel (in litres) | 29,849 | 31,494 | 95 |
| Consumption of sanitary water (in m3) | 2,805 | 2,279 | 123 |
| Consumption of sea water (in m3) | 169,000 | 173,300 | 98 |
| - salt production | 166,900 | 171,100 | 98 |
| - Thalasso Spa Lepa Vida | 2,100 |
47 GRI 2-27
48 GRI 3-3, 303-1, 303-2
The Telekom Slovenije Group takes its responsibilities towards vulnerable groups and the local communities in which it operates very seriously. We provide assistance to humanitarian organisations in the form of expertise and financial and other resources, and support sporting, cultural and educational activities. We adopted a new sponsorship and donations strategy in 2023 – one that, among other things, highlights the connections between applicants and our values, integrity and drive for sustainability. We have set up a structured and targeted sponsorship and donations portfolio with defined key initiatives, and introduced a standard electronic form for collecting and processing applicants’ details in a more comprehensive manner. Applications are processed by an internal committee in accordance with the Rules on the Treatment and Approval of Sponsorships and Donations.
Last year was marked by the assistance we provided to those most affected by the floods, to whom we gave EUR 600,000: EUR 350,000 in the form of services and EUR 250,000 in the form of financial donations.
We donated EUR 100,000 to 20 volunteer firefighting brigades with whom teams from Telekom Slovenije and GVO worked most closely in affected areas in extremely difficult conditions. A donation of EUR 100,000 was given to Radio 1’s ‘Preprosto blizu’ foundation, which ensured that the funds went to those who most needed them, and EUR 50,000 to the Moste–Polje chapter of the Slovenian Friends of Youth Association for the ‘Veriga dobrih ljudi’ (Chain of Good People) and ‘Botrstvo’ (Sponsorship) projects, under which Telekom Slovenije sponsors 20 children from socially disadvantaged backgrounds.
The floods also damaged the homes of 39 Telekom Slovenije Group employees. All of them received solidarity assistance, with employees donating almost EUR 20,000 more via the Heart Foundation, which is a Telekom Slovenije humanitarian organisation.
To mark international Childhood Cancer Awareness Month, we placed golden bows at the entrance to Telekom Slovenije office buildings, with people being invited to wear them in support of these young heroes. In collaboration with the ‘Junaki 3. nadstropja’ (Heroes of the Third Floor) association, we prepared articles for in-house education and training.
To mark Breast Cancer Awareness Month in October, we partnered with Samsung for the 16th consecutive year and gave EUR 10,000 to the Slovenian chapter of the Europa Donna association. In November, which is men’s cancer awareness month, we donated EUR 5,000 to the Slovenian Oncology Association for Men (OnkoMan), together with the company Xiaomi. To Facebook users and employees, we stressed the importance of prevention and of not delaying a visit to the doctor.
We carried out several sponsorship activities to strengthen awareness of our support for widening access to and involvement in sport for broader groups. Along with our sponsorship of the Tour of Slovenia, we organised the NEO Tour event for recreational cyclists. This enabled them to use the Strava app to compare their results with those of the top cyclists appearing in the Tour. One of the Tour of Slovenia stages attracted 1,589 recreational cyclists. We organised a competition that gave 20 families who are part of the Loyalty Programme the exclusive chance to watch the climbing world cup event in Koper in September.
The Telekom Slovenije Group earmarked a total of EUR 2.4 million or 0.3% of its sales revenues for sponsorships and donations in 2023.
Our activities in 2023 included support to the following organisations:
We supported the following initiatives:
We also provided help to individuals who required it to fund treatment, purchase a wheelchair or an adapted vehicle, etc.
We support the following educational-scientific projects, conferences and professional meetings:
In the field of culture, we support a range of different types of events:
Telekom Slovenije is one of the biggest supporters of Slovenian athletes and Slovenian sport. We supported various associations, clubs and events in 2023:
IPKO sponsors the Trepca basketball club from Mitrovica and Prishtina football club.
The Telekom Slovenije Group complies with high standards of marketing ethics in marketing and advertising processes. Telekom Slovenije pursues those standards as a signatory of the code of conduct for providers of electronic communication services for the protection of users, the code of mobile operators and internet providers aimed at user protection and the ETNO Corporate Responsibility Charter.
To that end, we comply with the Media Act and the Slovenian Advertising Code (SOC), and follow the recommendations of AKOS in the area of customer care. We are signatories to the Commitment to Introduce Sustainable Standards in the Advertising Industry, as we are keenly aware of the responsibilities and roles we have in advertising.
In market communication, we self-regulate our advertising, meaning that we hold to the relevant principles and rules when creating advertising material. Compliance with the Slovenian Advertising Code is assessed by the Advertising Tribunal of the Slovenian Advertising Chamber.
Two complaints were placed before the tribunal in relation to Telekom Slovenije advertising in 2023, both by the competitor company A1 Slovenija. One of the complaints related to the message/slogan ‘Join us in a safe and the fastest network’. The Advertising Tribunal adjudged that the message did not comply with all the provisions of the Slovenian Advertising Code. We responded immediately to the judgment and brought the advertising in question into compliance with the provisions of the code. The tribunal therefore opted not to impose a penalty on Telekom Slovenije. The second complaint involved the message/slogan ‘Yes, unlimited. With the new NAJ packages’. In this case the Advertising Tribunal ruled that the complaint was without foundation.
We also received a request from the Market Inspectorate regarding the inspection proceedings conducted on account of a possible infringement of the Consumer Protection Act – specifically, whether Telekom Slovenije had engaged in an unfair commercial practice when advertising the ‘Balkan’ package as an additional option. The complaint had been made by a consumer, who stated that he had not been properly notified (or notified at all) of the restrictions of the package – specifically, that he had not been made aware that he was ‘connected to the wrong operator’ when roaming, which led him to incur additional charges for which he was billed. The inspectorate examined the advertising for the ‘Balkan’ package and established that it was clear from the advertisement and the sales offer that the quantity of service units and data transfer applied to certain selected operators abroad. Customers engage the ‘Balkan’ package via text message, and are themselves responsible for setting or choosing the right network. Since any automatic changes of network are outside the operator’s control, the inspectorate ruled that no irregularity had occurred.
TSmedia and IPKO also comply with general professional advertising codes. There were no breaches in the area of market communication at other Telekom Slovenije Group companies.
In 2023 we responded to 410,083 calls, 164,594 emails and 12,354 calls via video identification. We are also available to users every day on social media and via chat (14,232 instances of contact in 2023), and made 100,980 outgoing calls to users.
In 2023 we upgraded our direct communication with users to capture key points in the customer lifecycle by comprehensively updating our automated communications. We therefore conducted 15% more automated campaigns and contacted 62% more users through such campaigns than the year before. We conducted 28% more SMS campaigns. These campaigns were targeted by means of personalised messages.
provision, as they inform us via the NPS survey, where we have exceeded an index of 82.
We are particularly proud of how smoothly operations went at the Nordic Ski World Championships in Planica and the European Youth Summer Olympic Festival in Maribor.
Last year was marked by extraordinary and extreme weather events. Lightning strikes were the biggest factor in the increased need to respond to service incidents in 2023, with a 93% year-on-year increase in the number of instances between June and August.
Telekom Slovenije users also suffered damage on account of August’s floods and storms, which required us to replace terminal equipment and re-establish connections. In the Mengeš area, we replaced all terminal equipment in a matter of days as a result of the destruction of the functional location and the consequent change to the technical solution.
We continued with the development of applications for field technicians. The development trend is towards the use of artificial intelligence and associated tools.
The digital adviser Maks recorded 39,275 contacts with users, an increase of 2% relative to the previous year. Contacts on the My Telekom online portal and mobile app accounted for the bulk of contacts (84%), followed by contacts via text message (11%) and Facebook Messenger (5%). Transaction NPS at the DSM contact point was exceeded.
We issued 5.3 million invoices for telecommunication services in 2023 (excluding non-standard invoices and credit notes). There were approximately 200,000 fewer invoices issued in comparison with 2022. This was partly the result of billing for several services on a joint invoice. Users contested 0.63% of all invoices issued, with the number of complaints increasing by 0.1 percentage points between 2022 and 2023.
We encourage our customers to use electronic invoicing. In 2023 we increased the number of invoices issued in one of the available electronic formats by four percentage points (to 39% of all invoices).
Telekom Slovenije provides the most advanced ICT services and content in both urban and rural areas, and thus helps bridge the digital divide in society. We cover 99.57% of the Slovenian population with the mobile telephony signal, while a large portion of territory is covered by broadband internet access and fixed telephony.
Fixed services are provided to users via the mobile network in areas where setting up a fixed connection is not possible. We are speeding up the construction of the latest fibre-optic network, and are already able to offer it to 459,000 Slovenian households.
| 2G/GSM | 4G/LTE | 5G |
|---|---|---|
| 99.57% | 97.52% | 60.70% |
Through our services, we contribute to the digitalisation of society, and ensure responsible and broad access to services. To that end, we provide specific vulnerable groups special solutions and a tailored offer.
52 GRI PA10
53 GRI PA1, PA2, SDG 9
| User group | Offer or project |
|---|---|
| Children | * Parents can restrict their children’s access to websites using the ‘Varen splet’ (Safe Web) application on the My Telekom portal. The portal has pre-set content categories that prevent access to inappropriate content. |
| * Mobi and Moja številka – provides children with free calls from a mobile number to a selected number, and the option of sharing data allowances. | |
| * Moja prva pogodba (My First Contract) is available at Telekom Slovenije points of sale, and enables children and parents/guardians to draft (and sign) a plan on how to use their mobile phone or other mobile device responsibly and in moderation. | |
| * On the NEO platform, we carefully curate the cartoons and other content available in the Children’s Park. We therefore provide children with a ‘carefree area’, as they can only watch content appropriate to their age. Parents and guardians may also limit access to other content using a PIN code. | |
| * NEO also provides parents and guardians with the option of limiting the playing of games to those appropriate to their child’s age. NEO games are labelled in accordance with the PEGI (Pan-European Game Information) system. | |
| * In collaboration with the Mladinska knjiga publishing house, we have designed the ‘Učim se’ (I Learn) mobile app for children aged between 6 and 12. Through the interactive online puzzles, quizzes and games available on the app, children can develop logical thinking skills, strengthen their vocabulary, consolidate their mathematical knowledge and get to know the world. | |
| * Users of IPKO’s fixed services can choose between three parental control options for limiting what children see online. | |
| Retirees and older users | - The eCare service for safer living in the home environment is available to the elderly and their family members. |
| - Through the Safe and Connected at Home project, we are working with Slovenian municipalities to facilitate access to eCare, with those municipalities subsidising the use of the aforementioned service by their citizens. | |
| Disabled persons, and the deaf and hearing impaired | * Priority is given to disabled persons in terms of connections to the public communications network and the elimination of faults. |
| * With a valid disability status certificate, disabled persons are entitled to a discount of EUR 2 on their monthly subscription fee for fixed packages. | |
| * The portfolio includes the Gluhi A mobile package for the deaf and hearing impaired, which facilitates worry-free communication. | |
| * We have facilitated subtitles in the scope of teletext services for the deaf and hearing-impaired users of the NEO platform. | |
| Police and firefighters | - Volunteer protection and rescue organisations were offered mobile service packages with no subscription fee. The members of fire fighter and police associations and trade unions and their immediate family members are entitled to a discount on the monthly subscription fee for mobile packages. |
| All users |
• We ensure the protection of the home network and mobile devices of all users through the Varen splet (Safe Web) service.
• The free ‘Strela alarm’ (Lightning Alarm) service is available to subscribers to mobile and fixed Telekom Slovenije services. It warns users in advance of a potential lightning strike in the area in which their fixed connection is located.
• In the ‘Digitalno starševstvo’ (Digital Parenting) section of the website, we provide users with advice on how to use communication devices and services safely.
• The range of products includes simple mobile phones for older and technologically less-skilled users.
• We provide Slovenian hospitals and health centres telemedicine services, through which medical staff can monitor the health of patients remotely, without hospitalisation or visiting a clinic (a patient’s vital functions are monitored in the home and wirelessly transferred to a doctor at a clinic or hospital).
• The ‘Brezskrbni’ (Worry-Free) travel insurance product can be switched on automatically when the user arrives abroad and into the domain of a foreign operator. The user only pays according to the actual number of days abroad.
• We collect used electronic devices and mobile phones at points of sale. By bringing in their old mobile phones or tablets for exchange, users can reduce the prices of new devices. We also ensure the safe disposal of those old devices.
• We are encouraging our customers to move over to electronic invoicing.
• We offered our services to help businesses and individuals affected by the floods that hit Slovenia in August 2023. We provided businesses in the affected areas with free-of-charge use of server infrastructure in the cloud (virtual servers, data back-up), free connectivity, free use of network infrastructure (routers, switches, access points) and infrastructure equipment management services, and free technical support and assistance in managing or maintaining ICT infrastructure at the business’s location. To make communication easier, we provided unlimited mobile data transfer to all of our mobile subscribers in the affected areas and those who were providing assistance in the field.
The gifts for business partners, customers and employees that we prepare at the end of the year traditionally relate to the business activities in which Telekom Slovenije is involved, with particular care and attention given to sustainability. We prepared a special collection of end-of-year gifts for 2023 which we named ‘Vedno na boljše’ (Always for the Better) and which arose as a close collaboration between Telekom Slovenije, Soline and TSinpo. The collection includes Soline products, which are the fruit of a partnership with local suppliers. The gift packaging was also sustainable. The cardboard sleeves manufactured at the TSinpo company are made from 100% recycled cardboard. The lids, which are made from LDPE, are also environment-friendly. We gave employees planners made from the waste paper we collected at Telekom Slovenije throughout the year. Together with the Želva sheltered workshop, we transformed cloth face masks that were no longer being used into cute and attractive coin purses.
We devote a large number of our activities to promoting health and well-being at the workplace and to preventing burnout. We focus particularly heavily on sustainable management, diversity promotion, flexibility, hybrid forms of work and flexible working hours, all with the aim of making it easier for staff to strike a proper work-life balance. We also carry out a large number of activities aimed at promoting healthy lifestyles.
In accordance with our Code of Ethics, we take a zero-tolerance approach to any and all forms of bullying, harassment or discrimination on the basis of gender, race, skin colour, age, state of health, religious, political or other conviction, national and social origin, financial status, sexual orientation or other personal circumstances. Individual Group companies have appropriate mechanisms in place for identifying potential cases of discrimination, and for taking action in such cases. For more on the Telekom Slovenije Group’s Code of Ethics, see section 8.4.1 Compliance and integrity.
As in previous years, no Telekom Slovenije Group company received any complaints regarding discrimination in 2023.
The Telekom Slovenije Group had a total of 3,253 employees at the end of 2023, 2,767 of them in Slovenia. The total number of employees was down by 0.6% relative to the year before. This was primarily because of the termination of employment for business reasons and retirements at Telekom Slovenije.
At 7.6%, employee turnover within the Telekom Slovenije Group was up by 0.2 percentage points relative to 2022.
| Telekom Slovenije Group | Telekom Slovenije | Other companies in Slovenia | IPKO | ||
|---|---|---|---|---|---|
| Number of employees | 3,253 | 2,083 | 684 | 486 | |
| Type of employment | Permanent employment | 2,937 | 2,051 | 606 | 280 |
| Temporary employment |
| Men | Women | ||||
|---|---|---|---|---|---|
| Total | 2,178 | 1,075 | |||
| Working time | Full-time | 3,192 | 2,046 | 660 | 486 |
| Part-time (due to disability, parenthood, etc.) | 61 | 37 | 24 | 0 |
| Employees covered by collective agreement | Employees outside the collective agreement system | |
|---|---|---|
| Total | 3,191 | 62 |
| Men | 2,038 | 45 |
| Women | 675 | 9 |
| Unknown | 478 | 8 |
| Level | Count |
|---|---|
| Levels I to IV | 273 |
| Level V | 933 |
| Level VI | 667 |
| Level VII | 1,208 |
| Level VIII | 172 |
A total of 98.1% of Telekom Slovenije Group employees have an employment contract based on a collective agreement. This was roughly the same proportion as 2022 (98%). The remaining 1.9% of employees have contracts outside the collective bargaining system. These are primarily employees in management positions.
Men accounted for 67% of all Telekom Slovenije Group employees in 2023, and women for 33%. Men are in the majority among employees in Slovenia, while the gender ratio in favour of men is slightly lower at IPKO (55.5%).
| Age group | Telekom Slovenije | Other companies in Slovenia | IPKO |
|---|---|---|---|
| New hires | |||
| Departures |
| 144 | 68 | 50 | 18 | 38 | 20 | 56 | 30 |
|---|---|---|---|---|---|---|---|
| 68 | 75 | 28 | 24 | 24 | 16 | 16 | 35 |
|---|---|---|---|---|---|---|---|
| 35 | 35 | 24 | 22 | 9 | 10 | 2 | 3 |
|---|---|---|---|---|---|---|---|
| 13 | 74 | 5 | 52 | 6 | 22 | 2 | 0 |
|---|---|---|---|---|---|---|---|
| 0 | 17 | 0 | 11 | 0 | 6 | 0 | 0 |
|---|---|---|---|---|---|---|---|
| 260 | 269 | 107 | 127 | 77 | 74 | 76 | 68 |
|---|---|---|---|---|---|---|---|
Note: A portion of the new hires have been carried over into the next year.
models, the very latest services and new business opportunities. Our education and development policy helps us realise our strategic objectives, while systematically planned education and training, knowledge management and the transfer of knowledge between colleagues ensures the growth and development of the company and its employees, sustainable business operations and the best possible user experience. The training programme offers employees a choice of more than 300 training courses in various fields, and is upgraded every year with new, updated content. Our Knowledge Transfer Competence Centre also pays considerable attention to the internal transfer of knowledge.
In 2023 we again received a TOP investor in education certificate for our responsible HR management and promotion of employee development, making us an above-average organisation in terms of investment in employee education and training. We pay particular attention to educating and training managers, key and high potential staff, our knowledge ambassadors, and internal coaches and trainers. Employee development and training plans are drawn up as part of the annual development interviews, which define the purpose and scope of the training. We assess the quality and benefits of training through the measurement of participant satisfaction using electronic questionnaires. Telekom Slovenije introduced a new Learning Activities module into the Effective Team HR information system in 2023 that provides employees and managers with continuous access to the management of education and training needs.
There is a great deal of interest amongst employees for professional content and soft skills.
| Telekom Slovenije Group | 2023 | 2022 | Index 23/22 | |||
|---|---|---|---|---|---|---|
| Number of participants in education and training | Number of education and training hours | Proportion of employees involved in education and training* | ||||
| Telekom Slovenije | 3,382 | 85,430 | 100% | 2,962 | 88,586 | 100% |
| Index 23/22 | 114 | 96 | 99 | 99 |
| 90.8% | 110 | 100% | 100% | 100 | |
|---|---|---|---|---|---|
| 26 | 27.2 | 96 | 32.1 | 32.2 | 100 |
*The proportion of employees involved in education and training also includes individuals who took part in education and training during the year but were no longer employed by the Telekom Slovenije Group as at 31 December 2023.
Four percent fewer hours of education and training were carried out at the Telekom Slovenije Group level in 2023, while the number of hours as a per-employee average remained at the same level as in the previous two years at Telekom Slovenije. The number of hours of education and training provided remotely has continued to fall since the end of the Covid-19 period, meaning that the number of in-person hours has risen.
Employees in technology and sales were most active, with 61% of them engaging in some form of education or training.
| Employment category | Telekom Slovenije Group | Telekom Slovenije | 2023 | 2022 | Index 23/22 | ||
|---|---|---|---|---|---|---|---|
| Technology and sales | 52,124 | 55,932 | 93 | 42,894 | 46,356 | 93 | |
| Administration | 10,808 | 9,914 | 109 | 9,630 | 9,043 | 106 | |
| Team leaders | 8,779 | 7,875 | 111 | 7,740 | 6,713 | 115 | |
| Middle management | 5,952 |
The bulk of the education and training undergone by Telekom Slovenije Group employees was in occupational health and safety and in the maintenance and protection of health, followed by changes to legislation and the development of business skills. We paid considerable attention to education and training in the areas of information security and personal data protection, and the professional development of managers.
We published 192 online courses on the Znam! e-training portal, which was just over a fifth of all education and training content at Telekom Slovenije. The portal is accessible to all Telekom Slovenije, TSmedia, Avtenta and TSinpo employees, as well as to our authorised agents. We also published recordings of BrihtaKlepet video discussions on the portal in 2023; these are short presentations of our products, services, projects and innovations. This is among the most popular content on the portal.
In addition to the education and training programmes we carry out ourselves, we also encourage employees to continue their formal education, providing them with funding for studying while working and paid leave to prepare for exams and other study commitments. At the end of 2023, a total of 29 employees had contracts with the Telekom Slovenije Group to improve their educational qualifications (23 at Telekom Slovenije and six at GVO).
Through the advanced S.M.A.R.T. training and development programme, Telekom Slovenije is building four key elements in contact with the users of its services: a uniform approach, the raising of values, the development of competences and team work. We take a consistent and systematic approach to improving the knowledge and skills of those employees who are in contact with users of our services (customer advisers, field technicians, sales staff, dispatch centre staff) and to strengthening their competences.
skills development, interaction and sharing of experiences. We raise awareness of the importance of employees passing knowledge on to their colleagues via different pathways, such as the induction process, presentations at meetings, documentation (document repository), informal communication, teamwork and joint projects in which the sharing of ideas and experiences is encouraged, and the sharing of good practice.
Telekom Slovenije had more than 130 in-house lecturers at the end of 2023. Every year they are responsible for around half of all training workshops organised for staff. We are also intensively engaged in developing the mentoring system, which welcomed 70 new colleagues in 2023.
Workplaces today contain people of different generations with different experiences, knowledge and responses to professional challenges. Their values, convictions and expectations must be aligned if they are to work together successfully. This is a major challenge. In encouraging the structured transfer of knowledge and intergenerational cooperation, we focus on mentoring and on work by in-house lecturers.
Our aim is to recruit the best secondary school and university students, primarily in strategically important areas, such as ICT, multimedia, cloud services, user interfaces, cyber security, etc. To this end, Telekom Slovenije provides secondary school and university students with practical training and education opportunities. We identify the best as candidates for employment.
We provided practical training and education opportunities to 74 secondary school and university students in 2023. For the fifth consecutive year, we awarded company scholarships (ten new scholarships for the 2023/2024 academic year); this gives a total of 23 active scholarship holders in 2023.
We organise team events to strengthen connections between colleagues. There were eight such events in 2023, and they brought together just under 160 colleagues from different organisational units and different generations via a series of activities. The events are coordinated by an in-house team of animators.
Telekom Slovenije’s system of key and high potential employees includes individuals who contribute an above-average share to the achievement of the Company’s objectives, who have highly developed competences and who are keen to develop further. We have identified 9% of employees as key and high potential employees, in three groups:
This is a continuous process in which we develop employee potentials, prepare successors, ensure the transfer of critical knowledge, give those employees priority in the recruitment process for more demanding positions, and strive to retain them at the Company, all through carefully planned training.
Together with our employees we laid the foundations of the employer brand in 2019 with our employer commitment Co-creating the digital future of Slovenia. In 2023 we continued activities related to commitment, and asked our employees to tell us how they viewed Telekom Slovenije as an employer.
We also strengthen the employer brand through various events, by cooperating with schools, faculties and research institutions, providing company scholarships, engaging guest lecturers, and so on. In 2023, as part of a partnership signed with the careers centre at University of Ljubljana’s School of Economics and Business, we opened a teaching room bearing the Telekom Slovenije name. This type of branding helps us raise student’s awareness of Telekom Slovenije as a potential employer.
A large number of activities to build the employer brand also take place in the digital environment, mainly through LinkedIn. We organised the first TRIP (Telekom Education and Development Programme) in 2023. This was an event spanning several days, and brought together secondary school, post-secondary and higher education students interested in the field of cyber security. We will hold this event with different themes every year, with the aim of getting to know young people and outlining employment opportunities and other forms of collaboration available at Telekom Slovenije.
activities covering areas such as the protection of health, ergonomics, the work environment, working hours, the nature of work, and career and personal development. In 2023 we again focused on health and well-being, and organised the first experiential workshop on the challenges of retirement. The aim of the workshop was to create a safe, relaxed environment in which colleagues who were due to retire could get together, reawaken a sense of hope, and express their wishes and aspirations for the period to come.
Telekom Slovenije aims to create an organisational culture of integration, cooperation, trust and responsibility. Activities are carried out with an emphasis on mutual cooperation and on the promotion of innovativeness and creativity.
The Telekom Slovenije Group measures organisational vitality (ORVI), generally every two years. The measurements examine organisational climate, employee satisfaction and employee commitment. They were carried out by all subsidiaries in 2023 (by two of them for the first time), and will take place at Telekom Slovenije in 2024.
A total of 87.6% of GVO employees took part in the organisational vitality measurement study, which was a rise of 16.5% on the previous study. The ORVI index, which includes responsiveness, the work environment, systems, operational management, personal views and commitment, was 3.59 (down by 0.03 compared with 2022).
The response among employees at Avtenta was 88%, which was a fall of 5.8% on 2021. The ORVI index was 3.36, or 0.25 down on the 2021 figure.
A total of 84.2% of IPKO employees took part in the study, which was 3.1% more than in 2021. The ORVI index was 3.79, or 0.08% higher than the 2021 figure.
Measurements of organisational vitality were carried out at TSinpo and TSmedia for the first time in 2023. At TSinpo, 90.7% of employees took part and the ORVI index was 3.64, while at TSmedia, 86.4% of employees took part (ORVI index of 3.48).
The Telekom Slovenije Group systematically carries out activities that aim to have a significant positive impact on employee motivation; this includes a precisely structured system of monetary and non-monetary bonuses that are allocated in accordance with the collective agreement and other bylaws. We also carry out a large number of activities aimed at securing a working environment that motivates and incentivises staff; they include flexible forms of work, the focusing of special attention on vulnerable groups of workers, and the organisation of events and social gatherings.
Individual remuneration depends on an assessment of the achievement of personal objectives (stimulation), and may be paid to employees twice a year. Sales staff with personal sales goals are given performance-related bonuses on a quarterly basis, while non-monetary forms of remuneration are largely related to our activities (VALÚ credit notes, gift certificates for Soline, etc.).
We also provide employees with benefits that include additional medical examinations, payments to the second pension pillar, preventive health treatment and flexible working hours.
The basis for collective bonuses is predefined, expected results. We pay a year-end bonus on the basis of operating results or if an employee exceeds the goals they have been set. All Group companies in Slovenia paid out a Christmas bonus in 2023.
Full-time and temporary employees enjoy the same benefits, except the payment of voluntary pension insurance premiums, to which new employees in Slovenia are entitled only after one year of employment. The premium for employees who have been employed by their respective company for at least one year is paid by Telekom Slovenije (95% of employees), GVO (91% of employees), TSmedia (96% of employees), Avtenta (81% of employees) and TSinpo (98% of employees).
We adhere to the principle of equal pay for equal work, or work of equal value, regardless of gender. A Telekom Slovenije Group employee’s base salary is equivalent to the value of the wage grade for a particular position for which an employment contract has been concluded, and is not dependent on gender, location, affiliation or activity.
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The lowest monthly salary paid to employees in companies in Slovenia is equal to the minimum wage (at the Soline company), but is higher than the national minimum wage in other companies. IPKO pays salaries that are 36.4% higher than the minimum wage in Kosovo. Sixty-three percent of IPKO’s senior management come from the local area.
A total of 126 Telekom Slovenije employees took part in blood donation campaigns in 2023, along with 18 from GVO, six from Soline, three from TSinpo, three from TSmedia and one from Avtenta. Some of our colleagues are also active members of civil protection and relief units.
The Telekom Slovenije Group has a well-established system of collaboration and cooperation with universities, faculties and secondary schools. This is because we are acutely aware of the constant need for expertise in fields such as multimedia, cloud applications, user interfaces and cyber security, to complement classic telecommunications and ICT services. Telekom Slovenije provides partner support to the Multimedia study programme at the University of Ljubljana’s Faculty of Electrical Engineering and Faculty of Computer and Information Science. We actively collaborate with the Telecommunications Laboratory at the University of Ljubljana’s Faculty of Electrical Engineering, the Faculty of Computer and Information Science, the School Centre for Postal Services, Economics and Telecommunications, and the Faculty of Security Sciences. We provide guest lecturers and take part at themed events at these institutions. We regularly organise meetings for students in Telekom Slovenije’s premises, where we present work content, best practices and the technologies with which we work. We work with pupils and students through compulsory practical training programmes and scholarships, and supervise undergraduate theses. IPKO also has partnerships in place, and provides internships for students from a number of different faculties, including RIT Kosovo (formerly the American University in Kosovo), Dardania College and the University of Prizren, the University of Pristina (Technical Faculty), Riinvest College and UBT College.
Telekom Slovenije conducts appraisal interviews twice a year with all employees covered by the collective agreement and with employees under individual contracts who are not first- and second-level directors. Most subsidiaries conduct appraisal and development interviews once a year. The overall assessment of work performance comprises an assessment of the achievement of objectives and an assessment of competences. We define an individual’s development activities using a model of competences based on our values. We systematically monitor the development of competences, and develop them in response to current and future opportunities and needs.
Employees with a personal sales plan have the achievement of their sales objectives monitored, and are provided with performance-related pay on a quarterly basis. Using the Predictive Index tool, we also evaluate employees’ development potential, which forms the basis for further development in their current post and also in terms of their future career.
Telekom Slovenije collects employees’ innovative proposals and ideas via Brihta, a digital collection site for ideas. It has in place an established procedure for gaining a comprehensive overview of proposals, from submission to potential implementation or feedback, with innovation mentors playing an important role. Employees receive practical awards for useful ideas. Ideas that become innovations with higher added value may also be rewarded financially. We also receive ideas from employees through the organisation of events such as internal inter-team events (TIMO), Brihtalnice (brainstorming workshops based on the so-called brainwriting method) and BrihtaLive events (all-day creative events). We have also set up additional, specific-purpose spaces, called ‘BrihtaPlac’, at
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locations throughout Slovenia for the organisation of these events and the promotion of creative and innovative thinking. In 2023 we introduced a new set of activities, ‘BrihtaKlepet’; these are short video interviews with employees that present our products, services, solutions, projects, innovation, best practices and biggest achievements. Employees at other Group companies can also put forward ideas and proposals in line with the internal procedures in place at those companies.
In accordance with the Workers’ Participation in Management Act, we cooperate constructively with the works councils of Telekom Slovenije, GVO and TSmedia, and maintain constant social dialogue with trade union representatives (notification, joint consultation, issuing of consent, etc.).
The Telekom Slovenije Works Council comprises 17 members and is chaired by Dušan Pišek. It held nine ordinary sessions and four correspondence sessions in 2023.
Members of the Management Board of the company regularly briefed the Works Council on current issues and the periodic operating results. Sessions of the Works Council were also attended by member of the Management Board and Workers’ Director, Špela Fortin, who reported on activities orally and in writing. The Works Council provided continuous information regarding the implementation of measures and initiatives adopted at its sessions. The Works Council also carried out regular annual training in accordance with its work plan.
At the Telekom Slovenije Group level, we organise events with employees, give gifts to employees’ first-graders, employees celebrating work anniversaries and newborns, organise holiday day care services for employees’ children, and support Telekom Slovenije’s pensioners clubs. In 2023 the Management Board of the company presented the Group’s strategic business plan to Group employees for the 2024–2028 period at locations around Slovenia.
Employees may join the TSsport sports club, which enables employees to participate in recreational activities and national Telekom Slovenije Group championships in various sports. The club provides employees affordable offers for different branches of sports. During 2023, the club organised championships in skiing, badminton, table tennis, running, beach volleyball, sailing, golf, nine-pin bowling, standard bowling, shooting, tennis and basketball. It also organised bowling outings, a golfing course for beginners, a footgolf course, a course for boat operators, a VHF GMDSS course, and a self-defence course for women and employees’ children.
Guided distance Pilates courses are available, and IPKO employees can take part in daily yoga exercises at work.
We manage the field of occupational health and safety in accordance with the legislative requirements set out for all employees and for each segment separately. We implemented all key measures relating to occupational health and safety, and fire protection in 2023. We took regular measurements of environmental conditions and lighting in the work environment for all locations where this was deemed necessary. The process of identifying dangers associated with safe work was carried out at three levels: via regular occupational safety training, regular on-site inspections and various project groups.
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.
| 2023 | 2022 | Index 23/22 | |
|---|---|---|---|
| Number of injuries | 31 | 35 | 89 |
| Number of working days lost | 1,712 | 1,637 | 105 |
| Number of working hours lost | 13,534 | 12,992 | 104 |
| Number of medical examinations | 1,165 | 1,501 | 78 |
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).
Telekom Slovenije organises preventive medical examinations for all employees and for employees at other Slovenian Group companies in accordance with the law. To that end, medical doctors inspect work areas, working conditions and work processes at the Company as necessary. Based on those inspections and specific identified health indicators, they propose measures to improve the situation. Occupational medical services are accessible via preliminary, periodic or control examinations. We organised vaccinations against tick-borne meningoencephalitis for employees working in forests (or where so stipulated by the risk assessment), while we raise the awareness of employees in Slovenia about flu vaccinations.
75 GRI 3-3, IO3, SDG 8
76 GRI 403-2
77 GRI 403-5
78 GRI 403-1, 403-8
79 GRI 403-2, 403-4
| 253 | 212 | 119 |
|---|---|---|
| 988 | 1,289 | 77 |
|---|---|---|
| 0 | 0 | 0 |
|---|---|---|
At the Telekom Slovenije Group, the system for identifying occupational diseases comprises regular preventive medical checks. We have not so far identified any employees with high levels of occupational disease.
Injuries caused by slips were the most common single type of injury in 2023 (nine instances), followed by cuts caused by tools and collisions with objects.
Fire safety rules and evacuation and fire plans are in place in all of our facilities. These are reviewed and updated to reflect any major changes. Fire safety training is carried out as part of occupational safety training. Fire extinguishers and hydrant networks were inspected and serviced in all buildings in 2023, while several evacuation drills were conducted. At our facilities throughout Slovenia, we carried out regular maintenance and service operations of active fire-protection systems, and drew up fire-risk assessments for our facilities in line with the new legislation. We recorded only one minor fire at Telekom Slovenije in 2023 (in connection with a boiler).
We make every effort to ensure that our employees operate in a safe working environment, maintain their health at work, and take care of their own health at work and outside it. Telekom Slovenije notifies employees about additional preventive medical examinations, vaccinations against various diseases and current health content via the internal ‘Modro jabolko’ (Wise Apple) portal. We promote a healthy lifestyle by publishing various articles and information about physical activity and a healthy diet. At the beginning of every year, we publish a schedule of additional medical examinations that employees may sign up for. A total of 843 additional examinations were carried out in 2023. TSmedia encourages employees to be active with a weekly online exercise class.
Activities aimed at managing stress and preventing burnout are carried out at Telekom Slovenije within the ‘Živijo, stres!’ (Hello, Stress!) project, as part of which we also prepare online training with a variety of experts, regular internal educational workshops and topical articles on the intranet (active breaks, food and nutrition, etc.). We also organised a smaller number of anti-stress workshops, and reintroduced preventive health recreation programmes. The special ‘Modri telefon’ (Wise Telephone) project, which provides employees with the opportunity to talk to a psychologist, has been very well received. There is also a great deal of useful information and advice about healthy lifestyles on a special intranet portal.
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employees of Slovenian Telekom Slovenije Group companies who have lost a parent or who are seriously ill and require special treatment. In 2023 a total of 1,187 employees made monthly contributions to the fund, with Telekom Slovenije adding EUR 15,000 to it at the end of the year. Employees can make monthly donations of EUR 2, EUR 4, EUR 6, EUR 8 or EUR 10 to the Heart Foundation, and can also donate via text messages, in the form of a one-time donation or periodic contribution. We used the monthly donations to help 45 children in 2023. We also helped three seriously ill children via one-time donations.
In 2023 we organised our first ‘Heart Climb’ to raise funds on the occasion of World Heart Day. This is an event at which employees register to run or walk up the 11-storey Telekom Slovenije tower at Cigaletova 15 in Ljubljana. The company donated EUR 100 to the Heart Foundation for every participant. A total of 115 colleagues from the Slovenian companies in the Group took part in the event.
Parental leave is one of the indicators included in the measures connected with awarding of a Socially Responsible Employer Certificate. Employees who are entitled to parental leave exercise the right in full, which is confirmation of our support for a good work-life balance. While mothers take the bulk of parental leave, fathers also take leave to care for their child in the early months. Employees return to their jobs following the end of parental leave, as adopted measures provide opportunities that make it easier to find the right work-life balance.
| Telekom Slovenije | 2023 | 2022 | 2023 | 2022 |
|---|---|---|---|---|
| Number of employees on parental leave | 62 | 73 | 21 | 21 |
| of whom: women | 51 | 54 | 20 | 17 |
| men | 11 | 19 | 1 | 4 |
| Employees who returned to work following parental leave | 52 | 54 | 21 | 21 |
| proportion in % | 84 | 74 | 100 | 100 |
| - of whom: women | 41 | 36 | 20 | 17 |
Our acquisition of the advanced Socially Responsible Employer certificate is testament to the success of our efforts to create a working environment that fosters responsibility, equality and a good work-life balance for our employees. This is reflected in the numerous measures relating to organisational management, efficient energy consumption, reducing carbon footprint, promoting employee health and safety, intergenerational cooperation and education, and the promotion of diversity and equality. The certificate is proof of our commitment to sustainability and social responsibility, which are things that help us consolidate our reputation in the wider community and make a significant contribution to building the Telekom Slovenije brand.
With the adoption of measures connected with the full Family-Friendly Company certificate, we are also continuing our activities to ensure that our employees enjoy a decent work-life balance, with a focus on developing flexible working practices and flexible forms of work.
The Telekom Slovenije Group facilitates the continued regular employment of employees with work limitations resulting from disabilities. Group companies have a total of 92 employees of various disability levels (2.8% of all employees). Of those persons, 41.3% are full-time workers.
Telekom Slovenije and GVO regularly exceed the legally prescribed quota of employees with disabilities. The quota for the information and communications sector is 2%, while the quota for the construction sector is 3%. These companies are therefore entitled to compensation in the amount of 20% of the minimum monthly wage for each employee with a disability over the prescribed quota. Although IPKO has two employees with disabilities, Kosovo has no national remuneration system as described above.
TSinpo, which facilitates the employment and training of people with disabilities and the adaptation of workplaces to their needs, plays a special role in operations involving workers with disabilities. The company recruits people with disabilities from within the Group and from the labour market. It had 44 employees in 2023, 27 of whom were workers with disabilities.
TSinpo produces and markets cardboard sleeves and packaging under its own brand. The products are made from 100% recycled cardboard, and the lids are also made from recyclable LDPE. TSinpo also provides Telekom Slovenije with various support services, such as the control, refurbishing and distribution of telecommunications terminal equipment, the technical preparation of telecommunication works, the compilation of sales and other packages, the distribution of marketing materials, the preparation and distribution of materials for end-users, the maintenance of the documentary material archive and a correspondence contact centre.
and that they are continuously briefed on the latest trends in the portfolio and on developments at the level of the Company and Group. We use a range of different communication channels. The main communication tool at Telekom Slovenije is the intranet which, in addition to providing information about developments at the Company and Group, facilitates the safe transfer of internal documents, such as manuals, rules, instructions, forms, bylaws, etc. It also provides different options for the use of multimedia content, while we include employees to a large extent in the creation of that content. We also communicate with employees via Microsoft Teams, digital screens installed at various locations around the country, email and electronic newsletters, and also at different events such as workshops, online seminars, training with internal and external experts, councils and miscellaneous internal events. In 2023 we organised Telekom Slovenije Group Day and a New Year’s gathering for staff. The Management Board presented the Group’s strategy at locations around Slovenia, and there were numerous other informal activities. Every Group company has in place its own method of communicating with employees. All activities for employees are linked by the #connected platform.
Telekom Slovenije encourages its employees to be active digital ambassadors. We linked employees through the Sociabble digital platform with the aim of making work easier and more efficient, and fostering closer cooperation and ties between staff. Any employee who creates and shares our positive stories on social networks can become a ‘digital ambassador’ of the Company. This further helps to co-create Telekom Slovenije’s reputation, its corporate brand and its ‘employer brand’.
The procurement policies of all Group companies are coordinated and standardised, and include strategic policies and principles for ensuring that the procurement process is transparent. The procurement function at Telekom Slovenije is largely centralised, which enables the cost-effective, efficient and transparent use of resources and funds. The procurement process is standardised and enables potential suppliers to be treated equally. The selection of the most appropriate supplier is carried out in accordance with an offer assessment methodology. Part of the procurement policy is also focused on encouraging companies to work together on joint procurement operations. We maintain high standards of integrity in procurement procedures, and build long-term success and a good reputation by engaging honestly, fairly and transparently with our suppliers.
The key challenges facing the procurement function in 2023 were linked to the effects of the energy crisis, inflation and the rise in the cost of living, all of which led to a rise in operating costs. Uncertain geopolitical and economic conditions also had an adverse effect on procurement.
We responded to these adverse conditions by adjusting our business processes, conducting additional negotiations with suppliers and adjusting our specifications. We called on suppliers to further optimise costs, while we searched for replacements and new and alternative suppliers. Having an efficient procurement process in place enabled us to secure a stable and reliable supply of energy despite the crisis and the government’s regulatory interventions. Our agile procurement processes also enabled us to respond swiftly and to put equipment in place to ensure that operations were not disrupted during the summer storms and floods. We ensured continuous supply through continuous communication with suppliers, regular monitoring of possible impacts on the timely provision of supply, adequate contractual safeguards, and the on-time identification of risks and of the measures required. With the exception of a few minor delays that did not affect operations, we did not encounter any major supply-related problems.
The supply chain comprises the suppliers of goods and services, operators and agents in the sale of goods and the conclusion of subscriptions. Telekom Slovenije cooperates with 2,706 suppliers from 39 countries. A total of 96.27% of suppliers are from the European Union.
We control risks in the supply chain by carrying out a thorough examination of the risks attendant upon working with a new supplier. This helps us prevent high costs from being incurred or reputation lost.
We regularly review existing strategic suppliers, assess them and define measures for improving cooperation. With other (existing) suppliers, we assess the risks of working with them as required and in accordance with the methodology adopted at the Company.
We have in place an efficient system for verifying the acceptability of a supplier. Before entering into a procurement transaction of greater value with a new business partner, we obtain information on that partner by means of a questionnaire. This information then provides the basis for a due diligence check.
We have a BPM process in place to support procurement processes. We are planning to upgrade the existing solution next year with a portal designed, among other things, for communication with suppliers.
In our commitments with suppliers, we make a point of emphasising the importance of sustainability. Via the general procurement terms and conditions, which are generally an integral part of any order, or mandatory contractual clauses, we bind our suppliers to the principles of social and environmental responsibility. We are also developing, with our supply chain partners, innovative approaches to cooperation to achieve common sustainability objectives. At Telekom Slovenije we engage in paperless operations as far as possible, and encourage suppliers to do the same.
Our sustainability-oriented procurement policy helps us to contribute to positive changes in the global environment and society. Our objective in the coming years is therefore to increase transparency along the whole supply chain. In 2024 we will introduce a questionnaire to enable us to monitor the environmental, social and governance (ESG) aspects of the business practices of our strategic suppliers.
The basis for ensuring compliance is the appropriate conduct of all Telekom Slovenije Group employees. Employees are bound by the Code of Ethics of the Telekom Slovenije Group (Code of Ethics) to conduct themselves in accordance with the law, other regulations and bylaws, and to behave responsibly towards the companies of the Group, their colleagues, customers, business partners, the public and other stakeholders.
The Code of Ethics commits us to engage in fair and transparent operations, protect personal data, respect human rights, protect information and business data, avoid conflicts of interest and the pursuit of personal interests, prevent corrupt acts, money laundering and the restriction of competition, and report dishonest conduct. The content of the Code of Ethics is reviewed and updated where necessary by the Compliance and Integrity Officer, in cooperation with the organisational units and companies of the Telekom Slovenije Group. We present the importance of ethical and business standards for successful operations regularly to employees during training. The Code of Ethics is published on the Company’s website. In 2023 we again prepared a compulsory online training course on the key elements of the Code of Ethics.
and effective measures in the event of identified breaches. The following have been appointed for specific areas of compliance at Telekom Slovenije:
These officers perform their functions independently and autonomously, and report directly to the Management Board, the Telekom Slovenije Supervisory Board’s Audit Committee and the Telekom Slovenije Supervisory Board on a quarterly basis with regard to activities performed and measures adopted to mitigate risks in the area of compliance.
The officers worked mainly in the following areas in 2023:
The Whistleblowing Committee, which is chaired by the Compliance and Integrity Officer, dealt with reports of irregularities in various different fields of operation in 2023.
Telekom Slovenije constantly strengthens its resilience to corrupt and other unlawful and unethical conduct, and creates an environment of trust within the organisation. Every year we update the Integrity Plan of Telekom Slovenije, which defines and assesses the risks, reviews the internal controls and measures in place, and determines any further activities and measures to be taken to ensure a high level of compliance and integrity within the Company. An integrity plan will also be put in place at subsidiaries in 2024.
The Code of Conduct for the Suppliers of the Telekom Slovenije Group has established clear expectations of the standards of conduct that we wish to see from our suppliers. It addresses issues such as human rights, occupational health and safety, environmental protection and business ethics, thereby strengthening our control over the supply chain, enabling us to maintain high ethical standards and reducing the risks connected with our own operations. The provisions of the code are incorporated into our business relationships with suppliers. We also carry out sample checks to ensure that their operations are compliant.
The Rules Governing Conflicts of Interest define the activities expected of employees to prevent the occurrence of conflicts of interest and manage them when they arise. Employees in key positions must be particularly mindful of the policies and procedures in place, which is why they are required to sign an annual declaration stating that they have no conflicts of interest. All notifications and declarations by employees are processed and assessed by the Compliance Committee. Regarding contacts and links with representatives of national and local government authorities and holders of public authorisations, we have clearly defined rules on lawful lobbying. We report any potential lobbying links to the Commission for the Prevention of Corruption as a matter of course.
The Telekom Slovenije Group has rules, procedures and internal controls in place for managing the risks of transactions with related parties. The Group complies with the provisions of the applicable legislation on transactions with related parties. The internal processes define the cases where the prior approval of the Supervisory Board must be sought for concluding transactions with related parties, and the cases where transactions of that type must be made public. We have a system in place for checking the existence of such transactions, although no instances of transactions that would have required the prior approval of the Supervisory Board arose in 2023.
In relation to the acceptance and offering of gifts and invitations to events, we have rules, guidelines and procedures that support ethical, lawful business operations that adhere to the principles of integrity. We thus ensure the unbiased, objective and professional performance of work tasks and adoption of business decisions.
Employees are obliged to report every identified or potential breach of the Code of Ethics or other internal acts, as well as unlawful, unethical and otherwise questionable conduct. We regularly inform employees about the importance of such disclosures. Employees and other stakeholders may file reports via various channels, where confidentiality is ensured. The system for receiving, handling and investigating reports is set out in the Rules on the Management of Reports and Protection of Whistleblowers. Those rules also govern the protection of whistleblowers and the prohibition of retaliatory measures. The Whistleblowing Committee is responsible for the receipt, handling and investigation of complaints, and proposes the adoption of measures when breaches are identified, and for reporting its findings to the Management Board, Audit Committee and Supervisory Board. In 2023 we supplemented the rules with the requirements set out in the Whistleblower Protection Act (ZZPri).
Subsidiaries with 50 or more employees are required to appoint one or more trustees from among the workforce to deal with whistleblower reports. We dealt with a total of five reports from internal and external whistleblowers in 2023. Investigations relating to one of the reports were still ongoing as at 31 December 2023. No infringements were found in any of the other cases. In one case the Whistleblowing Committee made recommendations for improving processes.
No cases of corruption were identified and confirmed within the Telekom Slovenije Group in 2023.
The Telekom Slovenije Group manages potential risks associated with corruption in sponsorship and donation activities through the Rules on the Treatment and Approval of Sponsorships and Donations. Those rules are in line with the Code of Ethics, which states that Group companies may not use financial resources or in any other way support political parties.
The Compliance and Integrity Officer checked the compliance of four sponsorship contracts in 2023, in each case finding that no infringements had been committed in the course of the performance of the contractual provisions.
We follow rules in the area of competition law in our operations. With the Rules on Ensuring Compliance with Competition Law, we define a competition law framework, prohibited conduct and how employees should conduct themselves in business activities. In 2023 we drafted amendments to the rules to reflect the organisational changes at the Company. We also and at the same time strengthened the role of the Compliance and Integrity Officer within processes. By regularly informing and training employees, we contribute additionally to the management of such risks.
We pay a great deal of attention to safeguarding privacy, personal data and trade secrets, as this helps us to maintain the high level of trust enjoyed by the Telekom Slovenije Group and its services. Because of the field in which we do business and the quantity and type of data that we process (from our users as well as from other stakeholders), we are exposed to risks in connection with personal data protection. We therefore continuously monitor our operations with existing services, as well as with the development of new services or the introduction of new technologies. We also monitor the wider environment in which we operate. Taking due account of the risks, we update and upgrade our processes, procedures, measures and internal controls to ensure that personal data is protected.
89 GRI 2-15
In response to changes in the regulatory environment, to good practices and to our own experiences, we updated key documents of the Company dealing with data protection.
Through regular training, we ensure the necessary level of awareness and knowledge of employees and authorised agents regarding the processing of personal data and information security.
In 2023 the supervisory authorities (AKOS and the Information Commissioner) initiated three supervisory procedures in relation to personal and traffic data protection at Telekom Slovenije. No irregularities were detected in the two procedures completed. The third procedure had not yet been completed as at 31 December 2023.
Telekom Slovenije received 123 privacy-related reports from individuals (users of services, employees) in 2023. The growth in the number of incidents resulting from abuse in the conclusion of contracts involving the purchase of a device in previous years was halted in 2023 with the introduction of additional mechanisms for verifying user data when contracts are being concluded. The number of such incidents therefore remains comparable with the previous year. We track the performance of the mechanisms in place on an ongoing basis, and take steps to remedy the consequences and prevent any future infringements. We ceased working with two authorised sellers because of improper data handling and for other reasons.
In 2023 IPKO received a complaint regarding a possible breach of a user’s privacy. We did not record any losses in 2023 from legal proceedings as the result of events in connection with privacy or the protection of the personal data of individuals.
Telekom Slovenije is bound to comply with the Prevention of Money Laundering and Terrorist Financing Act, as it provides payment services (VALÚ Moneta) and electronic money issuing services (VALÚ), and also transacts in own real estate.
To prevent money laundering and terrorist financing, we conduct the prescribed know-your-customer measures, which include customer due diligence when entering into a business relationship and the monitoring of customers’ transactions in accordance with regulations. In accordance with a Banka Slovenije request, we are also verifying whether payment services and electronic money issuing services are rendered in connection with persons against whom restrictive measures have been imposed as a result of the war in Ukraine. We did not identify any such transactions in 2023, nor did we identify any transactions involving the suspicion of money laundering or terrorist financing.
The Telekom Slovenije Group organises regular education, training, workshops and e-learning on the subject of compliance for employees and authorised agents. We also inform employees of these programmes via the intranet or by email.
In 2023 Telekom Slovenije employees undertook a total of 994 hours of education and training in the field of personal data protection and the handling of confidential data, 592 hours in the field of information (cyber) security and social engineering, and 291 hours in the detection and prevention of money laundering and terrorist financing, and the prevention of corruption and conflicts of interest.
Telekom Slovenije Group employees undertook 5,991 hours of education and training in safety culture/personal data protection in 2023.
Online courses on getting to know the Code of Ethics and on respect for human rights were organised in 2023. Both courses were compulsory for employees.
Telekom Slovenije published 263 proactive transaction announcements in accordance with the ZDIJZ in 2023, and processed nine new requests for access to information. Employees at Telekom Slovenije have an internal portal at their disposal with all relevant information. Contact data for the submission of requests for electronic access to information of a public nature can also be found on the websites of Telekom Slovenije and subsidiaries.
No new proceedings were initiated against Telekom Slovenije or its subsidiaries in 2023 in response to a potential breach of competition protection rules. One set of proceedings in this area from previous years is under way before the Competition Protection Agency (AVK). The outcome is still pending. The AVK halted one set of proceedings.
The Telekom Slovenije Group is aware that respect for human rights helps to create a positive working environment in which employees feel respected, safe and equal. We ensure that human rights are respected at all levels of our business.
At work we are committed to tolerance, mutual respect and respect for basic human rights. All of these principles are firmly embedded within the Telekom Slovenije Group’s Code of Ethics. We have also addressed respect for human rights in detail in the Rules on respect for human rights. Those rules provide guidance on how to identify, prevent and rectify possible cases of failure to respect human rights in the workplace, and define procedures and measures to ensure that they are respected. Complaints by employees who believe that their human rights have been violated or who identify a violation of human rights are received and dealt with by the Human Rights Officer, who is a member of the Management Board (Workers’ Director). Among other things, her role is to establish and monitor control mechanisms and manage preventive measures in the area of human rights. We received no reports of violations in this area in 2023.
Telekom Slovenije is a signatory of the Commitment to respect human rights in the course of operations, which is part of the National Action Plan of the Republic of Slovenia on the Respect of Human Rights in Business. In 2023 we focused on carrying out the measures we identified in the course of the due diligence process we applied to the field of human rights in 2022. We also prepared some online courses to give employees a thorough understanding of human rights, including their origin and meaning. Employees also refreshed their knowledge of the procedures and mechanisms used at the Company to ensure that human rights are respected.
We also expect our suppliers to respect human rights, and commit them to doing so through the Code of Conduct for the Suppliers of the Telekom Slovenije Group, which is incorporated into our business relationships. No breaches of the Code of Conduct were identified in 2023.
Telekom Slovenije Group operates in accordance with tax law in respect of taxes. Operations involving tax-related risks are unacceptable. We have in place internal controls and procedures in accordance with the Methodology on the Self-Assessment of Internal Controls and Reporting, which ensures proper tax treatment of business events.
The internal act Tax Strategy and Tax Management within the Telekom Slovenije Group regulates the tax policy, the management of tax risks and transfer prices. The underlying principle of the tax policy is the functioning of all Group companies in accordance with the tax legislation in the countries where those companies are registered to perform an activity.
The Telekom Slovenije Group’s tax policy has been defined to ensure the appropriate organisation and functioning of the tax function, with the aim of optimising the tax burden through the accurate, lawful and timely calculation and payment of taxes.
Tax-related risks are included in risk assessment and reporting. The catalogue of identified risks includes risks associated with compliance with tax legislation, i.e. the accurate and timely fulfilment of all types of tax obligations.
98 GRI 206-1, SASB: TC-TL-520a.1
99 GRI 2-23, 2-24, 2-25, 2-26, 3-3
100 GRI 3-3, 207-1, 207-2, 207-3
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.
At Telekom Slovenije’s 36th General Meeting of Shareholders, which took place on 16 June 2023, the audit firm Deloitte revizija, d.o.o. was appointed to audit the financial statements of the Group and Telekom Slovenije d.d. for the 2023, 2024 and 2025 financial years, as per the Guidelines for Ensuring the Independence of the Auditor of the Financial Statements of the Telekom Slovenije Group. The costs associated with the auditor are disclosed in the financial report in point 43 (‘Auditor’s fee’).
The Internal Audit Service (IAS) performs transactions for all Telekom Slovenije Group companies, and provides internal auditing services for two subsidiaries as an external contractor. The IAS performs its work in accordance with the Hierarchy of Internal Auditing Rules and the Rules of Procedure for Internal Auditing within the Telekom Slovenije Group. The compliance and quality of the IAS’s work, as well as continuous improvements, are confirmed every year via an internal quality assessment, while an independent external quality assessment was carried out in 2021. The IAS works well with senior management and the supervisory body, and reports regularly to both with regard to its work. Senior management and the supervisory body provide support to the IAS by recognising the added value that its reports provide.
Objective assurances regarding key risks and consultancy services are provided by internal auditors with all the relevant active professional titles. They attend professional training regularly, are members of professional associations, and share their knowledge with colleagues at conferences, seminars and workshops. Their experiences form the basis for a thorough understanding of the complex operations of the Telekom Slovenije Group and the preparation of assurances in the selected areas.
collection of various data and information regarding operations and risks, global trends, and information provided by senior management and the supervisory body. Through audit transactions, the giving of assurances and consultancy activities, it contributes to the strengthening and protection of the organisation’s value, to continuous improvements in the effectiveness of risk management, control procedures and corporate governance at Group companies, and to the fulfilment of the Group’s mission. Activities for 2023 were defined in the annual work plan drawn up on the basis of actual risks. The annual and multi-year plans were adopted by the Management Board. The Supervisory Board gave its approval to the plans, at the proposal of the Audit Committee. In addition to carrying out the audit engagements set out in the annual plan, the IAS completed four extraordinary audits in 2023. Based on an assessment of the engagements performed, we found that measures to control the risks to the achievement of the objectives are in place and are working properly. However, the IAS did make quite a few recommendations to improve performance and increase business performance.
In November 2023, AKOS published an invitation to tender with public auction for the allocation of the 2,300 MHz and 3,600 MHz radio frequencies for local use. It also prepared a Draft Strategy for the Management of the Radio Frequency Spectrum for the 2024–2026 Period.
In March 2023 the Slovenian government adopted the Digital Slovenia 2030 strategy, followed in November by the National Strategic Plan for the Digital Decade. The former is designed to aid the strategic planning of the promotion of Slovenia’s digital transformation, while the latter sets out the path by which Slovenia will contribute to the common European objectives of the Digital Decade in the fields of digital skills, digital infrastructure, the digital transformation of companies and digital public services.
In 2023, AKOS and the Ministry of Digital Transformation drafted a considerable number of implementing regulations pursuant to the Electronic Communications Act (ZEKom-2) adopted in 2022. Telekom Slovenije actively took part in this process in the form of public consultations.
In February 2023 the European Commission set out a series of measures by which all citizens and enterprises in the EU should be provided with gigabit connectivity by 2030. It adopted a draft Gigabit Infrastructure Act, which will set down new rules for the faster, cheaper and more efficient rollout of gigabit networks across the whole of the EU. The draft gigabit infrastructure recommendations are aimed at national regulatory authorities. It should provide guidance on the conditions of access to the telecommunications networks of those operators with significant market power, and speed up the discontinuation of old technologies and the rollout of gigabit networks.
AKOS conducted various inspections in 2023 with respect to Telekom Slovenije in connection with imposed obligations on regulated relevant markets. Telekom Slovenije addressed an initiative to AKOS for the re-analysis of relevant market 3b, which is no longer on the European Commission’s list of markets requiring ex ante regulation.
| Relevant market | Change |
|---|---|
| Relevant market 4 (2014/710/EU) ‘Wholesale high-quality access at a fixed location’ | On 26 October 2023 the Administrative Court annulled the decision, issued on 30 September 2019, that determined Telekom Slovenije as an operator with significant market power. |
| Relevant market 1 (2020/2245/EU) ‘Wholesale local access at a fixed location’ | In a decision dated 15 December 2023, AKOS expanded the set of settlements in which prices were deregulated. |
| Relevant market 3b (2014/710/EU) ‘Wholesale central access at a fixed location for mass-market products’ |
Through management systems we control the entire lifecycle of our services, from design and development, the securing of resources, logistics, implementation and the maintenance of service quality during the operation phase, to the controlled conclusion of the lifecycle. In 2023 the Group managed to successfully maintain all management systems already in place.
| Certificates of compliance | Validity |
|---|---|
| Telekom Slovenije, d.d. | SIST EN ISO 14001 Valid until: 31 January 2026 |
| Environmental management system in real estate management | SIST EN ISO 22301 Valid until: 11 April 2025 |
| Services and processes of Telekom Slovenije | SIST EN ISO/IEC 27001 Valid until: 28 April 2026 |
| Cyber Security and Resilience Centre, financial services, commercial ICT services, network and service control, and technical support for business solutions | SIST EN ISO/IEC 27018 Valid until: 28 April 2026 |
| Public cloud, ICT cloud services | SIST EN ISO 50001 Valid until: 31 January 2026 |
| Energy services of Telekom Slovenije for internal needs | SIST EN 50518 Valid until: 28 October 2025 |
| Alarm system – Monitoring and alarm receiving centre | GVO |
| SIST EN ISO 9001 Valid until: 31 December 2026 | Design, construction and maintenance of telecommunications and electricity networks. |
| SIST EN ISO 14001 Valid until: 31 December 2026 | Design, construction and maintenance of telecommunications and electricity networks. |
| Avtenta | SIST EN ISO 9001 Valid until: 30 June 2025 |
| Development and integration of business solutions, service delivery and consulting, system integration, project management and sales. | IPKO |
| SIST EN ISO 9001 Valid until: 24 December 2026 | Digital cable TV, internet services, and fixed and mobile telephony. |
| SIST EN IEC/ISO 27001 |
Valid until: 24 December 2026
Digital cable TV, internet services, and fixed and mobile telephony.
We successfully passed other assessments to maintain non-accredited manufacturer certificates, such as MS Partner, Cisco, Oracle and HP, and for systems that are based on other recommendations (internal rules, Family-Friendly Company, Socially Responsible Employer, etc.). In 2023 we completed a cycle of self-assessments of the operational excellence of the parent company (2021–2023) under the global EFQM 2020 method.
The Company’s archive materials represent an important part of its documentary materials and are of permanent importance for its history, the broader environment, science, culture and legal protection. Following a new assessment of the legal compliance of the management of documentary material, we received certification at the end of 2021 in the form of a decision from the Archives of the Republic of Slovenia stating that Telekom Slovenije’s internal rules were compliant with the law governing the protection of documentary and archive materials. In 2023, following a decision by the Archives, Telekom Slovenije was entered in the register of creators of archive material.
(the Taxonomy Regulation) and the delegated acts that supplement it (2021/2139 and 2021/2178) lay down a single classification system for environmentally sustainable economic activities, and represent an important step towards achieving the EU goal of climate neutrality by 2050.
A taxonomy-eligible economic activity is an activity described in the delegated acts supplementing the Taxonomy Regulation. It is not important here whether a specific economic activity meets any or all of the technical screening criteria set out in these delegated acts. An economic activity is taxonomy-aligned if it meets the technical screening criteria defined in the Climate Delegated Act.
The Telekom Slovenije Group is obliged to publish key performance indicators for 2023. Those indicators relate to services linked to economic activities that can be classed as sustainable.
We prepared disclosures on the basis of a review of the aforementioned documents, our understanding and the available information. In view of the fact that the Delegated Regulation is to be upgraded, we will examine further interpretations and requirements as they arise, and take account of their impact on the disclosure of Telekom Slovenije and Telekom Slovenije Group data. We will in future refine our reporting systems and reports in line with the recommendations that have been made by various regulators, so that they will provide more comprehensive disclosures as required by the Delegated Regulation.
The majority of activities necessary for the provision of telecommunication services are not currently included in the application of Annexes I and II to Commission Delegated Regulation (EU) 2021/2139, which means that EU Taxonomy reporting requirements do not currently apply to the majority of the Telekom Slovenije Group’s activities.
Only the activities of ‘Data centres’ and ‘Development and use of ICT solutions to monitor and mitigate climate change’ are included in the taxonomy for the area of telecommunications and the broader ICT sector. We have included the activities ‘Construction’ and ‘Real estate transactions’ (installation, maintenance and repair of electric vehicle charging stations in buildings and parking areas, and the installation, maintenance and repair of technologies for energy from renewable sources) in taxonomy-eligible activities.
and investments accounted for by those activities are relatively small (less than 1%), which is also evident from the data in the tables below. In addition to taxonomy-eligible activities, we also assessed the proportions of taxonomy-aligned activities. According to currently assessed values (without taking into account technical criteria), the aforementioned proportions are very small, but are nevertheless disclosed on account of reporting obligations.
In order to calculate the proportion of turnover, we took into account the amount of turnover from activities included in the EU taxonomy. The denominator takes into account operating revenues (sales revenue) at the Telekom Slovenije Group level (Annual report of the Telekom Slovenije Group and Telekom Slovenije, section 9.2, Note 7 – Sales revenue).
In order to calculate the proportion of operating expenditure (OPEX), we took into account the amount of operating costs from activities included in the EU taxonomy. The denominator takes into account total operating costs at the Telekom Slovenije Group level. Operating costs include: the historical cost of goods sold, costs of material and energy, costs of services and labour costs. Amortisation and depreciations costs are not included (Annual report of the Telekom Slovenije Group and Telekom Slovenije, section 9.2, Note 9 – Costs of goods sold, Costs of materials, energy and services and Note 10 – Labour costs).
In order to calculate the proportion of capital expenditure (CAPEX), we took into account the amount of capital expenditure from activities included in the EU taxonomy. The denominator takes into account total capital expenditure at the Telekom Slovenije Group level. CAPEX includes the purchase of intangible assets and property, plant and equipment, and the increase in assets under lease and other investments (Annual report of the Telekom Slovenije Group and Telekom Slovenije, section 7.5 Investments in fixed assets).
We included under activity 8.1 ‘Data processing, hosting and related activities’ the activity of data centres, which is defined as the storage, manipulation, management, movement, control, display, switching, interchange, transmission or processing of data through data centres, including edge computing. This includes data centre equipment and services intended for business users. The activity falls under the NACE category J63.11. We defined it as ‘Data centres’.
We included under activity 8.2 ‘Data-driven solutions for GHG emissions reductions’ the activity of the development and/or use of ICT solutions primarily in connection with Internet of Things (IoT) solutions. Those solutions are predominantly aimed at the provision of data and analytics for decision making by the public and private sectors, which in turn facilitates a reduction in greenhouse gas emissions and thus the carbon footprint. IoT-related services include solutions for calming traffic, environmental and remote metering, solutions for agriculture, digitalisation of the vehicle fleet, implementation in the scope of smart cities, etc. The activity falls under the NACE categories J61, J62 and J63.11. We defined it as ‘Development and use of ICT solutions to monitor and mitigate climate change’.
We included the e-mobility activity for charging stations and the digitalisation of the vehicle fleet in activity 7.4 Installation, maintenance and repair of electric vehicle charging stations in buildings (and associated parking areas). The activity falls under the NACE categories F42, F43, M71, C16, C17, C22, C23, C25, C27 and C28. We defined it as ‘E-mobility – charging stations and digital vehicle fleet’.
We included electricity production using photovoltaics, i.e. solar power plants installed on the roofs of business premises, in the activity 7.6 Installation, maintenance and repair of technologies for energy from renewable sources. The activity falls under the NACE categories F42, F43, M71, C16, C17, C22, C23, C25, C27 and C28. We defined it as ‘Energy – electricity production using photovoltaics’.
In certain cases, specific business activities could be allocated to more than one activity under the taxonomy. This could apply in particular for OPEX and CAPEX. In our case, we only took into account OPEX and CAPEX for the stated business activities. In this way, we will continue to facilitate transparency in the future and thus prevent double counting by allocating the value of OPEX or CAPEX to the core activity based on the majority principle.
The following approach was taken into account for taxonomy alignment:
| Note | I–XII 2023 | I–XII 2022 | I–XII 2023 | I–XII 2022 |
|---|---|---|---|---|
| Sales revenue | 694,913 | 652,121 | 601,669 | 575,886 |
| Other operating income | 13,254 | 6,832 | 9,628 | 3,225 |
| Cost of goods sold | -92,012 | -86,548 | -96,933 | -94,836 |
| Costs of materials and energy | -30,371 | -22,576 | -24,230 | -15,788 |
| Costs of services | -211,684 | -208,503 | -198,922 | -195,762 |
| Labour costs | -126,128 | -117,858 | -103,776 | -98,446 |
| Depreciation/amortisation | -164,431 | -166,090 | -137,869 | -138,881 |
| Other operating expenses | -19,403 | -7,016 | -13,015 | -6,914 |
| Total operating expenses | -644,029 | -608,591 | -574,745 | -550,627 |
| Operating profit | 64,138 | 50,362 |
| Telekom Slovenije Group | Telekom Slovenije | in EUR thousand | Note | I–XII 2023 | I–XII 2022 | I–XII 2023 | I–XII 2022 |
|---|---|---|---|---|---|---|---|
| Finance income | 13 | 36,552 | 28,484 | ||||
| Finance expenses | 13 | -18,661 | -8,442 | ||||
| Profit before tax | 47,492 | 45,425 | 22,846 | 25,847 | |||
| Corporate income tax | 14 | -4,890 | -5,020 | -2,062 | -2,348 | ||
| Deferred tax | 14 | 4,463 | -2,899 | 3,080 | -2,706 | ||
| Net profit for the period | 47,065 | 37,506 | 23,864 | 20,793 | |||
| Earnings per share | Basic in EUR | 15 | 7.24 | 5.77 | 3.67 | 3.20 | |
| Adjusted in EUR | 15 | 7.24 | 5.77 | 3.67 | 3.20 |
| 47,065 | 37,506 | 23,864 | 20,793 |
|---|---|---|---|
| -14 | 62 | -16 | 55 |
|---|---|---|---|
| 30 | 0 | 8 | 0 |
|---|---|---|---|
| 30 | -19 | 107 | -20 | 108 |
|---|---|---|---|---|
| 14 | 5 | -53 | 4 | -53 |
|---|---|---|---|---|
| 14 | 3,325 | 107 | 2,784 |
|---|---|---|---|
| 30 | -53 | 3,661 | 39 | 3,119 |
|---|---|---|---|---|
| 37 | -160 | 37 | -160 |
|---|---|---|---|
| 30 | 29 | -258 | 30 | -257 |
|---|---|---|---|---|
| 14 | 1 | 82 | 1 | 82 |
|---|---|---|---|---|
| in EUR thousand | Note | 31 Dec 2023 | 31 Dec 2022 | 31 Dec 2023 | 31 Dec 2022 |
|---|---|---|---|---|---|
| ASSETS | |||||
| Intangible assets | 16 | 203,754 | 204,352 | 162,379 | 155,259 |
| Property, Plant and Equipment | 17 | 686,497 | 679,501 | 607,716 | 604,932 |
| Right-of-use assets | 18 | 79,205 | 75,419 | 85,356 | 78,126 |
| Investments in subsidiaries | 19 | 0 | 0 | 36,920 | 38,720 |
| Other investments | 20 |
Total comprehensive income for the period
47,065
40,893
23,955
23,632
Total comprehensive income for the period belonging to:
47,065
40,893
23,955
23,632
owners of the parent company
47,065
40,893
23,955
23,632
| Contract assets | 2,472 | 2,448 | 22,014 | 48,505 |
|---|---|---|---|---|
| Other receivables | 19,685 | 19,251 | 19,684 | 19,246 |
| Deferred costs | 2,714 | 3,293 | 2,787 | 3,694 |
| Investment property | 3,296 | 4,304 | 3,296 | 7,457 |
| Deferred tax assets | 42,203 | 39,324 | 41,848 | 39,057 |
| Total non-current assets | 1,044,005 | 1,031,516 | 985,749 | 998,230 |
| Assets held for sale | 588 | 796 | 588 | 796 |
| Inventories | 24,802 | 25,253 | 21,176 | 21,702 |
| Trade and other receivables | 170,123 | 157,680 | 161,091 | 150,884 |
| Income tax receivables | 932 | 1,387 | 442 | 1,286 |
| Contract assets | 14,148 |
| Deferred costs | 22 | ||||
|---|---|---|---|---|---|
| Investments | 20 | 1,046 | 837 | ||
| Cash and cash equivalents | 29 | 55,479 | 37,382 | 44,376 | 19,573 |
| Total current assets | 273,861 |
1,317,8661,275,3381,250,3151,223,290
| 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 | 106,479 | 106,479 | 104,978 | 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 |
| Statutory reserves | 30 | 54,854 | 54,854 | 54,544 | 54,544 |
|---|---|---|---|---|---|
| Other revenue reserves | 30 | 13 | 13 | 0 | 0 |
| Retained earnings | 30 | 96,640 | 50,003 | 70,492 | 46,869 |
| Retained earnings from previous periods | 49,575 | 12,497 | 46,628 | 26,076 | |
| Profit or loss for the period | 47,065 | 37,506 | 23,864 | 20,793 | |
| Fair value reserve | 30 | -172 | -188 | -172 | -188 |
| Reserves for actuarial gains/losses | 30 | 1,429 | 1,155 | 1,214 | 897 |
| Translation reserves | 30 | 52 | 18 | 0 | 0 |
| Total equity | 658,638 | 611,677 | 630,189 | 606,233 | |
| Contract liabilities | 31 | 19,730 | 17,072 | 19,237 | 16,425 |
| Provisions | 32 | 24,711 | 21,220 | 21,139 | 17,925 |
| Other payables |
| Deferred liabilities | 8,916 | 5,810 | 426 | 666 |
|---|---|---|---|---|
| Loans and borrowings | 34 | 306,578 | 236,683 | |
| Lease liabilities | 35 | 65,216 | 59,342 | |
| Deferred tax liabilities | 14 | 304 | 1,893 | |
| Total non-current liabilities | 448,791 | 350,197 | 434,963 | 336,710 |
| Operating liabilities | 37 | 123,746 | 123,915 | |
| Income tax payable | 14 | 7 | 221 | |
| Loans and borrowings | 34 | 30,598 | 132,757 | |
| Lease liabilities | 35 | 9,868 | 10,603 | |
| Other financial liabilities | 36 | 2 | 2 | |
| Contract liabilities | 38 | 11,907 |
| Called-up capital | Capital surplus | Revenue reserves | Net profit or loss brought forward | Fair value reserve for financial instruments | Fair value reserve for hedging instruments in net amount | Reserves for actuarial deficits and surpluses | Currency translation reserve | Total |
|---|---|---|---|---|---|---|---|---|
| 10,275 | 5,779 | 5,602 | Deferred liabilities | 39 | 34,309 | 35,691 | 29,052 | 30,161 |
| Total current liabilities | 210,437 | 313,464 | 185,163 | 280,347 | Total liabilities | 659,228 | 663,661 | 620,126 |
| 617,057 | Total equity and liabilities | 1,317,866 | 1,275,338 | 1,250,315 | 1,223,290 |
| Other revenue reserves | Retained earnings from previous periods | Profit or loss for the period | Balance as at 1 Jan 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 |
| 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 47,065 | 0 | 0 | 0 | 0 | 47,065 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 67 | -14 | -53 | 0 | 0 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 0 | 0 | 0 | 0 | 0 |
|---|---|---|---|---|
| 0 | 0 | 0 | 47,065 | 67 | -14 | -53 | 0 | 47,065 |
|---|---|---|---|---|---|---|---|---|
| 0 | 0 | 0 | 0 | 0 | 0 | 0 | 37,506 | -37,506 |
|---|---|---|---|---|---|---|---|---|
| 0 | 0 | 0 | 0 | 0 | 0 | 0 | 37,182 | -37,506 | -37 | 0 | 327 | 34 | 0 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 0 | 0 | 0 | 0 | 0 | 0 | 0 | -104 | 0 |
|---|---|---|---|---|---|---|---|---|
| Called-up capital | Capital surplus | Revenue reserves | Net profit or loss brought forward | Fair value reserve for financial instruments | Fair value reserve for hedging instruments in net amount | Reserves for actuarial deficits and surpluses | Currency translation reserve | Total |
|---|---|---|---|---|---|---|---|---|
| -104 | 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 164 to 245 are an integral part of these consolidated financial statements.
| from previous periods | Profit or loss for the period |
|---|---|
| Balance as at 1 Jan 2022 | 272,721 |
| 181,489 | |
| 51,612 | |
| 3,671 | |
| -3,671 | |
| 54,854 | |
| 13 | 4,050 |
| 37,888 | -26 |
| -40 | -2,139 |
| 9 | 600,431 |
| Net profit or loss for the period | 0 |
| 0 | |
| 0 | |
| 0 | |
| 0 | |
| 0 | |
| 0 | |
| 37,506 | |
| 0 | |
| 0 | |
| 0 | |
| 0 | |
| Total comprehensive income for the period | 0 |
| 0 | |
| 0 | |
| 0 | |
| 37,506 | |
| -336 | |
| 54 | |
| 3,661 | |
| 8 | |
| 3,387 |
| 0 | 0 | 0 | 0 | 0 | 0 | -29,244 | 0 | 0 | 0 | 0 | 0 | -29,244 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 0 | 0 | 0 | 0 | -394 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -394 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 0 | 0 | 0 | 394 | 0 | 0 | 0 | -394 | 0 | 0 | 0 | 0 | 0 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 0 | 0 | 0 | 394 | -394 | 0 | 0 | -29,638 | 0 | 0 | 0 | 0 | 0 | -29,638 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 0 | 0 | 0 | 0 | 0 | 0 | 0 | 37,888 | -37,888 | 0 | 0 | 0 | 0 | 0 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 0 | 0 | 0 | 0 | 0 | 0 | 0 | 207 | 0 | 160 | 0 | -367 | 0 | 0 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 0 | 0 | 0 | 0 | 0 | 0 | 0 | 38,095 | -37,888 | 160 | 0 | -367 | 0 | 0 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 0 | 0 | 0 | 0 | 0 | 0 | 0 | -10 | 0 | 0 | 0 | 0 | 1 | -9 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 272,721 | 181,489 | 51,612 | 4,065 | -4,065 |
|---|---|---|---|---|
| Called-up capital | Capital surplus | Revenue reserves | Net profit or loss brought forward | Fair value reserve for financial instruments | Fair value reserve for hedging instruments in net amount | Reserves for actuarial deficits and surpluses | Total |
|---|---|---|---|---|---|---|---|
| 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 |
| 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 profit or loss from previous period to retained earnings | ||||
| 0 | 0 | 0 | 0 | 0 | 0 | 0 | 20,793 | -20,793 |
| Other changes in equity | -242 | -37 | 278 | -1 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Changes in equity | 20,551 | -20,793 | -37 | 278 | -1 | ||||||||
| Other | 1 | 0 | 1 | 0 | 0 | 2 | |||||||
| Balance as at 31 Dec 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 164 to 245 are an integral part of these consolidated financial statements.
| Capital surplus | Revenue reserves | Net profit or loss brought forward | Fair value reserve for financial instruments | Fair value reserve for hedging instruments in net amount | Reserves for actuarial deficits and surpluses | Total |
|---|---|---|---|---|---|---|
| Legal reserves | Reserves for own shares | Own shares | Statutory reserves | Other revenue reserves | Retained earnings from previous periods | Profit or loss for the period |
| Balance as at 1 Jan 2022 | 272,721 | 180,956 | 50,434 | 3,671 | -3,671 | 54,544 |
| 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other comprehensive income for the period | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -335 | 55 | 3,119 | 2,839 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total comprehensive income for the period | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 20,793 | -335 | 55 | 3,119 | 23,632 |
| Payment of dividends | 0 | 0 | 0 | 0 | 0 | 0 | -29,244 | 0 | 0 | 0 | 0 | -29,244 |
| Purchase of own shares | 0 | 0 | 0 | 0 | -394 | 0 | 0 | 0 | 0 | 0 | 0 | -394 |
| Forming treasury shares reserves | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 0 | 0 | 0 | 394 | -394 | 0 | 0 |
|---|---|---|---|---|---|---|
| 0 | 0 | 0 | -29,638 | 0 | 0 | 0 |
| 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 0 | 0 | 0 | 34,371 | -34,371 | 0 | 0 |
|---|---|---|---|---|---|---|
| 0 | 0 | 0 | 199 | 0 | 160 | 0 | -359 |
|---|---|---|---|---|---|---|---|
| 0 | 0 | 0 | 34,570 | -34,371 | 160 |
|---|---|---|---|---|---|
| Note | I - XII 2023 | I - XII 2022 | I - XII 2023 | I - XII 2022 |
|---|---|---|---|---|
| Cash flows from operating activities | ||||
| Net profit for the period | 47,065 | 37,506 | 23,864 | 20,793 |
| Adjustments for: | ||||
| Depreciation | 164,431 | 166,090 | 137,869 | 138,881 |
| Impairment and write-offs of property, plant and equipment, and intangible assets | 8,736 | 1,713 | 2,959 | 1,010 |
| Gain/loss on disposal of property, plant and equipment | -2,210 |
| -1,150 | -3,881 | -1,370 |
|---|---|---|
| 12 | 902 | 1,381 | 852 | 1,266 |
|---|---|---|---|---|
| 5,359 | 3,161 | 4,394 | 2,577 |
|---|---|---|---|
| 2,597 | 2,953 | 2,068 | 2,414 |
|---|---|---|---|
| -1,986 | -3,343 | -4,101 | -4,724 |
|---|---|---|---|
| 17,262 | 8,021 | 19,188 | 8,154 |
|---|---|---|---|
| 427 | 7,919 | -1,018 | 5,054 |
|---|---|---|---|
| 242,583 | 224,251 | 182,194 | 174,055 |
|---|---|---|---|
| 1,833 | -2,121 | 1,957 | -1,331 |
|---|---|---|---|
| -17,518 | -7,176 | -13,539 | -6,712 |
|---|---|---|---|
| -1,037 | -3,232 | 149 | -2,446 |
|---|---|---|---|
| 1,109 | -417 | 1,789 | -464 |
|---|---|---|---|
| 15,021 | -17,714 | 22,009 |
|---|---|---|
-25,511
| -2,300 | -7,743 | -1,245 | -6,694 |
|---|---|---|---|
| 245,705 | 198,423 | 194,954 | 134,371 |
|---|---|---|---|
| 3,674 | 2,403 | 32,753 | 19,705 |
|---|---|---|---|
| 3,171 | 1,704 | 4,662 | 2,200 |
|---|---|---|---|
| 166 | 240 | 271 | 1,185 |
|---|---|---|---|
| 255 | 4 | 3,452 | 1,540 |
|---|---|---|---|
| 37 | 400 | 37 | 400 |
|---|---|---|---|
| 45 | 55 | 24,331 | 14,380 |
|---|---|---|---|
| -171,140 | -153,198 | -143,518 | -111,154 |
|---|---|---|---|
| -95,588 | -96,548 | -70,157 | -69,923 |
|---|---|---|---|
| -75,352 | -56,550 | -69,131 | -34,441 |
|---|---|---|---|
| 0 | 0 |
|---|---|
| Disbursements for loans and deposits issued | -1,000 |
|---|---|
| -200 | |
| -100 | |
| -4,230 | |
| -5,790 |
-167,466-150,795-110,765-91,449
| Proceeds from financing activities | 100,000 | 60,000 | 100,000 | 60,000 | |
|---|---|---|---|---|---|
| Proceeds from borrowings | 100,000 | 60,000 | 100,000 | 60,000 | |
| Disbursements from financing activities | -160,195 | -86,231 | -159,439 | -87,153 | |
| Disbursements from treasury shares buyback | 0 | -394 | 0 | -394 | |
| Disbursements for approval of borrowings and issue of bonds | -60 | 0 | -60 | 0 | |
| Repayment of lease liabilities – principal | -10,243 | -9,158 | -10,002 | -8,723 | |
| Repayment of current borrowings | 0 | 0 | 0 | -1,400 | |
| Repayment of non-current borrowings | -132,527 | -40,220 | -132,527 | -40,220 | |
| Sale of derivatives | 0 | 0 | 0 | 0 | |
| Disbursements for interest | -17,365 | -7,215 | -16,850 | -7,172 | |
| Dividends paid | 0 |
Telekom Slovenije, d. d., (hereinafter: Telekom Slovenije or Company) and its subsidiaries comprise the Telekom Slovenije Group (hereinafter: Telekom Slovenije Group or Group). Subsidiaries are listed in Note 19 Investments in subsidiaries. A detailed overview of the Group’s composition is given in the business report herein.
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 ultimate beneficial owner is the Republic of Slovenia, which holds a 62.54% share in the Company Telekom Slovenije (Note 30 Equity and reserves).
The 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 2023, with comparative statements for 2022.
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
| -29,244 | 0 | -29,244 | Net cash used in financing activities | |
|---|---|---|---|---|
| -60,195 | -26,231 | -59,439 | -27,153 | Net increase/decrease in cash and cash equivalents |
| 18,044 | 21,397 | 24,750 | 15,769 | Opening balance of cash |
| 37,382 | 15,935 | 19,573 | 3,754 | Effect of exchange rate changes on cash and cash equivalents |
| 53 | 50 | 53 | 50 | Closing balance of cash |
| 55,479 | 37,382 | 44,376 | 19,573 |
The Management Board approved the consolidated financial statements of the Telekom Slovenije Group and the separate financial statements of the Company Telekom Slovenije on 15 March 2024. Deloitte revizija d.o.o. audited and expressed an unmodified opinion on the 2023 financial statements. PricewaterhouseCoopers (PwC) d.o.o. audited the 2022 financial statements and expressed an unmodified opinion.
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.
The financial statements have been prepared based on historical cost, with the exception of:
The methods used for measuring fair value are described in Note 4 Determination of Fair Value. The Group’s and the Company’s financial statements have been prepared based on the going concern assumption. (accounting assumption of going concern). The Group’s and the Company's operations are not of seasonal nature.
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:
In estimating the useful lives of assets, the Group takes into account the expected physical wear and tear, as well as technical or commercial obsolescence. The adequacy of the useful lives is monitored by a working group, which annually checks the useful lives and the residual value; if expectations differ significantly from earlier estimates of depreciation/amortisation rates, the useful lives and residual values are restated for the current and future periods. The working group mainly consists of technical experts who assess the useful lives based on previous work experience and the lifetime of the assets, monitor technological development and changes in the business activity.
For right-of-use assets, the Group and the Company determine the useful life based on the lease contract term if the latter is shorter than the useful life. If the contract is concluded for an indefinite period or is renewed annually, the expected depreciation periods for each category of assets are used. The estimated useful lives of assets are presented in Notes 3.c, 3.d and 3.e.
The Group and the Company check on an annual basis the book values of significant items of property, plant and equipment and intangible assets in order to establish whether there is any need to impair any of the assets. Upon assessing whether indication for impairment exists, it is checked whether significant technological changes, market changes or a significant decrease in interest rates occurred. If so, the asset’s recoverable amount is ascertained. Impairment is carried out if the asset's book value exceeds its estimated recoverable amount.
Impairment of goodwill is established at least once a year. For this purpose, the Group and the Company obtained a certified business appraiser and carried out a valuation on 30 November 2023 according to which the recoverable amount of goodwill exceeds its book value.
Information about other significant assessments of uncertainty taken into consideration by management in the case of asset impairment are described in the following notes:
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 2023, based on checking for signs of impairment, the Group opted to assess the recoverable amount for its subsidiaries TSmedia, Tsinpo, Soline, SIOL Zagreb, SIOL Prishtina and SiOL Sarajevo. The recoverable amounts of individual companies were assessed by a certified business appraiser.
Details of establishing recoverable amounts are described in Note 3.f and Note 19 Investments in subsidiaries.
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. The Group’s policies are detailed in Notes 3. f, 26 Trade and other receivables and 45 Financial instruments and financial risk management.
Deferred tax 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. Detailed disclosure regarding the formation of deferred tax assets and liabilities is available in Notes 3. q and 14.
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.
In the current year, the Group and the Company have applied a number of amendments to IFRS Accounting Standards issued by the International Accounting Standards Board (IASB) and adopted by the EU that are mandatorily effective for reporting period that begins on or after 1 January 2023. Their adoption has not materially impacted the disclosures or the amounts reported in these financial statements.
examples to help preparers in deciding which accounting policies to disclose in their financial statements.
Amendments to other accounting standards are not relevant for the Group or the Company, or will not impact the financial statements, therefore they are not disclosed.
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.
At present, IFRS as adopted by the EU do not significantly differ from IFRS adopted by the International Accounting Standards Board (IASB) except for the following new standards and amendments to the existing standards, which were not adopted by the EU by the date of authorisation of these financial statements.
The Group and the Company do not expect that the adoption of the standards listed above will have a material impact on the financial statements in future periods.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
The consolidated financial statements are comprised on the basis of the financial statements of the controlling company Telekom Slovenije and its subsidiaries for the financial year 2023. Financial statements of individual Group companies have been prepared for the same reporting year as the financial statements of the controlling company using consistent accounting policies. In the event of inconsistencies in accounting policies, individual companies make the relevant modifications in their financial statements, which form the basis for the consolidated financial statements.
Business combinations are accounted for using the acquisition method on/as of the date when 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 are entities controlled, indirectly or directly, by the Company Telekom Slovenije via its own subsidiaries. The Company controls a subsidiary if it is exposed to or has rights to variable returns from its involvement with the company. Control exists when the controlling company Telekom Slovenije has the ability to affect the financial and business decisions of the company in order to benefit from its operations.
Financial statements of subsidiaries are included in the consolidated financial statements from the date on which such control begins. Subsidiaries are de-consolidated from the consolidated financial statements from the moment when the control over the subsidiary by the controlling company or another Group company ceases. If control over a subsidiary ceases during the year, the consolidated financial statements include the results of the subsidiary up until the date on which such control over the subsidiary still existed. Upon loss of control, all assets and liabilities of the subsidiary are derecognised and the gain or loss due to the deconsolidation is recognised in the consolidated statement of profit or loss. If the Group keeps an interest in the previous subsidiary, this interest is measured at fair value as at the date of losing control. Subsequently, this interest is accounted for as investment in an associate (applying the equity method) or as financial investment in equity instruments in accordance with IFRS 9, depending on the level of control in equity.
Consolidated financial statements do not include intra-group transactions, assets and liabilities, equity, income and expenses, and cash flows between Group companies.
Transactions in foreign currencies are translated into the functional currency using the exchange rate at the date of the transaction. Cash, receivables and liabilities and other monetary assets are translated into the functional currency on the balance sheet date using the daily exchange rate as at the balance sheet date. Non-monetary assets and liabilities expressed in a foreign currency and measured at historical cost are translated using the exchange rate applicable on the date of transaction. Non-monetary assets and liabilities expressed in a foreign currency and measured at fair value are translated using the exchange rate as at the date on which the fair value was determined. All exchange rate differences are recognised in the statement of profit or loss, except for differences that arise on restatement of investments in equity instruments classified as measured at fair value through other comprehensive income that are recognised directly in other comprehensive income.
Companies conducting business operations in foreign currencies
On the reporting date, foreign subsidiaries whose functional currency is not Euro translate their assets and liabilities into Euro by using the exchange rate of the European Central Bank (ECB) as at the reporting date, while the average exchange rate of the reporting period is applied for the statement of profit or loss.
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 impairment possible losses. For intangible assets with an indefinite useful life, it is ascertained at least once a year whether they need to be impaired in accordance with IAS 36. All intangible assets have finite useful lives, except the item of goodwill.
The Group and the Company monitor the useful lives of significant items of intangible assets through administrators of these assets and within a working group, which annually checks the useful lives and residual values. If estimated expectations differ significantly from the applicable estimates of amortisation rates, the impact is restated for the current and future periods. The effect of such a change is described in the notes within the accounting period in which the change in estimate occurred. Compared to the previous year, estimated useful lives have not changed.
| Groups of intangible assets | Useful lives in years |
|---|---|
| - concessions | 13 to 20 |
| - trademarks | 10 |
| - licences | 1 to 7 |
| - programme rights – TV content | 1 to 5 |
| - cost of obtaining contracts with customers | 2.5 to 3.5 |
| - customer list | 3 to 5 |
| - computer software | 2 to 7 |
| - other property rights, patents, trademarks and licences | 2 to 20 |
The costs of concessions obtained for the use of the radio frequency spectrum are capitalised at cost and amortised on a straight-line basis over the useful life of the concession contract, which is between 13 and 20 years – Note 16 Intangible assets.
The costs of obtaining contracts with customers are costs that are directly related to the obtaining of subscribers and represent additional costs the Group and the Company have with obtaining contracts with customers and which would not have been incurred had the Group and the Company not obtained the contract. Sales commissions are recorded as costs of obtaining contracts with customers and are amortised in line with the transfer of the economic benefits to the customer, i.e. within the period of 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.
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 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.
Upon acquisition, items of property, plant and equipment owned by Group companies are disclosed at their cost. Cost includes all costs that may be directly attributed to getting an item of property, plant and equipment ready for its intended use.
Estimated costs of restoring locations for receiving-transmitting stations to their original condition are disclosed as an integral component of the asset's cost and are amortised over the asset's residual useful life. Provisions required to restore the original condition, discounted to present value, are reported under provisions.
The cost of an item of property, plant and equipment constructed/made within the Group companies includes the costs of material and direct labour. The costs of construction/making of property, plant and equipment which are included in cost are recognised as cost reduction within profit or loss.
When an item of property, plant and equipment comprises major components with different useful lives, these components are accounted for as separate items of property, plant and equipment.
Subsequent costs relating to property, plant and equipment increases their cost if it is probable that their future economic benefits will flow to the Group or Company.
The progress of projects and investments is monitored by the Group and the Company through project administrators on a monthly basis. If it is established that a certain project will not be finished, a write-off is carried out.
Upon initial recognition, property, plant and equipment are measured at cost and reduced according to value due to depreciation or potential impairment.
Residual values and useful lives of significant items of property, plant and equipment are reassessed on an annual basis and if expectations differ significantly from earlier estimates, depreciation rates are adjusted for the current and future periods. The effect of the change in estimate is described by the Group and the Company in the notes on the accounting period in which the change in estimate occurred.
| 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 |
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.
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.
Upon signing the lease contract, the Group and the Company assess whether the contract contains a lease in line with IFRS 16. Under this standard, a contract is, or contains, a lease if it conveys the lessee the right to control the use of an identified asset for a period of time in exchange for consideration. The Group and the Company have not used exemptions envisaged by the standard for low-value lease contracts and for leases expiring earlier than 12 months from initial application.
For lease contracts, the standard requires a lessee to recognise a right-of-use asset (lease liability) at the start of the lease. A right-of-use asset is recognised on the day the lease begins, i.e. when the asset is available for use. The initial measurement of an asset includes the amount of the lease liability at its initial recognition (discounted present value of lease payments outstanding as at that date), lease payments made at or before the lease commencement date less any lease incentives received and an estimate of potential costs to be incurred by the lessee in dismantling and removing the underlying asset. Variable lease payments, which are not subject to inflation or interest rates are not included in the measuring of lease liabilities and the right-of-use assets. The related payments are recognised upon emergence of an event as an operating expense.
Right-of-use assets are subsequently measured at cost less any accumulated depreciation and less impairment losses and adjusted for any remeasurement of the lease liability. The asset is depreciated from the beginning of the lease until the end of its useful life or until the end of the lease term, whichever is shorter. If the contract is concluded for an indefinite period or is renewed annually, the expected depreciation periods for each category of assets are used.
| 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 |
Indication of impairment is annually checked and in case of their occurrence, their recoverable amount is determined. In the event of impairment, such impairment is recognised in the statement of profit or loss in line with IAS 36.
Lease liabilities are recognised on the asset’s lease commencement date at the present value of lease payments that have not been paid yet. Liabilities represent discounted contractually agreed rents, while some contracts also include adjustment of liabilities to amend the cost of living index. The discount rate is determined using the interest rate derived from borrowing costs and based on the interest rate at which the Group and the Company, taking credit rating into account, can obtain a loan for the purchase of property, plant and equipment of a comparable amount (value) and maturity. Upon subsequent measurement of lease liabilities, the latter increase to reflect the interest on the lease liability and decrease by the value of the lease payments, additionally, in the event that the lease terms change, the present value is remeasured based on a reassessment of future lease payments or a change in the lease term (duration or price).
After the lease commencement date, the financial liability from lease is remeasured using the new discount rate if the lease term or future lease payment amount has changed. If a lease is terminated or there is a decrease in scope, the gain or loss associated with the partial or full termination of the lease is recognised in the statement of profit or loss.
Lease liabilities are recognised under non-current liabilities, except for liabilities that will be settled over the following 12-month period from the balance sheet date and are stated in the balance sheet as current lease liabilities.
Leases comprise the lease of lines, business and technological premises, the creation of easement or lease of land or premises for base stations, and functional locations. Inter-operator leases in Slovenia are regulated by published price lists for most services. Non-current leases are subject to conclusion of contracts with a fixed-term period of predominantly 15 years.
For business premises, base stations and functional locations, easement compensation or lease payment is set on the basis of agreements, valuations and the lessors’ price lists. Lease contracts are concluded for a definite or indefinite period of time, while easement agreements are entered into for the period of operation of electronic communication network and the pertaining infrastructure, or for a fixed term with the possibility of extension based on new negotiations. Contracts or agreements concluded for an indefinite period of time and for the period of operation can be terminated based on certain conditions. These are as follows:
The 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.
A financial asset is recognised when the Group or the Company become a party to contractual provisions of the financial instrument.
Financial assets measured at amortised cost are financial instruments which the Group and the Company hold within a business model whose objective is to hold financial assets in order to collect contractual cash flows and the financial asset gives rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. This category includes borrowings, trade and other receivables, deposits, cash and cash equivalents.
Borrowings and receivables are recognised on day of the settlement and are initially measured at fair value, plus any direct transaction costs. Upon initial recognition, they are measured at amortised cost using the effective interest rate method, less expected credit losses.
Incurred profit and loss is recognised in the statement of profit or loss:
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:
except if the dividend clearly represents a recovery of part of the cost of the investment.
Derivative financial instruments are used to hedge a company's exposure to risks arising from financing and investing activities. The method of recognition of gains or losses arising from the change in fair value of these instruments depends on whether hedge accounting has been applied or not.
Interest rate swap liabilities are measured at fair value obtained by the Company from the banks participating in the transaction. The Company checks at least on a three-month basis whether interest rate hedging is still adequate, and if so, recognize the effective change in the fair value of the instrument in other comprehensive income. In the event of positive valuation, the fair value is disclosed in the balance sheet under financial assets, and in the event of negative valuation, it is disclosed under financial liabilities.
Trade receivables are amounts of receivables due from business partners from the sale of goods and services within the ordinary course of business, which are measured upon initial recognition at transaction price less impairment losses. They are then carried at amortised cost.
To measure expected credit losses in accordance with MSRP 9, the Group and the Company use a simplified approach. Impairment of receivables is calculated as the amount equal to the expected credit losses over the entire useful life of a receivable. To measure expected credit losses, receivables were grouped together on the basis of common credit risk characteristics and maturities. Expected loss rates are based on payment data in the last 36 months and past credit losses incurred during the subject period. The effect of future-facing macroeconomic data on expected credit losses is not taken into account, as it is assessed as insignificant.
In line with IFRS 9, the Group and the Company use the expected loss model, and, in addition to the losses incurred, recognise losses expected to arise in the future. To that end, the Group and the Company assess evidence of impairment of financial assets.
On each reporting date, the Group and the Company must recognise expected credit losses for the entire duration, for all financial assets where credit risk has been increased since initial recognition. In this context, they consider all relevant and provable information, including future-facing information.
To estimate impairment, the Group and the Company apply the ECL measurement methodology, which is based on the risk parameters:
The risk parameter assessments, which they consider in estimating expected credit losses, are based on a combination of own and external (market) data.
For the purpose of potential impairment, financial assets are assessed collectively for operating receivables and individually for other financial assets.
If, on the reporting date, the credit risk for said financial instrument has not significantly increased since initial recognition, the Group and the Company measure impairment loss for the relevant financial instrument as an amount that is equivalent to expected credit losses over a 12-month period.
For trade receivables and current contract assets that do not include a significant financing component, a simplified approach is used which requires impairment loss to always be measured as an amount that is equivalent to expected credit losses in the entire duration.
In 2023, the Group and the Company did not change the valuation technique or significant assumptions in assessing impairment of these financial assets.
A financial asset is derecognised when:
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.
The Group’s and the Company’s financial liabilities mainly comprise borrowings.
Upon initial recognition, borrowings are disclosed at their fair value less possible costs. After initial recognition, borrowings are stated at amortised cost using the effective interest rate method.
Under financial liabilities, liabilities arising from profit or loss distribution (dividends) are disclosed as well until they are paid out. Dividends are recognised as a liability in the period in which they are approved at the General Meeting of Shareholders and at the amount at which they are approved.
Borrowings are derecognised when all contractual obligations and liabilities are fulfilled, annulled or statute-barred.
Investments 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.
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.
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:
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.
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.
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.
Cash and cash equivalents include cash in hand and available bank balances, short-term deposits with original maturity of up to 3 months, where the risk of fair value change is minimal.
and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and if the amount of the obligation can be estimated reliably. If the effect is material, provisions are determined by discounting the expected future cash flows.
Obligations with uncertain timing and amount are treated depending on management’s estimation of the amount and timing of the obligation and the probability of an outflow of resources that will be required to settle the obligation, either legal or constructive.
Contingent liabilities are not recognised in financial statements as their exact amount could not be measured reliably or their existence will be confirmed only upon the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Group and the Company.
The management of each Group company continually assess contingent liabilities to determine whether an outflow of resources embodying economic benefits has become probable. In this case, a provision is recognised in the financial statements of the period in which the change in probability occurs.
Provisions are directly decreased by costs or expenses, for which they were created to cover.
Provisions for liabilities from legal claims are formed on the basis of the estimate of the litigation outcome made by the relevant departments or external parties. The formation of provisions is assessed individually in view of the amount of the legal claim, its subject matter, the plaintiff's assertions and the course of each individual procedure. Due to uncertainty, actual liabilities may differ from those initially assessed. Management's estimates may change if new information is received. Amendments to these estimates can have a significant impact on the business results. The amount of provisions for liabilities from legal claims is disclosed in Note 32 Provisions.
Provisions for severance pays upon retirement and jubilee rewards are formed based on statutory requirements, collective agreements and internal rules and regulations, according to which the company is obliged to pay severance pays upon retirement and jubilee rewards. Provisions are formed based on an actuarial calculation prepared by a certified actuary. They are formed in the amount of estimated future payments of severance pays and jubilee rewards discounted at the balance sheet date. A calculation is made per individual employee, taking into account the cost of severance pays upon retirement and the cost of all expected jubilee benefits by the time of retirement. At each year-end, the amount of provisions is assessed and either increased or decreased accordingly. This applies mostly for determining the discount rate, the estimate of staff fluctuation and salary growth. The estimate on these liabilities can change in the future due to the complexity of the actuarial calculation and its long-term nature. Assumptions applied are disclosed in Note 32 Provisions.
Provisions for costs of removing base stations refer to the costs of removing receiving-transmitting base stations and restoring leased property to its original condition. Provisions are considered the best estimate for the costs of removal of base stations. They are recorded at the amount of the discounted value for the duration of the concession contract. The applied discount rate is based on the long-term return rate of the risk-free securities. The cost analysis on the removal of base stations, which is usually compiled every three years, is used as basis for the estimate. As at the year-end, the Group and the Company assess whether the amount of formed provisions is sufficient; if not, the value is properly adjusted.
Provisions for restructuring the company refer to severance payments to employees upon staff restructuring and are formed when they become part of the strategic business plan and the dynamics of employment-related changes (changed number of staff) is known on the balance-sheet date.
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.
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:
In the case of contracts with customers with a term of 12 or 24 months that include several performance obligations (e.g. partially subsidised mobile phone or other communication device, bundled with the service), the price of the whole transaction is allocated to individual performance obligations on the basis of relative stand-alone selling prices of the device and service. Revenue from the sale of goods is recognised immediately, while revenue from services is recognised over the contractual term. In this context, the contract assets are recognised that are associated with the right to consideration for sold goods or services rendered, but not billed, on the reporting date. Payments are due in up to 90 days.
The value of the whole transaction is the amount of the compensation expected in exchange for transferring promised goods or services. The value can be fixed or variable.
Revenue is recognised when the performance obligation is satisfied, i.e. when control of a good or service is transferred to a customer. Control means that the customer has the ability to direct the use of and obtain substantially all of the main benefits from the asset and the ability to prevent others from directing the use of and obtaining the benefits from the asset. With services where performance obligations are met gradually, the Group and the Company recognise revenue on a monthly basis in the amount that directly corresponds to the value of the part of the obligation fulfilled up to that moment. On the basis of services rendered or the transfer of goods to the customer, the Group and the Company recognise revenue in the accounting period in which the services or transfer of goods are performed and in the amount they are entitled to charge.
Discounts granted upon contract signing are allocated between all performance obligations and are deferred over the contract term. All discounts granted subsequently are recognised in the period for which they were granted, as a revenue decline. Revenue is recognised in a net amount, exclusive of value added tax, other taxes and any sales-related discounts.
Revenue relating to the mobile segment includes revenue from connection fees, subscriptions, conversations, messages, data transfer, roaming out and additional services (e.g. service with added value, M-vrata), and revenue from the sale of mobile phones and accessories.
Revenue from the sale of prepaid cards is deferred and recognised in the period when the customer uses prepaid services. Should the customer fail to make use of them, the revenue is recognised when the validity of an individual prepaid account expires.
Revenue from the fixed-line segment comprises revenue from connection fees, subscriptions, conversations, and revenue from the sale of merchandise. Fixed-line services comprise revenue from broadband services, classic fixed-line phone services and Centrex, fixed-line data services (services with added value), data communication, IT-services and goods, and revenue from other telecommunications services.
Connection fees in the mobile and fixed-line segment are recorded in the period in which the connection of the customer is completed. Subscriptions are charged on a monthly basis. Revenue from services with added value is disclosed on the net basis in the amount of the contractual commission. Revenue from IT services and goods (e.g. system integrations, cloud computing, management of integrated IT solutions) is recorded depending on the contractual relationship with the customer. For providing services and maintenance thereof, the revenue is charged on a monthly basis or deferred in the contract period. Revenue generated from the sale of licences or IT products is recognised in the period when the sale is made.
Revenue from wholesale market comprises broad-band access, stream broad-band access, network interconnection, lease of network, national tracking, and foreign inter-operator services.
Revenue from network interconnection is recognised based on the estimated value expected in view of the traffic performed in the previous month. Monthly differences between estimated and actual revenue arise mostly as a result of the tolerance allowed with data about traffic, and the price changes. The tolerance allowed differs from one contract to another, amounting to a maximum of 2% of the contractual value. These differences are included in profit or loss when the actual balance of revenue is established.
Revenue is recognised on the gross basis, as the Group provides services by means of own network and equipment, based on contractually defined prices. Revenue is recognised in the period in which the services are rendered.
Other revenue and other merchandise of the Telekom Slovenije Group include revenue generated through network construction and maintenance by GVO, business IT solutions provided by Avtenta, salt and related products of the company Soline, and multi-media contents of TSmedia.
With services where performance obligations are met gradually (e.g. telecommunication network construction and maintenance), the Group recognises revenue on a monthly basis in the amount that directly corresponds to the value of the part of the company’s obligation fulfilled up to that moment. The Group measures gradual progress towards complete fulfilment of performance obligation by applying the output method. The Group has contracts in place under which the interim situation in terms of the work done is established on a monthly basis. Based on the completed situations confirmed by the customer, a monthly invoice is issued and revenue is recognised.
Other revenue and other merchandise of Telekom Slovenije include costs of income from rendering support services for subsidiaries, lease of premises and equipment, tourism, other non-telecommunication services, and income from the sale of material and other merchandise.
In all previously mentioned cases, the Group and the Company observe the policy of concurrent recognition of revenue and costs in the period when the service is rendered or goods sold, regardless of when the payment is made.
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.
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.
Revenue from leases in the Group and in the Company is mainly related to the rental of networking equipment that meets the criteria for leases under IFRS 16 and relates mainly to co-locations, rental of premises and base stations. Revenue from leases is recognized on a straight-line basis over the term of the contracts and is disclosed under the item Revenue from sales.
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.
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.
The statement of cash flows is compiled using the indirect method based on items of the balance sheet as at 31 December 2023 and 31 December 2022, statement or profit or loss for 2023, and additional information necessary to make adjustments of cash inflows and outflows.
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:
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.
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.
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.
Current trade receivables are not discounted due to their short-term nature. Upon initial recognition, their cost is decreased by expected credit losses.
In financial liabilities relating to borrowings, the fair value does not deviate from the amortised cost.
As at the reporting date, the Telekom Slovenije Group comprises the controlling company Telekom Slovenije and the following subsidiaries:
| SUBSIDIARY COMPANIES | Share in equity in EUR thousand | Share in voting rights in % | Tax rate % | Profit or loss in EUR | Title | Address | Country | Activity |
|---|---|---|---|---|---|---|---|---|
| GVO, gradnja in vzdrževanje telekomunikacijskih omrežij, d.o.o. | 29,433 | 100% | 19% | 1,381 | construction, maintenance | Cigaletova 10, Ljubljana | Slovenia | works and management of telecommunications |
| Avtenta, napredne poslovne rešitve, d.o.o. | 3,145 | 100% | 19% | 293 | system integrator | Stegne 19, Ljubljana | Slovenia | multimedia and internet content |
| TSmedia, medijske vsebine in storitve, d.o.o. | 347 | 100% | 19% | 72 | production of salt and preservation | Cigaletova 15, Ljubljana | Slovenia | and management of a landscape park |
| SOLINE Pridelava soli, d.o.o. | 412 | 100% | 19% | -465 | paper and cardboard tubes | Seča 115, Portorož | Slovenia | |
| TSinpo, d.o.o. | 128 | 100% | 19% | 30 | telecommunication services | Litostrojska cesta 58 A | Slovenia | |
| Optic-Tel, d.o.o. | 6,261 | 100% | 19% | 272 | telecommunication services | Cigaletova 10, Ljubljana | Slovenia | |
| Infratel, d.o.o. | 5,130 | 100% | 19% | 8 | telecommunication services | Cigaletova 10, Ljubljana | Slovenia | |
| USTANOVA SRČNI SKLAD | 21 | 100% | 19% | 0 | humanitarian organisation | Cigaletova 10, Ljubljana | Slovenia |
| SUBSIDIARY COMPANIES | Share in equity in EUR thousand | Share in voting rights in % | Tax rate % | Profit or loss in EUR | Title | Address | Country | Activity |
|---|---|---|---|---|---|---|---|---|
| IPKO Telecommunications LLC | 51,669 | 100% | 10% | 21,886 | telecommunication services | Lagija Ulpiana, Rruga 9, Prishtina | Kosovo | |
| SIOL, d.o.o. | 849 | 100% | 20% | 34 | telecommunication services | Margaretska 3, Zagreb | Croatia | |
| SiOL d.o.o. | 2,280 | 100% | 10% | 239 | telecommunication services | Fra Anđela Zvizdovića 1, Sarajevo | Bosnia and Herzegovina | |
| SIOL, d.o.o. | 2,736 | 100% | 9% | 116 | telecommunication services | Džordža Vašingtona 12, Podgorica | Montenegro | |
| SIOL, d.o.o. | 1,602 | 100% | 10% | 86 | telecommunication services | Naum Naumovski 13, Skopje | North Macedonia |
In March 2022, GVO started the process of liquidating subsidiary GVO GmbH in Germany. The liquidation procedure ended on 25 September 2023 with the deletion of the company from the companies register in Germany. As of that date, the company was also excluded from the consolidated statements of the Telekom Slovenije Group for the period presented. The exclusion of the company has no significant impact on the consolidated statements of the Telekom Slovenije Group.
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.
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.
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.
| in EUR thousand | Eliminations and adjustments* | I–XII 2023 | I–XII 2022 | I–XII 2023 | I–XII 2022 | I–XII 2023 | I–XII 2022 |
|---|---|---|---|---|---|---|---|
| Sales revenue | 609,832 | 578,200 | 85,081 | 73,921 | 0 | 0 | |
| Inter-segment sales | 89,336 | 92,585 | 9,540 | 9,050 | -98,876 | -101,635 | |
| Total segment income | 699,168 | 670,785 | 94,621 | 82,971 | -98,876 | -101,635 | |
| Other operating income | 11,806 | 4,886 | 1,448 | 1,946 | 0 | 0 | |
| Costs of goods and material sold | -88,948 | -84,014 | -3,064 | -2,534 | 0 | 0 | |
| Costs of materials and energy | -28,108 | -20,349 | -2,263 | -2,227 | 0 | 0 | |
| Costs of services | -189,285 | -187,881 | -22,399 | -20,622 | 0 | 0 | |
| Labour costs | -119,154 | -111,182 | -6,974 | -6,676 | 0 | 0 | |
| Depreciation/amortisation | -139,287 | -140,061 | -25,144 | -26,029 | 0 | 0 | |
| Other operating expenses | -17,786 | -6,147 | -1,617 | -869 | 0 | 0 | |
| Total operating expenses | -582,568 | -549,634 | -61,461 | -58,957 | 0 | 0 | |
| Operating profit per segment | 128,406 | 126,037 | 34,608 | 25,960 | -98,876 | -101,635 | |
| Finance income | 2,015 | 3,505 | |||||
| Finance expenses | -18,661 | -8,442 | |||||
| Profit before tax | 47,492 | 45,425 | |||||
| Corporate income tax | -4,890 | -5,020 | |||||
| Deferred tax | 4,463 | -2,899 | |||||
| Net profit for the period | 47,065 | 37,506 |
| Eliminations and adjustments* | 31 Dec 2023 | 31 Dec 2022 | Segment assets | Slovenia | Other countries | Total | |||
|---|---|---|---|---|---|---|---|---|---|
| 1,350,732 | 1,314,368 | 135,536 | 138,163 | -168,402 | -177,193 | ||||
| 1,317,866 | 1,275,338 | Segment liabilities | 675,667 | 664,662 | 75,429 | 100,423 | -91,868 | -101,424 | |
| 659,228 | 663,661 |
EUR 84,975 thousand of income from other countries, which as at 31 December stands at EUR 85,081 thousand, refers to Kosovo, where the Group has two subsidiaries.
2023, stand at EUR 121,176 thousand for the state of Kosovo.
| in EUR thousand | Slovenia | Other countries | Total |
|---|---|---|---|
| Mobile services on end-customer market | 214,335 | 54,965 | 269,300 |
| Fixed-line telephone services on end-customer market | 192,624 | 21,418 | 214,042 |
| Additional services | 5,166 | 0 | 5,166 |
| Wholesale market | 165,495 | 8,698 | 174,193 |
| Other revenue and merchandise | 32,212 | 0 | 32,212 |
| Total sales revenue | 609,832 | 85,081 | 694,913 |
| in EUR thousand | Slovenia | Other countries | Total |
|---|---|---|---|
| Revenue from sale of services | 515,560 | 82,025 | 597,585 |
| Revenue from the sale of goods | 94,272 | 3,056 | 97,328 |
| Total sales revenue | 609,832 | 85,081 | 694,913 |
| Telekom Slovenije | Telekom Slovenije Group | in EUR thousand | I–XII 2023 | I–XII 2022 | ||||
|---|---|---|---|---|---|---|---|---|
| Mobile services on end-customer market | 269,300 | 254,896 | ||||||
| Fixed-line telephone services on end-customer market | 214,042 | 211,735 | ||||||
| Additional services | 5,166 | 4,310 | ||||||
| Wholesale market | 174,193 | 154,579 | ||||||
| Other revenue and merchandise | 32,212 | 26,601 | ||||||
| Total sales revenue | 694,913 | 652,121 |
Revenue from sales in the Telekom Slovenije Group amounted to EUR 694.9 million in 2023, which is EUR 42,792 more than in 2022.
The largest portion of the revenue falls within the scope of IFRS 15 “Revenue from Contracts with Customers”. The products and services of the Telekom Slovenije Group and Company are offered to customers based on contracts that cover both services and contracts which combine equipment for accessing services and/or other service offerings. The revenue is recognized in the net amount, without VAT and other taxes collected on behalf of the state.
The management expects that 73.7% of the transaction price allocated to unfulfilled obligations arising from 12- or 24-month customer subscriptions as at 31 December 2023 will be recognised as revenue in the amount of EUR 75,739 thousand in the next reporting period. The remaining 26.2% or EUR 26,912 thousand will be recognized in the financial year 2025, and 0.02% or EUR 182 thousand will be recognized in the financial year 2026.
In 2022, 77% or EUR of 64,271 thousand of the transaction price allocated to unfulfilled obligations arising from 12- or 24-month customer subscriptions was recognized as revenue in the following reporting period. The remaining 23%, i.e. EUR 19,360 thousand, will be recognised in financial year 2024.
All other contracts with customers are valid for a period of one year or less or are charged according to the agreed term. The Group and the Company used the practical expedient provided under IFRS 15.121 and chose not to disclose information about the unsatisfied performance obligations.
In 2023, the Group and the Company recognised EUR 5,262 thousand in revenue (in 2022: EUR 4,211 thousand), which was included at the start of the period under the balance of liabilities from contracts with customers.
In the mobile services on end-customer market, revenue has increased mostly due to the higher number of subscribers and higher revenue from mobile merchandise in Telekom Slovenije. Compared to the same period last year, IPKO's revenue also increased, mainly due to more users.
improved sales of IT and broadband services in Telekom Slovenije, despite lower revenue from classic voice telephony, which is a result of a decline in traditional connections.
The Telekom Slovenije Group generated EUR 13,130 thousand of revenue from leases in 2023 and EUR 10,659 thousand in 2022.
The Company Telekom Slovenije generated EUR 14,220 thousand of revenue from leases in 2023 and EUR 11,673 thousand in 2022.
| Maturity | Telekom Slovenije Group | Telekom Slovenije | ||
|---|---|---|---|---|
| 2023 | 2022 | 2023 | 2022 | |
| Up to 1 year | 7,510 | 7,623 | 8,613 | 8,529 |
| 1 to 2 years | 7,385 | 7,460 | 8,488 | 8,366 |
| 2 to 3 years | 6,792 | 7,336 | 7,896 | 7,716 |
| 3 to 4 years | 10,794 | 6,746 | 11,897 | 7,126 |
| 4 to 5 years | 5,934 | 10,709 | 7,037 | 11,144 |
| Over 5 years | 26,482 | 31,642 | 125,387 | 33,319 |
| Telekom Slovenije | Telekom Slovenije Group | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| I–XII 2022 | I–XII 2023 | I–XII 2022 | I–XII 2023 | ||||||
| Government grants and other aids | 6,492 | 1,634 | 4,105 | 720 | |||||
| Gains on disposal of property, plant and equipment | 2,927 | 1,150 | 3,882 | 1,331 | |||||
| Revaluation operating income | 4 | 20 | 0 | 2 | |||||
| Revenue from write-off of liabilities from contracts with customers | 636 | 29 | 43 | 29 | |||||
| Revenue from humanitarian foundation | 93 | 54 | 0 | 0 | |||||
| Other revenue | 3,102 | 3,945 | 1,598 | 1,143 | |||||
| Total other operating income | 13,254 | 6,832 | 9,628 | 3,225 |
Government grants and other aids mainly include state aid measures for mitigating the energy crisis. To this end, the state of Slovenia has adopted the Act Governing Aid to Businesses to Mitigate Impact of Energy Crisis (ZPGOPEK), which also provides for a temporary aid measure for the economy, which enables beneficiaries to subsidize increased energy costs in 2023.
In the Telekom Slovenije Group, the companies Telekom Slovenije and GVO recognized income from state aid in the period from January to December 2023 in accordance with ZPGOPEK:
| Company | Total income during the period in EUR thousand |
|---|---|
| Telekom Slovenije | 3,572 |
| GVO | 60 |
| Total | 3,632 |
The gains on disposal of property, plant and equipment in Telekom Slovenije mainly refer to the sale of the network to GVO in the amount of EUR 1,163 thousand. The Group's profit is mainly related to the sale of equipment to clients.
Other income relates mainly to received compensations, income from payment reminders, received court-related expenses and other expenses.
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, laptops, IT goods. Other goods consist of household equipment, material and electricity. In 2023, the cost of goods sold of the Telekom Slovenije Group and the company Telekom Slovenije totalled EUR 92,012 thousand (in 2022: EUR 86,548 thousand) and EUR 96,933 thousand (in 2022: EUR 94,836 thousand).
| Telekom Slovenije Group | Telekom Slovenije | |||||||
|---|---|---|---|---|---|---|---|---|
| I–XII 2023 | I–XII 2022 | I–XII 2023 | I–XII 2022 | |||||
| Costs of material | 4,502 | 5,251 | 1,593 | 1,536 | ||||
| Costs of energy | 25,869 | 17,325 | 22,637 | 14,252 | ||||
| Total costs of materials and energy | 30,371 | 22,576 | 24,230 | 15,788 |
| Telekom Slovenije Group | Telekom Slovenije | I–XII 2023 | I–XII 2022 | I–XII 2023 | I–XII 2022 |
|---|---|---|---|---|---|
| Telecommunications services | 110,469 | 107,783 | 108,288 | 106,200 | |
| Costs of leased lines, networks and platforms | 5,271 | 4,942 | 8,560 | 7,783 | |
| Multimedia contents | 10,736 | 10,484 | 10,013 | 9,849 | |
| Costs of subcontractors | 25,366 | 26,671 | 19,062 | 19,794 | |
| Maintenance of property, plant and equipment | 20,256 | 20,225 | 20,773 | 20,836 | |
| Other services | 39,586 | 38,398 | 32,226 | 31,300 | |
| Total costs of services | 211,684 | 208,503 | 198,922 | 195,762 |
The Group’s costs of services in 2023 are higher by EUR 3,181 thousand compared to 2021. In 2023, income from domestic wholesale was higher, resulting in higher costs of telecommunication services. The costs of leased lines, networks and platforms, and the costs of maintenance of property, plant and equipment are slightly higher.
The costs of services at the Company Telekom Slovenije are EUR 3,160 thousand higher in 2023 compared to the previous year, mainly the costs of telecommunications and multimedia services. The costs of leased lines, networks and platforms are also slightly higher, while the costs of maintenance of property, plant and equipment are somewhat lower.
Costs of other services mainly comprise advertising and sponsorship costs in the amount of EUR 8,009 thousand (in 2022: EUR 8,427 thousand), costs of intellectual and personal services in the amount of EUR 6,517 thousand (in 2022: EUR 6,485 thousand), and insurance premiums in the amount of EUR 3,407 thousand (in 2022: EUR 3,301 thousand). Costs of research and development amounted to EUR 16 thousand in 2023 (2022: EUR 4 thousand).
| Telekom Slovenije | Telekom Slovenije Group | I–XII 2023 | I–XII 2022 | I–XII 2023 | I–XII 2022 |
|---|---|---|---|---|---|
| Salaries and compensations | 106,701 | 98,470 | 81,493 | 75,826 | |
| Social security contributions | 20,497 | 19,555 | 16,312 | 15,327 | |
| - of which pension insurance contributions | 13,073 | 12,609 | 10,332 | 9,675 | |
| Other labour costs | 14,741 | 13,826 | 10,688 | 10,309 | |
| Provisions for anniversary bonuses | 242 | 697 | 175 | 558 | |
| Provisions for termination benefits | 767 | 1,541 | 253 | 1,121 | |
| - of which provisions for restructuring | 450 | 1,157 | 0 | 792 | |
| Capitalised own products and services | -16,820 | -16,231 | -5,145 | -4,695 | |
| Total labour costs | 126,128 | 117,858 | 103,776 | 98,446 |
In the Telekom Slovenije Group, of the total capitalised own products and services in the amount of EUR 18,694 thousand (in 2022: EUR 18,489 thousand), EUR 16,820 thousand were disclosed under labour costs (in 2022: EUR 16,231 thousand). The rest is disclosed under Other operating expenses (Note 13 Finance income and finance expenses). Services rendered for the needs of the Group are capitalised among intangible assets and property, plant and equipment (Notes 16 Intangible assets and 17 Property, plant and equipment).
In 2023, the average number of employees by hours worked in the Telekom Slovenije Group was 3,156 (in 2022: 3,158 employees).
In the company Telekom Slovenije, of the total capitalised own products and services in the amount of EUR 5,933 thousand (in 2022: EUR 5,515 thousand), EUR 5,145 thousand were disclosed under labour costs (in 2022: EUR 4,695 thousand). The rest is disclosed under Other operating expenses (Note 13 Finance income and finance expenses). Services rendered for the needs of the Group are capitalised among intangible assets and property, plant and equipment (Notes 16 Intangible assets and 17 Property, plant and equipment).
In 2023, the average number of employees by hours worked in the company Telekom Slovenije was 2,043 (in 2022: 2,033 employees).
| Telekom Slovenije Group | Telekom Slovenije | Level/ Number of employees | 31 Dec 2023 | 31 Dec 2022 | 31 Dec 2023 | 31 Dec 2022 |
|---|---|---|---|---|---|---|
| Level I–IV | 273 | 281 | 95 | 99 | ||
| Level V | 933 | 947 | 666 | 684 | ||
| Level VI | 667 | 664 | 380 | 384 | ||
| Level VII | 1,208 | 1,188 | 835 | 824 | ||
| Level VIII | 172 | 182 | 107 | 112 | ||
| Total | 3,253 | 3,262 | 2,083 | 2,103 |
| Telekom Slovenije | Telekom Slovenije Group | I–XII 2023 | I–XII 2022 | I–XII 2023 | I–XII 2022 |
|---|---|---|---|---|---|
| Amortisation of intangible assets | 71,751 | 72,357 | 57,953 | 59,477 | |
| Depreciation of property, plant and equipment | 79,735 | 80,861 | 67,624 | 67,283 | |
| Amortisation of right-of-use assets |
| Telekom Slovenije Group | Telekom Slovenije | in EUR thousand | I–XII 2023 | I–XII 2022 | I–XII 2023 | I–XII 2022 |
|---|---|---|---|---|---|---|
| Provisions | 1,588 | -20 | 1,640 | 0 | ||
| on disposal of intangible assets and | 717 | 760 | 710 | 758 | ||
| property, plant and equipment | 902 | 1,380 | 852 | 1,266 | ||
| Impairment of trade and other receivables | 4,701 | 2,545 | 3,739 | 1,968 | ||
| Adjustment and write-off of contract assets | 657 | 617 | 655 | 609 | ||
| Impairment of intangible assets and | 8,736 | 953 | 2,910 | 189 | ||
| property, plant and equipment | Impairment of leased (ROU) assets | 204 | 35 | 49 | 24 | |
| Capitalised own products and services | -1,874 | -2,258 | -788 | -820 | ||
| Other humanitarian expenditure – Srčni | 91 | 62 | 0 | 0 | ||
| sklad | Other expenses | 3,681 | 2,942 | 3,248 | 2,920 | |
| Total other operating expenses | 19,403 | 7,016 | 13,015 | 6,914 |
Expenditure for provisions increased in 2023, due to the creation of new provisions for lawsuits. For more details, please see Note 32 Provisions.
In the Group, expenses arising from impairments of intangible and tangible assets increased, which is mostly related to impairments due to floods. At the beginning of August, a part of Slovenia was struck by catastrophic floods. The cable infrastructure in the affected areas was flooded, damaged or broken, both at the level of the backbone network and the NGA part of the network. The damage occurred in Telekom Slovenije's network and the newly built OŠO5 network owned by GVO. Some functional locations were also completely destroyed or flooded.
The Group recognized EUR 5,560 thousand of expenses arising from this – EUR 1,324 thousand in Telekom Slovenije and EUR 4,236 thousand in GVO.
Other expenses mostly relate to the cost of compensation for the use of land.
| Telekom Slovenije Group | Telekom Slovenije | in EUR thousand | I–XII 2023 | I–XII 2022 | I–XII 2023 | I–XII 2022 | |
|---|---|---|---|---|---|---|---|
| Income from dividends | 166 | 240 | 272 | 1,185 | |||
| interest income | 1,720 | 1,261 | 5,104 | 2,860 | |||
| Net exchange gains | 0 | 0 | 12 | 11 | |||
| Revenue from write-off of liabilities for right-of-use | 114 | 62 | 112 | 62 | |||
| assets | Other finance income | 15 | 1,942 | 11 | 1,853 | ||
| Total finance income | 2,015 | 3,505 | 5,511 | 5,971 | |||
| Interest expenses | 14,445 | 5,431 | 14,436 | 5,427 | |||
| Foreign exchange net losses | 2 | 384 | 0 | 416 | |||
| Impairments and write-offs of investments | 0 | 0 | 1,800 | 556 | |||
| Interest expenses from lease liabilities | 2,829 | 2,122 | 2,313 | 2,072 | |||
| Other finance expenses | 1,385 | 505 | 668 | 137 | |||
| Total finance expenses | 18,661 | 8,442 | 19,217 | 8,608 | |||
| Net cash | -16,646 | -4,937 | -13,706 | -2,637 |
The Company Telekom Slovenije’s finance income includes dividends received and received interest on loans granted to subsidiaries.
The Company Telekom Slovenije’s finance expenses for 2023 include the effects of impairment of investments in subsidiaries TSmedia, Soline and SIOL Zagreb. Based on the valuation prepared by certified business appraisers, in 2023 the Company impaired the financial investment in the subsidiary TSmedia in the amount of EUR 1,290 thousand, the investment in the subsidiary Soline in the amount of EUR 421 thousand and the investment in the subsidiary company SIOL Zagreb in the amount of EUR 89 thousand. Therefore, the Company Telekom Slovenije recognized finance expenses (Impairment and write-offs of investments). The investment in the subsidiary TSmedia was impaired in 2022 as well, in the amount of EUR 300 thousand, and the investment in the subsidiary Soline was also impaired in the amount of EUR 256 thousand. Please see more in Note 19 Investments in subsidiaries.
| Telekom Slovenije Group | Telekom Slovenije | in EUR thousand | I–XII 2023 | I–XII 2022 | I–XII 2023 | I–XII 2022 | |
|---|---|---|---|---|---|---|---|
| Current tax payable | -4,890 | -5,020 | -2,062 | -2,349 | |||
| Deferred tax assets/ liabilities | 4,463 | -2,899 | 3,080 | -2,705 | |||
| Other taxes not disclosed under other items | 0 | 0 | 0 | 0 | |||
| Total tax | -427 | -7,919 | 1,018 | -5,054 |
Reconciliation of the actual and accounted for expenses for tax with deferred tax considering the effective tax rate
| Telekom Slovenije Group | Telekom Slovenije | in EUR thousand | 2023 | 2022 | 2023 | 2022 | |
|---|---|---|---|---|---|---|---|
| Profit/loss before tax | 47,492 | 45,425 | 22,846 | 25,847 | |||
| Income tax using the prescribed tax rate | -7,178 | -7,645 | -4,341 | -4,911 | |||
| Tax-free dividends received | 30 | 43 | 49 | 214 | |||
| Tax relief used in the current period | 956 | 924 | 737 | 683 | |||
| Reversal of tax relief used in previous periods | -1 | -22 | 0 | -21 | |||
| Change in tax rate | 5,748 | 0 | 5,700 | 0 | |||
| Non-deductible expenses | -2,237 | -1,919 | -2,029 | 0 | |||
| Deductible expenses/revenues |
| Telekom Slovenije Group | Telekom Slovenije | Through statement of profit or comprehensive income | Through statement of profit or comprehensive loss | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| in EUR thousand | 2023 | 2022 | 2023 | 2022 | |||||||
| Intangible assets, and property, plant and equipment | 24,390 | 21,251 | 3,139 | 24,352 | 21,243 | 3,109 | |||||
| Investments | 399 | 640 | -294 | 53 | 399 | 640 | -294 | 53 | |||
| Operating receivables | 3,691 | 2,732 | 959 | 3,550 | 2,607 | 943 | |||||
| Inventories | 0 | 0 | 0 | 0 | 0 | 0 | |||||
| Tax loss and unused tax reliefs | 13,430 | 14,376 | -946 | 13,430 | 14,376 | -946 | |||||
| Provisions | 293 | 325 | -32 | 117 | 191 | -74 | |||||
| Deferred tax assets | 42,203 | 39,324 | 2,826 | 53 | 41,848 | 39,057 | 2,738 | 53 |
Deferred tax assets from intangible assets and property, plant and equipment arise from the difference between business-related and tax depreciation.
As at 31 December 2023, the Group and the Company have EUR 13,430 thousand of deferred tax assets from unused investment incentives. In their tax declarations, the Group and the Company took into account the investment incentives from the previous years and used deferred tax assets in the amount of EUR 2,777 thousand. Deferred tax assets from investment incentives for 2023 were partially formed.
The Group and the Company take into consideration two criteria for tax planning: strategic business plan and applicable tax legislation. Future taxable profit is derived from the strategic business plan approved for the 2024–2028 period.
In tax planning, the Group and the Company prepared the plan of using tax deductions in the next five year period, stating that the formed deferred tax assets from investment incentives will be fully used in the planned period.
| Telekom Slovenije Group | Telekom Slovenije | Through statement of profit or comprehensive income | Through statement of profit or comprehensive loss | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| in EUR thousand | 2023 | 2022 | 2023 | 2022 | ||||||||
| Intangible assets, and property, plant and equipment | 304 | 1,600 | -1,296 | 0 | 0 | 0 | ||||||
| Investments | 0 | 293 | 0 | -293 | 0 | 293 | 0 | -293 | ||||
| Deferred tax | 304 | 1,893 | -1,296 | -293 | 0 | 293 | 0 | -293 |
| in EUR thousand | Telekom Slovenije Group | Telekom Slovenije |
|---|---|---|
| Balance as at 1 January 2022 | 42,012 | 41,761 |
| Utilisation | -8,374 | -8,351 |
| Reversed | -922 | -789 |
| Creation | 6,608 | 6,436 |
| Balance as at 31 December 2022 | 39,324 | 39,057 |
| Utilisation | -8,487 | -8,427 |
| in EUR thousand | Telekom Slovenije | Telekom Slovenije Group | ||||
|---|---|---|---|---|---|---|
| Balance as at 1 January 2022 | 1,710 | 321 | ||||
| Reversed | -194 | -194 | ||||
| Creation | 377 | 166 | ||||
| Balance as at 31 December 2022 | 1,893 | 293 | ||||
| Reversed | -1,780 | -476 | ||||
| Creation | 191 | 183 | ||||
| Balance as at 31 December 2023 | 304 | 0 |
In Telekom Slovenije, the amount of deductible temporary differences, unused tax losses and unused investment incentives for which deferred tax assets were not formed, is:
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:
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 for 2023 amount to EUR 932 thousand for the Telekom Slovenije Group (in 2022: EUR 1,387 thousand).
Income tax receivables for 2023 amount to EUR 442 thousand for the company Telekom Slovenije (in 2022: EUR 1,286 thousand).
The current income tax payables for 2023 amount to EUR 7 thousand for the Telekom Slovenije Group (in 2022: EUR 221 thousand).
The Company Telekom Slovenije has no income tax payables amount in 2022 and in 2023.
Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to ordinary shareholders by the weighted average number of ordinary shares of Telekom Slovenije Group, excluding ordinary shares owned by the Company or the Group.
The Company do not have any dilutive potential ordinary shares, which is why the basic and diluted earnings per share are equal.
| I–XII 2023 | I–XII 2022 | I–XII 2023 | I–XII 2022 | |
|---|---|---|---|---|
| No. of all shares* | 6,535,478 | 6,535,478 | 6,535,478 | 6,535,478 |
| Weighted average of own shares | -36,836 | -36,040 | -36,836 | -36,040 |
| Weighted average of shares excluding own | 6,498,642 | 6,499,438 | 6,498,642 | 6,499,438 |
*Number of ordinary shares of Telekom Slovenije Group
| I–XII 2023 | I–XII 2022 | I–XII 2023 | I–XII 2022 | |
|---|---|---|---|---|
| Net profit or loss from going concern | 47,065 | 37,506 | 23,864 | 20,793 |
| Weighted average number of ordinary shares for earnings per share* | 6,498,642 | 6,499,438 | 6,498,642 | 6,499,438 |
| Earnings per share from going concern | 7.24 | 5.77 | 3.67 | 3.20 |
Concessions refer to the right to use the GSM, UMTS and LTE frequency spectrum on the territory of the Republic of Slovenia, and GSM in Kosovo in the total amount of EUR 92,485 thousand (31 Dec 2022: EUR 100,738 thousand). Under concessions and licences, the Group also discloses program rights and licences for the use of computer software. Details on important concessions are disclosed in the table below:
| Concession contract | Date of authorisation | Period | Consideration in EUR thousand |
|---|---|---|---|
| Concession contract for the use of the radio frequency spectrum for the UMTS/IMT-2000 services | 31 May 2014 | until 31 May 2039 | 91,870 |
| Decision on the allocation of radio frequencies for LTE 800 MHz, UMTS 2100 MHz | 26 May 2014 | from 31 May 2014 to 31 May 2029 | 26,769 |
| Decision on the allocation of radio frequencies for GSM 900 and 1800 MHz, LTE 2600 MHz | 26 May 2014 | from 4 January 2016 to 4 January 2031 | 37,705 |
| Decision on the allocation of radio frequencies in the 700 MHz, 1500 MHz, 3600 MHz and GHz band | 15 June 2021 | until 15 June 2036 | 28,958 |
| Decision on the allocation of radio frequencies in the 2100 MHz band | 22 September 2021 | until 22 September 2036 | 19,302 |
| Decision on the allocation of radio frequencies in the 2100 MHz band | 9 April 2023 | until 9 April 2036 | 4,329 |
| Renewal of permit for the frequency 900 - 1800 MHz in Kosovo | 30 July 2019 | until 30 July 2039 | 11,734 |
| Granting of 2x5 (1730 - 1735 MHz & 1825 - 1830 MHz) license in the 1800 MHz frequency band | 7 January 2021 | until 7 January 2039 | 1,355 |
| Granting of 2x10 MHz licence in the 800 MHz frequency band | 15 February 2023 | until 15 February 2043 | 3,467 |
| Granting of 1x80 MHz licence in 3.6 GHz | 15 February 2023 | until 15 February 2043 | 1,865 |
| Granting of 1x20 MHz licence in 3.6 GHz | 15 February 2023 | until 15 February 2040 | 443 |
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
Goodwill of EUR 3,718 thousand in the Telekom Slovenije Group was generated during the acquisition of TSinpo (EUR 115 thousand) in 2017 and the takeover and acquisition of the company Debitel in 2015 (EUR 3,602 thousand).
At the end of 2023, the Group and the Company made an assessment of the recoverable amount of goodwill occurring in the acquisition of Debitel. The valuation was conducted by a certified business appraiser.
| In EUR thousand | Goodwill | Concessions and licences | Contracts with customers | Computer software | Other intangible assets | Assets under construction | Total | |
|---|---|---|---|---|---|---|---|---|
| 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 2023 | 49,737 | 436,637 | 24,670 | 255,783 | 67,606 | 5,244 | 839,677 |
| In EUR thousand | Goodwill | Concessions and licences | Contracts with customers | Computer software | Other intangible assets | Assets under construction | Total |
|---|---|---|---|---|---|---|---|
| Balance as at 1 January 2023 | 46,019 | 293,491 | 10,267 | 222,667 | 50,328 | 267 | 623,039 |
| Impairments and write-offs | 0 | -35,015 | -7,105 | -17,550 | -46 | 0 | -59,716 |
| Other transfers* | 0 | 283 | 0 | -560 | 0 | 0 | -277 |
| Depreciation/Amortisation | 0 | 40,434 | 7,626 | 21,768 | 1,923 | 0 | 71,751 |
| Balance as at 31 December 2023 | 46,019 | 299,193 | 10,788 | 227,451 | 52,205 | 267 | 635,923 |
| In EUR thousand | Goodwill | Concessions and licences | Contracts with customers | Computer software | Other intangible assets | Assets under construction | Total |
|---|---|---|---|---|---|---|---|
| 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 2023 | 3,718 | 137,444 | 13,882 | 28,332 | 15,401 | 4,977 | 203,754 |
| In EUR thousand | Goodwill | Concessions and licences | Contracts with customers | Computer software | Other intangible assets | Assets under construction | Total | |
|---|---|---|---|---|---|---|---|---|
| Cost | Balance as at 1 January 2022 | 49,737 | 430,342 | 20,518 | 303,079 | 67,366 | 12,795 | 883,837 |
| Increases | 0 | 20,031 | 0 | 0 | 2 | 34,959 | 54,992 |
|---|---|---|---|---|---|---|---|
| Assets generated in the Group | 0 | 0 | 0 | 0 | 0 | 1,558 | 1,558 |
| Transfer into use | 0 | 9,747 | 7,785 | 18,264 | 252 | -36,048 | 0 |
| Impairments and write-offs | 0 | -38,442 | -7,161 | -67,434 | 0 | -2 | -113,039 |
| Other transfers* | 0 | 0 | 0 | 43 | 0 | 0 | 43 |
| Balance as at 31 December 2022 | 49,737 | 421,678 | 21,142 | 253,952 | 67,620 | 13,262 | 827,391 |
| Balance as at 1 January 2022 | 46,019 | 292,001 | 10,088 | 266,959 | 48,387 | 267 | 663,721 |
|---|---|---|---|---|---|---|---|
| Impairments and write-offs | 0 | -38,442 | -7,161 | -67,432 | 0 | 0 | -113,035 |
| Other transfers* | 0 | 0 | 0 | -4 | 0 | 0 | -4 |
| Depreciation/Amortisation | 0 | 39,932 | 7,340 | 23,144 | 1,941 | 0 | 72,357 |
| Balance as at 31 December 2022 | 46,019 | 293,491 | 10,267 | 222,667 | 50,328 | 267 | 623,039 |
| Balance as at 1 January 2022 | 3,718 | 138,341 | 10,430 | 36,120 | 18,979 | 12,528 | 220,116 |
|---|---|---|---|---|---|---|---|
| Balance as at 31 December 2022 | 3,718 | 128,187 | 10,875 | 31,285 | 17,292 | 12,995 | 204,352 |
As at 31 December 2023, the Group disclosed contractual commitments for intangible assets in the amount of EUR 7,179 thousand (31 December 2022: EUR 4,411 thousand), which relate to the set-up of computer systems and to software licences.
| Cost of | Goodwill | Concessions | Obtaining Licences | Contracts | Computer Software | Other Intangible Assets | Assets Under Construction | Total |
|---|---|---|---|---|---|---|---|---|
| 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 |
| 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 |
| In EUR thousand | Cost of Intangible assets | Total | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Goodwill | Concessions and licences | Computer software | Other intangible assets | Assets under construction | |||||||
| Balance as at 1 January 2022 | 3,602 | 288,174 | 20,518 | 289,120 | 19,100 | 12,480 | 632,994 | ||||
| Increases | 0 | 0 | 0 | 0 | 0 | 33,239 | 33,239 | ||||
| Assets generated in the company | 0 | 0 | 0 | 0 | 0 | 1,202 | 1,202 | ||||
| Transfer into use | 0 | 8,712 | 7,785 | 17,447 | 252 | -34,196 | 0 | ||||
| Impairments and write-offs | 0 | -14,627 | -7,161 | -66,320 | 0 | -2 | -88,110 | ||||
| Other transfers* | 0 | 0 | 0 | 42 | 0 | 0 | 42 | ||||
| Balance as at 31 December 2022 | 3,602 | 282,259 | 21,142 | 240,289 | 19,352 | 12,723 | 579,367 |
| In EUR thousand | Allowance | Total | |||||
|---|---|---|---|---|---|---|---|
| Goodwill | Concessions and licences | Computer software | Other intangible assets | Assets under construction | |||
| Balance as at 1 January 2022 | 0 | 175,120 | 10,088 | 251,371 | 16,164 | 0 | 452,743 |
| Impairments and write-offs | 0 | -14,628 | -7,161 | -66,318 | 0 | 0 | -88,107 |
| Other transfers* | 0 | 0 | 0 | -5 | 0 | 0 | -5 |
| Depreciation/Amortisation | 0 | 29,820 | 7,340 | 21,932 | 385 | 0 | 59,477 |
| Balance as at 31 December 2022 | 0 | 190,312 | 10,267 | 206,980 | 16,549 | 0 | 424,108 |
| In EUR thousand | Carrying amount | Total | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Goodwill | Concessions and licences | Computer software | Other intangible assets | Assets under construction | |||||||
| Balance as at 1 January 2022 | 3,602 | 113,054 | 10,430 | 37,749 | 2,936 | 12,480 | 180,251 | ||||
| Balance as at 31 December 2022 | 3,602 | 91,947 | 10,875 | 33,309 | 2,803 | 12,723 | 155,259 |
The Group companies have unlimited property rights on intangible assets, which are free of encumbrances.
As at 31 December 2023, the Company disclosed contractual commitments for intangible assets in the amount of EUR 8,740 thousand (31 December 2022: EUR 5,565 thousand), which relate to the set-up of computer systems and to software licences.
As capitalised non-current deferred costs of development, the Group and the Company disclose internal and external project development or development activities or activities that meet the criteria for intangible asset recognition. Key to the assessment is the professional feasibility of the project, the purpose of completion and the usability or marketability to thus generate future economic benefits.
Development projects are strategic projects that are planned in advance and provided with sufficient technical, financial and human resources that are key to the completion of the project, with the results of these projects being significantly improved products, processes, systems or services before use.
| In EUR thousand | Computer software | Total | |||||
|---|---|---|---|---|---|---|---|
| Own work – development | Other intangible assets | External – development | Other non-current assets | Asset under construction | |||
| Cost | Balance as at 1 January 2023 | 10,261 | 4 | 39,635 | 318 | 944 | 51,162 |
| Increases - external development | 0 | 0 | 0 | 0 | 1,301 | 1,301 | |
| Increases - own development | 0 | 0 | 0 | 0 | 226 | 226 | |
| Transfer from assets under construction | 455 | 0 | 1,594 | 0 | -2,049 | 0 | |
| Impairments and write-offs | -591 | 0 | -1,073 | 0 | -126 | -1,790 | |
| Balance as at 31 December 2023 | 10,125 | 4 | 40,156 | 318 | 296 | 50,899 |
| Allowance | Computer software | Total | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Own work – development | Other intangible assets | External – development | Other non-current assets | Asset under construction | |||||||
| Balance as at 1 January 2023 | 9,663 | 4 | 34,007 | 112 | 0 | 43,786 | |||||
| Impairments and write-offs | -592 | 0 | -840 | 0 | 0 | -1,432 | |||||
| Depreciation/Amortisation | 435 | 0 | 3,592 | 16 | 0 | 4,043 | |||||
| Balance as at 31 December 2023 | 9,506 | 4 | 36,759 | 128 | 0 | 46,397 |
| Carrying amount | Computer software | Total | |||||
|---|---|---|---|---|---|---|---|
| Own work – development | Other intangible assets | External – development | Other non-current assets | Asset under construction | |||
| 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 |
| In EUR thousand | Computer software | Total | |||||
|---|---|---|---|---|---|---|---|
| Own work – development | Other intangible assets | External – development | Other non-current assets | Asset under construction | |||
| Cost | Balance as at 1 January 2022 | 10,101 | 4 | 38,368 | 318 | 773 | 49,564 |
| Increases - external development | 0 | 0 | 1 | 0 | 1,248 | 1,249 | |
| Increases - own development | 0 | 0 | 0 | 0 | 390 | 390 | |
| Transfer from assets under construction | 167 | 0 | 1,299 | 0 | -1,466 | 0 | |
| Impairments and write-offs | -7 | 0 | -34 | 0 | 0 | -41 | |
| Balance as at 31 December 2022 | 10,261 | 4 | 39,634 | 318 | 945 | 51,162 |
| Allowance | Computer software | Total | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Own work – development | Other intangible assets | External – development | Other non-current assets | Asset under construction | |||||||
| Balance as at 1 January 2022 | 9,146 | 4 | 29,262 | 96 | 0 | 38,508 | |||||
| Impairments and write-offs | -8 | 0 | -33 | 0 | 0 | -41 | |||||
| Depreciation/Amortisation | 523 | 0 | 4,780 | 16 | 0 | 5,319 | |||||
| Balance as at 31 December 2022 | 9,662 | 4 | 34,009 | 112 | 0 | 43,786 |
| Carrying amount | Computer software | Total | |||||
|---|---|---|---|---|---|---|---|
| Own work – development | Other intangible assets | External – development | Other non-current assets | Asset under construction | |||
| Balance as at 1 January 2022 | 955 | 0 | 9,106 | 222 | 773 | 11,056 |
| In EUR thousand | Cost | Total | ||||
|---|---|---|---|---|---|---|
| Computer software | Other intangible assets | External – Own work – development | Other non-current assets | Asset under construction | ||
| Balance as at 1 January 2023 | 8,116 | 4 | 37,782 | 318 | 521 | 46,741 |
| Increases - external development | 0 | 0 | 0 | 0 | 1,213 | 1,213 |
| Increases - own development | 0 | 0 | 0 | 0 | 226 | 226 |
| Transfer from assets under construction | 133 | 0 | 1,594 | 0 | -1,727 | 0 |
| Impairments and write-offs | -591 | 0 | -1,073 | 0 | 0 | -1,664 |
| Balance as at 31 December 2023 | 7,658 | 4 | 38,303 | 318 | 233 | 46,516 |
| In EUR thousand | Allowance | Total | ||||
|---|---|---|---|---|---|---|
| Computer software | Other intangible assets | External – Own work – development | Other non-current assets | Asset under construction | ||
| Balance as at 1 January 2023 | 7,760 | 4 | 32,288 | 112 | 0 | 40,164 |
| Impairments and write-offs | -591 | 0 | -840 | 0 | 0 | -1,431 |
| Depreciation/Amortisation | 295 | 0 | 3,488 | 16 | 0 | 3,799 |
| Balance as at 31 December 2023 | 7,464 | 4 | 34,936 | 128 | 0 | 42,532 |
| In EUR thousand | Cost | Total | ||||
|---|---|---|---|---|---|---|
| Computer software | Other intangible assets | External – Own work – development | Other non-current assets | Asset under construction | ||
| Balance as at 1 January 2022 | 7,992 | 4 | 36,625 | 318 | 513 | 45,452 |
| Increases - external development | 0 | 0 | 0 | 0 | 1,173 | 1,173 |
| Increases - own development | 0 | 0 | 0 | 0 | 157 | 157 |
| Transfer from assets under construction | 131 | 0 | 1,191 | 0 | -1,322 | 0 |
| Impairments and write-offs | -7 | 0 | -34 | 0 | 0 | -41 |
| Balance as at 31 December 2022 | 8,116 | 4 | 37,782 | 318 | 521 | 46,741 |
| In EUR thousand | Allowance | Total | ||||
|---|---|---|---|---|---|---|
| Computer software | Other intangible assets | External – Own work – development | Other non-current assets | Asset under construction | ||
| Balance as at 1 January 2022 | 7,367 | 4 | 27,675 | 96 | 0 | 35,142 |
| Impairments and write-offs | -7 | 0 | -34 | 0 | 0 | -41 |
| Depreciation/Amortisation | 400 | 0 | 4,647 | 16 | 0 | 5,063 |
| Balance as at 31 December 2022 |
Significant increases in property, plant and equipment in use in 2023 refer mostly to the construction and upgrade of cable network and acquirement of cable lines, telecommunications and other equipment. The item of other equipment comprises modems, other equipment at clients, computer equipment, furniture, vehicles and other equipment.
Fixed assets generated in the Group and the Company relate to services rendered for the Group and the Company and mostly refer to the set-up of base stations, air-conditioners, electrical power devices and terminal equipment at clients.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
Borrowing costs that may be directly attributed to the acquisition, construction, or production of a qualifying asset are included in the cost of that asset. Borrowing costs related to the acquisition and construction of the assets are capitalised if they are related to the acquisition of a material asset, the construction of which would require more than 12 months. In 2023, 96% of investments were completed within less than 12 months, including in the cable network construction segment, as these were mainly upgrades to existing networks. In 2023, the Group and the Company utilised a specific-purpose loan for the acquisition or construction of optical network assets. The Company and the Group recorded the costs of taking out a specific-purpose loan for the construction of the optical network, i.e. the amount of interest from the drawing of the loan, as an increase in investments for the construction of an optical network in the total amount of EUR 458 thousand. In 2023, the Group and the Company classified the costs of taking out non-purpose loans as costs for the period.
Contractual commitments for property, plant and equipment as at 31 December 2023 amounted to EUR 4,884 thousand (31 December 2022: EUR 5,983 thousand) and mostly refer to the set-up of telecommunications network.
| In EUR thousand | Assets | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Land, buildings, and cable lines | Mobile network | Telephone exchanges | Other equipment | Assets under construction | Total | ||||
| Cost | 518,088 | 1,219,276 | 84,890 | 300,538 | 355,401 | 27,491 | 61 | 2,505,745 | |
| Balance as at 1 January 2023 | 0 | -4 | 0 | 0 | -3 | 0 | 0 | -7 | |
| Increases | 0 | 640 | 0 | 0 | 1,069 | 79,506 | 186 | 81,401 | |
| Fixed assets generated in the Group | 0 | 0 | 0 | 0 | 0 | 16,205 | 0 | 16,205 | |
| 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* | 839 | -161 | 448 | 0 | 9 | 9 | 0 | 1,144 | |
| Balance as at 31 December 2023 | 528,488 | 1,261,294 | 82,980 | 311,798 | 350,596 | 6,921 | 247 | 2,542,324 | |
| 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 presentation currency | 0 | -1 | 0 | 0 | -1 | 0 | 0 | -2 |
| In EUR thousand | Land, buildings, and cable lines | Total | |||||||
|---|---|---|---|---|---|---|---|---|---|
| Mobile network | Telephone exchanges | Other equipment | Equipment under construction | Other | |||||
| Cost | Balance as at 1 January 2022 | 490,082 | 1,190,292 | 88,832 | 315,485 | 385,390 | 40,823 | 268 | 2,511,172 |
| Difference from translation to the presentation currency | 0 | 2 | 0 | 0 | 0 | 0 | 0 | 2 | |
| Increases | 104 | 2,907 | 0 | 0 | 1,205 | 78,396 | -185 | 82,427 | |
| Fixed assets generated in the Group | 0 | 0 | 0 | 0 | 0 | 15,565 | 0 | 15,565 | |
| Transfer into use | 29,243 | 28,475 | 1,260 | 12,520 | 35,409 | -106,907 | 0 | 0 | |
| Impairments and write-offs | -1,354 | -2,319 | -5,212 | -27,461 | -66,582 | -302 | 0 | -103,230 | |
| Other transfers* | 13 | -81 | 10 | -6 | -21 | -84 | -22 | -191 | |
| Balance as at 31 December 2022 | 518,088 | 1,219,276 | 84,890 | 300,538 | 355,401 | 27,491 | 61 | 2,505,745 |
| In EUR thousand | Land, buildings, and cable lines | Total | |||||||
|---|---|---|---|---|---|---|---|---|---|
| Mobile network | Telephone exchanges | Other equipment | Equipment under construction | Other | |||||
| Balance as at 1 January 2022 | 216,747 | 951,360 | 82,613 | 266,825 | 315,178 | 11,390 | 0 | 1,844,113 | |
| Difference from translation to the presentation currency | 0 | 1 | 0 | 0 | 1 | 0 | 0 | 2 | |
| Increases | 0 | 0 | 0 | 0 | 10 | 0 | 0 | 10 | |
| Impairments and write-offs | -489 | -2,057 | -5,197 | -27,387 | -63,551 | 0 | 0 | -98,681 | |
| Depreciation/Amortisation | 13,152 | 22,408 | 2,029 | 13,820 | 29,452 | 0 | 0 | 80,861 | |
| Other transfers* | 5 | -42 | 36 | -6 | -54 | 0 | 0 | -61 | |
| Balance as at 31 December 2022 | 229,415 | 971,670 | 79,481 | 253,252 | 281,036 | 11,390 | 0 | 1,826,244 |
| Balance as at 1 January | 273,335 | 238,932 | 6,219 | 48,660 | 70,212 | 29,433 | 268 | 667,059 |
|---|---|---|---|---|---|---|---|---|
| Balance as at 31 December 2022 | 288,673 | 247,606 | 5,409 | 47,286 | 74,365 | 16,101 | 61 | 679,501 |
| Land, buildings, and cable network lines | Mobile network | Telephone exchanges | Other equipment | Assets under construction | Total |
|---|---|---|---|---|---|
| 7,399 | 0 | 0 | 0 | 2 | 7,647 |
| Land, buildings, and cable network lines | Mobile network | Telephone exchanges | Other equipment | Assets under construction | Total |
|---|---|---|---|---|---|
| 7,786 | 0 | 0 | 0 | 88 | 7,874 |
As at 31 December 2023, the Company disclosed contractual commitments for property, plant and equipment in the amount of EUR 14,291 thousand (31 December 2022: EUR 16,450 thousand), which relate to network construction, purchase of telecommunications equipment, acquisition and construction of real estate, and purchase of hardware and other equipment.
| Land, buildings, and cable network lines | Mobile network | Telephone exchanges | Other equipment | Assets under construction | Total | ||
|---|---|---|---|---|---|---|---|
| Cost | |||||||
| Balance as at 1 January 2023 | 488,699 | 1,139,346 | 83,665 | 185,472 | 337,505 | 20,541 | 2,255,228 |
| Increases | 0 | 0 | 0 | 0 | 0 | 67,523 | 67,523 |
| Assets generated in the Company | 0 | 0 | 0 | 0 | 0 | 4,713 | 4,713 |
| Transfer into use | 11,179 | 23,180 | 1,087 | 12,831 | 29,904 | -78,181 | 0 |
| Impairments and write-offs | -1,604 | -3,876 | -3,648 | -2,896 | -36,023 | -286 | -48,333 |
| Other transfers* | 5,124 | -161 | 448 | 0 | 9 | 1 | 5,421 |
| Balance as at 31 December 2023 | 503,398 | 1,158,489 | 81,552 | 195,407 | 331,395 | 14,311 | 2,284,552 |
| Allowance | |||||||
|---|---|---|---|---|---|---|---|
| Balance as at 1 January 2023 | 220,231 | 921,561 | 78,259 | 159,497 | 270,748 | 0 | 1,650,296 |
| Increases | 85 | 0 | 5 | 8 | 67 | 0 | 165 |
| Impairments and write-offs | -1,237 | -2,318 | -3,634 | -2,870 | -32,262 | 0 | -42,321 |
| Depreciation/Amortisation | 12,984 | 18,779 | 1,817 | 7,217 | 26,827 | 0 | 67,624 |
| Other transfers* | 810 | -14 | 267 | 0 | 9 | 0 | 1,072 |
| Balance as at 31 December 2023 | 232,873 | 938,008 | 76,714 | 163,852 | 265,389 | 0 | 1,676,836 |
| 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 |
| in EUR thousand | Land, buildings, and cable lines | Mobile networks | Telephone exchanges | Other equipment | Assets under construction | Total | ||
|---|---|---|---|---|---|---|---|---|
| Cost | Balance as at 1 January 2022 | 460,462 | 1,115,166 | 87,656 | 204,955 | 364,922 | 44,080 | 2,277,241 |
| Increases | 0 | 0 | 0 | 0 | 0 | 67,136 | ||
| Fixed assets generated in the Company | 0 | 0 | 0 | 0 | 0 | 4,313 | ||
| Transfer into use | 29,198 | 25,571 | 1,212 | 6,435 | 32,270 | -94,686 | 0 | |
| Disposals | -974 | -1,309 | -5,212 | -25,913 | -59,709 | -302 | -93,419 | |
| Other transfers* | 13 | -82 | 9 | -5 | 22 | 0 | -43 | |
| Balance as at 31 Dec 2022 | 488,699 | 1,139,346 | 83,665 | 185,472 | 337,505 | 20,541 | 2,255,228 |
| Impairment | |||||||
|---|---|---|---|---|---|---|---|
| Balance as at 1 January 2022 | 208,124 | 904,603 | 81,397 | 177,141 | 301,265 | 0 | 1,672,530 |
| Increases | 0 | 0 | 0 | 0 | 8 | 0 | 8 |
| Disposals | -522 | -1,139 | -5,197 | -25,841 | -56,829 | 0 | -89,528 |
| Depreciation/Amortisation | 12,624 | 18,139 | 2,025 | 8,202 | 26,293 | 0 | 67,283 |
| Other transfers* | 5 | -42 | 34 | -5 | 11 | 0 | 3 |
| Balance as at 31 Dec 2022 | 220,231 | 921,561 | 78,259 | 159,497 | 270,748 | 0 | 1,650,296 |
| Carrying amount | |||||||
|---|---|---|---|---|---|---|---|
| Balance as at 1 January 2022 | 252,338 | 210,563 | 6,259 | 27,814 | 63,657 | 44,080 | 604,711 |
| Balance as at 31 Dec 2022 | 268,468 | 217,785 | 5,406 | 25,975 | 66,757 | 20,541 | 604,932 |
The Company and the Group have unlimited property rights on property, plant and equipment, which are free of encumbrances.
| in EUR thousand | Land, buildings, and cable lines | Mobile networks | Telephone exchanges | Other equipment | Assets under construction | Other | Total |
|---|---|---|---|---|---|---|---|
| Assets rent out under operating lease | 12,392 | 0 | 0 | 0 | 2 | 0 | 12,394 |
| in EUR thousand | Land, buildings, and cable lines | Mobile networks | Telephone exchanges | Other equipment | Assets under construction | Other | Total |
|---|---|---|---|---|---|---|---|
| Assets rent out under operating lease | 6,985 | 0 | 0 | 0 | 9 | 0 | 6,994 |
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.
In EUR thousand
| Base Technological | ||||||||
| stations | premises – Lease of easement | premises and lease | Vehicles | Lease of land | Other lines | Total | ||
| Cost | Balance as at 1 January 2023 | 74,036 | 8,929 | 9,719 | 2,687 | 22,246 | 4,224 | 121,841 |
| Difference from translation to the presentation currency | 0 | 0 | 0 | 0 | -88 | 0 | -88 | |
| Increases - contract modifications | 8,781 | 714 | 1,721 | 327 | 176 | 98 | 11,817 | |
| Transfer to use - new contracts | 3,564 | 322 | 872 | 664 | 1,119 | 60 | 6,601 | |
| Decreases - contract modifications | -477 | -305 | -353 | -96 | -90 | 0 | -1,321 | |
| Decreases | -503 | -146 | 0 | -478 | 0 | -37 | -1,164 | |
| Other transfers | 0 | 0 | 11 | 0 | 0 | 0 | 11 | |
| Balance as at 31 December 2023 | 85,401 | 9,514 | 11,970 | 3,104 | 23,363 | 4,345 | 137,697 |
In EUR thousand
| Base Technological | ||||||||
| stations | premises – Lease of easement | premises and lease | Vehicles | Lease of land | Other lines | Total | ||
| 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 |
In EUR thousand
| Base Technological | ||||||||
| stations | premises – Lease of easement | premises and lease | Vehicles | Lease of land | Other lines | Total | ||
| Carrying amount | Balance as at 1 January 2023 | 46,288 | 5,592 | 3,796 | 1,467 | 15,881 | 2,395 | 75,419 |
| Balance as at 31 December 2023 | 50,369 | 5,421 | 4,383 | 1,735 | 15,253 | 2,044 | 79,205 |
In EUR thousand
| Base Technological | ||||||||
| stations | premises – Lease of easement | premises and lease | Vehicles | Lease of land | Other lines | Total | ||
| Cost | Balance as at 1 January 2022 | 65,619 | 8,507 | 9,243 | 2,257 | 20,557 | 3,846 | 110,029 |
| Difference from translation to the presentation currency | 0 | 0 | 0 | 0 | -2 | 0 | -2 | |
| Increases - contract modifications | 5,986 | 392 | 592 | -14 | 3,955 | 88 | 10,999 | |
| Transfer to use - new contracts | 3,919 | 204 | 356 | 1,098 | -2,172 | 290 | 3,695 | |
| Decreases | -1,488 | -175 | -472 | -654 | -109 | 0 | -2,898 | |
| Other transfers | 0 | 1 | 0 | 0 | 17 | 0 | 18 | |
| Balance as at 31 December 2022 | 74,036 | 8,929 | 9,719 | 2,687 | 22,246 | 4,224 | 121,841 |
In EUR thousand
| Base Technological | ||||||||
| stations | premises – Lease of easement | premises and lease | Vehicles | Lease of land | Other lines | Total | ||
| Allowance | Balance as at 1 January 2022 | 21,501 | 2,533 | 4,641 | 1,310 | 4,739 | 1,335 | 36,059 |
| Decreases | -1,268 | -89 | -258 | -652 | -109 | 0 | -2,376 | |
| Depreciation/Amortisation | 7,515 | 893 | 1,540 | 562 | 1,724 | 494 | 12,728 | |
| Other transfers | 0 | 0 | 0 | 0 | 11 | 0 | 11 | |
| Balance as at 31 December 2022 | 27,748 | 3,337 | 5,923 | 1,220 | 6,365 | 1,829 | 46,422 |
In EUR thousand
| Base Technological | ||||||||
| stations | premises – Lease of easement | premises and lease | Vehicles | Lease of land | Other lines | Total | ||
| Carrying amount | Balance as at 1 January 2022 | 44,118 | 5,974 | 4,602 | 947 | 15,818 | 2,511 | 73,970 |
| Balance as at 31 December 2022 | 46,288 | 5,592 | 3,796 | 1,467 | 15,881 | 2,395 | 75,419 |
| In EUR thousand | Cost | Vehicles | Other lines | Total | |||
|---|---|---|---|---|---|---|---|
| Balance as at 1 January 2023 | 60,695 | 7,994 | 4,054 | 2,456 | 44,461 | 633 | 120,293 |
| Increases - contract modifications | 2,389 | 185 | 13 | 133 | 10,368 | 78 | 13,166 |
| Transfer to use - new contracts | 3,564 | 322 | 872 | 599 | 1,120 | 0 | 6,477 |
| Decreases | -322 | -125 | 0 | -435 | 0 | 0 | -882 |
| Balance as at 31 December 2023 | 66,326 | 8,376 | 4,939 | 2,753 | 55,949 | 711 | 139,054 |
| In EUR thousand | Balance as at 1 January 2023 | Decreases | Depreciation/Amortisation | Balance as at 31 December 2023 |
|---|---|---|---|---|
| 21,882 | -141 | 6,288 | 28,029 | |
| 2,884 | -62 | 687 | 3,509 | |
| 2,100 | 0 | 733 | 2,833 | |
| 1,063 | -415 | 552 | 1,200 | |
| 13,759 | 0 | 3,734 | 17,493 | |
| 478 | 0 | 155 | 633 | |
| 42,167 | -618 | 12,149 | 53,698 |
| 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 |
| In EUR thousand | Cost | Vehicles | Other lines | Total | |||
|---|---|---|---|---|---|---|---|
| Balance as at 1 January 2022 | 58,640 | 7,678 | 3,785 | 2,054 | 40,163 | 645 | 112,965 |
| Increases - contract modifications | -485 | 322 | 41 | -13 | 3,780 | -12 | 3,633 |
| Transfer to use - new contracts | 3,919 | 164 | 339 | 1,039 | 627 | 0 | 6,088 |
| Decreases | -1,379 | -170 | -111 | -624 | -109 | 0 | -2,393 |
| Balance as at 31 December 2022 | 60,695 | 7,994 | 4,054 | 2,456 | 44,461 | 633 | 120,293 |
| In EUR thousand | Balance as at 1 January 2022 | Decreases | Depreciation/Amortisation | Balance as at 31 December 2022 |
|---|---|---|---|---|
| 16,933 | -1,170 | 6,119 | 21,882 | |
| 2,188 | -85 | 781 | 2,884 | |
| 1,638 | -110 | 572 | 2,100 | |
| 1,163 | -624 | 524 | 1,063 | |
| 10,054 | -110 | 3,815 | 13,759 | |
| 321 | 0 | 157 | 478 | |
| 32,297 | -2,099 | 11,968 | 42,166 |
| Balance as at 1 January 2022 | 41,706 | 5,490 | 2,147 | 891 | 30,109 | 324 | 80,667 |
|---|---|---|---|---|---|---|---|
| Balance as at 31 December 2022 | 38,813 | 5,110 | 1,954 | 1,393 | 30,702 | 155 | 78,126 |
| In EUR thousand | Telekom Slovenije Group | Telekom Slovenije | 31 Dec 2023 | 31 Dec 2022 |
|---|---|---|---|---|
| Depreciation costs of the right-of-use assets | 12,807 | 12,728 | 12,149 | 11,968 |
| Interest expenses from lease liabilities | 2,829 | 2,122 | 2,313 | 2,072 |
| Expenses related to variable lease payments not included in the measuring of lease liabilities | 42 | 36 | 40 | 33 |
| Total | 15,678 | 14,886 | 14,502 | 14,073 |
Telekom Slovenije holds a 100% interest in the following subsidiaries, the value of which, as at 31 December 2023, amounts to:
| In EUR thousand | 31 Dec 2022 | Impairment | 31 Dec 2023 |
|---|---|---|---|
| GVO | 5,758 | 0 | 5,758 |
| Avtenta | 1,323 | 0 | 1,323 |
| Institution | Value | Impairment | Recoverable Amount |
|---|---|---|---|
| TSmedia | 3,460 | -1,290 | 2,170 |
| IPKO | 20,730 | 0 | 20,730 |
| Soline | 891 | -421 | 470 |
| SIOL Zagreb | 501 | -89 | 412 |
| SIOL Podgorica | 2,620 | 0 | 2,620 |
| SIOL Sarajevo | 1,710 | 0 | 1,710 |
| SIOL Skopje | 1,005 | 0 | 1,005 |
| SIOL Beograd | 100 | 0 | 100 |
| TSinpo | 419 | 0 | 419 |
| Institution Ustanova Srčni sklad | 3 | 0 | 3 |
| SIOL Prishtina | 200 | 0 | 200 |
| Investments in subsidiaries | 38,720 | -1,800 | 36,920 |
For 2023, based on checking for signs of impairment, the Company opted to assess the recoverable amount for its subsidiaries TSmedia, TSinpo, Soline, SIOL Zagreb, SIOL Prishtina and SIOL Sarajevo. The recoverable amounts of individual companies were assessed by a certified business appraiser. The appraisals showed that the investments in subsidiaries TSmedia, Soline and SIOL Zagreb needed to be impaired. The impairment was recognised in the statement of profit or loss in the amount of EUR 1,800 thousand.
The recoverable amount of the 100% share capital in TSmedia for the purpose of financial reporting amounts to EUR 2,170 thousand. During the value assessment, the present value method of expected free cash flows for a five-year period based on actual plans was used, excluding indebtedness. The recoverable amount equals fair value less the costs of sale. The discount rate applied in the projection was 12.03% and the assessed long-term growth rate was 2.50%. Based on the valuation, the Company impaired the investment in TSmedia in the amount of EUR 1,290 thousand (Note 13 Finance income and finance expenses). Fair value measurement is classified in level 3 of the fair value measurement hierarchy.
| Impact of change in assumption | Growth / WACC | -1% | +1% |
|---|---|---|---|
| -1% | 2,293 | 2,683 | |
| +1% | 1,834 | 2,060 |
The recoverable amount of the 100% share capital in Soline for the purpose of financial reporting equals EUR 470 thousand. During the value-in-use assessment, the present value method of expected free cash flows for a five-year period based on actual plans was used, excluding indebtedness. The discount rate applied in the projection was 14.97% and the assessed long-term growth rate was 2.0%. Based on the valuation, the Company impaired the investment in Soline in the amount of EUR 421 thousand (Note 13 Finance income and finance expenses). Fair value measurement is classified in level 3 of the fair value measurement hierarchy.
| Impact of change in assumption | Growth / WACC | -1% | +1% |
|---|---|---|---|
| -1% | 597 | 669 | |
| +1% | 314 | 350 |
scenario. Based on the valuation, the Company impaired the investment in SIOL Zagreb in the amount of EUR 89 thousand (Note 13 Finance income and finance expenses). Fair value measurement is classified in level 3 of the fair value measurement hierarchy.
| Impact of change in assumption | WACC |
|---|---|
| -1% | 433 |
| +1% | 393 |
The valuations made by the Company for other investments in subsidiaries did not indicate a need for impairment as the recoverable amount is higher than the carrying amount.
| Telekom Slovenije Group | Telekom Slovenije | In EUR thousand | 31 Dec 2023 | 31 Dec 2022 | 31 Dec 2023 | 31 Dec 2022 |
|---|---|---|---|---|---|---|
| Investments in other shares and interests | 2,454 | 2,423 | 2,454 | 2,423 | ||
| Loans to companies | 0 | 0 | 19,558 | 46,073 | ||
| - of which to companies in the Group | 0 | 0 | 19,558 | 46,073 | ||
| Loans to employees | 2 | 9 | 2 | 9 | ||
| Other non-current financial assets | 16 | 16 | 0 | 0 | ||
| Total non-current investments | 2,472 | 2,448 | 22,014 | 48,505 |
Other investments in shares and interests are classified as investments measured at fair value through other comprehensive income. Of the total value of investments, EUR 2,170 thousand (31 December 2022: EUR 2,139 thousand) relates to investments which are listed on the stock exchange. Investments are not pledged as collateral and are free of encumbrances.
| Telekom Slovenije Group | Telekom Slovenije | In EUR thousand | 31 Dec 2023 | 31 Dec 2022 | 31 Dec 2023 | 31 Dec 2022 | ||
|---|---|---|---|---|---|---|---|---|
| Short-term loans to companies | 0 | 0 | 17,958 | 11,480 | ||||
| * of which to companies in the Group | 0 | 0 | 17,958 | 11,480 | ||||
| Loans to employees | 7 | 16 | 8 | 16 | ||||
| Other current financial assets | 2 | 2 | 0 | 0 | ||||
| Fair value of interest rate swap | 0 | 19 | 0 | 20 | ||||
| Bank deposits | 1,037 | 800 | 36 | 0 | ||||
| Total current investments | 1,046 | 837 | 18,002 | 11,516 |
Due to the immateriality of the amount of the interest rate swap, the Group and the Company did not prepare any additional disclosures related to risk management.
| Telekom Slovenije Group | Telekom Slovenije | In EUR thousand | 31 Dec 2023 | 31 Dec 2022 | 31 Dec 2023 | 31 Dec 2022 |
|---|---|---|---|---|---|---|
| Long-term loans granted | 2 | 9 | 19,560 | 46,082 | ||
| Loans granted | 0 | 0 | 19,558 | 46,073 | ||
| Loans to employees | 2 | 9 | 2 | 9 | ||
| Short-term loans granted | 7 | 16 | 17,966 | 11,496 | ||
| Part of long-term loan falling due in 12 months | - | 0 | 0 | 16,026 | 10,666 | |
| Part of long-term loan falling due in 12 months | - | 7 | 16 | 8 | 16 | |
| Short-term loans granted and interest | 0 | 0 | 1,932 | 814 | ||
| Closing balance - loans granted | 9 | 25 | 37,526 | 57,578 |
The maturity of long-term and short-term loans as well as other data are disclosed in Note 45 Financial instruments and financial risk management.
The interest rate for loans granted to employees ranges between 4.08% and 6.23%. At Telekom Slovenije, long-term loans refer entirely to loans to subsidiaries. The interest rate for loans granted to subsidiaries ranges between 4.346% and 7.832%. For more details see Note 45 Financial instruments and financial risk management.
| Telekom Slovenije Group | Telekom Slovenije | In EUR thousand | 31 Dec 2023 | 31 Dec 2022 | 31 Dec 2023 | 31 Dec 2022 | |
|---|---|---|---|---|---|---|---|
| Non-current contract assets | 5,183 | 3,963 | 4,753 | 3,572 | |||
| Other non-current contract assets | -1,004 | -339 | -1,004 | -338 | |||
| Total other non-current assets | 4,179 | 3,624 | 3,749 | 3,234 |
In 2023, the Group impaired contract assets in the amount of EUR 657 thousand (in 2022: EUR 617 thousand), and the company Telekom Slovenije EUR 655 thousand (in 2022: EUR 609 thousand).
| Telekom Slovenije Group | Telekom Slovenije | In EUR thousand | 31 Dec 2023 | 31 Dec 2022 | 31 Dec 2023 | 31 Dec 2022 | |
|---|---|---|---|---|---|---|---|
| Prepaid leases | 31 | 35 | 15 | 20 | |||
| Other non-current assets | 2,683 | 3,258 | 2,772 | 3,674 | |||
| Total other non-current assets | 2,714 | 3,293 | 2,787 | 3,694 |
Other non-current assets represent the balance of non-current deferred costs of license maintenance and similar costs.
| In EUR thousand | Land | Buildings | Total | Land | Buildings | Total |
|---|---|---|---|---|---|---|
| Cost Balance as at 1 January 2023 | 1,986 | 6,211 | 8,197 | 4,958 | 6,400 | 11,358 |
| Decreases | 0 | -78 | -78 | 0 | -78 | -78 |
| Other transfers | -206 | -961 | -1,167 | -3,178 | -1,590 | -4,768 |
| Balance as at 31 December 2023 | 1,780 | 5,172 | 6,952 | 1,780 | 4,732 | 6,512 |
| Allowance Balance as at 1 January 2023 | 1,689 | 2,204 | 3,893 | 1,689 | 2,212 | 3,901 |
|---|---|---|---|---|---|---|
| Decreases | 0 | -20 | -20 | 0 | -20 | -20 |
| Depreciation/Amortisation | 0 | 138 | 138 | 0 | 143 | 143 |
| Other transfers | 0 | -355 | -355 | 0 | -808 | -808 |
| Balance as at 31 December 2023 | 1,689 | 1,967 | 3,656 | 1,689 | 1,527 | 3,216 |
| Carrying amount 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 |
| Telekom Slovenije Group | Telekom Slovenije | |||||||
|---|---|---|---|---|---|---|---|---|
| In EUR thousand | ||||||||
| Cost Balance as at 1 January 2022 | 1,986 | 6,305 | 8,291 | 4,958 | 6,431 | 11,389 | ||
| Increases | 0 | 22 | 22 | 0 | 126 | 126 | ||
| Decreases | 0 | -116 | -116 | 0 | -157 | -157 | ||
| Balance as at 31 December 2022 | 1,986 | 6,211 | 8,197 | 4,958 | 6,400 | 11,358 |
| Allowance Balance as at 1 January 2022 | 1,689 | 2,057 | 3,746 | 1,689 | 2,059 | 3,748 |
|---|---|---|---|---|---|---|
| Depreciation/Amortisation | 0 | 147 | 147 | 0 | 153 | 153 |
| Balance as at 31 December 2022 | 1,689 | 2,204 | 3,893 | 1,689 | 2,212 | 3,901 |
| Carrying amount Balance as at 1 January 2022 | 297 | 4,248 | 4,545 | 3,269 | 4,372 | 7,641 |
|---|---|---|---|---|---|---|
| Balance as at 31 December 2022 | 297 | 4,007 | 4,304 | 3,269 | 4,188 | 7,457 |
The Group and the Company carry investment property at cost less accumulated depreciation and impairment losses. Fair value of investment property is presented in Note 40 Book and fair values.
In 2023, Telekom Slovenije reclassified investment properties into tangible fixed assets, including the land and building of Hotel Tisa totaling 811 thousand EUR and the land and building in Sečovlje salt pans totaling 3,148 thousand EUR.
As of 31 December 2023, all investment properties are owned by Telekom Slovenije. Among the investment properties, the following are reported: a building on Vilharjeva Street totaling 3,123 thousand EUR, land and buildings in Rakovnik, and other apartments totaling 173 thousand EUR (compared to 196 thousand EUR in 2022). Lease agreements for apartments are concluded with individuals for an indefinite period with a notice period for termination by either party. Other lease agreements are concluded for a fixed period with the possibility of extension. The notice period ranges from 2 to 12 months.
The decrease in investment property relates to the sale of part of the building on Vilharjeva.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
Revenue generated on investment property in 2023, recognised in the Group’s statement of profit or loss, equalled EUR 404 thousand (2022: EUR 372 thousand). Costs associated with investment properties in 2023 amounted to 400 thousand EUR (2022: 345 thousand EUR).
The Group and the Company do not have any limited title to investment property, nor are investments subject to encumbrance.
As at 31 December 2023, assets held for sale include the value of land and buildings that the Group companies will no longer use for business purposes and which the companies’ managements decided to sell; the sale is planned and expected within the next 12 months.
| Telekom Slovenije Group | Telekom Slovenije | ||||
|---|---|---|---|---|---|
| In EUR thousand | Assets held for sale | Assets held for sale | |||
| Balance as at 1 January 2022 | 799 | 799 | |||
| Sale | -3 | -3 | |||
| Balance as at 31 December 2022 | 796 | 796 | |||
| Transfer to property, plant and equipment | -208 | -208 | |||
| Balance as at 31 December 2023 | 588 | 588 |
In 2023, Telekom Slovenije reclassified part of its assets from assets held for sale to property, plant and equipment.
| Telekom Slovenije Group | Telekom Slovenije | |||||||
|---|---|---|---|---|---|---|---|---|
| In EUR thousand | 31 Dec 2023 | 31 Dec 2022 | 31 Dec 2023 | 31 Dec 2022 | ||||
| Material | 11,366 | 10,707 | 9,676 | 8,804 | ||||
| Products | 891 | 664 | 0 | 0 | ||||
| Merchandise | 12,545 | 13,882 | 11,500 | 12,898 | ||||
| Total inventories | 24,802 | 25,253 | 21,176 | 21,702 |
In 2023, the Telekom Slovenije Group impaired and wrote off EUR 902 thousand of inventories (in 2022: EUR 1,380 thousand).
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.
| In EUR thousand | 31 Dec 2023 | Allowance | Net amount | Net amount |
|---|---|---|---|---|
| Non-current trade receivables | 19,620 | -96 | 19,524 | 18,952 |
| Other receivables | 161 | 0 | 161 | 299 |
| Total trade and other receivables | 19,781 | -96 | 19,685 | 19,251 |
| In EUR thousand | 31 Dec 2023 | 31 Dec 2022 | Gross amount | Allowance | Net amount | Net amount | |
|---|---|---|---|---|---|---|---|
| Trade receivables | 147,285 | -12,553 | 134,732 | 125,738 | |||
| Trade receivables due from foreign operators | 11,444 | -1,479 | 9,965 | 12,226 | |||
| Trade receivables due from domestic operators | 22,578 | -7,068 | 15,510 | 13,490 | |||
| Total trade receivables | 181,307 | -21,100 | 160,207 | 151,454 | |||
| Paid advances | 6,005 | 0 | 6,005 | 1,958 | |||
| VAT and other tax receivables | 2,487 | 0 | 2,487 | 2,954 | |||
| Other receivables | 1,424 | 0 | 1,424 | 1,314 | |||
| Total other receivables | 9,916 | 0 | 9,916 | 6,226 | |||
| Total trade and other receivables | 191,223 | -21,100 | 170,123 | 157,680 |
Trade receivables do not bear interest.
| In EUR thousand | 31 Dec 2023 | 31 Dec 2022 |
|---|---|---|
| Balance as at 1 January | -17,974 | -16,944 |
| Allowances during the year | -7,717 | -6,002 |
| Reversal of allowances | 3,918 | 4,070 |
| Write-offs | 577 | 902 |
| Closing balance | -21,196 | -17,974 |
| In EUR thousand | 31 Dec 2023 | Allowance | Net amount | Net amount |
|---|---|---|---|---|
| Non-current trade receivables | 19,620 | -96 | 19,524 | 18,952 |
| Other receivables | 160 | 0 | 160 | 294 |
| Total trade and other receivables | 19,780 | -96 | 19,684 | 19,246 |
| In EUR thousand | 31 Dec 2023 | 31 Dec 2022 | Gross amount | Allowance | Net amount | Net amount |
|---|---|---|---|---|---|---|
| Trade receivables | 131,218 | -7,507 | 123,711 | 116,856 | ||
| Receivables due from foreign operators | 12,128 | -1,482 | 10,646 | 12,830 | ||
| Receivables due from domestic operators | 24,781 | -7,079 | 17,702 | 16,130 | ||
| Total trade receivables | 168,127 | -16,068 | 152,059 | 145,816 | ||
| Paid advances and warranties | 5,934 | 0 | 5,934 | 1,832 | ||
| VAT and other tax receivables | 1,881 | 0 | 1,881 | 2,245 | ||
| Other receivables | 1,217 | 0 | 1,217 | 991 | ||
| Total other receivables | 9,032 | 0 | 9,032 | 5,068 | ||
| Total trade and other receivables | 177,159 | -16,068 | 161,091 | 150,884 |
| Telekom Slovenije Group | Telekom Slovenije | In EUR thousand | 31 Dec 2023 | 31 Dec 2022 | 31 Dec 2023 | 31 Dec 2022 |
|---|---|---|---|---|---|---|
| Contract assets from mobile and fixed-line segment | 7,645 | 6,225 | 7,645 | 6,225 | ||
| Other contract assets | 6,503 | 9,717 | 6,391 | 9,337 | ||
| Total current contract assets | 14,148 | 15,942 | 14,036 | 15,562 |
Current contract assets arise mainly from the sale of telecommunication services and goods, where customer contracts comprise the subscription fee and a subsidised service or goods and where customers commit to a 12-month contract period, and accrued revenue - roaming.
| Telekom Slovenije Group | Telekom Slovenije | In EUR thousand | 31 Dec 2023 | 31 Dec 2022 | 31 Dec 2023 | 31 Dec 2022 | |
|---|---|---|---|---|---|---|---|
| Deferred costs | 6,708 | 4,545 | 4,855 | 3,741 | |||
| Other | 35 | 0 | 0 | 0 | |||
| Total deferred assets | 6,743 | 4,545 | 4,855 | 3,741 |
Current deferred costs mainly include prepaid costs of system and license maintenance.
| Telekom Slovenije Group | Telekom Slovenije | In EUR thousand | 31 Dec 2023 | 31 Dec 2022 | 31 Dec 2023 | 31 Dec 2022 |
|---|---|---|---|---|---|---|
| Cash on hand and bank balances | 18,779 | 37,382 | 11,376 | 19,573 | ||
| Short-term bank deposits with maturity of up to three months | 36,700 | 0 | 33,000 | 0 | ||
| Total cash and cash equivalents | 55,479 | 37,382 | 44,376 | 19,573 |
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.
| 31 Dec 2023 | 31 Dec 2022 | Shareholder | Number of shares | Interest in % | Number of shares | Interest in % |
|---|---|---|---|---|---|---|
| Republic of Slovenia | 4,087,569 | 62.54% | 4,087,569 | 62.54% | ||
| Domestic and foreign natural persons* | 966,340 | 14.79% | 938,649 | 14.36% | ||
| Foreign legal entities | 410,583 | 6.28% | 407,335 | 6.23% | ||
| Kapitalska družba, d.d. | 365,175 | 5.59% | 365,175 | 5.59% | ||
| Slovenian Sovereign Holding (Slovenski državni holding d.d.) (SSH – SDH) | 277,839 | 4.25% | 277,839 | 4.25% | ||
| Domestic financial companies and funds | 247,339 | 3.78% | 271,723 | 4.16% | ||
| Domestic legal entities | 143,797 | 2.20% | 150,352 | 2.30% | ||
| Treasury shares | 36,836 | 0.56% | 36,836 | 0.56% | ||
| Total | 6,535,478 | 100% | 6,535,478 | 100% |
The balances and changes in equity items are presented in the statement of changes in equity. There were no changes in the number of issued shares in 2023.
The share premium may be used under the conditions and for the purpose set by the law. As at 31 December 2023, Telekom Slovenije's share premium amounted to EUR 180,956 thousand, of which EUR 126,135 thousand of share premium arises from the Company’s ownership transformation process. Share premium in the amount of EUR 54.821 thousand in substance represent revaluation surpluses. Share premium did not change in 2023.
Legal reserves 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.
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.
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 include retained net earnings brought forward from previous years and net profit or loss for the current year. Based on the resolution adopted by the General Meeting of Shareholders on 16 June 2023, the accumulated profit for 2022 in the amount of EUR 40,293 thousand was not distributed, as the distribution was not voted through at the General Meeting of Shareholders, thus all accumulated profit remained undistributed and increases the retained net earnings from previous years.
| in EUR | |
|---|---|
| Net profit or loss for 2023 | 23,863,902.71 |
| Net profit or loss brought forward | 46,627,849.39 |
| Decrease in non-current deferred development costs | -3,984,190.99 |
| Total | 66,507,561.11 |
Fair value reserve for financial instruments 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.
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 Dec 2023 | 31 Dec 2022 | |
|---|---|---|
| Telekom Slovenije Group | In EUR thousand | |
| Non-current contract liabilities | 406 | 740 |
| Non-current deferred revenue - leases | 19,324 | 16,332 |
| 18,885 | 15,893 | |
| Total non-current contract liabilities | 19,730 | 17,072 |
| 19,237 | 16,425 |
| In EUR thousand | 31 Dec 2022 | Drawing portion | Reversal | Formation | Changes in discount rates | Reclassifications | 31 Dec 2023 |
|---|---|---|---|---|---|---|---|
| Provisions for probable liabilities resulting from legal claims | 266 | 0 | 0 | 0 | 2,207 | 0 | 1,688 |
| Provisions for jubilee rewards | 2,222 | 0 | -190 | 0 | 235 | 148 | 2,415 |
| Provisions for severance payments upon retirement | 8,487 | 0 | -101 | -94 | 449 | 371 | 9,112 |
| Provisions for estimated costs of the removal of receiving- transmitting stations | 2,584 | 0 | -29 | 7 | 27 | 226 | 2,815 |
| Other provisions | 6,435 | -36 | -589 | 0 | 1,577 | 0 | 5,699 |
| Provisions for restructuring | 1,226 | 0 | -1,168 | -59 | 510 | 0 | 509 |
| Total provisions | 21,220 | -36 | -2,077 | -146 | 5,005 | 745 | 24,711 |
| In EUR thousand | 31 Dec 2021 | Transfer to current rates | Drawing portion | Reversal | Formation in discount rates | Changes in exchange differences | 31 Dec 2022 |
|---|---|---|---|---|---|---|---|
| Provisions for probable liabilities resulting from legal claims | 250 | 0 | 0 | 0 | 16 | 0 | 266 |
| Provisions for jubilee rewards | 2,157 | 0 | -167 | -2 | 693 | -459 | 2,222 |
| Provisions for severance payments upon retirement | 11,731 | 0 | -121 | -3,637 | 400 | 114 | 8,487 |
| Provisions for estimated costs of the removal of receiving- transmitting stations | 3,956 | 0 | -31 | 1 | 99 | -1,441 | 2,584 |
| Other provisions | 4,701 | -75 | -796 | -12 | 2,617 | 0 | 6,435 |
| Provisions for restructuring | 268 | 0 | -199 | -70 | 1,227 | 0 | 1,226 |
| Total provisions | 23,063 | -75 | -1,314 | -3,720 | 5,052 | -1,786 | 21,220 |
| In EUR thousand | 31 Dec 2022 | Drawing portion | Reversal | Formation | Changes in discount rates | Reclassifications | 31 Dec 2023 |
|---|---|---|---|---|---|---|---|
| Provisions for probable liabilities resulting from legal claims | 0 | 0 | 0 | 2,207 | 0 | 1,688 | 3,895 |
| Provisions for jubilee rewards | 1,770 | -160 | 0 | 175 | 121 | 0 | 1,906 |
| Provisions for severance payments upon retirement | 6,858 | -78 | -39 | 253 | 304 | 0 | 7,298 |
| Provisions for estimated costs of the removal of receiving- transmitting stations | 2,585 | -29 | 7 | 27 | 227 | 0 | 2,817 |
| Other provisions | 5,920 | -19 | 0 | 1,010 | 0 | -1,688 | 5,223 |
| Provisions for restructuring | 792 | -792 | 0 | 0 | 0 | 0 | 0 |
| Total provisions | 17,925 | -1,078 | -32 | 3,672 | 652 | 0 | 21,139 |
| In EUR thousand | 31 Dec 2021 | Drawing portion | Reversal | Formation | Changes in discount rates | 31 Dec 2022 |
|---|---|---|---|---|---|---|
| Provisions for jubilee rewards | 1,719 | -133 | 0 | 558 | -374 | 1,770 |
| Provisions for severance payments upon retirement | 9,608 | -54 | -3,119 | 329 | 94 | 6,858 |
| Provisions for estimated costs of the removal of receiving- transmitting stations | 3,956 | -31 | 1 | 99 | -1,440 | 2,585 |
| Other provisions | 4,278 | -312 | 0 | 1,954 | 0 | 5,920 |
| Provisions for restructuring | 0 | 0 | 0 | 792 | 0 | 792 |
| Total provisions | 19,561 | -530 | -3,118 | 3,732 | -1,720 | 17,925 |
Provisions for liabilities from probable legal claims are formed on the basis of the estimate of probable outcome, conducted with a high level of prudence. Maturity date of the liability cannot be determined. Based on the legal opinions obtained and the management's estimate, provisions were formed for legal claims in the amount of EUR 4,161 thousand. The Telekom Slovenije Group was primarily successful in cases finally concluded up to this date, which it also publishes promptly in accordance with the rules of the Stock Exchange.
Total damages claimed in pending legal claims brought against the Telekom Slovenije Group companies amount to EUR 250,542 thousand (in 2022: EUR 188,105 thousand). Total damages claimed in pending legal claims brought against Telekom Slovenije amount to EUR 247,802 thousand (in 2022: EUR 185,365 thousand). For more information see Note 41 Contingent liabilities and contingent assets, Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023.
| Telekom Slovenije Group | Telekom Slovenije | In EUR thousand | Provisions for jubilee rewards | Provisions for severance pays | Total | |||
|---|---|---|---|---|---|---|---|---|
| Provisions as at 01 January 2022 | 2,156 | 11,732 | 13,888 | 1,719 | 9,608 | 11,327 | ||
| Interest cost | 21 | 115 | 137 | 17 | 94 | 111 | ||
| Current service cost | 147 | 495 | 642 | 105 | 394 | 500 | ||
| Termination of employment (severance) | -31 | -116 | -147 | -17 | -65 | -82 | ||
| Actuarial gains (+) and losses (-) | 100 | -3,661 | -3,562 | 79 | -3,119 | -3,041 | ||
| - due to changes in financial assumptions | -496 | -3,395 | -3,891 | -391 | -2,774 | -3,165 | ||
| - due to experience-based adjustments | 596 | -266 | 330 | 470 | -345 | 125 | ||
| Payments during the year | -172 | -77 | -249 | -133 | -54 | -187 | ||
| Provisions as at 31 December 2022 | 2,221 | 8,488 | 10,709 | 1,770 | 6,857 | 8,627 | ||
| Interest cost | 100 | 376 | 476 | 79 | 304 | 384 | ||
| Current service cost | 140 | 325 | 465 | 102 | 253 | 355 | ||
| Termination of employment (severance) | -2 | -12 | -13 | 0 | 0 | 0 | ||
| Actuarial gains (+) and losses (-) | 152 | 53 | 205 | 115 | -39 | 77 | ||
| - due to changes in financial assumptions | 53 | 286 | 339 | 42 | 232 | 273 | ||
| - due to experience-based adjustments | 99 | -232 | -134 | 74 | -270 | -197 | ||
| Payments during the year | -197 | -118 | -315 | -160 | -78 | -239 | ||
| Provisions as at 31 December 2023 | 2,415 | 9,112 | 11,527 | 1,906 | 7,298 | 9,204 |
| Telekom Slovenije Group | In EUR thousand | Period | Severance pay | Jubilee bonuses | Total | |
|---|---|---|---|---|---|---|
| Up to 1 year | 481 | 214 | 694 | |||
| Up to 1 year | 366 | 170 | 536 | |||
| > 1 - 2 years | 306 | 256 | 561 | |||
| > 1 - 2 years | 259 | 215 | 474 | |||
| > 2 - 3 years | 720 | 324 | 1,045 | |||
| > 2 - 3 years | 569 | 236 | 805 | |||
| > 3 - 4 years | 870 | 304 | 1,174 | |||
| > 3 - 4 years | 636 | 239 | 875 | |||
| > 4 - 5 years | 626 | 244 | 869 | |||
| > 4 - 5 years | 468 | 200 | 668 | |||
| > 5 - 10 years | 4,321 | 1,447 | 5,768 | |||
| > 5 - 10 years | 3,416 | 1,123 | 4,539 | |||
| > 10 years | 17,378 | 3,382 | 20,760 | |||
| > 10 years | 13,435 | 2,432 | 15,866 | |||
| Total | 24,701 | 6,171 | 30,872 | |||
| Total | 19,149 | 4,614 | 23,763 |
long-term employee benefits, primarily based on:
Present values of long-term employee benefits are exposed to the following risks:
The following actuarial assumptions were taken into account in the calculation of provisions for jubilee rewards and post-employment benefits:
| Long-term salary growth in the company from 2024 | Telekom Slovenije | GVO | Avtenta | TSmedia | Soline | TSinpo |
|---|---|---|---|---|---|---|
| 0.76% | 2.88% | 2.00% | 1.10% | 2.00% | 0.82% |
| Assumption | Deviation Description | Total | Severance | Jubilee rewards | In EUR thousand |
|---|---|---|---|---|---|
| Central scenario | 0.00% balance | 11,527 | 9,112 | 2,415 | |
| -0.50% balance | 12,072 | 9,571 | 2,501 | ||
| Discount interest rate (difference) | -0.50% balance | 11,022 | 8,687 | 2,334 | |
| (difference) | -545 | -459 | -86 | ||
| 0.50% balance | 11,008 | 8,675 | 2,333 | ||
| Salary growth (difference) | -520 | -437 | -83 | ||
| 0.50% balance | 12,082 | 9,580 | 2,502 | ||
| (difference) | -555 | -468 | -87 |
| Assumption | Deviation Description | Total | Severance | Jubilee rewards | In EUR thousand |
|---|---|---|---|---|---|
| Central scenario | 0.00% | 9,204 | 7,298 | 1,906 | |
| -0.50% | 9,638 | 7,666 | 1,973 | ||
| Discount interest rate (difference) | -0.50% | 8,788 | 6,946 | 1,842 | |
| 0.50% | 8,799 | 6,956 | 1,843 | ||
| Salary growth (difference) | -0.50% | 9,647 | 7,674 | 1,974 | |
| 0.50% | 9,204 | 7,298 | 1,906 |
Provisions were formed in the amount of the estimated cost of removal discounted at the discount rate of 4.07% p.a., which corresponds to the 10-year yield on investment-grade corporate bonds from euro area issuers as at the end of November 2023.
Among other provisions, the Group and the Company disclose liabilities from concluded contracts, from which arises a present obligation with uncertain repayment term.
In 2023, the Group utilised provisions for restructuring in the amount of EUR 1,168 thousand, which were created in the previous reporting period, and formed new ones in the amount of EUR 510 thousand. Telekom Slovenije did not establish any provisions for corporate restructuring in 2023.
| Telekom Slovenije Group | Telekom Slovenije | In EUR thousand | 31 Dec 2023 | 31 Dec 2022 |
|---|---|---|---|---|
| Trade payables for program rights | 17,008 | 7,513 | ||
| Other | 6,328 | 664 | ||
| Total non-current trade payables | 23,336 | 8,177 |
This note provides information about the contractual terms of borrowings. For more information relating to exposure to interest rate risk and foreign currency risk, refer to Note 45 Financial instruments and financial risk management.
| Telekom Slovenije Group | Telekom Slovenije | In EUR thousand | 31 Dec 2023 | 31 Dec 2022 |
|---|---|---|---|---|
| Long-term borrowings | Bank loans | 336,618 | 369,023 | |
| - short-term portion of long-term loans | -30,040 | -132,340 | ||
| - long-term portion of loans | 306,578 | 236,683 | ||
| Total non-current portion | 306,578 | 236,683 |
| Short-term borrowings | ||||
|---|---|---|---|---|
| Short-term portion of long-term bank loans | 30,040 | 132,340 | ||
| Interest and other expenses from loans | 558 | 417 | ||
| Total short-term portion | 30,598 | 132,757 |
The Group’s non-current financial liabilities relate to long-term borrowings from banks by Telekom Slovenije. The first long-term loan is a syndicated loan comprising three tranches, two of which fell due in 2023, and the last one maturing in 2025. The loan is linked to a variable interest rate with a mark-up of 1.35% and is collateralised by blank bills of exchange. The second long-term loan is a syndicated loan consisting of three tranches maturing in 2028. The loan is linked to a variable interest rate with mark-ups ranging from 0.75% to 1.00% and is collateralised by blank bills of exchange. The third long-term loan has been received from the European Investment Bank (EIB). It comprises four tranches, repaid according to amortisation schedules until 2032. The loan is linked to a fixed interest rate with mark-up ranging from 1.571% to 3.427% and is collateralised by blank bills of exchange. The fourth long-term loan is a syndicated loan drawn at the end of 2023, falling due in 2030. The loan is linked to a variable interest rate with a mark-up of 0.75% and is collateralised by blank bills of exchange.
To ensure liquidity, the Group has short-term facilities with banks falling due in 2024. The liquidity buffer in the form of revolving loans and overdraft facility totalling EUR 55 million was not drawn as at 31 December 2023. Revolving loans are linked to a variable interest rate with a 0.80% mark-up. The overdraft facility is linked to a fixed interest rate equalling 4.43%.
Under credit agreements, banks require that the financial covenants at the Group level be fulfilled: the net financial debt/EBIDTA ratio, equity-to-total assets ratio and equity as well as the EBIDTA/finance expenses ratio. Failure to fulfil them may provide grounds to demand early repayment of the loans. As at 31 December 2023, all financial covenants on the Group level were fulfilled.
| 2023 | 2022 | 2023 | 2022 | |
|---|---|---|---|---|
| Balance as at 1 January | 369,440 | 349,038 | 369,440 | 350,438 |
| Drawing | 100,000 | 60,000 | 100,000 | 60,000 |
| Repayments | -132,527 | -40,220 | -132,527 | -41,620 |
| Other | 263 | 622 | 263 | 622 |
| Balance as at 31 Dec. | 337,176 | 369,440 | 337,176 | 369,440 |
Other changes relate to non-monetary items, namely, to transfers of prepaid expenses related to the granting of a loan to financial expenses, expenses from loans, and transfers between individual categories.
Current financial liabilities from lease represent liabilities for right-of-use assets that are expected to be settled in the next 12 months.
| Telekom Slovenije Group | Telekom Slovenije | In EUR thousand | 31 Dec 2023 | 31 Dec 2022 | 31 Dec | 31 Dec 2023 | 2022 | |
|---|---|---|---|---|---|---|---|---|
| Non-current liabilities arising from right-of-use assets | 65,216 | 59,342 | 70,267 | 60,871 | ||||
| Current liabilities arising from right-of-use assets | 9,868 | 10,603 | 11,512 | 12,527 | ||||
| Total liabilities arising from right-of-use assets | 75,084 | 69,945 | 81,779 | 73,398 |
| In EUR thousand | Telekom Slovenije Group | Telekom Slovenije |
|---|---|---|
| As at 1 January 2022 | 66,556 | 73,697 |
| Increases | 12,547 | 8,424 |
| Interest | 2,122 | 2,072 |
| Lease payments | -11,280 | -10,795 |
| As at 31 December 2022 | 69,945 | 73,398 |
| Increases | 14,625 | 18,646 |
| Interest | 2,829 | 2,049 |
| Lease payments | -12,315 | -12,314 |
| As at 31 December 2023 | 75,084 | 81,779 |
The cash flow from leases amounts to EUR 12,315 thousand for the Telekom Slovenije Group (in 2022: EUR 11,280 thousand) and EUR 12,314 thousand for the company Telekom Slovenije (in 2022: EUR 10,795 thousand), and is disclosed as cash flow arising from financing activities. The main lease element within the cash flow statement is only the repayment of the lease principal, whereas interest payments are included in the interest paid line.
| Financial liabilities | Telekom Slovenije Group | Telekom Slovenije | In EUR thousand | 31 Dec 2023 | 31 Dec 2022 | 31 Dec | 31 Dec 2023 | 2022 |
|---|---|---|---|---|---|---|---|---|
| Other financial liabilities | 2 | 2 | 0 | 0 | ||||
| Total other current financial liabilities | 2 | 2 | 0 | 0 |
| Telekom Slovenije Group | Telekom Slovenije | In EUR thousand | 31 Dec 2023 | 31 Dec 2022 | 31 Dec | 31 Dec 2023 | 2022 |
|---|---|---|---|---|---|---|---|
| Trade payables | 68,532 | 62,737 | 55,659 | 47,146 | |||
| Liabilities to domestic operators | 4,768 | 5,529 | 11,910 | 13,726 | |||
| Liabilities to foreign operators | 4,955 | 7,588 | 5,472 | 8,074 | |||
| VAT and other tax liabilities | 8,485 | 6,636 | 7,350 | 5,176 | |||
| Liabilities to employees | 8,843 | 8,120 | 6,866 | 6,504 | |||
| Liabilities for advances and warranties | 1,928 | 1,722 | 425 | 378 | |||
| Other liabilities | 26,235 | 31,583 | 20,540 | 18,296 | |||
| Total operating and other liabilities | 123,746 | 123,915 | 108,222 | 99,300 |
Operating liabilities are non-interest bearing and are generally settled in the agreed period of 8 to 120 days. The same applies to liabilities to operators which are also non-interest bearing and are generally settled in an agreed-upon term between 10 and 90 days from the date of the invoice issue.
| Telekom Slovenije Group | Telekom Slovenije | In EUR thousand | 31 Dec 2023 | 31 Dec 2022 | 31 Dec 2023 | 31 Dec 2022 |
|---|---|---|---|---|---|---|
| Short-term deferred revenue-leases | 2,945 | 2,683 | 2,945 | 2,801 | ||
| Other short-term contract liabilities | 8,962 | 7,592 | 2,834 | 2,801 | ||
| Total current contract liabilities | 11,907 | 10,275 | 5,779 | 5,602 |
Other short-term contract liabilities relate mostly to contract liabilities from customer loyalty programme and mobile services prepayments.
Among accrued liabilities, the Group and the Company disclose current deferred revenue and current accrued costs, as follows:
| Telekom Slovenije Group | Telekom Slovenije | In EUR thousand | 31 Dec 2023 | 31 Dec 2022 | 31 Dec 2023 | 31 Dec 2022 | ||
|---|---|---|---|---|---|---|---|---|
| Current portion of government grant for property, plant and equipment | 40 | 42 | 39 | 40 | ||||
| Other current deferred revenue - co-funding of European projects | 1,214 | 1,738 | 185 | 443 | ||||
| Total current deferred revenue | 1,254 | 1,780 | 224 | 483 |
| Telekom Slovenije Group | Telekom Slovenije | In EUR thousand | 31 Dec 2023 | 31 Dec 2022 | 31 Dec 2023 | 31 Dec 2022 | ||
|---|---|---|---|---|---|---|---|---|
| Accrued costs and expenses for services rendered and goods supplied (invoices not issued yet) | 10,687 | 11,487 | 7,443 | 8,187 | ||||
| Accrued costs and deferred revenue - calculation of international services | 11,355 | 12,425 | 11,361 | 12,433 | ||||
| Accrued salaries, bonuses and severance pays | 8,033 | 5,845 | 7,809 | 5,686 | ||||
| Accrued costs for unused annual leave | 2,944 | 4,079 | 2,215 | 3,372 | ||||
| Other | 36 | 75 | 0 | 0 | ||||
| Total accrued costs and expenses | 33,055 | 33,911 | 28,828 | 29,678 |
Total accrued liabilities: 34,309 35,691 29,052 30,161
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.
| In EUR thousand | Book value | Fair value | Level 1 | Level 2 | Level 3 |
|---|---|---|---|---|---|
| Non-current financial assets | |||||
| Investments in shares and interests listed on the stock exchange, measured at fair value through other comprehensive income | 2,170 | 2,170 | 2,170 | 0 | 0 |
| Investments in shares and interests not listed on the stock exchange, measured at fair value through other comprehensive income | 284 | 284 | 0 | 0 | 284 |
| 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 |
In EUR thousand
| Book value | Fair value | ||||
| Book value | Fair value | Level 1 | Level 2 | Level 3 | |
| Non-current financial assets | 2,139 | 2,139 | 2,139 | 0 | 0 |
| Investments in shares and interests not listed on the stock exchange, measured at fair value through other comprehensive income | 284 | 284 | 0 | 0 | 284 |
| Loans granted | 9 | 9 | 0 | 9 | 0 |
| Other non-current financial assets | 16 | 16 | 0 | 16 | 0 |
| Trade receivables | 19,251 | 19,251 | 0 | 19,251 | 0 |
| Current financial assets | 16 | 16 | 0 | 16 | 0 |
| Other current financial assets | 802 | 802 | 0 | 802 | 0 |
| Fair value of interest rate swap | 19 | 19 | 0 | 19 | 0 |
| Trade and other receivables | 159,067 | 159,067 | 0 | 159,067 | 0 |
| Cash and cash equivalents | 37,382 | 37,382 | 0 | 37,382 | 0 |
| Non-current financial liabilities | 236,683 | 236,683 | 0 | 236,683 | 0 |
| Other liabilities | 8,177 | 8,177 | 0 | 8,177 | 0 |
| Current financial liabilities | 132,757 | 132,757 | 0 | 132,757 | 0 |
| Other financial liabilities | 2 | 2 | 0 | 2 | 0 |
| Operating liabilities | 123,915 | 123,915 | 0 | 123,915 | 0 |
| In EUR thousand | Book value | Fair value | Level 1 | Level 2 | Level 3 |
|---|---|---|---|---|---|
| Non-current financial assets | |||||
| Investments in shares and interests listed on the stock exchange, measured at fair value through other comprehensive income | 2,139 | 2,139 | 2,139 | 0 | 0 |
| Investments in shares and interests not listed on the stock exchange, measured at fair value through other comprehensive income | 284 | 284 | 0 | 0 | 284 |
| Loans granted | 46,082 | 46,082 | 0 | 46,082 | 0 |
| Trade receivables | 19,246 | 19,246 | 0 | 19,246 | 0 |
| Current financial assets | |||||
| Loans granted | 11,496 | 11,496 | 0 | 11,496 | 0 |
| Fair value of interest rate swap | 20 | 20 | 0 | 20 | 0 |
| Trade and other receivables | 152,170 | 152,170 | 0 | 152,170 | 0 |
| Cash and cash equivalents | 19,573 | 19,573 | 0 | 19,573 | 0 |
| Non-current financial liabilities | |||||
| Borrowings | 236,683 | 236,683 | 0 | 236,683 | 0 |
| Operating liabilities | 3,847 | 3,847 | 0 | 3,847 | 0 |
| Current financial liabilities | |||||
| Borrowings | 132,757 | 132,757 | 0 | 132,757 | 0 |
| Operating liabilities | 99,300 | 99,300 | 0 | 99,300 | 0 |
Fair values at levels 2 and 3 of the hierarchy were estimated using the discounted cash flow valuation technique.
The Group and the Company did not record any transfers between fair value levels in 2023 or 2022.
Assets that are not measured at fair value in the balance sheet, but of which the fair value is disclosed. The Group and the Company keep investment property in their books at cost and only disclose fair value. The valuation of investment property was prepared by a certified property appraiser. The valuation was carried out on the basis of market comparisons (for flats) and on a return-based approach, using a discount rate of 7.85%. See Note 4 Fair value measurement.
| Telekom Slovenije Group | Book value | Fair value | Level 1 | Level 2 | Level 3 |
|---|---|---|---|---|---|
| Investment property | 3,296 | 5,010 | 5,010 |
| Book value | Fair value | Level 1 | Level 2 | Level 3 | |
|---|---|---|---|---|---|
| Investment property | 3,296 | 5,010 | 5,010 |
| Telekom Slovenije Group | Book value | Fair value | Level 1 | Level 2 | Level 3 |
|---|---|---|---|---|---|
| Investment property | 4,304 | 5,102 | 5,102 |
| Book value | Fair value | Level 1 | Level 2 | Level 3 | |||||
|---|---|---|---|---|---|---|---|---|---|
| Investment property | 7,457 | 9,190 | 9,190 |
Amounts claimed in litigation
| In EUR thousand | 2023 | 2022 |
|---|---|---|
| Amounts claimed in litigation | 250,542 | 188,105 |
As at the balance sheet date, the Group recorded 83 legal claims (31 December 2022: 107). Based on the legal opinions obtained and the management's estimate, provisions were formed for legal claims in the amount of EUR 4,161 thousand. In 2022, provisions for legal claims amounted to EUR 266 thousand. For more details see Note 32 Provisions.
| In EUR thousand | 2023 | 2022 |
|---|---|---|
| Amounts claimed in litigation | 247,802 | 185,365 |
As at the balance sheet date, the Company recorded 41 legal claims (31 December 2022: 66). Based on the management’s assessment and legal opinions obtained, provisions amounting to EUR 3,895 thousand were made; in the previous year, the Company did not have any provisions for legal claims. For more details see Note 32 Provisions.
Telekom Slovenije, as the sole shareholder of Soline, has issued a letter of support to Soline. In this letter, it declares its commitment to continue providing financial support for Soline's ongoing operations. Furthermore, it states that this support will not be terminated within twelve months following the signing of the letter of support.
The Group and the Company provide the following bonds:
| Telekom Slovenije | Telekom Slovenije Group | In EUR thousand | 31 Dec 2023 | 31 Dec 2022 |
|---|---|---|---|---|
| Performance bonds and warranty bonds | 11,741 | 11,507 | ||
| Other guarantees | 1,020 | 218 | ||
| Total guarantees issued | 12,761 | 11,725 |
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.
Under contingent assets and liabilities, the Group and the Company disclose other assets and liabilities arising from the extension of rights amounting to EUR 9,118 thousand, which do not qualify for recognition in the balance sheet as at 31 December 2023, mainly due to the uncertainty of settlement and the passage of time.
Related parties are individuals or companies related to the Telekom Slovenije Group.
As at 31 December 2023, related individuals (Chairman and members of the Supervisory Board) held a total of 1,178 TLSG shares, representing 0.01802% of share capital. No loans were granted to related individuals in 2023.
| Receipts as profit pay-outs | Total gross based on the resolution of the General Meeting of Shareholders |
|---|---|
| Members of the Management Board | 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 Collective Agreement | 4,505 |
| Receipts as profit | Loans | Total pay-outs based gross on the resolution | Unpaid In EUR thousand receipts of the General portion at 31 | Repayments |
|---|---|---|---|---|
| Meeting of December in 2022 | Shareholders 2022 | Members of the Management Board | total | 1,098 |
| Members of the Supervisory Board | 266 | - | - | - |
| Members of the Supervisory Board committees | 17 | - | - | - |
| Other managerial staff employed under contracts not subject to the tariff part of the Collective Agreement | 4,282 | - | - | 1 |
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.
| Voluntary | Salary | Cost | Holiday allowance | Insurance premiums | Bonuses | supplementary pension | Total gross** | Total net*** |
|---|---|---|---|---|---|---|---|---|
| Boštjan Košak (1 Jan. - 31 Dec.) | 172,531 | 1,818 | 2,159 | 288 | 5,906 | 2,904 | 185,606 | 86,638 |
| Boštjan Škufca Zaveršek (1 Jan. - 31 Dec.) | 163,906 | 1,845 | 2,159 | 228 | 0 | 2,904 | 171,042 | 86,948 |
| Špela Fortin (1 Jan. - 31 Dec.) | 154,683 | 1,755 | 2,159 | 776 | 6,510 | 2,904 | 168,787 | 76,141 |
| Irma Gubanec (1 Jan. - 31 Dec.) | 155,271 | 2,919 | 2,159 | 771 | 0 | 2,904 | 164,024 | 82,860 |
| Vesna Prodnik (1 Jan. - 31 Dec.) | 155,271 | 2,934 | 2,159 | 776 | 6,438 | 2,904 | 170,482 | 77,593 |
| Mitja Štular (1 Jan. - 13 May)* | 54,380 | 0 | 720 | 33 | 3,563 | 1,210 | 59,906 | 29,716 |
| Total | 856,042 | 11,271 | 11,515 | 2,872 | 22,417 | 15,730 | 919,847 | 439,896 |
| Voluntary | Salary | Variable pay* | Other personal earnings | Cost reimbursement | Holiday allowance | Insurance premiums | Bonuses | supplementary pension | Total gross** | Total net*** |
|---|---|---|---|---|---|---|---|---|---|---|
| Boštjan Košak (4 Oct. - 31 Dec.) | 40,228 | 0 | 0 | 664 | 502 | 10 | 1,898 | 726 | 44,028 | 20,792 |
| Boštjan Škufca Zaveršek (14 Nov. - 31 Dec.) | 20,591 | 0 | 0 | 266 | 331 | 0 | 591 | 484 | 22,263 | 11,339 |
| Špela Fortin (1 Jan. - 31 Dec.) | 145,686 | 18,321 | 0 | 1,541 | 1,924 | 1,013 | 6,387 | 2,904 | 177,776 | 81,135 |
| Irma Gubanec (12 Oct. - 31 Dec.) | 32,699 | 0 | 0 | 675 | 502 | 81 | 0 | 726 | 34,683 | 18,347 |
| Vesna Prodnik (14 Nov. - 31 Dec.) | 19,508 | 0 | 0 | 271 | 331 | 81 | 1,202 | 484 | 21,877 | 10,088 |
| Barbara Galičič |
| Drakslar | 1 | 114,251 | 11,913 | 80,582 | 1,171 | 1,443 | 790 | 5,414 | 2,420 | 217,984 | 97,350 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Tomaž Jontes | 1 Jan. - 11 Oct. | 103,933 | 41,123 | 689 | 823 | 1,283 | 871 | 5,579 | 2,178 | 156,479 | 71,679 | |
| Cvetko Sršen | 1 Jan. - 3 Oct. | 123,058 | 14,107 | 83,048 | 1,303 | 1,443 | 465 | 5,695 | 2,420 | 231,539 | 103,000 | |
| Mitja Štular | 1 Jan. - 13 Nov. | 146,148 | 12,753 | 0 | 1,127 | 1,924 | 544 | 6,790 | 2,904 | 172,190 | 86,048 | |
| Tomaž Seljak | (for 2020 and 2021) | 0 | 10,264 | 0 | 0 | 0 | 0 | 0 | 0 | 10,264 | 4,723 | |
| Matjaž Beričič | (for 2020 and 2021) | 0 | 5,061 | 0 | 0 | 0 | 0 | 0 | 0 | 5,061 | 2,957 | |
| Vida Žurga | (for 2020) | 0 | 2,939 | 0 | 0 | 0 | 0 | 0 | 0 | 2,939 | 1,717 | |
| Ranko Jelača | (for 2020) | 0 | 718 | 0 | 0 | 0 | 0 | 0 | 0 | 718 | 419 | |
| Total | 746,102 | 117,199 | 164,319 | 7,841 | 9,683 | 3,855 | 33,556 | 1,097,801 | 509,594 |
*Variable remuneration refers to the part of the performance bonus, which was not paid in 2023.
** The total gross amount is the sum of all types of labour costs, including net receipts (reimbursement of costs), insurance premiums, benefits and voluntary supplementary pension insurance (PDPZ).
*** The total net amount comprises the sum of net earnings of Management Board members, inclusive of insurance premiums and benefits, which actually reduce net earnings of Management Board members, and exclusive of PDPZ, which is remitted to the pension company and not to the members personally.
The members of the Management Board did not receive any profit pay-outs, options, or commissions. The members of the Management Board were entitled to the attendance fees for performing the function of a supervisory board member in the subsidiary GVO, d.o.o. as indicated below:
| External members | 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 |
| In EUR | Meetings | Basic | Committees | Travel expenses | Liability insurance | Total gross* | Total net** | |
|---|---|---|---|---|---|---|---|---|
| External members | Žiga Debeljak (1 Jan–31 Dec) | 3,861 | 28,000 | 1,980 | 0 | 228 | 34,069 | 24,550 |
| Karla Pinter (1 Jan–31 Dec) | 3,861 | 22,400 | 1,980 | 0 | 228 | 28,469 | 20,477 | |
| Marko Boštjančič (1 Jan–31 Dec) | 3,861 | 21,000 | 1,980 | 4,616 | 228 | 31,685 | 22,817 | |
| Alenka Čok Pangeršič (1 Jan–31 Dec) | 3,586 | 17,500 | 2,948 | 0 | 228 | 24,262 | 17,418 | |
| Mateja Čuk Orel (1 Jan–31 Dec) | 3,861 | 19,250 | 1,540 | 0 | 228 | 24,879 | 17,866 | |
| Aleksander Igličar (1 Jan–31 Dec) | 3,586 | 19,250 | 3,168 | 0 | 228 | 26,232 | 18,850 | |
| Internal members | Drago Kijevčanin (1 Jan–31 Dec) | 3,861 | 22,400 | 4,488 | 0 | 228 | 30,977 | 22,255 |
| Dušan Pišek (1 Jan–31 Dec) | 3,861 | 17,500 | 660 | 0 | 228 | 22,249 | 15,907 | |
| Rok Pleteršek (1 Jan–31 Dec) | 3,861 | 17,500 | 660 | 0 | 228 | 22,249 | 15,907 | |
| Total | 34,199 | 184,800 | 19,404 | 4,616 | 2,052 | 245,071 | 176,047 |
| In EUR | Meetings | Basic | Committees | Travel expenses | Liability insurance | Total gross* | Total net** | |
|---|---|---|---|---|---|---|---|---|
| External members | Žiga Debeljak (9 Sept–31 Dec) | 2,860 | 7,865 | 1,100 | 0 | 0 | 11,825 | 8,601 |
| Iztok Černoša (1 Jan–9 Sept) | 2,915 | 16,878 | 1,540 | 0 | 620 | 21,953 | 15,515 | |
| Karla Pinter (1 Jan–31 Dec) | 5,775 | 19,940 | 1,320 | 0 | 620 | 27,655 | 19,663 | |
| Marko Boštjančič (9 Sept–31 Dec) | 2,860 | 5,833 | 1,100 | 1,731 | 0 | 11,524 | 8,382 | |
| Alenka Čok Pangeršič (9 Sept–31 Dec) | 2,860 | 5,396 | 660 | 0 | 0 | 8,916 | 6,484 | |
| Mateja Čuk Orel (9 Sept–31 Dec) | 2,860 | 5,916 | 1,100 | 0 | 0 | 9,876 | 7,183 | |
| Aleksander Igličar (1 Jan–31 Dec) | 5,775 | 21,000 | 2,904 | 0 | 620 | 30,299 | 21,586 | |
| Radovan Cerjak (1 Jan–9 Sept) | 2,915 | 15,672 | 1,540 | 0 | 620 | 20,747 | 14,639 | |
| Marko Kerin (1 Jan–9 Sept) | 2,915 | 16,644 | 3,564 | 0 | 620 | 23,743 | 16,818 | |
| Jurij Toplak (1 Jan–9 Sept) | 2,640 | 12,056 | 1,100 | 0 | 620 | 16,416 | 11,488 | |
| Internal members | Drago Kijevčanin (1 Jan–31 Dec) | 5,396 | 22,400 | 5,104 | 0 | 620 | 33,520 | 23,928 |
| Dušan Pišek (1 Jan–31 Dec) | 5,775 | 19,104 | 220 | 0 | 620 | 25,719 | 18,255 | |
| Rok Pleteršek (2 June–31 Dec) | 4,180 | 9,755 | 220 | 0 | 0 | 14,155 | 10,295 | |
| Jana Žižek Kuhar (1 Jan–2 June) | 1,595 | 7,340 | 0 | 0 | 620 | 9,555 | 6,499 | |
| Total | 51,321 | 185,799 | 21,472 | 1,731 | 5,580 | 265,903 | 189,336 |
*The total gross amount includes the sum of all attendance fees, basic salaries for performing the function and payments for participating in committees.
**The total net amount comprises the sum of net receipts.
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.
| In EUR | Basic pay | Committees | Total gross* | Total net** | |
|---|---|---|---|---|---|
| External committee members | Janez Bešter (1 Jan–31 Dec) | 5,600 | 660 | 6,260 | 4,553 |
| Barbara Gorjup (1 Jan–31 Dec) | 5,600 | 3,168 | 8,768 | 6,377 | |
| Marko Hočevar (1 Jan–31 Dec) | 5,600 | 2,948 | 8,548 | 6,217 | |
| Total | 16,800 | 6,776 | 23,576 | 17,147 |
| In EUR | Basic pay | Committees | Total gross* | Total net** | |
|---|---|---|---|---|---|
| External committee members | Janez Bešter (28 Nov–31 Dec) | 467 | 0 | 467 | 339 |
| Barbara Gorjup (1 Jan–31 Dec) | 5,600 | 2,684 | 8,284 | 6,025 | |
| Marko Hočevar (1 Jan–31 Dec) | 5,600 | 2,464 | 8,064 | 5,865 | |
| Total | 11,667 | 5,148 | 16,815 | 12,229 |
*The total gross amount includes the sum of the basic salary for performing the function and payments for participating in committees.
** The total net amount refers to net earnings of the members of the Supervisory Board committees.
The attendance fees, remuneration for performing the function, travel expenses and insurance of the Supervisory Board for the January 2023 - December 2023 period amount to EUR 245,072.76. This includes Supervisory Board attendance fees, remuneration for performing the function, committee attendance fees, liability insurance, reimbursement of expenses for external and internal members of the Supervisory Board.
Attendance fees for the external members of the committees for the January 2023 - December 2023 period amount to EUR 23,576.12. This includes the cost of the attendance fees and remuneration for the performance of functions.
| In EUR | Committees | Total gross* | Total net** | |||
|---|---|---|---|---|---|---|
| External members | Marko Hočevar (1 Jan–31 Dec) | 2,860 | 2,860 | 2,080 | ||
| Barbara Gorjup (1 Jan–31 Dec) | 3,080 | 3,080 | 2,240 | |||
| Drago Kijevčanin (1 Jan–31 Dec) | 3,080 | 3,080 | 2,240 | |||
| Aleksander Igličar (1 Jan–31 Dec) | 3,080 | 3,080 | 2,240 | |||
| Alenka Čok Pangeršič (1 Jan–31 Dec) | 2,860 | 2,860 | 2,080 | |||
| Total | 14,960 | 14,960 | 10,880 |
| In EUR | Committees | Total gross* | Total net** | ||
|---|---|---|---|---|---|
| External members | Marko Hočevar (1 Jan–31 Dec) | 1,320 | 1,320 | 960 | |
| Barbara Gorjup (1 Jan–31 Dec) | 1,540 | 1,540 | 1,120 | ||
| Drago Kijevčanin (1 Jan–31 Dec) | 1,540 | 1,540 | 1,120 |
| 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 |
| In EUR | Committees | Total gross* | Total net** |
|---|---|---|---|
| Marko Kerin (1 Jan–9 Sept) | 1,100 | 1,100 | 800 |
| Aleksander Igličar (1 Jan–31 Dec) | 1,540 | 1,540 | 1,120 |
| Drago Kijevčanin (1 Jan–31 Dec) | 1,540 | 1,540 | 1,120 |
| Marko Hočevar (1 Jan–31 Dec) | 1,320 | 1,320 | 960 |
| Barbara Gorjup (1 Jan–31 Dec) | 1,540 | 1,540 | 1,120 |
| Alenka Čok Pangeršič (14 Sept–31 Dec) | 440 | 440 | 320 |
| Total | 7,480 | 7,480 | 5,440 |
*The total gross amount is the sum of all committee costs.
**The total net amount is the sum of all net receipts of the Supervisory Board committee members.
The Telekom Slovenije Group and the company Telekom Slovenije record liabilities to related parties arising from receipts that have not yet been paid out (liabilities for annual bonuses, 13th salary and variable performance-related remuneration for 2020, 2021 and 2023), in the following amounts:
| In EUR thousand | Total amount of all liabilities as at 31 December 2023 | Total amount of all liabilities as at 31 December 2022 |
|---|---|---|
| Members of the Management Board total | 108 | 261 |
Members of the Management Board and the Supervisory Board of Telekom Slovenije are members of supervisory or management boards of other companies or owners of other companies with which the company Telekom Slovenije conducts business. All related party transactions are carried out under market conditions.
| Company | Salary | Christmas bonus | Variable pay | Other personal earnings* | Cost reimbursement | Holiday allowance | Insurance premiums | Bonuses supplementary pension | Total gross** | Total net*** |
|---|---|---|---|---|---|---|---|---|---|---|
| insurance | Primož | Avtenta | 6,000 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 6,000 | 4,214 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Matija | Avtenta | 76,507 | 0 | 0 | 0 | 1,487 | 1.644 | 35 | 4,477 | 2,420 | 86,570 | 45,985 | |
| Zef | GVO | 99,474 | 0 | 0 | 0 | 1,610 | 2.159 | 177 | 3,987 | 2,904 | 110,311 | 56,371 | |
| Klavdij | Soline | 90,541 | 0 | 0 | 0 | 1,703 | 1.203 | 0 | 6,936 | 2,904 | 103,287 | 48,306 | |
| Vesna | TSinpo | 79,752 | 0 | 0 | 0 | 1,726 | 2.192 | 127 | 3,184 | 2,904 | 89,885 | 47,682 | |
| Sandra | TSinpo | 1,855 | 0 | 0 | 40,800 | 50 | 153 | 15 | 243 | 242 | 43,358 | 18,859 | |
| Igor | TSmedia | 89,029 | 0 | 0 | 886 | 1,758 | 2.159 | 113 | 6,057 | 2,904 | 102,906 | 51,513 | |
| Rajko | TSmedia | 12,046 | 0 | 0 | 15,330 | 0 | 360 | 10 | 10 | 242 | 27,998 | 14,067 | |
| Tomaž | IPKO | 57,132 | 0 | 0 | 17,365 | 1,202 | 2.159 | 419 | 4,652 | 2,453 | 85,382 | 49,773 | |
| Tomaž | IPKO 3 | 61,832 | 0 | 27,477 | 0 | 3,720 | 0 | 0 | 0 | 0 | 93,029 | - | |
| Andras | IPKO 3 | 18,636 | 0 | 0 | 0 | 240 | 0 | 0 | 0 | 0 | 18,876 | - | |
| Simon | SIOL | 6,390 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 6,390 | - |
| Company | Salary | Christmas bonus | Variable pay | Personal earnings* | Cost reimbursement | Holiday allowance | Insurance premiums | Bonuses | Voluntary supplementary pension insurance | Total gross** | Total net*** |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Simon Furlan | 3,340 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 3,340 | |
| Primož Kučič | 24,000 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 24,000 | 16,908 |
| GVO Zef Vučaj | 99,599 | 0 | 2,075 | 0 | 1,859 | 2,064 | 177 | 4,746 | 2,904 | 113,424 | 56,749 |
| Klavdij Godnič | 89,983 | 0 | 0 | 0 | 1,368 | 1,074 | 0 | 7,318 | 2,890 | 102,633 | 47,423 |
| Sandra Peršak | 81,467 | 0 | 2,125 | 0 | 1,394 | 1,924 | 179 | 3,290 | 2,904 | 93,283 | 48,735 |
| Danilo Tomšič | 0 | 0 | 2,192 | 0 | 0 | 0 | 0 | 0 | 0 | 2,192 | 1,281 |
| TSmedia Rajko Gerič | 87,600 | 0 | 2,281 | 460 | 1,180 | 2,008 | 61 | 4,989 | 2,904 | 101,483 | 53,148 |
| Igor Gajster | 3,133 | 0 | 0 | 0 | 117 | 0 | 0 | 0 | 132 | 3,382 | 2,090 |
| Tomaž Seljak | 67,414 | 1,391 | 0 | 21,735 | 1,273 | 1,924 | 229 | 6,276 | 2,904 | 103,146 | 47,682 |
*The second personal remuneration is the payment of a jubilee award and severance pay, allowance for work abroad.
** Total gross represents the sum of all types of labor costs, including net receipts (reimbursements), insurance premiums, credits, and voluntary supplementary pension insurance.
*** Total net represents the sum of the net remuneration of directors of subsidiary companies, including insurance premiums and benefits, which effectively reduce the net remuneration of directors of subsidiary companies. However, it excludes voluntary supplementary pension insurance, which the director of the subsidiary company does not receive personally, but which is transferred to the pension company.
1 Remuneration payer Telekom Slovenije, d.d.
2 Remuneration payer IPKO
| Meetings | Basic pay | Committees* | Travel expenses | Total | Total net** | ||
|---|---|---|---|---|---|---|---|
| Capital representatives | Vesna Prodnik (1.1.-31.12.) | 1,073 | 5,085 | 0 | 0 | 6,158 | 4,478 |
| Peter Anžin (9.6.-31.12.) | 660 | 2,783 | 396 | 0 | 3,839 | 2,792 | |
| Sabina Merhar (1.1.-31.3.) | 413 | 1,250 | 440 | 0 | 2,103 | 1,529 | |
| Employee representatives | Helena Jakič (1.1.-31.12.) | 1,073 | 4,238 | 836 | 0 | 6,147 | 4,470 |
| Total | 3,219 | 13,356 | 1,672 | 0 | 18,247 | 13,269 |
| Meetings | Basic pay | Committees* | Travel expenses | Total | Total net** | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| External members of commissions | Darinka Virant (1.1.-31.12.) | 0 | 1,695 | 836 | 61 | 2,592 | 1,885 |
| Meetings | Basic pay | Committees* | Travel expenses | Total | Total net** | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| Capital representatives | Vesna Prodnik (14.11.-31.12.) | 138 | 563 | 0 | 0 | 701 | 509 | |||
| Mitja Štular (1.1.-13.11.) | 660 | 4,365 | 0 | 0 | 5,025 | 3,654 | ||||
| Sabina Merhar (1.1.-31.12.) | 798 | 5,000 | 638 | 0 | 6,436 | 4,681 | ||||
| Employee representatives | Helena Jakič (1.1.-31.12.) | 798 | 4,238 | 638 | 0 | 5,674 | 4,126 | |||
| Total | 2,394 | 14,166 | 1,276 | 0 | 17,836 | 12,970 |
| Meetings | Basic pay | Committees* | Travel expenses | Total | Total net** | ||||
|---|---|---|---|---|---|---|---|---|---|
| Darinka Virant (1.1.-31.12.) | 0 | 1,695 | 638 | 0 | 2,333 | 1,697 |
** 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.
| In EUR thousand | 31 Dec 2023 | 31 Dec 2022 |
|---|---|---|
| Receivables due from companies in the Group | ||
| Subsidiaries - gross amount | 3,330 | 4,015 |
| Subsidiaries - allowance | -15 | -17 |
| Subsidiaries - net amount | 3,316 | 3,998 |
| Loans to companies in the Group | ||
| Subsidiaries - gross amount | 37,516 | 57,553 |
| Subsidiaries - allowance | 0 | 0 |
| Subsidiaries - net amount | 37,516 | 57,553 |
| Liabilities to companies in the Group | ||
| Subsidiaries | 33,092 | 26,721 |
| In EUR thousand | I–XII 2023 | I–XII 2022 |
|---|---|---|
| Revenue from sales in the Group | 15,799 | 15,829 |
| Subsidiaries | 15,799 | 15,829 |
| Purchase of material and services in the Group | 23,171 | 21,247 |
| Subsidiaries | 23,171 | 21,247 |
The Company generates revenue by selling material to the company GVO, by leasing business premises and property, plant and equipment, by rendering telecommunication services and by implementing the services of business support. Telekom Slovenije settles the company GVO's costs of investment construction, maintenance and elimination of defects.
TSmedia pays the company Telekom Slovenije for the provision of telecommunications services and call centre services, for maintenance, development and purchase of multimedia platforms and contents, for business support services and for the lease of outdoor digital screens and business premises. To the controlling company, it charges the sale and management of multimedia services and contents, the use of the BiziPro business application, services related to the universal directory enquiry service, service 1977, as well as ad management and arrangement and sale of advertising space. Additionally, it receives revenue arising from the telephone directory, the Bizi.si business directory and call centre services, which Telekom Slovenije charges to end users through a joint invoice.
The Company charges the lease of business premises, communications services at location, support activities services to its subsidiary Avtenta, while paying the subsidiary the costs of ICT services. Telekom Slovenije charges to its subsidiary IPKO international IP services, roaming services of its users, traffic transiting services and system lease services. The subsidiary charges the lease of lines and international telecommunications services as well as services related to user roaming to the controlling company.
Inter-company prices are formed on the same basis as for other users.
As at the reporting date, no contract performance bonds were issued by Telekom Slovenije to its subsidiaries (neither were in 2022).
The Company did not make allowances for loans granted in 2023, as the estimated expected credit losses are insignificant.
| In EUR thousand | 31 Dec 2023 | 31 Dec 2022 |
|---|---|---|
| GVO, d.o.o. | 4,517 | 2,993 |
| TSmedia, d.o.o. | 492 | 290 |
| IPKO, d.o.o. | 20,000 | 42,649 |
| SOLINE d.o.o. | 1,789 | 1,275 |
| SIOL d.o.o., Zagreb | 313 | 458 |
The largest owner of Telekom Slovenije is the Republic of Slovenia, which, together with the Slovenian Sovereign Holding (SSH) holds a 66.80% of share capital in Telekom Slovenije.
Companies related to the owners are those in which the Republic of Slovenia and SSH together hold a business share of at least 20%. The list of these companies is published on the SSH’s website (http://www.sdh.si/sl-si/upravljanje-nalozb/seznam-nalozb).
| Telekom Slovenije | Telekom Slovenije Group | In EUR thousand | 31 Dec 2023 | 31 Dec 2022 |
|---|---|---|---|---|
| Outstanding trade receivables | 4,659 | 4,726 | ||
| Outstanding trade payables | 4,214 | 4,871 | ||
| VAT liabilities | 5,655 | 3,706 | ||
| Income tax payables | -889 | 3,803 |
| In EUR thousand | I–IX 2023 | I–IX 2022 | I–IX 2023 | I–IX 2022 |
|---|---|---|---|---|
| Operating revenues | 24,579 | 12,241 | 18,058 | 10,934 |
| Purchase costs of material and services | 24,646 | 8,366 | 23,504 | 0 |
| In EUR thousand | I–IX 2023 | I–IX 2022 | I–IX 2023 | I–IX 2022 |
|---|---|---|---|---|
| VAT payment | 55,554 | 38,287 | 54,660 | 38,228 |
| CIT payment | 2,137 | 6,940 | 1,144 | 6,102 |
| Dividend payment | 0 | 19,687 | 0 | 19,687 |
| Telekom Slovenije Group | Telekom Slovenije | In EUR thousand | 2023 | 2022 |
|---|---|---|---|---|
| Audit services | 206 | 187 | ||
| Other assurance engagements | 16 | 8 | ||
| Tax advisory services | 0 | 0 | ||
| Other non-audit services | 16 | 11 | ||
| Total auditor’s fees | 238 | 206 |
| Telekom Slovenije | Telekom Slovenije Group | In EUR thousand | 31 Dec 2023 | 31 Dec 2021 |
|---|---|---|---|---|
| Financial assets measured at amortised cost | Cash and cash equivalents | 55,479 | 37,382 | |
| Bank deposits | 1,037 | 800 | ||
| Loans granted | 9 | 25 | ||
| Trade and other receivables | 189,647 | 176,632 | ||
| Financial assets measured at fair value through other comprehensive income | Investments in shares and interests of companies | 2,454 | 2,423 | |
| Financial liabilities measured at amortised cost | Operating liabilities | 147,082 | 132,092 | |
| Borrowings | 337,177 | 369,440 | ||
| Other financial liabilities | 2 | 2 |
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 is the risk of financial loss if a client or party to a contract does not settle its obligations in full or at all.
The maximum exposure to credit risk equals the carrying amount of financial assets.
| Telekom Slovenije Group | Telekom Slovenije | In EUR thousand | 31 Dec 2023 | 31 Dec 2022 | |
|---|---|---|---|---|---|
| Loans granted | 9 | 25 | |||
| Deposits | 1,039 | 802 | |||
| Trade and other receivables | 189,808 | 176,931 | |||
| - of which trade receivables | 179,731 | 170,406 | |||
| Cash and cash equivalents | 55,479 | 37,382 | |||
| TOTAL | 246,335 | 215,140 |
by customers (retail) and by operators (wholesale). Trade receivables represent the maximum exposure to credit risk. As at 31 December 2023, these amounted to EUR 179,731 thousand at the Group level, having increased by EUR 9,325 thousand compared to the end of 2022. Most of the Group’s trade and other receivables refer to Telekom Slovenije. Most receivables are unsecured. The Group records receivables due from a large number of natural persons and legal entities. The biggest buyers of the Group are operators, with which transactions are as a rule two-way, decreasing net credit exposure. We have assessed that no major credit risk concentration exists in relation to a particular client or industry. The Group companies introduced various procedures for managing receivables that include the monitoring of business partners’ credit rating, collateralisation of receivables, monitoring of subscribers’ high traffic, and the collection of bad debts. The recovery procedure is conducted according to a pre-defined timeline (reminders and disconnection) and through specialised outsourced operators. Telekom Slovenije requires prior authorisation of individual clients for concluding and changing a subscription relationship and for purchasing goods with deferred payment.
| In EUR thousand | 31 Dec 2023 | 31 Dec 2022 | Expected % | Expected Gross amount | Credit Allowance | Net amount | Gross % of | Allowance | Net amount |
|---|---|---|---|---|---|---|---|---|---|
| Total trade receivables | 200,927 | -21,196 | 179,731 | 188,380 | -17,974 | 170,406 | |||
| Trade receivables not past due | 165,270 | 0.5% | -784 | 164,486 | 155,985 | 0.5% | -714 | 155,271 | |
| Overdue - up to and including 30 days | 8,799 | 5% | -412 | 8,387 | 8,565 | 4% | -316 | 8,249 | |
| - from and including 31 days to and including 60 days | 3,754 | 11% | -415 | 3,339 | 2,990 | 11% | -318 | ||
| - from and including 61 days to and including 90 days | 781 | 18% | -137 | 644 | 1,365 | 16% | -212 | 1,153 | |
| - from and including 91 days to and including 180 days | 2,493 | 46% | -1,135 | 1,358 | 2,078 | 45% | -941 | 1,137 | |
| - from and including 181 days to and including 365 days | 2,735 | 87% | -2,371 | 364 | 2,297 | 55% | -1,265 | 1,032 | |
| - from and including 366 days up to two years | 6,642 | 83% | -5,486 | 1,156 | 5,484 | 84% | -4,605 | 879 | |
| - over two years | 7,650 | 100% | -7,653 | -3 | 6,484 | 100% | -6,472 | 12 | |
| - trade receivables in insolvency proceedings | 2,803 | 100% | -2,803 | 0 | 3,132 | 100% | -3,131 | 1 | |
| Total trade receivables past due | 35,657 | -20,412 | 15,245 | 32,395 | -17,260 | 15,135 | |||
| Other trade receivables | 10,077 | 0 | 10,077 | 6,525 | 0 | 6,525 | |||
| Total receivables | 211,004 | -21,196 | 189,808 | 194,905 | 0 | -17,974 | 176,931 |
| In EUR thousand | 31 Dec 2023 | 31 Dec 2022 | Expected % | Expected Gross amount | Credit Allowance | Net amount | Gross % of | Allowance | Net amount | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Total trade receivables | 187,747 | -16,164 | 171,583 | 178,525 | -13,757 | 164,768 | |||||
| Trade receivables not past due | 158,789 | 0% | -787 | 158,002 | 151,819 | 0.5% | -724 | 151,095 | |||
| Overdue - up to and including 30 days | 8,126 | 5% | -405 | 7,721 | 7,793 | 4% | -312 | 7,481 | |||
| - from and including 31 days to and including 60 days | 3,509 | 11% | -386 | 3,123 | 2,725 | 11% | -300 | 2,425 | |||
| - from and including 61 days to and including 90 days | 598 | 15% | -90 | 508 | 1,205 | 15% | -181 | 1,024 | |||
| - from and including 91 days to and including 180 days | 1,628 | 45% | -733 | 895 | 1,792 | 46% | -824 | 968 | |||
| - from and including 181 days to and including 365 days | 2,239 | 90% | -2,025 | 214 | 1,819 | 50% | -909 | 910 | |||
| - from and including 366 days up to two years | 3,108 | 64% | -1,988 | 1,120 | 2,404 | 64% | -1,538 | 866 | |||
| - over two years | 7,457 | 100% | -7,457 | 0 | 6,462 | 100% | -6,462 | 0 | |||
| - trade receivables in insolvency proceedings | 2,293 | 100% | -2,293 | 0 | 2,506 | 100% | -2,507 | -1 | |||
| Total trade receivables past due | 28,958 | -15,377 | 13,581 | 26,706 | -13,033 | 13,673 | |||||
| Other trade receivables | 9,192 | 0 | 9,192 | 5,362 | 0 | 5,362 | |||||
| Total receivables | 196,939 | -16,164 | 180,775 | 183,887 | -13,757 | 170,130 |
The adjustment policy for receivables is explained in note 3f Financial instruments, Financial assets, Trade and other receivables.
The Telekom Slovenije Group and the company Telekom Slovenije also monitor credit risks in other segments of business operations.
Due to the stability of the banking system and high liquidity of banks, credit risk in terms of cash held in commercial accounts and investments in deposits is low. Consequently, no expected credit losses are recorded for cash and cash equivalents and investments in deposits.
The Group is also exposed to credit risk arising from loans to employees, which is assessed as low as repayments are made when employees receive salaries. Therefore, no expected credit losses are recorded on these investments.
| Telekom Slovenije | Telekom Slovenije Group | In EUR thousand | 31 Dec 2023 | 31 Dec 2022 | 31 Dec 2023 | 31 Dec 2022 |
|---|---|---|---|---|---|---|
| Past due loans granted | 0 | 0 | 0 | 0 | ||
| Outstanding loans granted | 9 | 25 | 37,526 | 57,578 | ||
| - in less than 3 months | 3 | 7 | 1,487 | 3,212 | ||
| - 3 to 12 months | 4 | 10 | 16,479 | 8,284 | ||
| - 1 to 2 years | 2 | 6 | 11,321 | 14,332 | ||
| - 2 to 5 years | 0 | 2 | 4,350 | 27,560 | ||
| - more than 5 years | 0 | 0 | 3,890 | 4,190 | ||
| Total | 9 | 25 | 37,526 | 57,578 |
The Telekom Slovenije Group regularly settles its liabilities. The Group's liquidity is the result of active planning of cash flows, ensuring appropriate maturity and financial debt diversification, financing within the Group, and managing of working capital and cash. The liquidity risk on the Group level is managed by the controlling company, which plans and monitors the cash requirements of subsidiaries and provides them with the necessary funds.
The majority of the Group’s financial liabilities are accounted for by three long-term syndicated loans in the total amount of EUR 237.2 million with respective interest, a long-term loan from the European Investment Bank in the amount of EUR 100.5 million with respective interest, and lease liabilities in the amount of EUR 75.1 million and EUR 81.8 million at the Group and Company level, respectively.
In 2023, Telekom Slovenije repaid EUR 132.5 million of long-term loans and drew down a long-term syndicated loan with SID and NLB totalling EUR 100 million at the end of 2023, which was used to fully refinance a tranche of the syndicated long-term loan maturing at the end of 2023.
The Group and the Company have short-term financing facilities with banks to ensure liquidity. The liquidity buffer in the form of revolving loans and overdraft facility totalling EUR 55 million was not drawn as at 31 December 2023.
| Not due | In EUR thousand | Up to 3 months | 3 to 12 months | 1 to 2 years | 2 to 5 years | Over 5 years | Total | Book value of liabilities | 31 Dec 2023 | |
|---|---|---|---|---|---|---|---|---|---|---|
| Loans and borrowings | 887 | 43,849 | 45,556 | 181,391 | 122,681 | 394,364 | 337,700 | |||
| Other financial liabilities | 0 | 2 | 0 | 0 | 0 | 2 | 2 | |||
| Trade payables and other operating liabilities | 93,881 | 29,866 | 11,839 | 5,476 | 6,021 | 147,083 | 147,083 | |||
| Financial liabilities from lease | 5,246 | 6,279 | 11,831 | 23,703 | 46,193 | 93,252 | 75,084 | |||
| Total | 100,014 | 79,996 | 69,226 | 210,570 | 174,895 | 634,701 | 559,869 |
| Not due | In EUR thousand | Up to 3 months | 3 to 12 months | 1 to 2 years | 2 to 5 years | Over 5 years | Total | Book value of liabilities | 31 Dec 2023 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Loans and borrowings | 887 | 43,849 | 45,556 | 181,391 | 122,681 | 394,364 | 337,700 | ||||
| Trade payables and other operating liabilities | 91,945 | 16,278 | 11,716 | 5,476 | 125 | 125,540 | 125,540 | ||||
| Financial liabilities from lease | 5,864 | 7,658 | 9,986 | 25,275 | 48,422 | 97,205 | 81,779 | ||||
| Total | 98,696 | 67,785 | 67,258 | 212,142 | 171,228 | 617,109 | 545,019 |
We manage hedging of exposure to interest rate risk:
In the structure of the Group’s and the Company’s financial liabilities as at 31 December 2023, liabilities from received loans, which bear interest at fixed interest rates represent a 27.7% share. The remaining liabilities arise from long-term loans with a variable interest rate.
In order to mitigate interest rate risk, the company entered into an interest rate swap (IRS) transaction after closing of 2023. As a result, the proportion of loans with a fixed or hedged interest rate increased to 51.9% by the end of February 2024. For more details see Note 46 Events after the reporting date.
| Telekom Slovenije Group | Telekom Slovenije | In EUR thousand | 31 Dec 2023 | 31 Dec 2022 | |
|---|---|---|---|---|---|
| Financial instruments with variable interest rate | Financial liabilities | 237,143 | 265,824 | 237,143 | 265,824 |
| Net financial liabilities | 237,143 | 265,824 | 237,143 | 265,824 |
The table is exclusive of non-interest bearing financial instruments and instruments bearing a fixed interest rate, as they are not exposed to interest rate risk.
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 increase/decrease | Effect on profit or loss before tax in EUR thousand | Telekom Slovenije Group | Telekom Slovenije, d.d. | EURO |
|---|---|---|---|---|
| +100 bps | -2,371* | -2,371* | EURO | |
| -100 bps | 2,371* | 2,371* | EURO |
| Interest rate increase/decrease | Effect on profit or loss before tax in EUR thousand | Telekom Slovenije Group | Telekom Slovenije, d.d. | EURO |
|---|---|---|---|---|
| +100 bps | -2,526* | -2,526* | EURO | |
| -100 bps | 2,658* | 2,658* | EURO |
*The calculation applies for the next 12 months.
| Change | EURIBOR Value at 31 Dec 2023 | EURIBOR Value at 31 Dec 2022 | (in percentage points) |
|---|---|---|---|
| 3-month | 3.909 | 2.132 | 1.777 |
| 6-month | 3.861 | 2.693 | 1.168 |
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.
Considered balance of long-term loans’ principals.
| Telekom Slovenije Group | Telekom Slovenije | In EUR thousand | 31 Dec 2023 | 31 Dec 2022 |
|---|---|---|---|---|
| Borrowings and other financial liabilities | 412,262 | 439,387 | 418,955 | 442,838 |
| Current investments and cash assets with short-term | -56,525 | -38,219 | -62,378 | -31,089 |
| deposits | Net financial liabilities | 355,737 | 401,168 | 356,577 | 411,749 |
|---|---|---|---|---|---|
| Equity | 658,638 | 611,677 | 630,189 | 606,233 | |
| Total assets | 1,317,866 | 1,275,338 | 1,250,315 | 1,223,290 | |
| Debt-to-equity ratio | 54.0% | 65.6% | 56.6% | 67.9% | |
| Equity-to-total assets ratio | 50.0% | 48.0% | 50.4% | 49.6% |
| Company: | GVO, gradnja in vzdrževanje telekomunikacijskih omrežij, d.o.o. |
|---|---|
| Registered office: | Ljubljana |
| Address: | Cigaletova ulica 10, 1000 Ljubljana |
| Tel: | +386 1 234 19 50 |
| Website: | www.gvo.si |
| Email: | gvo@telekom.si |
| Company: | Optic-T el telekomunikacije, d.o.o. |
|---|---|
| Registered office: | Ljubljana |
| Address: | Cigaletova 10, Ljubljana |
| Company: | Infratel, telekomunikacijska infrastruktura, d.o.o. |
|---|---|
| Registered office: | Ljubljana |
| Address: | Cigaletova 10, Ljubljana |
| Company: | Avtenta, napredne poslovne rešitve, d.o.o. |
|---|---|
| Registered office: | Ljubljana |
| Address: | Stegne 19, 1000 Ljubljana |
| Telephone: | +386 1 583 68 00 |
| Website: | www.avtenta.si |
| Email: | prodaja@avtenta.si, marketing@avtenta.si |
| Linkedin: | Avtenta |
| Facebook: | Avtenta, d.o.o. |
| Youtube: | Avtenta d.o.o. |
| Company: | TSmedia, medijske vsebine in storitve, d.o.o. |
|---|---|
| Registered office: | Ljubljana |
| Address: | Cigaletova 15, 1000 Ljubljana |
| Telephone: | +386 1 473 00 10 |
| Website: | www.tsmedia.si |
| Email: | info@tsmedia.si |
| Linkedin: | TSmedia |
| Facebook: | TSmedia |
| Youtube: | TSmedia |
| Company: | SOLINE Pridelava soli, d.o.o. |
|---|---|
| Registered office: | Seča |
| Address: | Seča 115, 6320 Portorož/Portorose |
| Telephone: | +386 5 672 13 43 |
| Website: | www.soline.si |
| Email: | info@soline.si |
| Facebook: | SOLINE Pridelava soli d.o.o. |
| Instagram: | Piranske Soline (@piranske_soline) |
| Company: | TSinpo, storitveno in invalidsko podjetje, d.o.o. |
|---|---|
| Registered office: | Ljubljana |
| Address: | Litostrojska cesta 58A, 1000 Ljubljana |
| Telephone: | +386 1 500 60 60 |
| Website: | www.tsinpo.si |
| Email: | info@tsinpo.si |
| Elektronski naslov: | info@tsinpo.si |
| Facebook: | TSinpo, storitveno in invalidsko podjetje |
| Company: | IPKO Telecommunications LLC |
|---|---|
| Registered office: | Prishtina, Kosovo |
| Address: | Lagija Ulpiana Rruga Zija Shemsiu Nr. 34, Prishtina |
| Tel.: | +381 38 700 700 |
| Website: | www.ipko.com |
| Email: | info@ipko.com |
Registered office: Zagreb, Croatia
Address: Margaretska 3
Website: http://www.siol.com/
Registered office: Sarajevo, Bosnia and Herzegovina
Address: Fra Anđela Zvizdovića 1
Website: http://www.siol.com/
Registered office: Podgorica, Montenegro
Address: Džordža Vašingtona 108/36A, The Capital Plaza
Website: http://www.siol.com/
Registered office: Skopje, North Macedonia
Address: Str. NAUM NAUMOVSKI BORCE no.50/2-12, SKOPJE – CENTAR
Website: http://www.siol.com/
Registered office: Belgrade, Serbia
Address: 27. marta 11
Website: http://www.siol.com/
Registered office: Prishtina, Kosovo
Address: Pejton, Str. Mujo Ulqinaku 5/1
Website: http://www.siol.com/
The Telekom Slovenije Group also uses the Alternative Performance Measures (APMs) defined by the ESMA to present its operating results.
The Telekom Slovenije Group also uses APMs to plan the operations of organisational units, subsidiaries and the Group, in reporting for the internal needs of monitoring the implementation of plans, and for setting of the objectives of organisational units and individuals for the needs of the remuneration system.
Items are expressed in values rounded to the nearest one thousand, except where it is stated that a measure is given in euros. The number of employees based on hours worked is not calculated for the Telekom Slovenije Group. The average number of employees is thus calculated based on the balance at the beginning and end of the period.
All proportions are expressed in percentages, generally rounded to one decimal place, or as the ratio between two categories.
Alternative Performance Measures are disclosed between key operating highlights and are as follows:
| Alternative performance measure | Calculation methodology | Selection of measure |
|---|---|---|
| EBIT | Operating revenues – operating expenses | One of the key indicators of the performance of a company, and an indicator of the profitability that a company achieves in the performance of its core activity. |
| Adjusted operating profit | Operating revenues – operating expenses taking into account one-off events that are not part of ordinary operations, such as one-time impairments of assets, adjustments for IFRS 16, etc.; stated under the calculation table. | We eliminate the effects of one-off events for the sake of consistency and the comparability of operations with the previous year. |
| Earnings before interest, taxes, depreciation and |
| amortisation (EBITDA) | EBIT + depreciation and amortisation | Operating profit or loss before write-downs. Indicator of the performance of a company in its core activity and a good approximation of cash flows from operating activities. |
|---|---|---|
| Adjusted earnings before interest, taxes, depreciation and amortisation | EBIT + depreciation and amortisation taking into account adjustments for one-off events that are not part of ordinary operations, such as one-time impairments of assets, adjustments for IFRS 16, etc.; stated under the calculation table. | We eliminate the effects of one-off events for the sake of consistency and the comparability of operations with the previous year. |
| Earnings before interest, taxes, depreciation and amortisation as a proportion of sales revenue (%) | EBITDA / sales revenue x 100 | Measure of commercial success and profitability. |
| Earnings before interest, taxes, depreciation and amortisation as a 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 – 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
Operating costs + labour costs + dividends + corporate income tax. Scope of generated assets divided amongst stakeholders.
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 / 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.
EBIT / sales revenues. Indicator of a company’s pricing policy and ability to control costs.
| Calculation methodology | Selection of measure |
|---|---|
| Net financial debt on earnings before interest, taxes, depreciation and amortisation | Net financial debt / Earnings before interest, taxes, depreciation and amortisation |
| Ratio that indicates how many years would be required to repay financial debt from existing liquid assets and cash flows from operating activities, assuming the same level of operations and profitability | |
| ROE (net return on equity) in % | Net profit or loss / (value of equity on first day of period + value of equity on last day of period) / 2) x 100 |
| Indicator of a company’s efficiency in the generation of profit from sources provided by owners and/or shareholders. The measure is also used by SDH to measure the performance of companies with capital assets of the state. | |
| Sponsorships and donations as a proportion of net sales revenue | Sponsorships and donations / net sales revenue |
| Indicator of the value of a company’s investments in the social environment. The measure is also used by SDH to measure the performance of companies with capital assets of the state. |
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:
The Telekom Slovenije Group reported in accordance with the GRI standards for the period 1 January 2023 to 31 December 2023.
GRI 1 used
GRI 1: Foundation 2021
Applicable GRI Sector Standard(s)
GRI G4 – Media, GRI 2002 – Telecommunications
2-1 Organisational details
1.1/3–4
6/44–48
2-2 (ESRS 2 BP-1) Entities included in the organisation’s sustainability reporting
Telekom Slovenije Group companies do not have non-guaranteed hours employees.
In addition to the GRI code numbers, the table also shows links to the relevant ESRS data points (ESRS standards will be in force from the 2024 calendar year).
(ESRS 2 GOV-1, GOV-2, SBM-2, G1 GOV-1)
8.1.1/91–92
8.4.1/140–144
(ESRS 2 GOV-1, GOV-2, G1-3)
8.1.1/91–92
8.4.1/140–144
(ESRS 2 GOV-1, GOV-5, IRO-1)
8.1.1/91–92
5.3/25–39
8.4.1/140–144
(ESRS 2 GOV-2, G1-1, G1-3)
8.4.1/140–144
(ESRS 2 GOV-1)
8.1.1/91–92
5.3/25–39
(ESRS 2 GOV-3, E1.GOV-3)
5.3/25–39
(ESRS 2 GOV-3)
5.3/25–39
5.3/25–39
2-22
(ESRS 2 SBM-1) 2/11–13
(S1-1, S2-1, S4-1) 8.1.1/91–92
8.2.1/101-109
8.4.1/140–144
(ESRS 2 GOV-2, S1-4, G1-1) 8.2.1/101-109
8.4.1/140–144
(S1-1, S2-1, S4-1) 8.4.1/140–144
(G1-1, G1-3) 8.4.1/140–144
(ESRS 2 SBM-3, S1-17, G1-4) 8.2.1/101-109
8.2.2/109-112
8.3.1/113-115
10.3/VI
| GRI standard | Description of disclosure | Section/page | Omitted requirements | Reason and explanation for omission |
|---|---|---|---|---|
| 3-1 (ESRS 2 BP-1, IRO-1) | Process to determine material topics | 8.1.2/92–96 | ||
| 3-2 (ESRS 2 BP-2) | List of material topics | 8.1.2/92–96 | ||
| ECONOMIC IMPACTS | ||||
| GRI 201: Economic performance 2016 | ||||
| 3-3 | Management of material topics | 4.1/16 | ||
| 201-1 (ESRS 2 SBM-1) | Direct economic value generated and distributed | 7.3/63–65 | 7.7.2/77–83 | 8.3.1/113-115 |
| We only report on taxes for the Telekom Slovenije Group. | ||||
| 201-2 (ESRS 2, E1 SBM-3, E1-3, E1-9) | Financial implications and other risks and opportunities for the organisation’s | 7.3/63–65 | 8.2.1/101-109 |
201-3
8.3.3/121–137
3-3
4.1/16
Ratios of standard entry level wage by gender compared to local minimum wage
8.3.3/121–137
Share of location management
8.3.3/121–137
3-3
7.5/68
7.6/69–75
Development and impact of significant infrastructure investments and services supported by the organisation
7.5/68
7.6/69–75
3-3
8.3.4/137–139
Proportion of spending on local suppliers
8.3.4/137–139
3-3
8.4.1/140–144
Communication and training about anti-corruption policies and procedures
8.4.1/140–144
Number of legal proceedings for anti-competitive behaviour, anti-trust and monopoly practices and their outcomes
Approach to tax
We do not report on the evaluation of the approach to the management of taxes or on the link between the management of tax liabilities and sustainable development.
Tax governance, control and risk management
Tax-related disclosures are verified by an independent external auditor. The auditor’s opinion can be found on page 256 of the financial report.
Stakeholder engagement
We include stakeholders and tax-related regulatory bodies in the process of fulfilling tax obligations.
Country-by-country reporting
Management of material topics
The area of energy is governed in Slovenia by the Energy Act. We also have in place a system in accordance with international standards ISO 50001 (energy management system) and ISO 14001 (environmental management system).
We report on the consumption of heating fuel in euros. We do not report on energy sources consumed (renewable and non-renewable sources). We use electricity produced by solar plants strictly for own needs.
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
We report the relevant reductions in consumption for Telekom Slovenije.
(ESRS 2 SBM-3, IRO-1, E3-2, E3-3)
We only report on how water is withdrawn and discharged.
(E2-3)
We do not report on the methodology/standards used to determine the consumption and quality of the discharge of water.
(E3-4)
(E4-1)
(E4 SBM-3, IRO1, E4-5)
We report on the location and size of land managed by the company in protected natural areas.
(E4-5)
(E4-3)
We do not report on the methodologies that were used for that purpose.
Management of material topics
We control the evaluation of the approach in accordance with the ISO 14001 standard.
Direct greenhouse gas emissions (Scope 1)
Energy indirect (Scope 2) GHG emissions
Other indirect (Scope 3) GHG emissions
Management of material topics
We control the evaluation of the approach in accordance with the ISO 14001 standard.
Waste generation and significant waste-related impacts
We do not report on the evaluation of the management approach.
Data by gender are not disclosed.
We report on the number and proportion of employees who took advantage of and returned from parental leave by gender.
Deadlines for notifying employees are in line with valid legislation and are not
| 8.3.3/121–137 | 403-1 | Occupational health and safety management system |
|---|---|---|
| 8.3.3/121–137 | 403-2 | Hazard identification, risk assessment and incident investigation |
| 8.3.3/121–137 | 403-3 | (S1-1) Occupational health services |
| 8.3.3/121–137 | 403-4 | Worker participation in the development, implementation and evaluation of the occupational health and safety system |
| 8.3.3/121–137 | 403-5 | Training in the area of occupational health and safety |
| 8.3.3/121–137 | 403-6 | Promotion of health |
| 8.3.3/121–137 | 403-7 | Prevention and mitigation of occupational health and safety impacts directly linked to a company’s services and products |
We only report on the identification of work-related hazards. The Health Committee monitors and handles recommendations to improve the safety and health of employees.
our operations. We inform employees about this topic via the intranet and users via brochures at points of sale.
(S1-14) Workers covered by an occupational health and safety management system
(S1-4, S1-14) Number of work-related injuries and rate
Reporting relates to the number of injuries.
(S1-4, S1-14) Occupational diseases
Annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023
(S1-13) Average number of education and training hours per employee by gender and by employee category
We report the absolute number of hours for the number of training hours by employee category.
(S1-1) Programmes for training and lifelong learning
(S1-13) Percentage of employees receiving regular performance and career development reviews by gender
We do not report on percentages by employee category or gender.
(ESRS 2 GOV-1, S1-6, S1-9, S1-12)
We do not report by minorities, as we do not make a distinction in this regard.
We do not report data regarding employees by age.
(S1-16)
(S1-17)
(G1-5)
We do not report on product marking.
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
Substantiated complaints concerning breaches of customer privacy and losses of customer data
Measures to improve accessibility to media content and the protection of vulnerable audiences
Infrastructure investments in the telecommunications network by region
Health and safety measures for field personnel
Services to the population in remote, less populated regions
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
Quantitative level of available telecommunication products and services in operating regions
Programmes for providing and maintaining telecommunication links and services in extraordinary circumstances and in the event of natural disasters
We manage emergencies with the business continuity management system.
Policies and practices to publicly communicate on EMR-related issues
Initiatives to ensure the clarity of charges and tariffs
| Topic | Description of indicator | Section/page | Indicator code |
|---|---|---|---|
| Environmental footprint of operations | Energy consumption | 8.2.1/101-109 | TC-TL-130a.1 |
| Competitive behaviour & open internet | Total amount of monetary losses as a result of legal proceedings associated with anticompetitive behaviour regulations | 8.4.1/140–144 | TC-TL-520a.1 |
| Managing technology disruptions | Systems to provide unimpeded service during service interruptions | We manage emergencies with the business continuity management system. | TC-TL-550a.2 |
| Data privacy | Description of policies and practices relating to behavioural advertising and customer privacy | 8.4.1/140–144 | TC-TL-220a.1 |
| Total amount of monetary losses as a result of legal proceedings associated with customer privacy | 8.4.1/140–144 | TC-TL-220a.3 | |
| Data security | Number of personal data breaches | 8.4.1/140–144 | TC-TL-230a.1 |
| Description of approach to identifying and addressing data security risks, including |
| Number of wireless subscribers | 7.7.2/77–83 | TC-TL-000.A |
|---|---|---|
| Number of wireline subscribers | 7.7.2/77–83 | TC-TL-000.B |
| Number of broadband subscribers | 7.7.2/77–83 | TC-TL-000.C |
| Abbreviation | English term | Slovene translation |
|---|---|---|
| Cloud services | Storitve v oblaku | |
| Roam like at home | Gostuj kot doma | |
| Small cell | Mala celica | |
| 2G (GSM) | Global system for mobile communication | Globalni sistem mobilnih komunikacij |
| 3G (UMTS) | Universal Mobile Telecommunications System | Univerzalni mobilni telekomunikacijski sistem / protokol 3G |
| 4G (LTE) | Long Term Evolution | LTE/4G, post LTE/4G, po 3 GPP mobilnem standardu |
| 5G | 5th generation mobile network | Mobilno omrežje pete generacije |
| AAA | Authentication Authorization Accounting | Sistem za avtentikacijo in avtorizacijo uporabnikov |
| ADSL | Asymmetric digital subscriber line | Asimetrični digitalni naročniški vod |
| AKOS | The Agency for Communication Networks and Services of the RS | Agencija za komunikacijska omrežja in storitve RS |
| APM | Alternative Performance Measures |
Regulatory Authority of Electronic and Postal Communications of Kosovo
Agencija za elektronske in poštne komunikacije Kosova
Slovenian Environment Agency
Agencija Republike Slovenije za okolje
Slovenian Competition Protection Agency
Javna agencija Republike Slovenije za varstvo konkurence
Business Connect as a service
Sodobna rešitev za upravljanje dokumentarnega gradiva kot storitev
Gross Domestic Product
Bruto domači proizvod
Business process management
Upravljanje poslovnih procesov
Compound Annual Growth Rate
Povprečni letni prirast
Capital Expenditure
Vrednost investicij
Committee of Sponsoring Organizations of the Treadway Commission, Enterprise risk management Integrated Framework
Odbor sponzorskih organizacij Treadwayeve komisije, Upravljanje tveganj v organizaciji v povezavi s strategijo in delovanjem organizacije
Customer premises equipment
Oprema pri uporabniku
Customer Satisfaction Index
Indeks zadovoljstva uporabnikov
Cloud Solution Provider
Ponudnik rešitev v oblaku
| Abbreviation | English term | Slovene translation |
|---|---|---|
| CSRD | Corporate Sustainability Reporting |
| DDOS | Distributed Denial of Services | Porazdeljena zavrnitev storitve |
|---|---|---|
| VAT | Value added tax | Davek na dodano vrednost |
| DHCP | Dynamic Host Configuration Protocol | Omrežni protokol za dinamično dodeljevanje IP naslovov končnim napravam. gostitelja |
| DNS | Domain Name System | Sistem za mapiranje domenskih imen v IP naslove |
| DOCIS | Data Over Cable Service Interface Specification | Vmesnika prenosa podatkov po kablu |
| EBIT | Earnings before interest, taxes | Dobiček iz poslovanja pred obrestmi in davki |
| EBITDA | Earnings before interest, taxes, depreciation and amortization | Dobiček iz poslovanja pred obrestmi, davki in amortizacijo |
| EFQM | European Foundation for Quality Management | Evropska nagrada za poslovno odličnost |
| EMR | Electromagnetic radiation | Elektromagnetna sevanja |
| ERP | Enterprise Resource Planning | Poslovni informacijski sistem |
| ESG | Environment, social, governance | Okolje, družba, upravljanje |
| ESMA | European Securities and Markets Authority | Evropski nadzorni organ za vrednostne papirje in trge |
| ESF | European Social Fund | Evropski socialni sklad |
| ETNO | European Telecommunications Network Operators | Evropsko združenje telekomunikacijskih operaterjev |
| Abbreviation | English term | Slovene translation |
|---|---|---|
| EU | European Union | Evropska unija |
| EWSD | Elektronisches Wählsystem (Digital Electronic Digital Switching System) | Elektronski digitalni preklopni sistem |
| FTTH | Fiber To The Home | Optično vlakno do doma |
| FTTP | Fiber To The Premises | Optično vlakno do prostora |
| FTTx | Fiber To The Exchange | Optika do X |
| GHG Protocol | GHG Protocol Corporate Accounting and Reporting Standard | Protokol o toplogrednih plinih Standardi za podjetniško računovodstvo in poročanje |
| GIS | Geographical Information System | Geografski informacijski sistem |
| GRI | Global reporting initiative | Pobuda za globalno poročanje |
| HR | Human Resource | Človeški viri |
| HVAC | Heating, ventilation and air conditioning | Ogrevanje, prezračevanje in klimatizacija |
| IaaS | Infrastructure as a service | Infrastruktura kot storitev |
| ICNIRP | International Commission on Non-Ionizing Radiation Protection | Mednarodna komisija za varstvo pred neionizirnimi sevanji |
| ICT/IKT | Information and Communication Technologies | Informacijsko komunikacijske tehnologije |
| IoT | Internet of Things |
IP television
Televizija prek internetnega protokola
International Organization for Standardization
Mednarodna organizacija za standardizacijo
Information Technology
Informacijska tehnologija
Kosovo Energy Distribution Services
Kosovsko elektrodistribucijsko podjetje
Sečovlje Salina Nature park
Krajinski park Sečoveljske soline
Multi-access edge computing
Sodostopno računalništvo na robu
Multichannel multipoint distribution service
Večkanalska večtočkovna razdelilna storitev
Slovenian ranking reach of websites
Merjenje obiskanosti spletnih strani
Multiprotocol label switching
Tehnologija za posredovanje, usmerjanje in preklapljanje prometnih tokov skozi omrežje
International Financial Reporting Standards
Mednarodni standardi računovodskega poročanja
Managed Security Services Partner
Partner za upravljanje varnostnih storitev
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.
Net financial debt
Neto finančni dolg
Net Promotor Score
| Abbreviation | English term | Slovene translation |
|---|---|---|
| OPEX | Operating Expenses | Operativni stroški |
| ORVI | Measurement of organisational vitality | Merjenje organizacijske vitalnosti |
| OSS | Operations Support system | Sistem za podporo delovanja |
| OBN | Open Broadband network | Odprto širokopasovno omrežja |
| OTT | Over-the-top content | Storitve, ki delujejo neodvisno od omrežja – distribucija video- in avdiovsebin prek interneta |
| POP | Point of Presence | Točka prisotnosti |
| PPDFT | Anti-money laundering/counter-financing of terrorism (AML/CFT) compliance officer | Pooblaščenec za preprečevanje pranja denarja in financiranja terorizma |
| ROADM | Reconfigurable Optical Add-Drop Multiplexer | Nastavljiv optični multipleksor za dodajanje in odvzemanje |
| ROE | Return on Equity | Dobičkonosnost kapitala |
| RON | Regional Optical Network | Regionalno optično omrežje |
| SA | Stand-Alone | 5G samostojna arhitektura |
| SaaS | Software as a service | Programska oprema kot storitev |
| SAP | Systems Applications and Products | Programska oprema za posel |
| SAPaaS | SAP as a service | Aplikacija SAP |
| SASB | Sustainability Accounting Standards |
| Abbreviation | Full Form | Translation |
|---|---|---|
| SDG | Sustainable Development Goals | Cilji trajnostnega razvoja |
| SDH | Slovenski državni holding | Slovenski državni holding |
| SD-WAN | Software-defined wide-area networking | Programsko opredeljena širokopasovna omrežja |
| SMS | Short Message Service | Storitev kratkih sporočil |
| SOK | Slovenian Advertising Code | Slovenski oglaševalski kodeks |
| SPLA | Service Provider Licence Agreement | Licenčni sporazum za ponudnika storitev |
| BCMS/SUNP | Business continuity management system | Sistem upravljanja neprekinjenega poslovanja |
| EEMS | Efficient Energy Management System | Sistem učinkovitega ravnanja z energijo |
| SURS | Statistical office of Republic Slovenia | Statistični urad Republike Slovenije |
| ISMS/SUVI | Information security management system | Sistem upravljanja varovanja informacij |
| TDM | Time Division Multiplex | Časovni multipleks, sistem s porazdeljevanjem časa |
| GHG | Greenhouse gases | Toplogredni plini |
| TLSG | Shares of Telekom Slovenije | Delnica družbe Telekom Slovenije |
| TOM | Telephone |
|---|---|
| Phone for children and adolescents | Telefon za otroke in mladostnike |
| TSLO-CERT | Telekom Slovenije – Cyber security Response Team |
| Odzivni center za kibernetsko varnost Telekoma Slovenije | |
| IMAD/UMAR | Institute of macroeconomic analysis and development |
| Urad za makroekonomske analize in razvoj | |
| VALÚ | Advanced financial service that facilitates payments with a mobile phone at numerous payment points with the VALÚ mark. |
| Napredna finančna storitev, ki omogoča plačevanje z mobilnim telefonom na številnih plačilnih mestih z oznako VALÚ | |
| VDSL | Very High Speed Digital Subscriber Line |
| Digitalni naročniški vod z zelo visokimi hitrostmi | |
| SCC | Security Control Centre |
| Varnostno nadzorni center | |
| VoIP | Voice over IP |
| Govor prek IP-protokola | |
| VPN | Virtual private network |
| Navidezno zasebno omrežje | |
| Wi-Fi | Wireless Fidelity |
| Brezžično omrežje po standardih IEEE 802.11 | |
| xWDM | Wavelength Division Multiplexing |
| Zgoščeni valovni multipleks | |
| ZDIJZ | Access to Information of a Public Nature Act |
| Zakon o dostopu do informacij javnega značaja | |
| ZDUS | Association of Pensioner Societies of Slovenia |
| Zveza društev upokojencev Slovenije | |
| ZEKom-2 | Electronic Communications Act |
| Zakon o elektronskih komunikacijah | |
| ZGD |
Publisher: Telekom Slovenije, d.d., Cigaletova 15, 1000 Ljubljana - official version
Text and editing: Skupina Telekom Slovenije in Studio Kernel d.o.o.
Translation: Amidas d.o.o. in Deloitte revizija, d.o.o.
Ljubljana, April 2023
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