Telekom Slovenije

Annual / Quarterly Financial Statement • Mar 8, 2024

Unaudited financial statements of the Telekom Slovenije Group and Telekom Slovenije, d.d.

for 2023

Contents

1.	INTRODUCTORY NOTE3
1.1.	Statement of responsibility of the Management Board 3
2.	ACHIEVEMENTS IN 2023 4
3.	TELEKOM SLOVENIJE GROUP 6
3.1.	Markets and companies of the Telekom Slovenije Group 6
3.2.	Analysis of operations 7
3.3.	Key operating indicators of the Telekom Slovenije Group 8
3.4.	Overview of operations by company and key market 9
3.5.	Trading in TLSG shares and ownership structure 11
3.6.	Market and market shares in key service segments 13
4.	STRATEGIC BUSINESS PLAN OF THE TELEKOM SLOVENIJE GROUP FOR THE PERIOD 2024–
	2028 14
4.1.	Vision, mission and values 14
4.2.	Summary of the Strategic Business Plan 14
5.	CORPORATE GOVERNANCE 16
6.	SIGNIFICANT EVENTS AFTER THE REPORTING DATE 17
7.	UNAUDITED FINANCIAL STATEMENTS OF THE TELEKOM SLOVENIJE GROUP AND TELEKOM SLOVENIJE 18

Ljubljana, March 2024

1. INTRODUCTORY NOTE

Pursuant to the law and the Rules of the Ljubljana Stock Exchange, Telekom Slovenije, d.d. (hereinafter: Telekom Slovenije), with its registered office at Cigaletova 15, Ljubljana, hereby publishes the unaudited financial statements of the Telekom Slovenije Group and Telekom Slovenije for 2023.

Telekom Slovenije's Supervisory Board discussed the unaudited financial statements of the Group and Telekom Slovenije for 2023 at its session held on 7 March 2024.

Any significant changes to the data contained in the prospectus for listing on the stock exchange are regularly published by the Company on the Ljubljana Stock Exchange's SEOnet website and on the Company's website at www.telekom.si.

The unaudited financial statements for 2023 are also accessible at the Company's website at www.telekom.si.

1.1. Statement of responsibility of the Management Board

The members of Telekom Slovenije's Management Board responsible for the compilation of the unaudited financial statements of the Telekom Slovenije Group and Telekom Slovenije for 2023 hereby declare that:

• to the best of our knowledge, the unaudited financial statements of the Telekom Slovenije Group and Telekom Slovenije have been compiled and published in accordance with valid legislation and the International Financial Reporting Standards as adopted by the EU; and
• the selected accounting policies were applied consistently in the compilation of the unaudited financial statements and any changes to those policies were disclosed, and that accounting estimates were made fairly and with careful consideration, according to the principle of prudence and the diligence of a good manager, and under the assumption that the Telekom Slovenije Group and Telekom Slovenije are going concerns.

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 – Workers' Director

2. ACHIEVEMENTS IN 2023

Operating revenues of EUR 708.2 million, an increase of 7% relative to 2022, were generated by the Telekom Slovenije Group.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) of EUR 228.6 million, an increase of 6% relative to 2022, were generated by the Telekom Slovenije Group.

Operating profit (EBIT) of EUR 64.1 million, an increase of 27% relative to 2022, was generated by the Telekom Slovenije Group.

A net profit of EUR 47.1 million, an increase of 25% relative to 2022, was generated by the Telekom Slovenije Group.

Net financial debt was 11% lower at the Telekom Slovenije Group level as at 31 December 2023 relative to 31 December 2022.

The Telekom Slovenije Group had 1,908,571 retail mobile users, an increase of 4% relative to 2022.

The Telekom Slovenije Group had 299,506 retail broadband connections, an increase of 1% relative to 2022.

We reduced electricity consumption by 3% at the Telekom Slovenije Group level relative to 2022.

We cover more than 60% of households in Slovenia with 5G technology and more than 97% of households with LTE/4G technology.

We facilitate the connection to our fibre optic network by more than 460,000 Slovenian households.

We facilitated the connection of an additional 16,980 households to that network.

"Immediate connection" to fixed broadband services is facilitated via Telekom Slovenije's 4G and 5G mobile network.

Successful management of security incidents and the provision of cyber security

Telekom Slovenije's 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 than in 2022. Despite the increase in the number of incidents, our experts successfully managed all security events. Using modern technology, we closely monitor, analyse and respond to security threats 24 hours a day.

More than 197 million voice commands

were given by subscribers to the NEO platform, which is the most advanced multimedia platform on the Slovenian market and delights users with rich content, simple use and numerous advanced functionalities.

More than 100,000 video content rentals were made in the DKino video store.

More than 140,000 Slovenes use the VALÚ Smart Wallet,

which can be used to make payments at more than 3,500 points of sale.

The eCare service is provided to almost 5,000 entitled users.

Together with the Slovene Federation of Pensioners' Associations (ZDUS), we were chosen via public tender to provide services in the remote eCare project.

The international TOP EMPLOYER

certificate, which Telekom Slovenije received for the third year in a row, is evidence that our excellent HR practices are comparable with global companies.

Donations of more than EUR 600,000,

in the form of funds and services, were earmarked by Telekom Slovenije for users, volunteer firefighter associations and humanitarian organisations following the floods that hit Slovenia.

The Green Star certificate

was received by Telekom Slovenije for its progress on the path to the green transformation.

Always for the better

is the updated basis of the Telekom Slovenije brand.

The first

to offer users 5G and eSIM technologies in Kosovo was IPKO.

3. TELEKOM SLOVENIJE GROUP

3.1. Markets and companies of the Telekom Slovenije Group

The Telekom Slovenije Group comprises the controlling company Telekom Slovenije and its subsidiaries. The composition of the Telekom Slovenije Group and participating interests as at 31 December 2023 are presented in the picture below.

The detailed composition of the Telekom Slovenije Group is presented on the website https://www.telekom.si/en/about-us/telekom-slovenije-group/subsidiraries.

Situation as at 31 December 2023

With the deletion from the business register in Germany on 25 September 2023, the liquidation of GVO Telekommunikation GmbH was completed. That company was owned by GVO, d.o.o. There were no other changes in the composition of the Telekom Slovenije Group or in the ownership of subsidiaries in 2023.

Telekom Slovenije is the founder of the Heart Foundation, the aim of which is to help the children of employees of Slovenian Telekom Slovenije Group companies who have lost one or both parents, or who are seriously ill. The foundation's funds are contributed voluntarily by the employees of Slovenian Telekom Slovenije Group companies.

3.2. Analysis of operations

The Telekom Slovenije Group achieved the following results in 2023:

• 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 insurance and eHealth services, while revenues were also higher on the wholesale market. Revenues generated on the market were up at all Group companies.
• The operating expenses of the Telekom Slovenije Group amounted to EUR 644.0 million, an increase of 6% relative to 2022. This is the result of 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) totalled EUR 228.6 million at the Telekom Slovenije Group level, an increase of EUR 12.1 million or 6% 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 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, an increase of EUR 9.6 million or 25% relative to 2022. Affecting Telekom Slovenije Group's net profit was a change in the corporate income tax rate from 19% to 22% from 2024 on, 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

Adjusted EBITDA, EBIT and net profit

* EBITDA and EBIT adjusted as energy prices in 2023 remained at the 2022 level, and if there was no state aid for energy in 2023 and there was no negative effect of floods. In addition to the aforementioned, the net profit is additionally adjusted for the impact of the changed tax rate.

• Net financial debt was 11% lower on 31 December 2023 than on 31 December 2022.
• The Telekom Slovenije Group had 4% or 66,127 more mobile users as at 31 December 2023 than as at 31 December 2022. Telekom Slovenije and IPKO increased the number of retail mobile users by 3,662 and 62,465 respectively. Telekom Slovenije increased the number of retail fixed broadband connections by 4,626.
• The Telekom Slovenije Group and Telekom Slovenije recognised the impairment of the infrastructure damaged in the August floods. That impairment was lower than the assessment 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 assessed at EUR 3.9 million, with Telekom Slovenije accounting for EUR 1.2 million of that amount. The assessed impairment of 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 must 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.

Fulfilment of the planned operating revenues, EBITDA and net profit of the Telekom Slovenije Group for 2023

in EUR million	Achieved in 2023	Planned in 2023	Index 2023 Achieved/ Planned
Operating revenues	708.2	680.8	104
EBITDA	228.6	206.2	111
Net profit	47.1	20.1	234

3.3. Key operating indicators of the Telekom Slovenije Group

Key operating indicators of the Telekom Slovenije Group

	Telekom Slovenije Group			Telekom Slovenije
in EUR thousand and %	I – XII 2023 / 31 December 2023	I – XII 2022 / 31 December 2022	Index 23/22	I – XII 2023 / 31 December 2023	I – XII 2022 / 31 December 2022	Index 23/22
Sales revenue	694,913	652,121	107	601,669	575,886	104
Other operating income	13,254	6,832	194	9,628	3,225	299
Total operating revenues	708,167	658,953	107	611,297	579,111	106
EBITDA	228,569	216,452	106	174,421	167,365	104
EBITDA margin = EBITDA / sales revenue	32.9%	33.2%	99	29.0%	29.1%	100
EBIT	64,138	50,362	127	36,552	28,484	128
Return on sales = EBIT / sales revenue (EBIT margin)	9.2%	7.7%	120	6.1%	4.9%	123
Net profit	47,065	37,506	125	23,864	20,793	115
Assets	1,317,866	1,275,338	103	1,250,315	1,223,290	102
Equity	658,638	611,677	108	630,189	606,233	104
Equity ratio	50.0%	48.0%	104	50.4%	49.6%	102
Net financial debt	355,737	401,168	89	356,577	411,749	87

3.4. Overview of operations by company and key market

Operating revenues

in EUR thousand	I – XII 2023	I – XII 2022	Index 23/22
Telekom Slovenije	611,297	579,111	106
Other companies in Slovenia	100,892	96,890	104
IPKO – Kosovo	92,283	80,966	114
Other companies abroad	3,973	3,970	100
Exclusions and adjustments between Group companies	-100,278	-101,984	-
Telekom Slovenije Group	708,167	658,953	107

Earnings before interest, taxes, depreciation and amortisation (EBITDA)

in EUR thousand	I – XII 2023	I – XII 2022	Index 23/22
Telekom Slovenije	174,421	167,365	104
Other companies in Slovenia	8,779	9,830	89
IPKO – Kosovo	51,006	43,548	117
Other companies abroad	2,811	2,829	99
Exclusions and adjustments between Group companies	-8,448	-7,120	-
Telekom Slovenije Group	228,569	216,452	106

EBIT

in EUR thousand	I – XII 2023	I – XII 2022	Index 23/22
Telekom Slovenije	36,552	28,484	128
Other companies in Slovenia	2,697	3,823	71
IPKO – Kosovo	27,050	18,819	144
Other companies abroad	1,058	956	111
Exclusions and adjustments between Group companies	-3,219	-1,720	-
Telekom Slovenije Group	64,138	50,362	127

Net profit for the financial year

in EUR thousand	I – XII 2023	I – XII 2022	Index 23/22
Telekom Slovenije	23,864	20,793	115
Other companies in Slovenia	1,592	2,810	57
IPKO – Kosovo	21,886	14,922	147
Other companies abroad	598	550	109
Exclusions and adjustments between Group companies	-875	-1,569	-
Telekom Slovenije Group	47,065	37,506	125

Investments

in EUR thousand	I – XII 2023	I – XII 2022	Index 23/22
Telekom Slovenije	158,930	114,086	139
Other companies in Slovenia	23,707	23,109	103
IPKO – Kosovo	23,629	38,924	61
Other companies abroad	1,670	1,374	122
Exclusions and adjustments between Group companies	-19,899	-9,702	-
Telekom Slovenije Group	188,037	167,791	112

Employees

Number of employees as at	31 December 2023	31 December 2022	Index 23/22
Telekom Slovenije	2,083	2,103	99
Other companies in Slovenia	684	681	100
IPKO – Kosovo	486	478	102
Telekom Slovenije Group	3,253	3,262	100

TELEKOM SLOVENIJE GROUP CONNECTIONS AND SERVICES BY MARKET

Retail mobile users

Number of users as at	31 December 2023	31 December 2022	Index 23/22
Slovenia	953,441	949,779	100
Kosovo	955,130	892,665	107
Telekom Slovenije Group	1,908,571	1,842,444	104

Retail broadband connections

Number of connections as at	31 December 2023	31 December 2022	Index 23/22
Slovenia	201,236	196,610	102
Kosovo	98,270	101,285	97
Telekom Slovenije Group	299,506	297,895	101

3.5. Trading in TLSG shares and ownership structure

General information regarding Telekom Slovenije shares as at 31 December 2023

General information regarding shares
Ticker symbol	TLSG
ISIN code	SI0031104290
Listing	Ljubljana Stock Exchange, prime market
Share capital (EUR)	272,720,664.33
Number of ordinary registered no-par value shares	6,535,478
Number of shares held in treasury	36,836
Number of shareholders as at 31 December 2023	8,262

Trading in TLSG shares

The shares of Telekom Slovenije are listed on the prime securities market of the Ljubljana Stock Exchange under the ticker symbol TLSG. The shares are included in the SBITOP and SBITOP TR share indices, and accounted for 4.57% of those two indices according to the quarterly review of computational parameters conducted on 18 December 2023. The SBITOP and SBITOP TR are the Slovenian 'blue chip' indices and offer information regarding the movement of the most liquid and largest shares on the Ljubljana Stock Exchange. In contrast to the SBITOP, the SBITOP TR takes into account both market prices and dividends in its calculation. TLSG shares are also included in the ADRIAprime share index, which is a composite index of selected companies listed on the prime markets of the Ljubljana Stock Exchange and Zagreb Stock Exchange. It is a total return index that takes into account both changes in share prices and dividends.

The price of TLSG shares closed at EUR 60.50 on the last trading day of 2023. The share price rose by 28.18% in year-on-year terms, while the SBITOP index was up by 19.81% during the same period. The market capitalisation of Telekom Slovenije was EUR 395.40 million at the end of 2023. Turnover in Telekom Slovenije's shares (excluding block trades) totalled EUR 12.37 million, representing 4.36% of total turnover on the Ljubljana Stock Exchange. Total turnover including block trades was EUR 17.85 million.

Change in share price and turnover in TLSG shares

Source: Ljubljana Stock Exchange, archive of data.

Ownership structure and largest shareholders as at 31 December 2023

Telekom Slovenije had 8,262 shareholders as at 31 December 2023, a decrease of 196 relative to the end of 2022.

At 0.42 percentage points, domestic and foreign individuals recorded the most significant increase in ownership stake in 2023, while foreign legal entities increased their stake by 0.05 percentage points. Domestic financial companies and funds, and domestic companies decreased their ownership stakes by 0.37 percentage points

and 0.10 percentage points, respectively.

* Individual shareholders include individuals who pursue gainful activities on the market.

The concentration of ownership, as measured by the ownership stake held by the ten largest shareholders, stood at 79.58% as at 31 December 2023, a decrease of 0.59 percentage points in year-on-year terms.

3.6. Market and market shares in key service segments

Changes in the number of connections on the electronic communications market in Slovenia

Source: Statistical Office of the Republic of Slovenia, Electronic Communications, third quarter of 2023.

Telekom Slovenije's market shares in the fourth quarter of 2023 in key market segments

Source: Report on the development of the electronic communications market for the fourth quarter of 2023, AKOS; internal Telekom Slovenije figures.

4.STRATEGIC BUSINESS PLAN OF THE TELEKOM SLOVENIJE GROUP FOR THE PERIOD 2024–2028

4.1. Vision, mission and values

4.2. Summary of the Strategic Business Plan

The Strategic Business Plan of the Telekom Slovenije Group for the period 2024–2028 represents the core corporate document. Defined in that document through its mission, vision, values, business model and objectives is the Telekom Slovenije Group's future development.

That document is based on available data, taking into account regulatory restrictions and trends in the macroeconomic environment of the region in which the Telekom Slovenije Group operates. In drafting the document, we took into account analyses of operations and the market shares of comparable European operators, analyses of the competition, development expectations and trends in the telecommunication sector.

Connecting opportunities

The future development of the Telekom Slovenije Group is based on the vision 'Connecting opportunities'. We represent the infrastructure foundation of connected users and devices.

The development of the Telekom Slovenije Group in the coming period will rely on highly qualified employees, the most advanced technologies, and sustainable development and social responsibilities.

The Group's future operations will focus on three strategic pillars:

• 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.
• 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.
• We will improve operational efficiency through the continued digitalisation of operations, the reduction of costs and the improved efficiency of investing activities.

Sustainable development

We include the principles of sustainability in our operations, products, services and content. We ensure the highest coverage through broadband access and advanced digital services. We responsibly accept our role in the adaptation to and mitigation of climate change, in part by reducing our carbon footprint, through energy efficiency and the use of cleaner energy sources. Together with our partners, we are promoting the transformation to a carbon-neutral and digitally connected Slovenia with a comprehensive range of solutions for the further development of smart cities, businesses and communities. Through our activities, we are bridging the digital divide and striving for an inclusive, healthy and safe society.

Objectives of the Telekom Slovenije Group for 2024

in EUR million	Objectives for 2024
Operating revenues	717.4
Earnings before interest, taxes, depreciation and amortisation (EBITDA)	233.6
Net profit	43.2
Value of investments	235.7

5. CORPORATE GOVERNANCE

Management Board

Telekom Slovenije's Management Board functioned in the following composition as at 31 December 2023:

• Boštjan Košak, President,
• Boštjan Škufca Zaveršek, MSc, Vice-President,
• Irma Gubanec, MSc, member,
• Vesna Prodnik, MSc, member, and
• Špela Fortin, member and Workers' Director.

President of the Management Board Boštjan Košak began his four-year term of office on 4 October 2022. Irma Gubanec, MSc began her four-year term of office on 12 October 2022. Boštjan Škufca Zaveršek, MSc, who was appointed Vice-President of the Management Board, and Vesna Prodnik, MSc began their four-year terms of office on 14 November 2022. Member of the Management Board and Workers' Director Špela Fortin began her second four-year term of office on 14 September 2023.

Supervisory Board

Telekom Slovenije's Supervisory Board comprises nine members, six of whom are shareholder representatives and three of whom are employee representatives. The members of the Supervisory Board submitted a statement of compliance with the criteria of independence in accordance with the Corporate Governance Code.

The Supervisory Board comprised the following members as at 31 December 2023:

Shareholder representatives:

• Žiga Debeljak, MSc, President,
• Karla Pinter, MSc, Vice-President,
• Marko Boštjančič, member,
• Alenka Čok Pangeršič, MSc, member,
• Mateja Čuk Orel, MSc, member, and
• Aleksander Igličar, MSc, member.

Employee representatives:

• Drago Kijevčanin, Vice-President,
• Dušan Pišek, member, and
• Rok Pleteršek, member.

Members of the Supervisory Board are elected for a term of four years.

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.

For more information, visit https://www.telekom.si/en/about-us/company.

6. SIGNIFICANT EVENTS AFTER THE REPORTING DATE

• For the third year in a row, Telekom Slovenije received the international Top Employer certificate, which is received by companies that implement excellent HR practices.
• On 23 January, the Court of Audit of the Republic of Slovenia published the audit report 'Efficiency of the operations of Telekom Slovenije, d.d.' The Court of Audit audited the efficiency of Telekom Slovenije's operations in the period 1 January 2019 to 31 October 2022. The audit report did not impose any measures on the Company, nor was the submission of a response report required.
• On 2 February 2024, the Ljubljana District Court sent Telekom Slovenije the preliminary filing of the plaintiff in connection with the lawsuit filed by T-2, d.o.o., according to which the latter proposes an increase in its claim in the amount of EUR 59 million. We will respond appropriately and in a timely manner to the received filing and amended claim.
• The 37th General Meeting of Shareholders of Telekom Slovenije was held on 7 February 2024. Shareholders supported the proposal that EUR 40,291,580.40 be earmarked for the payment of dividends, i.e. EUR 6.20 gross per share.
• With the aim of mitigating interest rate risk, Telekom Slovenije entered into an interest rate swap (IRS) in February 2024 for 75% of the principal amount of a long-term loan drawn down at the end of 2023. As a result, the proportion of the total financial liabilities of the Group and Company accounted for by loans bearing a fixed or hedged interest rate rose to 51.9% at the end of February 2024.

7. UNAUDITED FINANCIAL STATEMENTS OF THE TELEKOM SLOVENIJE GROUP AND TELEKOM SLOVENIJE

Consolidated and separate income statement
		Telekom Slovenije Group		Telekom Slovenije
in EUR thousand	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
Cost 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
Earnings before interest and taxes	64,138	50,362	36,552	28,484
Finance income	2,015	3,505		5,971
Finance expenses	-18,661	-8,442	-19,217	-8,608
Profit before tax	47,492	45,425	22,846	25,847
Corporate income tax	-4,890	-5,020	-2,062	-2,348
Deferred taxes	4,463	-2,899	3,080	-2,706
Net profit	47,065	37,506	23,864	20,793
Earnings per share
Basic earnings per share in EUR	7.24	5.77	3.67	3.20
Diluted earnings per share in EUR	7.24	5.77	3.67	3.20

Consolidated and separate statement of other comprehensive income
	Telekom Slovenije Group		Telekom Slovenije
in EUR thousand	I – XII 2023	I – XII 2022	I – XII 2023	I – XII 2022
Net profit for the period	47,065	37,506	23,864	20,793
Other comprehensive income that may be subsequently reclassified to the statement of profit or loss	-14	62	-16	55
Translation reserves	0	8	0	0
Effective part of change in the fair value of hedging instrument	-19	107	-20	108
Deferred tax	5	-53	4	-53
Other comprehensive income that may not be subsequently reclassified to the statement of profit or loss	14	3,325	107	2,784
Actuarial gains and losses	-53	3,661	39	3,119
Net gain/loss on equity instruments at fair value through other comprehensive income	37	-160	37	-160
Change in the fair value of financial assets through other comprehensive income	29	-258	30	-257
Deferred tax	1	82	1	82
Other comprehensive income for the period after tax	0	3,387	91	2,839
Total comprehensive income for the period	47,065	40,893	23,955	23,632
Total comprehensive income for the period that pertains to:	47,065	40,893	23,955	23,632
owners of the controlling company	47,065	40,893	23,955	23,632

	Telekom Slovenije Group			Telekom Slovenije
	31	31	31	31 December
in EUR thousand	December 2023	December 2022	December 2023	2022
ASSETS
Intangible assets	203,754	204,352	162,379	155,259
Property, plant and equipment	686,497	679,501	607,716	604,932
Right-of-use assets	79,205	75,419	85,356	78,126
Investments in subsidiaries	0	0	36,920	38,720
Other investments	2,472	2,448	22,014	48,505
Contract assets	4,179	3,624	3,749	3,234
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
Receivables for corporate income tax	932	1,387	442	1,286
Contract assets	14,148	15,942	14,036	15,562
Deferred costs	6,743	4,545	4,855	3,741
Investments	1,046	837	18,002	11,516
Cash and cash equivalents	55,479	37,382	44,376	19,573
Total current assets	273,861	243,822	264,566	225,060
Total assets	1,317,866	1,275,338	1,250,315	1,223,290
EQUITY AND LIABILITIES
Share capital	272,721	272,721	272,721	272,721
Share premium	181,489	181,489	180,956	180,956
Profit reserves	106,479	106,479	104,978	104,978
Legal reserves	51,612	51,612	50,434	50,434
Reserves for treasury shares and interests	4,065	4,065	4,065	4,065
Treasury shares and interests	-4,065	-4,065	-4,065	-4,065
Statutory reserves	54,854	54,854	54,544	54,544
Other profit reserves	13	13	0	0
Retained earnings	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 reserves	-172	-188	-172	-188
Reserves for actuarial gains/losses	1,429	1,155	1,214	897
Translation reserves	52	18	0	0
Total equity	658,638	611,677	630,189	606,233
Contract liabilities	19,730	17,072	19,237	16,425
Provisions	24,711	21,220	21,139	17,925
Other liabilities	23,336	8,177	17,316	3,847
Accrued liabilities	8,916	5,810	426	666
Loans and borrowings	306,578	236,683	306,578	236,683
Lease liabilities	65,216	59,342	70,267	60,871
Deferred tax liabilities	304	1,893	0	293
Total non-current liabilities	448,791	350,197	434,963	336,710
Trade payables	123,746	123,915	108,222	99,300
Income tax payable	7	221	0	0
Loans and borrowings	30,598	132,757	30,598	132,757
Lease liabilities	9,868	10,603	11,512	12,527
Other financial liabilities	2	2	0	0
Contract liabilities	11,907	10,275	5,779	5,602
Accrued liabilities	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

Consolidated and separate statement of financial position

Consolidated statement of equity of the Telekom Slovenije Group			for year 2023

					Profit reserves				Retained earnings					Total
in EUR thousand	Share capital	Share premium	Legal reserves	Treasury share reserves	Treasury shares	Statutory reserves	Other profit reserves	Retained earnings from previous years	Profit or loss for the period	Fair value reserve for financial instruments	Fair value reserve for hedging instruments in net amount	Reserves for actuarial deficits and surpluses	Translation reserves
Balance as at 1 January 2023	272,721	181,489	51,612	4,065	-4,065	54,854	13	12,497	37,506	-202	14	1,155	18	611,677
Net profit or loss for the period	0	0	0	0	0	0	0	0	47,065	0	0	0	0	47,065
Other comprehensive income for the period	0	0	0	0	0	0	0	0	0	67	-14	-53	0	0
Total comprehensive income for the period	0	0	0	0	0	0	0	0	47,065	67	-14	-53	0	47,065
Transfer of profit or loss from the previous year to retained earnings	0	0	0	0	0	0	0	37,506	-37,506	0	0	0	0	0
Other movements in equity	0	0	0	0	0	0	0	-324	0	-37	0	327	34	0
Changes in equity	0	0	0	0	0	0	0	37,182	-37,506	-37	0	327	34	0
Other	0	0	0	0	0	0	0	-104	0	0	0	0	0	-104
Balance as at 31 December 2023	272,721	181,489	51,612	4,065	-4,065	54,854	13	49,575	47,065	-172	0	1,429	52	658,638

Consolidated statement of equity of the Telekom Slovenije Group for year 2022

					Profit reserves				Retained earnings
in EUR thousand	Share capital	Share premium	Legal reserves	Treasury share reserves	Treasury shares	Statutory reserves	Other profit reserves	Retained earnings from previous years	Profit or loss for the period	Fair value reserve for financial instruments	Fair value reserve for hedging instruments in net amount	Reserves for actuarial deficits and surpluses	Translation reserves	Total
Balance as at 1 January 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	0	37,506	0	0	0	0	37,506
Other comprehensive income for the period – adjusted*	0	0	0	0	0	0	0	0	0	-336	54	3,661	8	3,387
Total comprehensive income for the period	0	0	0	0	0	0	0	0	37,506	-336	54	3,661	8	40,893
Dividends paid	0	0	0	0	0	0	0	-29,244	0	0	0	0	0	-29,244
Purchase of treasury shares	0	0	0	0	-394	0	0	0	0	0	0	0	0	-394
Forming of treasury share reserves	0	0	0	394	0	0	0	-394	0	0	0	0	0	0
Transactions with owners	0	0	0	394	-394	0	0	-29,638	0	0	0	0	0	-29,638
Transfer of profit or loss from the previous year to retained earnings	0	0	0	0	0	0	0	37,888	-37,888	0	0	0	0	0
Other movements in equity	0	0	0	0	0	0	0	207	0	160	0	-367	0	0
Changes in equity	0	0	0	0	0	0	0	38,095	-37,888	160	0	-367	0	0
Other	0	0	0	0	0	0	0	-10	0	0	0	0	1	-9
31 December 2022	272,721	181,489	51,612	4,065	-4,065	54,854	13	12,497	37,506	-202	14	1,155	18	611,677

Separate statement of changes in equity of Telekom Slovenije for year 2023

					Profit reserves				Retained earnings
in EUR thousand	Share capital	Share premium	Legal reserves	Treasury share reserves	Treasury shares	Statutory reserves	Other profit reserves	Retained earnings from previous years	Profit or loss for the period	Fair value reserve for financial instruments	Fair value reserve for hedging instruments in net amount	Reserves for actuarial deficits and surpluses	Total
Balance as at 1 January 2023	272,721	180,956	50,434	4,065	-4,065	54,544	0	26,076	20,793	-203	15	897	606,233
Net profit or loss for the period	0	0	0	0	0	0	0	0	23,864	0	0	0	23,864
Other comprehensive income for the period	0	0	0	0	0	0	0	0	0	68	-16	39	91
Total comprehensive income for the period	0	0	0	0	0	0	0	0	23,864	68	-16	39	23,955
Transfer of profit or loss from the previous year to retained earnings	0	0	0	0	0	0	0	20,793	-20,793	0	0	0	0
Other movements in equity	0	0	0	0	0	0	0	-242	0	-37	0	278	-1
Changes in equity	0	0	0	0	0	0	0	20,551	-20,793	-37	0	278	-1
Other	0	0	0	0	0	0	0	1	0	1	0	0	2
Balance as at 31 December 2023	272,721	180,956	50,434	4,065	-4,065	54,544	0	46,628	23,864	-171	-1	1,214	630,189

Separate statement of changes in equity of Telekom Slovenije for year 2022

					Profit reserves				Retained earnings		Fair value
in EUR thousand	Share capital	Share premium	Legal reserves	Treasury share reserves	Treasury shares	Statutory reserves	Other profit reserves	Retained earnings from previous years	Profit or loss for the period	Fair value reserve for financial instruments	reserve for hedging instruments in net amount	Reserves for actuarial deficits and surpluses	Total
Balance as at 1 January 2022	272,721	180,956	50,434	3,671	-3,671	54,544	0	21,144	34,371	-27	-39	-1,863	612,241
Net profit or loss for the period	0	0	0	0	0	0	0	0	20,793	0	0	0	20,793
Other comprehensive income for the period	0	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	0	20,793	-335	55	3,119	23,632
Dividends paid	0	0	0	0	0	0	0	-29,244	0	0	0	0	-29,244
Purchase of treasury shares	0	0	0	0	-394	0	0	0	0	0	0	0	-394
Forming of treasury share reserves	0	0	0	394	0	0	0	-394	0	0	0	0	0
Transactions with owners	0	0	0	394	-394	0	0	-29,638	0	0	0	0	-29,638
Transfer of profit or loss from the previous year to retained earnings	0	0	0	0	0	0	0	34,371	-34,371	0	0	0	0
Other movements in equity	0	0	0	0	0	0	0	199	0	160	0	-359	0
Changes in equity	0	0	0	0	0	0	0	34,570	-34,371	160	0	-359	0
Other	0	0	0	0	0	0	0	0	0	-1	-1	0	-2
31 December 2022	272,721	180,956	50,434	4,065	-4,065	54,544	0	26,076	20,793	-203	15	897	606,233

Consolidated and separate cash flow statement

	Slovenije Group	Telekom	Slovenije	Telekom
in EUR thousand	I – XII	I – XII	I – XII	I – XII
	2023	2022	2023	2022
Cash flows from operating activities Net profit for the financial year	47,065	37,506	23,864	20,793
Adjustments for:
Depreciation/Amortisation	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
Impairment and write-offs of inventories	902	1,381	852	1,266
Net impairment of receivables and contract assets	5,359	3,161	4,394	2,577
Adjustment for provisions	2,597	2,953	2,068	2,414
Finance income	-1,986	-3,343	-4,101	-4,724
Finance expenses	17,262	8,021	19,188	8,154
Income tax expense	427	7,919	-1,018	5,054
Cash flows from operating activities prior to changes in working capital and provisions	242,583	224,251	182,194	174,055
Change in inventories	1,833	-2,121	1,957	-1,331
Change in trade and other receivables	-17,518	-7,176	-13,539	-6,712
Change in accrued and deferred asset items and contract assets	-1,037	-3,232	149	-2,446
Change in provisions	1,109	-417	1,789	-464
Change in trade and other payables	15,021	-17,714	22,009	-25,511
Change in accrued and deferred liability items and contract liabilities	6,014	12,575	1,640	3,474
Income tax paid	-2,300	-7,743	-1,245	-6,694
Net cash from operating activities	245,705	198,423	194,954	134,371
Cash flows from investing activities
Proceeds from investing activities	3,674	2,403	32,753	19,705
Proceeds from sale of property, plant and equipment	3,171	1,704	4,662	2,200
Dividends received	166	240	271	1,185
Proceeds from interest	255	4	3,452	1,540
Proceeds from the sale of investments	37	400	37	400
Proceeds from repayment of loans and deposits	45	55	24,331	14,380
Disbursements from investing activities	- 171,140	- 153,198	- 143,518	- 111,154
Disbursements for property, plant and equipment	-95,588	-96,548	-70,157	-69,923
Disbursements for intangible assets	-75,352	-56,550	-69,131	-34,441
Investments in subsidiaries and associated companies	0	0	0	-1,000
Disbursements for loans and deposits issued	-200	-100	-4,230	-5,790
Net cash from investing activities	- 167,466	- 150,795	- 110,765	-91,449
Cash flows from financing activities
Proceeds from financing activities	100,000	60,000	100,000	60,000
Proceeds from non-current borrowings	100,000	60,000	100,000	60,000
Disbursements from financing activities	-	-86,231	-	-87,153
	160,195		159,439
Disbursements for purchase of treasury shares	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	-29,244	0	-29,244
Net cash from 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 and cash equivalents	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 and cash equivalents	55,479	37,382	44,376	19,573