Annual Report (ESEF) • Apr 28, 2021
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Download Source File| 1991 | 1995 | 1996 | 2000 | 2003 | 2004 | 2005 | 2006 | 2007 | 2010 | 2011 | 2012 | 2014 | 2016 | 2018 | 2019 | 2020 | 2021 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| GSM | First GSM network in Slovenia | NMT | Beginning of mobile telephony | Internet | Commercial launch in Slovenia | IP telephony | Fibre optic local loop unbundled | P2P + CATV | Amongst the first operators to enter the cable TV market | IP TV | Managed VPN | Wireless Network in Ljubljana | One of the first in Europe | IPTV via LTE | Advanced Calling (VoLTE / VoWiFi) | Satellite BB | eHealth | Integrated operator |
| FTTH + VDSL | We start with fibre-optic network construction and introduce VDSL 2 | eCare | Smart city | Turbo WiFi | Integration IKT | eSIM | 4G+ | eCall | First operator in Europe | LTE/4G | We have the fastest and the most capable mobile network | Development of hybrid public-private 4G/5G networks to support smart industry | UMTS | We start developing 3G mobile network |
We deploy ISDN technology
There is no doubt that all of us will remember 2020. Each of us will have their own story of how they survived a year full unpredictability and challenges. But all of those stories will have something in common. Technology. Technology was the one thing that kept us close all year, despite the physical distance between us. We gathered, learned, worked and raised each other’s spirits remotely.
The year 2020 showed us just how important technology is, and how important reliability, security, speed and sacrifice are in that regard. We can no longer imagine life without high-capacity communication services every step of the way. Technology is managed by people like us who ensure we are continuously connected. In the first network in Slovenia.
The COVID-19 pandemic, which characterised 2020, was an opportunity for the Telekom Slovenije Group and its employees to show that even large companies can be quick, agile, effective, creative and focused on supporting the society in which we operate. We adapted our work to ensure undisrupted, reliable and secure communication services for remote work and distance learning, even in extraordinary circumstances, and provided companies additional capacities. Despite the circumstances, we implemented our outlined business plan, developed technologies and presented new services and solutions.
We responded rapidly, effectively and prudently to the changing circumstances.
@TelekomSlo
1 GRI GS 102-1, GS 102-3, GRI 102-5
2 GRI GS 102-53
Company: Telekom Slovenije, d.d.
Registered office: Ljubljana
Address: Cigaletova ulica 15, 1000 Ljubljana
Registration number: 5014018000
VAT ID number: SI98511734
Entry in the companies register: 1/24624/00, Ljubljana District Court
Number of shares: 6,535,478
Ticker symbol of no-par-value shares: TLSG
Telephone: + 386 1 234 10 00
Website: http://www.telekom.si
Email: [email protected]
LinkedIn: telekom-slovenije
Facebook: TelekomSlovenije
Instagram: Telekom_Slovenije
Twitter: @TelekomSlo
YouTube: TelekomSlovenije
The shares of Telekom Slovenije are listed on the prime securities market of the Ljubljana Stock Exchange. See section 1.11 Share trading and ownership structure for more information.
Telekom Slovenije Group companies See section 1.6 Markets and companies of the Telekom Slovenije Group and section 4.1 Telekom Slovenije Group companies for more information.
Contacts for investors, shareholders and other interested users: [email protected], [email protected] and [email protected]
Contact for information regarding the annual report and sustainable development report:
Telekom Slovenije, d.d., Cigaletova ulica 15, 1000 Ljubljana
Public Relations Department: [email protected]
Telekom Slovenije, d. d. (hereinafter: Telekom Slovenije) connects users and simplifies their lives, and ensures security through a range of the most advanced ICT services and solutions. As the leading Slovenian provider of communication solutions, Telekom Slovenije continuously strives for the development and introduction of new innovative technologies, facilitates the connectivity of users in the best network in Slovenia and provides them the most advanced services and an excellent user experience. Telekom Slovenije manages the largest and fastest network that, according to users, is also the best and most reliable.
In addition to the national operator in Slovenia, the Telekom Slovenije Group is also present through its subsidiaries in Kosovo, Croatia, Bosnia and Herzegovina, Serbia, Montenegro and North Macedonia. The Telekom Slovenije Group manages one of the most complex backbone networks in all of South-East Europe.
The activities of the Telekom Slovenije Group comprise:
GVO is a corporate brand. The company provides comprehensive and environmentally friendly solutions in the areas of project design, surveying and the construction, management and maintenance of telecommunications networks.
Piranske soline is a corporate brand. The Company manages the following brands:
TSmedia is a corporate brand. The Company manages the following brands:
IPKO is a corporate brand in Kosovo. The company provides telecommunication services. Its portfolio includes mobile and fixed telephony, internet and cable TV services.
Hej! – covers the segment of young users.
Planet TV is a corporate brand.* The Company manages the following brands:
Planet PLUS – a classic film channel.
The company is no longer part of the Telekom Slovenije Group since 1 October 2020.
TSinpo is the corporate brand of a disabled workers’ company. The company primarily operates in the areas of support services and the manufacture of cardboard sleeves.
Avtenta is a corporate brand. The company covers medium-sized and large corporations and public institutions in Slovenia and the wider region. It combines advanced and verified business solutions for the optimisation and improvement of the efficiency of companies, organisations and public administration.
Telekom Slovenije is a corporate brand. It is used for communication with all stakeholder groups (users, investors, business partners, suppliers, employees and the media). The Company manages the following brands:
The estimated negative effect of the COVID-19 pandemic and the associated mitigating measures on planned EBITDA is EUR 9.2 million. Taking into account that adjustment, EBITDA would have exceeded the planned value by 3%.
Demand for ICT solutions and services, and cyber security services has risen on the B2B market. The services and solutions that we have provided companies and organisations include the following:
We took advantage of the sudden closure of all physical points of sale by increasing digital sales and searching for opportunities for contactless operations with users:
Due to the extraordinary circumstances during the pandemic, numerous activities focused on expanding necessary capacities, support for remote work, the adaptation of the portfolio due to COVID-19, the adaptation of call centres and Telekom centres, analytics and the proactive notification of stakeholders.
For more information 2.7 Marketing and sales.
GRI GS 201-1
Our primary concern was the health and safety of employees, and proactive, clear and open communication. We quickly and efficiently transformed work throughout all of Telekom Slovenije, such that an average of more than 70% of employees perform their work remotely, provided that the nature of their work allows it. We have in place three separate remote access systems via different network infrastructures to ensure the smooth flow of the work process.
For the purpose of remote communication, we use various tools through which we exchanged a monthly average of 1.2 messages, 18,000 hours of video and 32,000 hours of voice calls.
We communicated daily with employees regarding measures and key activities taking place at the Company level.
We adopted numerous measures to prevent the spread of infections.
We introduced the highest level of protective measures for employees who work in contact with users and third parties, and ensured they have the necessary protective equipment.
See section 2.9.6 Employees for more information.
In Slovenia, we witnessed the massive and rapid transformation to remote work and distance learning. For this reason, we faced a sharp rise in the volume of voice traffic, and data and video services, i.e. by more than one half relative to normal conditions. In order to meet all of the needs of users and ensure a superior user experience, we:
Of above-average importance to users are the coverage, stability and reliability of the network (even more so during the pandemic), while customer satisfaction with those attributes is also above-average (source: Valicon; satisfaction with fixed and mobile services; October 2020).
For more information, see 2.7 Marketing and sales and 2.9.5 Users.
Even in the extraordinary circumstances, we have remained compassionate and responsible to the environment in which we operate.
| in EUR thousand and % | 2020 / 31.12. 2020* | 2019 / 31.12.2019* | Index 20/19 |
|---|---|---|---|
| Sales revenue | 647,177 | 664,892 | 97 |
| Other operating income | 7,694 | 5,938 | 130 |
| Total operating revenues | 654,871 | 670,830 | 98 |
| EBITDA | 209,882 | 214,994 | 98 |
| EBITDA margin = EBITDA / sales revenue | 32.4% | 32.3% | 100 |
| EBIT | 42,603 | 41,203 | 103 |
| Return on sales = EBIT / sales revenue | 6.6% | 6.2% | 106 |
| Net profit from continuing operations | 34,084 | 28,544 | 119 |
| Loss from discontinued operations | -9,219 | -27,603 | 33 |
| Net profit for the financial year | 24,865 | 941 | - |
| Assets | 1,227,839 | 1,250,211 | 98 |
| Equity | 590,484 | 590,588 | 100 |
| Return on equity (ROE) | 4.2% | 0.2% | - |
| Equity ratio | 48.1% | 47.2% | 102 |
| Net financial debt | 378,377 | 402,861 | 94 |
| NFD / EBITDA | 1.8 | 1.9 | 96 |
| Investment in property, plant and equipment (CAPEX) | 173,045 | 184,835 | 94 |
| EBITDA – CAPEX | 36,837 | 30,159 | 122 |
| Ratio of (EBITDA – CAPEX) to EBITDA (cash margin) | 17.6% | 14.0% | 125 |
| Number of employees as at the last day of the period | 3,392 | 3,387 | 100 |
| Investments as a proportion of operating revenues | 26.4% | 27.6% | 96 |
** The year 2019 is adjusted for a prior-period correction in the financial statements of IPKO and thus of the Telekom Slovenije Group. For more information, see point 41 of the Accounting Report.
Definitions find in point 2.9.3 Alternative performance measures.
| EUR thousand | 2020* | 2019*/** | Index 20/19 |
|---|---|---|---|
| Distributed economic value | 473,741 | 483,675 | 98 |
| Value added | 155,881 | 153,556 | 101 |
| Value added per employee (in EUR) | 45,989 | 44,400 | 103 |
| Gross value added per employee (in EUR) | 94,699 | 93,864 | 101 |
| Labour costs | 111,101 | 109,633 | 101 |
| Corporate income tax, including deferred taxes | -523 | -1,721 | 30 |
| Payments to owners – dividends | 22,769 | 29,275 | 78 |
| 2020* | 2019*/** | Index 20/19 | |
|---|---|---|---|
| Number of employees | 3,392 | 3,387 | 100 |
| Employee turnover | 5.8% | 5.4% | 107 |
| Number of training hours per employee | 18.6 | 26.6 | 70 |
| Direct training costs in EUR thousand | 916 | 1,432 | 64 |
| Proportion of employees with a master’s degree and doctorate | 4.7% | 4.9% | 96 |
| Number of personal data protection training hours | 261 | 101 | 258 |
| Connections / users | 2020* | 2019* | Index 20/19 |
|---|---|---|---|
| Mobile telephony* | 1,873,876 | 1,939,624 | 97 |
| Fixed voice telephony | 521,068 | 521,011 | 100 |
| Broadband connections | 464,258 | 470,695 | 99 |
| Complaint rate in all issued bills | 0.57% | 0.50% | 114 |
| Costs earmarked for sponsorships and donations as a proportion of operating revenues | 0.3% | 0.4% | 82 |
Telekom Slovenije Group
| 2020 | 2019 |
|---|---|
| Index | 20/19 |
|---|---|
| Electricity consumption (in million kWh) | 89.8 90.2 99 |
| Total direct energy costs in EUR million | 11.5 11.6 98 |
| Telekom Slovenije | 2020 2019 |
| Index | 20/19 |
| Electricity consumption (in million kWh) | 73.5 73.8 100 |
| Direct energy costs in EUR thousand | 9,117.5 9,230.7 99 |
| Total waste in tonnes | 8,900 8,343 107 |
| - Waste electrical and electronic equipment collected at Telekom centres in tonnes | 2.0 1.9 104 |
| Use of office paper in EUR | 14,759 19,533 76 |
| Use of fuel for company cars in litres | 788,544 883,344 89 |
| Year | Net sales revenues | Number of employees |
|---|---|---|
| 2016 | 3,665 | 647 |
| 2017 | 3,530 | 665 |
| 2018 | 3,673 | 715 |
| 2019* | 3,387 | 716 |
| 2020* | 3,392 | 702 |
| Year | EBITDA in EUR million | EBITDA margin in % |
|---|---|---|
| 2016 | 199 | 28.4% |
| 2017 | 169 | 25.9% |
| 2018 | 186 | 23.6% |
| 2019* | 215 | 32.3% |
| 2020* | 210 | 32.4% |
| Year | EBIT in EUR million | Net profit in EUR million |
|---|---|---|
| 2016 | ||
| 2017 | ||
| 2018 | ||
| 2019* | ||
| 2020* |
| Equity, EUR million | Liabilities, EUR million | Net financial debt EUR million |
|---|---|---|
| 706 | 681 | 620 |
| 591 | 590 | 662 |
| 247 | 613 | 302 |
| 671 | 282 | 660 |
| 403 | 637 | 378 |
| 2016 | 2017 | 2018 | 2019* | 2020* |
|---|---|---|---|---|
| 36.1 | 33.3 | 4.6 | 0.9 | 39.9 |
| 41.2 | 9.0 | 42.6 | 17.9 | 24.9 |
| 14 |
| 2016 | 2017 | 2018 | 2019* | 2020* |
|---|---|---|---|---|
| 200 | 180 | 160 | 140 | 120 |
| 100 | 80 | 60 | 40 | 20 |
| 0 | 30 | 25 | 20 | 15 |
| 10 | 5 | 0 |
Dear Shareholders, Investors, Business Partners and Co-Workers,
The COVID-19 pandemic affected the lives of everyone of us in 2020, placing the basic value of health care at the forefront. It also accelerated the digitalisation of the economy and further highlighted the importance of reliable, state-of-the-art, fast and secure communications and communication solutions. In Slovenia, the pandemic triggered the massive and rapid transformation to work from home and distance learning, which resulted in a shift in traffic flows and the load on our network. We faced a sharp increase in the aforementioned load and in the volume of voice, data and video traffic, by more than one half relative to the normal situation, while we also recorded a sharp increase in traffic in accessing global internet networks and IPTV.
Telekom Slovenije has in place a business continuity management system that is certified according to the ISO 22031 standard. We are thus prepared for and capable of ensuring key services and processes, even in emergencies. In the circumstances in which we found ourselves together, we systematically prepared ourselves in a timely manner in terms of technology, the provision of network security and services, employees and processes. As part of the critical infrastructure, we adapted the work of our experts to ensure reliable communication services 24 hours a day, even in the most difficult conditions, provided users technical support and covered the special needs of government institutions and companies for increased capacities or additional services, including cyber security, which is crucial in such extraordinary circumstances.
will continue to provide the most state-of-the-art services tailored to the needs of users (a superior user experience, the best sales and after-sales care for users, the most advanced and reliable network, convergent packages, an offer outside of the core activity, a comprehensive range of IT solutions, and information and cyber security services). Ensuring the dynamic adaptation to the needs of users will require both accelerated digitalisation and investments in the expansion and upgrading of technologies, the further optimisation of processes and the empowerment of employees.
In a year when communication technologies played an extremely important role, Telekom Slovenije, in line with technological development, was the first in Slovenia to take the next step in the development of mobile technology, and established a national fifth generation (5G) mobile network on existing base stations and in the existing 2,600 MHz frequency spectrum, which is also used for the fourth mobile generation network. In the upgraded evolutionary network, users may achieve higher data transfer speeds than in the LTE/4G network already during this development phase, while the full potential of 5G technology will be available following the allocation of additional spectral bands. We already covered 32.44% of the population with the 5G signal at the end of 2020. This was the result of well-planned, gradual and, above all, timely investments in the development of new technologies.
At the same time, we are expanding and upgrading the fibre optic access network at an accelerated pace, which facilitates the development of new services and brings users an even better television, internet and telephony experience. We manage the largest fibre optic network in Slovenia, to which we facilitate the connection of more than 370,000 Slovenian households. We connected 43,994 Slovenian households to the fibre optic network in 2020. We earmarked a total of EUR 173 million for investments in the infrastructure and the development of services.
We continued with consolidation activities in 2020. We completed the sale of Planet TV, and began the process of selling TSmedia and merging Avtenta with Telekom Slovenije, while we halted the sale of IPKO, which was initiated in 2019.
to 2019, but sales via online channels cannot compensate for the drop in revenues at closed points of sale.
The Telekom Slovenije Group generated an operating profit (EBIT) of EUR 42.6 million and earnings before interest, taxes, depreciation and amortisation (EBITDA) of EUR 209.9 million in 2020. Without the estimated effect of the COVID-19 pandemic and measures to mitigate it, EBITDA would have been EUR 219.1 million at the Group level. EBITDA was 4% lower than planned as the result of the pandemic. The EBITDA margin (i.e. EBITDA as a proportion of sales revenue) was 32.4% at the Group level. Following the calculation of income tax (including deferred taxes), the Telekom Slovenije Group generated a net profit of EUR 24.9 million (net profit would have been EUR 32.8 million without the estimated effect of the pandemic).
Despite the challenges we faced due to the COVID-19 pandemic in 2020, the Telekom Slovenije Group remains financially stable. We are adapting business activities to the changing circumstances and closely monitoring and assessing risks in connection with supply chains, credit risk, the functioning of systems and the profitability of individual services, while adopting the appropriate measures.
Our shares of the fixed and mobile services markets were down slightly relative to 2019, primarily as a reflection of the aggressive pricing policies of the competition. However, through high-quality and innovative services, we increased customer satisfaction, and in Slovenia maintained our leading market position in the mobile telephony segment (37.9%) and IPTV segment (44.4%). In Kosovo, IPKO maintained a 38% share of the mobile telephony market in terms of the number of users.
Dividends for 2019 were paid to shareholders in the gross amount of EUR 3.50 per share.
At the Telekom Slovenije Group level, we are planning to generate operating revenues of EUR 653.0 million, EBITDA of EUR 210.6 million and a net profit of EUR 30.8 million in 2021, while investing EUR 203.7 million.
Following the declaration of the pandemic, we also took a responsible approach to the society in which we operate. We provided users free mobile data transfer quantities and increased their internet speeds in the fibre optic network, and thus ensured the conditions for trouble-free communication, and distance learning and work from home. We also upgraded the TV programme offer with additional content. We donated mobile modems to young people from socially disadvantaged families and provided free data transfer quantities for distance learning. We donated funds to hospitals for the purchase of urgent medical equipment and provided assistance to humanitarian organisations that help elderly people who live alone. We provided retirement homes free voice and video communication between the elderly residents of those homes and family members. For purpose of the remote monitoring of COVID-19 patients, we upgraded the telemedicine solution and developed a solution for the centralised, real-time monitoring of the vital functions of patients seriously affected by the coronavirus. Besides additional capacities, we also made it possible for companies to quickly implement video identification and digital signing services.
We converted closed points of sale into pick-up points, and were at the beck and call of users via all available channels. We expanded the range of products in the Online Shop, established the new PIAZZ online marketplace, which brings together merchants and customers in one place, and introduced new functionalities in the VALÚ smart wallet.
of new business models and the testing of the 5G smart infrastructure with the establishment of a test 5G network at a production facility. We implemented IT solutions that facilitate the advanced automation of operations and the digitalisation of energy management systems in commercial and production buildings, as well as smart city and community solutions for the integrated management of resources, the infrastructure, services and processes for the improved quality of life. Those solutions are based on NB-IoT technology.
We successfully maintained all previously implemented management systems. At the end of the year, we began preparations for the self-assessment of business excellence according to the EFQM 2020 model, while we introduced certified quality management and information security management systems at IPKO.
Through numerous preventive measures and digital tools, we provided employees a safe work environment. Both times that an epidemic was declared, we made it possible for an average of 70% of Telekom Slovenije’s employees to work from their homes across all of Slovenia, whenever the nature of their work allowed it. To that end, daily communication ensured that employees had at their disposal all necessary information regarding events at the Company and that they remained connected.
We implemented the strictest possible protective measures for field work, where employees ensure the smooth functioning of services for users, which sometimes requires entering their homes. In these extraordinary circumstances, the commitment, motivation and engagement of employees were and remain extremely high, as does mutual cooperation.
As part of activities in the scope of the Family-Friendly Company certificate, we focused on raising awareness about the importance of managing stress and preventing burn-out, and strengthened the transfer of knowledge and lifelong learning programmes.
We enhanced our environmental responsibility by adopting the revised environmental statement of Telekom Slovenije. The latter guides us to the constant improvement of environmental and energy efficiency in business processes, and to encourage users to pursue responsible environmental management. Through the optimisation of equipment and premises, we reduce electricity consumption every year (by 0.4% in 2020), despite the upgrading of the mobile network with 5G technology and the increased load on the network.
We are setting up a charging infrastructure for the transition to electric mobility, and are gradually introducing electric cars and freight vehicles in the vehicle fleet.
Due to the enhancement of the fourth and fifth generation mobile networks, we carried out 267 measurements of electromagnetic radiation (EMR) in Slovenia, 92 of those measurements for 5G technology. The measurements indicated that EMR has risen slightly. Nevertheless, all base stations continue to function in accordance with regulations, and within thresholds and the law.
We responded rapidly, agilely and effectively to the changing circumstances in 2020, while giving special attention to the society in which we operate. We provided users reliable and secure communication services, even in the most difficult circumstances and in the context of sharply increased loads. We could not have done so without our employees, to whom I offer my sincere thanks. I would also like to thank the Management Board, which managed Telekom Slovenije in 2020, for its work during the year. I believe that we have earned the trust of our stakeholders.
Cvetko Sršen,
President of the Management Board
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.
Cvetko Sršen,
President of the Management Board
Tomaž Jontes,
Vice-President of the Management Board
Barbara Galičič Drakslar,
Member of the Management Board
dr. Mitja Štular,
Member of the Management Board
Špela Fortin,
Member of the Management Board – Workers Director
The Company’s Supervisory Board comprises nine members, and the composition of that body changed several times during 2020.
The term of office of member of the Supervisory Board Dimitrij Marjanović expired on 13 May 2020. At the Company’s 31st General Meeting of Shareholders held on 5 June 2020, Aleš Šabeder was elected to a four-year term of office on the Supervisory Board.
Following its constitution on 15 June 2020, the Supervisory Board elected Aleš Šabeder to serve as President of the Supervisory Board, and Barbara Gorjup and Drago Kijevčanin to serve as Vice-Presidents. It also reconstituted the Supervisory Board’s committees. Barbara Kürner Čad served as President of the Supervisory Board until 15 June 2020.
On 19 October 2020, Aleš Šabeder, Barbara Cerovšek Zupančič and Bernarda Babič, MSc submitted their resignations. On 3 November 2020, the Ljubljana District Court, at the request of the Slovenian Sovereign Holding, issued a decision appointing Boštjan Koler, Dimitrij Marjanović and Štefan Belingar as new Supervisory Board members until Supervisory Board members are elected at the General Meeting, but for a period no longer than one year of issuing the decision. On that date the functions of Supervisory Board members Aleš Šabeder, Barbara Cerovšek Zupančič, MSc and Bernarda Babič, MSc ceased.
Supervisory Board elected Boštjan Koler to serve as President of the Supervisory Board, and Barbara Kürner Čad and Drago Kijevčanin to serve as Vice-Presidents. It also reconstituted the Supervisory Board’s committees.
On 21 January 2021, the General Meeting of Shareholders recalled member of the Supervisory Board Igor Rozman. On 22 January 2021, Iztok Černoša, Aleksander Igličar, MSc Marko Kerin and Radovan Cerjak were appointed to four-year terms of office as new members of the Supervisory Board. With the election of the new members of the Supervisory Board, the terms of office of the persons who were appointed under the decision of Ljubljana District Court of 3 November 2020 were terminated: Boštjan Koler, Dimitrij Marjanović and Štefan Belingar.
On 11 February 2021, the newly constituted Supervisory Board elected Iztok Černoša to serve as President of the Supervisory Board, and Barbara Kürner Čad and Drago Kijevčanin to serve as Vice-Presidents. It also reconstituted the Supervisory Board’s committees.
The composition of the Supervisory Board is diverse, as its members complement each other in terms of their expertise, competences, experience, age, gender, work method and other aspects. This facilitates the effective exchange of opinions and views at sessions.
The Supervisory Board met at 17 regular and two correspondence sessions in 2020. During the course of 2020, it ensured the responsible and high-quality supervision of the operations of Telekom Slovenije and the Telekom Slovenije Group. The Supervisory Board 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 the findings, proposals and careful assessment of committees, the Supervisory Board adopted the appropriate decisions and continuously informed stakeholders following sessions.
In accordance with the Slovenian Corporate Governance Code, the Supervisory Board hereby declares that all costs in connection with its work are disclosed in this annual report.
The most important topics at sessions of the Supervisory Board in 2020 were linked to the monitoring of the ordinary operations and development of the Company, and the composition of the Management Board. The Supervisory Board and Management Board focused on defining the strategy, and on identifying and managing business risks, which is important for the successful future operations of Telekom Slovenije and the Telekom Slovenije Group.
On 2 January 2020, the Supervisory Board appointed Dr Vida Žurga to serve as Vice-President of the Management Board. The term of office of Ranko Jelača, member of the Management Board responsible for the commercial sector, expired on 15 March 2020. On 22 June 2020, the Supervisory Board appointed Tomaž Jontes to serve as member of the Management Board responsible for sales and marketing. Mr Jontes’ four-year term of office began on the same date.
Within the scope of its competences, the Supervisory Board made the following responsible decisions in 2020:
with the business plan for 2021;
In its supervision of the management of the Company’s operations, the Supervisory Board was briefed regularly on the following in 2020:
The Supervisory Board continuously resolved conflicts of interest (statements according to the reference code are published on the Company’s website). During the 2020 financial year, one member of the Supervisory Board informed the latter of specific facts that could affect their independence. In February 2020, the Supervisory Board assessed its work and adopted a resolution regarding improvements to that work in the future. On that basis, the text of the rules of procedure of the Supervisory Board was updated at the beginning of 2021, and is expected to be approved at one of the Supervisory Board’s next sessions.
The Supervisory Board had four permanent committees in 2020. They were the Audit Committee, HR Committee, Strategy Committee and Marketing and Technology Committee, which was renamed from the Technical Committee in January. A Nomination Committee was appointed for the selection of candidates for members of the Supervisory Board, in February and December. Committees discussed topics related to the Supervisory Board’s work and advised the latter in important matters. This contributed to the improved work and effectiveness of the Supervisory Board.
The Supervisory Board continuously monitored the work of its committees and the implementation of their resolutions. The work of committees is described in detail in the section Management and supervisory bodies in the business report section of the annual report.
On 10 March 2021, the Supervisory Board reached an agreement with the President and three members of the Management Board on the termination of their employment contracts and their recall from the aforementioned positions. Accordingly, the terms of office of the President of the Management Board Tomaž Seljak and members Dr Vida Žurga, Matjaž Beričič, MSc and Tomaž Jontes ended on 10 March 2021. The Supervisory Board appointed Cvetko Sršen to serve as President, and Dr Mitja Štular and Tomaž Jontes to serve as members of the Management Board. Their four-year terms of office began on 10 March 2021. On 22 March, the Supervisory Board appointed Barbara Galičič Drakslar to serve as member of the Management Board for a four-year term of office that begins on 31. March 2021.
The work of members of the Supervisory Board, including their work on committees, was professional and focused on the effective performance of their functions. Members of the Supervisory Board regularly attended sessions, were well-prepared for topics of discussion and put forth constructive proposals.
The Supervisory Board adopted competent decisions in accordance with its rules of procedure, the Company’s internal acts and legally prescribed powers on the basis of professionally prepared written and oral information provided by the Management Board. The work of the Supervisory Board was complemented, in terms of content, by the proposals made by its committees.
Based on the above-described continuous monitoring and supervision of the operations and management of Telekom Slovenije and Group companies during the 2020 financial year, and based on the annual report of the Telekom Slovenije Group and Telekom Slovenije for 2020, as compiled and submitted by the Management Board, the Supervisory Board assesses that the annual report and disclosures contained therein reflect the actual situation and position of the Telekom Slovenije Group.
The Supervisory Board assesses that the Management Board of Telekom Slovenije successfully managed the Company’s transactions during the 2020 financial year and achieved established objectives, particularly taking into account the extraordinary circumstances the declared COVID-19 pandemic brought to the telecommunications sector and the highly competitive environment in which the Company operates.
The Supervisory Board discussed the annual report of the Telekom Slovenije Group and Telekom Slovenije for 2020 at its session on 23 April 2021. Based on its review of the annual report and financial statements (including the notes thereto), and its review of the Management Board’s proposal on the use of distributable profit and the certified auditor’s report, the Supervisory Board confirmed the audited annual report of the Telekom Slovenije Group and Telekom Slovenije, d. d. for 2020.
Pursuant to paragraph 3 of Article 272 of the Companies Act (ZGD-1), Telekom Slovenije’s Management Board submitted the annual report of the Telekom Slovenije Group and Telekom Slovenije for 2020, together with the auditor’s report for 2020, immediately after compilation and the issuance of the auditor’s opinion. The annual report was discussed by the Supervisory Board at its session held on 23 April 2021. The annual report of the Telekom Slovenije Group and Telekom Slovenije for 2020 was audited by the audit firm PricewaterhouseCoopers, d. o. o., which issued an unmodified opinion regarding the financial statements of the Telekom Slovenije Group and Telekom Slovenije.
At its 2nd extraordinary session held on 23 April 2021, the Supervisory Board discussed the audited annual report of the Telekom Slovenije Group and Telekom Slovenije for 2020 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, as adopted by the European Union, and other relevant legislation. The Audit Committee had no comments with respect to the 2020 annual report, and therefore proposed that the Supervisory Board adopt a decision in accordance with Article 282 of the ZGD-1 to approve of the annual report of the Telekom Slovenije Group and Telekom Slovenije for 2020.
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 2020 that would in any way inhibit its decision to approve the annual report. Thus, in accordance with paragraph 3 of Article 282 of the ZGD-1, the Supervisory Board of Telekom Slovenije hereby approves the annual report of the Telekom Slovenije Group and Telekom Slovenije for 2020. The Supervisory Board approved the annual report for 2020 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 and statement of compliance with the reference code, which are included in the business report section of the annual report of the Telekom Slovenije Group and Telekom Slovenije for 2020, and assessed that they are a reflection of the actual governance of the Company in 2020.
Iztok Černoša,
President of the Supervisory Board
Slovenia
Croatia
Bosnia and Hercegovina
Serbia
Montenegro
Kosovo
North Macedonia
| SIOL d.o.o. Zagreb | 100% |
|---|---|
| SIOL d.o.o. Beograd | 100% |
| SIOL DOOEL Skopje | 100% |
| AVTENTA, d.o.o. | 100% |
| TSinpo, d.o.o. | 100% |
| INFRATEL d.o.o. | 100% |
| TSmedia, d.o.o. | 100% |
| Germany | |
| Subsidiary Company, owned by subsidiary | |
| SOLINE, d.o.o. | 100% |
| OPTIC-TEL d.o.o. | 100% |
| GVO, d.o.o. | 100% |
| GVO Telekommunikation GmbH, Nemčija | 100% |
| SIOL d.o.o. Podgorica | 100% |
| SIOL d.o.o. Sarajevo | 100% |
| IPKO Telecommunications LLC | 100% |
| SIOL Prishtina LCC | 100% |
∫The sale of Telekom Slovenije’s 100% participating interest in the subsidiary Planet TV, televizijska dejavnost, d. o. o. was completed on 30 September 2020. The transfer of that participating interest to TV2 ADRIA, d. o. o. was entered in the companies register on 7 October 2020.
∫On 3 November 2020, Telekom Slovenije halted the sale of its 100% participating interest in IPKO Telecommunications LLC in Kosovo. The process was concluded without the selection of a buyer. IPKO Telecommunications LLC thus remains part of the Telekom Slovenije Group.
∫Telekom Slovenije initiated the sale of TSmedia, medijske vsebine in storitve, d.o.o.
∫The merger of Avtenta, napredne poslovne rešitve, d.o.o. with Telekom Slovenije was also initiated. The Supervisory Board gave its prior consent to start the aforementioned process, while activities are expected to be completed on 1 April 2021. The merger was not carried out by the planned deadline. The Company will notify shareholders about further activities.
The Telekom Slovenije Group operates in eight countries, seven countries in South-Eastern Europe and Germany. The Group comprises the parent company Telekom Slovenije and its subsidiaries. The composition of the Telekom Slovenije Group and participating interests as at 31 December 2020 are presented in the picture below, and in more detail on the website https://www.telekom.si/o-podjetju/skupina-telekom-slovenije/odvisne-druzbe.
6 GRI GS 102-4, 102-6; GRI 102-18
7 GRI GS 102-10
| Company | Managing Director |
|---|---|
| GVO, d. o. o. | Borut Radi |
| INFRATEL, d. o. o. | Borut Radi |
| OPTIC-TEL, d. o. o. | Borut Radi |
| AVTENTA, d. o. o. | Primož Kučič |
| TSmedia, d. o. o. | mag. Simon Furlan |
| SOLINE, d. o. o. | Klavdij Godnič |
| Planet TV, televizijska dejavnost, d.o.o. | Samo Ošina |
| TSinpo, d. o. o. | mag. Danilo Tomšič |
Miran Potočnik served as Managing Director until 31 January 2020. Primož Kučič has managed the company since 1 February 2020.
Rolando Žel served as Managing Director until 31 March 2020. Samo Ošina was appointed Managing Director on 1 April 2020. Nevenka Črnko served as Procurator from 1 April 2020 on. Prior to that time, the company did not have a procurator. With the completion of the sale of Planet TV to TV2 ADRIA, the functions of Managing Director, held by Samo Ošina, and Procurator, held by Nevenka Črnko, were terminated on 30 September 2020.
| Company | CEO/Managing Director |
|---|---|
| IPKO Telecommunications LLC, Kosovo | mag. Robert Erzin |
| SIOL d. o. o., Croatia | Matjaž Pogačnik, MBA |
| SIOL d. o. o. Podgorica, Montenegro | Matjaž Pogačnik, MBA |
| SIOL d. o. o. Sarajevo, Bosnia and Hercegovina | Matjaž Pogačnik, MBA |
| SIOL DOOEL Skopje, Macedonija | Matjaž Pogačnik, MBA |
| SIOL DOO BEOGRAD, Serbia | Matjaž Pogačnik, MBA |
| SIOL Prishtina L.L.C, Kosovo | Matjaž Pogačnik, MBA |
| GVO Telekommunikation GmbH | Borut Radi, Darko Gradišnik, Roman Mazi |
As parent company within the Telekom Slovenije Group, Telekom Slovenije manages the operations of subsidiaries in the scope of corporate governance by defining subsidiaries’ strategic policies and operational objectives, and by monitoring the achievement of established objectives. The Telekom Slovenije Group’s operational strategy also includes uniform corporate governance within the Group, as this optimises the operations of companies, improves the flow of information and creates synergies at the Group level.
Through corporate and individual membership in numerous professional organisations and associations, we build successful business links, create development opportunities and ensure the professional positioning of the Telekom Slovenije Group. Group companies are members or its employees serve as members of boards of directors, expert and strategic councils, and other bodies of the following organisations:
Digitalising a world of opportunities.
Adding simplicity and security to your lives.
Simple. Inspiring. Caring. Safe. Disruptive.
207 MWh of energy generated by own solar power plants
- Management of the Sečovlje Salina Nature Park
The first choice of users and business partners through a superior user experience, the best network and a range of the most advanced ICT services tailored to the needs of users.
Growth in ICT services through superior 4G/5G and fibre optic access networks, development of the IoT, smart infrastructures, artificial intelligence, telemedicine and cyber security. Maintaining our market position in the core activity.
Financial stability, optimal employee structure, development of employees’ knowledge and competences, consolidation on individual markets, and reputation and brand management.
Optimisation and automation of business processes.
Integration of the principles of sustainable development and the circular economy, achievement of the Sustainable Development Goals (SDG) from the United Nations’ Agenda 2030 in operations, services and products.
We proactively adapt the business model with which we generate value for our stakeholders, and respond to changes in the environment:
2829
The Telekom Slovenije Group implemented its established strategy in 2020 in accordance with adopted strategic policies. To that end, the Group updates its strategy and drafts a business plan for the next period every year. The Strategic Business Plan is the Group’s core corporate document. Defined in that document through its mission, vision, values, objectives and strategy are the Telekom Slovenije Group’s future development and strategic policies, which pursue the objectives of the UN’s declaration on sustainable development (Agenda 2030 for Sustainable Development). The document outlines the future business strategy of the Telekom Slovenije Group.
The Strategic Business Plan, business plan for the coming year and projections until 2025 were formulated on the basis of data and forecasts available until November 2020, taking into account the regulatory environment and forecasts of macroeconomic trends for the region in which the Telekom Slovenije Group operates. Taken into account during preparations were analyses of the operations and market shares of comparable European operators, analyses of the competition, development expectations and trends in the telecommunications sector, as well as a SWOT analysis for Telekom Slovenije Group companies.
The markets on which the Telekom Slovenije Group operates are characterised by a high level of competition, as users can choose from the services of various operators. Users demand high-quality services at low prices, in the context of which markets are becoming increasingly saturated. The ability to attract new users is thus constantly diminishing.
In general, a further drop in revenues from basic telecommunication services is expected on the Slovenian telecommunications market, which is developed and already in the phase of saturation (including systems integration and cloud services). Telekom Slovenije maintains a high market share in all segments in which it operates. Alternative operators are gaining market share primarily through an aggressive pricing policy that Telekom Slovenije cannot follow due to the limitations imposed by the regulatory body.
Telekom Slovenije provides the most state-of-the-art services tailored to the needs of users (a superior user experience, the best sales and after-sales care for users, the most advanced and reliable network, convergent packages, an offer outside of the core activity, a comprehensive range of IT solutions, and information and cyber security services). Ensuring the dynamic adaptation to the needs of users requires investments in the expansion and upgrading of technologies, accelerated digitalisation, the further optimisation of processes and the empowerment of employees.
The superior quality of its services is and will continue to be the Telekom Slovenije Group’s competitive advantage in the future. The Group’s development will continue to be based on high standards of social responsibility and sustainable development. The Telekom Slovenije Group will also achieve its strategic and business objectives for 2021 through the accelerated implementation of key projects that are presented in the section 1.8.4 Strategic projects.
10GRI GS 103-1, 103-2, 103-3
improves the efficiency of operations, and will thus remain an integral part of future business activities to ensure the competitiveness of the Telekom Slovenije Group.
The basic telecommunications market is stagnating in Slovenia, while Telekom Slovenije is under additional pressure from regulatory bodies. We will preserve revenues through accelerated digitalisation and the development of digital services, the further development of the network, the development of services based on 5G technology, successful cooperation with regulators, and above all the best user experience.
The European telecommunications market is experiencing the intensive consolidation of the sector, the merging of operators and a changing portfolio of services on the one hand, and the entry of new competitors on the ICT market on the other hand, which will further impact the operations of operators. The consolidation activities of Telekom Slovenije will focus on acquiring new competences, and on entering new markets and new areas.
Growth in ICT services and solutions will be based on the existing superior LTE/4G network, and the opportunities offered by fifth generation (5G) mobile networks. 5G technology will facilitate the development of the smart industry and smart cities, as well as the introduction of virtual campus networks, which in turn will enable the continued digitalisation of various verticals, such as energy, transportation, logistics, industry, smart cities, healthcare, and protection and rescue (public safety). The Telekom Slovenije Group will ensure the digitalisation of society as a whole on that basis. Growth will be achieved through organic growth and the consolidation of the Slovenian ICT market.
The Telekom Slovenije Group will continue to ensure the optimal number of employees, taking into account the needs of work processes at individual companies. We are optimising the employee structure through the strategic planning of needs for staff, and the appropriate organisational structure and job classification. We build the employer brand through an effective remuneration system, and the development of knowledge and competences.
We are implementing activities that facilitate the effective management of liquidity and ensure a high level of financial stability. We ensure the optimal level of debt over the long term, where the value of the Company is most important.
We actively identify opportunities where we can contribute to the development of the social and economic environment in which we operate through our expertise, and financial and other resources. The principles of sustainable development are built into our operations, products, services and content, while we also responsibly manage the economic, social and environmental impacts of our operations.
| Operating revenues | EUR | 653.0 million |
|---|---|---|
| Investments | EUR | 210.6 million |
Telekom Slovenije was the first in Slovenia to take the next step in the development of mobile technology, and established a national fifth generation (5G) mobile network on existing base stations and in the existing 2,600 MHz frequency spectrum. We successfully tested terminal equipment (Apple, Samsung, etc.) and received equipment manufacturers’ verification of the network. In the upgraded 4G/5G evolutionary network, users may achieve higher data transfer speeds than in the LTE/4G network already during this development phase, while the full potential of 5G technology will be available to users following the allocation of additional spectral bands.
During the first step, we upgraded 249 base stations and thus ensured around 25% coverage with the 4G/5G network, which we had increased to 32.44% by the end of the year. The establishment of the fifth-generation mobile network is one of our most important projects, through which we are achieving a large number of strategic objectives. It will provide numerous opportunities to Telekom Slovenije, users and the economy as a whole for development and advancement. See sections 2.8.1 Development of networks, services and projects and 2.8.2 Access networks for more information.
The development of new services represents one of our key strategic policies, as they are helping us to offset the drop in revenues from traditional telecommunication services.
We began developing an online marketplace in November 2018. The first merchants joined the platform in July 2020. In October we offered Slovenian consumers the new PIAZZ online marketplace (www.piazz.com) and thus brought together merchants and consumers in one place. We offer consumers a simple user experience, security and broad range of products, while offering merchants the opportunity to present their portfolios and offer their products to consumers via a single sales channel. This is particularly welcome in a period when online purchases across Europe are recording high growth due to measures aimed at preventing the spread of the novel coronavirus.
Its key advantage over similar online sales channels and price comparison websites lies in the fact that the entire process, from the presentation of products and suppliers to selection and payment is carried out within the same platform. This is supported by the latest smart intelligence technology, which helps every customer in their purchasing decisions based on their preferences and past purchases.
The area of advanced payments services (VALÚ) has been most characterised in the last year by growth in the number of users of the VALÚ mobile wallet, which already has nearly 70,000 registered users. Our users have executed more than 2 million transactions within the integrated VALÚ ecosystem. We upgraded the smart wallet with the VALÚ KLUB loyalty programme. For this purpose, the application is used as the primary means of identification and payment, while users can collect loyalty points for payments at Telekom Slovenije and in the latter’s Online Shop.
Through the development of smart services in the areas of eHealth and remote eCare, we are implementing the Company’s strategy to ensure, as an advanced operator, comprehensive and long-term solutions in different areas of operations, work and living with the aim of improving the quality of life.
Together with our partners, we developed the eHealth and eCare services as an upgrade to existing healthcare and social security services. Through such solutions, we are helping address the population’s need for healthcare and social services (ageing population and a rising number of chronic diseases), limited resources (at hospitals and retirement homes, medical and care staff, financial sources, etc.) and waiting lists. We upgraded services in 2020 with a telemedicine solution that allows healthcare workers to remotely monitor COVID-19 patients being treated at home. To that end, we also developed a solution for the centralised, real-time monitoring of the vital functions of patients seriously affected by the coronavirus.
With regard to Internet of Things (IoT) services for smart cities and industry, we expanded the range of verified partner solutions in the real environment with NB-IoT (Narrowband Internet of Things) communication protocols in 2020. The aforementioned technology facilitates the effective mass communication of devices connected to the Internet of Things, and represents the next milestone in the development of fifth-generation mobile networks. Together with Iskratel, we set up a test 5G network at their production facility in Kranj to support the growing smart industry.
In conjunction with the Port of Koper, we are participating in the European 5G-LOGINNOV project, in the scope of which we will set-up a development-test 5G network in the vicinity of the Port of Koper. The aim of that network will be the development and testing of solutions to optimise processes, increase efficiency and reduce environmental impacts in specific cases where the network will be used in the management of transport logistics. We developed a solution that facilitates the digitalisation and simplification of the central management of meters by municipal service companies in Slovenia, and the automatic metering of the consumption of energy sources. Together with partners, we designed an advanced smart city solution for the Citypark shopping mall, and prepared a range of IoT solutions for potential subscribers with the common name of Modro mesto (Smart City).
In 2020, we completed development of the programmes in the scope of the Excellence of the User Experience initiative. All programmes were implemented in regular work processes at individual contact points. We regularly monitor the effects of specific programmes and the level of customer satisfaction using key indicators to monitor the user experience. The initiative was implemented in three phases.
We achieved the key objectives that we set for the four-year period of the initiative:
At key contact points, we introduced and upgraded the innovative S.M.A.R.T. advanced development-training programme for advisers, which supports the vision, values and mission of the Telekom Slovenije Group. That programme is based on four key elements: a uniform approach, the raising of values, the development of competences and team work. Through S.M.A.R.T., we have upgraded the approach to and relationship with users with the aim of creating a superior user experience. We have improved customer satisfaction through the methods and techniques over which employees have an influence, and improved communication methods between users and employees.
Telekom Slovenije continuously expands and upgrades its network, which is available to an increasing number of users in urban, suburban and rural areas. We are investing intensively for the most part in the construction of a fibre optic access network through which we provide users the infrastructure for all existing and future broadband services. To that end, we also pursue the vision of the development of the communications network in Slovenia, which was defined by the Slovenian government in state strategic documents.
We facilitated the connection of an additional 43,994 Slovenian households to the fibre optic infrastructure in 2020, bringing the total number of household connections to more than 370,000. We will continue to invest in the expansion and upgrading of the fibre optic broadband network in the future, while the modernisation of the fibre optic access network will be carried out in accordance with commitments given in areas where we have expressed market interest, and in accordance with the Company’s strategy.
14 GRI GS 103-1, 103-2, 103-3
Through numerous projects and activities, the Telekom Slovenije Group actively achieved the objectives for 2020 set out in the Strategic Business Plan for the period 2020 to 2023. An overview of activities and achievements is presented in the table below.
| Strategic objective | Achieved in 2020 |
|---|---|
| 1. Maintaining the level of revenues from the core activity in Slovenia | We maintained the highest market share in both the fixed and mobile services segments in Slovenia. Our market shares were as follows: 37.9% of the mobile telephony segment, 28.9% of the fixed broadband internet access segment and 44.4% of the IPTV segment (figures for fourth quarter of 2020; source: AKOS). |
| 2. New revenue sources | We introduced the video identification service to facilitate remote digital signing. |
| After developing a technological solution with partners in 2019 for the remote telemedical treatment of patients with chronic diseases, we upgraded that solution for the needs of the remote monitoring of coronavirus patients by medical staff. The telemedicine centre at the University Medical Centre in Ljubljana was the first to use the solution. |
We established the PIAZZ online marketplace, which brings together merchants and customers in one place.
We upgraded the VALÚ mobile wallet, and offered users the physical VALÚ MasterCard debit card.
We offered various companies digitalised energy consumption monitoring services.
We expanded the range of services for smart cities and Industry 4.0 through the use of NB-IoT technology, which facilitates effective mass communication between devices connected to the Internet of Things (Modro mesto or Smart City).
In Tržič, we set up a traffic guidance system with smart parking lots. The system makes parking easier for the locals and tourists at key locations, and provides an overview of vacant parking places.
We developed an additional service for medium-sized and small enterprises in the Cyber Security Operation Centre.
We signed an agreement with the Ministry of the Interior on the construction of the infrastructure and maintenance of a digital radio system for Slovenian state authorities in accordance with the TETRA standard.
In the scope of the eCare service, we implemented national pilot projects in Celje, Krško and Dravograd for the transposition of the Long-Term Care Act into practice. At the end of the year, we entered the second phase of national pilot projects in Maribor.
Telekom Slovenije was the first in Slovenia to take the next step in the development of mobile technology, and established a national fifth mobile generation (5G) network on existing base stations and in the existing 2,600 MHz frequency spectrum, which is also used for the fourth mobile generation network.
We upgraded the mobile network at an accelerated pace: there were 1,342 GSM base stations, 911 UMTS base stations and 1,372 LTE/4G base stations connected to a total of 1,494 locations in Slovenia at the end of 2020. In 2020, we upgraded 133 LTE locations to 1,800 MHz, 113 LTE locations to 800MHz, 19 LTE locations to 900MHz, 12 LTE locations to 2,100MHz and 102 LTE locations to 2,600MHz. At the same time, we upgraded 249 locations with 5G technology. We thus ensured the undisputedly best, first and leading 4G/5G network, both in terms of coverage and speed.
We cover 96.64% of the population with the 4G signal and 32.44% of the population with the 5G signal. A total of 123 small cells were also included for internal coverage needs.
We built 43,994 new fibre optic connections and thus surpassed the 100,000 milestone, while we facilitate connections to the fibre optic network by more than 370,000 households in Slovenia. We increased speeds on the fibre optic access network, which now includes more than half of our total connections.
We introduced the video identification service, through which subscribers to our services gain full access to the management of services on the Moj Telekom (My Telekom) portal, and developed additional functionalities for business users.
Due to the closure of Telekom centres, the call centre became the key sales channel in 2020. For this reason, we established a link between incoming call contacts and analysts, and adapted electronic signing with subcontractor statements.
We adapted applications for the contactless receipt of goods following delivery, and updated the application for remote complaint resolution.
In the scope of VALÚ services, we introduced the VALÚ KLUB (coalition loyalty programme), offered users the VALÚ MasterCard, and upgraded the Urbana application for users with the iOS operating system.
We introduced the digital adviser Maks, in the scope of technical support services.
Telekom Slovenije sold Planet TV.
The Company halted the sale of its 100% participating interest in IPKO Telecommunications LLC in Kosovo.
Telekom Slovenije began the process of selling TSmedia and initiated activities to merge Avtenta with the parent company.
We expanded the S.M.A.R.T. advanced education and development programme for strengthening employee competences to the area of customer technical support.
The number of employees was down by 1.1% at the Group level and by 0.8% at Telekom Slovenije.
Group employees received an average of 18.6 hours of training, while that figure was 25.2 hours at Telekom Slovenije. The proportion of employees included in education and training was 91% at the Group level.
The Group’s labour costs were up by 1%, in part due to the coronavirus crisis bonus.
We consistently fulfilled the financial commitments set out in loan agreements with banks.
We secured reserve liquidity in the form of revolving loans.
In October 2020, we began the process of including the company in SISBIZ, a system for the exchange of information on the indebtedness of business entities.
We completed development of the programmes in the scope of the Excellence of the User Experience initiative. All programmes were implemented in regular work processes at individual contact points.
The parent company and subsidiaries passed all re-certification and regular audits of compliance with the requirements of SIST EN ISO/IEC standards. We expanded the scope of the certification of the information security management system (ISO 27001) for the fifth year in a row.
Through an information security management and business continuity management (ISMS/BCMS) system, we ensure the continuous and secure functioning of processes, ICT systems and services.
For more information, see section 2.9.7 Quality management.
Through sponsorships and donations, we support humanitarian, sporting, cultural and educational organisations and projects. To that end, we also serve as volunteers in society: 251 of our employees participated in blood drives in 2020, while one employee is active in civil protection.
We earmarked a total of EUR 2.2 million or 0.3% of the Telekom Slovenije Group’s operating revenues for socially responsible activities.
The Heart Foundation currently connects 1,230 employees from Slovenian Telekom Slovenije Group companies, who every month donate funds to help the children of employees who have lost a parent or who are seriously ill. In 2020, we provided monthly assistance to 33 children who have lost a parent.
Even in the extraordinary circumstances, we have remained compassionate and responsible to the environment in which we operate. We donated EUR 20,000 to the Postojna Gynaecological and Maternity Hospital for a new maternity bed for pregnant women who are infected or suspected of being infected with COVID-19. We donated a total of EUR 40,000 to the Ljubljana and Maribor University Medical Centres for the purchase of medical equipment needed for the treatment of coronavirus patients. We provided retirement homes free voice and video communication between the elderly and their family members. We donated 300 mobile modems to students from socially disadvantaged families and provided free mobile data transfer quantities. We donated used computer equipment to a number of primary schools throughout Slovenia.
We donated EUR 20,000 to the Fire Fighters Association of Slovenia for further training.
At the end of the year, we earmarked a total of EUR 20,000 to four humanitarian organisations who ease the loneliness of and offer assistance to elderly people who live alone.
The key objectives of the Telekom Slovenije Group for 2020 were adjusted due to the reclassification of Planet TV to assets held for sale. The results of Planet TV are only included in net profit from discontinued operations. When the pandemic was declared, numerous measures were adopted to limit the negative effects of the coronavirus on revenues, costs and investments.
| Planned in 2020 | Planned 2020 (Planet TV as a discontinued operations) | Achieved in 2020 |
|---|---|---|
| Operating revenues | EUR 676.0 million | EUR 677.8 million* |
| EBITDA | EUR 210.6 million | EUR 219.1 million* |
| Net profit | EUR 27.5 million | EUR 32.8 million* |
| CAPEX | EUR 209.7 million | EUR 173.0 million** |
** We optimised investments relative to the plan, despite the increased load on the network and accelerated digitalisation of operations due to the COVID-19 pandemic.
Telekom Slovenije concluded an agreement with stock market member Interkapital vrijednosni papiri to provide services in connection with maintaining the liquidity of the Company’s shares.
Telekom Slovenije adopted a plan of measures and activities in the event of a pandemic, which it based on its business continuity management system (BCMS), which is certified in accordance with the ISO 22301 standard. To that end, it also planned activities in the event of the activation of the National Civil Protection and Disaster Relief Plan. Measures focused on the protection of both employees and users, and on the smooth functioning of the network.
Telekom Slovenije successfully passed the external audit for the recertification of the ISO 27001 certificate for its information security management system and the ISO 22301 certificate for its business continuity management system.
Avtenta successfully passed certification for SAP HEC solutions.
Telekom Slovenije opened the most state-of-the-art Telekom centre in Slovenia at the Aleja shopping mall in Ljubljana. The centre is equipped with modern workstations, a special NEO living room and a special area dedicated to the presentation of products from the Loyalty Programme that Telekom Slovenije users can purchase via the Online Shop.
Telekom Slovenije and Iskratel established a test 5G network at Iskratel’s production facility in Kranj to support the growing smart industry. They thus enabled the development of new business models and the testing of a smart 5G infrastructure that facilitates numerous virtual dedicated networks for specific business verticals, including factories.
In the scope of the Horizon 2020 programme for research and innovation, Telekom Slovenije will participate in the European 5G-LOGINNOV development project. A development-test 5G network will be set up in the vicinity of the Port of Koper with the aim of optimising processes, increasing efficiency and reducing environmental impacts in the management of transport logistics.
Together with its partners Enerkon and 2GG-DS Meritve, Telekom Slovenije established a solution for the Velenje public utilities company using NB-IoT technology that facilitates the digitalisation and simplification of the central management of meters by municipal service companies in Slovenia, and the automatic metering of the consumption of energy sources, such as hot water, heating and natural gas.
Together with Telekom Slovenije, Zavarovalnica Triglav introduced the possibility of remote digital signing and remote video identification services that were well-received by policyholders during the COVID-19 epidemic, when operations were migrated to the digital environment.
Telekom Slovenije was the first in Slovenia to establish a national fifth mobile generation (5G) network on existing base stations and in the existing 2,600 MHz frequency spectrum, which is also used for the fourth mobile generation network.
39
Trusted Brand 2020: Telekom Slovenije received the title of Trusted Brand for mobile telephony and internet services.
Together with its partner DS Meritve, Telekom Slovenije developed a technological solution for the remote reading of energy consumption with a telemetry system for the Citypark shopping centre in Ljubljana. Through the use of NB-IoT technology in the 4G+ network, the solution facilitates the remote, centralised and automatic monitoring of energy consumption by the managers of commercial buildings, office towers or shopping centres.
Following the establishment of a national fifth mobile generation (5G) network in the existing 2,600 MHz frequency spectrum, the users of the Telekom Slovenije’s mobile services have been using 5G technology since 5 October 2020. The Naj 5G mobile package is available for that purpose, while users with the appropriate mobile phone can activate 5G services in any other mobile package.
Telekom Slovenije and the European Investment Bank signed a long-term loan agreement in the amount of EUR 100 million, which the Company will use in Slovenia to finance the expansion and upgrading of the fibre optic access network with gigabit speeds until 2023, inclusive.
The NEO platform is also available to subscribers to Telekom Slovenije’s TV services in the form of the NEO TV Lite application.
Telekom Slovenije successfully passed the regular external audit of its energy management system in accordance with the ISO 50001 standard.
For the World Ski Jumping Championship in Planica, Telekom Slovenije set up access via fibre optic connections with speeds of 10 Gbit/s, and a 5G mobile network with download speeds of 450 Mbit/s and upload speeds of 100 Mbit/s.
Significant events after the balance sheet date are presented in the Accounting Report in point 47.
Events after the balance sheet date.
40
∫Infosek: Telekom Slovenije’s Cyber Security Operation Centre was named security product of the year at the high-profile Infosek information security event.
∫Media daily: TSmedia’s Siol.net earned second place in the category for best website in the Balkans.
∫SAP Gold Partner and other recognitions: Avtenta received the title of SAP Gold Partner again in 2020, as well as the Bisnode AAA Golden Creditworthiness Certificate of Excellence. The aforementioned company also received the title of Marg Gold Partner in the area of document system solutions.
∫BusinessConnect / GovernmentConnect received the title of BizBox Partner.
∫AAA Golden Creditworthiness Certificate of Excellence: GVO received the AAA Golden Creditworthiness Certificate of Excellence.
In the spring, the customer technical support team was joined by the digital adviser Maks, who helps users address various technical challenges. Maks is available 24 hours a day, every day of the year. Users can contact him via Moj Telekom at moj.telekom.si, via the mobile application, via Facebook Messenger (Adviser Maks) and by text message (SMS with the keyword MAKS sent to 041700800). Maks is an excellent assistance in a time when the majority of our users’ communication has shifted to the digital environment. Almost 10,000 users contacted the digital adviser in 2020.
In 2020, Telekom Slovenije was the first in Slovenia to take the next step in the development of mobile technology, and established a national fifth mobile generation (5G) network on existing base stations and in the existing 2,600 MHz frequency spectrum, which is also used for the fourth mobile generation network. The first phase of the upgrading of the network with 5G technology is based on the non-standalone (NSA) principle, where the control element continues to use the 4G network. This, in turn, required the upgrading of existing locations. We are planning a standalone (SA) network in the future, meaning that the 5G network will be functioning independently.
∫Slovenian Grand Security Award: Telekom Slovenije’s Cyber Security Operation Centre received an award for best innovative security solution at the Days of Corporate Security conference.
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 2020. It relates to the period 1 January 2020 to 31 December 2020. 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/o-podjetju/predstavitev/organiziranost-in-upravljanje/upravljanje-druzbe 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:
Group, which were adopted on 18 February 2020.
The Corporate Governance Policy defines a system for segregating responsibilities and competences between members of management and supervisory bodies, the role of Supervisory Board’s committees and the protection of employees’ interests. It also defines groups of stakeholders, a strategy for communication and cooperation with those groups, a policy governing links between the Company and its subsidiaries, and a commitment to identify conflicts of interest and to ensure the independence of members of the Supervisory Board and Management Board.
The Supervisory Board and Management Board adopt updates to the Corporate Governance Policy, taking into account current guidelines in the area of corporate governance, as well as binding regulations and best practices.
The Corporate Governance Rulebook of the Telekom Slovenije Group defines the rules, criteria and mechanisms for managing and supervising companies in the Telekom Slovenije Group. The Instructions on the Implementation of the Corporate Governance Rulebook of the Telekom Slovenije Group defines the way in which the corporate governance of subsidiaries is implemented in individual areas.
The Management Board and Supervisory Board function in accordance with the law and other regulations, the Articles of Association of Telekom Slovenije, d. d., and the rules of procedure of the Management Board and Supervisory Board.
The Corporate Governance Policy of Telekom Slovenije, d. d., the rules of procedure of the Management Board and the other documents linked to corporate governance are publicly accessible on the website www.telekom.si, under Corporate Governance - English - Telekom Slovenije.
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 2020 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:
Telekom Slovenije adopted a diversity policy in 2020 in accordance with the recommendation of the code. The policy deviates in part from the recommendation, as it does not specifically define objectives. Objectives are of a descriptive nature, but are not stated in numbers or percentages, except with respect to gender diversity.
Recommendation 5.6:
Telekom Slovenije deviates in part from this recommendation because, in accordance with appendices C3 and C4 to the code, the composition and remuneration of members of the Management Board and Supervisory Board are not an integral element of the corporate governance statement, but are published in the second chapter of the annual report, while reference to the relevant chapter is given in the corporate governance statement.
Recommendation 8.5:
Telekom Slovenije deviated in part from this recommendation in 2020, as two members of the Supervisory Board submitted letters of resignation with the explanation that they could no longer perform their functions with due diligence.
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. Members of the Supervisory Board have an online overview of Telekom Slovenije’s current internal training programme and attend training in accordance with available dates.
Telekom Slovenije deviates in part from this recommendation, as the Supervisory Board monitored measures in 2020 based on an assessment carried out when the new rules of procedure of the Supervisory Board, which had not yet been adopted in 2020, were drawn up.
Telekom Slovenije did not comply with this recommendation, as an external evaluation of the assessment of the Supervisory Board was not performed. The Supervisory Board is planning an external evaluation for the 2021 financial year.
Telekom Slovenije deviates in part from this recommendation, as the President of the Supervisory Board also served as chair of the HR Committee and the currently appointed Nomination Committee from 4 November 2020 on, but his term of office expired on 21 January 2021.
Telekom Slovenije deviated from this recommendation in 2020, as the contract with the external member of the Audit Committee stated that the aforementioned contract ceases to be in force on the day the term of office of the Supervisory Board expires, or on the day the function of the external member of the Audit Committee is terminated based on a Supervisory Board resolution. With the appointment of a new external member of the Audit Committee on 11 February 2021, that deviation from the recommendation was eliminated in the associated contract.
Telekom Slovenije deviates in part from this recommendation, as it does not have in place a succession system for the Management Board. However, internal candidates were included in the process of appointing a member to the Management Board in 2020 and were appropriately evaluated in that process.
Telekom Slovenije deviated in part from this recommendation in 2020, as a member (and President) of the Supervisory Board, Boštjan Koler, was not independent from Slovenski državni holding, d. d., where he was also a member of the Management Board from 3 November 2020 to 21 January 2021.
Telekom Slovenije explains below deviations from individual recommendations set out in the aforementioned code:
Telekom Slovenije deviated in part from this recommendation in 2020, as a member (and President) of the Supervisory Board, Boštjan Koler, was not independent from Slovenski državni holding, d. d., where he was also a member of the Management Board from 3 November 2020 to 21 January 2021. Recommendation 4.1 is in contravention of recommendation 6.7, which stipulates an exception for a link with a shareholder.
Telekom Slovenije deviates in part from these recommendations, as it does not have a succession policy as a unique document. The succession process involves the identification of key and perspective employees, as well as potential successors. In the scope of the process, potential internal candidates are also assessed every time a member is appointed to the Management Board.
Telekom Slovenije deviated in part from this recommendation in 2020 because the justification of a proposal for shareholders at the 31st General Meeting of Shareholders held on 5 June 2020 regarding the election of Dimitrij Marjanović as member of the Supervisory Board did not include an assessment of potential conflicts of interest and an assessment of whether the proposed candidate is independent in relation to the Company according to the criteria set out in the code. That justification did not include these two aspects because Dimitrij Marjanović was already a member of the Supervisory Board and the election of a new member was required due to the expiry of his term of office. Those aspects are regularly verified during a member’s term of office in accordance with legal provisions and the recommendations of the code.
Telekom Slovenije deviates in part from this recommendation. Given the current relevance and complexity of individual matters, the Supervisory Board’s Audit Committee met at more sessions in 2020 than the recommended number.
Telekom Slovenije deviates from this recommendation to a lesser degree because the variable element of the remuneration of Management Board members is not disclosed separately in terms of qualitative and quantitative criteria.
Telekom Slovenije deviates in part from this recommendation, as all costs incurred by the Supervisory Board are not disclosed separately as stated in the recommendation because they are not booked to a separate cost centre.
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 of Slovenski državni holding is published on the Company’s official website at: https://www.telekom.si/o-podjetju/predstavitev/organiziranost-in-upravljanje/upravljanje-druzbe.
Telekom Slovenije is a public limited company. It has a two-tier system of governance. It is managed by the Management Board and supervised by the Supervisory Board. The Company’s governing body is its General Meeting of Shareholders.
The equal treatment and consistent exercising of the rights of all shareholders are ensured through the corporate governance system and a communication strategy for shareholders and other stakeholders. 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 and the date from which the deadlines apply.
Shareholders exercise their rights at the General Meeting of Shareholders in person or through authorised representatives. The convening, competences and functioning of the General Meeting of Shareholders are set out in the ZGD-1, the Company’s Articles of Association and the rules of procedure of the General Meeting of Shareholders. Shareholders have the right to participate in the management of the Company, the right to dividends and the right to an appropriate share of residual assets after the Company’s liquidation or bankruptcy.
Shareholders exercise their right to information at the General Meeting of Shareholders. Detailed information regarding shareholders’ rights set out in paragraph 1 of Article 298, paragraph 1 of Article 300, Article 301 and Article 305 of ZGD-1 are available on the Company’s website at Shareholders Meeting - English - Telekom Slovenije.
Shareholders who are entered in the central register of securities at KDD (Central Securities Clearing Corporation) at the close of business four 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 the 31st General Meeting of Shareholders held on 5 June 2020, when 81.16% of shares with voting rights were represented. At the General Meeting of Shareholders, the Company’s shareholders:
defined the remuneration of members of the Supervisory Board; and gave their consent to the conclusion of an out-of-court settlement in litigation involving former members of the Company’s Management Board.
Based on the request of 4 December 2020 to convene the General Meeting of Shareholders submitted by the shareholder Slovenski državni holding, d. d. in its own name and on behalf of the Slovenian government, Telekom Slovenije’s shareholders met at the 32nd General Meeting of Shareholders held on 21 January 2021, when 77.41% of shares with voting rights were represented. At the General Meeting of Shareholders, the Company’s shareholders:
No challenges at the above-described General Meetings of Shareholders were announced. The resolutions of General Meetings of Shareholders and documentation from previous meetings are published on the Company’s website. According to the Company’s financial calendar, the 33rd General Meeting of Shareholders for 2021 is planned for 18 June 2021.
In 2020, Telekom Slovenije’s Management Board comprised five members who were appointed for a four-year term of office. They were appointed by the Company’s Supervisory Board, taking into account the relevance of their expertise and managerial competences. Pursuant to the Company’s Articles of Association, any person who, in addition to meeting the relevant legal requirements, has a university-level qualification, at least five years of work experience in management positions and active knowledge of at least one foreign (global) language, and who fulfils other conditions defined by the Supervisory Board may be appointed as a member of the Management Board. These conditions do not apply to the Worker’s Director as member of the Management Board. Those conditions and criteria are defined jointly by the Supervisory Board and Works Council.
The four-year term of office of Ranko Jelača expired on 15 March 2020. On 22 June 2020, Telekom Slovenije’s Supervisory Board appointed Tomaž Jontes to serve as member of the Management Board. Mr Jontes’ four-year term of office began on 22 June 2020.
At its 3rd regular session held on 10 March 2021, Telekom Slovenije’s Supervisory Board reached an agreement with the President and three members of the Management Board on the termination of their employment contracts and their recall from the aforementioned positions. Accordingly, the terms of office of the President of the Management Board Tomaž Seljak and members Dr Vida Žurga, Matjaž Beričič, MSc and Tomaž Jontes ended on 10 March 2021.
At the same session, Telekom Slovenije’s Supervisory Board appointed Cvetko Sršen to serve as President, and Dr Mitja Štular and Tomaž Jontes to serve as members of the Management Board. Their four-year terms of office began on 10 March 2021.
At its fourth regular session held on 22 March 2021, Telekom Slovenije’s Supervisory Board appointed Barbara Galičič Drakslar to serve as member of the Management Board for a four-year term of office that begins on 31 March 2021.
| Name | Office | Area of work on the Management Board | First appointment to function | Completion |
|---|---|---|---|---|
| of function | term of office | Gender | Nationality | Year of birth | Education / professional profile | Membership in supervisory bodies of unaffiliated companies |
|---|---|---|---|---|---|---|
| Tomaž Seljak, MSc | 1 May 2014 10 December 2019 9 December 2019 10 March 2021 | Male | Slovenian | 1972 | Holds a master’s degree and bachelor’s degree in electrical engineering. | Vice-President Corporate Governance, Human Resource Management and General Affairs, Public Relations, Legal Affairs and Regulation, Compliance, Risk Management, Security and the subsidiaries IPKO and TSinpo. |
| Dr Vida Žurga | 1 February 2019 22 January 2020 10 March 2021 10 March 2021 | Female | Slovenian | 1984 | Holds a doctorate degree in science and a bachelor’s degree in economics, and is an experienced internal auditor. | Member Vice-President Finance, Accounting and Controlling, Internal Auditing, Procurement, Real Estate Management, Logistics, Wholesale Market and the subsidiary TSmedia. |
| Matjaž Beričič, MSc | 10 December 2019 10 March 2021 | Male | Slovenian | 1974 | Holds a master’s degree and bachelor’s degree in electrical engineering. | Member Network Management, IT and ICT Services, and the subsidiaries GVO, SIOL Zagreb, SIOL Podgorica, SIOL Sarajevo, SIOL Skopje, SIOL DOO Belgrade and SIOL Prishtina. |
| Tomaž Jontes | 22 June 2020 10 March 2021 | Male | Slovenian | 1971 | Holds a bachelor’s degree in economics. | Member B2C, B2B, Marketing, and the subsidiaries Avtenta and Soline. |
| Špela Fortin | 14 September 2019 14 September 2023 | Female | Slovenian | 1978 | Business college student. | Member of the Management Board – Workers Director Responsibilities derive directly from the law. |
| Ranko Jelača | 15 March 2016 15 March 2020 | Male | Slovenian/Croatian | 1977 | Holds a bachelor’s degree in economics. | Member B2C, B2B, Marketing, and the subsidiaries Avtenta and Soline. |
The Management Board manages transactions and represents the Company independently, and is liable for its own actions in that regard. It makes decisions that are in line with the Company’s strategic objectives and in the interest of shareholders and other stakeholders, taking into account the principles of sustainable development.
The Management Board met at 81 regular and 25 correspondence sessions in 2020. It adopted the strategy of the Telekom Slovenije Group for the period 2021 to 2025, and drafted the Strategic Business Plan of the Telekom Slovenije Group for the period 2020 to 2025 and implemented activities to achieve the objectives set out in the current Strategic Business Plan.
The Management Board dedicated special attention in 2020 to activities aimed at establishing a national fifth generation (5G) network, and to the preparation and implementation of activities, together with the adoption of preventive measures, during the COVID-19 pandemic.
In accordance with the Strategic Business Plan of the Telekom Slovenije Group for the period 2020 to 2023, the Management Board adopted decisions regarding the following:
The Management Board also adopted numerous business decisions and carried out activities that included the following:
The remuneration, composition and amount of earnings of the Management Board are set out in members’ employment contracts, taking into account the Act Governing the Earnings of Management Staff at Companies Under the Majority Ownership of the Republic of Slovenia and Self-Governing Local Communities (ZPPOGD).
The Supervisory Board sets objectives for the Management Board for every financial year, based on the approved annual business plan and certain key indicators. The Management Board’s objectives comprise quantitative and qualitative objectives, as well as financial and non-financial objectives that are defined for the purpose of monitoring the performance of Management Board members.
The conditions for profit sharing by the Management Board are governed by the Company’s Articles of Association. The earnings of the Management Board in 2020 are presented in the Accounting Report in point 42. Related party transactions.
48 ANNUAL REPORT OF THE TELEKOM SLOVENIJE GROUP AND TELEKOM SLOVENIJE
The Supervisory Board comprises a total of nine members, six of whom are shareholder representatives and three of whom are employee representatives. The composition of the Supervisory Board is diverse in terms of knowledge, skills, experience, professional qualifications, age, gender, work methods and other aspects.
The President of the Supervisory Board Aleš Šabeder and Supervisory Board members Barbara Cerovšek Zupančič, MSc and Bernarda Babič, MSc tendered their resignations on 19 October 2020. Aleš Šabeder and Barbara Cerovšek Zupančič, MSc resigned, effective on the day of the appointment of replacement or new members to the Supervisory Board, while Bernarda Babič, MSc resigned, effective on 19 January 2021 or on the day of the appointment of a replacement or new member by the Company’s General Meeting of Shareholders, if the latter is convened before that date.
On 3 November 2020, the Ljubljana District Court issued a decision, under which Boštjan Koler, Dimitrij Marjanović and Štefan Belingar, MSc were appointed to serve as new members of the Supervisory Board, effective on the day that decision was issued, until the election of members to the Supervisory Board by the Company’s General Meeting of Shareholders, but for a period of no more than one year from the issue of the aforementioned decision. The terms of office of Aleš Šabeder, Barbara Cerovšek Zupančič, MSc and Bernarda Babič, MSc were terminated, effective the same day.
On 4 November 2020, the members of the Supervisory Board elected Boštjan Koler to serve as President of the Supervisory Board, and Barbara Kürner Čad and Drago Kijevčanin to serve as Vice-Presidents, the former as shareholder representative and the latter as employee representative.
At the 32nd General Meeting of Shareholders held on 21 January 2021, shareholders recalled member of the Supervisory Board and shareholder representative Igor Rozman, and elected Iztok Černoša, Aleksander Igličar, MSc, Marko Kerin and Radovan Cerjak to serve four-year terms of office, effective 22 January 2021.
On 11 February 2021, the members of the Supervisory Board elected Iztok Černoša to serve as President of the Supervisory Board, while Barbara Kürner Čad and Drago Kijevčanin remained in their functions as Vice-Presidents, the former as shareholder representative and the latter as employee representative.
The Supervisory Board met at seventeen regular and two correspondence sessions in 2020. It ensured the responsible and high-quality supervision of the operations of the Company and the Telekom Slovenije Group.
The Supervisory Board 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 the findings, proposals and assessments of committees, the Supervisory Board adopted the appropriate decisions.
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. Members are fully liable for the performance of their supervisory function and make their decisions independently. All members of the Supervisory Board submitted statements of compliance with the criteria of independence in accordance with the Corporate Governance Code (the statements are published on the websites of Telekom Slovenije.
16GRI GS 102-18, 405-1
| Name | Office | First appointment to function | Shareholder/employee representative | Participation in Supervisory Board sessions with respect to total number | Gender | Nationality | Year of birth | Education / professional profile | Independence in accordance with Article 23 of the Code | Existence of conflicts of interest during the financial year | Membership in supervisory bodies of other companies | Employment |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Boštjan Koler | President | 3 November 2020 | Shareholder representative | 4/4* | Male | Slovenian | 1961 | Holds a bachelor‘s degree in law. | NO | Member of the Management Board of Slovenski državni holding, d. d. | ||
| Barbara Kürner Čad | Vice-President | 27 April 2017 | Shareholder representative | 19/19 | Female | Slovenian | 1964 | Holds a bachelor‘s degree in law. | YES | NO | Attorney at the Čad Law Firm | |
| Barbara Gorjup, MSc | Member | 27 April 2017 | Shareholder representative | 19/19 | Female | Slovenian | 1973 | Holds a master’s degree in international economics. | YES | NO | Managing Director of Baklus, d.o.o. | |
| Štefan Belingar, MSc | Member | 3 November 2020 | Shareholder representative | 4/4* | Male | Slovenian | 1965 | Holds a master’s degree in business policy and organisation. | YES | NO | ||
| Dimitrij Marjanović | Member | 13 May 2016 | Shareholder representative | 9/12* | Male | Slovenian | 1970 | Holds a bachelor’s degree in economics. | YES | NO | Iskra ESV, d.d. | Senior manager in the |
| Name | Position | Start Date | End Date | Participation | Gender | Nationality | Year of Birth | Education | Experience |
|---|---|---|---|---|---|---|---|---|---|
| Igor Rozman | Member | 30 August 2019 | 21 January 2021 | 19/19 | Male | Slovenian | 1959 | Holds a bachelor‘s degree in computer engineering. | Expert in the areas of television production, programme production systems and information systems at RTV Slovenija. |
| Aleš Šabeder | President | 15 June 2020 | 3 November 2020 | 7/7* | Male | Slovenian | 1970 | Holds bachelor's degree in economics | Pošta Slovenije, d.o.o. |
| Bernarda Babič, MSc | Member | 27 April 2013 | 3 November 2020 | 15/15* | Female | Slovenian | 1966 | Holds a master’s degree in business policy and organisation, with a major in banking. | Assistant to the Managing Director of Slovenske železnice, d. o. o. |
| Barbara Cerovšek Zupančič, MSc | Member | 30 August 2019 | 3 November 2020 | 15/15* | Female | Slovenian | 1975 | Holds a master’s degree in national and European studies, and a degree in administrative organisation. | Member of the Management Board of Deželna banka Slovenije, d. d. |
| Drago Kijevčanin | Vice-President and employee representative | 19 September 2018 | 14 November 2021 | 19/19 | Male | Slovenian | 1964 | Telecommunications engineer | Telekom Slovenije, network engineer in the ICT and Network Services organisational unit, President of the SELEKS trade union and member of the Works’ Council. |
| Dušan Pišek | Member | 19 September 2018 | 14 November 2021 | 18/19 | Male | Slovenian | 1964 | Telecommunications engineer | Telekom Slovenije, team leader in the ICT and Network Services organisational unit and President of the Works’ Council. |
| Jana Žižek Kuhar | Member | 19 September 2018 | 14 November 2021 | 18/19 | Female | Slovenian | 1974 | Holds a degree in economics. | Telekom Slovenije, expert in the Procurement, Logistics and Real Estate organisational unit and member of the Works Council. |
The Supervisory Board had four committees during the year. They were the Audit Committee, HR Committee, Strategy Committee and Marketing and Technology Committee, which was renamed from the Technical Committee in January 2020. The aforementioned committees discussed individual areas of expertise in accordance with their respective competences and tasks. The composition and most important tasks of individual committees in 2020 are described below:
Following a change in the members of the Supervisory Board, that body reconstituted its committees on 4 November 2020.
Board in its supervision of financial reporting, internal controls and risk management at Telekom Slovenije and at the Telekom Slovenije Group level, and in cooperation with external and internal auditors. The Audit Committee’s key tasks are to ensure professional cooperation in the corporate governance process, to function for the good of the Company and to protect the interests of its stakeholders.
The composition of the Audit Committee changed several times during the year. Dimitrij Marjanović chaired the Audit Committee until 13 May 2020, when he was succeeded by Barbara Gorjup, MSc. Štefan Belingar, MSc replaced Barbara Cerovšek Zupančič, MSc as member of the Audit Committee on 4 November 2020, when Barbara Kürner Čad was also appointed to that committee.
Information regarding the members of the Audit Committee who are also members of the Supervisory Board in 2020 is presented in the table detailing the members of the Supervisory Board on page 50, while information regarding the external member in 2020 is presented in the table below.
The Audit Committee met at nine ordinary sessions, and held ten correspondence sessions and three extraordinary sessions in 2020. 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 by viewing 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 2020 and the resolutions of Telekom Slovenije’s Supervisory Board.
| Name | Committee | Participation in committee sessions with respect to total | Nationality | Level of education | Year of birth | Professional profile | Membership in supervisory bodies of other companies |
|---|---|---|---|---|---|---|---|
| Barbara Nose | Audit Committee | 21/22 | Slovenian | Holds a bachelor’s degree in economics and specialises in auditing and accounting | 1964 | Auditing and accounting | Member of the Supervisory Board of Luka |
| Name | Office | First appointment to function | Shareholder/employee representative | Participation in Supervisory Board sessions with respect to total number | Gender | Nationality | Year of birth | Education / professional profile | Independence in accordance with Article 23 of the Code | Existence of conflicts of interest during the financial year | Membership in supervisory bodies of other companies | Employment |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Boštjan Koler | President | 3 November 2020 | Shareholder representative | 4/4* | Male | Slovenian | 1961 | Holds a bachelor‘s degree in law. | NO | Member of the Management Board of Slovenski državni holding, d. d. | ||
| Barbara Kürner Čad | Vice-President | 27 April 2017 | Shareholder representative | 19/19 | Female | Slovenian | 1964 | Holds a bachelor‘s degree in law. | YES | NO | Attorney at the Čad Law Firm | |
| Barbara Gorjup, MSc | Member | 27 April 2017 | Shareholder representative | 19/19 | Female | Slovenian | 1973 | Holds a master’s degree in international economics. | YES | NO | Managing Director of Baklus, d.o.o. | |
| Štefan Belingar, MSc | Member | 3 November 2020 | Shareholder representative | 4/4* | Male | Slovenian | 1965 | Holds a master’s degree in business policy and organisation. | YES | NO/ | ||
| Dimitrij Marjanović | Member | 13 May 2016 | Shareholder representative | 9/12* | Male | Slovenian | 1970 | Holds a bachelor’s degree in economics. | YES | NO | Iskra ESV, d.d. | Senior manager in the Financial Management Department at Slovenski državni holding, d.d. |
| Igor Rozman | Member | 30 August 2019 | Shareholder representative | 19/19 | Male | Slovenian | 1959 | Holds a bachelor‘s degree in computer engineering. | YES | NO | Expert in the areas of television production, |
| Name | Position | Start Date | End Date | Participation | Gender | Nationality | Year of Birth | Education | Current Position |
|---|---|---|---|---|---|---|---|---|---|
| Aleš Šabeder | President | 15 June 2020 | 3 November 2020 | 7/7 | Male | Slovenian | Pošta Slovenije, d.o.o. | ||
| Bernarda Babič, MSc | Member | 27 April 2013 | 3 November 2020 | 15/15 | Female | Slovenian | 1966 | Holds a master’s degree in business policy and organisation, with a major in banking. | Terme Olimia, d.d. |
| Barbara Cerovšek Zupančič, MSc | Member | 30 August 2019 | 3 November 2020 | 15/15 | Female | Slovenian | 1975 | Holds a master’s degree in national and European studies, and a degree in administrative organisation. | Member of the Management Board of Deželna banka Slovenije, d. d. |
| Drago Kijevčanin | Vice-President and employee representative | 19 September 2018 | 14 November 2021 | 19/19 | Male | Slovenian | 1964 | Telecommunications engineer | Telekom Slovenije, network engineer in the ICT and Network Services organisational unit, President of the SELEKS trade union and member of the Works’ Council. |
| Dušan Pišek | Member | 19 September 2018 | 14 November 2021 | 18/19 | Male | Slovenian | 1964 | Telecommunications engineer | Telekom Slovenije, team leader in the ICT and Network Services organisational unit and President of the Works’ Council. |
| Jana Žižek Kuhar | Member | 19 September 2018 | 14 November 2021 | 18/19 | Female | Slovenian | 1974 | Holds a degree in economics. | Telekom Slovenije, expert in the Procurement, Logistics and Real Estate organisational unit and member of the Works Council. |
It periodically monitored the risk management system, the functioning of internal controls, compliance, reports on lawsuits and supervision proceedings, and reports on suspected breaches of corporate integrity;
It implemented procedures for which the Audit Committee is responsible in connection with the selection of the Company’s certified auditor for the mandatory auditing of the financial statements of the Telekom Slovenije Group and Telekom Slovenije for the 2020, 2021 and 2022 financial years, and sent a proposal to the Supervisory Board for the appointment of the auditor (because the contract with the previous certified auditor expired, several audit firms were called on to submit bids based on previously prepared tender documentation that included transparent and non-discriminatory criteria. The Audit Committee reviewed the final evaluation of bids and the report on the review, assessment and evaluation of bids, and found that the aforementioned report was compiled professionally and contained all the criteria and elements set out in the tender documentation);
Statements of the Telekom Slovenije Group for the 2020, 2021 and 2022 financial years; in accordance with the Guidelines for Ensuring the Independence of the Auditor of the Financial Statements of the Telekom Slovenije Group, which define the methods and procedures for monitoring the independence and impartiality of the auditor of financial statements, as well as protective measures, the selection of the auditor and procedures for non-audit services:
The Director of the Internal Audit Service was invited to all sessions of the Audit Committee. The Audit Committee also invited the certified auditor of the financial statements to sessions at which quarterly reports on the operations of Telekom Slovenije and the Telekom Slovenije Group were discussed.
With the aim of continuously improving the quality of its work, the Audit Committee performed a self-assessment in 2020 and adopted an action plan of improvements. All resolutions adopted under the aforementioned action plan were implemented by the end of the financial year.
The HR Committee met at seven sessions in 2020. Significant activities of the HR Committee included:
The HR Committee’s members were as follows as at 31 December 2020:
The HR Committee was chaired by Igor Rozman until 4 November 2020. All sessions of the HR Committee in 2020 were held during the first half of the year. Information regarding the members of the HR Committee in 2020 is presented in the table detailing the members of the Supervisory Board on page 50.
The HR Committee has comprised the following members since 11 February 2021: Radovan Cerjak (chair), Barbara Kürner Čad, Marko Kerin, Iztok Černoša and Drago Kijevčanin.
The Marketing and Technology Committee met at two sessions in 2020. It discussed the security aspects of operations during the first part of the year and the construction of a fibre optic access network during the second part.
The Marketing and Technology Committee’s members were as follows as at 31 December 2020:
Bernarda Babič, MSc chaired the Marketing and Technology Committee until 15 June 2020, when the Supervisory Board appointed Dušan Pišek to chair that committee. Information regarding the members of the Marketing and Technology Committee in 2020 is presented in the table detailing the members of the Supervisory Board on page 50.
The composition of the Marketing and Technology Committee has been as follows since 11 February 2021: Aleksander Igličar, MSc, (chair), Barbara Gorjup, MSc and Dušan Pišek.
for the period 2021 to 2025, and then the Strategic Business Plan of the Telekom Slovenije Group for the same period with the Business Plan for 2021.
The Strategy Committee’s members were as follows as at 31 December 2020:
Barbara Cerovšek Zupančič, MSc served as chair of the Strategy Committee until she resigned from her position as member of the Supervisory Board. The Supervisory Board appointed new members and the chair of the Strategy Committee on 3 November 2020. Information regarding the members of the Strategy Committee in 2020 is presented in the table detailing the members of the Supervisory Board on pages 9 to 11.
The Strategy Committee has comprised the following members since 11 February 2021: Marko Kerin (chair), Radovan Cerjak, Barbara Kürner Čad and Jana Žižek Kuhar.
Supervisory Board members are entitled to attendance fees, basic payment for performing their functions and additional payments for participation in Supervisory Board committees. The remuneration of members of the Supervisory Board is defined by a resolution of the General Meeting of Shareholders. Also defined are the maximum annual amounts of and eligibility criteria for the reimbursement of transportation expenses, daily allowances and costs of overnight stays. The amounts of payments made to members of the Supervisory Board are disclosed in the Accounting Report.
When they assumed their function, every member of the Supervisory Board submitted a statement of compliance with the criteria of independence according to point C.3 of the appendix to the Corporate Governance Code. Those statements are accessible on the website of Telekom Slovenije.
On 22 June 2020, the Supervisory Board adopted the updated Policy Governing the Diversity of the Management Board and Supervisory Board of Telekom Slovenije, d. d. (hereinafter: the Policy). The objective of the Policy is to ensure the increased effectiveness of the Management Board and Supervisory Board, and to improve the diversity of the members of both bodies. The Management Board and Supervisory Board can use the diversity of members in terms of knowledge, skills, experience, professional qualifications, age, gender, work methods and other aspects to the good of the Company. The Policy is published on Telekom Slovenije’s website at Telekom Slovenije.
In accordance with the Policy and in addition to legal requirements and requirements set out in the Company’s Articles of Association, the following primary objectives and/or aspects of diversity must be taken into account to the greatest extent possible when determining the optimal composition of the Company’s Management Board and Supervisory Board, to ensure the effectiveness of an individual body as a whole: professional profile, continuity, experience, gender, age and personal integrity.
In terms of gender, the Policy pursues the objective of heterogeneity, whereby an under-represented gender should account for 40% of all members of the Supervisory Board and 33% of all members of the Management Board and Supervisory Board by the end of 2026. The Company achieved that objective throughout 2020. In terms of the composition of the Supervisory Board, that objective was achieved for most of 2020. Following changes to the Supervisory Board in November 2020, the proportion of Supervisory Board members accounted for by the under-represented gender fell to 33.3%.
In the scope of selecting Management Board and Supervisory Board members, the latter’s HR Committee monitored the implementation of the Policy in 2020, as is evident from the composition of both governance bodies, which is in line with the Policy in terms of all aspects of diversity.
| 31 December 2020 | Male | Women | Total |
|---|---|---|---|
| Number of Management Board members | 3 | 2 | 5 |
| Proportion | 60% | 40% | 100% |
| Male | Women | Total | |
|---|---|---|---|
| Number of Supervisory Board members | 6 | 3 | 9 |
| Proportion | 66.66% | 33.33% | 100% |
Even following the appointment of new members to the Supervisory Board at the General Meeting in January 2021 and the appointment of the new members of the Management Board, the composition of the aforementioned body in terms of gender was unchanged.
Pursuant to the fifth paragraph of Article 70 of the Companies Act (ZGD-1), Telekom Slovenije hereby issues the following explanations:
Risk management and the system of internal controls represent integral elements of corporate governance within the Group. The use of risk management methodologies and a system of internal controls represents the basis for assessing risks, responding in a timely manner and reducing exposure to risks.
In connection with the financial reporting process, the system of internal controls ensures the appropriate management of risks, the ethical operations of companies, and reliable, timely and transparent external and internal financial reporting that is in accordance with the law, the International Financial Reporting Standards and regulations, and the guidelines and policies adopted by the Management Board. Information support is provided for the accounting process.
Internal controls are therefore linked with controls built into the IT infrastructure, which comprises controls over restrictions on access to data and applications, and controls over the accuracy and completeness of data capture and processing.
Established internal accounting controls are an integral part of the Group’s system of internal controls in the processes and organisational units of companies, and at all levels of operations.
The Telekom Slovenije Group strives to ensure an appropriate system of internal controls that includes precisely defined procedures, competences and responsibilities for specific tasks, as well as automated and manual controls in all processes that include accounting controls and procedures.
Internal controls comprise a description and the objectives of controls, and are regularly adapted to legislation, standards, processes, organisational changes, findings from self-assessments of internal controls, recommendations of internal and external audits, and best practices.
Those who implement internal controls are responsible for the consistent implementation of controls, the documentation of the functioning of internal controls and proposals for improvements. A report is drafted once a year on the self-assessment of internal controls at the parent company and subsidiaries to provide a comprehensive overview. That report is updated and supplemented annually.
The self-assessment of internal controls is based on confirmation of the establishment and functioning of internal controls. Implementation is systematic, planned and structured, and is appropriately documented.
Share capital of Telekom Slovenije
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 1.11 Share trading and ownership structure.
All shares are freely transferable.
There were two holders of a qualifying holding as set out in the Takeovers Act as at 31 December 2020: the Republic of Slovenia with 4,087,569 shares or 62.54% of the issuer’s share capital and Kapitalska družba, d. d. with 365,175 shares or 5.59% of the issuer’s share capital.
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 Telekom Slovenije’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.
With the listing of its shares on the prime market of the Ljubljana Stock Exchange, Telekom Slovenije undertook to comply with the relevant reporting standards. Telekom Slovenije once again provided investors with high-quality, timely, relevant and reliable information in 2020.
With the aim of ensuring that Telekom Slovenije Group companies and employees comply with the law, other rules, applicable recommendations and bylaws, the Telekom Slovenije Group’s Compliance 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 2.5.1 Compliance and anti-corruption.
Telekom Slovenije will continue to strive in the future to comply with and introduce the highest standards and best practices in the area of corporate governance, both at the parent company and at other Telekom Slovenije Group companies.
Cvetko Sršen,
President of the Management Board
Iztok Černoša,
President of the Supervisory Board
The Slovenian Directors’ Association hereby declares that it performed an external assessment of the corporate governance statement of Telekom Slovenije, d. d., for 2020 in the period 3 December 2020 to 17 March 2021 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 the Telekom Slovenije, d. d., for 2020 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.
Irena Prijović, MSc
Executive Director
Slovenian Directors’ Association
General information regarding shares
| Ticker symbol | TLSG |
|---|---|
| ISIN | SI0031104290 |
| Listing | Ljubljana Stock Exchange, prime market |
| Share capital (EUR) | 272,720,664.33 |
| Number of ordinary registered no-par value shares | 6,535,478 |
| Number of shares held in treasury | 30,000 |
| Number of shareholders as at 31 December 2020 | 8,865 |
The shares of Telekom Slovenije are listed on the prime securities market of the Ljubljana Stock Exchange under the ticker symbol TLSG. They are included in the SBITOP share index, and accounted for 5.4% of that index according to the quarterly review of SBITOP parameters conducted on 21 December 2020.
Since 19 June 2019, 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 dividend yield.
The SBITOP index stood at 900.37 points at the end of the year, representing a drop in value of 2.78% relative to the end of 2019. The ADRIAprime index also demonstrated a negative trend. Total turnover on the stock exchange was 31% higher in 2020 relative to the previous year, and amounted to EUR 399.09 million. Total market capitalisation of shares on the stock market was down by 2.1% relative to the end of 2019 to stand at EUR 6.91 billion at the end of the year.
Total turnover in Telekom Slovenije shares (including block trades) was EUR 16.65 million. The Company’s shares ranked seventh amongst all shares on the Ljubljana Stock Exchange in terms of turnover, excluding block trades. The TLSG share price closed at EUR 43.60 on the last trading day of 2020. The share price was down by 19.85% in year-on-year terms. The market capitalisation of the Company’s shares stood at EUR 284.95 million at the end of the year, and accounted for 4.12% of the market capitalisation of all shares on the stock exchange.
| Standard price in EUR | 2020 | 2019 |
|---|---|---|
| Highest daily price | 59.60 | 68.20 |
| Lowest daily price | 41.00 | 53.60 |
| Average daily price | 48.00 | 61.93 |
| Volume in EUR thousand | 2020 | 2019 |
|---|---|---|
| Total volume for the year | 16,650.20 | 14,750.12 |
| Highest daily volume | 572.82 | 962.77 |
| Lowest daily volume | 0.10 | 0.13 |
| Average daily volume | 66.34 | 61.20 |
— SHARE TRADING AND OWNERSHIP STRUCTURE
MARKETING AND SALES
ACCOUNTING REPORT
SUSTAINABLE DEVELOPMENT
NETWORK, TECHNOLOGIES AND IT
BUSINESS REPORT
| EUR Index | |
|---|---|
| 64 | |
| 62 | |
| 60 | |
| 58 | |
| 56 | |
| 54 | |
| 52 | |
| 50 | |
| 48 | |
| 46 | |
| 44 | |
| 42 | |
| 40 | |
| 995 | |
| 975 | |
| 955 | |
| 935 | |
| 915 | |
| 895 |
| 875 | 855 | 835 | 815 | 795 | 775 | 750 | 735 | 715 | 695 | 675 |
|---|---|---|---|---|---|---|---|---|---|---|
| 11. 12. 20 | 27. 11. 20 | 20. 11. 20 | 6. 11. 20 | 21. 10. 20 | 7. 10. 20 | 2. 9. 20 | 26. 8. 20 | 19 8. 20 | 2. 8. 20 | 26. 7. 20 |
| 5. 7. 20 | 28. 6. 20 | 32. 6. 20 | 30. 5. 20 | 23. 5. 20 | 9. 5. 20 | 23. 4. 20 | 5. 4. 20 | 22. 3. 20 | 8. 3. 20 | 22. 2. 20 |
| 7. 2. 20 | 24. 1. 20 | 17. 1. 20 | 3. 1. 20 | 30. 12. 20 |
| 31 December 2020 | 31 December 2019 | ||
|---|---|---|---|
| Closing price of one share on the last trading day of the period in EUR | 43.60 | 54.40 | |
| Book value of one share in EUR* | 90.35 | 90.37 | |
| Net earnings per share in EUR** | 3.82 | 0.14 | |
| P/BV | 0.48 | 0.60 | |
| Capital return per share during the period in %*** | -1 | 9.85 | -7.80 |
** Net earnings per share is calculated as the ratio of the Telekom Slovenije Group’s net operating profit for the accounting period to the average number of issued ordinary shares, excluding treasury shares.
*** The capital return per share is calculated as follows (share price on the final trading day of the period – share price on the final trading day of the previous period) / share price on the final trading day of the previous period.
Source: Ljubljana Stock Exchange, archive of share prices.
| Shareholder Category | % of Ownership as at 31 December 2020 | % of Ownership as at 31 December 2019 | Annual Change in Percentage Points (20/19) |
|---|---|---|---|
| Individual shareholders (domestic and foreign) | 13.74 | 13.25 | 0.49 |
| Slovenian corporate investors | 3.90 | 3.69 | 0.21 |
| Slovenian financial corporations and funds | 3.14 | 3.96 | -0.82 |
| Foreign corporate investors | 6.38 | 6.26 | 0.12 |
Telekom Slovenije had 8,865 shareholders at the end of the year, a decrease of 271. Of that amount, the number of individual shareholders was down by 257.
With a total stake of 93.32% at the end of the year, domestic investors were predominant in the Company’s ownership structure. The Company’s largest shareholder remained the Republic of Slovenia, together with Kapitalska družba, Slovenski državni holding, the First Pension Fund of Modra zavarovalnica and the latter’s guarantee fund. A total of 73.36% of the Company’s shares were directly or indirectly held by the State at the end of the year.
| Shareholder | % of Ownership |
|---|---|
| Kapitalska družba, d.d. | 62.54% |
| Slovenian Sovereign Holding, d. d. (SDH) | 5.59% |
| Citibank N.A. - fiduciary account | 4.25% |
| Raiffeisen Bank International AG (RBI) | 2.55% |
| PerspektivaFT, d.o.o. | 1.77% |
| Guarantee Fund of the First Pension Fund | 1.22% |
| Telekom Slovenije, d.d. | 0.73% |
| Lisca d.o.o. | 0.46% |
| Guaranteed fund of Pokojninskadružba A, Inc | 0.38% |
| 0.36% |
| Total | 79.85% |
|---|---|
| Republic of Slovenia | |
| Kapitalska družba, d.d. | |
| Slovenian Sovereign Holding, d. d. (SDH) | |
| Citibank N.A. - fiduciary account | |
| Perspektiva FT,d.o.o. | |
| Raiffeisen Bank International AG(RBI) | |
| Guarantee Fund of the First Pension Fund | |
| The Bank of New York Mellon- fiduciary | |
| Telekom Slovenije,d.d. | |
| Lisca d.d. Sevnica | |
| 62.54% | |
| 5.59% | |
| 4.25% | |
| 2.30% | |
| 1.22% | |
| 1.17% | |
| 0.82% | |
| 0.51% | |
| 0.46% | |
| 0.38% |
| Total | 79.24% |
|---|---|
The concentration of ownership, as measured by the ownership stake held by the ten largest shareholders, stood at 79.85% at the end of the year, an increase of 0.61 percentage points in year-on-year terms. The structure of the ten largest shareholders also changed.
Members of the Management Board and Supervisory Board held 306 TLSG shares as at 31 December 2020. The total number of shares was unchanged relative to the end of 2019.
| Name | Office | Number of shares | % of equity |
|---|---|---|---|
| Igor Rozman | Member of the Supervisory Board | 54 | 0.00083 |
| Drago Kijevčanin | Vice-President of the Supervisory Board | 212 | 0.00324 |
| Dušan Pišek | Member of the Supervisory Board | 36 | 0.00055 |
| Jana Žižek Kuhar | Member of the Supervisory Board | 4 | 0.00006 |
| Total | 306 | 0.00468 |
When TLSG shares are traded by representatives of the Company and when reporting on such transactions, Telekom Slovenije consistently complies with the applicable legislation and the Rules Restricting Trading in the Shares of Telekom Slovenije.
In relations with investors, the Company adheres to the principle of ensuring equal treatment, transparency, timeliness and the accuracy of information. It communicates regularly and comprehensively with existing and potential shareholders, and other interested parties.
The transparency of operations is achieved by consistently complying with the criteria and standards that apply to the issuers of shares on the prime market. The Company communicated with interested domestic and foreign investors and analysts at individual meetings and investor conferences, and via conference calls and email ([email protected], [email protected] and [email protected]).
Shareholders may send their proposals and suggestions via the investor relations email ([email protected]). In addition to regular communication, the Company carried out the following activities in 2020 in the scope of investor relations:
The financial calendar for 2021 was published in the Ljubljana Stock Exchange’s SEOnet system, and is also accessible on the Company’s website at Financial calendar - English - Telekom Slovenije. Any changes to the financial calendar are also published on the same websites.
Telekom Slovenije has a clearly defined stable dividend policy that facilitates a balance between profits for owners and the use of free cash flow for the financing of investments. Such a policy ensures long-term growth and the maximisation of value for owners.
At the 31st General Meeting of Shareholders held on 5 June 2020, shareholders adopted a resolution on the use of distributable profit for 2019. The Company paid shareholders gross dividends of EUR 3.50 per share on 19 June 2020. In accordance with the Common European Standards for Corporate Actions, dividend payments are carried out via KDD and its members, brokerage firms and banks.
The number of treasury shares has been unchanged since the last acquisition in 2003. The Company held 30,000 treasury shares on the final day of 2020, representing 0.46% of equity.
The changing circumstances did not slow our development. Just the opposite. In the context of stiff market competition, our aim is to be victorious and work with the best in order to provide users the best communication services and a superior user experience. We are fluid and prepared for different scenarios. As the best team, unshaken by challenges, we are focused on the changing needs of users.
The true strength of a team is seen in the most difficult of times.
Telekom Slovenije
The Telekom Slovenije Group disclosed revenues, expenses and net profit or loss from discontinued operations for Planet TV separately in the consolidated income statement for 2020. The sale of the Company’s 100% participating interest in Planet TV was completed on 30 September 2020.
Presented under the item net profit or loss from discontinued operations is a single amount in the income statement table, which is the sum of profit or loss from discontinued operations after taxes, and the effect of the loss recognised from the measurement of Planet TV at fair value and the sale of that company.
The Telekom Slovenije Group generated EUR 654.9 million in operating revenues in 2020, a decrease of 2% relative to the previous year. Sales revenue amounted to EUR 647.2 million. Revenues were affected in 2020 by measures linked to the declaration of two waves of the epidemic at the national level (the closure of Telekom centres, the lockdown and restrictions on the crossing of national borders) due to lower revenues from the roaming of users in the networks of foreign operators and from roaming by foreign users in our mobile networks, and the lower revenues of subsidiaries outside of the telecommunications activity. Revenues are also declining due to the optimisation of subscribers who have an increasing number of services included in their monthly subscription fee and the expected drop in revenues from traditional fixed telephony due to substitution with mobile and IP telephony. The proportion of new revenue sources accounted for by eHealth, energy and insurance services was up relative to 2019. Revenues from e-commerce services were up by 55% relative to the previous year. Driving down revenues in Kosovo was a decline due to the effects of the COVID-19 epidemic and the inability of ex-pats to return home.
Excluding the negative effects of the epidemic and taking into account additional measures to mitigate the negative effects thereof, the Telekom Slovenije Group’s operating revenues would have been EUR 22.9 million higher and exceeded planned revenues by 1%.
The operating expenses of the Telekom Slovenije Group amounted to EUR 612.3 million, a decrease of 3% relative to 2019. The historical costs of goods sold and costs of materials sold in connection with the Online Store were up by 4%, while labour costs were up by one percent due to the effect of the extraordinary conditions (payment of a crisis allowance). All other expenses were lower relative to the previous year.
Earnings before interest and taxes (EBIT) reached EUR 42.6 million in 2020, an increase of 3% or EUR 1.4 million relative to the previous year. Earnings before interest, taxes, amortisation and depreciation (EBITDA) totalled EUR 209.9 million at the Telekom Slovenije Group level, a decrease of 2% relative to 2019. The EBITDA margin (i.e. EBITDA as a proportion of sales revenue) was 32.4% at the Group level (2019: 32.3%). Taking into account an adjustment for the estimated effect of the coronavirus and measures to mitigate the negative effects thereof, EBITDA would have amounted to EUR 219.1 million, an increase of 2% relative to 2019.
Finance income and finance costs were both down relative to 2019 to stand at EUR 2.2 million and EUR 10.2 million, respectively. Following the calculation of income tax (including deferred taxes), the Telekom Slovenije Group generated a net profit of EUR 24.9 million in 2020, an increase of EUR 23.9 million relative to 2019. Contributing most to net profit in 2019 was the effect on Telekom Slovenije of the unfavourable decision of the International Court of Arbitration regarding the 34% participating interest in Antenna TV SL and events linked to that decision.
Taking into account an adjustment for the estimated negative effect of the coronavirus and measures to mitigate the negative effects thereof, net profit would have amounted to EUR 32.8 million. The Telekom Slovenije Group also uses the Alternative Performance Measures (APMs) defined by the ESMA to present its operating results (for more information, see point 2.9.3 Alternative performance measures).
Total assets amounted to EUR 1,227.8 million as at 31 December 2020, a decrease of 1.8% or EUR 22.4 million relative to the situation as at 31 December 2019.
Non-current assets totalled EUR 1,002.1 million, a decrease of 1.4% or EUR 14.2 million relative to the end of 2019. The proportion of the Group’s total assets accounted for by non-current assets rose to 81.6% (2019: 81.3%). Primarily non-current operating receivables and deferred costs were lower, while property, plant and equipment were up by 1.3% or EUR 8.3 million, mainly due to an increase in investments in the expansion of the fibre optic access network.
Current assets amounted to EUR 225.8 million, a decrease of 3.5% or EUR 8.2 million. Of that amount, deferred costs were down by EUR 14.4 million, while trade and other receivables were up by 6.1% or EUR 9.4 million.
Equity totalled EUR 590.5 million, similar to the level as at 31 December 2019, and represented 48.1% of total assets (2019: 47.2%).
Non-current liabilities in the amount of EUR 320.2 million represented 26.1% of total assets. They were down by EUR 137.4 million relative to the end of 2019, primarily due to the reclassification of issued bonds in the amount of EUR 100 million from non-current to current financial liabilities, and due to the repayment of a portion of raised long-term borrowings.
Current liabilities amounted to EUR 317.2 million, an increase of EUR 115.2 million relative to the end of 2019. The proportion of total assets accounted for by current liabilities rose to 25.8% (2019: 16.2%), primarily due to the reclassification of issued bonds from non-current to current financial liabilities, as those bonds mature in 2021, and on account of higher trade and other liabilities.
The Group recorded investments in fixed assets in the amount of EUR 160.3 million in outflows for investing activities.
The Group’s inflows from investing activities in 2020 primarily comprised consideration from the sale of the subsidiary Planet TV in the amount of EUR 5.0 million, proceeds from the sale of fixed assets in the amount of EUR 0.3 million and inflows from the repayment of loans and deposits in the amount of EUR 0.2 million.
The Group’s outflows from financing activities included the repayment of the short-term portion of long-term loans in the amount of EUR 30.8 million (syndicated loan) and the payment of interest on revolving loans, issued bonds and assets under lease in the amount of EUR 8.7 million. Based on the dividends approved by the General Meeting of Shareholders, the total amount of EUR 22.8 million was paid to Telekom Slovenije’s shareholders in June. In accordance with the entry into force of IFRS 16, payments of lease liabilities (excluding interest) in the amount of EUR 9.8 million were included in outflows from financing activities.
The Group’s inflows from financing activities included net inflows from revolving loans in the amount of EUR 1.0 million.
| Telekom Slovenije Group | Telekom Slovenije | in EUR thousand and % | 2020/31.12.2020*/** | 2019/31.12.2019*/** | Index 20/19 | 2020/31.12.2020 |
|---|---|---|---|---|---|---|
| 20/19 | 31.12.2018 | 31.12.2020* | |||||
|---|---|---|---|---|---|---|---|
| Sales revenue | 647,177 | 664,892 | 97 | 591,693 | 602,231 | 98 | |
| Other operating income | 7,694 | 5,938 | 130 | 5,254 | 2,954 | 178 | |
| Total operating revenues | 654,871 | 670,830 | 98 | 596,947 | 605,185 | 99 | |
| EBITDA | 209,882 | 214,994 | 98 | 174,281 | 175,467 | 99 | |
| EBITDA margin = EBITDA / sales revenue | 32.4% | 32.3% | 100 | 29.5% | 29.1% | 101 | |
| EBIT | 42,603 | 41,203 | 103 | 36,930 | 33,816 | 109 | |
| Return on sales = EBIT / sales revenue | 6.6% | 6.2% | 106 | 6.2% | 5.6% | 111 | |
| Net profit from continuing operations | 34,084 | 28,544 | 119 | 24,174 | 585 | - | |
| Loss from discontinued operations | -9,219 | -27,603 | 330 | 0 | - | ||
| Net profit for the financial year | 24,865 | 941 | - | 24,174 | 585 | - | |
| Assets | 1,227,839 | 1,250,211 | 98 | 1,226,566 | 1,223,536 | 100 | |
| Equity | 590,484 | 590,588 | 100 | 605,784 | 606,136 | 100 | |
| Return on equity (ROE) | 4.2% | 0.2% | -5.3% | 0.1% | - | ||
| Equity ratio | 48.1% | 47.2% | 102 | 49.4% | 49.5% | 100 | |
| Net financial debt | 378,377 | 402,861 | 94 | 390,067 | 419,602 | 93 | |
| NFD / EBITDA | 1.8 | 1.9 | 96 | 2.2 | 2.4 | 94 | |
| Investment in property, plant and equipment (CAPEX) | 173,045 | 184,835 | 94 | 164,680 | 133,505 | 123 | |
| EBITDA – CAPEX | 36,837 | 30,159 | 122 | 29,601 | 41,962 | 23 | |
| Ratio of (EBITDA – CAPEX) to EBITDA (cash margin) | 17.6% | 14.0% | 125 | 5.5% | 23.9% | 23 | |
| Number of employees as at the last day of the period | 3,392 | 3,387 | 100 | 2,165 | 2,182 | 99 | |
| Investments as a proportion of operating revenues | 26.4% | 27.6% | 96 | 27.6% | 22.1% | 125 |
** The year 2019 is adjusted for a prior-period correction in the financial statements of IPKO and thus of the Telekom Slovenije Group. Definition can be found in point 2.9.3 Alternative performance measures. More information can be found in the Accounting Report beginning on page 200.
The criterion for segment reporting is the registered office where an activity is performed. The Telekom Slovenije Group thus presents its operations in two segments: Slovenia and other countries. More details are provided in the Accounting Report in point 6. Segment reporting.
20GRI GS 102-7, 201-1, 102-10
| in mio EUR | NFD / EBITDA | |
|---|---|---|
| 2020 | 450 | |
| 2021 | 400 | |
| 2022 | 350 | |
| 2023 | 300 | |
| 2024 | 250 | |
| 2025 | 200 | |
| 150 | ||
| 100 | ||
| 50 | ||
| 0 | ||
| 2.0 | ||
| 1.9 | ||
| 1.8 | ||
| 1.7 | ||
| 1.6 | ||
| 1.5 | ||
| Principal repayment |
Through the implementation of the Telekom Slovenije Group’s financial policy, we ensure the financial stability of the entire Group. We achieve this through successful operations, the active planning and management of cash flows, ensuring the appropriate maturities and the diversification of financial debt, financing within the Group, the optimisation of working capital and the management of financial risks.
For the purpose of ensuring a high level of liquidity, the Group has open short-term credit lines at banks that are regularly rolled over. The Group’s liquidity reserves amounted to EUR 98.5 million at the end of 2020, and took the form of approved but undrawn long-term and short-term revolving credit lines. Indebtedness is relatively low at the Group level. The net financial debt to EBITDA ratio was 1.8 at the end of 2020. The Group’s total financial liabilities amounted to EUR 387.1 million at the end of 2020, and primarily comprised a long-term syndicated loan in the amount of EUR 215.4 million, five-year bonds in the amount of EUR 100 million and liabilities from finance leasing in the amount of EUR 69.3 million.
Net financial debt (NFD) of the Telekom Slovenije Group
The Group regularly settles its liabilities to creditors. A total of EUR 30.8 million in long-term loans was repaid in 2020.
| 31.12.2018 | 31.12.2019* | 31.12.2020* |
|---|---|---|
| Financial liabilities with variable interest rate | 100 | 90 |
| Financial liabilities with fixed / hedged interest rate | 80 | 70 |
| Long term financial liabilities | 100 | 90 |
|---|---|---|
| Short term financial liabilities | 80 | 70 |
flexibility. The maturity of financial liabilities shifted somewhat to current financial liabilities in 2020, as five-year bonds in the amount of EUR 100 million mature in 2021. The Group will refinance the latter through new long-term sources, while it also signed an agreement in December 2020 with the European Investment Bank (EIB) on a long-term loan in the amount of EUR 100 million, which will again restrengthen the stability of the maturity structure of financing. The loan from the EIB had not yet been drawn down in 2020.
Loans included in the balance at the end of the year bear variable interest rates linked to the 6- and 3-month EURIBOR. The weighted mark-up on the variable portion of the interest rate on all loans within the Group stood at 151 basis points at the end of 2020. The coupon rate on issued bonds is fixed at 1.95%. Fixed or hedged interest rates account for 61.8% of interest-bearing financial liabilities at the Group level.
A detailed description of financial risk management is found in section 2.4 Risk management and in the Accounting Report in point 45. Financial risk management.
Creditor banks require the maintenance of the values of financial commitments and indicators set out in loan agreements. Failure to fulfil those commitments could result in the early maturity of loans. All financial commitments at the Group level were met as at 31 December 2020.
CPE- Customer equipment
Customer solutions
IT, internal ICT infrastructure, R&R projects
IFRS 16
Other
| 28.8% | 8.6% | 1.8% | 44.7% | 8.6% | 7.4% |
|---|---|---|---|---|---|
The Telekom Slovenije Group earmarked EUR 173.0 million for investments in fixed assets in 2020, a decrease of 6% or EUR 11.8 million relative to 2019. Of the aforementioned amount, 95.2% of all investments or EUR 164.7 million was earmarked for investments by Telekom Slovenije, an increase of 23% relative to the previous year. The remainder was earmarked for investments in development by subsidiaries.
Here is should be noted that in 2020, IPKO corrected the 2019 financial statements for an error as the result of the recognition of an agreement on the leasing of TV channels for broadcasting in Kosovo. That agreement was concluded in May 2019 and includes binding conditions for the first three years, while the company recognised an intangible asset in the amount of discounted future payments for three years in 2019. For more information, see point 41 of the Accounting Report.
The altered conditions due to work from home and distance learning resulted in increased network traffic and thus an increase in investments to ensure capacities in both the mobile and fixed networks. Representing a particular challenge due to the closure of borders and the adoption of measures to prevent the spread of the pandemic were ensuring materials and equipment, and an adjusted regime for implementing works to realise investments.
Through investments in the construction, modernisation and development of networks and services, we are creating a platform to attract new subscribers, retain existing subscribers and new revenue sources, and maintain a high level of quality. The majority of investments in 2020 were earmarked for the expansion of the fibre optic access network, which will provide users a superior user experience in terms of broadband content and high-speed internet access. Investments were also earmarked for the modernisation of the mobile network and the establishment of the first national fifth generation (5G) mobile network, and for the development of new services and the further optimisation of operations. For more details, see section 2.8 Network, technologies and IT.
| EUR thousand | 2020* | 2019* | Index 20/19 |
|---|---|---|---|
| Telekom Slovenije | 164,680 | 133,505 | 123 |
| Other companies in Slovenia | 3,246 | 3,216 | 101 |
| IPKO – Kosovo | 8,728 | 56,910 | 15 |
| Other companies abroad | 1,365 | 4,627 | 30 |
| Exclusions and adjustments | -4,974 | -13,423 | 37 |
| Telekom Slovenije Group | 173,045 | 184,835 | 94 |
Excluding Planet TV for 2020 and 2019. Adjusted for an error at IPKO. For more information, see point 41 of the Accounting Report. Correction of an error from the previous year.
The risk management framework is an integral part of our corporate governance. It is formulated to reflect our structure and corporate culture. We continuously strive to raise awareness, which facilitates the identification and assessment of risks, and the management of those risks through the appropriate measures, reporting and monitoring. We have defined four types of risks:
For the Telekom Slovenije Group, risk means any uncertainty regarding an event that may have a negative impact on the achievement of objectives, and is incorporated into all of the business processes, decisions and culture of the Group. Opportunity means a positive impact on a company’s ability to achieve business objectives.
The objectives of risk management are the support of established objectives, a focus on opportunities and awareness about risks. Risk management is governed by the Risk Management Policy, which is binding for all Group companies. It includes comprehensive risk management objectives, core principles, and the competences and responsibilities of those who perform risk management activities. The risk management framework facilitates the systematic and structured identification and assessment of risks, and the implementation of measures to mitigate those risks that could affect the values and objectives of the Group.
The Internal Audit Service’s audit activities include an audit of risk management and a self-assessment of internal controls. The Management Board is briefed continuously on risk assessments, the findings of internal audits and other reviews of operations. It responds to risk assessments and findings accordingly through a range of measures to manage risks and ensure compliance. It reports to the Supervisory Board and the latter’s committees regularly with regard to key risks, findings and adopted measures.
The risk management framework comprises three lines and the risk management process. The three-lines model provides a transparent and effective way of communicating with certain powers and responsibilities.
The risk management process facilitates a dynamic way to identify and assess, manage, report on and monitor risks. Through that process, we ensure the achievement of objectives by balancing risks and opportunities. Our aim is to promote a more entrepreneurial approach to opportunities and the benefits that accompany them.
The result of the risk identification process is risk assessment. Risk owners assess the level of risk taking into account measures and internal controls. Risks are assessed based on the effect and probability of an event. Subsidiaries report to the parent company with regard to all risks. The Company also monitors risk exposure, which is calculated in accordance with an internal risk quantification methodology. We strive for the proactive mitigation of exposure to risks. That process includes a strategy for responding to risks, and for the systematic and comprehensive quarterly reporting on risks. The assessment of risks and opportunities is also the responsibility of risk owners who formulate risk management measures.
Risks are reported quarterly to the Supervisory Board’s Audit Committee for both the parent company and subsidiaries. The risk officer reports on key risks to the Risk Committee, which meets quarterly or more frequently, as required. That committee also discusses changes in the risk management policy and methodology, and opportunities. The risk management and internal control officer reports to the Internal Controls Committee regarding the self-assessment of internal controls within the Group. That committee also discusses changes in the methodology used in the self-assessment of internal controls.
| Supervisory Board | Audit Committee of the Supervisory Board | Management Board | Risk Committee | Internal Controls Committee |
|---|---|---|---|---|
| OU responsible for compliance and risk management | Risk owners | Internal audit | Risk management process | Monitoring of risk |
| Reporting of risk | Assessment of risk | Management of risk | Identification of risk | |
| 4 sessions | 6 sessions | 3 sessions |
The risk management framework is continuously improved. We actively work with risk owners in the scope of quarterly risk assessments, in the self-assessment of internal controls and in the development of different risk assessment models. In the process of drafting the Telekom Slovenije Group’s Strategic Business Plan, we also assess risks, review measures to manage those risks and monitor trends. These include risks linked to the market and competition, risks relating to the confidentiality, integrity and availability of networks, including cyber security risks, regulatory framework, risks in connection with disruptions in the supply chain, employees and pressures for change that derive from new technologies and rapid development.
Risks are recorded in a risk register, while the catalogue of risks includes information that is important for the assessment of risks and exposure to risks. Internal controls are similarly included in an internal controls register, while the associated catalogue includes the characteristics of internal controls and a self-assessment thereof. In 2020, all Group companies applied the same bases for their register and catalogue of risks and internal controls. The register and catalogue are the main source of information for an overview of risks and internal controls, and for reporting purposes.
In addition to the individual assessment and monitoring of risks, we also take into account risks collectively to improve the understanding of the entire range of risks at the Company. By identifying the link between risks, we also carried out the analysis of a selected scenario, through which we verified the mutual link between the impact and consequences of risks, and the strategy of implementing measures to manage those risks.
We updated the Risk Management Policy, the methodology for assessing risks and opportunities, and reporting on and the methodology for the self-assessment of internal controls. Those documents apply to the entire Group. Significant changes also relate to the standard risk assessment methodology.
The parent company’s Risk Committee also discusses risk assessment models that are integrated into risk management processes and procedures. Those models also include a risk assessment that derives from the self-assessment of internal controls, which is carried out once a year for all Group companies. The risk management and internal control officer maintains a list of risk assessment models used. Those models are continuously updated and adjusted to the requirements and needs of a company.
Responsibilities in the risk management process are clearly defined, while a training and awareness-raising programme help ensure that we possess the appropriate competences, as the environment, and methods and measures for managing risks are constantly changing. We organise training events at the Group level every year in cooperation with the Internal Audit Service and compliance officers.
Both previously identified risks and risks that are only emerging are important for the Telekom Slovenije Group. We therefore monitor risks in the environment and sector, risk trends and the latest developments in specialist fields.
Given events in the environment in connection with COVID-19, all Group companies have performed an additional risk assessment. The starting points for risk assessment under specific scenarios are the same for all Group companies. The risk assessment due to the impact of COVID-19 is separate from the general risk assessment, and only includes factors that are connected with COVID-19. The assessment of risks due to the impact of the pandemic are updated quarterly.
| Probability | Impact | |||
|---|---|---|---|---|
| Low | Moderate | High | Very high | |
| Very high | ||||
| High | ||||
| Moderate | ||||
| Low | ||||
| Almost certain | ||||
| Very possible | ||||
| Possible | ||||
| Low probability |
The tables below present key risks during the final quarter of 2020 and the trend relative to the same period in 2019. Trends are indicated as follows:
On the Slovenian market, Telekom Slovenije faces stiff competition, regulatory effects, price-sensitive users, and the migration of voice traffic to OTT platforms. Users demand an increasing number of high-quality services at a low price, while consumer habits are also changing. The market is saturated, which means there is very little manoeuvring room for attracting new users. The management of such risks requires the regular performance of activities to ensure competitiveness, control over regulatory measures, a targeted and active market approach, the provision of high-quality and readily available services, the continuous adaptation of business solutions, the adaptation of the portfolio, and the constant introduction of the latest developments for specific groups and segments of users.
| Risk | What is the risk? | What is the effect? | How is the risk managed? |
|---|---|---|---|
| Diminishing profitability of subscribers and services – B2C | Aggressive competition in the development of services and package offers, reduction of the general level of prices of services, rapid changes to the portfolio and unlimited packages. | Loss of revenues. Lower margin. | Competitive range of products and the introduction of innovative offers. Lean business model that includes the simplification of services and a digitalisation programme to improve the quality of services, and the speed/agility of processes. Product lifecycle management. |
| Loss of subscribers – B2C | Loss of subscribers due to migrations between operators. Changing user requirements. | Loss of market share. Loss of revenues. | New range of products and programme to maintain subscribers. Target-oriented approach by subscriber segment. Improvement of the user experience, as seen in the increased transparency and simplicity of the portfolio, which distinguishes us from the competition. Use of advanced programmes to analyse data. Strengthening of online transactions. |
| Drop in revenues due to regulatory obligations – wholesale market | New and/or additional regulatory obligations on regulated markets. | Loss of revenues. | Active participation in market analysis and supervision processes by the regulator, and the monitoring of market development. Adaptation of the wholesale portfolio in accordance with regulatory obligations. |
| What is the risk? | What is the effect? | How is the risk managed? |
|---|---|---|
| Loss of subscribers – B2B | Aggressive competition and switching of subscribers between operators. New technologies and price erosion. | Strategic partnerships for innovative solutions in the following areas: Internet of Things, smart cities, 5G mobile ICT solutions, healthcare. Programme to maintain subscribers. |
| Diminishing profitability of subscribers and services – B2B | Migration of traffic to OTT. Increased scope of services at a lower price. | Integrated solutions for the ‘cross sell’ and ‘upsell’ programme. Improved offer and introduction of a new offer that takes into account changing user requirements. Reduced development time for new solutions. |
The COVID-19 pandemic has resulted in the increased needs of users for reliable and secure telecommunication services and computer equipment. Adjustments are being made on the B2B market due to the shutdown of certain economic sectors (e.g. catering and tourism), and the suspension and/or delay of some previously agreed major ICT transactions, while companies in specific sectors are encountering problems in their operations.
The closure of points of sale has had a major impact on sales of merchandise, which cannot be offset by increased sales via the Online Store and the transformation of points of sale into pick-up points. Factors in lower revenues and a falling margin include the restricted movement of the population and travel limitations, which has reduced the number of foreign users who roam in Telekom Slovenije’s mobile network, while the number of Telekom Slovenije users in the networks of foreign operators is also down. Measures include the monitoring of the sales margin of international wholesale services, the conclusion of longer-term agreements with international operators and an agreed traffic volume, and the proactive search for new destinations and revenues.
solutions, covered the special needs of government bodies and facilitated the rapid implementation of video identification services, provided private users free mobile data transfer quantities and upgraded the TV programme offer with children’s, documentary, popular science, film and sports content, free of charge.
For Telekom Slovenije, all of the efforts made during the pandemic also represent an opportunity for the more rapid development of advanced and digitally supported solutions for products and services due to social shifts. Our priority task is focusing on the user, for whom we facilitate the integration and accessibility of content and applications. For us, our experience and the digital transformation facilitate efficiency, rapid development and partnerships. As a company, we have responded to the pandemic in a socially responsible manner and ensured the connectivity of users.
We regularly monitor the dynamics of the financial environment that are reflected in various types of risks to which we are exposed in operations. We actively monitor liquidity, credit and interest-rate risks. Various financial risk management models and derivatives are used to reduce exposure to specific types of risks.
Telekom Slovenije manages liquidity risk through the regular management and planning of cash flows for different time periods, by ensuring the appropriate maturities and the diversification of financial debt, and through financing within the Group and the optimisation of working capital and cash. We manage short-term imbalances in cash flows using liquidity reserves in the form of short-term credit lines.
Credit risk is managed by Telekom Slovenije through the active monitoring of the operations of customers and their credit ratings, and by limiting maximum allowable exposures. We further hedge against the risk of the deteriorating financial position of customers through credit insurance and by regularly monitoring the appropriateness thereof. Monitoring of the settlement of contractual obligations and the active recovery of past-due debt are also elements of the systematic credit risk management tool.
We manage against interest-rate risk using interest-rate swaps.
We manage credit risk in connection with receivables from loans to subsidiaries by including various collateral instruments in loan agreements, while we regularly monitor the operations and liquidity of subsidiaries.
| Risk | What is the risk? | What is the effect? | How is the risk managed? |
|---|---|---|---|
| Subscriber credit risk | Increased proportion of past-due receivables. | Scope and structure of receivables. | Subscriber credit assessment, credit check process, obtaining credit insurance. Recovery of past-due receivables. |
| Level of risk | Trend | Long-term solvency and capital adequacy. | Additional borrowing requirements. |
| Reduced financial flexibility. | Higher net debt. | Creation of a structure of financing for the fulfilment of financial commitments from loan agreements. Appropriate debt-to-equity ratio. | Level of risk |
| Trend | Impact of the COVID-19 pandemic | A comprehensive approach to managing liquidity risk and the implementation of measures in other areas of operations have contributed to the fact that the pandemic has not had a significant impact on the Company’s liquidity. | To that end, we adopted additional measures aimed at the optimisation of costs and the mitigation of the effects of the pandemic on the Company’s cash flow. |
| In managing liquidity, we follow a conservative approach and ensure the best possible composition of sources of financing. | We carefully monitor the economic situation and business factors, including the dynamics of received payments. | We extended the payment deadlines of customers’ past-due liabilities by amending recovery procedures. | Telekom Slovenije regularly monitors and supervises the operations and liquidity position of subsidiaries. |
| If the negative effects of the pandemic will affect subsidiaries’ ability to service their loans, activities will be implemented with the aim of refinancing loans or amending loan repayment schedules. |
The Agency for Communication Networks and Services of the Republic of Slovenia (AKOS) began preparing a multi-frequency public tender with a public auction of frequencies for the 5G network. The AKOS published an informative memorandum on 3 August 2020 regarding the multi-frequency auction, followed by the public tender in December 2020. The auction is expected to begin at the end of March or beginning of April 2021.
Telekom Slovenije processes a large quantity of personal data relating to users, business partners, employees and other stakeholders. We thus encounter risk in connection with that processing. Of significance in terms of that risk is 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, and repealing Directive 95/46/EC (General Data Protection Regulation), which entered into force on 25 May 2018 and brought increased awareness of both users and the general public regarding the protection of the data.
We ensure compliance with the requirements of the aforementioned regulation through the continuous monitoring, updating and improvement of personal data processing and internal control processes. We also monitor the drafting of new regulations in the area of personal data protection at the national level (e.g. the ZEKom-2, ZVOP-2 and ZEISZ) and EU level (e.g. the e-privacy directive) that will impact the processing of data during the provision of the Company’s services.
| What is the risk? | What is the effect? | How is the risk managed? |
|---|---|---|
| Risk of regulatory pressures on the markets of fixed and mobile electronic communications | New models for setting prices and additional obligations for regulated services. Higher costs and loss of revenues. | Communication with regulatory bodies. Active participation in market analyses, and in the adoption of new laws and other acts. Implementation of issued regulatory decisions and compliance. Monitoring of changes in the EU regulatory framework. |
| Compliance in the area of personal data protection | Breach of personal data protection. Loss of users’ trust. Payment of fines and claims for damage. | Implementation of internal controls for maintaining records of personal data, the handling of personal data and assessments of effects. Cooperation and controls in the updating of rules and conditions for the processing of personal data in respect of new services. Employee training in the area of personal data protection. |
Remote operations and measures limiting gatherings of people in order to control the pandemic bring new challenges in personal data protection. At the same time, increased access to data regarding users via digital communication channels offers numerous opportunities for adapted solutions or new business models. One precondition for the successful application of new solutions is users’ trust in a high level of personal data security. We therefore take all legal requirements into account when adapting operations and/or services. In connection with managing the epidemic in Slovenia, several proposals were put forward regarding the use of mobile operators’ data and how mobile operators could help in preventing the spread of COVID-19. We are thus monitoring those proposals.
Telekom Slovenije dedicates a great deal of attention to managing operational risks associated with ICT networks, services and devices, and to the management and development of employees in this area. The complexity of comprehensive management is increasing due to the development of technologies and ICT services, the growing demands of applications and devices, and on account of the regulatory framework.
We manage risks through the development of access and core systems, and BSS and OSS, by improving operational efficiency and by providing support for new business opportunities.
In the scope of business continuity, we ensure the necessary topologies and capacities of the ICT infrastructure and services, and of transmission, backbone and access segments. The risks associated with the malfunctioning of connections and services provided by other entities are managed by introducing processes to monitor and report on SLA indicators on leased networks, and by standardising requirements vis-à-vis network providers for newly leased networks. We implement updates and increase capacities through redundancy in those network segments where we have identified increased functional and security-related risks.
Based on an assessment of risks in the area of ICT security, we continuously develop systems for monitoring technologies and anomalies in the ICT infrastructure and services, and conduct internal and external penetration testing. We have in place the Cyber Security Operation Centre. We manage risks through the implementation of the security policy, by identifying security threats and vulnerabilities, and by spreading the security culture to employees and users.
We manage risks in connection with procurement processes through a centralised procurement function, a standard process for the implementation of procurement procedures and a methodology for assessing the risk of cooperation with suppliers. To that end, we monitor compliance with contractual provisions. The Supplier Code falls into this category of activities.
We are also exposed to human resource risks, in particular the risk of retaining or recruiting key staff and employees with crucial knowledge and certificates, as there is increased demand for professionally qualified employees on the labour market. In that respect, we focus on the systematic development of employees and career planning, the internal transfer of knowledge and the upgrading of advanced development-training programmes, while ensuring employee motivation and remuneration systems. By providing scholarships to young people, we offer them the opportunity to make contact with the latest technologies and top experts, and facilitate their development. We carry out the measurement of organisational vitality, and implement activities to enhance the employer brand.
Operational risks include sustainability risks, such as environmental risks and risks in connection with workplace safety. We have also identified reputation risk, which includes risks in connection with managing stakeholder relations.
| Risk | What is the risk? | What is the effect? | How is the risk managed? |
|---|---|---|---|
| Functioning of systems – ICT security | Threats to the confidentiality, integrity and availability of networks, systems or data that are the result of a cyber-attack. | Loss of revenues and reputation, higher costs and user dissatisfaction. | Strict implementation and updating of the security policy and processes and planned works, and internal and external assessments. Strengthening of the employee structure of the Operational Service Centre, processes and tools. Focus on user security. Adequate external insurance. |
| Level of risk | Trend | ||
| Functioning of systems – backbone network | The suspension or limited performance of the key services of domestic, international and transit traffic due to the failure of network elements or the MPLS-VPN or ICT infrastructure; inability to fulfil SLAs. | Loss of revenues and reputation, higher costs and user dissatisfaction. | MPLS-core management strategy, monitoring of the functioning of the infrastructure and capacity utilisation rate, continuous improvements to operational and security procedures and knowledge, and hiring of additional employees. Comprehensive information security management system (ISMS), and business continuity management in the event of emergencies. |
| Level of risk | Trend | ||
| Risks associated with the unfavourable results and conditions of the frequency auction | Conditions of the frequency auction and the unfavourable results thereof. | Higher price to purchase frequencies. | Active cooperation and the submission of comments and recommendations regarding published documents, and monitoring of the allocation of the frequency spectrum in the EU. Thorough preparations for the auction with a team of experts. |
Dependence on suppliers. Ability of suppliers to execute transactions. Breach of contractual provisions by suppliers. Higher costs. Loss of reputation.
Centralised purchasing. Standardised procurement process. Assessment of supplier-related risks. Monitoring of the cooperation of strategic partners, and supplier assessment. Supplier Code of Conduct.
Departure of key employees, and employees with crucial knowledge and certificates. Costs in connection with the training of new employees. Lack of competences.
Focus on employee development and the internal transfer of knowledge. Employee education and training, and employee remuneration and motivation system. Internal mobility of employees and the acquisition of new skills and competences. Company scholarships.
in the context of increased communication with suppliers, ensure buffer stocks of strategic materials, have established at least two sources of supply, and make timely procurements due to possible supply disruptions and delays.
We also ensure compliance with security and preventive measures for employees, and ensure remote work. As a telecommunications operator and employer, we responsibly adopt measures to protect employees and users, and to ensure the continuous functioning of services, which for many represent the only form of communication in a period of limited social contacts. Through our responsiveness, agility and implemented measures, we have demonstrated that we are a driving force of digitalisation in society and that we are enhancing our resilience. Digitalisation has once again proven to be the backbone of the economy and society.
The graph presents levels of risk at Telekom Slovenije by risk category during the final quarter of 2020 and a comparison with target levels of risk. Target levels are in line with risk management efforts at the Company, and are reviewed and defined once a year.
| Risk | What is the risk? | What is the effect? | How is the risk managed? |
|---|---|---|---|
| Human resource risks | Lack of experts for project implementation. | Higher costs and impact on project implementation. | HR strategy focused on retaining and recruiting staff. Employee motivation. |
| The risk in connection with the impact of the COVID-19 pandemic includes pressure to reduce the scope and/or prices set out in previously signed agreements. Measures include communication for the purpose of coordinating project delays. The company sees an opportunity in the development of adapted solutions or new business models. | |||
| GVO | Risks associated with rising prices of construction services | Rising prices of subcontractors for construction services on account of economic growth and an increase in demand for construction works. | Coordination with subcontractors and the continuous review of implemented works. Adaptation of the work organisation and processes. |
| Risks in connection with the impact of the COVID-19 pandemic derive from restrictions on the implementation of investment works on the market, restrictions on own resources and the resources of subcontractors, disruptions in the supply of input construction materials and the inability to hire new employees. Measures were adopted to ensure occupational health and safety and the rotation of implementing teams. The company sees an opportunity in the implementation of construction works in the accelerated expansion of the network. | |||
| TSINPO | Human resource risks | Inappropriate employee structure. | Diminishing incentives for the employment of disabled persons. |
| Risks due to the COVID-19 pandemic have resulted in a drop in demand for cardboard products, the generation of additional costs and delays in product launches. In progress are active communication with customers, care for employees and the exploitation of state aid to mitigate the impact of the epidemic. The company sees an opportunity in the acceleration of the digitalisation and automation of operations. |
What is the risk? What is the effect? How is the risk managed?
| Risks associated with achieving planned revenues | Reduction in the scope of advertising. | Loss of revenues. | Conclusion of annual agreements, promotional prices, new advertising products. |
|---|---|---|---|
| Level of risk | Trend | ||
| Risks associated with the sale of the company | Disclosure of documentation regarding operations. | Departure of employees. | Appropriate organisation of processes. |
| Loss of revenues. | Conservative approach to the disclosure of documentation. | Employee motivation. | Organisation of processes. |
| Level of risk | New |
Risks in connection with the impact of the COVID-19 pandemic are linked to a reduction in the scope and cancellation of previously approved advertising campaigns and projects. Measures relate to delays in campaigns and projects, and additional negotiations, the attracting of new customers and new forms of advertising. The company sees an opportunity in new digital work methods.
What is the risk? What is the effect? How is the risk managed?
| Risks associated with adverse weather conditions | Loss of salt production due to adverse weather conditions. | Low salt production, insufficient inventories and drop in number of visits to the spa. | No insurance product to transfer risk. |
|---|---|---|---|
| Level of risk | Trend |
Risks due to the COVID-19 pandemic are having an additional impact on operations, as sales in the company’s retail outlet network, and visits to the Lepa Vida Spa and the nature park are highly dependent on tourists. Opportunities for the company lie in new sales programmes and the adaptation of the infrastructure to climate change.
What is the risk? What is the effect? How is the risk managed?
| Revenue-loss risk – mobile segment | Use of OTT applications and WiFi networks. | Optimisation of the use of prepaid services. | Reduction in number of users. |
|---|---|---|---|
| Loss of revenues. | Monitoring of market development, active adaptation of the portfolio and appropriate market approaches. | Improved user loyalty. | |
| Level of risk | Trend | ||
| Risk of the loss of prepaid users – fixed segment | Aggressive competition, lower prices of competitors, migrations of users of prepaid services to other operators. | Loss of revenues. | Reduced number of subscribers. |
| Innovative offers to attract new users and maintain existing users. | Adaptation of offer. | Level of risk | Trend |
| What is the risk? | What is the effect? | How is the risk managed? |
|---|---|---|
| Diminishing profitability of subscribers and services – fixed segment | Aggressive competition, low prices and migration of users to more affordable packages. | Lower margin. Monitoring of market development. Additional benefits for users, and an ‘up sell’ and ‘cross sell’ offer. |
| Revenue-loss risk – roaming | Reduced scope of services with the transition to the new +383 code in Kosovo. | Loss of revenues. Negotiations with foreign operators with regard to prices and retail packages linked to Kosovo. Appropriate market approaches. |
| Risks associated with ensuring high-quality programme content | Change in programme content. | Lower revenues. Constant monitoring of broadcast content. Regular communication with suppliers. |
| Risks associated with the payment of copyright fees for the transmission of programmes via the cable network | Additional fees paid to the collective association for programme broadcasting. | Higher costs. Negotiations with government bodies regarding the level of fees. |
| Compliance with tax legislation in terms of licence fees | Additional fee for the broadcasting of channels, and the use of hardware and software. | Higher costs. Preparation of documentation. Communication with the tax authorities. Inclusion of a tax consultant. |
| Risks associated with the payment of additional fees for the use of the infrastructure in municipalities | Additional fees for the fixed and mobile infrastructure in municipalities. | Higher costs. Use of all legal remedies. |
The pandemic is affecting operations, as it has led to a sharp drop in the use of mobile services in Kosovo due to the lockdown and restrictions on the operations of companies. That drop in use has led directly to a drop in revenues and profit on account of the prepaid market. That impact can also be felt in the fixed segment where users are opting for the less expensive products of the competition. IPKO is faced with lower revenues and the effect on margins due to restricted migrations and travel, and the inability of ex-pats to return to Kosovo, as well as the reduced number of foreign users who roam in IPKO’s mobile network.
retail outlets. Certain investments were postponed to the next year in order to ensure the sustainable financial position of the company. The company is investing in the development of a new portfolio in order to improve the customer experience. The company also sees further changes and opportunities in digitalisation and the migration of sales of services to the web.
The Telekom Slovenije Group has identified compliance as a crucial element for long-term successful operations. By ensuring compliance, we safeguard the rights and legitimate interests of the Company, senior management, employees and other stakeholders, while contributing to the strengthening of integrity and the Company’s reputation. In the scope of the business continuity management system, we adopted the Integrity Plan of Telekom Slovenije in 2020 as an additional mechanism for operations that are compliant with legislation, other rules, applicable recommendations, internal regulations and ethical principles.
We identify and mitigate risks through the compliance management system. To that end, special emphasis is placed on measures in the area of competition law, the prevention of corruption, conflicts of interest, personal data protection and the prevention of money laundering and terrorist financing. Playing an important role in that process are the prevention of irregularities through preventive actions, and rapid and effective measures in the event of identified breaches.
Telekom Slovenije has appointed officers for specific areas of compliance. Those persons perform their functions independently, while compliance is also governed by the company’s internal acts. This area is primarily governed by the Telekom Slovenije Group’s Compliance Management Policy, which was updated in 2020 and applies to all Group companies.
Through the Code of Ethics of the Telekom Slovenije Group, we set out the basic principles of operations and the responsibilities of employees in mutual relationships, and in relationships with the users of services and all other stakeholders. Certain areas of the aforementioned code are also defined in more detail in other internal acts. The content of the code is verified and adapted as necessary by the compliance and integrity officer.
In 2020, Telekom Slovenije signed the Commitment to respect human rights in the course of operations, which is part of the National Action Plan of the Republic of Slovenia on the Respect of Human Rights in Business. We thus made an additional commitment to respect human rights in the business process and to prevent potential negative effects on human rights.
We strive for compliance along the entire supply chain. To that end, we adopted the Code of Conduct for the Suppliers of the Telekom Slovenije Group in 2018, and included the contents of that code in business relationships with suppliers. The code binds suppliers to act in accordance with valid national and international regulations in their operations, and to respect the highest standards of ethics and business conduct.
Telekom Slovenije places transparent business and personal connections at the heart of managing conflicts of interest. Rules Governing Conflicts of Interest were updated in 2020 with the basic rules of lawful lobbying, while those rules emphasise the importance of avoiding conflicts of interest.
and exercising personal interests. They define the actions expected of employees to prevent conflicts of interest from arising, the obligation of management staff to submit annual statements regarding conflicts of interest, and the role of the Compliance Committee, which assesses employee notifications (regarding the disclosure of circumstances that could result in the existence of potential conflicts of interest) via an online application.
With the Rules on the Acceptance and Offering of Gifts and Invitations, we defined in more detail rules regarding the acceptance and offering of gifts and invitations in the course of daily transactions with business partners, public servants and officials. We thus further protect Telekom Slovenije Group employees from erroneous assessments regarding the acceptance and offering of gifts and invitations, which could result in financial damage, and damage to the reputation of management, employees or the company.
As a dominant operator on specific markets, Telekom Slovenije dedicates special attention to the area of competition law. Through the Guidelines on Assuring Compliance with Competition Law, we defined procedures and internal controls for assuring compliance with competition law, and provided various instructions to employees on how to act in certain situations. To that end, we also organise regular employee education and training.
Using different channels, employees and other stakeholders may anonymously and confidentially report breaches of the Code of Ethics and other internal acts, or potential illegal conduct. A system for receiving, handling and investigating reports was established at the Group level in 2014, and is defined in the Rules on the Management of Reports and Protecting Whistleblowers. The compliance and integrity officer is responsible for handling reports and proposing the adoption of measures in the event breaches are identified.
Telekom Slovenije addresses potential risks associated with corruption in sponsorship and donation activities through the Rules on the Treatment and Approval of Sponsorships and Donations. The rules in that regard are also in line with the Code of Ethics, which states that Group companies may not use their financial resources or in any other way support political parties.
No cases of corruption were identified and confirmed within the Telekom Slovenije Group in 2020.
The Telekom Slovenije Group is aware of the importance of and its responsibility in connection with the protection of the privacy and data of our users and other persons whose data we process. As the leading Slovenian operator and provider of additional services, we process enormous amounts of personal data from our users. We therefore dedicate constant and close attention to this area.
In 2020, we determined that users are increasingly aware of the processing of their personal data and their rights in that regard. Important building blocks in the introduction of new services and the success of digitalisation processes are the security and compliance of data processing, as we are aware that users will only use those services if they trust in the security of their data.
When updating existing services and introducing new services (e.g. the transformation of the VALÚ KLUB loyalty programme and the PIAZZ online marketplace), we carefully reviewed and appropriately formulated data processing rules. Also important in the context of the ever-increasing digitalisation of operations is constantly ensuring cyber security. To that end, we ensure the cyber security of Group companies and our services, while we also offer users cyber security services.
impact on our data processing activities. Being drafted is a new law, where we are striving for the revision of provisions that govern data processing with the aim of ensuring that those provisions will facilitate modern operations, and ensuring their harmonisation with the General Data Protection Regulation (GDPR).
We provide individuals information regarding personal data processing through the publication of data processing rules. We share that information primarily through the Privacy Policy, which provides subscribers and users general information regarding the processing of their personal data and their rights, through the terms and conditions of individual services, which in turn provide specific information in connection with the processing of data for those services, and by responding to the questions of individuals.
We continuously monitor, update and improve personal data processing processes and procedures, taking into account feedback from users and other stakeholders, as well as information obtained through internal and external controls, in complaint resolution procedures and in the handling of potential breaches of personal data protection. We also adapt processes and procedures with respect to changes in the environment, which include changes due to measures in connection with the COVID-19 pandemic, and changes in the regulatory environment.
As a major controller of personal data, we are subject to frequent supervision by the competent bodies. Five supervision proceedings were conducted at Telekom Slovenije in 2020 (including two proceedings that began in 2019) by the Information Commissioner. Two proceedings have already been completed, without identified breaches.
Measures in connection with the COVID-19 pandemic have resulted in the active migration of operations to the digital environment and the transition to remote operations. Our numerous responses include cooperation with the competent state bodies in the development of an application for reporting the health status of employees for the needs of healthcare institutions. That application is available to business users. During that development, we took into account the sensitive nature of processed data and applied high standards for the protection thereof.
Telekom Slovenije is bound to comply with the Prevention of Money Laundering and Terrorist Financing Act. In addition to payment and electronic money issuance services (in the form of the VALÚ and VALÚ Moneta services), we also included real estate transactions (leasing out) in the prevention of money laundering and terrorist financing system in 2020. A system is in place for the aforementioned services, as are rules, measures, procedures and internal controls aimed at the prevention of money laundering and terrorist financing. In the scope of these activities, we did not identify any transactions in 2020 for which money laundering or terrorist financing was suspected.
The Telekom Slovenije Group organises regular training, workshops and e-learning on the subject of compliance for employees and authorised agents. We inform them via the intranet or electronically about the importance of compliance, current topics and challenges, and about specific activities and previously implemented mechanisms in the area of compliance.
Together with all subsidiaries, we strive to pursue the highest ethical and business standards, such that we have established and regularly upgrade the compliance management system for the entire Telekom Slovenije Group.
are governed at Telekom Slovenije by the document Organisation of the Tax Function at Telekom Slovenije.
The Telekom Slovenije Group is committed to legally compliant operations. Tax-related risks are therefore unacceptable. We have in place internal controls and procedures in accordance with the Methodology on the Self-Assessment of Internal Controls and Reporting within the Telekom Slovenije Group, which ensures that tax treatment is verified before the execution of new types of transaction.
The document Tax Strategy and Tax Management within the Telekom Slovenije Group defines a tax policy at the Group level, the management of tax risks and transfer prices. The underlying principle of the Telekom Slovenije Group’s tax policy is the functioning of all Group companies in accordance with local tax legislation in the countries where those companies are registered to perform an activity.
25GRI GS 207-1, 207-2, 207-3
The Telekom Slovenije Group’s tax policy has been defined to ensure the appropriate organisation and functioning of the tax function within the Group, 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 the risk assessment and reporting process. The Company’s catalogue of identified risks includes risks associated with compliance with tax legislation, i.e. the accurate and timely fulfilment of all types of tax obligations.
Telekom Slovenije reports on taxes for itself and the Telekom Slovenije Group, while subsidiaries report for themselves in accordance with the laws of the countries in which they are registered. Subsidiaries are obliged to establish the appropriate internal controls, and to report all deviations from the provisions of the adopted tax policy to the parent company regularly and in a timely manner.
Every subsidiary must define the areas and adopt the general guidelines set out in the TSG’s tax policy independently, taking into account valid laws in the specific tax jurisdiction in which a company operates.
No new proceedings were initiated against Telekom Slovenije in 2020 due to the potential breach of competition rules or monopolistic behaviour. There were two proceedings in this area before the Competition Protection Agency (CPA) in previous years. Those proceedings are still pending. There were also no new proceedings initiated against the subsidiary IPKO in Kosovo. Two proceedings initiated by IPKO were still pending before the Kosovo Competition Authority.
Telekom Slovenije was party to the following significant proceedings before the courts in 2020:
As the defendant in the commercial dispute involving SKY NET, Telekom Slovenije (previously Mobitel, d. d.) received a ruling and decision from the Ljubljana District Court on 2 March 2020 in connection with the execution of an agreement under two lawsuits. The aforementioned court rejected both the part of the subordinated claim of SKY NET regarding the construction of base stations and the drafting of documentation relating to 2007, and the remainder of that subordinated claim regarding the issue of an order for the construction of 414 base stations and orders to obtain documentation for 434 base stations. The court also ruled that SKY NET is obliged to reimburse Telekom Slovenije litigation costs in the amount of EUR 30,146.32. Provisions for obligations arising from legal actions are disclosed in the Accounting Report in point 31 Provisions.
26GRI GS 206-1
| 0 | 5 | 10 | 15 | 20 | 25 |
|---|---|---|---|---|---|
| Completed in 2020 | New in 2020 |
The Telekom Slovenije Group has established the uniform recording and monitoring of external supervision proceedings initiated against the Company and/or its responsible person, and outlined the conduct of employees in such proceedings. We define external supervision as an examination of the Company’s operations to verify compliance with legal or contractual provisions or standards in the performance of its activities.
There was a total of 82 external supervision proceedings within the Telekom Slovenije Group in 2020: 63 at Telekom Slovenije and 19 at subsidiaries. A total of 83 external supervision proceedings were completed, 64 at Telekom Slovenije and 19 at subsidiaries.
Telekom Slovenije paid a fine in the scope of two supervision proceedings in 2020 (in the areas of electronic communications and traffic). In neither of those cases did the fine exceed EUR 4,000. Fines were not imposed against the legal entity and responsible person in completed supervision proceedings involving subsidiaries.
Telekom Slovenije’s Internal Audit Service (IAS) conducts internal auditing for all Telekom Slovenije Group companies. With its in-depth understanding of the operations of the Telekom Slovenije Group, the IAS performs auditing tasks, provides objective assurances based on risk assessment and performs advisory tasks. It thus contributes to the strengthening and protection of the organisation’s value, continuous improvements in the effectiveness of risk management, control procedures and corporate governance at Group companies.
IAS employees regularly attend professional training and are members of professional associations, while every internal auditor holds at least one professional title from the areas covered by the IAS. An independent external assessment in 2016 and internal assessments of quality in the years that followed have confirmed the compliance of the work of the IAS with the International Standards for the Professional Practice of Internal Auditing.
27GRI GS 307-1, 419-1
The areas of auditing for 2020 were defined in the IAS’s work plan, and derive from its multi-year plan for the period 2020 to 2024. Annual and multi-year plans are adopted by the Management Board, and were also reviewed by the Audit Committee and approved by the Supervisory Board. The IAS also performed an extraordinary audit by resolution of the Management Board.
During audits of Group companies in 2020, the IAS assessed the effectiveness of internal control and risk management systems, and governance in the following areas: retail sales, project management, the generation of revenues, security upgrades to key information sources, access rights, the operations of subsidiaries, and compliance in the areas of documentary materials and financial services. The IAS also performed advisory tasks. It issued recommendations for improving internal controls and the more effective management of risks in areas subject to audit, and regularly monitored the implementation of adopted recommendations. The IAS reports regularly to the Management Board and Supervisory Board’s Audit Committee on findings and recommendations, and on the implementation thereof.
The IAS also faced challenges in 2020 due to COVID-19, as the majority of audit work was performed remotely. In its remote work, the IAS followed the Telekom Slovenije Group’s guidelines in connection with the protection of data and information.
In accordance with the Guidelines for Ensuring the Independence of the Auditor of the Financial Statements of the Telekom Slovenije Group, the audit firm PricewaterhouseCoopers (PwC) was appointed to audit the financial statements of Telekom Slovenije and the Telekom Slovenije Group for the 2020, 2021 and 2022 financial years at Telekom Slovenije’s 31st General Meeting of Shareholders. Costs associated with the auditor are disclosed in the Accounting Report in point 43 Costs of auditor.
| Year | GDP real growth in % |
|---|---|
| 2019 | 4.8 |
| 2020 | 1.7 |
| 2021 | 1.8 |
| 2022 | 4.0 |
| 2023 | 4.7 |
| Type | 2019 | 2020 | 2021 | 2022 | 2023 |
|---|---|---|---|---|---|
| Private consumption | 4.6 | -5.5 | 3.3 | 4.4 | |
| State consumption | -9.7 | 2.6 |
SLOVENIJA
measures, the COVID-19 pandemic hit economic activity hard in 2020, and that effect could still be felt during the first quarter of 2021. Strict measures to contain the spread of the virus at the global level and in Slovenia resulted in a sharp drop in economic activity in 2020, most notably in the second quarter due to the shut-down of non-essential service activities, and the hampered activities of industry and other service sectors. Restrictions on movement, limited spending opportunities and a high level of uncertainty led to a significant contraction in household spending.
The spring forecast of the UMAR for 2021 envisages 4.6% GDP growth and similar growth in 2022 (4.4%). Available data and confidence indicators show that trends from the end of 2020 continue. There is not expected to be any notable recovery during the first quarter of 2021, primarily due to continuing work restrictions in service activities. Given the expected improvement in the epidemiological situation, the start of a recovery is also foreseen in service activities during the second quarter, which will have a positive impact on growth in overall economic activity.
The greatest risk associated with the realisation of forecasts continues to be linked to epidemiological conditions in Slovenia and its most important trading partners, while the gradual and prudent easing of measures to mitigate the consequences of the epidemic is also important. The recovery will be slower in the event of more protracted adverse epidemiological conditions, more stringent restrictive measures due to new waves of infections, in part due to new and more infectious mutations of the coronavirus and/or slower vaccinations, and the resulting major shut-down of the economy.
Source: SURS, Bank of Slovenia, ECB and UMAR calculations and forecasts (Winter Forecast of Economic Trends, March 2021).
| 2018 | 2019 | Q1 2020 | Q2 2020 |
|---|---|---|---|
| 5% | 4% | 3% | 2% |
| 1% | 0% | 4.1 | 4.2 |
| -9.3 | 1.3 |
IPKO operates in Kosovo, where GDP is at the level of emerging countries, and six times lower than in Slovenia. Due to low GDP and high unemployment, the prices of telecommunication services are still significantly lower than in Slovenia. The economy remains dependent on economic and employment developments in Western Europe, and on foreign direct investments.
Economic growth was 4.2% in 2019, and was down by 9.3% in the second quarter of 2020 relative to the same period in 2019. Economic sectors characterised by a decline are construction, trade, transport, accommodation and food services, professional and administrative services, financial and insurance services, agriculture, forestry and fishing.
Conditions on the labour market have improved slightly, with the unemployment rate falling, but still very high at 29.1% during the first quarter of 2020. The size of the working-age population can be expected to grow rapidly over the next ten years, as Kosovo is among the countries in Europe with the youngest population (sources: Kosovo, Ministry of Finance, Labour Force Survey Q1 2020).
According to the forecasts of analysts from Analysys Mason prior to the outbreak of the COVID-19 pandemic, global revenues from the services of telecommunication operators were expected to grow constantly at an annual rate of 1.4% (CAGR) between 2019 and 2024. Forecasts were cut considerably due to the pandemic, as a sharp drop is expected in 2020, while the rate of recovery in the coming years will depend on the depth of the recession. Taking into account different scenarios, CAGR is expected to fall by between 0.1% and 0.8% in the period 2019 to 2024.
In terms of regions, the sharpest drop in 2020 is expected in North America (-8.5%), as revenues from residential and business mobile telecommunication services are falling sharply due to the severe economic contraction. The most optimistic scenario of moderate growth (2.6%) is for sub-Saharan Africa due to existing strong growth trends, continued dependence on mobile services and the later arrival of COVID-19 in the aforementioned region.
Forecasts of revenues from telecommunication services have been cut considerably due to the pandemic. The revenues of operators will fall by between 2.5% and 5.6% in 2020 compared with the forecast prior to the COVID-19 pandemic, which envisaged growth of 1.8%. Mobile services for residents and fixed business services will be hit the hardest. Despite recent events, revenues from ICT services are growing rapidly, and could rise by between 7.3% and 10.0% in 2020.
| Revenue (EUR million) | 2019 | 2025 | |
|---|---|---|---|
| Revenue from telecommunications services – Central and Eastern Europe in the period 2019 to 2025 (in EUR billion) | Negative impact of COVID-19 on revenues from telecommunication services in Western Europe | ||
| Mobile broadband | -5% | -3% | |
| Mobile IoT | -3.3% | 14.2% | |
| Mobile handset data | 6.5% | -4.8% | |
| Mobile telephony | -7.9% | -1.4% | |
| Mobile data | 4.8% | 2.4% | |
| Fixed voice | -6.8% | ||
| Dedicated connections | |||
| ICT services | |||
| Fixed broadband and IPTV |
Western Europe will fall by 5% in 2020 due to the COVID-19 pandemic, according to the analysts of Analysys Mason. Despite the introduction of 5G technology and growth in revenues from ICT services, competition and a saturated market will slow the recovery. More significant growth in revenues in Western Europe is only expected in fixed broadband access and ICT services. The economies of countries in Central and Eastern Europe will also be hit hard by the pandemic.
Increased unemployment and economic uncertainty in Central and Eastern Europe will affect household and corporate consumption for telecommunication services in 2020 and 2021. Revenue from telecommunication services will fall by nearly 3% in 2020, while 1% growth in revenues was forecast prior to COVID-19 (Analysys Mason).
Source: Analysys Mason – Central and Eastern Europe telecoms market: trends and forecasts 2020–2025.
Amongst individual services, the highest growth will be achieved by the mobile Internet of Things services and mobile data transfer, followed by ICT services and fixed broadband access with IPTV. The sharpest decline in revenues will be seen in traditional mobile services (calls and messages) and fixed telephony.
By 2025, a total of 72% of households in Central and Eastern Europe will have an active gigabit broadband connection, which will facilitate an increasing number of convergent operators who offer packages of fixed and mobile services. Competition will intensify, as an increasing number of operators will search for opportunities in the convergent services and pay TV segments.
Average spend per user (ASPU) will rise in 2020 due to the increased scope of work from home, but stiff competition will trigger a fall from 2021 on.
According to the forecasts of Analysys Mason, the mobile services segment will stagnate. The introduction of LTE networks will be the main driver of growth in revenues from mobile services and the increased scope of mobile data transfer traffic. Operators in the majority of countries in Central and Eastern Europe have not yet introduced commercial 5G services, while governments continue to strive to achieve the EU’s objective of the coverage of at least one city in every EU country with 5G services by 2020. Thus, 5G services will not achieve mass use before 2022, when coverage will be higher and more affordable 5G mobile phones will be available.
Operators will continue to invest in improved coverage by LTE/4G, in order to increase mobile data transfer and average spend per user (ASPU). LTE/4G services will facilitate the simple migration of the users of data services from prepaid to subscriber relationships and thus maintain growth in ARPU, as demand for mobile data transfer services remains high in the region. Growth in the use of mobile data transfer services will slow after 2020, while ARPU will fall due to uncertainties in connection with COVID-19. However, ARPU will recover in the majority of countries in Central and Eastern Europe due to the increased use of data services and reduced price competition.
Operator revenues from dedicated connections will fall. Demand for bandwidth per connection is rising due to the growing migration of business applications to the cloud. However, price competition and the increased availability of high-quality broadband services will limit revenue growth.
to EUR 3 billion by 2025. The use of these services is still relatively infrequent in many countries in Central and Eastern Europe, but sharp growth can be expected in this segment due to the pandemic and the search for solutions to improve business continuity. IT service providers dominate the provision of many of the aforementioned services, but operators also have an opportunity to increase their market shares.
The number of IoT connections will rise between 2019 and 2025 at an annual rate of 17% (CAGR), primarily due to growth in the automotive sector and on account of operators who are introducing low-power wide-area (LPWA) networks. Revenues from other sectors (such as healthcare and smart buildings) are also expected to rise during the aforementioned period. The number of wireless IoT connections will rise by 20% between 2019 and 2025 (CAGR) in all of the countries of Central and Eastern Europe.
IPTV will stimulate growth in the number of traditional pay TV connections in Central and Eastern Europe. The number of cable TV subscribers will fall after 2020, primarily due to the migration of users from cable to other technologies. The number of satellite connections reached its peak in 2019. The highest proportion of those are in Russia, where the number of satellite connections will continue to grow, but fall in the remainder of the region. The number of IPTV connections will rise from 18.9 million in 2020 to 24.5 million in 2025 in Central and Eastern Europe. Contributing to that rise will be growth in Russia, Poland, and Turkey.
Numerous operators have introduced OTT services in recent years, meaning that the number of users of such services will rise sharply in Central and Eastern Europe between 2020 and 2025 (to 27.1 million). Turkey has the highest number of OTT video services users.
| Mobile broadband | Mobile IoT | Mobile handset data | Mobile telephony | Mobile data | Fixed voice | Dedicated connections | ICT services | Fixed broadband and IPTV | ||
|---|---|---|---|---|---|---|---|---|---|---|
| 2019 | 350 | 300 | 250 | 200 | 150 | 100 | 50 | 0 | ||
| 2025 | 25% | 20% | 15% | 10% | 5% | 0% | -5% | -10% | -15% | |
| CAGR 2015–2019 | 4.6% | 20.3% | -0.5% | -10.0% | -8.6% | 0.2% | 4.0% | 4.1% |
Source: Analysys Mason – Central and Eastern Europe telecoms market: trends and forecasts 2019–2025.
According to forecasts, the sharpest decline in revenues in Slovenia will be seen in traditional mobile services (calls and messages) and fixed telephony. Amongst individual services, the highest growth will be achieved by the mobile IoT, mobile broadband access, fixed broadband access and IPTV, and ICT services. Mobile data transfer will remain at the same level. Strong demand for high-speed fixed broadband connections will help offset falling revenues in the mobile segment.
The development of 5G services will rise quickly in 2021. Together with demographic trends, smart mobile phones and high-speed data connections, which are the norm in the Slovenian mobile segment, will be the driver of the majority potential for revenue growth in the sale of larger quantities of mobile data. The migration to 4G networks and the recent launch of 5G services will satisfy growing demand, which will trigger rapid growth in the use of mobile data per connection (CAGR of 21% between 2019 and 2025). ARPU will fall due to stiff competition between Telekom Slovenije, A1 and Telemach.
The Slovenian communications market is nearly saturated, but sharp growth in coverage in the fixed segment will drive growth in revenues. Slovenia has the highest GDP per capita in Central and Eastern Europe. It will maintain that advantage over the entire period until 2025, despite the macroeconomic shock due to the COVID-19 pandemic.
Revenues from telecommunication services will stagnate in 2020 (0.1% growth relative to 2019).
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|
| 24.6 | 36.7 | 32.9 | 39.5 | 44.8 | 28.5 | 38.1 |
| 42.7 | 35.4 | 41.3 | 46.3 |
CAGR 2019 – 2025 = 4%
Source: Analysys Mason – Central and Eastern Europe telecoms market: trends and forecasts 2019–2025.
EU initiatives and government support will help ensure fibre optic access, even in remote regions of the country, while the high acceptance of fibre optics will stimulate growth in revenues from fixed services. The analysts of Analysys Mason forecast that the fixed segment will operate better than the mobile segment in the period until 2025. The use of fixed voice services has been falling for some time, while revenues from fixed telephony are showing signs of stabilisation.
Source: Analysys Mason – Central and Eastern Europe telecoms market: trends and forecasts 2019–2025.
According to the analysts of Analysys Mason, growth in revenues from ICT services in Slovenia is expected to be 4% in 2020 (relative to 2019) and 3.5% in 2021 (relative to 2020).
Growth will be achieved through organic growth and the consolidation of the Slovenian ICT market. The increased digitalisation of operations is accompanied by increasing cyber security threats. Ensuring information security and the continuous control of the network and services thus serve as the basis of the operations of Telekom Slovenije, which facilitates the secure connectivity of fixed and mobile services via the internet and provides cloud services for private and business users.
| Overall fixed broadband take-up, % households | At least 100 Mbps fixed broadband take-up, % households | Fibre to the Premises coverage/availability (as a % of households) | Share of fixed broadband subscription >=30 Mbps | Fast broadband (NGA) coverage, % households | Fixed Very High Capacity Network (VHCN) coverage, % households | Mobile broadband take-up, Subscriptions per 100 people | 4G coverage, % households (average of operators) | Mobile take-up (voice or data), subscriptions per 100 people | 5G readiness (Assigned spectrum as a % of total harmonised 5G spectrum) | IBroadband price index, Score (0 to 100) |
|---|---|---|---|---|---|---|---|---|---|---|
| 81% | 99% | 120% | 0% | 63% | 83% | 21% | 67% | 54% | 87% | 66% |
| 100% | 96% | 131% | 21% | 64% | 78% | 26% | 34% | 63% | 86% | 44% |
Source: European Commission, Digital Economy and Society Index 2020 (values for 2019, 5G for 2020).
The fixed broadband connection market in Slovenia continues to grow at a slow pace. IPTV achieves slightly higher growth, but that growth is also slowing, while VoIP services record the lowest growth. Telekom Slovenije is upgrading and expanding its fibre optic access network, and is thus laying the infrastructure foundations for the future of the telecommunications activity. We facilitate the connection of more than 370,000 Slovenian households to the aforementioned network.
| VoIP | IPTV |
|---|---|
| 700,000 | |
| 600,000 | |
| 500,000 | |
| 400,000 | |
| 300,000 | |
| 200,000 | |
| 100,000 | |
| 0 | |
| 2% | 2% |
| 2% | 4% |
| 3% | 9% |
| 1% | 1% |
| 3% | 10% |
| 8% | 5% |
| 4% | 3% |
| 2016 | 2017 |
| 2018 | 2019 |
| 2020 |
Growth in fixed broadband connections in Slovenia
Source: AKOS, SURS, 4Q 2020.
According to data from the European Commission for 2019, 66.5% of Slovenian households access the internet via fibre optics compared with 33.5% of EU households. FTTX connections accounted for 44% of all broadband connections in Slovenia in the fourth quarter of 2020.
OTT video services will generate more revenues than traditional pay TV services in Western Europe by 2023. The drop in revenues from traditional pay TV services from 2019 to 2020 will be sharp due to the COVID-19 pandemic. That decline is expected to continue until 2025, albeit at a slower pace. Total revenues from traditional pay TV will fall by just 1% because growth in revenues from IPTV will offset the drop in revenues from satellite, cable and pay terrestrial TV.
IPTV accounts for 56.6% of all TV connections in Slovenia (fourth quarter of 2020; source: the AKOS) and continues to grow. It is followed by cable TV (37.5%), where the number of connections has stagnated.
At 44.4% (fourth quarter of 2020), Telekom Slovenije holds the highest share of the IPTV market (source: Q4 2020, AKOS).
Central and Eastern Europe
Poland
Romunia
| Country | Year | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | |
| Serbia | 60% | 50% | 40% | 30% | 20% | 10% | 0% | ||||
| Slovakia | 60% | 50% | 40% | 30% | 20% | 10% | 0% | ||||
| Slovenia | 60% | 50% | 40% | 30% | 20% | 10% | 0% | ||||
| Turkey | 60% | 50% | 40% | 30% | 20% | 10% | 0% | ||||
| Ukraina | 60% | 50% | 40% | 30% | 20% | 10% | 0% |
One of the fastest growing segments in Europe is mobile broadband internet access, where the penetration rate of active mobile SIM cards with a mobile broadband connection is 100.2% (European Commission, 2020). The majority of those cards are used on smart phones, only then followed by tablets and laptop computers. Europeans primarily use fixed technologies to access the internet at home, while an increasing number of households are also opting for mobile internet.
5G is the latest generation of mobile networks and will facilitate the development of new opportunities of use and a better user experience.
Telekom Slovenije was the first in Slovenia to establish a national fifth mobile generation (5G) network on existing base stations and in the existing 2,600 MHz frequency spectrum, which is also used for the fourth mobile generation network.
Source: Analysys Mason – Central and Eastern Europe telecoms market: trends and forecasts 2019–2025.
| Year | ARPU (EUR per month) |
|---|---|
| 2015 | 5.4 |
| 2016 | 17.9 |
| 2017 | 5.3 |
| 2018 | 13.9 |
| 2019 | 5.3 |
| 2020 | 15.8 |
| 2021 | 5.4 |
| 2022 | 12.1 |
| 2023 | 5.5 |
| 2024 | 16.1 |
| 2025 | 5.4 |
| Year | ARPU (EUR per month) |
|---|---|
| 2015 | 5.4 |
| 2016 | 12.0 |
| 2017 | 5.3 |
| 2018 | 14.8 |
| 2019 | 5.2 |
| 2020 | 17.1 |
| 2021 | 5.3 |
| 2022 | 13.1 |
| 2023 | 5.6 |
| 2024 | 15.5 |
| 2025 | 5.4 |
According to the forecasts of analysts at Analysys Mason, revenues from fixed telephony will contract at an annual rate of -6.8% (CAGR) in Central and Eastern Europe and -5.7% in Slovenia until 2025.
In Slovenia, the proportion of the market accounted for by IP telephony is growing constantly, such that at the end of the fourth quarter of 2020, the share of the Slovenian market accounted for by IP connections has already reached 87.6% (85.6% in 2019). The share held by traditional telephony continues to decline and stood at 12.4%.
In the mobile segment, Slovenia has one of the lowest per capita penetration rates of active mobile telephony users in the EU (120.8% in the fourth quarter of 2020), giving it sufficient room for further development.
The migration from prepaid to subscriber services is characteristic of the EU mobile telephony market. Slovenia is among the countries with the highest proportion of subscriptions (81.4% in the fourth quarter of 2020) compared with the European average.
Closure of borders, social distancing, less business travel, rising unemployment and a falling number of business users.
Revenues: drop of between 7.6% and 12.4% in 2020
ICT: high demand for unified communications and security services to support remote work.
Revenues: growth of between 7.3% and 10.0% in 2020
Closures of outlets, small companies, and accelerated migration to less expensive IP telephony and voice solutions in the cloud.
Revenues: drop of between 7.9% and 11.6% in 2020
In March 2020, the Ministry of Public Administration published a tender for the co-financing of the construction of the next generation of open broadband networks (OBNs). On 4 October it began to draw up the Digital Slovenia 2027 strategy, which represents the continuation of Digital Slovenia 2020.
On 28 August 2020, the Ministry of Public Administration submitted a draft of the new Electronic Communications Act (ZEKom-2) in the scope of public consultations. That act transposes into Slovenian law the directive on the implementation of the European Electronic Communications Code (EECC), which entered into force on 20 December 2018. Telekom Slovenije submitted comments and proposed amendments to the draft act.
The regulatory body (AKOS) conducted various inspections with respect to Telekom Slovenije in connection with imposed obligations on regulated relevant markets. A decision entered into force in July on relevant market 2 (Call termination in the mobile network), on which Telekom Slovenije is one of four operators with significant market power. With the publication of the analysis of the effects of regulation of markets 3a and 3b, the regulatory body began a new round of analyses of the aforementioned relevant markets in May 2020.
The analysts at Analysys Mason are forecasting a global drop in operator revenues in the B2B segment of between 4.9% and 8.8% in 2020 due to the pandemic, while growth is expected again in 2021, but is lower than the pre-pandemic forecast.
Change
Regulation of relevant market 2 ‘Wholesale voice call termination in individual mobile networks’
A decision entered into force on 16 June 2020. Telekom Slovenije published its revised sample offer on 15 July 2020, while a new call termination price entered into force on 1 August 2020.
In 2020, the AKOS began preparing a multi-frequency public tender with a public auction of frequencies for fifth generation (5G) mobile networks. It published an informative memorandum in August, and a public tender for the multi-frequency auction on 18 December. Based on the new strategic guidelines of the Ministry of Public Administration, the strategy for managing the frequency spectrum for the period 2021 to 2023 was put forward for public consultations on 13 November. A public tender with a public auction was published on 4 December for the allocation of radio frequencies to ensure commercially critical machine-to-machine (M2M) communication via dedicated networks in 700 MHz frequency band.
Telekom Slovenije informs users regularly and correctly about special conditions, sales offers, prices and changes in its portfolio, which reduces the number of complaints. We have also striven to continuously improve the resolution of complaints at the first instance. According to data from the AKOS, the Company has the lowest proportion of complaints before the aforementioned agency amongst Slovenian operators. Findings from the resolution of complaints are always implemented in the process of improving services and operations.
Services through which Telekom Slovenije is expanding its core activity are also subject to regulation. In the area of electricity services, we must provide data regarding wholesale agreements and sales quantities to the Energy Agency, while the consent of the Insurance Supervision Agency was required for the provision of insurance services. Telekom Slovenije also takes into account Banka Slovenije rules in the provision of payment services.
In accordance with the decision of the local regulatory body, IPKO published a sample offer for wholesale access to bit-streaming on 12 August 2020. In October, IPKO was defined as one of three operators with significant market power on the relevant market for the wholesale call termination in specific mobile networks.
During the COVID-19 pandemic, our services were for many the only form of contact with families, friends and co-workers, and with information and other content. For uninterrupted remote work and distance learning, we provided users additional data transfer quantities and increased their internet speeds. We also provided entertainment by upgrading the TV programme offer, free of charge, with children’s, popular science, film and sports content. And last but not least, we worked with partners to rapidly adapt the telemedicine solution, making it possible for medical staff to monitor COVID-19 patients remotely.
Even remotely, we create together, encourage one another and stay connected.
| Mobile penetration | 121% |
|---|---|
| 4G/5G % of connections | 55.0% |
| Mobile ARPU | 14.9€ |
| Fixed voice connections | 692K |
| Fixed broadband penetration | 84.8% |
| Fixed broadband ASPU | 21.3 € |
| Pay-TV subscribers | 676K |
| Pay-TV ASPU | 17.4 € |
| Mobile service revenue | 450M € |
| Fixed service revenue |
Key indicators of the Slovenian communications market
Source: Analysys Mason, Slovenia telecoms market report 2020, AKOS, SURS (fourth quarter of 2020).
The Slovenian communications market is consolidated and dominated by four convergent operators. Telekom Slovenije, Telekom Austria Group (A1 Slovenija), United Group (Telemach) and T-2 dominate the fixed and mobile market, and compete amongst each other with a range of package services. Competition is stiff, while the purchase of smaller operators by larger ones is common.
29GRI GS 102-6, SDG 8.10
| OPERATOR | TELEKOM SLOVENIJE | A1 SLOVENIJA | TELEMACH | T-2 |
|---|---|---|---|---|
| FIXED TELEPHONY | PSTN, ISDN, VoIP | VoIP | VoIP | VoIP |
| FIXED INTERNET | ADSL, VDSL, FTTH | ADSL, VDSL, KABEL (PREK PARTNERSKIH OMREŽIJ) | CABLE | FTTH, ADSL, VDSL (LLU) |
| PAY TV | IPTV, CABLE | IPTV | CABLE | IPTV |
| MOBILE SERVICE | ||||
| COMPREHENSIVE IT SERVICES |
| OPERATOR | TELEKOM SLOVENIJE | T-2 | TELEMACH | A1 SLOVENIJA |
|---|---|---|---|---|
| FIXED BB ACCESS | 29 | 44 | 33 | 38 |
| IP TV | 33 | 31 | 34 | 24 |
| VoIP | 27 | 21 | 32 | 21 |
| MOBILE TELEPHONY | 6 | 6 | 14 | 21 |
| MOBILE INTERNET | 9 | 28 | 29 | 3 |
Telekom Slovenije achieves a high market share in all segments of operations, primarily through the most state-of-the-art services tailored to the needs of users: a superior user experience, the best sales and after-sales care for users, the most advanced and reliable network, convergent packages, an offer outside of the core activity, a comprehensive range of ICT solutions, and information and cyber security services.
| Year | Q1 | Q2 | Q3 | Q4 |
|---|---|---|---|---|
| 2016 | 2,443,172 | 718,006 | 601,820 | |
| 2017 | 2,511,979 | 691,468 | 627,936 | |
| 2018 | 2,385,757 | 706,255 | 588,329 | |
| 2019 | 2,465,857 | 704,564 | 612,737 | |
| 2020 | 2,550,895 | 691,658 | 651,604 |
| Service | Market Share | Annual Change (p.p.) | Connections | Annual Change |
|---|---|---|---|---|
| Fixed Broadband Access | 28.9% | -2.1 | 201,420 | -2.7% |
| IP TV | 44.4% | -2.7 | 168,057 | -2.5% |
| VoIP | 32.9% | -1.9 | 183,174 | -2.6% |
| Mobile Telephony | 37.9% | -2.0 | 965,867 | -3.7% |
Source: Statistical Office of the Republic of Slovenia, fourth quarter of 2020.
Source: Report on the development of the electronic communications market for the fourth quarter of 2020, AKOS; internal Telekom Slovenije figures.
| Technology | Percentage |
|---|---|
| ADSL | 3.4% |
| VDSL | 1.9% |
| DOCSIS 2.0 | 15.2% |
| DOCSIS 3.0 | 10.7% |
| FTTH | 24.7% |
| Other Technologies | 44.1% |
| 5.0% | 0.9% | 37.5% | 56.6% |
|---|---|---|---|
At 44.4%, Telekom Slovenije holds the highest share of the IPTV market.
Source: AKOS: amongst the most important indicators of the level of development of the electronic communications market is broadband access penetration, which is calculated as the number of residential and business broadband connections relative to the number of citizens or households in the Republic of Slovenia.
There was a total of 651,604 broadband connections at the end of the fourth quarter of 2020 (compared with 627,939 during the same period in 2019), 86.3% of which were accounted for by residential broadband connections. The household fixed broadband access penetration rate reached 84.8% in Slovenia (83.2% in 2019).
Telekom Slovenije holds a 28.9% market share in the aforementioned segment. The proportion of fibre optic connections and the range of high-speed internet services are continuously rising. Thus, at the end of the fourth quarter of 2020, the number of active fibre optic connections in Slovenia is already 287,532, accounting for 44.1% of all connections. The number of fibre optic connections rose by 14.4% in one year.
Source: Report on the development of the electronic communications market for the fourth quarter of 2020, AKOS.
IPTV already accounts for 56.6% of all TV connections in Slovenia, followed by cable TV, the proportion of which is falling. According to figures from the AKOS, pay TV was already present in 81.7% of households in the fourth quarter of 2020, compared with 80.3% in the fourth quarter of 2019.
Source: Report on the development of the electronic communications market for the fourth quarter of 2020, AKOS.
84.8%
| Year | Q1 | Q2 | Q3 | Q4 |
|---|---|---|---|---|
| 2016 | 0.4 | 0.9 | 1.2 | 1.6 |
| 2017 | 1.9 | 2.3 | 2.6 | 2.8 |
| 2018 | 3.1 | 3.4 | 3.6 | 3.7 |
| 2019 | 3.7 | 4 | 4.2 | |
| 2020 | 0.1 | 0.1 | 0.1 | 0.1 |
| Provider | 2016 | 2017 | 2018 | 2019 | 2020 |
|---|---|---|---|---|---|
| HotMobil | 0.4 | 0.9 | 1.2 | 1.6 | 1.9 |
| MegaM | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 |
| Telemach | 14.7 | 15.4 | 16.1 | 16.7 | 17.3 |
| T-2 | 3.6 | 3.8 | 3.9 | 4.1 | 4.2 |
| Izimobil | 2.4 | 2.4 | 2.6 | 2.6 | 2.6 |
| Debitel** | 3.7 | ||||
| A1 Slovenija | 30.7 | 30.5 | 30.3 | 29.9 | 30 |
| Telekom Slovenije | 45 | 47.9 | 47 | 46.6 | 45.7 |
39,000 users relative to the same period in 2019. The penetration rate was also up slightly, and stood at 120.8%. At 37.9%, Telekom Slovenije maintains the leading share of the mobile telephony market.
Source: Report on the development of the electronic communications market for the fourth quarter of 2020, AKOS.
Data traffic in 4G networks and the most advanced networks with mobile broadband access is growing. At 32.8%, Telekom Slovenije also holds the highest share of the mobile broadband internet access market.
| TSmedia network reaches | 69% |
|---|---|
| Other internet users | 31% |
| Website | Percentage of Slovenian internet population reach | Number of different users | Ranking |
|---|---|---|---|
| Siol.net | 28% | 400,503 | 14th PLACE |
| Najdi.si | 18% | 248,794 | 17th PLACE |
| Itis.si | 18% | 262,132 | 16th PLACE |
| Bizi.si | 2nd PLACE |
With its online media in the form of Siol.net, its access point to the Slovenian web (najdi.si) and the bizi.si business directory, TSmedia is the leading media company and primary information provider in Slovenia.
Source: MOSS, December 2020
IPKO has been the strongest brand in Kosovo for several years in the fixed services segment, and ranks second in the mobile segment. The company is known on the market as innovative, with the fastest mobile internet, the best coverage by the 3G/4G network, the best mobile and fixed network, and as a leader in the segment of young people and technology enthusiasts.
| TK - VALA | IPKO | Zmobile | mts Doo |
|---|---|---|---|
| 100% | 90% | 80% | 70% |
| 60% | 50% | 40% | 30% |
| 20% | 10% | 0% | |
| 2016 | 2017 | 2018 | 2019 |
| Q1 2020 | Q2 2020 | Q3 2020 | |
| 605650 | 595760 | 61333437 | 394138 |
| 38 | 2 | 2 | 2 |
| 2 | 0 | 8 | 8 |
| 12 |
The mobile telephony market in Kosovo is dominated by Vala and IPKO. At the end of 2019, Zmobile (MVNO) wound up its operations due to the termination of the agreement by Telekom Kosovo/Vala (TK), while a third operator, MTS, has limited and temporary market authorisation as a local branch of Telekom Srbija. The household penetration rate of active mobile telephony users in Kosovo has reached 107%, which translates to 1.94 million users (third quarter of 2020). IPKO made a major breakthrough in 2018 with subscriber packages, which currently account for nearly 21% of all users.
It is the only operator in Kosovo that implemented all phases in accordance with regulatory requirements relating to the Kosovo country code (+383). Following the successful implementation of the code in June 2019, IPKO concluded 145 international roaming agreements that covered more than 95% of users’ needs. It took all necessary steps for roaming in the Western Balkans, as required by the ARKEP (the regulatory body for electronic and postal communication), and made all preparations for the final phase starting 1 July 2021. It also introduced a new price for calls with all Western Balkan countries in July 2020.
Source: ARKEP, report for the third quarter of 2020.
There was a major challenge in the fixed services segment in recent years due to the large number of competitors on the market. Here, it is worth mentioning small internet service providers who put direct pressure on price strategies. As a premium brand, IPKO remains the leading provider of fixed services (DTV and internet).
Three main providers are fighting for market share in the fixed segment: IPKO, Kujtesa and Artmotion, followed by PTK and Telkos/Orange/Ardi net (as an interconnected group). According to the latest RAEPC report, the fixed broadband connection penetration rate reached 122% in Kosovo in the third quarter of 2020, with 362 thousand household connections. IPKO holds a 28% market share in terms of fixed broadband connection subscribers.
Telekom Slovenije continuously develops new services and the most advanced solutions for users by closely monitoring their communication habits and needs. We are also developing the portfolio of brands through the development of services.
Telekom Slovenije is an established and highly visible corporate brand that covers services on the B2C and B2B markets, the network, connections and associated services. It is used in communications with all stakeholder groups. The essence of the brand is ‘Inspired by simplicity’, while its values are: simple, inspiring, cutting-edge, caring and safe.
assumed the role of leading telecommunications provider, and is again the strongest brand in the convergent, fixed and mobile categories. The brand remains strongest in the advanced living segment, while its share of the users of convergent services is continuously rising (Brand Track; autumn 2020). The brand ranks amongst the most reputable Slovenian companies in the eyes of both the general public and business public (Reputation of Slovenian Companies; autumn 2020).
From the corporate brand, we also developed the employer brand in 2020 by adding the hashtag #Connected to the basic logo. We use the employer brand in the communication of HR activities, in communication with employees and in communication on social networks. The common theme of activities is the commitment of the employer brand: Co-creating the digital future of Slovenia.
The Telekom Slovenije Group has 316 registered brands, while Telekom Slovenije has 206 brands, broken down as follows:
Telekom Slovenije registered one new brand in 2020, the national brand Moja prijava. We extended the registration of eight brands (three national, three European and two international brands), while we let the registration of 10 brands expire. Registered brands include Mobitel, SiOL, Mobi, Itak, TViN and Moneta, and the partner brand WiFreeLjubljana. The complete list can be found on the website http://www2.uil-sipo.si/.
PIAZZ is the brand name of an online market place that brings merchants and their portfolios together with consumers, who may comparison shop with regard to product price, quality, needs, delivery time, credibility of merchants, etc. It is a new Telekom Slovenije brand that allows consumers to make simple and secure purchases. The essence of the brand is ‘global purchases tailored to your needs’, while the main slogan is ‘Best Online Marketplace’.
The name derives from the Italian word ‘piazza’, which literally means market. The symbolic message is that PIAZZ is a place where people meet and socialise, where a lot is going on at one time, and where everyone finds something for themselves. The registered trademark is an irregularly shaped quadrilateral that continuously changes shape. The aim is to show that PIAZZ adapts to the consumer, and takes into account their needs and habits to make everyone feel good.
The NEO brand is a platform for smart living that links the best solutions for home and entertainment in one place: simplified viewing and advanced searches for TV content, including voice-control searching in Slovene, the simplified management of smart devices, and purchases via the TV screen.
The VALÚ brand is more than a smart wallet and payment and identification system; it is a comprehensive service that changes a mobile phone into a handy smart device for accessing everything the user needs in contemporary urban life. The essence of the brand is that it ‘generates value’, while its positioning slogan is ‘Everything. Better.’
In the new loyalty programme, users receive VALÚ points that they exchange for benefits. At the end of the year, we also offered users the VALÚ MasterCard that they can use to make payments at 53 million points of sale across the globe.
We renamed the registered Moneta brand to VALÚ Moneta with the launch of VALÚ. VALÚ Moneta facilitates payments using a mobile phone at numerous payment points bearing the VALÚ logo.
The IZI brand addresses the segments of young users for whom a contemporary prepaid mobile offer is important. At the identity level, we created a friendly and affable brand for which relationships are important. The essence of the brand is ‘Nothing could be simpler’, while the tagline is ‘Simply IZI’.
Neki NekI is a channel for young people with online content that is created by a target group of users who use YouTube and Instagram. The core values of the channel are inspiring and cutting-edge, while the attributes that characterise it are: open, communicative, witty and creative. Telekom Slovenije serves as a supporter of the channel.
Each brand has defined elements, such as a brand’s essence and the values of the umbrella brand, followed by a brand’s own values, approach strategy, primary segment, possibility of extensions and key indicators. All elements are reviewed and updated every year.
More detailed guiding principles for all key brands are also accessible at https://www.telekom.si/o-podjetju/skupina-telekom-slovenije/blagovne-znamke.
Other Telekom Slovenije Group companies operate on the market independently, and are represented by their own logo and corporate identity. In addition to the corporate brand, the portfolio of subsidiaries in Slovenia also includes the key sub-brands of individual companies and their services. A detailed description of individual brands and services can be found on the websites of the relevant companies.
At the end of 2020, the number of the Telekom Slovenije Group’s retail and wholesale broadband connections was down by 1% relative to the previous year. The total number of connections was up by 1% in Slovenia and down by 8% in Kosovo.
The number of retail and wholesale mobile telephony users was down by 2% in Slovenia and by 5% in Kosovo. The total number of mobile telephony users was 3% lower.
The number of traditional fixed voice telephony connections is in constant decline on developed markets. In Slovenia, the number of connections was down by 6% in 2020 relative to the end of 2019. Together with VoIP services, the number of voice telephony connections remained at the level of the previous year.
| Number of connections as at | 31.12.2020 | 31.12.2019 | Index 20/19 |
|---|---|---|---|
| Slovenia - retail | 201,420 | 206,925 | 97 |
| Slovenia - wholesale | 160,323 | 151,840 | 106 |
| Slovenia total | 361,743 | 358,765 | 101 |
| Kosovo - retail | 102,515 | 111,930 | 92 |
| Telekom Slovenije Group | 464,258 | 470,695 | 99 |
| Number of connections as at | 31.12.2020 | 31.12.2019 | Index 20/19 |
|---|---|---|---|
| Slovenia - retail | 965,867 | 1,002,917 | 96 |
| Slovenia - wholesale | 132,861 | 119,562 | 111 |
| Slovenia total | 1,098,728 | 1,122,479 | 98 |
| Kosovo - retail | 775,148 | 817,145 | 95 |
| Telekom Slovenije Group | 1,873,876 | 1,939,624 | 97 |
| Number of connections as at | 31.12.2020 | 31.12.2019 | Index 20/19 |
|---|---|---|---|
| Slovenia - classical fixed voice telephony | 302,867 | 322,058 | 94 |
| Slovenia - VoIP | 183,174 | 188,041 | 97 |
| Slovenia total | 486,041 | 510,099 | 95 |
| Kosovo - VoIP* | 35,027 | 10,912 | 321 |
| Telekom Slovenije Group | 521,068 | 521,011 | 100 |
The Telekom Slovenije Group‘s sales revenue totalled EUR 647.2 million in 2020, a decrease of 3% relative to 2019. The year 2020 does not include the revenues of PlanetTV.
| EUR thousand | 2020* | 2019* | Index 20/19 |
|---|---|---|---|
| Telekom Slovenije | 591,693 | 602,231 | 98 |
| Other companies in Slovenia | 78,180 | 81,790 | 96 |
| IPKO – Kosovo | 56,156 | 60,247 | 93 |
| Other companies abroad | 3,908 | 3,351 | 117 |
| Total unconsolidated | 729,938 | 747,619 | 98 |
| Exclusions and adjustments | -82,761 | -82,727 | 100 |
| Telekom Slovenije Group | 647,177 | 664,892 | 97 |
Telekom Slovenije’s sales revenue was down by 2% or EUR 10.5 million in 2020 relative to 2019, to stand at EUR 591.7 million. Revenues from new sources were up relative to the previous year: e-Health services, energy services, financial and insurance services, and revenues from the sale of goods and services and e-commerce. Revenues generated by mobile subscribers were down, as the latter are migrating to new, more affordable packages with unlimited communication in Slovenia and EU countries. Also having a negative effect on revenues was the COVID-19 pandemic, which resulted in lower revenues from roaming. Revenues from traditional voice telephony have been declining for several years due to the migration to mobile and VoIP telephony.
The effects of the pandemic have been seen in the changing behaviour, habits, needs and expectations of the users of communication services. We reacted swiftly to those changes and focused on the more in-depth monitoring of user habits and needs, and immediately began adapting the portfolio and communication. We introduced positioning in a comprehensive online marketplace that simplifies the lives of users and protects their world.
In the mobile segment, we upgraded the existing Naj mobile packages with two new packages: Naj C akcija and Naj 5G. In addition to unlimited calls and messages, the latter also includes 300 GB of data transfer, the use of 5G services, as well as VoLTE and VoWiFi services. The use of the 5G network was free until the end of 2020, even for the subscribers of other mobile packages, by sending a simple text message.
For even easier access to superior mobile phones by users, we made it possible to purchase such devices on 36 instalments when concluding a 12-month subscriber agreement.
In the segment of young mobile subscribers, we prepared a special online offer of selected mobile phones with the conclusion of a subscriber agreement with the NekiNeki and Naj C packages with the Mladi special offer. We successfully engaged young users through prize contests on social networks, which were a key communication channel due to the pandemic.
Scope of the IZI portfolio. The line of IZI MiniKUL, IZI KUL and IZI SuperKUL packages is intended for price-sensitive consumers and users between the ages of 15 and 27 years who need simple services, while the quantity of data transfer is also very important to them.
We presented Microsoft 365 and MS Teams management services to business users. Through the Managed Workplace service, we offered users a range of high-quality business laptops, cloud services, security solutions and technical IT support. Using these elements, users avoid initial set-up costs, simplify their operations and ensure a higher level of security.
We further strengthened cooperation with Datalab and introduced the new Pantheon Web Light licence, a cutting-edge solution for managing the operations of micro and small enterprises. We also ensured security in the services sector, and updated the website design service with the new e-pricelist functionality. Using a QR code, that functionality is an ideal solution for catering establishments and simplifies compliance with the recommendations of the National Institute of Public Health to limit the spread of COVID-19. Use of the e-pricelist contributes to more effective, secure and affordable operations, as the disinfecting of pricelists is no longer required. The e-pricelist, which is accessed by guests by scanning a QR code with their mobile phone, facilitates quick viewing of an establishment’s bill of fare without touching a physical pricelist.
The area of advanced payments services (VALÚ) has been most characterised by growth in the number of users of the VALÚ smart wallet, which already has nearly 70,000 registered users. Our users have executed more than 2 million transactions within the integrated VALÚ ecosystem. In addition to upgrading services with the VALÚ KLUB loyalty programme, we also expanded the range of VALÚ Market products and services, where users can purchase digital goods, such as ski passes, train tickets, and tickets for concerts, performances and sporting events.
The VALÚ KLUB loyalty programme offers more than 2,200 products spanning over 90 categories. Of particular note is the increase in the sale of products intended for remote work (laptops, tablet computers and other computer equipment) due to restrictions linked to the pandemic. With a broader range of products, sales were up by one half relative to 2019, while the number of customers was up by one third.
As the underwriting of insurance for devices during the online purchase process. Telekom Slovenije already has more than 5,000 products available for online sales, with computers, televisions, smart watches, household appliances and other entertainment electronics representing the best-sold categories.
In 2020, we introduced the new NEO Svetfixed packages that include both mobile and fixed services. Distance learning and work from home resulted in a significant increase in users’ needs for higher internet speeds. We therefore increased download speeds to 100Mbit/s on the FTTH and open broadband networks, free of charge, while we also increased the basic upload speed to 100Mbit/s in the NEO C, NEO Svet C and NEO SuperNet packages.
We introduced user profiles on the NEO platform for the easier management and monitoring of TV content, and thus improved the user experience in terms of recommending content based on user habits, and upgraded voice control and the functionality of the NEO smart home service. NEO has become a WiFi access point that facilitates and extends the spatial range of the WiFi signal. To that end, we developed the new NEO TV Lite application for smart TV devices. That application can be ordered by internet subscribers and by IPTV subscribers who have at least one NEO Smartbox.
We offered subscribers a full range of TV programmes, programme schemes and options. We upgraded the TV programme scheme with 40 new TV programmes. During both waves of the epidemic, we upgraded TV programme schemes with additional children’s, film, sports, music and documentary content, free of charge.
During that period, we helped users enjoy their time at home more actively. In the scope of the NEO platform, we worked with 20 fitness instructors to develop the socially beneficial project #vadidoma (#exerciseathome) to ensure we remain physically active. In the area of culture, we served as the main sponsor of the 31st Ljubljana International Film Festival (LIFFe) and ensured that enthusiasts could watch films via the NEO platform. We made it possible for children to watch certain puppet shows organised by Ljubljana Puppet Theatre.
Demand amongst users for the insurance of devices is on the rise. We added additional coverages to the insurance of mobile devices, such as an extended guarantee of up to 36 months from the date of purchase for mobile phones, and coverage for the unauthorised use of the VALÚ smart wallet in the event of burglary, theft or pick-pocketing.
We continued to strengthen our position as a supplier of electricity to households and small business customers. Those services are complementary as services for the home.
We continued to optimise Telekom centres and the network of authorised agents with the aim of ensuring optimal geographic coverage, accessibility to our services and the increased profitability of the sales network. We opened a new Telekom centre at the Aleja shopping mall in Ljubljana.
Our points of sales were closed for several months in 2020, so we transformed them into pick-up points where users could pick up or exchange equipment with prior notice. We opened our first pick-up point according to the drive-in system, which we called Naroči in odpelji (Order and Drive Away), and thus facilitated the pickup of goods and equipment by car. We also facilitated the new video call option to Telekom centres via the Viber and WhatsApp platforms.
We strengthened call centre teams and adapted processes, which enabled the improved responsiveness and availability of call centre advisers. We continued with the Sales Excellence programme, and organised 38 e-courses and 48 webinars between March and December.
Through a comprehensive approach, vertical solutions and access to the most advanced technological solutions, we are transforming and creating user platforms for the future in the private and public sectors. By upgrading the existing infrastructure, we are creating new, more friendly and safer services.
For the provision of comprehensive ICT solutions, we obtain the requisite certificates and partner statuses, and strengthen employee competences. Worthy of mentioning are the following important partner statuses and certificates:
comprehensive portfolio also includes our own services in the Microsoft environment, such as management, maintenance, migration and various consultancy services.
We offer large business users the transfer of their complete server infrastructure to Telekom Slovenije’s cloud or to the clouds of other major cloud service providers.
Cyber security is a mainstay in the handling of operational risks at all organisations, regardless of size and sector. In 2020, we introduced the Varen poslovni splet (Secure Business Web) service, which is intended for all of our subscribers to commercial internet access services and for companies that are not (yet) our subscribers. The aforementioned service effectively prevents access to malicious websites with malware, or phishing pages that obtain passwords and other information from users.
we have been providing the system maintenance, control and management services required for the continuous, secure and reliable functioning of that system.
With regard to IoT services for smart cities, we expanded the range of solutions and verified their functioning in the real environment with NB-IoT communication protocols in 2020. The latter facilitates the effective mass communication of devices connected to the Internet of Things, and represents the next milestone in the development of fifth-generation (5G) mobile networks.
Our single platform facilitates the collection and processing of data, the inclusion of the solutions of partners who are experts in specific areas and a single overview of data. It also includes a control application for municipalities and a mobile application for citizens.
We implemented major pilot projects in parking lots, shopping centres and similar environments where data collection conditions are demanding due to the topology or location of data capture (sensors in shafts and basements). To that end, NB-IoT functions stably and ensures the reliable transfer of data packages when a signal is weaker.
In terms of preparations for the next period of EU development perspectives, we are able to offer a single but modular approach to the development of smart city and community scenarios in joint projects with subscribers, municipalities and public utility companies. This involves more than just IoT solutions; it also includes solutions that provide users a tailored range of municipal services.
eCare is a social security service. The Ministry of Labour, Family, Social Affairs and Equal Opportunities issued Telekom Slovenije authorisation to provide that service.
The solution allows healthcare institutions to provide telemedical treatment to treat patients with the most common chronic diseases (chronic heart failure, asthma, chronic obstructive pulmonary disease, diabetes and high blood pressure), and to monitor and treat them remotely.
In March, together with the Ljubljana University Medical Centre, we developed a national telemedicine centre and the telemedical treatment of patients. Using the telemedicine services makes it easier to remotely monitor COVID-19 patients being treated at home.
In November 2020, we developed a system for the centralised, real-time monitoring of the vital functions of patients seriously affected by the coronavirus, and set that system up in additional COVID-19 wards at the Ljubljana University Medical Centre. Other local and foreign hospitals have expressed interest in the aforementioned solution. Our solutions have proven the clinical success and effectiveness of treatment, and a reduction in the number of premature deaths, complications, visits, hospitalisations and the associated unnecessary costs.
The smart system of integrated healthcare makes it possible for chronic patients to remain in constant contact with healthcare staff from anywhere (e.g. from their home environment). Vital functions can also be monitored remotely, without visiting a clinic. A special remote care service is available to patients, the elderly, disabled persons and others requiring assistance to live independently in their home environment. One of the things that the aforementioned service facilitates is the detection of falls at home.
In the segment of integrated communications (fixed and mobile), we facilitated voice telephony connections to MS Teams services. We updated the portfolio of videoconferencing equipment and services due to the increased need for work from home and virtual meetings.
Domestic wholesale services Revenues from the domestic wholesale market in 2020 were similar to the level recorded in 2019. Revenues from broadband services for operators who roam on the copper access and fibre optic networks were up. Revenues from the leasing of dark fibres were down slightly. We revised and extended the agreement with the operator T-2 on national roaming in the mobile network. The pandemic forced us to expand inter-network voice and data capacities with other operators significantly due to sharp growth in traffic flows.
International wholesale services
The pandemic had a major negative impact primarily on roaming services, as travel was virtually impossible, meaning that traffic from voice services was also lower. A drop in voice traffic was also noted due to increased work from home and growth in the use of alternative technologies that facilitate user calls and content in one place. We maintained our market position, despite the aforementioned negative trend, the migration of traffic to alternative technologies (OTT providers) and falling prices. Special attention was given to cost control in the area of roaming services, as the traffic of Telekom Slovenije’s subscribers in countries covered by the EU tariffs rising sharply as the result of roaming services on the single market (‘roam like at home’). Internet traffic was up, which triggered the upgrading of existing capacities and reduced margins on data services.
The regional fibre optic network represents an important strategic advantage of Telekom Slovenije on the data services market in the region. We provide the highest-quality services through that network. We sell free capacities on the regional network to our international partners and large end-users on the wholesale and retail markets. Connections based on Telekom Slovenije’s backbone network bring an alternative connection between the Balkans and other major hubs in Western Europe.
TSmedia operates on the market as the leading provider of digital media content and advanced advertising solutions in Slovenia. The company co-creates the media space with one of the leading online media in the form of Siol.net, and represents the main Slovenian information centre with an access point to the Slovenian web (najdi.si), the Bizi.si business assistant, the only official telephone directory in Slovenia (itis.si), and outdoor digital screens.
revenue of EUR5.6 million in 2020, a decrease of 11% relative to 2019. That fall was the result of the reduced scope of advertising. Through intensive marketing, the rapid adaption of the portfolio and a focus on niche content, TSmedia increased revenue per SiOL product by 3% relative to the previous year.
Avtenta is the leading partner for managing and implementing SAP solutions and paperless operations on the Slovenian market. It specialises in:
Avtenta generated sales revenue of EUR 8.1 million in 2020, a decrease of 4% relative to 2019. Revenues were down due to stagnating sales of SAP solutions and document systems on the external market.
Soline protects and sustainably preserves natural and cultural heritage in the Sečovlje Salina Nature Park and produces salt using a traditional method.
Soline generated sales revenue of EUR 2.8 million in 2020, a decrease of nearly one half relative to 2019. The main reasons for that decline were the halting of climate fund works and lower sales of products in the company’s own outlets.
GVO is the leading provider of comprehensive solutions in the areas of project design, and the construction, management and maintenance of telecommunications networks in Slovenia. The company is also expanding to related activities in the construction and maintenance of infrastructure facilities. It participates in public-private partnership projects co-financed by the European Union from the European Regional Development Fund and by funds from the Slovenian budget. These are projects to construct and manage open broadband networks in primarily rural areas.
company, primarily as the result of the continuous upgrading and development of the network which, following upgrades on fibre optic lines, requires less maintenance.
IPKO has developed from the first internet provider to cover all of Kosovo into a contemporary company that offers a comprehensive range of convergent mobile communication, fixed telephony, internet and cable TV services. The company generated sales revenue of EUR 56.2 million in 2020, a decrease of 7% relative to 2019. That decrease was primarily the result of a decline in revenues from transit traffic on the wholesale market, while the impact of the pandemic and the inability of ex-pats to return to Kosovo was also negative. In the fixed segment, IPKO faced aggressive marketing campaigns by the competition aimed at attracting new subscribers, but nevertheless successfully stabilised its user base. IPKO remains the strongest brand amongst telecommunication companies in Kosovo.
TSinpo is a service and disabled workers’ company. The company produces and markets cardboard tubes and packaging under its own brand. The company is present primarily on the Slovenian market with small-batch production, but is also present to a lesser extent in neighbouring countries, almost exclusively on the B2B market. TSinpo provides the parent company various support services, such as the control, servicing and distribution of telecommunications terminal equipment, the technical preparation of telecommunication works, the compilation of sales and other packages, the distribution of marketing materials, the preparation and distribution of CRM materials for end-users, the maintenance of the documentary material archive and a correspondence contact centre. It is also present on the market with documentary material scanning and packaging services. TSinpo generated sales revenue of EUR 1.4 million in 2020, an increase of 2% relative to 2019, primarily on account of the introduction of a correspondence contact centre programme adapted to the work of disabled persons.
Telekom Slovenije creates the leading user experience, which is based on the best fibre optic and 4G/5G network for the B2C market, business and the critical infrastructure. We create that experience in accordance with the latest trends, and the needs and wishes of users. We will continue to be the first choice of users and business partners in the future through digitalisation, by ensuring excellence, security and contactless operations, and by adapting dynamically to the constantly changing habits of the users of communication services.
The COVID-19 pandemic also affected the habits, needs and mood of the users of our services. In the digital environment, parents perform their work from home, and children and students of all ages have been forced into distance learning. Meetings, different gatherings and training are being organised remotely, while the volume of online shopping was up sharply due to the closure of shops and other restrictive measures. As a result, the expectations of users regarding communication services have risen considerably, while Telekom Slovenije has remained accessible to them via numerous channels, such as the call centre, the Technical Help Desk, email, points of sale (which we converted into pick-up points) and the digital adviser Maks. Users can manage their communication services using My Telekom, and can find almost everything they need for home, business and entertainment in the Online Shop.
Users were very satisfied with our responsiveness, accessibility and personal approach during these extraordinary circumstances. Also worthy of note in that regard is our social engagement and care for users, which we demonstrated through additional free services and our rapid responses. We achieved an above-average satisfaction index during this period.
36GRI GS 103-1, 103-2, 103-3, GS 102-43, 102-44
| Autumn 2019 | Spring 2020 | Autumn 2020 |
|---|---|---|
| ü stable functioning of the internet | ü stable functioning of the internet | ü stable functioning of the internet |
| ü stable functioning of TV services | ü stable functioning of TV services | ü coverage and stability of the mobile network |
| ü back-viewing as part of TV services | ü back-viewing as part of TV services | ü reliability of the operator |
| ü reliability of the operator | ü reliability of the operator | |
| +3% | 13% | |
| CSI | % CSI of those completely satisfied | CSI |
| % CSI of those completely satisfied | 8% | +2% |
Source: Valicon, Satisfaction of the users of telecommunication services; autumn 2020.
According to consumers, Telekom Slovenije is the operator with the best and fastest mobile and fixed network. The best and fastest mobile network is one of the top five elements for Telekom Slovenije, while the proportions of other Slovenian operators are nearly one half lower. The best fixed network is one of the top three elements, while the fastest network falls somewhere in the middle, but still ranks better than the competition (Source: Valicon, Monitoring of brand strength and image; September 2020).
Of above-average importance to users are the coverage, stability and reliability of the network, while customer satisfaction with those attributes is also above-average (Source: Valicon; Satisfaction with fixed and mobile services; October 2020).
| Customer satisfaction index (CSI) – mobile segment | Customer satisfaction index (CSI) – fixed segment |
|---|---|
Telekom Slovenije improved:
The foundations of the satisfaction of Telekom Slovenije’s business users remain the reliability, quality and functioning of services.
The NEO Smartbox brings greater user satisfaction than other TV interfaces. Users are most impressed by the video store services, recording features, the ability to use applications and the search for content. There has also been a notable improvement in the NEO TV remote control over time (Valicon, Monitoring of product brands – NEO; December 2020).
A total of 88% of NEO users are satisfied, while 55% of them are very and completely satisfied. More than 90% of users are satisfied with the most commonly used user functions in TV services: back view and delay functions (95% of satisfied users), content search functions (92% of satisfied users), remote control functions (92% of satisfied users), and applications (91% of satisfied users) (Valicon, Satisfaction of the users of telecommunication services; autumn 2020).
The proportion of cash payments fell from 86% in December 2019 to 79% in December 2020 due to COVID-19 restrictions. VALÚ raised its brand strength slightly (+2 points) relative to the previous measurement, and maintained 4th place. Growth was recorded in recognition, selection and use (Valicon, Monitoring of product brands – VALÚ; December 2020).
The proportion of completely satisfied business users continues to rise. Satisfaction was up relative to the previous measurement in all elements, most notably in reachability when help is required, responsiveness in terms of help and in the ratio of price to value. Key elements (with the highest level of customer satisfaction and the greatest importance of elements) include the reliability of the operator, and the quality and functioning of services.
Index of business user satisfaction Source: Valicon, Satisfaction amongst business users, June 2020.
Trustworthiness, locally-based and a feeling of security are also demonstrating growth. Payment cards and cash are the most frequently used forms of payment for daily obligations. The volume of payments via online or mobile banking services has risen, while the number of users of digital wallet.
+5%
15%
CSI
% CSI of those completely satisfied
Visitors to Telekom Slovenije’s points of sale express the highest level of satisfaction with the following factors (Mystery Shopper research; second half of 2020):
Source: Valicon, Surveyed NPS, 2020.
Telekom centres
Authorised resellers
Top score per sales channel
Source: Valicon, Mystery Shopper research; autumn 2020.
We measure the satisfaction of visitors to points of sale, satisfaction with contact centres and responsiveness to messages sent via email to [email protected] through Mystery Shopper research conducted twice a year. All channels receive high ratings, which are on the rise.
The Net Promoter Score (NPS) indicates to what extent users are prepared to recommend services to others. Globally, it is the most frequently used metric for monitoring the user experience, which in one point 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 with the users of fixed and mobile services, and at the most important points of contact with the users of our services. After visiting a contact point, we ask users if they would recommend Telekom Slovenije to a friend or acquaintance based on their most recent contact. Different activities and events on the market, including the activities of the competition, affect the value of the NPS. Telekom Slovenije ranks in the top third compared with the NPS of telecommunication operators from other markets.
TSmedia researches 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.
Avtenta measures customer satisfaction once a year through research that includes the measurement of NPS. Avtenta’s customer satisfaction index (CSI) was 64, an increase of 2 points relative to the previous year. The growing trend that we have recorded since 2018 is primarily the result of an increase in the proportion of completely satisfied users (from 9% in 2019 to 17% in 2020).
Satisfaction improved most amongst Telekom Slovenije’s users (CSI = 59, an increase of 4 points relative to the previous year), while the satisfaction of other users was at the level recorded in 2019 (CSI = 69). In general, NPS was down slightly, by 4 points taking into account the entire sample, and by 2 points amongst Telekom Slovenije’s users, which could be the result of fewer contacts during the COVID-19 pandemic. Poorer ratings were given for responsiveness in the elimination of faults, while those surveyed assessed cooperation during the pandemic and the upgrading of systems as good.
GVO regularly measures customer satisfaction after the completion of construction, and once a year by performing an analysis in accordance with the ISO 9001 standard, for the areas of construction and project design. In the area of construction, GVO received assessments of ‘excellent’ (56%) and ‘very good’ (44%) from Telekom Slovenije in 2020. It only received assessments of ‘excellent’ (100%) from external customers. In the area of project design, GVO received assessments from Telekom Slovenije of ‘excellent’ (33%) and ‘very good’ (67%), and only assessments of ‘excellent’ (100%) from external customers.
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 user responses via market research, social networks and quarterly quantitative studies. Market research was not conducted in 2020 due to the COVID-19 pandemic. According to the BrandTrack 2019 market research, IPKO’s NPS (amongst users) for 2019 was positive and higher than other operators for mobile and fixed services. In the mobile segment, IPKO’s users are more satisfied than the users of other operators (8.3 on a scale of 1 to 10), while only a slight change was recorded relative to the previous year (assessment of 7.6) in terms of fixed services (internet and digital TV).
We updated market communication materials in the spring due to the rejuvenation of our umbrella brand and the standardisation of image of our other key brands.
In addition to a fresh image, we also developed and introduced an audio signature that we use at the end of all audio-visual content, and thus further strengthened brand recognition and the standardisation of communications. That audio signature is made up of the letters T and S from the Morse Code. Those letters create a melody by converting the basic colours of corporate identity into an audio recording using selected frequencies and then ‘playing’ them in a chosen rhythm. This creates a unique audio sequence that reflects basic forms of communication in an innovative way, and thus combines audio and visual recognition in one place.
The pandemic also forced us to respond quickly in the area of communications, and adapt marketing campaign processes, communication content and communication channels. We executed around 100 advertising campaigns and projects in 2020.
We created an advertising platform for fixed services starring Katarina Čas, who became the face of NEO campaigns in 2020. We thus presented the NEO experience through a series of humorous TV and online videos. The results indicated that 67% of those surveyed correctly linked advertisements for the new NEO Svet packages to the Telekom Slovenije brand.
promotional offers and the associated communication activities, with an emphasis on Naj packages and promotional offers of different mobile phones. During the first wave of the epidemic, we also communicated about the reliable functioning of our network and our efforts to ensure connectivity in a time when the latter was extremely important. We communicated to users that we #STAYCONNECTED.
In the residential user segment, we placed greater emphasis on TV and online advertising, and updated the digital communication method by introducing the see-think-do-care model, which was well received.
We continuously supported sales activities by communicating the ever-expanding portfolio of the Loyalty Programme, through monthly Modri Fon campaigns and through the ‘Black Friday’ campaign in November, in which we captured various aspects of the portfolio, from the Loyalty Programme to Turbo WiFi services.
We primarily addressed the segment of young users through digital activities and channels, including the Neki Neki YouTube channel. We communicated a special offer of mobile phones with the option of ordering via the web. Through the ‘Neki te rabim’ (I Need You For Something) campaign, we presented the new ‘Pripelji prijatelja’ (Invite a Friend) offer, through which both friends save on subscription fees for the entire year.
www.telekom.si/poslovni
*Navedene akcijske cene veljajo do 10. 11. 2020 ob sklenitvi oz. podaljšanju mobilnega naročniškega razmerja s paketom Naj C akcija (z vezavo za 24 mesecev) z obročnim plačilom kupnine za napravo v 24 zaporednih mesečnih obrokih (v znesku 37,25 EUR brez DDV za Samsung Galaxy Note20 Ultra 5G, skupaj 893,90 EUR brez DDV; v znesku 18,27 EUR brez DDV za Samsung Galaxy S20 FE, skupaj 438,49 EUR brez DDV), ki se obračunajo prek mesečnega računa. Velja za vse, ki nimajo veljavnega Aneksa št. 20/2013 (z vezavo naročniškega razmerja za 12 ali 24 mesecev) in izpolnjujejo ostale pogoje akcijskega nakupa naprav. Ponudbe veljajo od prodaje zalog. Cene so v EUR brez DDV. Slike so simbolične. Telekom Slovenije, d.d., si pridržuje pravico do sprememb cen in pogojev.
Z več informacij o ponudbi, akcijskem nakupu naprav, obročnem plačilu in možnosti vezave za 12 mesecev obiščite www.telekom.si, Telekomov center, pooblaščeno prodajno mesto ali pokličite 080 70 70. Telekom Slovenije, d.d., Ljubljana
Z naročilo pokličite brezplačno številko 080 7070 ali pišite na [email protected].
| 24 X | 18 | 27 €* | ali 438,49 €* |
|---|---|---|---|
| ¬vrhunska kamera, ki ujame vaše poslovne vizije | ¬na voljo v več živih barvah za živahne poslovne izzive | SAMSUNG Galaxy S20 FE | V PAKETU NAJC AKCIJA |
| ¬osebni računalnik, ki ga spravite v žep | ¬SPen pisalo - pretvorite zapiske v besedilo in ideje v podpis pogodbe | SAMSUNG Galaxy Note20 Ultra 5G | 24 X 37,25 €* ali 893,90 €* |
VES POSEL NA VAŠI DLANI z naprednimi poslovnimi pomočniki.
We communicated the range of VALÚ smart wallet services via digital campaigns through which we encouraged the updating of profiles, while regular activities were carried out for the downloading of the VALÚ application. In October, we presented the new PIAZZ brand, under which we launched a new online marketplace. That launch was accompanied by a campaign with the slogan ‘Vsakič več zame. Obišči PIAZZ, top spletni nakupovalni plac’ (More for Me Every Time. Visit PIAZZ, the Best Online Marketplace), which was followed by continuous communication on the web.
During the first half of the year in the segment of small and medium-sized enterprises, we communicated about services that facilitate secure and simplified operations, and work from home (Office 365, Varen splet (Safe Web), Kaspersky, the Poslovni net (Business Net) package, and Mobilna blagajna (Mobile Cash Register) for the simple issuing of invoices). In the autumn, we presented a new communication platform that included a mobile campaign with the Naj C package and two Samsung mobile phones, a campaign with business packages and professional Bosch and Philips devices, a campaign for the design of a website with the e-pricelist and a campaign for VALÚ and the Poslovni net (Business Net) package.
We used various media channels throughout the year to present the eCare service to the elderly and their families. The service facilitates carefree and safe living for older people, especially if they live alone.
We organised nine webinars over a four-month period for key business users. Those webinars included current topics in the areas of cyber security, secure commercial mobility, firewalls, workplace management, eCare and video communications. They were well received, as we averaged 90 registered participants who asked lecturers many questions.
We also participated in the virtual Corporate Security Days event, at which our Cyber Security Operation Centre received an award for best innovative security solution.
Through our smart city solutions, we serve as an important partner to municipalities and public utility companies in raising the quality of services provided to citizens, in reducing emissions and water losses, in energy efficiency and in the improved quality of life. In Zagorje ob Savi, we set up solutions which, in the form of a smart street lamp, also facilitates the monitoring and analysis of different factors for the better planning and management of resources, such as public lighting, parking spaces, public utility services, etc. Together with partners, we designed advanced smart city solutions in Novo Mesto, and prepared a range of IoT solutions for potential subscribers with the common name of Modro mesto (Smart City).
We prepared video content in the following four areas: Smart City, video communication, remote metering reading and digital messaging and 20 different flyers for the B2B market.
resulted in fewer events, but we nevertheless attended 28 events and promotional presentations in 2020. In the area of direct communication, we addressed users via 450 direct-mail and text-message campaigns. We adapted the distribution of direct mail and prepared the majority of content in electronic form.
We prepared seven catalogues for users in 2020, four of which were sales catalogues, while two catalogues were intended for small and medium-sized enterprises and one catalogue of products was for members of the Loyalty Programme. We also prepared 100 other pieces of printed materials (flyers, leaflets and brochures).
We opened a new Telekom centre at the Aleja shopping mall in Ljubljana, and visited more than 15 cities and towns across Slovenia with the NEO house. We organised 22 promotional days between July and October.
The main www.telekom.si website recorded nearly 28.5 million visits, an increase of almost 15% relative to 2019. The proportion of access to the www.telekom.si website using mobile devices continues to rise, and reached 71% at the end of the year.
On all social networks where the Company is present (Facebook, Twitter, Instagram, YouTube and LinkedIn), we have one of the largest bases of followers among companies in Slovenia who transact directly with users.
| MARKETING | AND SALES | ACCOUNTING | REPORT | SUSTAINABLE | DEVELOPMENT | NETWORK, | TECHNOLOGIES AND IT | BUSINESS | REPORT | THE TELEKOM | SLOVENIJE GROUP |
|---|---|---|---|---|---|---|---|---|---|---|---|
| 206,868 | 3,553 | 8,021 | 13,742 | 12,352 |
Also rising is the number of followers of the VALÚ, IZI and PIAZZ brands on social networks, where we are present on Facebook and also on Instagram with the VALÚ and PIAZZ brand. We executed a communication campaign for the IZI brand on the new, fast-growing TikTok social network, while we communicate PIAZZ on the LinkedIn social network in order to search for and connect with new partners.
Effective user lifecycle management is the aim of every organisation. In 2020, we updated rules on the execution of campaigns and adjusted the time of user contacts, so that the latter would be continuously informed about new developments, the current portfolio and personalised content to the greatest extent possible. We sent more than 10 million emails, executed 1,300 text-message campaigns, sent more than 1.5 million short text messages and organised nearly 700 call campaigns with more than 35,000 calls. We simultaneously update our systematic support with learning technology and improve the success of automated personalised campaigns.
We are 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. The aforementioned documents are also published on our websites. To that end, we follow the recommendations of the AKOS relating to concern for users.
Through its responsible editorial policy, TSmedia ensures safe and transparent access to freely accessible content in our media. We call on those making comments on the Siol.net digital media to respect the etiquette of online communication, and moderate user comments, so that comments encouraging hate speech are not published.
No breakthrough has ever occurred overnight. And every breakthrough is simply the first step in a new direction. Thus, the establishment of fifth generation mobile networks is not our goal, but rather our path. A path that will take Slovenia from the era of kilobit and megabit speeds to a gigabit decade. Every step opens a new opportunity; through new opportunities, we will connect the increasing number of smart devices, smart industries, smart homes and smart cities more rapidly, more securely and more reliably. We take steps on the path to technological development prudently and responsibly, and by consistently respecting the environment in which we work and live.
We can no longer imagine life without high-capacity communication services every step of the way.
Telekom Slovenije @TelekomSlo
Telekom Slovenije participates in the EU’s Horizon 2020 programme in the area of research and development. That programme supports top-level international research projects with the aim of addressing social challenges with greater success and thus increasing the competitiveness of the EU in the future.
We focus primarily on the development of technologies that will form the market of state-of-the-art telecommunications in the near future. Most important are activities relating to 5G networks. Internet of Things technologies (smart grids, connected homes, smart cities, eHealth, etc.), and cloud and big data services will facilitate a crucial step forward in the future.
We applied as a participating partner for several EU
In 2020, the Advertising Tribunal of the Slovenian Advertising Chamber ruled in favour of a complaint filed by Telekom Slovenije. The Advertising Tribunal ruled that the use of the superlative ‘largest GIGA network in Slovenia’ by Telemach is not permitted. The Market Inspectorate of the Republic of Slovenia also found that the aforementioned company breached the Consumer Protection Act in terms of unfair business practices, and therefore ordered Telemach to rectify the aforementioned breach and cease with misleading advertising. TSmedia received a negative opinion from the Advertising Tribunal regarding the publication of paid-for articles. The company immediately rectified that breach. Telekom Slovenije Group companies did not record other breaches of codes or voluntary standards in the area of marketing communication.
38 GRI GS 103-1, 103-2, 103-3
We participated in two major research and development projects in 2020: 5G Security and 5G-LOGINNOV, while we also began activities on the EU 5G-IANA project, which will formally start in 2021.
The 5G-LOGINNOV European development project is being financed by the European Commission in the scope of the Horizon 2020 programme. The project includes 15 partners from several European countries, including the Port of Koper, Telekom Slovenije and Internet Institute from Slovenia. The 5G-LOGINNOV project focuses on the 5G network, in terms of developing innovative logistics solutions in the scope of Industry 4.0.
Telekom Slovenije will set-up a development-test 5G network in the vicinity of the Port of Koper. The aim of that network will be the development and testing of solutions to optimise processes, increase efficiency and reduce environmental impacts in specific cases where the network will be used in the management of transport logistics.
When testing solutions, project partners will use the latest fifth generation network technologies and devices, sensors, automation, analytics and traffic management systems, including the use of self-driving freight vehicles. Other project partners will test similar solutions at ports in Hamburg and Piraeus. The project will last three years and is expected to be completed in September 2023.
As part of the Horizon 2020 programme, we will participate in another European 5G development project: 5G-IANA. The aim of the project is to set up an open experimental 5G platform for the rapid and effective development of services in connection with self-driving vehicles and communication between devices in vehicles. This will accelerate the development of the software required for the functioning of vehicles of the future.
The platform is intended primarily for small and medium-sized enterprises that will get the opportunity to develop, set up and test their innovative solutions. To that end, Telekom Slovenije will provide the appropriate 5G infrastructure and offer a cloud service infrastructure and the necessary virtualised environment, in which partners will establish virtual network functions (VNFs). Above all, the project will facilitate the development of services in the area of artificial intelligence and machine learning intended for use in the automotive industry. The project will last until the middle of 2024.
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 the radio and fibre optic access networks in 2020. Development activities focus on the Internet of Things, 5G technology and the provision of services through the mobile network.
We provided users transfer speeds of up to 1Gbit/s on the fibre optic network back in 2007, which more than meets the bandwidth needs of contemporary and future telecommunication services.
We are building a network in urban and rural areas in accordance with the development strategy, economic criteria and the expectations of users and the Company’s owners. We provided users transfer speeds of up to 1Gbit/s on the fibre optic network back in 2007, while we are also introducing an advanced technological solution that will facilitate symmetrical gigabit connections on the fibre optic network with a speed of up to 10 Gb/s. In that respect, we are consistently fulfilling all commitments we have given regarding the construction of a fibre optic network where we have expressed interest, and are pursuing the objective to develop the communications network in Slovenia. We are working with municipalities, local communities and other infrastructure operators in the joint construction and upgrading of the infrastructure, and are thus making it possible for users to connect to the broadband network. As a result, we are accelerating the discontinuation of copper networks and migrating to high-capacity and reliable fibre optic networks.
We continued to upgrade base stations at existing locations, modernised 2G, 3G and 4G equipment, and updated software in 2020. We increased the capacities of base stations due to the rising volume of mobile data traffic. We also increased capacities due to work from home and distance learning, and improved the external and internal coverage of the mobile radio signal, in part through the construction of new locations. We upgraded the 4G network to 5G in the existing 2,600MHz frequency band.
| Network Type | Number of Base Stations |
|---|---|
| GSM | 1,342 |
| UMTS | 911 |
| LTE/4G | 1,372 |
| 5G | 249 |
Access network in Slovenia at the end of 2020. We currently cover 96.64% of the population with the LTE/4G signal, 87.26% of the population with the LTE/4G+ signal and 32.44% of the population with the 5G signal. A total of 123 small cells were also included for internal coverage needs.
According to internal measurements, Telekom Slovenije has the leading mobile network in terms of the following key elements of a superior user experience:
Telekom Slovenije upgraded the network with 5G technology in 2020. The first phase of the upgrading of the network with 5G technology is based on the non-standalone (NSA) principle, where the control element continues to use the 4G network. This required the modernisation of and upgrading of software at 4G locations to which we connected the 5G network. We are planning a standalone (SA) implementation in the future, meaning that the 5G network will function independently. 5G technology has brought users faster and more reliable mobile data transfer and reduced lags relative to 4G.
In the scope of upgrading the network with 5G technology, the first production verticals were connected, to bring digitalisation closer to the manufacturing sector and the economy as a whole. Coverage of the population with the 5G network stood at 32.44% at the end of 2020 in the existing 2,600 MHz frequency band, primarily in cities, business centres and along transport routes. Telekom Slovenije is planning the smart 5G infrastructure in such a way that we will be able to facilitate numerous virtual dedicated networks on that infrastructure for specific business verticals, such as healthcare, energy, transport, factories, smart cities and communities, etc.
The completion of the frequency spectrum auction in Slovenia, which will facilitate the use of the full potential of 5G technology is expected in 2021. The next phases of 5G evolution will follow.
The need for even higher-capacity mobile internet access is rising every year, while that trend was even more evident in 2020 due to the extraordinary circumstances.
We provided our users Voice-over LTE (VoLTE) services, for which we carried out the comprehensive optimisation of the radio element of the network. We thus facilitated the increased use of the most advanced and highest-quality voice services, so that we will free up the frequency band intended for 3G (UMTS), which is slower in terms of data transfer compared with 4G and 5G and makes poorer use of the frequency domain, and use it for 4G and 5G. Accordingly, we are planning to stop using 3G by the end of 2023.
We implemented nearly 270,000 activities for the provision of services in 2020. We manage the entire segment of residential users, SOHO and large business users, where we ensure the rectification of service-related incidents, and the inclusion of new users and changes to the configurations and user devices of existing users. We also implement technical solutions adapted to the needs of large business users and provide connectivity at major sports and social events. We are continuing to optimise processes and activities, which shortens time-to-market and facilitates the achievement of KPIs.
We are implementing the S.M.A.R.T. development and training programme, which affects the excellence of the user experience. We achieved a high transactional NPS (technician visit), which was 81 index points in 2020. We are also implementing sales activities and providing advisory services to users.
We ensure the smooth functioning of the network and services 24 hours a day, every day of the year. Due to the extraordinary circumstances during the pandemic, numerous activities were required in connection with the expansion of necessary capacities, support for remote work, the adaptation of the portfolio to COVID-19, the adaptation of call centres and Telekom centres, analytics and the extraordinary notification of the general public. All of society made a lightning-quick and mass migration to work from home and distance learning. The area of ICT and network services had to be one step ahead in order to support that migration. This was accomplished primarily through the necessary expansion and testing of remote access systems. We achieved a notable rise in satisfaction (NPS) with the Technical Help Desk. At the beginning of the year, we introduced digital technical support in the form of bot technology.
In that respect, we successfully addressed the growing number of challenges in the area of cyber security throughout the year. We continued to develop the Cyber Security Operation Centre, for which we received a prestigious security product of the year award. Through that centre, we provide an increasing number of companies and organisations additional security services. We needed to increase capacities in the network and at inter-network connections due to the need for increasingly higher data transfer speeds for end users and companies.
Data traffic is continuously growing in terms of speed and volume, as is video traffic, while voice traffic rose by close to 80% during the epidemic. We implemented numerous activities to ensure the undisputed best network. We supported the testing of network speeds via an application for that purpose outside of user data quotas (AKOS test net, Speedtest). We increased the necessary network capacities remotely or in the field, increased speeds in the fixed and mobile network, and did everything necessary to ensure the best possible user experience. Previous investments in the 4G+ and fibre optic networks, a robust core network and the IT infrastructure paid off, otherwise we would have been unable to control the situation.
We made the necessary upgrades to and generational replacements of various service platforms. In that respect, we took the first step in the upgrading of the network to 5G technology. We are aware of the importance of the security protection of systems, and thus dedicate a great deal of activities to enhance the cyber security of those systems. Due to the need for the increased capacity and availability of the basic infrastructure, we upgraded the core and aggregation network, in part due to the introduction of the 5G network. We also dedicate a great deal of attention to improving the security aspects of internal business network and data centres, where we are migrating to software-defined networking (SDN) technology.
One of the strategic priorities of our operations is compliance with the highest standards in the area of information and cyber security. Another priority is ensuring business continuity, even in the extraordinary circumstances to which we are witness due to the pandemic. Both management systems, in particular the BCMS, have proven to be very important support tools in these extraordinary conditions in terms of ensuring the functioning and security of the network, as well as our key services and processes. To that end, we completed various specialist certifications in the area of information technology.
www.telekom.si/poslovni
*Navedene akcijske cene veljajo do 10. 11. 2020 ob sklenitvi oz. podaljšanju mobilnega naročniškega razmerja paketom Naj C akcija (z vezavo za 24 mesecev) z obročnim plačilom kupnine za napravo v 24 zaporednih mesečnih obrokih (v znesku 37,25 EUR brez DDV za Samsung Galaxy Note20 Ultra 5G, skupaj 893,90 EUR brez DDV oz. v znesku 18,27 EUR brez DDV za Samsung Galaxy S20 FE, skupaj 438,49 EUR brez DDV), ki se obračunajo prek mesečnega računa. Velja za vse, ki nimajo veljavnega Aneksa št. 20/2013 (z vezavo naročniškega razmerja za 12 ali 24 mesecev) in izpolnjujejo ostale pogoje akcijskega nakupa naprav. Ponudbe veljajo od prodaje zalog. Cene so v EUR brez DDV. Slike so simbolične. Telekom Slovenije, d.d., si pridržuje pravico do sprememb cen in pogojev.
Z več informacij o ponudbi, akcijskem nakupu naprav, obročnem plačilu in možnosti vezave za 12 mesecev obiščite www.telekom.si, Telekomov center, pooblaščeno prodajno mesto ali pokličite 080 70 70. Telekom Slovenije, d.d., Ljubljana.
Zanaročilo pokličite brezplačno številko 080 7070 ali pišite na [email protected].
| 24 X | 18 | 27 | €* | ali 438,49 €* | |||
|---|---|---|---|---|---|---|---|
| ¬vrhunska kamera, ki ujame vaše poslovne vizije | ¬na voljo v več živih barvah za živahne poslovne izzive | SAMSUNG Galaxy S20 FE | V PAKETU NAJC AKCIJA | ||||
| ¬osebni računalnik, ki ga spravite v žep | ¬SPen pisalo - pretvorite zapiske v besedilo in ideje v podpis pogodbe | SAMSUNG Galaxy Note20 Ultra 5G | 24 X 37,25 €* | ali 893,90 €* |
VES POSEL NA VAŠI DLANI z naprednimi poslovnimi pomočniki.
Together with partners, we developed and presented a technological solution back in 2019 for the remote telemedical treatment of patients with chronic diseases. For the needs of monitoring COVID-19 patients, we upgraded the aforementioned solution together with the Ljubljana University Medical Centre to make it possible for medical staff to monitor coronavirus patients remotely. In cooperation with the Ministry of Public Administration, we developed an application for recording the health of employees that facilitates the safe and efficient recording of the health status of employees in healthcare institutions who are in contact with patients. Using the application, data that used to be recorded on paper are now communicated by employees securely and digitally. If an employee shows signs of COVID-19 infection, it is very important that they do not come into contact with co-workers and patients, and stay at home.
goods, and continued planned steps to modernise business support systems. Because the call centre, in combination with a text-message campaign, became the primary sales channel, we upgraded the link between incoming call contacts and the SAS, and made adaptations to electronic signing. We further developed the self-service My Telekom portal. We also introduced information support for numerous other sales activities, such as video identification for the contactless conclusion of subscriber agreements. We provided technical support for the PIAZZ digital marketplace. Through the stabilisation and continued development of the NEO platform, we added new functionalities according to the product plan: new secure home functions and devices, an Info link, an application for smart TV, games, new video content, etc. We upgraded the functionalities of the VALÚ solution, as appropriate.
Together with Iskratel, Telekom Slovenije established the first test 5G network in Slovenia at Iskratel’s production facility in Kranj. We thus enabled the development of new business models and the testing of a smart 5G infrastructure that facilitates numerous virtual dedicated networks for specific business verticals, including factories. Many activities during the year we dedicated to IoT projects for smart cities and communities. Based on the successful completion of testing, we launched the first commercial solution for remote meter reading. We were also active in the area of smart city verticals, such as parking lots, environmental sensors, lighting, etc. We set up two commercial solutions in the area of smart parking. Given major changes in the global development of the IT architecture in the direction of cloud platforms and applications, we began to implement containerisation technologies.
We believe that a smiling face and a kind word are particularly priceless in these extraordinary circumstances. Thus, during this period of limited social contacts, we have dedicated special attention to the most vulnerable: elderly people living alone and in retirement homes, and students from socially disadvantaged environments across all of Slovenia. Through donations, we support hospitals in the purchase of urgent medical equipment, and help firefighters who unconditionally personify the values of humanitarianism, volunteer work and solidarity.
The best feeling is when you are not alone in times of distress.
The Telekom Slovenije Group understands sustainable development as the responsible management of the economic, social and environmental impacts of our operations. It is an integral part of business processes and is one of the strategic policies of the Telekom Slovenije Group. We attempt to integrate the principles of sustainable development into operations, products, services and content to the greatest extent possible. When reporting on sustainable development, we focus on the material topics that are presented in the table below, and include content throughout the entire report.
| anti-corruption | competition protection | taxes | employment | labour/management relations | occupational health and safety | education and training | diversity and equal opportunities | human rights | non-discrimination | public policies | socioeconomic compliance | marketing and labelling of products | accessibility to media content | provision of access to ICT products and services | technological applications | energy | water and wastewater (Soline) | waste | emissions | biodiversity | environmental compliance |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Reporting on the operations by the Telekom Slovenije Group and Telekom Slovenije is carried out in line with the requirements of the International Financial Reporting Standards and national legislation (ZGD-1J). We report non-financial information, i.e. progress in environmental, social and economic areas, comprehensively in annual reports in accordance with the international Global Reporting Initiative (GRI) standards. We have been reporting in accordance with the GRI Guidelines since 2009. Since 2016 we have been reporting in accordance with the latest Global Standards, while taking into account previous generations of GRI recommendations for the ICT and IT sectors, and the media. Compliance with those guidelines is verified by independent external institutes.
Non-financial information for our stakeholders is included in all chapters, which can be seen from the references to GRI indicators throughout the report and from the transparent GRI content index. The inclusion of information regarding non-financial operations and the diversity of management and supervisory bodies is thus in line with the requirements of the new Companies Act (ZGD-1J) adopted in 2017. The operating highlights take into account the Alternative Performance Measures set out in the ESMA Guidelines.
The Controlling and Strategy and Public Relations organisational units coordinate the compilation and publication of the annual report. Data and information are captured with the help of structured questionnaires, the content of which is prepared by experts for specific areas from Telekom Slovenije, GVO, TSmedia, Soline, Avtenta, TSinpo and IPKO. The Accounting Report is compiled by the Finance and Accounting organisational unit.
as well as users, employees and other stakeholders. Reporting relates to the Telekom Slovenije Group. Where standard reporting guidelines are not yet in place for the entire Group, it is specifically stated that the content applies to the parent company Telekom Slovenije or a specific Group company. There were no significant changes to data from previous years or to reporting limitations. In the event of changes in a methodology used to disclose data, those changes and the associated reasons are clarified in the accompanying comments. We sold the subsidiary Planet TV in 2020. For this reason, some data are not directly comparable with previous years, which is explained in each specific case or is evident from data in tables.
When defining the scope and content of the annual report, we performed materiality and stakeholder analyses. We verified the scope, content and topics of the annual report for 2020 using a questionnaire found on the website www.telekom.si. That questionnaire was completed by 204 stakeholders from Slovenia. We asked each stakeholder group to assess individual interest on a scale of 1 to 5, where 1 means least important and 5 means most important. We also asked stakeholders which content from the annual report is most important to them and which content they would like us to report on to a greater extent.
Based on the results, we defined categories of interests most important to individual stakeholders, by selecting those with a score exceeding 3.8. If the scores of interests for various stakeholder groups were duplicated, we took into account the interest for the group that gave the highest score. Their importance in terms of their impact on the operations of the Telekom Slovenije Group was assessed by the heads of Telekom Slovenije’s organisational units.
On that basis, we prepared a materiality matrix that is presented below. The results of stakeholder analyses are reviewed every year by experts who prepare the content for the annual report of the Telekom Slovenije Group and Telekom Slovenije. That review was carried out in 2020 via an online workshop attended by 54 persons responsible for preparing content. The results of stakeholder analyses serve as the basis for defining material topics and the scope of annual GRI GS disclosures, which are evident in point 2.10 Content according to GRI Reporting Standards and the interactive references throughout the entire annual report. We do not report on immaterial topics.
43 GRI GS 102-46, 102-48, 102-49, 102-50, 102-51, 102-52
MEDIUM-HIGH
MEDIUM-HIGH
HIGH
HIGH
11, 19, 12, 30, 28, 29, 10, 15, 27, 14, 18, 17, 4, 26, 9, 5, 13, 16, 21, 2, 1, 3, 24, 20, 8, 25, 7, 6, 23, 22
Disclosures of non-financial data and the sustainable development report are submitted for independent external verification, which includes the verification of reporting according to the GRI Standards. The statement regarding external verification of the sustainable development report according to the GRI GS may be found in section 2.11 Sustainability report assurance statement.
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For the fourth year in a row, we prepared an overview of how and in what areas we contribute to the realisation of those goals. We supplemented that overview this year with the specific business objectives of the Telekom Slovenije Group.
| SDG | Our measures / our efforts | Our objectives |
|---|---|---|
| To provide all persons, particularly the poor and vulnerable groups, equal access to economic resources, basic services, natural resources, new technologies and financial services. | * We are investing at an accelerated pace in the upgrading and expansion of telecommunications networks and in next generation technologies, such as 4G/LTE, 4G+/LTE and 5G, and in the construction of the most advanced fibre optic network in urban centres and rural areas. | |
| * We offer adapted services and devices to vulnerable groups, such as the elderly and the hearing impaired. | ||
| * We develop financial and insurance services that are accessible to everyone. | ||
| * TSinpo employs disabled persons within the Telekom Slovenije Group. | ||
| * As a sponsor and donator, we also support humanitarian organisations, and help needy individuals through those organisations. To that end, we also support organisations and projects in the areas of culture, education and sport. | - To ensure access to 5G technology by 94% of the Slovenian population by 2025 and by 99% of the population by 2030. | |
| - To facilitate fully independent access to Telekom centres and points of sale by disabled persons by 2025. | ||
| - We are committed to giving back to the social environment and vulnerable groups to the best of our ability, and to ensuring the security of the internet, connections and systems. | ||
| To develop a high-quality, sustainable and reliable infrastructure that will support economic development and human welfare, with an emphasis on affordable and attractive access. | * To achieve universal access to healthcare, high-quality healthcare services, and safe, effective and affordable medicines. | |
| * To provide the elderly and other users eCare services that ensure longer and safer living at home. We have developed a telemedicine solution that facilitates the remote monitoring of patients’ health by medical staff. | - To provide telecare and telemedicine to 10% of the Slovenian population older than 65 years (around 40,000 citizens) by 2030. | |
| To improve energy efficiency. | * Through an energy management system and other measures, we reduce the consumption of energy and the environmental burden of our activity. | |
| * We facilitate the purchase of electricity by users under affordable conditions. | - To reduce electricity consumption by 0.5% annually. | |
| To achieve the sustainable management and efficient use of natural resources. | * We reduce the consumption of energy and improve our energy efficiency through an energy management system. | |
| * We reduce the consumption of paper via paperless operations. | - To reduce fuel consumption by 1% annually. | |
| To promote inclusive and sustainable economic growth, full employment and decent work. | * To provide business users ICT services and solutions to facilitate the development of operations and digitalisation. | |
| * As a family-friendly company, we make it easier for employees to achieve a work-life balance, and ensure a safe, healthy and stimulating work environment. | ||
| * We are committed to respecting human rights, and will draw up rules and appoint a human rights officer in 2021. | - To promote intergenerational cooperation and |
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implement measures aimed at the transfer of knowledge.
To promote sustainable urbanisation, and the sustainable planning and management of cities. Implementation of an integrated policy for inclusion, the efficient use of resources and the mitigation of and adaptation to climate change.
We integrate ICT solutions for companies and local communities for the comprehensive and safe management of the urban infrastructure. Solutions facilitate smart lighting, parking, the monitoring of natural resources, waste management, asset tracking, etc.
To design and implement an integrated solution for managing traffic flows in urban settlements, to have an overview of air and water quality, and to manage energy smartly and efficiently.
Our key stakeholders include employees, shareholders and potential investors, the 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. We strive for an inclusive and long-term relationship with stakeholders, through which we strengthen trust and cooperation. The strategy for communication with those groups is defined in Telekom Slovenije’s Corporate Governance Policy. Based on direct and indirect relations (research, data analyses, statistics, etc.), we identify mutual impacts and their interests.
| Stakeholders | What is most important to them? | Frequency of contact | How are they included? | Activities |
|---|---|---|---|---|
| Shareholders, analysts and other financial circles | Effective corporate governance; long-term value of an investment; operations that facilitate the payment of stable dividends; relevant, current and timely information regarding operations and TLSG shares. | Responses to questions sent to the following contact emails: ir\@telekom.si, skupscina\@telekom.si, dividenda\@telekom.si; quarterly contact through the publication of reports on operations and the issue of the electronic TLSG newsletter; once a year in conjunction with the publication of the annual report; at General Meetings of Shareholders; periodic contact at investment conferences. | Investor relations section of the Company’s website; participation at investment conferences; via email (ir\@telekom.si, skupscina\@telekom.si, dividenda\@telekom.si); publication of business information in the Ljubljana Stock Exchange’s SEOnet system. | We communicated regularly, proactively and comprehensively with existing and potential shareholders regarding the operations of the Telekom Slovenije Group. We transparently disclosed expected deviations from annual plans as the result of the COVID-19 pandemic. We organised the 31st General Meeting of Shareholders. We paid shareholders gross dividends of EUR 3.50 per share in June 2020. |
| Users | Prompt elimination of faults; security of personal data; superior quality networks and the development of services that meet their needs and expectations; |
We present users new services, the portfolio and content that is important to them through numerous personal and electronic channels. Due to measures to limit the spread of COVID-19, we transformed Telekom centres into pick-up points, and organised the first pick-up point according to the drive-in system, called Naroči in odpelji (Order and Drive Away).
We currently cover 96.64% of the population with the LTE/4G signal, 87.26% of the population with the LTE/4G+ signal and 32.44% of the population with the 5G signal. A total of 123 small cells were also included for internal coverage needs.
We improved the already high level of satisfaction of the users of fixed and mobile services. The call centre received 565,518 calls and 161,620 emails from users in 2020, we established the digital adviser Maks and actively communicated via social networks.
and training in 2020.
During the 2019/2020 scholastic year, Telekom Slovenije supported nine secondary school and university students by providing them company scholarships, bringing the total to 24 scholarship holders.
We maintained regular dialogue with social partners (notifications, joint consultations, issuing of consents, etc.). The Works Council met at seven regular and two correspondence sessions in 2020.
responsible energy and waste management in the supply chain.
Annual questionnaire;
We settled our liabilities by the agreed payment deadlines, and even before those deadlines in the event of surplus liquid funds.
We dedicated a great deal of attention to addressing challenges as they arise.
Based on an assessment of each supplier, we define a development strategy, possibilities for additional cooperation, or measures to mitigate/eliminate risks.
The transparent and equal treatment of potential suppliers is ensured through a standardised procurement procedure that defines clear selection criteria.
limitation of environmental impacts and a focus on sustainable development.
Periodic contact in the event of legislative changes;
We consistently adhered to applicable laws, regulatory measures, regulations and best practices (i.e. the abolishment of roaming within the EU) in all phases of the business process and operations.
We responded by preparing comments to published analyses of relevant markets.
guaranteed functioning of the network in emergency situations.
Regular cooperation in the scope of humanitarian and other activities;
Sponsorships and donations were earmarked for organisations and projects at the national and regional levels. The Telekom Slovenije Group earmarked EUR 2.5 million for those purposes in 2020.
Communication with stakeholders is open, balanced, proactive and reactive. We focus on balancing communication on the domestic and foreign markets, and on the provision of accurate, relevant and clear messages. We report on communication with stakeholders in specific sections where they are addressed comprehensively.
In accordance with the Access to Public Information Act (ZDIJZ), we publish on the websites of Telekom Slovenije and individual subsidiaries basic information regarding representatives, members of management and supervisory bodies (the agreed amount and payment of remuneration to those bodies), and regarding transactions concluded in connection with donations, sponsorships, consultancy and copyright or other intellectual services (type of transaction, contractual partner, value of transaction, date of conclusion and duration of transaction).
We proactively published information and handled requests for access to information, and implemented support activities (e.g. employee training) in 2020. We have appointed a public information officer, while 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 individual subsidiaries.
In the comprehensive management of public relations, special attention is given to relations with the media, through which we disseminate information regarding the activities of the Company and Group. Long-term, open, proactive and correct relations with journalists were particularly evident in 2020, when we again responded rapidly and effectively in communication with the media.
communication regarding the functioning of our network, regarding our socially responsible activities and regarding the Company’s general response to the changing conditions. We also communicated with the media about corporate topics, the latest developments in the portfolio, and development and technological topics, while special attention was given to the introduction of the first national 5G network and to open communications in that regard. We responded continuously to journalists’ questions. Telekom Slovenije was mentioned in around 5,000 articles in 2020, where the main topics were our services, social responsibility and the network. We responded to around 350 questions from national, regional, local and specialised media outlets. We issued 75 press releases in 2020, three of which were for foreign media outlets.
Regulatory bodies in the countries where Group companies operate have a significant impact on our operations, as telecommunications represent one of the most regulated economic sectors. The competent ministries and other government bodies also play an important role, particularly in terms of legislation. Telekom Slovenije strictly complies with applicable regulations and the recommendations and decisions of regulatory bodies, and responds with sound expert arguments, as necessary. Through expert proposals, we play an active role in the drafting of legislative changes in the field of electronic communications within the framework of legal possibilities. In addition to the ICT sector, we also operate in other sectors governed by their own regulations and rules.
45 GRI GS 102-43, 102-44
46 GRI GS 102-43, 102-44
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 measure | Calculation methodology | Selection of measure |
|---|---|---|
| EBIT (earnings before interest and taxes) | Operating revenues – operating expenses | One of the key indicators of the performance of a company, and an indicator of the profitability that a company achieves in the performance of its core activity. |
| Adjusted EBIT (operating profit) | Operating revenues – operating expenses taking into account one-off events that are not part of ordinary operations, such as one-time impairments of assets, adjustments for IFRS 16, etc.; stated under the calculation table. | We eliminate the effects of one-off events for the sake of consistency and the comparability of operations with the previous year. |
| EBITDA (earnings before interest, taxes, depreciation and amortisation) | EBIT + depreciation and amortisation | Operating profit or loss before write-downs. Indicator of the performance of a company in its core activity and a good approximation of cash flows from operating activities. |
| Adjusted EBITDA | EBIT + depreciation and amortisation taking into account adjustments for one-off events that are not part of ordinary operations, such as one-time impairments of assets, adjustments for IFRS 16, etc.; stated under the calculation table. | We eliminate the effects of one-off events for the sake of consistency and the comparability of operations with the previous year. |
| EBITDA margin as a proportion of sales revenue in % | EBITDA / sales revenue x 100 | Measure of commercial success and profitability. |
| EBITDA margin as a proportion of operating revenues in % | 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. |
| EBITDA – CAPEX | EBITDA – value of investments in the acquisition of property, plant and equipment and intangible assets | Indicator of free cash flow. |
| Ratio of (EBITDA – CAPEX) to EBITDA | (EBITDA – value of investments in the acquisition of property, plant and equipment and intangible assets) / EBITDA |
|---|---|
| Leverage ratio | |
| Equity ratio | |
| Equity financing ratio | |
| Distributed economic value | Operating costs + labour costs + dividends + corporate income tax |
| Scope of generated assets divided amongst stakeholders. | |
| Value added | Labour costs + finance costs + pre-tax profit |
| Operating results that are allocated to: | employees in the form of wages and reimbursements; to lenders and creditors in the form of interest and other fees; to owners in the form of dividends and other types of compensation; to a company through the creation of reserves and retained earnings, and to the state in the form of taxes. |
| Value added per employee (in EUR) | ((Value added / (number of employees at the beginning of the period + the number of employees at the end of the period) / 2)) x 1,000 |
| Productivity ratio that indicates how much value, on average, relates to a single employee in a given period. | |
| Gross added value per employee | ((Gross operating profit – costs of goods, materials and services – other operating expenses) / ((number of employees at the beginning of the period + the number of employees at the end of the period) / 2)) x 1,000 |
| Basic economic indicator and basic measure of economic activity and success. Represents the newly generated value of a company in a given period. | The measure is also used by SDH to measure the performance of companies with capital assets of the state. |
| Return on sales | EBIT / sales revenue |
| Indicator of a company’s pricing policy and ability to control costs. | |
| NFD (net financial debt) | Non-current financial liabilities + current financial liabilities – cash and cash equivalents – current financial assets |
| Current and non-current financial liabilities, less liquid assets that can be used to repay those liabilities. | |
| Net financial debt to EBITDA ratio | NFD / EBITDARatio 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 |
| ROA (net return on assets) in % | Net profit or loss / (value of assets on first day of period + value of assets on last day of period) / 2) x 100 |
| Indicator of a company’s efficiency in the management of assets available to generate a profit. | |
| ROE (net return on equity) in % | Net profit or loss / (value of equity on first day of period + value of equity on last day of period) / 2) x 100 |
| Indicator of a company’s efficiency in the generation of profit from sources provided by owners and/or shareholders. | The measure is also used by SDH to measure the performance of companies with capital assets of the state. |
| CAPEX as a proportion of operating revenues | (Gross) outflows for the acquisition of property, plant and equipment and intangible assets / operating revenues. |
| The measure is also used by SDH to measure the performance of companies with capital assets of the state. | |
| Sponsorships and donations as a proportion of sales revenue | Sponsorships and donations / sales revenue |
| Indicator of the value of a company’s |
The Telekom Slovenije Group cares for the social environment in which it operates throughout the year. At the end of the year, we provide further assistance to those who need help the most. Following the declaration of the pandemic, we made donations to retirement homes, to young people from socially disadvantaged environments, to healthcare institutions, to schools and to many others.
The elderly are even more vulnerable in times of limited contacts, and being connected and the possibility of communication are that much more important. We thus equipped 75 retirement homes across Slovenia (we offered help to all retirement homes) with mobile phones and facilitated free voice and video calls between the residents of those homes and their loved ones.
We are aware that a familiar smiling face and a kind word are particularly priceless in these extraordinary circumstances. At the end of the year, we supported four humanitarian organisations who ease the loneliness of and offer assistance to elderly people who live alone. We earmarked a total of EUR 20,000 for the Slovene Philanthropy Association, the Humanitarček organisation, the Zlata mreža institute and the Sopotniki institute.
We also worked with the Slovenian chapter of the Europa Donna association in 2020. In the scope of October’s Modri Fon campaign, we informed female users about the importance of preventive measures and the advantages of a healthy and active lifestyle, and encouraged them to perform regular breast self-exams using the free Breast Test application. At the end of the campaign, we teamed forces with Samsung and donated EUR 10,000 to the association for the fight against breast cancer.
assistance to individuals and teams, sporting associations and sporting events. Requests for sponsorships and donations are reviewed by a committee that makes decisions regularly throughout the year. That committee takes into account the interests of those requesting help and Telekom Slovenije Group’s strategic business plan when allocating funds.
The Telekom Slovenije Group earmarked a total of EUR 2.2 million or 0.3% of its operating revenues for sponsorships and donations in 2020. Due to the pandemic and the resulting cancellation of numerous sporting events, we redirected a portion of funds to donations and thus helped many of those affected.
| Education | Sport | Culture | Humanitarian | Other |
|---|---|---|---|---|
| 4.0% | 3.3% | 77.7% | 5.9% | 9.1% |
As volunteers, we regularly participate in humanitarian projects aimed at overcoming social differences. In 2020, 251 employees participated in blood drives, while one employee was active in civil protection. In addition to others, we assisted the following organisations:
Telekom Slovenije supports numerous educational and scientific projects, conferences and events, and serves as an important sponsor of projects and organisations. We also supported educational institutions in 2020 in the implementation of distance learning.
We donated 300 mobile modems to students from socially disadvantaged environments (via the National Education Institute), together with free mobile data transfer quantities for distance learning. We also donated used computer equipment to more than 40 schools and other educational institutions. We donated funds to IEDC – Bled Business School for the purchase of technical equipment for remote learning.
We also supported the following projects and institutions:
In the area of culture, we support contextually varied and geographically dispersed events, as well as cultural events that with our support have become an essential element of cultural expression, both in Slovenia and internationally. Such events in 2020 included:
We continuously support numerous major and minor events that are intended primarily for children and adolescents. Our sponsorship activities in 2020 included support for the following:
ski event, the Franja Marathon, the Red Bull Goni Pony na Vršič event, the Triglav The Rock Ljubljana climbing spectacle, and the 3-on-3 national basketball championship.
Social responsibility is also a policy at all Telekom Slovenije Group companies. Worthy of mention amongst the sponsorship activities of subsidiaries is IPKO as sponsor of the Football Federation of Kosovo.
We donated EUR 20,000 to Slovenian fire fighters for further training.
“In the functioning of protection, rescue and security units, where every second counts, reliable communications technology is crucial. In such work, fire fighters personify the values of humanitarianism, volunteer work and solidarity. In every single natural and other disaster, they demonstrate unconditionally that they are the ones we can count on, anytime, anywhere,” emphasised Tomaž Jontes, member of Telekom Slovenije’s Management Board responsible for sales and marketing, during the presentation of the fifth general mobile network.
On behalf of Telekom Slovenije, Mr Jontes presented the President of the Fire Fighters Association of Slovenia, Janko Cerkvenik, and Captain Franci Petek a donation in the amount of EUR 20,000 that the aforementioned association will use for the further training of fire fighters. Fire fighters are witness to many tragedies that would be even greater without their sacrifice and commitment.
| 6.2 million | no. of issued invoices |
|---|---|
| 0.57% | proportion of complaints |
| 5,451 | calls with video identification |
| 565,518 | received calls |
| 161,620 | answered emails |
Following the declaration of the epidemic in Slovenia, we upgraded TV programme schemes for all fixed package subscribers with children’s, documentary, popular science, film and sports content, free of charge. With the mass migration to distance learning and work from home, we gifted 5 GB of data transfer to mobile package subscribers in March, and then reset their data transfer quantities. This means that we gifted to subscribers data transfer quantities used up until that moment in March and reverted the balance back to the balance on the first day of that month.
We also facilitated free changes to mobile packages, while in the purchase of selected mobile phones, we joined forces with different suppliers to continuously offer the most varied benefits (free instalments, discounts on monthly subscription fees for a given period, etc.).
The role of Moj Telekom (My Telekom), as the digital centre for the control and management of Telekom Slovenije’s services, was further enhanced during this period, while we also enable access to services via video identification. We recruited the digital adviser Maks for the Technical Help Desk. Maks eased the burden on advisers at support contact points and above all contributed to the faster resolution of users’ technical challenges. We provided business users new solutions for remote operations, and with the new Moja prijava website (https://mojaprijava.si) established a single, secure and simple electronic identity within the digital ecosystem.
which we began providing for several companies, including some from abroad. The number of calls requiring video identification was up sharply: after responding to 349 such calls in 2019, we recorded 5,451 calls in 2020.
During both waves of the epidemic, we merged the sales and general information call centres, and thus increased efficiency. We answered 565,518 calls and responded to 161,620 emails in 2020.
The Technical Help Desk recorded a record number of contacts in 2020. We recorded more calls for assistance and support in the use of services, while calls due to service-related faults were down relative to 2019. The call response success rate was up by 7% relative to the previous year. The average response time was down. The average call time was up slightly relative to 2019 due to the specific content and work method. There was also increased activity via other channels (emails, text messages, webchat and online check-in). We are expecting increased interaction between users and the digital adviser Maks in the future.
We continuously create a caring and environmentally friendly society, in part through the gradual discontinuation of paper operations. In our concern for the environment, we are also implementing a number of initiatives and activities to encourage users to opt for electronic instead of printed invoices. We thus increased the number of invoices in some electronic format in 2020. The proportion of total issued invoices accounted for by electronic invoices has risen to 25%. We issued a total of 6.2 million invoices for telecommunication services in 2020 (excluding non-standard invoices and credit notes). The overall complaint rate relative to total invoices issued was 0.57%.
With regard to users, special attention is given to the safe use of communication services, with particular emphasis placed on raising the awareness of parents and guardians, children and adolescents. We established and maintained a link with users throughout the year, while we strengthened their trust by ensuring safe and high-quality services.
With the aim of ensuring the conditions for uninterrupted distance learning, we donated 300 modems to young people from socially disadvantaged environments via the National Education Institute, and will provide them unlimited mobile data transfer quantities until August 2021. We donated 268 pieces of used computer equipment to educational institutions. Because a great deal of schooling and work is carried out remotely, we increased internet speeds in fixed packages.
Through the Children’s Park service in the scope of the NEO platform, we provide children a carefree area in which parents or guardians can limit what a child views to content that is appropriate depending on a child’s age. Da Vinci Kids content is also available to children through the NEO platform. The Da Vinci Kids application brings children closer to science, math, technology, history, culture, nature and sports in Slovene in a humorous and interesting way.
For the responsible use of mobile devices, we offer the Kaspersky Safe Kids mobile application that parents can use to limit the use of the internet and services by children, as necessary.
the virtual environment. We published advice on safe internet use and continued to implement the Moja prva pogodba (My First Contract) project, which facilitates the conclusion of an agreement between parents and children on the use of mobile devices. But we did not forget about fun side. We migrated the social game Vprašaj me, vprašaj se (Ask Me, Ask Yourself) to the web. We developed the aforementioned game in conjunction with the Logout organisation. The game is designed in such a way that carefully selected questions stimulate conversation through which parents, guardians, teachers, grandmothers and grandfathers raise children’s awareness about the responsible use of the internet and mobile devices in a fun way. We gave the game to children in the scope of prize contests and socially responsible activities.
We provide advice regarding the safe use of modern communication devices and services at Telekom centres and in the tab Recommendations for the safe use of mobile devices and services. We organised several training events for sales staff on this topic again in 2020. Users may additionally protect their devices by installing Kaspersky security protection that is available in our portfolio and that facilitates parental control, the protection of a user’s identity and safe web browsing. Also available is the Varen splet (Safe Web) service that allows users to protect data traffic and manage all devices on the network.
As a socially responsible company, we offer vulnerable user groups an adapted range of products and services. We have more affordable mobile packages available to pensioners, while we supplemented fixed services in 2020 with the Ugodni (Affordable) package, which offers reliable internet and TV services, and a fixed telephony connection at an affordable price. The aforementioned package is intended for price-sensitive users who require a basic connection and watch TV linearly.
Affordably priced services are also available to disabled persons, while we facilitate the purchase of terminal equipment at historical cost and publish a list of public telephone booths and terminals accessible by wheelchair. We give priority to disabled persons in connection to the public communications network and fault clearance, and provide access to emergency services by the deaf and hearing impaired. 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. 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.
The Telekom Slovenije Group ensures access to the most advanced ICT services and content by citizens who live in less-populated regions. The mobile telephony signal is accessible by 99.74% of the population, while a large portion of territory is covered by broadband internet access and fixed telephony. We cover 32.44% of the population with the fifth generation (5G) mobile network, more than 87% of the population with the LTE/4G+ network and 97% of the population with the LTE/4G network. Fixed services are provided via the mobile network to users in areas where setting up a fixed connection is not possible, but the LTE/4G mobile signal is available. We are constructing at an accelerated pace the most advanced fibre optic network, to which we already facilitate connections by more than 370,000 Slovenian households.
| 2G/GSM | 3G / UMTS | 4G/LTE | 5G |
|---|---|---|---|
| 99.74% | more than 93% | 96.64% | 32.44% |
IPKO in Kosovo is also helping to bridge the digital divide in its own environment by expanding the coverage of the mobile network with new base station locations and by upgrading existing base stations with LTE/4G technology. An agreement was reached in December 2020 with the Ministry of Economic Development on the financing of 80% of the project to upgrade hardware and software at five 2G/4G locations, which will facilitate the upgrade to 5G technology in 2021. IPKO is also upgrading locations in city centres and moving existing equipment to rural areas.
| 2G | 3G | 4G |
|---|---|---|
| 99.2% | 91.0% | 87.9% |
The Telekom Slovenije Group strives for a stimulating and pleasant work environment, open to innovation and cooperation. To that end, we provide for continuous employee training and education in various areas, and introduce innovative approaches for empowering employees. We are active in the areas of health and the prevention of burnout, upgrade employee remuneration and motivation systems, and implement numerous activities to strengthen the employer’s brand.
| Permanent | Temporary |
|---|---|
| 90.6% | 9.4% |
| Full Time | Part Time |
| 97.9% | 2.1% |
| Collective Agreement | Not Covered by Collective Agreement |
| 98.3% | 1.7% |
| New Hires | Departures |
| 171 | 208 |
| Men | Women |
| 67.1% | 32.9% |
| Total Employees | |
| 3,392 |
53PA2
54GRI PA1, PA2, SDG 9.1
55GRI PA4, SDG 1.4
The Code of Ethics of the Telekom Slovenije Group governs the guiding principles of our operations, and our responsibilities as employees in both mutual relationships and in relationships with the users of services, shareholders, the social and natural environment and all other stakeholders. In our work, we strive for tolerance, mutual respect and the respect of basic human rights. We promote fair and ethical treatment, and operations in line with valid legislation.
We reject all forms of indirect or direct discrimination, as set out in the internal acts of companies. Individual Group companies have appropriate mechanisms in place for identifying potential cases of discrimination and for taking action in such cases. Similar to previous years, Telekom Slovenije Group companies did not receive any complaints due to discrimination in 2020.
The Telekom Slovenije Group had 3,392 employees at the end of the year, with Slovenian companies accounting for 2,864 of that number. The total number of employees was down by 1.1% relative to 2019, primarily due to the sale of Planet TV, the termination of employment for business reasons and retirements at Telekom Slovenije, GVO and IPKO. At 5.77%, employee turnover within the Telekom Slovenije Group was up by 0.37 percentage points relative to the previous year.
| Situation as at 31 December | 2020 | 2019 | 2018 | Change in 2020 | Index 20/19 |
|---|---|---|---|---|---|
| SLOVENIA | 2,864 | 2,901 | 2,903 | -37 | 99 |
| Telekom Slovenije | 2,165 | 2,182 | 2,196 | -17 | 99 |
| Other companies in Slovenia | 699 | 720 | 707 | -20 | 97 |
| Planet TV | 0 | 4 | 4 | -4 | |
| TSmedia | 585 | 556 | 563 | 29 | 105 |
| Avtenta | 46 | 40 | 43 | 6 | 115 |
| GVO | 46 | 44 | 31 | 2 | 104 |
| Soline | 89 | 95 | 92 | -6 | |
| TSinpo | 44 | 43 | 41 | 1 | 102 |
| SOUTH-EASTERN EUROPE | 528 | 528 | 627 | 0 | 100 |
| IPKO – Kosovo | 528 | 528 | 528 | 0 | 100 |
| Blicnet – Bosnia and Herzegovina | 0 | 0 | 9 | 0 | |
| TELEKOM SLOVENIJE GROUP | 3,392 | 3,429 | 3,530 | -37 | 99 |
Telekom Slovenije Group
Telekom Slovenije
| Age group | New hires | Departures | New hires | Departures | New hires | Departures | New hires | Departures |
|---|---|---|---|---|---|---|---|---|
| 18–30 | 9734 | 285 | 4627 | 232 | ||||
| 31–40 | 4877 | 241 | 518 | 406 | 22 | |||
| 41–50 | 1851 | 5 | 2813 | 20 | 0 | 3 | ||
| 51–60 | 8 | 402 | 25 | 6 | 140 | 1 | ||
| 61–65 | 6 | 0 | 3 | 0 | 2 | 0 | 1 | |
| Total | 171208 | 5976 | 83103 | 2929 |
60GRI GS 102-8
61GRI GS 401-1
Permanent Temporary
33% 9% 91% 67%
Men Women
The average age of employees at Telekom Slovenije is 45.7 years. The average age is lowest at IPKO (35.8 years) and highest at TSinpo (52.1 years). Through an active employment policy, the average age was reduced to 40 years at GVO.
A total of 98.3% of Telekom Slovenije Group employees have an employment contract based on a collective agreement, which was close to the same proportion as the previous year (98.2%). The remaining 1.7% of employees have contracts outside the collective bargaining system. These are primarily employees in management positions.
A total of 90.6% of Telekom Slovenije Group employees are on permanent contracts, while that proportion is 98.7% at Telekom Slovenije, 87.3% at other Slovenian companies and 61.7% at IPKO in Kosovo. The main reason Slovenian companies employ workers for a fixed period of time is to cover temporary increases in the work load. There are more employees on fixed contracts in Kosovo, which is an indication of local legislation and the company’s employment policy. Full-time employees account for the largest proportion (98%) of employees at the Group level, while part-time workers account for a smaller proportion (2%).
Men accounted for 67.1% of all Telekom Slovenije Group employees in 2020, while women accounted for 32.9%. Men are prevalent at companies in Slovenia, while the gender ratio in favour of men is slightly lower at IPKO (56.6%).
This ratio differs from company to company depending on their activity.
All retiring Telekom Slovenije Group employees are entitled to severance pay in accordance with valid legislation and the provisions of the collective agreement, where it applies. We carry out pre-retirement activities for employees in the scope of intergenerational cooperation and the management of older workers, who are also included in regular education and training.
At 35.1%, persons with a level VII education account for the highest proportion of employees within the Telekom Slovenije Group. They are followed by employees with a level V education (30.1%) and level VI education (20.8%). The Group has 161 employees with a master’s degree or doctorate (4.7% of employees).
62GRI GS 102-41
63GRI GS 102-8
64GRI GS 102-8
TSinpois a service and disabled workers’ company that facilitates the employment and training of disabled persons, and the adaptation of jobs to their needs. The company employs disabled persons from within the Telekom Slovenije Group and from the labour market. The company addressed the temporary increase in the workload in 2020 by employing disabled persons from the labour market for a fixed period of time. The company is continuing to implement a vocational rehabilitation programme with 44 employees. In cooperation with external authorised organisations and with the help of its own mentoring team, TSinpo trains employees with work limitations for adapted work. In this way, it increases the employment of disabled persons in the wider social community and opens opportunities to advance their careers.
There were 100 employees of various disability levels working in the Telekom Slovenije Group. Of those persons, 50% are full-time workers. Telekom Slovenije and GVO regularly exceed the legally prescribed quota of disabled employees, which is the result of our efforts to facilitate the regular employment of persons with work limitations due to disability. The quota for the information and communications sector is 2%, while the quota for the construction sector is 3%. These companies were therefore entitled to compensation in the amount of 20% of the minimum monthly wage for each disabled employee over the prescribed quota. Companies abroad do not have such a compensation system in place.
Competences and the acquisition of new knowledge, which we share in our everyday work. Through continuous planned education and training, and the management and transfer of knowledge, we ensure the growth and development of the Company and its employees. The training and education programme is updated every year with new and current content.
Employee education and training at Telekom Slovenije are carried out in accordance with the annual plans defined in the Education and Training Rules. Employee development and training plans are drafted every year in the context of annual development interviews, and are based on the Education and Training Programme. In the planning process, we define the purpose and objectives of education and training, which derive from the organisation’s overall objectives. Objectives are clear and measurable, which is important for monitoring the effectiveness of education and training.
Despite the COVID-19 pandemic, we continued with our projects, and planned education and training. The majority of planned live international and external domestic training events were cancelled or shifted to the virtual environment in 2020. Internal workshops that were initially planned in classrooms were also organised virtually in the form of webinars. The response of employees exceeded expectations. There was a great deal of interest in technical content and soft skills, stress management workshops, workplace endurance, work from home, etc. We organised training for close to 40 internal lecturers and helped them prepare virtual content. In the current circumstances, employees have enthusiastically embraced this form of learning, primarily due to the time and space aspects.
groups to measure acquired knowledge and skills. A survey of employees conducted in 2020 indicated that online forms of training are appropriate for shorter courses, while live workshops are preferred for longer training. Employees would like more content from the areas of stress management, soft skills (communication, relationships, personal growth, etc.), user services/products and equipment, programming languages, the use of internal programmes and project management.
We can only develop the most advanced services and create new business opportunities with a team of top-flight experts, expertise and common values and objectives. We therefore dedicate a great deal of attention to strengthening employee
| Telekom Slovenije Group | Telekom Slovenije | |||||||
|---|---|---|---|---|---|---|---|---|
| 2020 | 2019 | 2018 | Index 20/19 | 2020 | 2019 | 2018 | Index 20/19 | |
| Number of participants in training | 3,085 | 3,150 | 3,286 | 98 | 2,170 | 2,205 | 2,460 | 98 |
| Number of training hours | 63,069 | 91,368 | 92,821 | 69 | 54,635 | 75,131 | 79,241 | |
| Proportion of employees included in training | 91% | 92% | 93% | 99 | 100% | 101% | *112% | 99 |
| Number of training hours per employee | 18.6 | 26.6 | 26.3 | 70 | 25 | 34.4 |
The number of education and training hours was down by 31% and 27% at the Telekom Slovenije Group and Telekom Slovenije, respectively, relative to 2019 on account of the COVID-19 pandemic. Of the total number of education and training hours, 47% of hours were organised remotely, 41% of education and training hours took the form of traditional workshops and 12% of education and training hours were in the form of e-courses in the scope of the Znam! learning portal. Internal lecturers conducted 39% of education and training hours or 57% of all courses.
At Telekom Slovenije, men accounted for 65% and women 35% of all employees included in education and training programmes, which corresponds to the overall employee gender ratio, as training is based on workplace needs, with no distinction made by gender. Men accounted for 70% and women for 30% of Telekom Slovenije Group employees included in education and training.
In terms of the number of hours, technicians and sales staff at the Telekom Slovenije Group level and at Telekom Slovenije received the most education and training, as they are the first contact point for our users. The index for the category ‘Other’ was up because that category includes education and training regarding the development of personal and team potentials, the induction programme for new employees and future trends. Of the total of 63,069 education and training hours, 66.7% or 42,096 hours were organised for technicians and sales staff.
employees and raised their awareness about stress management and the prevention of burnout. We spent 1,530 hours on stress management training. A total of 674 hours were dedicated to measures and ensuring a safe work environment during the period of an increased number of COVID-19 infections. We also organised e-courses on information security and business continuity (i.e. employee conduct in emergencies), the protection of confidential information, social engineering and the identification of dangers that threaten us, and a refresher course on the Code of Ethics.
Due to the nature of the work at Telekom Slovenije, we handle various personal data that we are obliged to protect diligently. A total of 261 hours of training were carried out at Telekom Slovenije in this area in 2020, during which time we presented employees the basics of personal data protection and the lawful processing thereof, improved knowledge of rules governing the protection and processing of personal data and increased employee awareness.
| 22.7% | 11.6% | 9.5% | 5.3% | 2.1% | 1.6% | 0.8% | 0.4% | 0.1% | 28.0% | 10.2% | 7.7% |
|---|---|---|---|---|---|---|---|---|---|---|---|
Employees also receive continuous training in the area of information and communication technologies, and regarding laws and regulations. Telekom Slovenije has an e-training portal call ‘Znam!’ (I Have the Knowledge!). That portal supports rapid learning and the preparation of materials of varying scope and complexity, primarily for the organisation of interesting shorter courses. The latest knowledge is thus readily accessible by the employees of Telekom Slovenije, the employees of the subsidiaries TSmedia, Avtenta and TSinpo, and by our authorised agents.
published on the Znam! portal in 2020, representing 29% of all training at Telekom Slovenije.
Objective: structured, connected and planned transfer of knowledge
Internal lecturers
The aim of the S.M.A.R.T. training and development programme is to ensure the excellence of the user experience at all major contact points with the users of our services. Through that programme, we are building four key elements in contact with users: a uniform approach, the raising of values, the development of competences and team work.
In 2020, we expanded the activities of the S.M.A.R.T. programme to the Technical Help Desk, where we predefined objectives and the desired behaviour of advisors, and prepared a digital manual on the excellence of the user experience. All advisors attended training and workshops to improve the desired behaviours, while we also identified an additional six employees who will dedicate part of their work time to the development and empowerment of employees to achieve a superior user experience.
Activities in this area include the financing of on-the-job studies and paid leave to prepare for study requirements. At the end of 2020, a total of 45 employees had contracts with the Telekom Slovenije Group to obtain a higher level of education, 40 employees at Telekom Slovenije, four employees at GVO and one employee at Avtenta.
We worked intensively in 2020 to upgrade the employer brand. Our promise – to co-create the digital future of Slovenia – is based on knowledge and development. We added the #connected hashtag to the corporate logo, which is recognised by both the internal and external public. Telekom Slovenije ranks among the ten most reputable employers in Slovenia.
We established the Knowledge Transfer Competence Centre in 2020. The aim of that centre is to accelerate the internal transfer of knowledge, and thus ensure the development and growth of both employees and the Company. The competence centre has four pillars. In the scope of each, we develop tailored development and training programmes that help knowledge ambassadors develop the necessary skills, themselves, mutual links and the exchange of knowledge.
Our employees are a treasure trove of knowledge and experience. It is therefore important to preserve this at the Company and encourage the transfer of that knowledge and experience between employees. This is particularly true for key expertise that gives the Company a competitive advantage and that is difficult or impossible to obtain on the market. Systematic development and the preservation and upgrading of key knowledge is ensured through a single mentoring system. In the scope of that system, we keep records of technical and key knowledge and the persons who possess it. The latter transfer that knowledge to recipients in the mentoring process – successors.
new employees, employees who change work areas or who return to work after a prolonged absence, and high school and college students completing their internship, working via student services or on scholarship. We digitalised the mentoring process in 2020 and trained mentors on remote mentoring.
Telekom Slovenije includes in its system of key and perspective personnel individuals who contribute an above-average share to the achievement of the Company’s objectives (special work achievements), who have highly developed competences or who demonstrate potential and the motivation for further development.
We break them down into the following categories:
This involves a continuous process in which we identify key and perspective employees. Through planned training, we develop their potentials, prepare successors and strive to keep them employed at the Company.
According to the Company’s adopted methodology, 8.9% of employees have been identified as key and perspective personnel. Together with supervisors, we draw up individual development plans to obtain the necessary expertise and desired competences.
Our aim is to recruit the best secondary school and university students, primarily in strategically important areas, such as multimedia, cloud services, user interfaces, etc. Telekom Slovenije thus facilitates the practical training of secondary school students and the practical education of university students from various professions. The best candidates who could be potential candidates for employment are entered into a database of employment candidates.
Despite the extraordinary circumstances, Telekom Slovenije provided practical training opportunities to 60 secondary school and university students in 2020. For the third year in a row, Telekom Slovenije has also awarded company scholarships. We awarded nine such scholarships for the 2019/2020 scholastic year. We employed two scholarship holders, bringing the total to 24 active scholarship holders.
Measures to manage older employees and intergenerational cooperation are an important element of the HR management strategy for the period 2021 to 2025, and represent our response to current and future demographic challenges. The average age of employees at Telekom Slovenije is 45.7 years.
Measures are aimed at strengthening competences in connection with the Company’s values and the four strategic pillars. The purpose of the latter is to search for comprehensive solutions to mitigate risks associated with the ageing of employees. These include awareness about the importance of a healthy lifestyle and active care for own health and lifelong learning. The aforementioned measures cover the following areas: promotion and awareness, the protection of health, ergonomics and the workplace, working hours and the nature of work, career and personal development, training to improve competences and intergenerational cooperation. Priority was given to measures drawn up for employees over the age of 50 years, but are intended for all employees.
We raise awareness about the importance of stress management and avoiding burnout in the scope of Živijo, stres! (Hello, Stress!) activities. In 2020, we continued with the organisation of lectures and workshops by various experts from the areas of psychology, group (team) dynamics, orthopaedics and anthropology. We learned to protect ourselves against stress, as well as self-massage techniques. We also continued to raise employee awareness in the scope of periodic educational workshops and through the promotion of active work breaks, and exercise and sporting activities, including through our own FIT.SI mobile application. Due to measures to prevent the spread of COVID-19, we temporarily halted massages and exercise in the workplace, and provided the opportunity to speak with a psychologist twice a week (instead of once a week) via the Modri telefon (Wise Telephone). Useful information and advice regarding a healthy lifestyle are also available to all employees on a special intranet portal.
We strive to provide employees a work environment in which they will be satisfied, motivated, committed and loyal. In 2020, when people were working from home all over Slovenia, we paid particular attention to activities to keep them #connected. We have an established and precisely structured bonus system in the form of monetary and non-monetary bonuses that are awarded in accordance with the collective agreement and other internal acts.
We are giving remuneration within the Telekom Slovenije Group an increasing amount of attention, while we encourage individual and collective success. Bonuses are paid to employees based on the company-level collective agreement and other internal acts. The most frequent form of employee remuneration remains material remuneration. Collective remuneration is based on pre-defined and expected results. A year-end bonus (13th salary) is paid based on business results, while a Christmas bonus is paid in the amount of 70% of the average wage in the Republic of Slovenia. Certain companies pay a lower Christmas bonus depending on operating results, as well as stimulation and bonuses for outstanding achievements. Individual remuneration depends on an assessment of the achievement of personal objectives (stimulation), and is paid twice a year.
Non-monetary forms of employee remuneration also derive from our activities (discounts in the Online Shop, gift certificates for Soline, getaways at Hotel Tisa, etc.). We also offer employees other benefits, such as additional medical examinations, payments to the second pension pillar, preventive treatments and flexible working hours, etc.
Full-time and temporary employees enjoy the same benefits, except the payment of voluntary pension insurance premiums, which new employees are entitled to after one year of employment. The premium for employees who have been employed by their respective company for at least one year is paid by Telekom Slovenije (97% of employees), GVO (92% of employees), TSmedia (96% of employees), Avtenta (100% of employees) and TSinpo (100% of employees).
agreement. IPKO in Kosovo pays its employees’ compulsory contributions for pension insurance in accordance with local laws, but does not pay premiums for supplemental pension insurance for them.
A Telekom Slovenije Group employee’s base salary is not based on gender, location or activity, but is equivalent to the value of the wage grade for a particular position for which an employment contract has been concluded. Employees at companies in Slovenia have a higher minimum wage than the legally prescribed minimum wage in Slovenia. Employees at IPKO also have a higher wage (index of 216).
Telekom Slovenije is aware of the need to strengthen the employer brand amongst young people and of the need for fresh technical knowledge. We therefore actively cooperate with faculties and secondary schools. We have been a partner of the multimedia study programme at the University of Ljubljana’s Faculty of Electrical Engineering for many years. We also work closely with the Faculty of Computer and Information Science at the same university.
In 2020, we strengthened cooperation with the University of Ljubljana’s School of Economics and Business, as it is important to us that young people recognise us as a potential employer in other areas of study that are crucial for the activities that we perform.
In the area of employee education and e-training, we work with the Telecommunications Laboratory at the University of Ljubljana’s Faculty of Electrical Engineering (LTFE) and with the Faculty of Computer and Information Science at the same university. We likewise work with the School Centre for Postal Services, Economics and Telecommunications. IPKO includes students from universities in Kosovo, such as American University and Dardania University in its activities in various ways.
The measurement of organisational vitality, which includes the organisational climate, and employee satisfaction and commitment, is carried out every two years. The next measurement will be carried out in 2021.
We are transforming Telekom Slovenije’s organisational culture into a culture that is based on the constructive style of employees’ behaviours and attitudes. A constructive style positively promotes superior quality, development, mutual cooperation and business excellence. We took into account the latest trends when drafting the action plan for the transformation of the organisational culture. Activities are being carried out with an emphasis on cooperation between organisational units and employees, and on the promotion of innovation and creativity.
Appraisal interviews are conducted twice a year for all Telekom Slovenije employees covered by the collective agreement and for employees under individual contracts who are not first and second level directors. Those interviews are conducted once a year for the latter. Interviews are conducted once a year at the majority of subsidiaries. The overall assessment of work performance comprises an assessment of the achievement of objectives and an assessment of competences. A training programme for the upcoming year is drawn up for every employee at the beginning of the year in the scope of appraisal interviews.
We continuously encourage employees to share ideas and develop innovations. We do this primarily through publications on the intranet, and through the organisation of workshops and events.
We gather ideas through the Brihta digital collection box, to which employees submit their ideas. In place is an established procedure and comprehensive overview of proposals, from submission to potential implementation or feedback. Employees receive practical awards for useful ideas. Ideas that become innovations with higher added value may also be rewarded financially.
76GRI GS 202-1, 405-2
77GRI GS 404-1
The area of occupational health and safety was particularly demanding in 2020 due to the COVID-19 pandemic. Taking into account the instructions of professional institutions, the Telekom Slovenije Group gave priority to measures aimed at preventing the spread of infections, provided employees information about preventive activities at home and in the workplace, and established protocols and instructions on what employees should do in the event of infection.
The employees of Avtenta, TSmedia and GVO also have the opportunity to submit proposals for improvements, ideas and innovations in individual areas. IPKO holds a competition to collect proposals, with rewards given for the best.
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.) in accordance with the Workers’ Participation in Management Act. Telekom Slovenije’s Works Council met at seven regular and two correspondence sessions in 2020. The majority of regular sessions were carried out in a virtual environment. The majority of initiatives and questions put forth by employees and their representatives related to the COVID-19 pandemic, the Company’s operations and the HR Policy. The members of the Management Board and head of HR Management and General Affairs reported accordingly on a regular basis.
There are also three employee representatives on Telekom Slovenije’s Supervisory Board, who regularly inform employees and their representatives about activities in accordance with valid legislation.
Telekom Slovenije Group provides support to employees in various ways, including leisure activities, while we devote special attention to our employees’ children and pensioners. We organise events with employees, give gifts to employees’ first-graders and new-borns, organise holiday day care services for employees’ children, support Telekom Slovenije’s pensioners clubs, etc.
locations throughout Slovenia was very limited. We encouraged employees to exercise during working hours by providing video content and via the #vadidoma platform, which we organised in the scope of the NEO platform. We also developed the FIT.SI mobile application to get employees moving.
Contributing most to the relatively low infection rate at the Company was the timely adoption of measures, including the quick decision to implement work from home for most employees, if the nature of their work allowed it. The source of the majority of infections and cases of quarantine involving employees was the external environment, i.e. private life. On account of work from home and other measures that were communicated to employees daily by the Business Recovery Team in a transparent manner, infections did not spread within the Company.
We regularly provided employees all necessary protective equipment: protective masks, hand disinfectant, disinfectant wipes, disinfectant spray to disinfect work surfaces, protective gloves, etc. If employees became infected or were in touch with others who were infected, we continuously provided professional responses to questions and established the necessary communication with all stakeholders. We organised testing at professional institutions when business travel abroad was urgent.
Occupational health and safety is otherwise managed within the Telekom Slovenije Group in accordance with legal requirements that are defined for all employees and for each sector separately. We implemented all key measures relating to occupational health and safety, and fire protection in 2020. We took regular measurements of environmental conditions and lighting in the work environment for all locations where deemed necessary. The identification of dangers associated with safe work was carried out 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. Training was organised in the form of lectures, and took place primarily via e-training in 2020. Training was carried out in the following areas in 2020: 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 use.
Major locations and Telekom Slovenije centres are equipped with semi-automatic defibrillators to provide aid in the event of cardiac arrest.
Telekom Slovenije notifies employees about preventive examinations, vaccinations against various diseases and current health content via the Modro jabolko (Wise Apple) portal. We promote a healthy lifestyle by publishing various articles and information about physical activity and a healthy diet. Via the portal, employees are also provided access to supplementary healthcare services (that are not part of regular occupational medicine examinations). At the beginning of every year, we publish a schedule of additional medical examinations that employees may sign up for.
The area of occupational health and safety is comprehensively governed at Telekom Slovenije Group companies in Slovenia by the Occupational Health and Safety Act (ZVZD-1) and by declarations.
80GRI GS 403-5
81GRI GS 403-6
82GRI GS 403-1, 403-2
83GRI GS 403-4
84GRI 403-3
of safety with risk assessments. This area is governed at IPKO by local legislation and through a health, safety and quality control system. It carried out measurements of microclimatic conditions, defined potential risks in the workplace, and adopted measures and recommendations in 2020. It also organised training for all employees.
Telekom Slovenije employees attending training are 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 levels in cooperation with employees. We also encourage employees to report potential dangers whenever they arise. In this way, we prevent or mitigate potential negative effects on health and safety. GVO has an Occupational Safety Committee that is appointed by the Works Council. Every workplace injury is analysed and reported to the competent authorities (ER-8). IPKO has a Health and Safety Team that comprises representatives of employees from various organisational units who monitor the implementation of a programme in the aforementioned area.
Preventive medical examinations are organised for employees at Telekom Slovenije and other Slovenian subsidiaries in accordance with the law. Occupational medicine specialists 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.
We also organise flu vaccinations for employees in Slovenia. IPKO organises preventive medical examinations for employees in accordance with labour legislation in Kosovo, as well as special training for employees who work in the field.
The employees of the Telekom Slovenije Group have big hearts, and we join together when events shake us and help those affected to the best of our ability. We therefore established the Heart Foundation in 2019 with the aim of helping the children of employees of Slovenian Telekom Slovenije Group companies who have lost a parent or who are seriously ill. Currently, 1,230 employees contribute to the fund every month.
Employees can make monthly donations of EUR 2, EUR 4 or EUR 6 to the Heart Foundation, and can also donate via text messages, in the form of a one-time donation or periodic contribution. We used monthly donations to help 33 children in 2020. We also helped seven seriously ill children through a one-time donation.
| Year | 2020 | 2019 | 2018 | Index 20/19 |
|---|---|---|---|---|
| Number of injuries | 3444 | 3677 | ||
| Number of working days lost | 1,345 | 1,536 | 1,265 | 88 |
| Number of working hours lost | 10,719 | 11,138 | 10,125 | 96 |
| Number of medical examinations | 835 | 998 | 957 | 84 |
| - preliminary examinations | 114 | 135 | 160 | 84 |
| - periodic examinations | 721 | 863 | 797 | 84 |
| Number of deaths | 0 | 0 | 0 | - |
The Telekom Slovenije Group has no employees at high risk to occupational diseases.
We drafted new fire safety rules and revised evacuation and fire plans for those buildings where major changes were made. Fire safety training is organised in the scope of occupational safety training. Fire extinguishers and hydrant networks were inspected and serviced in all buildings, while several evacuation drills were conducted. We regularly maintained and serviced active fire safety systems at buildings throughout Slovenia, and completely renovated the emergency lighting system at the buildings located at Cigaletova 15 and 17, Golovec and Vilharjeva 23. Telekom Slovenije Group companies did not record any fires in 2020.
The use of parental leave is one element of achieving work-life balance in the scope of the Family-Friendly Company certificate. Most employees who use parental leave are mothers, who make full use of maternity and child care leave. Fathers also take child care leave in the early child development stage in the form of paternity leave. Employees in Slovenia return to their jobs following the end of parental leave, as adopted measures provide opportunities that make it easier to find the right work-life balance.
| Telekom Slovenije Group | 2020 | 2019 | 2018 | 2020 | 2019 | 2018 |
|---|---|---|---|---|---|---|
| Number of employees on parental leave | 101 | 132 | 109 | 2245 | 48 | |
| Of which: women | 82 | 102 | 106 | 2243 | 47 | |
| male | 19 | 30 | 3 | 0 | 2 | 1 |
| Employees who returned to work following parental leave: | number | 84109 | 822245 | 45 | ||
| proportion in % | 83 | 8375 | 100 | 100 | 94 | |
| Of which: women | 65 | 8079 | 22 | 4344 | ||
| proportion in % | 79 | 7874 | 100 | 100 | 94 | |
| male | 19 | 29 | 3 | 0 | 2 | 1 |
| proportion in % | 100 | 97 | 100 | 0 | 100 | 100 |
via various communication channels. The main tool for communicating with employees is the intranet news portal, where all of the latest information regarding events at Group companies is accessible by employees. That portal is accessible by all employees and facilitates the secure transfer of internal documents, such as manuals, rules, instructions, forms, etc. We also communicate with employees via other channels, such as digital displays, email and an electronic bulletin, while we use various types of meetings for the transfer of information, such as special events, councils, working meetings, workshops, etc.
For Telekom Slovenije and its employees, the pandemic has been an opportunity to show that even large companies can be quick, agile, effective, creative and focused on supporting the society in which we operate. We actively communicated with employees every day, and clearly demonstrated our social responsibility, both internally and externally. Our main challenge in that regard was how to ensure employees stayed connected when 70% of them worked from their homes all across Slovenia if the nature of their work so allowed.
Our guiding principle in the formulation of the communication strategy was to find a simple anchoring point for all communication activities that will address the emotional side in a synergistic way and bring us together in the best team in these extraordinary circumstances. We found that anchoring point in the hashtag #CONNECTED. The latter derives from our core activity of ensuring connectivity, while it also builds a community of stronger, more engaged and more successful people in the face of challenges.
During a period when the majority of employees worked remotely, we communicated with employees every day via emails from the Operational Recovery Group and other activities (emails from the President of the Management Board, preventive measures, video communication, etc.). We communicated all events at the Company, and also included content contributed by employees in messages. We strengthened trust, reduced uncertainty, improved employees’ sense of affiliation and built connectivity. A total of 70.14% employees participated in research we conducted in May. Their answers indicated that employees have never felt as #connected with the Company as they do in these extraordinary circumstances and that they are proud of the way Telekom Slovenije has responded to the epidemic.
Every Telekom Slovenije Group company has its own channels for communicating with employees.
Telekom Slovenije and its subsidiaries successfully maintained all previously implemented systems in 2020.
| Company | Certificate of Conformance | Validity | Scope of the system |
|---|---|---|---|
| Telekom Slovenije | SIST EN ISO 22301 | 11 April 2022 | Services and processes of Telekom Slovenije, d. d. |
| Telekom Slovenije | SIST EN ISO/IEC 27001 | 28 April 2023 | Cyber Security Operations Center, Financial Services, Business ICT Services, Network Services Monitoring, Technical Support for Business Solutions |
| Telekom Slovenije | SIST EN ISO 50001 | 31 January 2023 | Telekom Slovenije energy services for internal use |
| Telekom Slovenije | SIST EN 50518 | 27 October 2022 | ARC of Telekom Slovenije, d. d., Cigaletova 15, 1000 Ljubljana, Slovenia |
| Telekom Slovenije | SIST EN ISO 14001 | 31 January 2023 | Development, planning, construction and management of telecommunication networks and services |
| GVO | SIST EN 50518 | 31 December 2023 | Design, construction and maintenance of telecommunications and electro energetic networks |
| GVO | SIST EN ISO 14001 | 31 December 2023 | Design, construction and maintenance of telecommunications and electro energetic networks |
| Avtenta | SIST EN ISO 9001 | 30 June 2022 | Development and integration of business solutions, service delivery and consulting, system integration, project management and sales |
| IPKO | SIST EN ISO 9001 | 24 December 2023 | Digital Cable TV, Internet Services and Fixed and Mobile Telephony |
| IPKO | SIST EN IEC/ISO 27001 | 24 December 2023 | Digital Cable TV, Internet Services and Fixed and Mobile Telephony |
managamentsystemswith an independent external quality assessment; managamentsystemswithoutan independent external quality assessmenti. Other audits were successfully passed to maintain the certificates of manufacturers, such as MS Partner, Cisco, Oracle and HP (for more details, see section 2.7.3 Sales of the Telekom Slovenije Group), and for other systems that are based on other recommendations (internal rules, Family-Friendly Company requirements, the ECS-PPT/DARSGo management system, etc.).
The business continuity management system (BCMS; compliant with the requirements of ISO 22301) was a key quality management mechanism during the period of measures on account of pandemic.
IPKO introduced and certified a quality management (in accordance with the requirements of ISO 9001) and information security management system (in accordance with the requirements of ISO/IEC 27001). Certification of the compliance of those two systems will allow IPKO to apply for public tenders in Kosovo in the future.
Following successful recertification, Telekom Slovenije broadened the area certified under the ISO/IEC 27001 standard. GVO also recertified both systems in the scope of its integrated management system (compliant with the requirements of ISO9001 and ISO14001).
In all systems, we dedicated attention to measurements of objective progress indicators, and promoted the increased integration of systems into the everyday sustainable operations and management of companies. At the end of the year, we began preparatory activities for the performance of a self-assessment of operational excellence according to the EFQM 2020 model.
Through the application of GRI Guidelines in the annual report, we continue to fulfil the requirements of the non-financial reporting directive and the Companies Act (ZGD-1).
Sustainable operations are one of the key strategic objectives of the Telekom Slovenije Group, as we are aware that our operations affect both the natural and social environments. Thus, through our conduct and business practices, we strive to contribute to environmental protection and the preservation of natural resources wherever we are present, and attempt to reduce impacts to the greatest extent possible when they arise.
We strive for the continuous improvement of environmental and energy efficiency through the methodical monitoring of the consumption of energy and other resources, and through the setting of specific targets. Because we are aware of our responsibility in this area, we adopted a new environmental statement for Telekom Slovenije in Environmental management (telekom.si).
We adapt our services and products to global guidelines on energy and environmental development. We are committed to monitoring and complying with all Slovenian and European legal requirements in this area. We also monitor and comply with other requirements linked to the energy and environmental aspects of ICT services and operations. We also encourage our users to take a responsible approach to managing energy and the environment. Progress in this area is monitored using measurable indicators.
Regular monitoring of the use of resources, in particular energy consumption and associated costs;
Strategic and operational energy objectives that are in line with our operations and development;
Monitoring and compliance with the requirements of Slovenian and European law; and
Methodical prevention and reduction of the impacts of the Group’s activities on the environment and the world we live in.
Telekom Slovenije provides the majority of energy and environmental services for companies in Slovenia in operational terms, while subsidiaries are also taking greater responsibility for their own energy and environmental impacts. The total energy costs of the Telekom Slovenije Group amounted to EUR 11.5 million in 2020, a decrease of 1% relative to the previous year. The majority (EUR 9.1 million or 79.5%) is accounted for by the costs of Telekom Slovenije, followed by IPKO in Kosovo (14.7%), where costs were up by 3% in 2019, and subsidiaries in Slovenia (5.7%).
Energy consumption represents one of Telekom Slovenije’s most significant impacts on the environment. We contribute to improved energy efficiency primarily through the achievement of strategic and operational objectives that are in line with business needs and the expectations of our stakeholders. We also comply with energy efficiency guidelines over the entire lifecycle in the procurement process and in the development of services.
We actively include employees, suppliers, external contractors and business partners in our activities to achieve energy efficiency. Awareness amongst employees about the importance of this area is spread through training and communication at all levels of the Company’s operations. We also encourage our users to take a responsible approach to energy and the environment. Through e-services, they are able to reduce their carbon footprint.
We report to regulatory and other government authorities (e.g. MI, ARSO, SURS, FURS and AKOS) in accordance with the law.
We began implementing an energy management system (EnMS) in 2009, and have used that system over the years to reduce total energy consumption. Because our energy management system is subjected to independent external audits, we fulfil the conditions to perform energy with our own experts. With more than 140 completed energy reviews, we are among the leaders in Slovenia. On an annual basis, this means savings of close to EUR 40 thousand. We performed internal energy reviews again in 2020 for all buildings for which the validity of the previous review expired.
| Year | Electricity (millions of KWh) | Brutto costs of kWh (in EUR) |
|---|---|---|
| 2009 | ||
| 2010 | ||
| 2011 | ||
| 2012 | ||
| 2013 | ||
| 2014 | ||
| 2015 | ||
| 2016 | ||
| 2017 | ||
| 2018 | ||
| 2019 | ||
| 2020 |
Prior to the establishment of the ISO 50001 project in 2009, the annual energy costs of the Telekom
Slovenije Group and Telekom Slovenije totalled more than EUR 18 million and EUR 11.5 million, respectively.
Despite rising energy prices, we reduced total energy costs by EUR 112.8 thousand in 2020 relative to the
previous year, while the same costs have been reduced by more than EUR 2.4 million relative to the baseline
year of 2009.
Electricity is the prevalent energy source in terms of quantity and costs. Electricity consumption was
reduced by 0.4% in 2020 relative to 2019, while electricity costs were up by 0.9%. Energy consumption was
up primarily at base stations due to the upgrading of capacities to the latest mobile generations, increased
growth in traffic and the use of the devices of other users in our premises. Other users of our real estate
account for a fifth of electricity consumption. Production by own solar power plants accounted for close to a
quarter of a percent of total electricity consumption (207 MWh).
Telekom Slovenije’s energy management system facilitates effective control over energy consumption, and
includes 2,380 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.
The figures below illustrate electricity consumption and costs by year compared with changes in gross
energy costs.
| Telekom Slovenije | 2020 | 2019 | 2018 | Index 20/19 |
|---|---|---|---|---|
| Electricity costs (in EUR thousand) | 7,728.5 | 7,660.4 | 7,584.1 | 101 |
| Total electricity consumption (in GWh)* | 73.5 | 73.8 | 75.0 | 100 |
| Cost of fuel for vehicle fleet (in EUR thousand) | 755.4 | 953.7 | 1,151.8 | 79 |
| Cost of fuel for heating (in EUR thousand) | 633.5 | 616.1 | 628.5 | 103 |
Source: SAP; except for electricity consumption – energy management system.
The overall energy objective – to reduce total electricity consumption – is integrated into the personal objectives
of the primarily responsible organisational unit. The energy management system is likewise integrated into regular work
processes. To that end, we also take into account other 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 achieved strategic and operational objectives in connection with efficient consumption, and even exceeded
them in several segments. By optimising equipment and premises at functional locations, we succeeded in exceeding
the majority of established objectives for reducing energy consumption in the fixed segment of the network, despite
the fact that the associated
Costs in 2020 were slightly higher than in 2019 due to higher energy prices. It is difficult to forecast the trend for 2021 due to the potential impacts of the pandemic, while longer-term forecasts indicate continued growth in energy prices. Due to the increasing capacities of data centres and the expansion and development of the mobile network we are expecting a rise in electricity consumption in those segments in 2021.
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.
The transition to new generations of ICT equipment and the discontinued use of previous generations represent an important element of energy savings.
Telekom Slovenije carried out 267 EMR measurements in 2020 (261 in 2019) due to the expansion of the fourth and fifth generation mobile network, 92 of those EMR measurements for 5G technology. All measurements were carried out by institutions authorised to perform EMR measurements in Slovenia.
The level of radiation at base stations upgraded with LTE/4G and 5G NR technology has increased slightly, but remains environmentally acceptable and within the limits established by Slovenian law, which in some respects is even stricter than European law. 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. The aforementioned agency monitors data and facilitates the public viewing of that data.
EMR measurements are also accessible at http://www.arso.gov.si/varstvo%20okolja/sevanja/.
We did not record any formal complaint proceedings in 2020 in connection with EMR in the environment.
http://www.inis.si/index.php?id=348&no_cache=1, http://www.inis.si/index.php?id=347#.WEfua3kzW70
Changes in the area of mobility occur quickly due to environmental challenges, rapid technological development and the need to improve the quality of life. In 2020, Telekom Slovenije drove 1,535,380 km less than in 2019 due to the impact of the pandemic and remote work. As a result, total fuel consumption was down by 11%. We are setting up a charging infrastructure for the transition to electric mobility. We purchased two electric freight vehicles in order to achieve a new user experience and include electric vehicles in the regular work process.
| NUMBER OF VEHICLES BY FUEL TYPE AND CONSUMPTION IN LITRES AT TELEKOM SLOVENIJE | Diesel, no. of vehicles | Diesel, consumption in litres | Petrol, no. of vehicles | Petrol, consumption in litres | Total no. of vehicles | Total consumption in litres |
|---|---|---|---|---|---|---|
| 2020 | 380 | 519,741 | 278 | 268,803 | 658 | 788,544 |
| 2019 | 387 | 556,543 | 296 | 326,801 | 683 | 883,344 |
| 2018 | 381 | 559,162 | 308 | 397,140 | 689 | 956,302 |
Source: SAP/BI
Nearly four fifths of Telekom Slovenije’s carbon footprint is accounted for by electricity consumption (Scope 2). Telekom Slovenije’s total carbon footprint over the last three years is estimated at around 50,000 tonnes of CO2eq, of which close to 39,300 tonnes is accounted for by emissions due to electricity. Direct emissions (Scope 1), which include the consumption and emissions by other lessees of our locations, account for around 2,200 tonnes, while other indirect emissions (Scope 3) account for more than 8,000 tonnes of CO2ekv.
In real estate management, we strive for the optimisation and management of the costs of fees, energy, maintenance, insurance, amortisation and depreciation and investments. Technological premises are an important element of ensuring a stable and secure network. Because we have concluded easement or lease agreements for the majority of that real estate, special attention is given to ensuring legal aspects are in order. We also strive for the most appropriate and rational use possible.
Through internal media, and train environmental management system administrators. We are reducing the number of collections or the volume of containers at locations where employees are not present at all times. We have placed special containers in high-traffic areas at Telekom centres for the collection of used batteries. Users can also dispose of waste packaging from purchased products and used electronic devices at points of sale, for which they receive special benefits. We thus collected 2,028kg of WEEE in 2020, including 1,901kg of modems, telephones and adapters, 97kg of monitors and tablet computers, and 30kg of batteries. In this way, we continue on our path to the circular economy model.
| Type of waste (in tonnes) | 2020 | 2019 | 2018 | Index 20/19 |
|---|---|---|---|---|
| Metal, WEEE and batteries | 302 | 208 | 175 | 145 |
| Waste packaging | 150 | 177 | 148 | 85 |
| Other | 100 | 134 | 78 | 70 |
| Construction waste | 8,347 | 7,815 | 3,295 | 107 |
| Total | 8,900 | 8,333 | 3,697 | 107 |
Water does not represent an important environmental aspect for Telekom Slovenije, as it is not a major consumer of water and it does not need water to perform its core activity. We monitor data manually due to the scattering of locations owned by the Company throughout Slovenia (only a few of which are in water protection areas) and due to various ordinances on the provision of municipal services. Drinking water is monitored via received bills, and we cannot currently disclose precise consumption in terms of quantity. The majority of the locations owned by the Company comprise properties where employees are seldom present. Water consumption at those locations is thus low.
Telekom Slovenije continues to help create a caring and environmentally friendly society again in 2020 through the gradual discontinuation of paper operations. Because we care for the environment and environmentally friendly operations, we implement numerous initiatives and activities to reduce the number of printed invoices. Through activities implemented in 2020, we succeeded in improving the ratio of electronic invoices to printed invoices relative to 2019. A total of 46.9% of invoices were thus received in electronic form in 2020, an increase of 4 percentage points relative to 2019. The consumption of office paper was down by 24% compared with 2019, as the result of digitalisation and remote work.
| Year | 2020 | 2019 | 2018 | Index 20/19 |
|---|---|---|---|---|
| Consumption | 14,759 | 19,533 | 17,366 | 76 |
form for their entire life cycle. Our field technicians also sign documents electronically in their work. A large proportion of agreements and other documents are sent to users in electronic form after they are signed. We also digitalise incoming documents, so that more than 70% of those documents are already digitalised. Users who gave their consent for direct debit only receive their monthly invoice for services in electronic form. We also encourage users to receive electronic invoices for the purpose of electronic banking.
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. We received certification at the end of 2018 in the form of a decision from the Archives of the Republic of Slovenia that Telekom Slovenije’s internal rules are compliant with the law governing the protection of documentary and archive materials.
TSmedia also uses e-invoices, as well as electronic forms for procurement and the reservation of company vehicles, while orders are sent to suppliers electronically. The telephone directory, which is accessible on DVD and on the itis.si website, is also issued electronically.
When fulfilling orders, we require suppliers to comply with all valid legal requirements and best practices in the area of energy and environmental management and related areas, in particular provisions governing occupational health and safety, the handling of chemicals and other hazardous materials, the transportation of hazardous goods, fire protection and energy efficiency.
Suppliers must also comply with Telekom Slovenije’s environmental statement and energy statement, its waste management plan and Rules on Separate Waste Collection by Location. In their work, suppliers must comply with best practices and technologies (BAT - Best Available Technologies and Practices), and have in place the appropriate management of packaging, packaging waste, electrical and electronic equipment, waste electrical and electronic equipment, batteries and waste batteries in accordance with valid regulations governing these areas.
When ordering energy services, products and equipment, those that are energy efficient have priority. We thus take into account an assessment of energy efficiency over the entire expected lifecycle of a service, product or equipment.
operational terms, while subsidiaries are also taking greater responsibility for their own energy and environmental impacts.
The total energy costs of the Telekom Slovenije Group amounted to EUR 11.5 million in 2020, a decrease of 1% relative to the previous year. The majority or 79.2% is accounted for by the costs of Telekom Slovenije, followed by IPKO (14.7%), where costs were up by 3% in 2019, and subsidiaries in Slovenia (6.1%). Among subsidiaries in Slovenia, GVO is the largest consumer of fuels due to transportation activities and work machinery. The company continued the upgrading of its vehicles fleet, the optimisation of resource and vehicle planning in an internal application, and the raising of employee awareness about economical and safe driving.
Total fuel consumption was up by 5% in 2020 relative to 2019, primarily due to an increase in the scope of field work. Fuel costs were down by 13% relative to 2019 due to lower fuel prices. Efficiency in terms of distance travelled per litre of fuel was down minimally.
In accordance with established programmes aimed at the achievement of environmental objectives in 2020, GVO applied internal knowledge to draw up a design concept and project documentation, and built charging stations for electric vehicles at four locations (Ljubljana, Maribor, Celje and Nova Gorica). Two electric vehicles were added to the fleet. GVO thus continues to implement its established sustainable development strategy, which it will continue to pursue in the coming years.
| Year | 2020 | 2019 | 2018 | Index 20/19 |
|---|---|---|---|---|
| Fuel costs (in EUR) | 464,438 | 533,000 | 530,000 | 87 |
| Fuel (in litres) | 532,273 | 507,289 | 493,895 | 105 |
| Electricity costs (in EUR) | 47,872 | 45,577 | 40,670 | 105 |
| Total electricity consumption (in kWh) | 438,779 | 417,575 | 357,905 | 105 |
Avtentaimplements permanent measures in the premises it leases for the economical consumption of electricity and the separation of waste. TSinposystematically monitors and controls the consumption of energy. It owns two company vehicles.
| Year | 2020 | 2019 | 2018 | Index 20/19 |
|---|---|---|---|---|
| Electricity (in kWh) | 10,909 | 10,363 | 11,595 | 105 |
| Fuel (in litres) | 5,614 | 5,449 | 4,338 | 103 |
| Electricity costs (in EUR) | 1,430 | 1,438 | 1,484 | 100 |
| Fuel costs (in EUR) | 4,717 | 5,547 | 4,462 | 85 |
Soline manages the state-protected Sečovlje Salina Nature Park (SSNP) under a concession agreement concluded with the Republic of Slovenia. Key administrative objectives for the period 2011 to 2021 were set out in the plan for managing the Sečovlje Salina Nature Park adopted by the Slovenian government. The most important of those objectives include the preservation of the wetland characteristics of the saltpan ecosystem, its biodiversity and the economic and cultural values of the region. An annual plan and a report on the management of the park are submitted to the Ministry of the Environment and Spatial Planning for approval. Every activity that exceeds the normal impacts on the environment must be approved by the department responsible for the protection of nature and cultural heritage.
We are achieving administrative objectives through the following activities:
The area of the park, measuring 700 hectares, land and other real estate are owned by the Slovenian government. In the scope of the climate fund, we renovated around 400 meters of embankments in the Lera salt production area in 2020.
The saltpan ecosystem is specific to the coastal wetlands. The entire salt production process is based on traditional, 700-year-old processes and components from the local environment, and thus does not produce any environmentally harmful by-products. 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
| EUR | 2020 | 2019 | 2018 | Index 20/19 |
|---|---|---|---|---|
| Electricity costs | 1,471,136 | 1,386,125 | 1,369,938 | 101 |
| Fuel costs | 212,401 | 255,007 | 300,857 | 94 |
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 2020.
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. 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, while the region is recognised as one of two that are of national importance to the migration of birds according to the Bird Directive. The saltpans are defined as a wetland of international importance according to the Ramsar Convention.
Due to the COVID-19 pandemic and the associated drop in the number of tourists and local visitors, we recorded a drastic drop in the number of visits to the SSNP in 2020. The SSNP received 24,457 visitors, a decrease of 51% relative to 2019. A total of 79 guided tours of Lera were organised, an 80% decrease in the number of tours relative to the previous year. There were no guided tours of the Saltworks Museum, as the museum was closed to visitors.
The sensitive natural environment in which the park is situated dictates that the company continuously improves environmental and energy efficiency. The consumption of electricity was reduced in previous years through changes in the regime for managing cooling and heating devices.
102GRI GS 103-1, 103-2, 103-3
103GRI GS 304-1, 304-3
104GRI GS 304-4
in visitor buildings. We use web conferencing and mobile telephones to communicate in the area of international cooperation in the scope of park management, through which we reduce work-related travel. Soline was not fined for failure to comply with environmental laws and regulations.
| Soline | 2020 | 2019 | 2018 | Index 20/19 |
|---|---|---|---|---|
| Consumption of natural gas (in m3) | 4,006 | 4,129 | 3,958 | 97 |
| Consumption of electricity (in MWh) | 401.43 | 392.12 | 393.28 | 102 |
| Consumption of fuel (in litres) | 25,970 | 35,295 | 30,809 | 74 |
| Consumption of sanitary water in m3 | 1,582 | 6,292 | 7,421 | 25 |
| Consumption of sea water in m3 | ∫salt production ∫Thalasso Spa Lepa Vida | |||
| 184,050 | 182,000 | 2,050 | ||
| 196,210 | 194,000 | 2,210 | ||
| 181,658 | 180,000 | 1,658 | ||
| Waste in m3 | 117 | 135 | 120 | 87 |
| Paper consumption in tonnes | 4 | 9 | 10 | 44 |
We maintained the consumption of natural gas and electricity at a level similar to the previous year, while fuel consumption was down sharply due to the suspension of construction works from the climate fund and reduced business travel. Sea water is essential to the operations of Soline, as it is required for the production of salt and the functioning of the Lepa Vida Thalasso Spa. Sea water from the production of salt is returned to the sea uncontaminated. Only used sanitary water that is discharged into the public sewerage network is treated as waste water. Due to the rehabilitation of the water supply network within the Lera salt production area, we reduced the consumption of sanitary water by 75% in 2020, while overall consumption of sea water was down by 6%. We used 7% less sea water for the functioning of the Lepa Vida Thalasso Spa, in particular for the pool and salt-water showers, where the use of soap and shampoo is forbidden. The sea water that is used for showering and the rinsing of salt-pan mud from the body passes through two collectors to separate mud from the water, which is discharged back into the sea. The sea water used in the swimming pool flows to a collection tank during filtering, where it is dechlorinated and passes to a drainage system for its return to the sea.
Waste is also consistently separated and disposed of by the competent municipal department.
GRI GS 307-1
GRI GS 302-1, 303-3, 306-2
Support of disabled workers’ companies
0.4% of suppliers are registered as disabled workers’ companies.
0.63% of turnover is generated with those suppliers.
As a socially responsible company, we expect suppliers to respect human rights, ensure equal opportunity in the workplace, and implement employment procedures that are fully compliant with the law and regulations.
97% of suppliers are from the European Union.
91% of suppliers are from Slovenia; the majority of turnover is generated with them.
Liabilities are settled by agreed payment deadlines. We also settle liabilities early in the event of surplus liquidity.
The procurement function is centralised, and thus facilitates the use of funds in a more economic, efficient and transparent manner. To facilitate management, purchases of specific goods and services, for which procedures are carried out by experts from the ordering area, are excluded from central procurement. The procurement of those goods and services is carried out by decentralised procurement units at the Company that are given the necessary authorisations to carry out procurement procedures.
The Company has a standardised procurement procedure in place that facilitates the transparent and equal treatment of potential suppliers. We assess the risks of cooperation with new suppliers, and thus prevent increased costs and the loss of reputation. We regularly review existing strategic suppliers, assess them and define measures for improving cooperation.
We classify business partners as suppliers, operators and agents in the sale of goods and the conclusion of subscriptions. Telekom Slovenije cooperates with more than 3,000 suppliers from 38 countries. The majority or 97% of suppliers are from the European Union.
Total turnover between Telekom Slovenije and its Slovenian subsidiaries and their business partners amounted to more than EUR 638 million in 2020, including VAT. The aforementioned amount includes sponsorships and donations.
We expect suppliers to respect the Code of Conduct for the Suppliers of the Telekom Slovenije Group, which defines basic principles of conduct and standards. If a breach is suspected, the Company verifies whether a supplier’s conduct is in line with the aforementioned code.
Anti-corruption clauses are built into general procurement terms and conditions, and in agreements with suppliers. By signing a statement, we eliminate potential conflicts of interest in the procurement process. We also verify potential conflicts of interest with suppliers.
In the unpredictable conditions of the pandemic, we ensured constant communication with suppliers for the uninterrupted supply of equipment and implementation of services at Telekom Slovenije, and regularly monitored the impact of the pandemic on supply. We increased inventories of strategic materials and consistently ensured buffer stocks.
With the exception of a few minor delays that did not affect operations, we did not encounter any major problems in supply.
We also ensured uninterrupted supply by asking suppliers who have a business continuity management system in place or who hold an ISO22301 certificate to report on how their system is set up and what activities they are planning to ensure supply.
Market conditions require an agile logistics function, which is achieved through constant improvements, in terms of the optimisation of logistics processes with the help of information technology and stakeholders included in the logistics chain. We continuously monitor inventory levels through a reporting system. We follow the guiding principle of satisfying the internal and external users of services through optimal logistics costs and stakeholders. Due to measures in connection with COVID-19, we identified a significant increase in the activities of the Online Store in 2020, and made the necessary adjustments for the delivery of goods to all stakeholders.
Ensuring the secure functioning of the work environment and the comprehensive protection of the Company’s assets remain two of the priority corporate security tasks within the Telekom Slovenije Group. Through the comprehensive management of corporate security, we facilitate a more rapid response to recorded security events and mitigate security risks. By constantly monitoring development in the area of corporate security, implementing innovative solutions to prevent security events and rapidly identifying new threats, we ensure the security and quality of the network and services, which represents an important competitive advantage of the Group.
The year 2020 demanded immediate adaptations and changes to the Company’s processes. The established BCMS helped us adapt processes quickly and effectively, while we adapted security measures through the ISMS. We placed even more emphasis on cyber security, where the Cyber Security Operation Centre plays a key role. We thus identified and appropriately responded to cyber security threats more quickly.
security culture and employees’ awareness of the importance of security are at a high level. We also informed users about security threats and the secure use of electronic communications.
Content according to GRI GS – core option “This report has been prepared in accordance with the GRI Standards: Core option.”
| GRI standard and disclosure | Description | Reporting boundaries (within and outside the organisation) | Section/page | Comments/external assurance |
|---|---|---|---|---|
| GRI 101: Foundation 2016 | ||||
| GRI 102: General disclosures 2016 | Presentation of the organisation | |||
| 102-1 | Name of the organisation | Telekom Slovenije Group | 1.1/p. 8 | |
| 102-2 | Brands, products and services | Telekom Slovenije Group - brands and products: | 1.1/p. 9, 2.7.2/p. 109–110 | |
| - service types: | 2.7.3/p. 111–121 | |||
| There are no limitations on the services marketed by Telekom Slovenije Group companies. | ||||
| 102-3 | Location of headquarters | Telekom Slovenije Group | 1.1/p. 8 | |
| 102-4 | Location of operations | Telekom Slovenije Group | 1.6/p. 23 | |
| 102-5 | Ownership and legal form | Telekom Slovenije Group | 1.1/p. 8, 1.11/p. 59 | |
| 102-6 | Markets served (geographical and sectoral breakdown and types of customers) | Telekom Slovenije Group - geographical breakdown: | 1.6/p. 23 | |
| - service segments: | 2.7.1/p. 102–108 | |||
| - customer types: | 2.7.3/p. 111 | |||
| 102-7 | Size of organisation | Telekom Slovenije Group - number of employees: | 2.9.6/p. 159 | |
| - sales revenue, debt-to-equity: | 2.1/p. 64 | |||
| - number of products and services: | 2.7.2/p. 109–110, 2.7.3/p. 111 | |||
| We do not report on the number of organisational units and the number of products. No employees, with the exception of IPKO, a foreign company, and the parent company GVO. | ||||
| 102-8 | Employees by type of employment, type of contract, region and gender | Telekom Slovenije Group | 2.9.6/p. 159, 160 | |
| Data regarding the number of employees with respect to contract type (permanent/temporary) are not reported by gender, nor are data regarding the number of employees with respect to type of employment (full-time/part-time). We do not report on the activities of contracted workers. Data regarding employees are collected |
We report on types of suppliers and the scope of cooperation with them.
Telekom Slovenije Group, Telekom Slovenije
There were no significant changes in the supply chain in 2020.
Telekom Slovenije, local and wider environment 2.9.8/p.177
Telekom Slovenije Group 1.7/p. 25
Telekom Slovenije Group 1.7/p. 25
Telekom Slovenije Group 1.3/p. 16 – 18
The Group’s sustainable development objectives are defined in the Strategic Business Plan (SBP) for the period 2020 to 2023 and the SBP for the period 2021 to 2025, which were adopted by Telekom Slovenije’s Management Board. Strategic policies are also accessible on the Company’s website at http://www.telekom.si/o-podjetju/predstavitev/strateske-usmeritve.
Telekom Slovenije Group, suppliers, local and wider community
Telekom Slovenije Group 1.6/p. 23
1.10.3/p.46,49
List of stakeholder groups engaged by the organisation
Telekom Slovenije Group 2.9.2/p. 147–149
Percentage of employees covered by collective agreements
Telekom Slovenije Group 2.9.6/p. 160
Basis for identification and selection of stakeholder groups with whom to engage.
Telekom Slovenije Group 2.9.2/p. 147,148
The communication strategy with stakeholders is an integral part of Telekom Slovenije, d. d.’s Corporate Governance Policy and is accessible on the Company’s website.
Approaches to stakeholder engagement and frequency of engagement by stakeholder group
Telekom Slovenije Group Key information: 2.9.2/p.147–149, additional information in the sections:
Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to them, including though reporting
Telekom Slovenije Group Key information: 2.9.2/p. 147,149, additional information in the sections:
Entities included in the consolidated financial statements
Telekom Slovenije Group Note 5 in the Accounting Report (composition of the Telekom Slovenije Group), p.233–234
Process of defining report content and aspect boundaries
Telekom Slovenije Group 2.9.1/p. 143
List of material topics
We do not report on immaterial topics.
Telekom Slovenije Group 2.9.1/p. 143
Telekom Slovenije Group 2.9.1/p. 143
There has been no significant change in the scope of reporting relative to previous reports.
Telekom Slovenije Group 2.9.1/p.143
Telekom Slovenije Group 2.9.1/p. 143
Telekom Slovenije Group 2.9.1/p. 143
Telekom Slovenije Group 1.1/p. 8
2.10/p.187
2.10/p.187–196
Telekom Slovenije Group 2.10/p.187 2.11/p.197
We regularly submit the annual report for external assurance since 2009, when the GRI Sustainability Reporting Guidelines were first included in the report. The scope and basis of external assurance are evident from the sustainability report verification statement.
Explanation of the material topic and its boundaries
1.8.3/p.30–31
Telekom Slovenije Group, shareholders, local and wider community
Telekom Slovenije Group, users
Due to the exposure of the Telekom Slovenije Group’s telecommunications equipment, our definition of key risks includes risks associated with the external environment and climate change. Those risks are also present at Soline, and impact salt production and the number of visitors to the Lepa Vida spa. These risks are prevented in investments in new networks through underground construction.
We do not report on financial consequences.
Telekom Slovenije Group (employees)
2.9.6/p.166
Explanation of the material topic and its boundaries
1.8.3/p.30–31
Telekom Slovenije Group 2.9.6/p. 166 We do not report on ratios.
Explanation of the material topic and its boundaries
Telekom Slovenije Group– 103-1, 103-2: 2.3/p.69, – 103-3: 2.8.1/p.134
Telekom Slovenije Group, users, local and wider community
2.3/p.69, 2.8.1/p.134
Explanation of the material topic and its boundaries
Telekom Slovenije Group 2.5.1/p. 82
The area of anti-corruption, in connection with the management approach (GRI GS 103-3), is monitored and adapted as required by the compliance and integrity officer.
Telekom Slovenije
We do not report on the number of employee training hours.
Explanation of the material topic and its boundaries
Telekom Slovenije Group
The basic premise for the management approach according to GRI GS 103-3 are the Guidelines for ensuring compliance with competition law, which are monitored and adapted as required by the compliance and integrity officer.
Telekom Slovenije
Telekom Slovenije Group
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.
Telekom Slovenije Group
Telekom Slovenije Group
We include stakeholders and tax-related regulatory bodies in the process of fulfilling tax obligations.
Telekom Slovenije Group
Note 5 in the Accounting Report (composition of the Telekom Slovenije Group), p.233–234 and Note 13. Corporate income tax, deferred tax assets and liabilities, p. 244
We report on tax rates.
Explanation of the material topic and its boundaries
Telekom Slovenije Group
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).
Telekom Slovenije, TSmedia, Avtenta, GVO, TSinpo, IPKO and Soline
We report on electricity consumption in kWh for companies in Slovenia. We report on the consumption of heating fuel in euros. We do not report on energy sources consumed (renewable and non-renewable sources).
Interactions with water as a shared resource
Soline 103-1, 103-2, 103-3; 2.9.8/p.179, 303-1: 2.9.8/p.184
We only report on how water is withdrawn and discharged.
Management of water discharge-related impacts
Soline 2.9.8/p. 184
We do not report on the methodology/standards used to determine the consumption and quality of the discharge of water.
Water withdrawal
Soline 2.9.8/p.184
Explanation of the material topic and its boundaries
Soline 2.9.8/p. 182
Location and size of land managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas
Soline, local and wider community 2.9.8/p.182
We report on the location and size of land managed by the company in protected natural areas.
Habitats protected or restored
Soline, local and wider community 2.9.8/p.182
We do not report on the methodologies that were used for that purpose.
Number of IUCN Red List species and national conservation list species with habitats in areas affected by operations
Soline, local and wider community 2.9.8/p.182
Explanation of the material topic and its boundaries
Telekom Slovenije, local and wider community 2.9.8/p.178
on substances that deplete the ozone layer and Regulation (EC) 842/2006 on certain fluorinated greenhouse gases, and the Regulation on the use of ozone-depleting substances and fluorinated greenhouse gases.
We control the evaluation of the approach in accordance with the ISO 14001 standard.
Telekom Slovenije 2.9.8/p. 178
We only report on the total estimated amount of emissions.
Telekom Slovenije 2.9.8/p. 178
We only report on the total estimated amount of emissions.
Telekom Slovenije 2.9.8/p. 178
We only report on the total estimated amount of emissions.
Explanation of the material topic and its boundaries
Telekom Slovenije 2.9.8/p. 178
We control the evaluation of the approach in accordance with the ISO 14001:2015 standard.
Telekom Slovenije, Soline 2.9.8/p.178, 183
Kvantitativni podatki o načinih odstranjevanja so vključeni delno. Prikazani podatki izhajajo iz evidenčnih listov.
Explanation of the material topic and its boundaries
Telekom Slovenije 2.5.1/p. 83
Regular and transparent reporting to the regulatory body and other government authorities (e.g. ARSO, SORS, FARS, AKOS and ETNO) also represent an important element of the Group’s energy and environmental activities.
Telekom Slovenije, Soline 2.5.2/p.85, 2.9.8 / p. 183
No monetary or non-monetary sanctions with respect to the environment were imposed against Telekom Slovenije and Soline.
Explanation of the material topic and its boundaries
Telekom Slovenije Group 2.9.6/p. 158
Amended on the basis of periodic reviews performed by the compliance and integrity officer.
Telekom Slovenije Group 2.9.6/p. 158,159
Data by gender are not disclosed.
Telekom Slovenije, GVO, TSmedia, Avtenta 2.9.6/p.166
Telekom Slovenije Group, Telekom Slovenije 2.9.6/p.171, 172
We do not report on the number of persons entitled to parental leave, the number of persons who were employed for an additional 12 months following their return from parental leave or on the retention rate of employees who exercised their right to parental leave.
Explanation of the material topic and its boundaries
Telekom Slovenije 2.9.6/p. 168
Telekom Slovenije 2.9.6/p. 168
Deadlines for notifying employees are in line with valid legislation and are not included in the collective agreement.
Explanation of the material topic and its boundaries
Telekom Slovenije Group 2.9.6/p. 168
All companies in Slovenia, except Soline. 2.9.6/p.169
All companies in Slovenia, except Soline. 2.9.6/p.169
We analyse every accident using form ER-8.
All companies in Slovenia, except Soline. 2.9.6/p.169
All companies in Slovenia, except Soline.
2.9.6/p.169
All companies in Slovenia, except Soline.
2.9.6/p.166, 169
Telekom Slovenije
We define electromagnetic radiation as one of the more significant impacts of our operations. We inform employees about this topic via the intranet and users via brochures at points of sale.
Telekom Slovenije Group
2.9.6/p. 170
Reporting relates to the number of injuries.
Explanation of the material topic and its boundaries
Telekom Slovenije Group
2.9.6/p. 161
103-3: We evaluate education and training using a questionnaire after each event.
Telekom Slovenije Group, Telekom Slovenije
2.9.6/p.166
We do not report on the number of employee training hours by category and gender.
Telekom Slovenije
2.9.6/p. 160 ,165
Telekom Slovenije Group
2.9.6/p. 167
We do not report by employee category. We do not report by gender, as we do not make a distinction in this regard.
Explanation of the material topic and its boundaries
Telekom Slovenije Group
2.9.6/p. 158
103-3: The Code of Ethics is amended on the basis of periodic reviews performed by the compliance and integrity officer.
We do not report data regarding employees by age. We also do not report by minorities, as we do not make a distinction in this regard.
Telekom Slovenije Group 2.9.6/p. 167
Explanation of the material topic and its boundaries
Telekom Slovenije Group 2.9.6/p. 158
103-3: The Code of Ethics is amended on the basis of periodic reviews performed by the compliance and integrity officer.
Telekom Slovenije Group 2.9.6/p. 158
Telekom Slovenije Group 2.9.6/p. 158
103-3: The Code of Ethics is amended on the basis of periodic reviews performed by the compliance and integrity officer.
Telekom Slovenije 2.9.6/p. 162
Training on human rights focused on the protection of personal data and the Code of Ethics. The Group does not report on the percentage of employees included in training.
Explanation of the material topic and its boundaries
Telekom Slovenije Group 103-3: 2.5.1/p.82
In terms of public policies, the risk of pressure from the regulatory body regarding price-related, technical and technological obligations exists for Telekom Slovenije. Telekom Slovenije proactively participates in all regulatory proceedings by submitting remarks, positions and the appropriate analyses.
Telekom Slovenije Group 2.5.1/p. 82
No political contributions were made.
Explanation of the material topic and its boundaries
Telekom Slovenije, TSmedia, IPKO, users 2.7.5/p.131
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
Telekom Slovenije, TSmedia, IPKO, users 2.7.5/p.131
Explanation of the material topic and its boundaries
Telekom Slovenije Group 2.5.1/p. 82
The area of socioeconomic compliance, in connection with the management approach (GRI GS 103-3), is monitored and adapted as required by the compliance and integrity officer.
Monetary value of fines and number of non-monetary sanctions for non-compliance with laws and regulations in the social and economic area
Telekom Slovenije Group 2.5.2/p. 86
We do not report on the total value of fines and non-monetary sanctions imposed.
DMA Telekom Slovenije, TSmedia, users, local and wider community 2.9.5/p.156
Measures to improve accessibility to media content and the protection of vulnerable audiences
Telekom Slovenije, TSmedia, users, local and wider community 2.9.5/p.156
Infrastructure investments in the telecommunications network by region
Responses to emergencies are also part of the business continuity plan.
We improved the transparency of invoices by updating them in 2019.
We can look back proudly on our achievements, but are also focused on the future. Superior technology, innovative solutions and continuous development are responses to the needs of contemporary society. Digitalisation brings even more connectivity, brings users ever more entertainment, and brings companies even more flexibility, efficiency and unlimited opportunities. Through an ever-expanding and comprehensive ecosystem of innovative solutions, we are co-creating the digital future of Slovenia.
Telekom Slovenije @TelekomSlo #Connected #BestNetwork
Developing in step with technology are society, the economy and our lives.
| Telekom Slovenije Group | Telekom Slovenije | In EUR thousand | Note | I–XII 2020 | I–XII 2019 Restated | |
|---|---|---|---|---|---|---|
| Revenue | 7 | 647,177 | 664,892 | 591,693 | 602,231 | |
| Other operating income | 8 | 7,694 | 5,938 | 5,254 | 2,954 | |
| Cost of goods sold | 9 | -90,427 | -87,000 | -98,493 | -92,604 | |
| Costs of materials and energy | 9 | -14,546 | -15,303 | -10,752 | -10,646 | |
| Costs of services | 9 | -226,036 | -236,945 | -217,367 | -228,123 | |
| Labour costs | 10 | -111,101 | -109,633 | -93,320 | -91,770 | |
| Depreciation/Amortisation | 15, 16, 17, 22 | -167,279 | -173,791 | -137,351 | -141,651 | |
| Other operating expenses | 11 | -2,879 | -6,955 | -2,734 | -6,575 | |
| Total operating expenses | -612,268 | -629,627 | -560,017 | -571,369 | ||
| Operating profit | 42,603 | 41,203 | 36,930 | 33,816 | ||
| Finance income | * | 12 | 2,177 | 2,905 | 5,724 | 6,497 |
| Finance expenses | * | 12 | -10,173 | -13,843 | -18,501 | -38,457 |
| Profit before tax | 34,607 | 30,265 | 24,153 | 1,856 | ||
| Current tax | 13 | -636 | -705 | 0 | ||
| Deferred tax expense | 13 | 113 | -1,016 | 21 | -1,271 | |
| Net profit from continuing operations | 34,084 | 28,544 | 24,174 | 585 | ||
| Loss from discontinued operations | 5 | -9,219 | -27,603 | n/a | n/a | |
| Net profit for the year | 24,865 | 941 | 24,174 | 585 | ||
| Total earnings per share - from continuing operations in EUR | 14 | 5.24 | 4.39 | 3.72 | 0.09 | |
| Total earnings per share in EUR | 14 | 3.82 | 0.14 | 3.72 | 0.09 |
*Finance income of Telekom Slovenije includes dividends received and interest on loans to subsidiaries. Finance expenses of Telekom Slovenije include the effect of the sale of Planet TV. More details in Note 12.
The correction is presented in detail in Note 41.
| Skupina Telekom Slovenije | Telekom Slovenije | In EUR thousand | Note | 31 Dec 2020 | 31 Dec 2019 Restated |
|---|---|---|---|---|---|
| ASSETS | |||||
| Intangible assets | 15 | 190,033 | 194,945 | ||
| Property, plant and equipment | 166 | 64,644 | 656,383 | ||
| Right-of-use assets | 17 | 77,420 | 79,300 | ||
| Investments in subsidiaries | 180 | 37,001 | |||
| Other investments | 19 | 3,068 | 4,860 | ||
| Contract assets | 202,668 | 3,646 | |||
| Other receivables | 25 | 17,081 | 24,405 | ||
| Deferred costs | 21 | 1,438 | 7,603 | ||
| Investment property | 22 | 1,258 | 1,030 | ||
| Deferred tax assets | 13 | 44,448 | 44,044 | ||
| Total non-current assets | 1,002,058 | 1,016,216 | |||
| Assets held for sale | 23 | 214 | 500 | ||
| Inventories | 24 | 26,175 | 24,620 | ||
| Trade and other receivables | 25 | 162,936 | 153,559 | ||
| Contract assets | 26 | 23,527 | 22,780 | ||
| Deferred costs | 27 | 4,250 | 18,638 | ||
| Investments | 19 | 512 | 679 | ||
| Cash and cash equivalents | 28 | 8,167 | 13,219 | ||
| Total current assets | 225,781 | 233,995 | |||
| Total assets | 1,227,839 | 1,250,211 |
| Note | 31 Dec 2020 | 31 Dec 2019 | ||
|---|---|---|---|---|
| Share capital | 29 | 272,721 | 272,721 | |
| Share premium | 29 | 181,489 | 181,488 | |
| Profit reserves | 29 | 106,479 | 106,479 | |
| Legal reserves | 29 | 51,612 | 51,612 | |
| Reserves for treasury shares and interests | 29 | 3,671 | 3,671 | |
| Treasury shares and interests | 29 | -3,671 | -3,671 | |
| Statutory reserves | 29 | 54,854 | 54,854 | |
| Other profit reserves | 29 | 13 | 0 | |
| Retained earnings | 29 | 33,305 | 31,589 | |
| Retained earnings from previous periods | 8,440 | 30,648 | ||
| Profit or loss for the period | 24,865 | 941 | ||
| Fair value reserve | 29 | -497 | 664 | |
| Reserves for actuarial gains/losses | 29 | -2,988 | -2,347 | |
| Translation reserves | 29 | -25 | -60 |
The correction is presented in detail in Note 41.
| v tisoč EUR | Share capital | Share premium | Profit reserves | Retained earnings | Legal reserves | Treasury shares reserve | Treasury shares | Statutory reserves | Other profit reserves | Retained earnings from previous periods | Profit or loss for the period | Fair value reserve for financial instruments | Fair value reserve for hedging financial instruments in net amount | Reserves for actuarial deficits and surpluses | Translation reserves | Total |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Balance as at 1 Jan 2020 | 272,721 | 181,488 | 51,612 | 3,671 | -3,671 | 54,854 | 1,330,648 | 941 | 1,171 | -507 | -2,347 | -659 | 0 | 588 | ||
| Net profit or loss for the period | 24,865 | |||||||||||||||
| Other comprehensive income/loss for the period | -1,390 | 229 | -638 | -18 | -1,817 | |||||||||||
| Total comprehensive income for the period | 0 | 24,865 | -1,390 | 229 | -638 | -1823,048 | ||||||||||
| Dividends paid | -22,769 | |||||||||||||||
| Transactions with owners | 0 | |||||||||||||||
| Transfer of profit or loss from previous period to retained earnings or losses | 941 | -941 | 0 | |||||||||||||
| Other | -380 | -3 | -1 | -383 | ||||||||||||
| Balance as at 31 Dec 2020 | 272,721 | 181,489 | 51,612 | 3,671 | -3,671 | 54,854 | 138,440 | 24,865 | -219 | -278 | -2,988 | -25 | 590,484 |
Notes on pages 210 to 300 are an integral part of these consolidated financial statements.
The correction is presented in detail in Note 41.
In EUR thousand
| Share capital | Share premium | Profit reserves | Retained earnings | Fair value reserve for financial instruments | Fair value reserve for hedging financial instruments in net amount | Reserves for actuarial deficits and surpluses | Translation reserves | Total | Non-controlling interest | Total | Legal reserves | Treasury shares reserve | Treasury shares | Statutory reserves | Other profit reserves | Retained earnings from previous periods | Profit or loss for the period | |
| Balance as at 1 Jan 2019 | 272,721 | 181,488 | 51,612 | 3,671 | -3,671 | 54,854 | 17,026 | 30,324 | 17,614 | 1,013 | -618 | -2,356 | 16623,694 | -4,066 | 619,628 | |||
| Net profit or loss for the period | 941 | 941 | 0941 | |||||||||||||||
| Other comprehensive income/loss for the period – restated | 158 | 1119 | -222 | 56256 | ||||||||||||||
| Total comprehensive income for the period | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 941 | 158 | 111 | 9 | -22 | 1,197 | 0 | 1,197 | |||
| Dividends paid | -29,218 | -29,218 | -29,218 | |||||||||||||||
| Transactions with owners | 0 | 0 | 0 | 0 | 0 | 0 | -29,218 | 0 | 0 | 0 | 0 | 0 | -29,218 | 0 | -29,218 | |||
| Transfer of profit or loss from previous period to retained earnings or losses | 17,614 | -17,614 | 0 | 0 | ||||||||||||||
| Reversal of other provisions | -17,013 | 17,013 | 0 | 0 | ||||||||||||||
| Changes in the composition of the Group* | -4,066 | -4,066 | 4,066 | 0 | ||||||||||||||
| Other | -1,019 | -1,019 | ||||||||||||||||
| Balance as at 31 Dec 2019 | 272,721 | 181,488 | 51,612 | 3,671 | -3,671 | 54,854 | 13 | 30,648 | 941 | 1,171 | -507 | -2,347 | -659 | 0 | 588 | 0 | 590,588 |
*In 2019, Telekom Slovenije became the 100% owner of Planet TV and derecognised the non-controlling interest. The correction is presented in detail in Note 41.
Notes on pages 210 to 300 are an integral part of these consolidated financial statements.
206
| In EUR thousand | Share capital | Share premium | Profit reserves | Retained earnings | Legal reserves | Treasury shares reserve | Treasury shares | Statutory reserves | Other profit reserves | Retained earnings from previous periods | Profit or loss for the period | Fair value reserve for financial instruments | Fair value reserve for hedging financial instruments in net amount | Reserves for actuarial deficits and surpluses | Total |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Balance as at 1 Jan 2020 | 272,721 | 180,956 | 50,434 | 3,671 | -3,671 | 54,544 | 0 | 48,301 | 585 | 1,171 | -507 | -2,069 | 606,136 | ||
| Net profit or loss for the period | 24,174 | ||||||||||||||
| Other comprehensive income/loss for the period | -1,390 | 229 | -662 | -1,823 | |||||||||||
| Total comprehensive income for the period | 0 | 0 | 0 | 0 | 0 | 0 | 24,174 | -1,390 | 229 | -662 | 22,351 | ||||
| Dividends paid | -22,769 | ||||||||||||||
| Transactions with owners | 0 | 0 | 0 | 0 | 0 | -22,769 | 0 | 0 | 0 | -22,769 | |||||
| Transfer of profit or loss from previous period to retained earnings or losses | 585 | -585 | 0 | ||||||||||||
| Other | 68 | -266 | |||||||||||||
| Balance as at 31 Dec 2020 | 272,721 | 180,956 | 50,434 | 3,671 | -3,671 | 54,544 | 0 | 26,185 | 24,174 | -219 | -278 | -2,733 | 605,784 |
Notes on pages 210 to 300 are an integral part of these consolidated financial statements.
| Other profit reserves | Retained earnings from previous periods | Profit or loss for the period | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Balance as at 1 Jan 2019 | 272,721 | 180,956 | 50,434 | 3,671 | -3,671 | 54,544 | 17,013 | 43,493 | 17,013 | 1,013 | -618 | -2,373 | 634,196 |
| Net profit or loss for the period | 585 | 585 | |||||||||||
| Other comprehensive income/loss for the period | 158 | 111 | 304 | 573 | |||||||||
| Total comprehensive income for the period | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 585 | 158 | 111 | 304 | 1,158 | |
| Dividends paid | -29,218 | -29,218 | |||||||||||
| Transactions with owners | 0 | 0 | 0 | 0 | 0 | 0 | -29,218 | 0 | 0 | 0 | -29,218 | ||
| Transfer of profit or loss from previous period to retained earnings or losses | 17,013 | -17,013 | 0 | ||||||||||
| Reversal of other provisions based on the resolution of the Management Board | -17,013 | 17,013 | 0 | ||||||||||
| Balance as at 31 Dec 2019 | 272,721 | 180,956 | 50,434 | 3,671 | -3,671 | 54,544 | 0 | 48,301 | 585 | 1,171 | -507 | -2,069 | 606,136 |
Notes on pages 210 to 300 are an integral part of these consolidated financial statements.
| Telekom Slovenije Group | Telekom Slovenije | |||||
|---|---|---|---|---|---|---|
| In EUR thousand | I–XII 2020 | I–XII 2019 Restated | I–XII 2020 | I–XII 2019 | ||
| Cash flows from operating activities | Net profit for the period | 24,865 | 941 | 24,174 | 585 | |
| Adjustments for: | Depreciation/Amortisation | 167,279 | 173,791 | 137,351 | 141,651 | |
| Impairment and write-offs of property, plant and equipment, and intangible assets | 222 | 059 | 0 | |||
| Gain or loss on disposal of property, plant and equipment | 285 | -130 | 369 | -95 | ||
| Adjustment for discontinued operations | 5,688 | 17,595 | 0 | 0 | ||
| Impairment and write-off of inventories | 1,231 | 1,991 | 1,000 | 1,063 | ||
| Net impairment of receivables | 2,491 | 1,498 | 2,038 | 1,281 | ||
| Change in provisions and other changes | -4,344 | 276 | -4,500 | 0 | ||
| Finance income | -2,177 | -2,905 | -5,724 | -6,497 | ||
| Finance expenses | 10,173 | 13,843 | 18,501 | 38,457 | ||
| Income tax expense | 523 | 1,721 | -21 | 1,271 | ||
| Cash flows from operating activities prior to changes in working capital and provisions | 206,236 | 208,621 | 173,247 | 177,716 | ||
| Change in inventories | -5,421 | -349 | -4,867 | -301 | ||
| Change in trade and other receivables | -13,466 | 1,739 | -14,761 | 2,674 | ||
| Change in accrued and deferred asset items and contract assets | 19,069 | 15,600 | 19,818 | 8,976 | ||
| Change in provisions | 1,538 | 1,241 | 1,546 | 707 | ||
| Change in trade and other payables | 6,077 | -6,051 | 19,592 | -33,884 | ||
| Change in accrued and deferred liability items and contract liabilities | 7,565 | -5,416 | 7,518 | -8,432 | ||
| Income tax paid | -848 | 56 | 0 | 0 | ||
| Net cash from operating activities | 220,750 | 215,441 | 202,093 | 147,456 | ||
| Cash flows from investing activities | Receipts from investing activities | 5,569 | 39,564 | 17,129 | 55,705 | |
| Proceeds from the sale of property, plant and equipment | 322 | 1,721 | 322 | 1,659 | ||
| Dividends received | 6 | 159 | 840 | 159 | ||
| Interest received | 1 | 8 | 2,420 | 2,989 | ||
| Proceeds from disposal of subsidiaries, net of disposed cash | 5,000 | 37,593 | 5,000 | 37,593 | ||
| Receipts from repayment of loans and deposits | 240 | 83 | 8,547 | 13,305 | ||
| Disbursements from investing activities | -160,279 | -170,100 | -153,932 | -147,031 | ||
| Purchases of property, plant and equipment | -97,475 | -92,887 | -89,013 | -84,549 | ||
| Purchases of intangible non-current assets | -62,798 | -77,110 | -63,464 | -33,756 | ||
| Acquisition of non-controlling interest in subsidiaries | 0 | 0 | 0 | -18,060 | ||
| Loans granted and acquisition of deposits | -6 | -103 | -1,455 | -10,666 | ||
| Net cash used in investing activities | -154,710 | -130,536 | -136,803 | -91,326 | ||
| Cash flows from financing activities | Proceeds from financing activities | 1,000 | 35,000 | 7,000 | 35,000 | |
| Non-current borrowings | 0 | 35,000 | 0 | 35,000 | ||
| Current borrowings | 1,000 | 0 | 7,000 | 0 | ||
| Disbursements from financing activities | -72,136 | -117,429 | -71,401 | -92,047 | ||
| Repayment of lease liabilities – principal | -9,819 | -10,896 | -9,113 | -9,829 | ||
| Repayment of current borrowings | 0 | -27,500 | 0 | -21,000 | ||
| Repayment of non-current borrowings | -30,801 | -23,139 | -30,769 | -23,077 | ||
| Interest paid | -8,747 | -9,012 | -8,750 | -8,866 |
Telekom Slovenije, d. d. (hereinafter ‘Telekom Slovenije’ or ‘Company’) and its subsidiaries comprise the Telekom Slovenije Group (hereinafter ‘Telekom Slovenije Group’ or ‘Group’). A detailed overview of the Group’s composition is given in the business report herein.
Telekom Slovenije is a public limited company. The Company’s address is:
TELEKOM SLOVENIJE, d. d.
Cigaletova 15, Ljubljana
Slovenia
The Company is incorporated and domiciled in the Republic of Slovenia. Its shares are included in the first listing of the Ljubljana Stock Exchange.
The Company’s majority owner is the Republic of Slovenia, which holds a 62.54% share in Telekom Slovenije (Note 29 below).
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.
The Telekom Slovenije Group operates in the following countries: Slovenia, Croatia, Bosnia and Herzegovina, Serbia, Kosovo and Northern Macedonia.
The consolidated financial statements of the Telekom Slovenije Group and the financial statements of Telekom Slovenije have been prepared in accordance with the International Financial Reporting Standards (IFRS) as adopted by the EU and in accordance with provisions of the Companies Act (ZGD).
The financial statements of the Telekom Slovenije Group and of Telekom Slovenije were approved by the Management Board on 25 February 2021.
The Group’s and the Company’s financial statements have been prepared based on the going concern assumption. The operations are not of seasonal nature. Although current liabilities are higher than current assets due to the bonds maturing in June 2021, the Company has sufficient liquidity reserve (Note 45); in addition, the long-term loan arising from the contract signed with the European Investment Bank (Note 33) has remained fully non-utilised. In the first quarter of 2021, activities aimed at providing new long-term resources for the repayment of bonds commenced.
The financial statements have been prepared based on historical cost, with the exception of:
Presentation currency of the Telekom Slovenije Group is euro, which is also the functional and presentation currency of the controlling company, Telekom Slovenije. All financial measurement is presented in thousands of euros unless otherwise defined.
The preparation of the financial statements requires management to make certain estimates, judgements and assumptions that impact the carrying amounts of assets and liabilities and the disclosure of contingent liabilities on the balance sheet date and the balances of income and expenses for the period then ended. Future events and their effects cannot be determined with certainty. Accordingly, the accounting estimates made require the exercise of judgement, and those used in the preparation of the financial statements will change as new events occur, as more experience is acquired, as additional information is obtained and as the business environment changes. The actual values may differ from those estimates.
Estimates and underlying assumptions are reviewed on a regular basis. Changes in accounting estimates are recognised for the period in which the estimates change and in any future periods affected.
Estimates and assumptions that have the most significant effect on the amounts recognised in the financial statements include:
In estimating the useful lives of assets, the Group and the Company take 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 adjusted accordingly.
| Acquisition of non-controlling interest in subsidiaries | -17,607 | 0 | ||||
|---|---|---|---|---|---|---|
| Dividends paid | -22,769 | -29,275 | -22,769 | -29,275 | ||
| Net cash used in financing activities | -71,136 | -82,429 | -64,401 | -57,047 | ||
| Net increase/decrease in cash and cash equivalents | -5,096 | 2,476 | 889 | -917 | ||
| Opening balance of cash | 13,219 | 10,684 | 1,153 | 2,011 | ||
| Effects of exchange rate changes on cash and cash equivalents | 44 | 594 | 459 | |||
| Closing balance of cash | 8,167 | 13,219 | 2,086 | 1,153 |
The correction is presented in detail in Note 41.
values are restated for the current and future periods. 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 useful life for each category of assets are used. The estimated useful lives of assets are presented in Notes 3.c, 3.d and 3.e.
In the period in question, Telekom Slovenije changed the useful lives of modems and GPON interfaces, which are part of the optic network. Prior to the change, the useful life of this equipment amounted to 4 years, and now it is 5 years. Due to the change of the useful lives, the depreciation in the reported period is lower by EUR 399 thousand. The Company decided to change the estimated useful life because of fewer breakdowns on modems and GPON interfaces in the optic network, as the level of failure resulting from an overvoltage surge was significantly lower in the optic network compared to the copper network prior to the end of useful life.
Based on the prepared analysis of the average life span of subscribers, Telekom Slovenije also changed the useful life of intangible fixed assets linked to the costs of obtaining contracts with customers (commissions to agents), namely:
| Costs of obtaining contracts with customers | previous life span in months | new life span in months |
|---|---|---|
| - mobile telephony contracts | 12–24 | 30 |
| - fixed telephony contracts | 42 | |
| - convergence contracts | 30 | 211 |
Until 1 January 2020, the Company recognised as intangible assets only commissions to agents resulting from conclusion of contracts with a fixed term of duration. As of 2020, the Company also recognises commissions to agents resulting from conclusion of contracts without a fixed term of duration as intangible assets. In the reported period, the relating amortisation is higher by EUR 58 thousand.
Due to the change of the useful lives of intangible assets arising from costs of obtaining contracts with customers, total amortisation in the reported period is lower by EUR 2,179 thousand.
The Group and the Company check on an annual basis the carrying amounts 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 recognized out if the asset’s carrying amount exceeds its recoverable amount.
Impairment of goodwill is established at least once a year. For this purpose, the Group obtained, on 30 November 2020, a valuation by an external valuer, according to which the recoverable amount of goodwill exceeds its carrying amount.
In measurement 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 that reported negative operating results and/or disclosed negative equity or if there were other indicators of impairment. In such cases, the Group obtains an estimate of the recoverable amount of investments in subsidiaries by a certified business appraiser. Cash generating units (CGU) at Group level are individual group companies.
For 2020, based on checking for signs of impairment and due to the impact of the COVID-19 epidemic on individual companies, the Group opted to assess the recoverable amount for all of its subsidiaries, except for GVO GmbH and the Heart Foundation Institution (in Slovene: Srčni Sklad). The recoverable amount of a 100% ownership interest and the value of non-current assets in individual companies were assessed by a certified business appraiser. The appraisal reports showed no need for impairment of investments, as the recoverable amount exceeded the carrying amount in all of the appraised companies. Details of establishing recoverable amounts are described in Note 3.f.
The Company records investments in equity instruments or shares and interests under financial assets measured at fair value through other comprehensive income. For 2020, the Company checked for indications of impairment of the more significant investments, namely the interests in IECD- Poslovna šola Bled, d.o.o. and ABCITI, Družba za investiranje, d.o.o. The appraisals were conducted by a certified business appraiser. The impact of appraisals is described in Notes 4 and 19.
The Company and the Group judge on the needs for impairment in accordance with the requirements of standards for loans granted as well. The method of judgement is described in Note 3.f.
Deferred tax is calculated using the balance sheet liability method, providing for all temporary differences between the carrying amounts 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 carrying amount of assets and liabilities using the tax rates expected in future periods. Upon any change in the tax rate, the Group and the Company would make corresponding recalculations for deferred tax assets. The Group and the Company recognise deferred tax assets if it is probable that sufficient future taxable profit will be available, against which deductible temporary differences can be utilised. Detailed disclosure regarding the measurement of deferred taxes is available in Notes 3.q and 13.
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 measurement 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 expected date and amount of settlement. Measurement of individual provisions is detailed in Notes 3.l and 31.
The Company assessed the importance of applying provisions of IFRIC 12 Service Concession Arrangements and SIC-29 Service Concession Arrangements: Disclosures, and estimated that items from the financial statements of Soline, d. o. o. as at 31 December 2020 are immaterial and that no adjustment to individual items in the consolidated financial statements of the Telekom Slovenije Group are needed.
In 2020, the Group rectified an error from 2019 arising from the recognition of a contract on the purchase of TV channels in Kosovo. The contract was concluded in May 2019 and the Group therefore increased the assets and trade payables for discounted future payments under this contract in the 2019 financial statements. The correction of this error is described in detail in Note 41.
The following new standards, amendments to the existing standards and new interpretations issued by the International Accounting Standards Board (IASB) and adopted by the EU but not yet valid on 1 January 2020 and are mandatory for the current year or later:
(issued on 11 September 2014 and effective for annual periods beginning on or after a date to be determined by the IASB). These amendments address an inconsistency between the requirements in IFRS 10 and those in IAS 28 in dealing with the sale or contribution of assets between an investor and its associate or joint venture.
The main consequence of the amendments is that a full gain or loss is recognised when a transaction involves a business. A partial gain or loss is recognised when a transaction involves assets that do not constitute a business, even if these assets are held by a subsidiary.
(issued on 23 January 2020 and effective for annual periods beginning on or after 1 January 2022). These narrow scope amendments clarify that liabilities are classified as either current or non-current, depending on the rights that exist at the end of the reporting period. Liabilities are non-current if the entity has a substantive right, at the end of the reporting period, to defer settlement for at least twelve months. The guidance no longer requires such a right to be unconditional. Management’s expectations whether they will subsequently exercise the right to defer settlement do not affect classification of liabilities. The right to defer only exists if the entity complies with any relevant conditions as of the end of the reporting period. A liability is classified as current if a condition is breached at or before the reporting date even if a waiver of that condition is obtained from the lender after the end of the reporting period. Conversely, a loan is classified as non-current if a loan covenant is breached only after the reporting date. In addition, the amendments include clarifying the classification requirements for debt a company might settle by converting it into equity. ‘Settlement’ is defined as the extinguishment of a liability with cash, other resources embodying economic benefits or an entity’s own equity instruments. There is an exception for convertible instruments that might be converted into equity, but only for those instruments where the conversion option is classified as an equity instrument as a separate component of a compound financial instrument.
(issued on 15 July 2020 and effective for annual periods beginning on or after 1 January 2023). The amendment to IAS 1 on classification of liabilities as current or non-current was issued in January 2020 with an original effective date 1 January 2022. However, in response to the COVID-19 pandemic, the effective date was deferred by one year to provide companies with more time to implement classification changes resulting from the amended guidance.
– narrow scope amendments to IAS 16, IAS 37 and IFRS 3, and Annual Improvements to IFRSs 2018–2020 – amendments to IFRS 1, IFRS 9, IFRS 16 and IAS 41 (issued on 14 May 2020 and effective for annual periods beginning on or after 1 January 2022). The amendment to IAS 16 prohibits an entity from deducting from the cost of an item of PPE any proceeds received from selling items produced while the entity is preparing the asset for its intended use. The proceeds from selling such items, together with the costs of producing them, are now recognised in profit or loss. An entity will use IAS 2 to measure the cost of those items. Cost will not include depreciation of the asset being tested because it is not ready for its intended use. The amendment to IAS 16 also clarifies that an entity is ‘testing whether the asset is functioning properly’ when it assesses the technical and physical performance of the asset. The financial performance of the asset is not relevant to this assessment. An asset might therefore be capable of operating as intended by management and subject to depreciation before it has achieved the level of operating performance expected by management.
The amendment to IAS 37 clarifies the meaning of ‘costs to fulfil a contract’. The amendment explains that the direct cost of fulfilling a contract comprises the incremental costs of fulfilling that contract; and an allocation of other costs that relate directly to fulfilling. The amendment also clarifies that, before a separate provision for an onerous contract is established, an entity recognises any impairment loss that has occurred on assets used in fulfilling the contract, rather than on assets dedicated to that contract.
IFRS 3 was amended to refer to the 2018 Conceptual Framework for Financial Reporting, in order to determine what constitutes an asset or a liability in a business combination. Prior to the amendment, IFRS 3 referred to the 2001 Conceptual Framework for Financial Reporting. In addition, a new exception in IFRS 3 was added for liabilities and contingent liabilities. The exception specifies that, for some types of liabilities and contingent liabilities, an entity applying IFRS 3 should instead refer to IAS 37 or IFRIC 21, rather than the 2018 Conceptual Framework. Without this new exception, an entity would have recognised some liabilities in a business combination that it would not recognise under IAS 37. Therefore, immediately after the acquisition, the entity would have had to derecognise such liabilities and recognise again that did not depict an economic gain. It was also clarified that the acquirer should not recognise contingent assets, as defined in IAS 37, at the acquisition date.
The amendment to IFRS 9 addresses which fees should be included in the 10% test for derecognition of financial liabilities. Costs or fees could be paid to either third parties or the lender. Under the amendment, costs or fees paid to third parties will not be included in the 10% test.
Illustrative Example 13 that accompanies IFRS 16 was amended to remove the illustration of payments from the lessor relating to leasehold improvements. The reason for the amendment is to remove any potential confusion about the treatment of lease incentives.
IFRS 1 allows an exemption if a subsidiary adopts IFRS at a later date than its parent. The subsidiary can measure its assets and liabilities at the carrying amounts that would be included in its parent’s consolidated financial statements, based on the parent’s date of transition to IFRS, if no adjustments were made for consolidation procedures and for the effects of the business combination in which the parent acquired the subsidiary. IFRS 1 was amended to allow entities that have taken this IFRS 1 exemption to also measure cumulative translation differences using the amounts reported by the parent, based on the parent’s date of transition to IFRS. The amendment to IFRS 1 extends the above exemption to cumulative translation differences, in order to reduce costs for first-time adopters. This amendment will also apply to associates and joint ventures that have taken the same IFRS 1 exemption.
The requirement for entities to exclude cash flows for taxation when measuring fair value under IAS 41 was removed. This amendment is intended to align with the requirement in the standard to discount cash flows on a post-tax basis.
amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 (issued on 27 August 2020 and effective for annual periods beginning on or after 1 January 2021). The Phase 2 amendments address issues that arise from the implementation of the reforms, including the replacement of one benchmark with an alternative one. The amendments cover the following areas:
The consolidated financial statements of the Group comprise the financial statements of Telekom Slovenije and its subsidiaries for the financial year 2020. Financial statements of the Group companies have been prepared for the same reporting year as the financial statements of the parent company using consistent accounting policies. In the event of inconsistencies in accounting policies, individual companies make 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 parent/Group 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 purchase consideration in excess of the net fair value of the acquired assets is disclosed under intangible assets as goodwill. If the surplus is negative, it is recognised directly in profit or loss as finance income.
Subsidiaries are entities that are controlled, indirectly or directly, by Telekom Slovenije. The Group controls a subsidiary if it is exposed, or has rights, to variable returns from its involvement with the company. Control exists when the Telekom Slovenije Group has the ability to affect the financial and business decisions of the company in order to benefit from its operations.
Subsidiaries are consolidated by the Group since the date the control is obtained. Subsidiaries are de-consolidated from the date on which control over the subsidiary ceases. If control over a subsidiary ceases during the year, the financial statements of the Group 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 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 investment in equity instruments in accordance with IFRS 9, depending on the level of interest retained in the company.
Consolidated financial statements do not include intra-group transactions, assets and liabilities, equity, income and expenses, and cash flows between Group companies.
Foreign currency transactions are translated into the functional currency using the exchange rate at the date of the transaction. Cash, receivables and liabilities and other monetary assets are translated on the balance sheet date into the functional currency using the spot 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 revaluation of investments in equity instruments classified as measured at fair value through other comprehensive income that are recognised directly in other comprehensive income.
On the reporting date, foreign subsidiaries whose functional currency is not euro translate their asset and liabilities into euro by using the exchange rate of the European Central Bank (ECB) as at the reporting date, while the average exchange rate of the reporting period is applied for the statement of profit or loss. Until the foreign subsidiary is disposed of, exchange differences that occur in the translation from the functional into the presentation currency are recorded in the statement of other comprehensive income and accumulated within equity as translation reserve. Upon the disposal, these exchange differences are transferred from other comprehensive income to 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 impairment losses. For intangible assets with an indefinite useful life, it is ascertained at least once a year whether they need to be impaired in accordance with IAS 36.
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 expectations differ significantly from the applicable estimates of amortisation rates, the impact is restated for the current and future periods. The Group explains the effect of such a change in notes within the accounting period in which the change occurred. In 2020, the Group changed the useful lives of certain assets, which is described in section 2.d. Use of significant estimates and judgements. Amortisation of intangible assets is accounted on a straight-line basis over their estimated useful lives and begins when the asset becomes available for use.
| Groups of intangible assets | Useful lives in years 2020 | Useful lives in years 2019 |
|---|---|---|
| – concessions | 15 to 20 | 15 to 20 |
| – trademarks | 10 | 10 |
| – licences | 1 to 7 | 1 to 7 |
| – programme rights – TV content | 1 to 6 | 1 to 6 |
| – cost of obtaining contracts with customers | 2 to 3.5 | 1 to 2 |
| – customer list | 3 to 5 | 3 to 5 |
| – computer software | 3 to 7 | 3 to 7 |
| – property rights | 3 to 20 | 3 to 20 |
The costs of concessions obtained for the use of the radio frequency spectrum are capitalised at cost and amortised on a straight-line basis over the term of the concession contract, which is between 3 and 20 years - Note 46. The costs of obtaining contracts with customers are costs that are directly related to the obtaining of subscribers and represent additional costs the Group has with obtaining contracts with customers and which would not have been incurred had the Group not obtained the contract. Sales commissions are recorded as costs of obtaining contracts with customers and are amortised in line with the transfer of the economic benefits to the customer, i.e. within the period of expected contract term. If terminated subscriptions and subsequent accounting of sales commissions exceeded 5% of the annual capitalised commissions, the Group would adequately decrease intangible assets relating to sales commissions. The termination-related estimate is verified on an annual basis.
Capitalised costs comprise costs of material, direct labour costs and other costs that can be directly attributed to bringing the asset to the condition necessary for the intended use. The Group monitors through 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 when the entity intends to use or sell the asset.
An intangible asset is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Gains or losses arising from the derecognition of an intangible asset and measured as the difference between the net disposal proceeds and the carrying amount of the asset are recognised in the statement of profit or loss upon derecognition. The Group and the Company monitor the progress of individual projects and investments through project administrators. If it is established that a certain project will not be finished, it is written off.
The carrying amounts of significant assets is checked at least once a year as at the financial statement date in order to establish whether there is any need to impair any of intangible assets. A significant intangible asset is an asset whose carrying amount exceeds 5% of the carrying amount of all intangible assets. Upon assessment of whether this indication of impairment of intangible assets exists, it is checked whether significant technological changes, market changes or a significant decrease in interest rates occurred. If so, the asset’s recoverable amount is ascertained. Impairment is recognized if the carrying amount 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, therefore the need for impairment was not established.
Goodwill arises upon acquiring a subsidiary and is measured at cost less accumulated impairment losses. Impairment of goodwill is tested for the cash generating unit (CGU) at least once a year. Recoverable amount is calculated as value in use, that is calculated based on management estimate of the future cash flows from the CGU and 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 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 asset to the original condition, discounted to present value, are reported under non-current provisions.
Upon signing the contract, the Group assesses 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 right to control the use of an identified asset for a period of time in exchange for consideration. The Telekom Slovenije Group and Telekom Slovenije did not use exemptions envisaged by the standard for low-value lease contracts and for leases expiring earlier than 12 months from initial application.
For such contracts, the standard requires a lessee to recognise a right-of-use asset and a lease liability at the commencement 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 that are not subject to inflation or interest rates changes are not included in the measurement of lease liabilities and right-of-use assets. The related payments are recognised in other operating expense as incurred.
The assets are subsequently measured at cost less any accumulated depreciation and 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 useful life 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 |
The estimated useful lives did not change compared to last year. Right-of-use assets are annually checked for impairment and if any indication of impairment exists, 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.
to reflect the interest on the lease liability, decreases by the value of the lease payments and, if the lease terms change, the present value is remeasured based on areassessment 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 as a non-current liability, except for liabilities that will be settled over a 12-month period 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, for most services, regulated by published price lists. 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 defined 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:
Contracts are terminated only in exceptional circumstances.
The Telekom Slovenije Group classifies all leases as operating leases, as the lease does not transfer substantially all the risks and rewards incidental to ownership of an underlying asset. Lease payments arising from operating lease are recognised 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 acts 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 customer has the right to terminate the contract under the terms defined in the contract itself. In the event of extraordinary circumstances (default), the contract may also be terminated by the Group. Contracts are terminated only in exceptional circumstances.
A financial asset is recognised when the Group or the Company becomes a party to contractual provisions of the financial instrument.
When a financial asset is recognised for the first time, the classification will depend on the business model for managing financial assets and their contractual cash flow characteristics, and the asset will be classified into one of the following categories:
Financial assets measured at amortised cost are financial instruments which the Group holds 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 loans, trade and other receivables, deposits, and cash and cash equivalents.
Loans and receivables are recognised on the settlement date 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 method, less expected credit losses.
Profits and losses are recognised in the profit or loss:
This category includes investments in debt and equity instruments or shares and interests in other companies.
After initial recognition of investments in equity instruments not held for trading, the Group irrevocably decides to measure these investments at fair value through other comprehensive income. This decision is made individually for each investment.
Investments are recognised/derecognised as at the date of purchase/sale, respectively. Any gains or losses arising from changes in fair value are recognised in other comprehensive income and presented directly in equity within the fair value reserve for financial instruments in the net amount. Amounts presented in other comprehensive income may not be subsequently transferred to profit or loss. However, the Group may transfer the cumulative gain or loss within equity.
Dividends 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 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 involved in the transaction. At least every three months, the Company checks whether interest rate hedging is still adequate and, if so, discloses valuation effects in other comprehensive income. In the event of positive valuation, the fair value is disclosed in the balance sheet under financial assets, and in the event of negative valuation, it is disclosed under financial liabilities.
Trade receivables are amounts of receivables due from business partners arising from the sale of goods and services in the ordinary course of business. To measure expected credit losses in line with IFRS 9, the Group uses a simplified approach. Impairment is calculated as an amount equal to the expected credit losses within the entire useful life of the receivable. To measure expected credit losses, receivables were grouped based on the common characteristics of credit risk and maturity. The expected loss rates are based on data on payments over the last 36 months and past credit losses generated in this period. The effect of future-facing macro-economic data on expected credit losses was deemed insignificant.
Loss due to impairment of receivables is recognised in the statement of profit or loss as impairment and write-off of trade and other receivables.
In line with IFRS 9, the Group and the Company use the expected loss model and must, in addition to the losses incurred, recognise losses expected to arise in the future. To that end, the Group and the Company assess evidence of impairment of financial assets. On each reporting date, the Group and the Company must recognise expected credit losses for the entire duration, for all financial assets where an increase in credit risk has been noted since initial recognition. In this context, they must consider all relevant and provable in measurement, including future-facing in measurement.
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 the Company considers 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 individually.
If, on the reporting date, the credit risk for said financial instrument has not significantly increased since initial recognition, the Group measures 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 that requires impairment loss always to be measured as an amount that is equivalent to expected credit losses in the entire duration.
In 2020, 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 the carrying amount (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 irrevocably decided to present subsequent changes in fair value under other comprehensive income.
Upon initial recognition, bonds are measured at amortised cost using the effective interest rate method. Under financial liabilities, liabilities arising from profit or loss distribution (dividends) are disclosed as well. 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. Financial liabilities are derecognised when they are extinguished (i.e. when the obligation specified in the contract is discharged, cancelled or expires).
Upon initial recognition, trade and other payables are disclosed at fair value. Subsequently, they are stated at amortised cost. Non-current trade payables primarily include programme rights, frequency fees and other trade payables.
Investments in subsidiaries are disclosed in Telekom Slovenije’s separate financial statements at cost, less any impairment losses. Investments in subsidiaries are recognised on the date when risks and benefits are transferred to the controlling company, i.e. when control is obtained. The Group has no investments in associates and joint ventures.
Indications for impairment of investments in subsidiaries are mainly assessed under two criteria, namely:
At the end of the year, Telekom Slovenije prepared estimates of its subsidiaries’ recoverable amount in order to test for purposes of impairment for the needs of financial reporting. Each subsidiary represents its own cash-generating unit. In accordance with ESMA recommendations, which highlighted the importance of assessing impairment resulting from the impact of COVID-19, the appraiser applied an additional method to estimate the recoverable amount of non-current assets of Telekom Slovenije and its subsidiaries as cash-generating units. Appraisals were conducted by a certified business appraiser.
As all appraisals of the recoverable value of 100% equity interest of companies conducted for the purposes of financial reporting exceed the value of investments in individual subsidiaries, impairment of investments in subsidiaries is not required in 2020. In addition, there are no indications for impairment that might affect the financial statements of the Telekom Slovenije Group.
Investment property is initially measured 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 measured at cost less accumulated depreciation and impairment losses.
Depreciation is calculated on a straight-line basis over the useful lives of the assets. Land is not depreciated. The useful life of investment property equals the useful lives of property, plant and equipment. Indication of impairment is assessed in the same way as for property, plant and equipment.
Investment property is derecognised upon disposal or when it is permanently withdrawn from use and no future economic benefits are expected. Gains or losses arising from the derecognition of an item of investment property are calculated as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in the profit or loss for the period during which the item of investment 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.
In September 2020, Telekom Slovenije initiated procedures to carry out the process of selling TSmedia, medijske vsebine in storitve, d.o.o. At 31 December 2020, an assessment of the need to reclassify TS media under assets held for sale was conducted. Given the defined direction and phase of the sales procedure, TSmedia does not meet the conditions for reclassification among assets held for sale, as the parent company has not yet received binding offers and does not possess key in-measurement based on which it could estimate the likelihood of the sale.
Assets are reclassified under assets held for sale at the lower of their carrying amount and fair value, less costs to sell. Assets held for sale are not depreciated. Impairment losses on assets held for sale are recognised in the statement of profit or loss among ‘other operating expenses’, ‘impairment of intangible assets and property, plant and equipment’ (Note 11).
The Group checks periodically whether the assets still meet the criteria for being classified as held for sale. If the asset no longer meets these criteria, it is reclassified 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 carrying amounts 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 written down to their net realisable value, which is lower than the carrying amount or the estimated selling price in the ordinary course of business, less the estimated costs of completion and costs of selling.
basis over the contract period., 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). Deferred costs mainly refer to the costs of calculating international services.
Cash and cash equivalents include cash in hand and deposits held at call with banks, short-term deposits with original maturity of up to 3 months, where the risk of fair value change is minimal.
Provisions are recognised if a present obligation (legal or constructive) exists as a result of a past event and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and if the amount of the obligation can be estimated reliably. If the effect is material, provisions are determined by discounting the expected future cash flows.
Obligations with uncertain timing and amount are treated depending on management’s estimation of the amount and timing of the obligation and the probability of an outflow of resources that will be required to settle the obligation, either legal or constructive. Contingent liabilities are not recognised in financial statements as their exact amount could not be measured reliably or their existence will be confirmed only upon the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Group.
The management of each Group company continually assess contingent liabilities to determine whether an outflow of resources embodying economic benefits has become probable. In this case, a provision is recognised in the financial statements of the period in which the change in probability occurs.
Provisions are reduced directly by costs or expenses for the covering of which they were created. Provisions for probable liabilities from lawsuits are recognized on the basis of the estimate of the lawsuit outcome made by the relevant departments or external parties. The measurement of provisions is assessed individually taking into account the amount of the lawsuit, its subject matter, the plaintiff’s assertions and the course of each individual procedure. Due to uncertainty, the 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 formed for lawsuits is disclosed in Note 31.
Retirement and jubilee benefits are recognized 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 benefits. 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 upon retirement and jubilee benefits 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. Retirement benefits relate to defined benefit plans. Assumptions applied are disclosed in Note 31.
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 removal of base stations. Provisions are recognized at the present value of expenditures expected to be incurred at the concession contract end date. 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. At the end of each year, the Group assesses 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 company restructuring and are formed when they become part of a strategic business plan and the dynamics of employment-related changes (changed number of staff) is known.
Other payables primarily include programme rights, frequency fees and other payables.
Accrued costs comprise costs of unused annual leave, costs arising from calculation of international services assessed on the basis of turnover made, for which invoices have not yet been received, and other accrued costs. Differences between accrual and actual costs are included in profit or loss upon the receipt of invoices. If no invoice is received for the already accrued costs within 3 years after recognition, they are derecognised after this period expires. The latter does not apply to costs arising from the calculation of international services, whose derecognition is assessed individually.
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 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 has identified the following performance obligations: service, goods.
In the case of contracts with customers with a term (of 12 or 24 months) that include several performance obligations (e.g. a partially subsidised mobile telephone or other telecommunications equipment along with a service), the price of the whole transaction is allocated to individual performance obligations based on relative stand-alone selling prices of devices or services. The revenue from the sale of goods is recognised immediately, while the 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 that were rendered but not billed on the reporting date. Payment deadlines are up to 90 days.
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 recognises 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. Based on the services rendered or transfer of goods to the customer, the Group recognises revenue in the accounting period in which the services are rendered, or the goods are transferred, and does so in the amount which it is 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 decrease.
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. In the event of providing services and maintenance thereof, the revenue is charged on a monthly basis or deferred and recognized over 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 broadband access, stream broadband access, network interconnection, lease of network, national tracking, and foreign inter-operator services. Revenue from international 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 content 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 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.
Revenue from new services mainly comprises income from electricity and financial services (VALÚ Moneta). In the sale of electricity, the Group and the Company act as the principal, and therefore revenues are recognised on the gross basis. Excise duty, contributions and use of network for electricity are not included in sales revenue.
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 has transferred to a customer, if this right is conditional on something other than 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 and are classified as non-current and current contract assets.
Impairment of contract assets that do not include a significant financing component, a simplified approach is used, which requires impairment loss always to be measured as an amount that is equivalent to lifetime expected credit losses in the entire duration.
The Group and the Company impair contract assets for expected losses. The contract asset is derecognised upon contract termination and expense from write-off of contract assets is recognised.
Contract liabilities are obligations to transfer goods or services to the customer, for which the Group has already received consideration from the customer. Contract liabilities with expected transfer of the goods or services 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 to other revenue according to the contractually agreed term of co-location. Contract liabilities involve an estimate of credits issued from the 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 relating conditions. Cash received from projects, which is not yet income, is recognised as deferred income, as the costs which these amounts are meant to cover have not been incurred yet. The Company and the Group reverse the recognition of such accruals and deferrals by calculating eligible costs. Accrued income arises when project-related costs have already been incurred but conditions for issuing an invoice have yet to be met.
In line with IAS 20 Accounting for Government Grants and Disclosure of Government Assistance, the Company and the Group present grants related to income as other operating income.
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. Dividend income is recognised on the day when the Group becomes entitled to the dividend.
Income tax for the year comprises current and deferred tax. Income tax is recognised in the statement of profit or loss unless it relates to items directly recognised in other comprehensive income or equity, in which 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 carrying amounts 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 carrying amount of assets and liabilities using the tax rates expected in future periods. A deferred tax asset is recognised only to the extent that it is probable that future taxable profit will be available against which the deductible temporary 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 equity or 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 2020 and 31 December 2019, statement of profit or loss for 2020, and additional in measurement 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. More details to be found in Note 39.
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 investments in equity instruments that are not listed on the stock exchange is determined based on an appraisal conducted by a certified business appraiser for the two major investments, namely an investment in IEDC – Poslovna šola Bled, d.o.o. and ABCITI, Družba za investiranje, d.o.o. The impact of appraisals is described in Note 19.
Current trade receivables are not discounted due to their short-term nature and their carrying value (net of expected credit losses) approximates their fair value.
For reporting purposes, financial liabilities arising from bonds are determined based on the stock exchange quotation as at the reporting date.
In financial liabilities arising from borrowings, the fair value does not deviate from amortised cost.
As at the reporting date, the Telekom Slovenije Group comprises the parent company Telekom Slovenije and the following subsidiaries:
| Subsidiaries | Name | Address | Country | Activity | Tax rate | Share in equity in % | Share in voting rights in % | Carrying amount of equity in EUR thousand | Profit or loss in EUR thousand |
|---|---|---|---|---|---|---|---|---|---|
| 1 | GVO, gradnja in vzdrževanje telekomunikacijskih omrežij, d.o.o. | Cigaletova 10, Ljubljana | Slovenia | construction, maintenance works and management of telecommunications network | 19% | 100% | 100% | 30,824 | 2,915 |
| 2 | Avtenta, napredne poslovne rešitve, d.o.o. | Stegne 19, Ljubljana | Slovenia | system integrator | 19% | 100% | 100% | 2,915 | 240 |
| 3 | TSmedia, medijske vsebine in storitve, d.o.o. | Stegne 19, Ljubljana | Slovenia | multimedia and internet content | 19% | 100% | 100% | -1,215 | -453 |
| 4 | SOLINE Pridelava soli, d.o.o. | Seča 115, Portorož | Slovenia | production of salt and preservation and management of a landscape park | 19% | 100% | 100% | 1,470 | -1,012 |
| 5 | Planet TV, d.o.o.* | Stegne 19, Ljubljana | Slovenia | television activity | 19% | 100% | 100% | 10,635 | -2,480 |
| 6 | TSinpo, d.o.o. | Litostrojska cesta 58 A | Slovenia | paper and cardboard tubes | 19% | 100% | 100% | 166 | 2 |
| 7 | Optic-Tel, d.o.o. | Cigaletova 10, Ljubljana | Slovenia | telecommunication services | 19% | 100% | 100% | 5,137 | 20 |
| 8 | Infratel, d.o.o. | Cigaletova 10, Ljubljana | Slovenia | telecommunication services |
| Name | Address | Country | Activity | Tax rate | Share in equity in % | Share in voting rights in % | Carrying amount of equity in EUR thousand | Profit or loss in EUR thousand |
|---|---|---|---|---|---|---|---|---|
| IPKO Telecommunications LLC | Lagija Ulpiana, Rruga "Zija Shemsiu", Nr 34, Prishtina | Kosovo | telecommunication services | 10% | 100% | 100% | 2,995 | -1,601 |
| SIOL, d.o.o., Zagreb | Margaretska 3, Zagreb | Croatia | telecommunication services | 20% | 100% | 100% | 839 | 58 |
| SiOL d.o.o., Sarajevo | Fra Anđela Zvizdovića 1, Sarajevo | Bosnia and Herzegovina | telecommunication services | 10% | 100% | 100% | -20 | |
| SIOL, d.o.o., Podgorica | Džordža Vašingtona 108/36A, The Capital Plaza, Podgorica | Montenegro | telecommunication services | 9% | 100% | 100% | 2,695 | 76 |
| SIOL, d.o.o., Skopje | Dimitrie Chupovski no. 22A-1/13, Skopje | North Macedonia | telecommunication services | 10% | 100% | 100% | 1,363 | 78 |
| SIOL DOO BEOGRAD-PALILULA | Ulica 27. Marta 11, Beograd Palilula | Serbia | telecommunication services | 15% | 100% | 100% | 424 | -4 |
| GVO Telecommunikation GmbH | Schorlemer Straße 48, Ahaus | Germany | building and maintenance works on telecommunication networks | 15% | 100% | 100% | 272 | -183 |
| SIOL, d.o.o. Prishtina | Pejton, Str. Mujo Ulqinaku 5/1, 10000 Priština | Kosovo | telecommunication services | 10% | 100% | 100% | 182 | -277 |
On 30 September 2020, after fulfilling all suspensive conditions from the contract on the sale of business interests in Planet TV, televizijska dejavnost, d.o.o. (hereinafter: Planet TV), concluded on 7 July 2020, Telekom Slovenije transferred its business interests in Planet TV to TV2 ADRIA, d.o.o. The purchase price for the business interests in Planet TV amounted to EUR 5.0 million.
Prior to the transfer of business interests, Telekom Slovenije carried out a capital increase of Planet TV, namely by converting Telekom Slovenije’s receivables into company equity.
| In EUR thousand | 2020 | 2019 |
|---|---|---|
| Sales revenue | 5,205 | 10,525 |
| Other operating income | 14 | 70 |
| Total operating expenses | -14,491 | -20,524 |
| Operating profit | -9,272 | -9,929 |
| Finance income | 636 | |
| Finance expenses | -10 | -17,680 |
| Profit before tax | -9,219 | -27,603 |
| Taxes | 0 | 0 |
| Net profit or loss from discontinued operations attributable to the owner | -9,219 | -27,603 |
In addition to income, expenses and profit or loss from discontinued operations after taxation, the net profit or loss from discontinued operations includes the effect of recognised loss upon measuring the fair value and the sale of Planet TV in the amount of EUR 5,635 thousand, under the item of operating expenses.
| In EUR thousand | Net assets value |
|---|---|
| ASSETS | |
| Intangible assets | 94 |
| Property, plant and equipment | 277 |
| Other non-current assets | 7,154 |
| Current assets | 6,134 |
| - of which cash and cash equivalents | 207 |
| Total assets | 13,659 |
| Non-current liabilities | 376 |
| Current liabilities | 2,648 |
| Total liabilities | 3,024 |
| Fair value of net assets | 10,635 |
| Consideration received | 5,000 |
| Loss from the sale of discontinued operations | -5,635 |
| in EUR 000 | I - IX 2020 | I - XII 2019 |
|---|---|---|
| Net cash flow from operating activities | -3,661 | -6,123 |
| Net cash flow from investing activities | -14 | -87 |
| Net cash flow from financing activities | -42 | -113 |
| Net decrease of cash | -3,718 | -6,323 |
In 2019, Telekom Slovenije founded a new subsidiary named SIOL Prishtina and an institution named Ustanova Srčni sklad. Telekom Slovenije became the 100% owner of Planet TV, derecognised the non-controlling stake, and finished the sales process of the 100% interest in Blicnet d. o. o., Banja Luka.
Segment reporting disclosures are based on an internal reporting system used by management in decision-making. The criterion for segment reporting is the country of a company’s headquarters, hence the Group records two segments, namely Slovenia and other countries.
Slovenia – this segment encompasses 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 content, and digital 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 funds to pursue its charity mission. Planet TV, which is disclosed as a discontinued operation due to the sale, is not disclosed in segments.
Other countries – includes all other Group companies, namely IPKO, SiOL Zagreb, SiOL Sarajevo, SiOL Podgorica, SiOL Skopje, SiOL Beograd, SiOL Prishtina and GVO Telekommunikation GmbH. The core activity of this segment is the provision of telecommunication services.
Sale transactions between individual segments are effected at market values. 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 parent company. Disclosures on revenue from external sales by type of revenue are provided in Note 7.
| In EUR thousand | Slovenia | Other countries | Eliminations and adjustments* | Total |
|---|---|---|---|---|
| External sales | 592,883 | 54,294 | 647,177 | |
| Intersegment sales | 79,074 | 5,771 | -84,845 | 0 |
| Total segment revenue | 671,957 | 60,065 | -84,845 | 647,177 |
| Other revenue | 7,167 | 527 | 7,694 | |
| Cost of goods and material sold | -88,488 | -1,939 | -90,427 | |
| Costs of materials and energy | -12,709 | -1,837 | -14,546 | |
| Costs of services | -210,340 | -15,696 | -226,036 | |
| Labour costs | -105,340 | -5,761 | -111,101 | |
| Depreciation/Amortisation | -138,417 | -28,862 | -167,279 | |
| Other operating expenses | -1,479 | -1,400 | -2,879 | |
| Total operating expenses | -556,773 | -55,495 | -612,268 | |
| Operating profit per segment | 122,351 | 5,097 | -84,845 | 42,603 |
| Finance income | 2,177 | |||
| Finance expenses | -10,173 | |||
| Profit before tax | 34,607 | |||
| Income tax | -636 | |||
| Deferred taxes | 113 | |||
| Net profit for the period | 34,084 |
*Amount arising from intercompany relations, which is eliminated from the consolidated statements
| In EUR thousand | Slovenia | Other countries | Eliminations and adjustments* | Total |
|---|---|---|---|---|
| Segment assets | 1,315,843 | 132,105 | -220,109 | 1,227,839 |
| Carrying amount of goodwill | 3,718 | 0 | 0 | 3,718 |
| Investments in intangible assets | 61,208 | 1,590 | 0 | 62,798 |
| Investments in property, plant and equipment | 91,571 | 7,945 | 0 | 99,516 |
| Segment liabilities | 655,272 | 121,819 | -139,736 | 637,355 |
*Amount arising from intercompany relations, which is eliminated from the consolidated statements
| In EUR thousand | Slovenia | Other countries | Total |
|---|---|---|---|
| Mobile services on end-customer market | 207,521 | 31,889 | 239,410 |
| Fixed-line telephone services on end-customer market | 207,893 | 21,276 | 229,169 |
| New sources of revenue | 7,209 | 0 | 7,209 |
| Wholesale market | 143,963 | 1,128 | 145,091 |
| Other revenue and merchandise | 26,297 | 1 | 26,298 |
| Total revenue | 592,883 | 54,294 | 647,177 |
| In EUR thousand | Slovenia | Other countries | Total |
|---|---|---|---|
| Revenue from services rendered | 500,260 | 53,216 | 553,476 |
| Sales revenue - goods | 92,623 | 1,078 | 93,701 |
| Total revenue | 592,883 | 54,294 | 647,177 |
| In EUR thousand | Slovenia | Other countries | Eliminations and adjustments* | Total |
|---|---|---|---|---|
| External sales | 607,816 | 57,076 | 664,892 | |
| Intersegment sales | 79,798 | 6,522 | -86,320 | 0 |
| Total segment revenue | 687,614 | 63,598 | -86,320 | 664,892 |
| Other revenue | 3,728 | 2,210 | 5,938 | |
| Cost of goods and material sold | -84,614 | -2,386 | -87,000 | |
| Costs of materials and energy | -13,486 | -1,817 | -15,303 | |
| Costs of services | -218,817 | -18,128 | -236,945 | |
| Labour costs | -103,900 | -5,733 | -109,633 | |
| Depreciation/Amortisation | -143,382 | -30,409 | -173,791 |
| I–XII 2020 | I–XII 2019 | I–XII 2020 | I–XII 2019 | |
|---|---|---|---|---|
| Mobile services on end-customer market | 239,410 | 248,646 | 207,727 | 216,629 |
| Fixed-line telephone services on end-customer market | 229,169 | 231,050 | 209,839 | 209,069 |
| New sources of revenue | 7,209 | 6,483 | 7,209 | 6,483 |
| Wholesale market | 145,091 | 149,927 | 144,654 | 151,243 |
| Other revenue and merchandise | 26,298 | 28,786 | 22,264 | 18,807 |
| Total revenue | 647,177 | 664,892 | 591,693 | 602,231 |
The Group and the Company recognises revenue based on a contract with a customer and when goods and services are passed to the customer in the amount that reflects the consideration to which the Group expects to be entitled.
In the case of contracts with customers with a term of 12 or 24 months that include several performance obligations (e.g. partially subsidised mobile phone or other telecommunication device, bundled with the service), the transaction price is allocated to individual performance obligations on the basis of relative stand-alone selling prices of the device and service. The 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 that were rendered but not billed on the reporting date.
Management expects that 75% of the transaction price allocated to unfulfilled obligations as at 31 December 2020 will be recognised as revenue in the amount of EUR 61,604 thousand in the following reporting period. The remaining 25%, i.e. EUR 20,349 thousand, will be recognised in the financial year 2022. All other subscription contracts are valid for one year or less or are charged depending on duration. The Group and the Company used the practical expedient provided under IFRS 15.121 and chose not to disclose in measurement about the unsatisfied performance obligations for these contracts.
In 2020, the Group recognised revenue in amount of EUR 5,034 thousand, which was included in the contract liability balance at the beginning of the period.
| I–XII 2020 | I–XII 2019 | I–XII 2020 | I–XII 2019 | |
|---|---|---|---|---|
| Revenue from services rendered | 553,476 | 575,308 | 491,855 | 508,374 |
| Revenue from sale of goods | 93,701 | 89,584 | 99,838 | 93,857 |
| Total revenue | 647,177 | 664,892 | 591,693 | 602,231 |
Revenues of the Telekom Slovenije Group stood at EUR 647.2 million or 3% less than in the same period of 2019.
In 2020, revenue was influenced by measures relating to the state-wide declaration of two waves of the COVID-19 epidemic, such as the closure of Telekom centres, lockdown of public life and restricted passage across state borders.
In the fixed-line telephone services on end-customer market, revenue is lower as a result of the decrease in revenue from fixed-line phone services, which is the result of a decline in classical connections and their replacement with mobile and IP-telephony, as well as due to lower revenue from IPKO, which is mainly the result of restrictions relating to the declared COVID-19 epidemic and the non-arrival of workers from abroad. Under the new sources of revenue, we record revenue arising from financial services, energy sector, eHealth and insurance. In 2020, all of the above sectors recorded growth, with the exception of financial services, which remained at the 2019 level.
Revenue on the wholesale market is lower than the one achieved in 2019, mainly due to lower revenue arising from foreign users’ roaming in our mobile networks. Other revenue and merchandise are lower compared to 2019 due to lower revenues of subsidiaries outside the telecommunications activity, which is the result of two waves of the COVID-19 epidemic declared. In comparison with the previous year, revenue from e-commerce, recorded by the goods sold (mobile, fixed or other goods), increased by 55%.
In 2020, the Telekom Slovenije Group generated EUR 9,468 thousand of revenue from lease, while the 2019 revenue from lease amounted to EUR 10,983. Telekom Slovenije generated EUR 10,392 thousand of revenue from lease in 2020, while the 2019 revenue from lease amounted to EUR 11,711.
| Telekom Slovenije Group | Telekom Slovenije | |||
|---|---|---|---|---|
| Maturity date in EUR thousand | 2020 | 2019 | 2020 | 2019 |
| - up to 1 year | 6,377 | 6,654 | 7,168 | 7,535 |
| - from 1 up to 2 years | 10,790 | 6,049 | 11,581 | 6,930 |
| - from 2 up to 3 years | 5,964 | 10,448 | 6,681 | 11,295 |
| - from 3 up to 4 years | 5,814 | 5,776 | 6,530 | 6,329 |
| - from 4 up to 5 years | 5,723 | 5,632 | 5,921 | 6,170 |
| - over 5 years | 34,928 | 34,737 | 35,509 | 34,143 |
| Telekom Slovenije Group | Telekom Slovenije | |||
|---|---|---|---|---|
| In EUR thousand | I–XII 2020 | I–XII 2019 | I–XII 2020 | I–XII 2019 |
| Government grants and other aids | 2,910 | 964 | 1,228 | 318 |
| Gains on disposal of property, plant and equipment | 278 | 680 | 182 | 628 |
| Revaluation other income | 101 | 184 | 1 | 6 |
| Revenue from write-off of liabilities from contracts with customers | 229 | 148 | ||
| Revenue from humanitarian foundation | 60 | 35 | 0 | 0 |
| Other income | 4,323 | 4,066 | 3,829 | 1,994 |
| Total other income | 7,694 | 5,938 | 5,254 | 2,954 |
Other income mainly refers to compensations received from the insurance company in the amount of EUR 3,256 thousand (2019: EUR 1,120 thousand). Income from government grants and other aids received mostly comprises state aid measures intended to alleviate COVID-19 epidemic effects. In accordance with the Act Determining the Intervention Measures to Contain the COVID-19 Epidemic and Mitigate its Consequences for Citizens and the Economy, some of the Telekom Slovenije Group companies utilised individual state aid measures:
The companies that used exemption from payment of contributions for pension and disability insurance paid out crisis allowance in the total amount of EUR 797 thousand (Note 10).
| Telekom Slovenije Group | In EUR thousand | I–XII 2020 | I–XII 2019 | Telekom Slovenije | I–XII 2020 | I–XII 2019 |
|---|---|---|---|---|---|---|
| Costs of material | 3,092 | 3,703 | 1,635 | 1,415 | ||
| Costs of energy | 11,454 | 11,600 | 9,117 | 9,231 | ||
| Total costs of materials and energy | 14,546 | 15,303 | 10,752 | 10,646 |
The costs of material mainly include material for network maintenance, office supplies and computer accessories, sales promotion material, professional literature and small tools. The bulk of the costs of energy is accounted for by electricity and fuel.
| Telekom Slovenije Group | In EUR thousand | I–XII 2020 | I–XII 2019 | Telekom Slovenije | I–XII 2020 | I–XII 2019 |
|---|---|---|---|---|---|---|
| Telecommunications services | 110,722 | 115,096 | 109,705 | 115,870 | ||
| Costs of leased lines, networks and platforms | 5,819 | 6,273 | 8,365 | 8,752 | ||
| Multimedia content | 16,559 | 18,432 | 17,845 | 20,020 | ||
| Costs of subcontractors | 34,067 | 35,403 | 28,409 | 28,058 | ||
| Maintenance of property, plant and equipment | 21,335 | 22,407 | 21,912 | 23,624 | ||
| Costs of other services | 37,534 | 39,334 | 31,131 | 31,799 | ||
| Total costs of services | 226,036 | 236,945 | 217,367 | 228,123 |
Compared to 2019, the costs of services in 2020 were EUR 10,909 thousand lower. In 2020, the declaration of the epidemic resulted in lower revenue from users roaming in foreign operator networks and foreign user roaming in our mobile network, which also resulted in lower costs of telecommunications services. The costs of leased lines, networks and platforms also declined.
The costs of maintaining property, plant and equipment are lower as a result of optimising the costs of access and core network and IT solutions.
The costs of other services mainly comprise advertising and sponsorship costs in the amount of EUR 7,271 thousand (2019: EUR 9,106 thousand), costs of intellectual and personal services in the amount of EUR 7,480 thousand (2019: EUR 7,794 thousand), costs of insurance premiums in the amount of EUR 2,825 thousand (2019: EUR 2,976 thousand) and costs of other services in the amount of EUR 10,191 thousand (2019: EUR 10,371 thousand).
In the costs of leasing lines, networks and platforms (not subject to IFRS 16 standard) are also included costs related to variable lease payments that amount to EUR 159 thousand (2019: EUR 113 thousand) for the Telekom Slovenije Group, and EUR 41 thousand (2019: EUR 76 thousand) for Telekom Slovenije.
| Telekom Slovenije Group | In EUR thousand | I–XII 2020 | I–XII 2019 | Telekom Slovenije | I–XII 2020 | I–XII 2019 |
|---|---|---|---|---|---|---|
| Salaries and compensations | 96,077 | 93,346 | 74,529 | 72,170 | ||
| Social security contributions | 18,696 | 18,291 | 15,179 | 14,915 | ||
| - of which defined contribution | 11,996 | 11,901 | 9,663 | 9,650 | ||
| Other labour costs | 12,429 | 12,452 | 8,903 | 8,901 | ||
| Provisions for jubilee rewards | 82 | 283 | 82 | 369 | ||
| Provisions for severance pays | 734 | 539 | 47 | 0 | ||
| - of which provisions for restructuring | 273 | 103 | 0 | 0 | ||
| Capitalised own products and services | -16,917 | -15,023 | -5,720 | -4,585 | ||
| Total labour costs | 111,101 | 109,633 | 93,320 | 91,770 |
Of the total of EUR 19,037 thousand of capitalised own products and services (2019: EUR 16,837 thousand), the Telekom Slovenije Group disclosed EUR 16,917 thousand (2019: EUR 15,023 thousand) under labour costs. The remaining value is disclosed under Other operating expenses (Note 11). Services rendered for the needs of the Group are capitalised among intangible assets and property, plant and equipment (Notes 15 and 16).
Other labour costs include the paid-out crisis allowance in the total amount of EUR 797 thousand, which was paid out by the companies that availed themselves of exemption from payment of contributions for pension and disability insurance (Note 8).
In 2020, the average number of employees by hours worked in the Telekom Slovenije Group was 3,176.80 (2019: 3,286.24).
Of the total of EUR 6,629 thousand of capitalised own products and services (2019: EUR 5,345 thousand), Telekom Slovenije disclosed EUR 5,720 thousand (2019: EUR 5,345 thousand) under labour costs. The remaining value is disclosed under Other operating expenses (Note 11). Services rendered for the needs of the Group are capitalised among intangible assets and property, plant and equipment (Notes 15 and 16).
In 2020, the average number of employees by hours worked in Telekom Slovenije was 2,103.37 (2019: 2,102.11).
Telekom Slovenije Group
| Level | 31 Dec 2020 | 31 Dec 2019 | 31 Dec 2020 | 31 Dec 2019 |
|---|---|---|---|---|
| Level I–IV | 312 | 324 | 116 | 120 |
| Level V | 1,022 | 1,049 | 722 | 740 |
| Level VI | 706 | 708 | 384 | 386 |
| Level VII | 1,191 | 1,181 | 829 | 817 |
| Level VIII | 161 | 167 | 114 | 119 |
| Total | 3,392 | 3,429 | 2,165 | 2,182 |
| In EUR thousand | I–XII 2020 | I–XII 2019 | I–XII 2020 | I–XII 2019 |
|---|---|---|---|---|
| Provisions | -4,587 | -9 | -4,500 | 0 |
| Loss on disposal of intangible assets and property, plant and equipment | 564 | 550 | 552 | 533 |
| Impairment and write-off of inventories | 1,230 | 1,991 | 1,000 | 1,063 |
| Impairment and write-off of trade and other receivables | 2,487 | 1,463 | 2,038 | 1,281 |
| Adjustment and write-off of contract assets | 795 | 1,011 | 769 | 990 |
| Impairment of intangible assets and property, plant and equipment | 222 | 0 | 59 | 0 |
| Impairment of right-of-use assets | 535 | 394 | ||
| Capitalised own products and services | -2,120 | -1,814 | -909 | -760 |
| Other humanitarian expenditure – Srčni sklad | 633 | 70 | 0 | |
| Other expenses | 4,189 | 3,721 | 3,686 | 3,464 |
| Total other operating expenses | 2,879 | 6,955 | 2,734 | 6,575 |
In 2020, expenses for provisions are negative both in the Group and in the Company due to a reversal of provisions for probable liabilities resulting from lawsuits (Note 31). Other expenses mainly refer to compensations from settlements, considerations and other costs in the amount of EUR 1,056 thousand (2019: EUR 920 thousand), fee for the use of building land in the amount of EUR 610 thousand (2019: EUR 601 thousand) and other costs.
| In EUR thousand | I–XII 2020 | I–XII 2019 | I–XII 2020 | I–XII 2019 |
|---|---|---|---|---|
| Dividend income | 8 | 159 | 841 | 159 |
| Other revenue from shares and interests | 0 | 1,292 | 0 | 1,292 |
| Interest income | 1,375 | 1,435 | 4,087 | 5,026 |
| Net exchange gains | 688 | 0 | 691 | 1 |
| Revenue from write-off of liabilities for right-of-use assets | 751 | 5 | 751 | 5 |
| Other finance income | 314 | 304 | ||
| Total finance income | 2,177 | 2,905 | 5,724 | 6,497 |
| In EUR thousand | I–XII 2020 | I–XII 2019 | I–XII 2020 | I–XII 2019 |
|---|---|---|---|---|
| Interest on bonds issued | 1,992 | 1,992 | 1,992 | 1,992 |
| Interest expense from borrowings | 4,825 | 7,898 | 4,804 | 7,872 |
| Net exchange loss | 0 | 91 | 1 | 90 |
| Impairments of investments | 0 | 108 | 8,888 | 17,703 |
| Impairment and write-off of loans | 0 | 0 | 0 | 7,723 |
| Interest expenses from right-of-use assets | 2,348 | 2,331 | 2,352 | 2,188 |
| Other finance expenses | 1,008 | 1,423 | 464 | 889 |
| Total finance expenses | 10,173 | 13,843 | 18,501 | 38,457 |
Financial result: -7,996 -10,938 -12,777 -31,960
In 2020, Telekom Slovenije sold 100% interest in its subsidiary Planet TV. The purchase consideration amounted to EUR 5,000 thousand. The Company realized a loss in the amount of EUR 8,888 thousand from sale of investment in Planet TV (Impairments of investments).
In 2019, the Company impaired loans granted to Planet TV in the amount of EUR 7,723 thousand (Impairment and write-off of loans) based on an estimate of cash flows available for repayment of loans. Based on the decision of the International Court of Arbitration of the International Chamber of Commerce in the arbitration proceedings between Telekom Slovenije and Antenna Slovenia B.V., the value of the option for a 34% business interest in Planet TV, purchased in 2019, was determined at EUR 17,595 thousand (Impairment and write-off of investments).
| In EUR thousand | I–XII 2020 | I–XII 2019 | I–XII 2020 | I–XII 2019 |
|---|---|---|---|---|
| Current tax | -636 | -705 | 0 | 0 |
| Deferred tax | 244 | -875 | 152 | -1,130 |
| Other taxes not disclosed under other items | -131 | -141 | -131 | -141 |
| Total tax | -523 | -1,721 | 21 | -1,271 |
| Telekom Slovenije Group | Telekom Slovenije | In EUR thousand | 2020 | 2019 | 2020 | 2019 |
|---|---|---|---|---|---|---|
| Profit before tax | 34,607 | 30,265 | 24,153 | 1,856 | ||
| Income tax using the prescribed tax rate | -6,575 | -561 | -4,589 | -353 | ||
| Tax-free dividends received | 15 | 96 | 4 | 154 | 96 | |
| Tax relief used in the current period | 240 | 885 | 0 | 657 | ||
| Reversal of tax relief used in previous periods | -1,034 | -4 | -1,034 | -3 | ||
| Non-deductible expenses | -3,356 | -6,991 | -3,242 | -6,892 | ||
| Deductible expenses from impairment in subsidiaries | 13,472 | 1,270 | 13,473 | 1,270 | ||
| Tax loss | -6,061 | 0 | -6,061 | 0 | ||
| Unused tax relief | 1,450 | 4,095 | 1,450 | 4,095 | ||
| Other items (corrections, withholding tax) | 1,187 | -511 | -130 | -141 | ||
| Total tax | -523 | -1,721 | 21 | -1,271 | ||
| Effective tax rate | 1.5% | 5.7% | 0.0% | 68.5% |
As at 31 December 2020, the tax loss of the Telekom Slovenije Group amounts to EUR 116,606 thousand (31 December 2019: EUR 141,450 thousand).
As at 31 December 2020 the tax loss of Telekom Slovenije amounts to EUR 91,967 thousand (31 December 2019: EUR 60,069 thousand). In 2020, the Company disclosed tax loss in the amount of EUR 31,898 thousand in its tax returns.
The Group’s balance of unused tax reliefs amounts to EUR 66,508 thousand in 2020, whereas the 2019 amount was EUR 55,700 thousand.
As at 31 December 2020, Telekom Slovenije’s balance of unused tax reliefs amounts to EUR 65,771 thousand (31 December 2019: EUR 54,551 thousand).
Deferred tax assets and liabilities are calculated on the basis of temporary differences under the balance sheet liability method using the corporate income tax rate in the following years.
In the period concerned, corporate income was taxed at a 19% tax rate (2019: 19%) in Slovenia. For other companies, tax rates are defined in the table of subsidiaries under Note 5.
| Telekom Slovenije Group | Telekom Slovenije | In EUR thousand | 2020 | 2019 | Through profit or loss | Through comprehensive income | ||
|---|---|---|---|---|---|---|---|---|
| Intangible assets, and property, plant and equipment | 17,000 | 17,914 | -914 | 16,990 | 17,903 | -913 | ||
| Investments | 1,232 | 999 | 233 | 1,232 | 999 | 233 | ||
| Trade receivables | 2,493 | 2,431 | 62 | 2,371 | 2,262 | 109 | ||
| Tax loss carry forwards and unused tax reliefs | 23,156 | 21,778 | 1,377 | 23,155 | 21,778 | 1,377 | ||
| Provisions | 567 | 922 | -355 | 181 | 603 | -422 | ||
| Deferred tax assets | 44,448 | 44,044 | 170 | 233 | 43,929 | 43,545 | 151 | 233 |
Deferred taxes from intangible assets and property, plant and equipment arise from the difference between the operating and tax amortisation.
As at 31 December 2020, the Group and the Company have EUR 11,742 thousand in deferred tax assets arising from unused investment tax reliefs. In 2020, the Group and the Company formed the relating deferred tax assets only for the part that is to be used in view of the projection up to 2025. In line with the strategic business plan, the deferred tax assets arising from investment relief will be fully used in the period covered by the strategic business plan.
2020 in the amount of EUR 31,828 thousand. In view of the profit planned in the strategic business plan period, the Group and the Company will, in 2025, use the unused tax losses carried forward and the deferred taxes from tax losses in addition to unused investment tax relief.
The Group and the Company consider two criteria in tax planning, namely their strategic business plan and applicable legislation. The Group and the Company have a confirmed strategic business plan for the next five years, from which future taxable profits arise. In tax planning, the Group and the Company prepared several scenarios of using tax reliefs over the coming 10-year period, according to which deferred taxes arising from unused investment tax reliefs in the plan period of 5 years will be used fully, while unused tax losses carried forward, which are not subject to legal limitations, will begin to be used in 2025 following a different dynamic.
The Group and the Company prepared no simulation of using unused tax losses and unused tax reliefs for the period beyond 10 years, as such estimates are unreliable.
| Telekom Slovenije Group | Telekom Slovenije | |||||||
|---|---|---|---|---|---|---|---|---|
| In EUR thousand | 2020 | 2019 | Through profit or loss | Through other comprehensive income | 2020 | 2019 | Through profit or loss | Through other comprehensive income |
| Intangible assets, and property, plant and equipment | 1,328 | 1,402 | -74 | 0 | 0 | 0 | 0 | 0 |
| Investments | 235 | 274 | 0 | -392 | 352 | 74 | 0 | -39 |
| Deferred tax liabilities | 1,563 | 1,676 | -74 | -39 | 235 | 274 | 0 | -39 |
| In EUR thousand | Telekom Slovenije Group | Telekom Slovenije |
|---|---|---|
| Balance as at 1 January 2019 | 45,215 | 44,701 |
| Utilisation | -10,074 | -10,030 |
| Write off | -990 | -837 |
| Measurement | 9,893 | 9,711 |
| Balance as at 31 December 2019 | 44,044 | 43,545 |
| Utilisation | -5,704 | -5,662 |
| Elimination | -1,957 | -1,806 |
| Measurement | 8,065 | 7,852 |
| Balance as at 31 December 2020 | 44,448 | 43,929 |
| In EUR thousand | Telekom Slovenije Group | Telekom Slovenije |
|---|---|---|
| Balance as at 1 January 2019 | 1,910 | 238 |
| Elimination | -270 | 0 |
| Measurement | 36 | 36 |
| Balance as at 31 December 2019 | 1,676 | 274 |
| Elimination | -113 | -39 |
| Balance as at 31 December 2020 | 1,563 | 235 |
In Telekom Slovenije, deductible temporary differences, tax losses and tax reliefs, for which no deferred tax assets were recognized, amount to:
In the Telekom Slovenije Group, deductible temporary differences, tax losses and tax reliefs, for which no deferred tax assets were recognized, amount to:
within the period and the time during which the shares participated in the generation of profit. As the Company has no dilutive potential ordinary shares, the basic earnings per share equal diluted earnings per share.
| I–XII 2020 | I–XII 2019 Restated | I–XII 2020 | I–XII 2019 | |
|---|---|---|---|---|
| Net profit/loss of continuing operations | 34,084 | 28,544 | 24,174 | 585 |
| Weighted average number of ordinary shares for earnings per share | 6,505,478 | 6,505,478 | 6,505,478 | 6,505,478 |
| Earnings per share from continuing operations | 5.24 | 4.39 | 3.72 | 0.09 |
| Net profit or loss from discontinued operations | -9,219 | -27,603 | ||
| Earnings per share from discontinued operations | -1.42 | -4.24 | 0.00 | |
| Total net profit | 24,865 | 941 | 24,174 | 585 |
| Total earnings per share | 3.82 | 0.14 | 3.72 | 0.09 |
| Telekom Slovenije Group | Telekom Slovenije | |||
|---|---|---|---|---|
| 2020 | 2019 | 2020 | 2019 | |
| Weighted average number of ordinary shares for earnings per share | 6,535,478 | 6,535,478 | 6,535,478 | 6,535,478 |
| Less treasury shares of the Company | -30,000 | -30,000 | -30,000 | -30,000 |
| Total | 6,505,478 | 6,505,478 | 6,505,478 | 6,505,478 |
Concessions refer to the right to use the frequency spectrum GSM, UMTS and LTE on the territory of the Republic of Slovenia, and GSM in Kosovo in the total amount of EUR 65,910 thousand (2019: EUR 75,282 thousand). Useful lives of individual concessions are disclosed in Note 46 in the table Concessions for mobile phone services. Under concessions and licences, the Group also discloses programme rights and licences for use of computer software.
Intangible assets also include the values of the Intell customer list in the amount of EUR 133 thousand (2019: EUR 369 thousand) and the IZImobil customer list in the amount of EUR 186 thousand (2019: EUR 2,410 thousand). According to the value estimates conducted on the customer list, no impairment is needed.
Goodwill of EUR 3,718 thousand in the Telekom Slovenije Group occurred during the takeover of TSinpo (EUR 115 thousand) in 2017 and the takeover and acquisition of Debitel in 2015 (EUR 3,603 thousand). At the end of year 2020, the Group and the Company assessed the recoverable amount of goodwill arising from the acquisition of Debitel. The appraisal was conducted by a certified business appraiser. For the purpose of appraising the recoverable amount of non-current assets of the Debitel CGU, the Group and the Company applied earnings-based valuation with the discounted cash flows method. It was established that the recoverable value of non-current assets of the Debitel CGU exceeds their carrying amount, thus requiring no impairment of goodwill.
As at 31 December 2020, the Group disclosed contractual commitments for intangible assets in the amount of EUR 6,057 thousand (2019: EUR 7,074 thousand), which relate to the set-up of computer systems and to software licences.
| Goodwill | Concessions and licences | Costs of obtaining contracts with customers | Computer software | Other intangible assets | Assets not yet available for use | Total | ||
|---|---|---|---|---|---|---|---|---|
| Cost | Balance as at 1 January 2020 | 107,654 | 359,630 | 16,683 | 265,574 | 66,740 | 14,612 | 830,894 |
| Additions | 0 | 614 | 0 | 114 | 269 | 59,954 | 60,951 | |
| Assets generated in the Group | 0 | 0 | 0 | 193 | 0 | 1,654 | 1,847 | |
| Transfer into use | 0 | 36,066 | 7,775 | 16,443 | 244 | -60,528 | 0 | |
| Disposals | 0 | -31,744 | -3,558 | -4,017 | -890 | -39,408 | ||
| Other transfers* | 0 | 1 | 0 | 1,484 | -3 | -172 | 1,310 | |
| Balance as at 31 December 2020 | 107,654 | 364,567 | 20,900 | 279,791 | 67,161 | 15,520 | 855,594 |
| Balance as at 1 January 2020 | 103,936 | 254,855 | 7,944 | 228,473 | 40,473 | 267 | 635,948 | |
|---|---|---|---|---|---|---|---|---|
| Disposals | 0 | -31,562 | -3,558 | -3,991 | -890 | -39,200 | ||
| Other transfers* | 0 | -1 | -1 | 1,189 | -20 | 1,185 |
| In EUR thousand | Goodwill | Concessions and licences | Costs of obtaining contracts with customers | Computer software | Other intangible assets | Assets not yet available for use | Total | |
|---|---|---|---|---|---|---|---|---|
| Cost | Balance as at 1 January 2019 | 107,654 | 322,548 | 18,423 | 252,655 | 65,920 | 15,904 | 783,104 |
| Additions | 0 | 38,889 | 0 | 757 | 35,885 | 75,558 | ||
| Assets generated in the Group | 0 | 820 | 1050 | 1,365 | 1,552 | |||
| Transfer into use | 0 | 6,603 | 8,131 | 19,662 | 791 | -35,187 | 0 | |
| Disposals | 0 | -8,126 | -9,871 | -7,065 | 0 | -25,062 | ||
| Other transfers* | 0 | -553 | 0 | -539 | 0 | -3,355 | -4,447 | |
| Balance as at 31 December 2019 | 107,654 | 359,447 | 16,683 | 265,575 | 66,738 | 14,612 | 830,709 |
| Balance as at 1 January 2019 | 103,936 | 228,031 | 9,188 | 213,058 | 39,617 | 267 | 594,097 |
|---|---|---|---|---|---|---|---|
| Disposals | 0 | -8,126 | -9,871 | -7,018 | 0 | -25,015 | |
| Other transfers* | 0 | 9 | 0 | -4,766 | 0 | -4,757 | |
| Amortisation | 0 | 34,760 | 8,627 | 22,429 | 5,623 | 0 | 71,439 |
| Balance as at 31 December 2019 | 103,936 | 254,674 | 7,944 | 228,469 | 40,474 | 267 | 635,764 |
| Balance as at 1 January 2019 | 3,718 | 94,517 | 9,235 | 39,597 | 26,303 | 15,637 | 189,007 |
|---|---|---|---|---|---|---|---|
| Balance as at 31 December 2019 | 3,718 | 104,773 | 8,739 | 37,106 | 26,264 | 14,345 | 194,945 |
*Other transfers include transfers between intangible assets and property, plant and equipment, and transfers among groups of assets.
As at 31 December 2020, the Company disclosed contractual commitments for intangible assets in the amount of EUR 6,585 thousand (2019: EUR 7,924 thousand), which relate to the set-up of computer systems and to software licences.
| In EUR thousand | Goodwill | Concessions and licences | Costs of obtaining contracts with customers | Computer software | Other intangible assets | Assets not yet available for use | Total | |
|---|---|---|---|---|---|---|---|---|
| Cost | Balance as at 1 January 2020 | 3,602 | 216,896 | 16,683 | 253,812 | 18,649 | 14,111 | 523,753 |
| Additions | 0 | 0 | 0 | 0 | 61,858 | 61,858 | ||
| Assets generated in the Company | 0 | 0 | 0 | 0 | 1,606 | 1,606 | ||
| Transfer into use | 0 | 38,695 | 7,775 | 16,317 | 244 | -63,031 | 0 | |
| Disposals | 0 | -31,583 | -3,558 | -3,926 | 0 | -39,067 | ||
| Other transfers* | 0 | 0 | 0 | 1,277 | 0 | -11,276 | ||
| Balance as at 31 December 2020 | 3,602 | 224,008 | 20,900 | 267,480 | 18,893 | 14,543 | 549,426 |
| Balance as at 1 January 2020 | 0 | 156,875 | 7,944 | 215,028 | 11,214 | 0 | 391,061 |
|---|---|---|---|---|---|---|---|
| Goodwill | Concessions and licences | Costs of obtaining contracts with customers | Computer software | Other intangible assets | Assets not yet available for use | Total | |
|---|---|---|---|---|---|---|---|
| Balance as at 1 January 2019 | 3,602 | 213,039 | 18,423 | 234,491 | 17,981 | 14,808 | 502,344 |
| Additions | 0 | 0 | 0 | 32,582 | 32,582 | ||
| Assets generated in the Company | 0 | 0 | 0 | 1,174 | 1,174 | ||
| Transfer into use | 0 | 6,332 | 8,131 | 19,322 | 668 | -34,453 | |
| Disposals | 0 | -2,518 | -9,871 | 0 | 0 | -12,389 | |
| Other transfers* | 0 | 430 | -1 | 0 | 0 | 42 | |
| Balance as at 31 December 2019 | 3,602 | 216,896 | 16,683 | 253,812 | 18,649 | 14,111 | 523,753 |
| Balance as at 1 January 2019 | 0 | 136,551 | 9,188 | 194,075 | 7,159 | 0 | 346,973 |
|---|---|---|---|---|---|---|---|
| Disposals | 0 | -2,518 | -9,871 | 0 | 0 | -12,389 | |
| Other transfers* | 0 | 9 | 0 | 0 | 0 | 0 | 9 |
| Amortisation | 0 | 22,833 | 8,627 | 20,953 | 4,055 | 0 | 56,468 |
| Balance as at 31 December 2019 | 0 | 156,875 | 7,944 | 215,028 | 11,214 | 0 | 391,061 |
| Balance as at 1 January 2019 | 3,602 | 76,488 | 9,235 | 40,416 | 10,822 | 14,808 | 155,371 |
|---|---|---|---|---|---|---|---|
| Balance as at 31 December 2019 | 3,602 | 60,021 | 8,739 | 38,784 | 7,435 | 14,111 | 132,692 |
*Other transfers include transfers between intangible assets and property, plant and equipment, and transfers among groups of assets.
The Group companies have unlimited title on intangible assets, which are free of encumbrances.
As capitalised non-current deferred costs of development, the Group and the Company disclose internal and external development in projects/development activities or activities that meet the criteria of recognition under intangible assets. The key judgement elements include technical feasibility of the project, the purpose of completion, as well as the ability to use or sell and thus generate future economic benefits. Development projects involve strategic projects that are pre-planned and for which adequate technical, financial and human resources that are key for project completion are ensured for them, and result in significantly improved products, processes, systems or services prior to the use itself.
| Cost | Balance as at 1 January 2020 | Total | |||
|---|---|---|---|---|---|
| Computer software | Own work - development | Other intang. non-curr. assets | External - development | ||
| Balance as at 1 January 2020 | 10,100 | 4 | 31,456 | 3183,670 | 45,548 |
| Additions - external development | 0 | 0 | 3,212 | 3,212 | |
| Additions - own development | 0 | 0 | 0 | 307 | |
| Transfer from ongoing investments | 4,400 | 3,261 | 0 | -3,701 | 0 |
| Disposals | -630 | -23 | 0 | 0 | -86 |
| Balance as at 31 December 2020 | 10,477 | 4 | 34,694 | 3183,488 | 48,981 |
| Accumulated depreciation and impairment | Balance as at 1 January 2020 | |||
|---|---|---|---|---|
| Computer software | Own work - development | Other intang. non-curr. assets | External - development | |
| Balance as at 1 January 2020 | 7,491 | 2 | 18,411 | 64 |
| Disposals | -22 | 0 | -22 | 0 |
| Amortisation | 1,338 | 1 | 5,677 | 160 |
| Balance as at 31 December 2020 | 8,807 | 3 | 24,066 | 800 |
| Carrying amount | Balance as at 1 January 2020 | |||
|---|---|---|---|---|
| Computer software | Own work - development | Other intang. non-curr. assets | External - development | |
| Balance as at 1 January 2020 | 2,609 | 2 | 13,045 | 254 |
| Balance as at 31 December 2020 | 1,670 | 1 | 10,628 | 238 |
| Cost | Balance as at 1 January 2019 | Total | |||
|---|---|---|---|---|---|
| Computer software | Own work - development | Other intang. non-curr. assets | External - development | ||
| Balance as at 1 January 2019 | 9,550 | 427 | 927 | 318 | 41,510 |
| Additions - external development | 0 | 0 | 0 | 3,583 | |
| Additions - own development | 0 | 0 | 0 | 458 | |
| Transfer from ongoing investments | 550 | 0 | 3,532 | 0 | |
| Disposals | 0 | 0 | -30 | 0 | |
| Balance as at 31 December 2019 | 10,100 | 4 | 31,456 | 3183,670 | 45,548 |
| Accumulated depreciation and impairment | Balance as at 1 January 2019 | |||
|---|---|---|---|---|
| Computer software | Own work - development | Other intang. non-curr. assets | External - development | |
| Balance as at 1 January 2019 | 6,179 | 1 | 12,812 | 47 |
| Disposals | 0 | 0 | -3 | 0 |
| Amortisation | 1,312 | 1 | 5,602 | 170 |
| Balance as at 31 December 2019 | 7,491 | 2 | 18,411 | 640 |
| Carrying amount | Total as at 1 January 2019 | |||
|---|---|---|---|---|
| Computer software | Own work - development | Other intang. non-curr. assets | External - development | |
| Total as at 1 January 2019 | 3,371 | 3 | 15,115 | 271 |
| Total as at 31 December 2019 | 2,609 | 2 | 13,045 | 254 |
In 2020, significant increases in property, plant and equipment in use refer mostly to the construction and upgrade of cable network and obtainment of cable lines, as well as of telecommunications and other equipment. The item of other equipment comprises modems, other equipment at clients, computer equipment, furniture, cars and other equipment.
Self-constructed property, plant and equipment by in the Group and the Company relate to services that are rendered within 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.
The costs of borrowing, which may be directly attributed to the purchase, construction or production of an asset under construction, are part of the cost of said asset. The costs of borrowing in relation to the procurement and construction of assets are capitalised if they are connected to the procurement of a significant asset, whose construction would take over 24 months. In 2020, over 80% of investments were
| Other intang. non-curr. assets | Own work - development | Computer software | External - development | Other intang. non-curr. assets | External - development | Ongoing investments | Total Cost |
|---|---|---|---|---|---|---|---|
| Balance as at 1 January 2020 | 8,264 | 4 | 29,904 | 318 | 3,404 | 41,894 | |
| Additions - external development | 0 | 0 | 0 | 3,105 | 3,105 | ||
| Additions - own development | 0 | 0 | 0 | 259 | 259 | ||
| Transfer from assets under construction | 4,240 | 3,154 | 0 | -3,578 | 0 | ||
| Disposals | -490 | -30 | 0 | -52 | |||
| Balance as at 31 December 2020 | 8,639 | 4 | 33,055 | 318 | 3,190 | 45,206 |
| Accumulated depreciation and impairment | Balance as at 1 January 2020 | 5,984 | 2 | 17,122 | 64 | 0 | 23,172 |
|---|---|---|---|---|---|---|---|
| Disposals | -70 | -2 | 0 | 0 | -9 | ||
| Amortisation | 1,144 | 1 | 5,505 | 16 | 0 | 6,666 | |
| Balance as at 31 December 2020 | 7,121 | 3 | 22,625 | 80 | 0 | 29,829 |
| Carrying amount | Balance as at 1 January 2020 | 2,280 | 2 | 12,782 | 254 | 3,404 | 18,722 |
|---|---|---|---|---|---|---|---|
| Balance as at 31 December 2020 | 1,518 | 1 | 10,430 | 238 | 3,190 | 15,377 |
In EUR thousand
| Computer software | Own work - development | Other intang. non.curr. assets | Own work - development | Computer software | External - development | Other intang. non.curr. assets | External - development | Ongoing investments | Total Cost |
|---|---|---|---|---|---|---|---|---|---|
| Balance as at 1 January 2019 | 7,873 | 4 | 26,547 | 318 | 3,395 | 38,137 | |||
| Additions – external development | 0 | 0 | 0 | 3,453 | 3,453 | ||||
| Additions – own development | 0 | 0 | 0 | 303 | 303 | ||||
| Transfer from ongoing investments | 391 | 0 | 3,357 | 0 | -3,747 | 1 | |||
| Balance as at 31 December 2019 | 8,264 | 4 | 29,904 | 318 | 3,404 | 41,894 |
| Accumulated depreciation and impairment | Balance as at 1 January 2019 | 4,872 | 1 | 11,698 | 47 | 0 | 16,618 |
|---|---|---|---|---|---|---|---|
| Amortisation | 1,112 | 15 | 4,424 | 17 | 0 | 6,554 | |
| Balance as at 31 December 2019 | 5,984 | 2 | 17,122 | 64 | 0 | 23,172 |
| Carrying amount | Balance as at 1 January 2019 | 3,001 | 3 | 14,849 | 271 | 3,395 | 21,519 |
|---|---|---|---|---|---|---|---|
| Balance as at 31 December 2019 | 2,280 | 2 | 12,782 | 254 | 3,404 | 18,722 |
As at 31 December 2020, contractual commitments for property, plant and equipment amounted to EUR 5,273 thousand (2019: EUR 5,582 thousand) and largely refer to the set-up of the telecommunications network.
In EUR thousand
| Land, buildings, cable lines | Cable network | Telephone exchanges | Mobile network equipment | Other equipment | Assets under construction | Other | Total | |
| Cost | Balance as at 1 January 2020 | 466,622 | 1,130,374 | 111,950 | 506,633 | 407,157 | 34,727 | 2,657,486 |
| Difference from translation to the presentation currency | 0 | -70 | 0 | -3 | -23 | 0 | -33 | |
| Additions | 203,066 | 4 | 1,377 | 4,138 | 74,916 | 0 | 83,521 | |
| Fixed assets generated in the Group | 0 | 470 | 390 | 15,909 | 0 | 15,995 | ||
| Transfer to use | 12,912 | 33,471 | 1,649 | 9,462 | 29,114 | -86,607 | 0 | 1 |
| Disposals | -327 | -4,432 | -8,075 | -186,735 | -57,997 | -26 | 0 | -257,592 |
| Other transfers* | 401 | 3,682 | 0 | -4,196 | -40 | -2,494 | 88 | -2,559 |
| Balance as at 31 December 2020 | 479,628 | 1,166,201 | 105,528 | 326,580 | 382,369 | 36,402 | 111 | 2,496,819 |
In EUR thousand
| Land, buildings, cable lines | Cable network | Telephone exchanges | Mobile network equipment | Other equipment | Assets under construction | Other | Total | |
| Balance as at 1 January 2020 | 193,284 | 911,852 | 101,077 | 447,344 | 336,156 | 11,390 | 0 | 2,001,103 |
| Difference from translation to the presentation currency | 0 | -220 | 4 | -728 | 0 | 0 | -746 | |
| Additions | 0 | 0 | 0 | 2,016 | 0 | 0 | 36 | |
| Disposals | -275 | -4,347 | -8,057 | -186,611 | -54,521 | 0 | 0 | -253,811 |
| Depreciation | 12,950 | 22,634 | 4,219 | 16,922 | 30,380 | 0 | 0 | 87,105 |
| Other transfers* | 320 | 200 | 0 | -1,761 | -91 | 0 | 0 | -1,512 |
| Balance as at 31 December 2020 | 206,279 | 930,137 | 97,239 | 275,918 | 311,212 | 11,390 | 0 | 1,832,175 |
| In EUR thousand | Land, buildings, cable lines | Cable network | Telephone exchanges | Mobile network equipment | Other equipment | Assets under construction | Other | Total |
|---|---|---|---|---|---|---|---|---|
| Balance as at 1 January 2020 | 273,338 | 218,522 | 10,873 | 59,289 | 71,001 | 23,337 | 23 | 656,383 |
| Balance as at 31 December 2020 | 273,349 | 236,064 | 8,289 | 50,662 | 71,157 | 25,012 | 111 | 664,644 |
*Other transfers include transfers between intangible assets and property, plant and equipment, and transfers among groups of assets.
In EUR thousand
| Land, buildings, cable lines | Cable network | Telephone exchanges | Mobile network equipment | Other equipment | Assets under construction | Other | Total | |
| Cost | Balance as at 1 January 2019 | 449,929 | 1,099,127 | 125,008 | 518,677 | 404,568 | 37,035 | 2,634,511 |
| Difference from translation to the presentation currency | 0 | 3 | 0 | 0 | 5 | -40 | 4 | |
| Additions | 35 | 2,551 | 3 | 1,170 | 3,822 | 72,236 | 0 | 79,817 |
| Fixed assets generated in the Group | 0 | 530 | 650 | 14,157 | 0 | 14,275 | ||
| Transfer to use | 14,682 | 29,374 | 4,280 | 8,779 | 27,695 | -84,810 | 0 | |
| Disposals | -1,042 | -5,619 | -17,341 | -25,039 | -29,349 | -50 | -78,395 |
| 3,013 | 4,885 | 0 | 2,982 | 416 | -3,881 | -144 | 7,271 |
|---|---|---|---|---|---|---|---|
| 466,617 | 1,130,374 | 111,950 | 506,634 | 407,157 | 34,728 | 232,657 | 483 |
|---|---|---|---|---|---|---|---|
| 180,391 | 891,639 | 113,667 | 456,267 | 325,517 | 11,390 | 0 | 1,978,871 |
|---|---|---|---|---|---|---|---|
| 0 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|---|---|---|---|---|---|---|---|
| 0 | 0 | 0 | 6 | 72 | 0 | 0 | 78 |
|---|---|---|---|---|---|---|---|
| -185 | -2,290 | -17,323 | -27,369 | -26,035 | 0 | 0 | -73,202 | |
|---|---|---|---|---|---|---|---|---|
| 13,074 | 22,505 | 4,735 | 18,441 | 31,082 | 0 | 0 | 89,837 |
|---|---|---|---|---|---|---|---|
| 0 | -20 | 0 | 5,517 | 0 | 0 | 5,515 |
|---|---|---|---|---|---|---|
| 193,280 | 911,853 | 101,079 | 447,345 | 336,153 | 11,390 | 0 | 2,001,100 | |
|---|---|---|---|---|---|---|---|---|
| 269,538 | 207,488 | 11,341 | 62,410 | 79,051 | 25,645 | 167 | 655,640 |
|---|---|---|---|---|---|---|---|
| 273,337 | 218,521 | 10,871 | 59,289 | 71,004 | 23,338 | 23 | 656,383 |
|---|---|---|---|---|---|---|---|
| Land, buildings and cable lines | Cable network | Telephone exchanges | Mobile network equipment | Other equipment | Assets under construction | Other | Total |
|---|---|---|---|---|---|---|---|
| 4,491 | 6,040 | 0 | 0 | 321 | 0 | 0 | 10,851 |
| Land, buildings and cable lines | Cable network | Telephone exchanges | Mobile network equipment | Other equipment | Assets under construction | Other | Total |
|---|---|---|---|---|---|---|---|
| 3,856 | 5,811 | 0 | 0 | 224 | 0 | 0 | 9,891 |
| Land, buildings, cable lines | Cable network | Telephone exchanges | Mobile network equipment | Other equipment | Assets under construction | Total |
|---|---|---|---|---|---|---|
| Balance as at 1 January 2020 | 438,151 | 1,059,317 | 110,774 | 391,394 | 385,997 | 37,112 | 2,422,745 |
|---|---|---|---|---|---|---|---|
| Additions | 0 | 0 | 4 | 0 | 2,049 | 83,990 | 86,043 |
| Fixed assets generated in the Company | 0 | 0 | 0 | 0 | 0 | 5,024 | 5,024 |
| Transfer to use | 12,882 | 33,471 | 1,649 | 9,461 | 27,685 | -85,148 | 0 |
| Disposals | -276 | -42 | -8,075 | -185,840 | -52,514 | -22 | -246,769 |
| Other transfers* | -234 | -2 | 0 | -1,257 | -41 | 0 | -1,534 |
| Balance as at 31 December 2020 | 450,523 | 1,092,744 | 104,352 | 213,758 | 363,176 | 40,956 | 2,265,509 |
| Balance as at 1 January 2020 | 186,304 | 868,180 | 99,863 | 363,312 | 320,969 | 0 | 1,838,628 |
|---|---|---|---|---|---|---|---|
| Additions | 0 | 0 | 0 | 20 | 140 | 34 | |
| Disposals | -236 | -39 | -8,057 | -185,775 | -49,344 | 0 | -243,451 |
| Depreciation | 12,393 | 18,232 | 4,218 | 9,352 | 27,014 | 0 | 71,209 |
| Other transfers* | -253 | 0 | 0 | -1,176 | -14 | 0 | -1,443 |
| Balance as at 31 December 2020 | 198,208 | 886,373 | 96,024 | 185,733 | 298,639 | 0 | 1,664,977 |
| Balance as at 1 January 2020 | 251,847 | 191,137 | 10,911 | 28,082 | 65,028 | 37,112 | 584,117 |
|---|---|---|---|---|---|---|---|
| Balance as at 31 December 2020 | 252,315 | 206,371 | 8,328 | 28,025 | 64,537 | 40,956 | 600,532 |
*Other transfers include transfers between intangible assets and property, plant and equipment and transfers among groups of assets.
| Land, buildings, cable lines | Cable network | Telephone exchanges | Mobile network equipment | Other equipment | Assets under construction | Total | |
|---|---|---|---|---|---|---|---|
| Balance as at 1 January 2019 | 424,562 | 1,030,001 | 123,842 | 394,657 | 385,229 | 35,670 | 2,393,961 |
| Additions | 0 | 0 | 3 | 0 | 1,202 | 80,378 | 81,583 |
| Fixed assets generated in the Company | 0 | 0 | 0 | 0 | 0 | 4,171 | 4,171 |
| Transfer to use | 14,581 | 29,374 | 4,270 | 8,779 | 26,103 | -83,107 | 0 |
| Disposals | -992 | -6 | -17,341 | -12,042 | -26,547 | 0 | -56,928 |
| Other transfers* | 0 | -52 | 0 | 0 | 100 | -42 | |
| Balance as at 31 December 2019 | 438,151 | 1,059,317 | 110,774 | 391,394 | 385,997 | 37,112 | 2,422,745 |
| Balance as at 1 January 2019 | 173,923 | 849,268 | 112,452 | 365,654 | 315,768 | 0 | 1,817,065 | |
|---|---|---|---|---|---|---|---|---|
| Additions | 0 | 0 | 0 | 6 | 69 | 0 | 75 | |
| Disposals | -145 | -1 | -17,323 | -11,993 | -22,956 | 0 | -52,418 | |
| Other transfers* | 0 | -20 | 0 | -70 | -9 | |||
| Depreciation | 12,526 | 18,915 | 4,734 | 9,645 | 28,095 | 0 | 73,915 | |
| Balance as at 31 December 2019 | 186,304 | 868,180 | 99,863 | 363,312 | 320,969 | 0 | 1,838,628 |
| Balance as at 1 January 2019 | 250,639 | 180,733 | 11,390 | 29,003 | 69,461 | 35,670 | 576,896 |
|---|---|---|---|---|---|---|---|
| Balance as at 31 December 2019 | 251,847 | 191,137 | 10,911 | 28,082 | 65,028 | 37,112 | 584,117 |
*Other transfers include transfers between intangible assets and property, plant and equipment and transfers among groups of assets.
The Company and the Group have unlimited title on property, plant and equipment, which are free of encumbrances.
Of total assets, Telekom Slovenije leased out assets in the (carrying) amount:
The Group and the Company have concluded lease contracts for various assets, such as base stations, premises, lines, vehicles and other. Typically, the term of lease contracts is 10–15 years.
| In EUR thousand | Base stations - easement compensation and lease | Technological premises - easement and lease | Lease of business premises and land | Vehicles | Lease of lines | Other | Total | |
|---|---|---|---|---|---|---|---|---|
| Cost | Balance as at 1 January 2020 | 52,656 | 7,493 | 8,236 | 2,541 | 18,492 | 2,401 | 91,819 |
| Contract modifications | 1,583 | 445 | 403 | -167 | -40 | 972 | 2,321 | |
| Transfer to use - new contracts | 6,282 | 690 | 614 | 755 | 1,022 | 253 | 9,616 | |
| Disposals | -217 | -207 | -376 | -585 | -648 | -464 | -2,497 | |
| Other transfers | 0 | 0 | 0 | 43 | 0 | 671 | 10 | |
| Balance as at 31 December 2020 | 60,304 | 8,421 | 8,877 | 2,587 | 18,826 | 2,354 | 101,369 |
| In EUR thousand | Base stations - easement compensation and lease | Technological premises - easement and lease | Lease of business premises and land | Vehicles | Lease of lines | Other | Total |
|---|---|---|---|---|---|---|---|
| Balance as at 1 January 2020 | 6,999 | 863 | 1,592 | 925 | 1,568 | 572 | 12,519 |
| Contract modifications | 0 | 0 | 16 | -68 | 0 | -297 | -349 |
| Disposals | -83 | -35 | -58 | -535 | -121 | -464 | -1,296 |
| Depreciation | 7,356 | 937 | 1,587 | 846 | 1,592 | 520 | 12,838 |
| Other transfers | 0 | 0 | -14 | 171 | 422 | 0 | 237 |
| Balance as at 31 December 2020 | 14,272 | 1,765 | 3,123 | 1,185 | 3,053 | 551 | 23,949 |
| In EUR thousand | Base stations - easement compensation and lease | Technological premises - easement and lease | Lease of business premises and land | Vehicles | Lease of lines | Other | Total |
|---|---|---|---|---|---|---|---|
| Balance as at 1 January 2020 | 45,657 | 6,630 | 6,644 | 1,616 | 16,924 | 1,829 | 79,300 |
| Balance as at 31 December 2020 | 46,032 | 6,656 | 5,754 | 1,402 | 15,773 | 1,803 | 77,420 |
| In EUR thousand | Base stations – easement and lease | Technological premises – easement and lease | Lease of business premises and land | Vehicles | Lease of lines | Other | Total | |
|---|---|---|---|---|---|---|---|---|
| Cost | Balance as at 1 January 2019 | 46,055 | 5,287 | 5,560 | 2,674 | 16,137 | 2,700 | 78,413 |
| Base stations – easement and lease | Technological premises – easement and lease | Lease of business premises and land | Vehicles | Lease of lines | Other | Total | |||
|---|---|---|---|---|---|---|---|---|---|
| Cost | |||||||||
| Balance as at 1 January 2020 | 46,491 | 6,900 | 3,250 | 2,080 | 38,335 | 333 | 97,389 | ||
| Contract modifications | 1,501 | 694 | 273 | -17 | 159 | 446 | 3,056 | ||
| Transfer to use - new contracts | 6,282 | 401 | 614 | 724 | 1,022 | 909 | 9,134 | ||
| Disposals | -193 | -171 | -253 | -435 | -230 | -209 | -1,491 | ||
| Balance as at 31 December 2020 | 54,081 | 7,824 | 3,884 | 2,352 | 39,285 | 661 | 108,088 |
| Balance as at 1 January 2020 | 5,474 | 728 | 576 | 767 | 3,226 | 217 | 10,987 | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Disposals | -71 | -21 | -28 | -423 | -79 | -209 | -830 | ||||
| Depreciation | 5,805 | 784 | 580 | 711 | 3,396 | 148 | 11,424 | ||||
| Balance as at 31 December 2020 | 11,208 | 1,491 | 1,128 | 1,055 | 6,543 | 156 | 21,581 |
| Balance as at 1 January 2020 | 41,017 | 6,172 | 2,674 | 1,314 | 35,108 | 117 | 86,402 | |
|---|---|---|---|---|---|---|---|---|
| Balance as at 31 December 2020 | 42,872 | 6,333 | 2,756 | 1,298 | 32,742 | 505 | 86,506 |
| Base stations – easement and lease | Technological premises – easement and lease | Lease of business premises and land | Vehicles | Lease of lines | Other | Total | |
|---|---|---|---|---|---|---|---|
| Cost | |||||||
| Balance as at 1 January 2019 | 39,942 | 4,905 | 2,187 | 2,280 | 33,436 | 163 | 82,913 |
| Additions - contract modifications | 775 | 136 | 1,087 | 72 | 661 | 106 | 2,242 |
| Transfer to use - new contracts | 6,473 | 1,925 | 0 | 875 | 117 | 701 | 3,672 |
| Disposals - contract modifications | -387 | -3 | -24 | -259 | -40 | -1 | -714 |
| Disposals | -311 | -630 | -100 | -245 | -4 | -723 | |
| Balance as at 31 December 2019 | 46,492 | 6,900 | 3,250 | 2,080 | 38,334 | 334 | 97,390 |
| Balance as at 1 January 2019 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|---|---|---|---|---|---|---|---|
| Disposals | -116 | -260 | -80 | -3 | -1 | -226 | |
| Depreciation | 5,590 | 754 | 576 | 847 | 3,229 | 218 | 11,214 |
| Balance as at 31 December 2019 | 5,474 | 728 | 576 | 767 | 3,226 | 217 | 10,988 |
| Balance as at 1 January 2019 | 39,942 | 4,905 | 2,187 | 2,280 | 33,436 | 163 | 82,913 | |
|---|---|---|---|---|---|---|---|---|
| Balance as at 31 December 2019 | 41,018 | 6,172 | 2,674 | 1,313 | 35,108 | 117 | 86,402 |
| Telekom Slovenije Group | Telekom Slovenije |
|---|---|
| in EUR 000 | |
| 31 Dec 2020 | |
| 31 Dec 2019 | |
| Depreciation charge of right-of-use assets |
Telekom Slovenije holds a 100% interest in the following subsidiaries which as at 31 December 2020 amounts to:
| In EUR thousand | 31 Dec 2019 | Additions | Disposals | Impairment | 31 Dec 2020 |
|---|---|---|---|---|---|
| GVO | 5,758 | 0 | 0 | 0 | 5,758 |
| Avtenta | 1,323 | 0 | 0 | 0 | 1,323 |
| TSmedia | 2,485 | 0 | 0 | 0 | 2,485 |
| IPKO | 20,730 | 0 | 0 | 0 | 20,730 |
| Soline | 147 | 0 | 0 | 0 | 147 |
| SIOL Zagreb | 501 | 0 | 0 | 0 | 501 |
| SIOL Podgorica | 2,620 | 0 | 0 | 0 | 2,620 |
| SIOL Sarajevo | 1,710 | 0 | 0 | 0 | 1,710 |
| SIOL Skopje | 1,005 | 0 | 0 | 0 | 1,005 |
| SIOL Beograd | 100 | 0 | 0 | 0 | 100 |
| TSinpo | 419 | 0 | 0 | 0 | 419 |
| Institution Ustanova Srčni sklad | 3 | 0 | 0 | 0 | 3 |
| SIOL Prishtina | 200 | 0 | 0 | 0 | 200 |
| Investments in subsidiaries | 37,001 | 0 | 0 | 0 | 37,001 |
As at 31 December 2019, investment in Planet TV was of no value and was sold in 2020. Details in chapter 5.
| Telekom Slovenije Group | Telekom Slovenije | In EUR thousand | 31 Dec 2020 | 31 Dec 2019 | 31 Dec 2020 | 31 Dec 2019 |
|---|---|---|---|---|---|---|
| Investments in other shares and interests | 2,965 | 4,681 | 2,963 | 4,679 | ||
| Loans to companies | 0 | 0 | 60,885 | 85,573 | ||
| - of which to companies in the Group | 0 | 0 | 60,885 | 85,573 | ||
| Loans to employees | 103 | 172 | 103 | 169 | ||
| Other non-current financial assets | 0 | 7 | 0 | 0 | ||
| Total non-current investments | 3,068 | 4,860 | 63,951 | 90,421 |
Other investments in shares and interests are classified as investments measured at fair value through other comprehensive income. Of the total EUR 2,965 thousand recorded by the Telekom Slovenije Group and of the total EUR 2,963 thousand recorded by Telekom Slovenije, EUR 1,854 thousand (2019: EUR 2,062 thousand) relates to investments which are listed on the stock exchange. Investments are not pledged as collateral and are free of encumbrances.
For 2020, the Company checked for indications of impairment of the more significant investments, namely the 11.7% interest in the IECD - Poslovna šola Bled, d.o.o. and the 11.94% ownership interest in ABCITI, Družba za investiranje, d.o.o. The valuations were conducted by a certified business appraiser. Based on the obtained valuation, the Group impaired the investment in IECD – Poslovna šola Bled, d.o.o in the amount of EUR 171 thousand and the investment in ABCITI, Družba za investiranje, d.o.o. in the amount of EUR 1,337 thousand. The effects of impairments are recorded in the statement of other comprehensive income as fair value reserve for financial instruments (Note 29).
| Telekom Slovenije Group | Telekom Slovenije | In EUR thousand | 31 Dec 2020 | 31 Dec 2019 | 31 Dec 2020 | 31 Dec 2019 |
|---|---|---|---|---|---|---|
| Short-term loans | 0 | 0 | 17,324 | 10,154 | ||
| * of which to companies in the Group | 0 | 0 | 17,324 | 10,154 | ||
| Loans to employees | 61 | 776 | 172 | |||
| Bank deposits | 451 | 602 | 0 | 0 | ||
| Total current investments | 512 | 679 | 17,385 | 10,226 |
| Telekom Slovenije Group | Telekom Slovenije | In EUR thousand | 31 Dec 2020 | 31 Dec 2019 | 31 Dec 2020 | 31 Dec 2019 |
|---|---|---|---|---|---|---|
| Non-current loans granted | 103 | 172 | 60,988 | 85,742 | ||
| Loans granted | 0 | 0 | 60,885 | 85,573 | ||
| Loans to employees | 103 | 172 | 103 | 169 | ||
| Current loans granted | 61 | 77 | 17,385 | 10,226 | ||
| Non-current loan portion falling due in 12 months - loans granted | 0 | 0 | 15,241 | 6,771 | ||
| Non-current loan portion falling due in 12 months - loans to employees | 61 | 76 | 72 |
| In EUR thousand | 31 Dec 2020 | 31 Dec 2019 | 31 Dec 2020 | 31 Dec 2019 |
|---|---|---|---|---|
| Non-current contract assets | 2,668 | 3,646 | 2,337 | 3,280 |
Non-current contract assets arise if a group transfers goods or services to a customer before the consideration is paid. Buyers of telecommunication goods and services may commit to a certain subscription period (e.g. 24 months) in order to become eligible for discounts on goods and/or services. Due to the allocation of transaction price to the performance obligation of revenue based on the relative standalone price, the revenue from the sale of goods is recognised sooner, giving rise to contract assets. Non-current contract assets are impaired in the event that the buyer terminates the contract before expiry. In this case, the contract asset is de-recognised, and impairment is recognised. In 2020, the Group impaired contract assets in the amount of EUR 795 thousand (EUR 1.011 thousand in 2019), while Telekom Slovenije impaired contract assets in the amount of EUR 990 thousand (EUR 990 thousand in 2019).
| In EUR thousand | 31 Dec 2020 | 31 Dec 2019 | 31 Dec 2020 | 31 Dec 2019 |
|---|---|---|---|---|
| Prepaid lease | 194 | 234 | 194 | 234 |
| Other non-current assets | 1,244 | 1,108 | 1,442 | 1,013 |
| Programme rights (TV content, TV channels) | 0 | 6,261 | 0 | 0 |
| Total deferred costs | 1,438 | 7,603 | 1,636 | 1,247 |
Prepaid lease payments comprise the costs of leasing line capacities. Other non-current assets comprise warranties and similar expenses. Programme rights (TV content, TV channels) relate to the subsidiary Planet TV, which was sold in 2020.
| In EUR thousand | Land | Buildings | Total | Land | Buildings | Total | |
|---|---|---|---|---|---|---|---|
| Cost | Balance as at 1 January 2020 | 1,893 | 1,914 | 3,807 | 4,865 | 1,914 | 6,779 |
| Additions | 31 | 235 | 266 | 31 | 235 | 266 | |
| Balance as at 31 December 2020 | 1,924 | 2,149 | 4,073 | 4,896 | 2,149 | 7,045 |
| Impairment | Balance as at 1 January 2020 | 1,689 | 1,088 | 2,777 | 1,689 | 1,088 | 2,777 |
|---|---|---|---|---|---|---|---|
| Additions | 0 | 2 | 2 | 0 | 2 | 2 | |
| Depreciation | 0 | 36 | 36 | 0 | 36 | 36 | |
| Balance as at 31 December 2020 | 1,689 | 1,126 | 2,815 | 1,689 | 1,126 | 2,815 |
| Carrying amount | Balance as at 1 January 2020 | 204 | 826 | 1,030 | 3,176 | 826 | 4,002 |
|---|---|---|---|---|---|---|---|
| Balance as at 31 December 2020 | 235 | 1,023 | 1,258 | 3,207 | 1,023 | 4,230 |
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 39.
As at 31 December 2020, the Telekom Group’s investment property disclosed land, landscaping and the building of the Tisa Hotel on Pohorje in the amount of EUR 1,016 thousand, as well as land and the building Rakovnik in the amount of EUR 185 thousand and apartments in the amount of EUR 57 thousand. Telekom Slovenije additionally discloses land and building at the Sečovlje saltpans amounting to EUR 2,972 thousand and holds investment property in the total amount of EUR 4,230 thousand.
Assets at 31 December 2020, assets held for sale include 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 scheduled for the next 12 months.
| In EUR thousand | Telekom Slovenije Group | Telekom Slovenije |
|---|---|---|
| Balance as at 1 January 2019 | 526 | 526 |
| Additions | 26 | 26 |
| Sale | -52 | -52 |
| Balance as at 31 December 2019 | 500 | 500 |
| Additions | 12 | 12 |
| Sale | -12 | -12 |
| Transfer to property, plant and equipment | -286 | -286 |
| Balance as at 31 December 2020 | 214 | 214 |
In 2020, the Company and the Group, when assessing the adequacy of the classification of assets, transferred assets in the amount of EUR 286 thousand from assets held for sale to investment property, namely the Rakovnik land and building as well as the apartments. The Group thus generated EUR 2.5 thousand in gains on sale, which were recognised in the statement of profit or loss under Gains on disposal of property, plant and equipment (Note 8).
| Telekom Slovenije Group | Telekom Slovenije | |||
|---|---|---|---|---|
| In EUR thousand | 31 Dec 2020 | 31 Dec 2019 | 31 Dec 2020 | 31 Dec 2019 |
| Material | 13,663 | 11,139 | 11,362 | 9,827 |
| Products | 764 | 831 | 0 | 0 |
| Merchandise | 11,748 | 12,650 | 10,449 | 10,752 |
| Total inventories | 26,175 | 24,620 | 21,811 | 20,579 |
Material was valued at net realisable value at EUR 1.754 thousand (2019: EUR 1,695 thousand) and merchandise at EUR 255 thousand (2019: EUR 290 thousand). Other inventories are valued at their initial cost as the cost of these inventories was lower than their net realisable value. The Group’s inventories include no inventories that are pledged for its liabilities.
In 2020, the Telekom Slovenije Group impaired and wrote off EUR 1,231 thousand of inventories (2019: EUR 1,991 thousand) and during the inventory count determined deficits in the amount of EUR 63 thousand (EUR 40 thousand in 2019) and EUR 47 thousand of surplus in stock (EUR 18 thousand in 2019).
In 2020, Telekom Slovenije wrote off or impaired EUR 1,000 thousand worth of inventories (2019: EUR 1,063 thousand). During the inventory count in 2020, the Company found a deficit of EUR 19 thousand (EUR 8 thousand in 2019) and EUR 5 thousand of surplus (EUR 1 thousand in 2019).
Under other receivables, the Group and Company disclose receivables from the sale of goods with maturity of over one year. Impairments of trade receivables are measured in the amount of life time expected credit losses. Ageing analysis of receivables, loss rate and lifetime expected credit losses are presented in Note 45.
| TELEKOM SLOVENIJE GROUP | 31 Dec 2020 | 31 Dec 2019 | ||
|---|---|---|---|---|
| In EUR thousand | Gross amount | Impairment | Net amount | Net amount |
| Other receivables | 17,167 | -86 | 17,081 | 24,405 |
| Current trade receivables | 31 Dec 2020 | 31 Dec 2019 | ||
|---|---|---|---|---|
| In EUR thousand | Gross amount | Impairment | Net amount | Net amount |
| Trade receivables | 133,130 | -11,935 | 121,195 | 126,917 |
| Trade receivables due from foreign operators | 18,818 | -1,893 | 16,925 | 14,610 |
| Trade receivables due from domestic operators | 20,697 | -2,046 | 18,651 | 4,167 |
| Total trade receivables | 172,645 | -15,874 | 156,771 | 145,694 |
| Advance payments made | 646 | 0 | 646 | 1,103 |
| VAT and other tax receivables | 4,232 | 0 | 4,232 | 5,112 |
| Income tax assets | 94 | 0 | 94 | 684 |
| Other receivables | 1,201 | -81,193 | 966 | |
| Total other receivables | 6,173 | -8 | 6,165 | 7,865 |
| Total trade and other receivables | 178,818 | -15,882 | 162,936 | 153,559 |
| In EUR thousand | 31 Dec 2020 | 31 Dec 2019 |
|---|---|---|
| Balance as at 1 January | -18,344 | -21,177 |
| Changes in Group | 910 | |
| Impairments | -6,520 | -6,287 |
| Reversal of impairments | 4,502 | 4,718 |
| Write-offs | 4,303 | 4,402 |
| Balance as at 31 December | -15,968 | -18,344 |
The decrease in the balance of impairment of receivables results from the change in the structure of receivables in favour of receivables not past due. More details on the structure of receivables by age in Note 45.
| In EUR thousand | Gross amount | Impairment | Net amount | Net amount |
|---|---|---|---|---|
| Other receivables | 17,167 | -86 | 17,081 | 24,405 |
| In EUR thousand | Gross amount | Impairment | Net amount | Net amount |
|---|---|---|---|---|
| Trade receivables | 123,351 | -8,486 | 114,865 | 121,386 |
| Receivables due from foreign operators | 19,577 | -1,897 | 17,680 | 15,005 |
| Receivables due from domestic operators | 23,206 | -2,063 | 21,143 | 4,169 |
| Total trade receivables | 166,134 | -12,446 | 153,688 | 140,560 |
| Paid advances and warranties | 460 | 0 | 460 | 285 |
| VAT and other tax receivables | 3,398 | 0 | 3,398 | 4,066 |
| Other receivables | 821 | 0 | 821 | 733 |
| Total other receivables | 4,679 | 0 | 4,679 | 5,084 |
| Total trade and other receivables | 170,813 | -12,446 | 158,367 | 145,644 |
| In EUR thousand | 2020 | 2019 |
|---|---|---|
| Balance as at 1 January | -11,985 | -14,814 |
| Impairments | -6,090 | -5,738 |
| Reversal of impairments | 3,975 | 4,269 |
| Write-offs | 1,568 | 4,298 |
| Balance as at 31 December | -12,532 | -11,985 |
The method of forming impairments of receivables remains the same in 2020. The decrease in the balance of impairment of receivables results from the change in the structure of receivables in favour of receivables not past due. More details on the structure of receivables by age in Note 45.
| Telekom Slovenije Group | 31 Dec 2020 | 31 Dec 2019 | Telekom Slovenije | 31 Dec 2020 | 31 Dec 2019 |
|---|---|---|---|---|---|
| Current contract assets | 12,652 | 14,896 | 12,492 | 14,849 | |
| Accrued revenue and deferred costs – roaming | 10,764 | 7,745 | 10,677 | 7,745 | |
| Accrued revenue for services rendered and goods supplied (no invoice as of yet) | 111 | 139 | 140 | 219 | |
| Total current contract assets | 23,527 | 22,780 | 23,309 | 22,813 |
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 good, where customers commit to a 12-month contract period and the short-term part of non-current contract assets.
| Telekom Slovenije Group | 31 Dec 2020 | 31 Dec 2019 | Telekom Slovenije | 31 Dec 2020 | 31 Dec 2019 |
|---|---|---|---|---|---|
| Deferred costs | 3,243 | 17,585 | 3,747 | 14,548 | |
| Other | 1,007 | 1,053 | 993 | 961 | |
| Total deferred costs | 4,250 | 18,638 | 4,740 | 15,509 |
Current deferred costs include mostly deferred costs in connection with the calculation of international services.
| Telekom Slovenije Group | 31 Dec 2020 | 31 Dec 2019 | Telekom Slovenije | 31 Dec 2020 | 31 Dec 2019 |
|---|---|---|---|---|---|
| Cash on hand and bank balances | 8,160 | 13,212 | 2,086 | 1,153 | |
| Short-term bank deposits with maturity of up to three months | 7 | 7 | 0 | 0 | |
| Total cash and cash equivalents | 8,167 | 13,219 | 2,086 | 1,153 |
| In EUR thousand | 31 Dec 2020 | 31 Dec 2019 | 31 Dec 2020 | 31 Dec 2019 |
|---|---|---|---|---|
| EQUITY AND RESERVES | 272,721 | 272,721 | 272,721 | 272,721 |
| Share premium | 181,489 | 181,488 | 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 | 3,671 | 3,671 | 3,671 | 3,671 |
| Treasury shares and interests | -3,671 | -3,671 | -3,671 | -3,671 |
| Statutory reserves | 54,854 | 54,854 | 54,544 | 54,544 |
| Other profit reserves | 131 | 30 | 0 | |
| Retained earnings | 33,305 | 31,589 | 50,359 | 48,886 |
| Retained earnings from previous periods | 8,440 | 30,648 | 26,185 | 48,301 |
| Profit or loss for the period | 24,865 | 941 | 24,174 | 585 |
| Fair value reserve for financial instruments | -219 | 1,171 | -219 | 1,171 |
| Fair value reserve for hedging instruments in net amount | -278 | -507 | -278 | -507 |
| Revaluation for actuarial deficits and surpluses | -2,988 | -2,347 | -2,733 | -2,069 |
| Translation reserves | -25 | -6 | 0 | |
| Total equity and reserves | 590,484 | 590,588 | 605,784 | 606,136 |
Authorised, issued and fully paid-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 has the same share and attributable amount in the share capital.
31 Dec 2020
| 31 Dec 2019 | ||||
| Shareholder | Number of shares | Interest in % | Number of shares | Interest in % |
| Republic of Slovenia | 4,087,569 | 62.54 | 4,087,569 | 62.54 |
| Slovenian Sovereign Holding (Slovenski državni holding d. d.) (SSH – SDH) | 277,839 | 4.25 | 277,839 | 4.25 |
| Individual shareholders (domestic and foreign) | 897,734 | 13.74 | 865,862 | 13.25 |
| Other domestic legal entities | 254,874 | 3.90 | 241,336 | 3.69 |
| Kapitalska družba d. d. | 365,175 | 5.59 | 365,175 | 5.59 |
| Financial companies and funds | 205,218 | 3.14 | 258,652 | 3.96 |
| Foreign legal entities | 417,069 | 6.38 | 409,045 | 6.26 |
| Treasury shares | 30,000 | 0.46 | 30,000 | 0.46 |
| Total | 6,535,478 | 100.00 | 6,535,478 | 100.00 |
The balances and changes in equity are presented in the statement of changes in equity. There were no changes in the number of issued shares in 2020.
The share premium may be used under the conditions and for the purpose set by the law. As at 31 December 2020, share premium of Telekom Slovenija amounted to EUR 180,956 thousand, of which EUR 126,135 thousand of share premium arises from the Company’s ownership measurement process. Share premium in the amount of EUR 54.821 thousand in substance represents surpluses from revaluation. Share premium has not changed in 2020.
Legal reserves are formed in such amount that the sum of legal reserves and the share premium equals 20% of share capital.
In accordance with the Companies Act, the share premium and legal reserves can in their excess amount be used to increase share capital from a company’s assets and to cover losses brought forward, if profit reserves are not simultaneously used for pay-out of profits to shareholders.
As at 31 December 2020, the parent company had 30,000 treasury shares representing 0.46% of equity. The number of treasury shares has not changed since their acquisition in 2003. Treasury shares in the amount of EUR 3,671 thousand are disclosed as equity’s deductible item and at their cost. Reserves for treasury shares are formed in the same amount in compliance with legal requirements.
The Group may acquire treasury shares for the purposes defined in the provisions of Article 247 of the Companies Act (ZGD-1).
Statutory reserves are used for forming the treasury share reserve, for covering losses, for share capital increases, and for covering diverse operating and other risks. These reserves can be used in accordance with the Articles of Association, namely for the share capital increase, for the coverage of current and brought forward loss if this loss cannot be settled by means of any other sources, and for creating reserve for treasury shares and if no other funds are available.
Retained earnings include gains brought forward from previous periods and net profit for the period. Based on the resolution adopted by the General Meeting of Shareholders on 5 June 2020, the accumulated profit for 2019 in the amount of EUR 30,165 thousand was used for dividend pay-out in the amount of EUR 22,769 thousand, i.e. EUR 3.50 gross per share (in 2019, dividends for the year 2018 were paid out in the amount of EUR 29,275 thousand or EUR 4.50 per share). The residual part in the amount of EUR 7,395 thousand is brought forward to the next year.
Dividends were paid to the shareholders registered in the share register as stockholders on the cut-off date of 18 June 2020, or to other parties entitled to dividends. Dividends were paid out on 19 June 2020.
| In EUR thousand | Net profit/loss for 2020 | Retained net profit/loss | Decrease in non-current deferred development costs | Total |
|---|---|---|---|---|
| 24,173,581.24 | 26,184,504.15 | -15,377,034.91 | 34,981,050.48 |
| In EUR thousand | Amount per dividend pay-out | Dividends per ordinary share |
|---|---|---|
| 26,021,912.00 | 4.00 |
Fair value reserve for financial instruments includes the change in fair value of investments in equity instruments, measured at fair value through other comprehensive income, and the change in fair value of hedging financial instruments. Fair value reserve for financial instruments is shown in the statement of other comprehensive income. For 2020, the Company checked for indications of impairment of the more significant investments, namely the interests in IECD - Poslovna šola Bled, d.o.o. and ABCITI, Družba za investiranje, d.o.o. The effects of appraisals are disclosed in Note 19.
Reserve for actuarial remeasurements of defined benefit obligations 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 remeasurements of defined benefit obligations are shown in the statement of changes in equity.
| Telekom Slovenije Group | Telekom Slovenije | In EUR thousand | 31 Dec 2020 | 31 Dec 2019 | 31 Dec 2020 | 31 Dec 2019 |
|---|---|---|---|---|---|---|
| Non-current contract liabilities | 451 | 528 | 318 | 108 | ||
| Other non-current contract liabilities | 617 | 581 | 986 | 2 | ||
| Government grants received and free-of-charge takeover of property, plant and equipment | 596 | 529 | 459 | 524 | ||
| Non-current deferred revenues - lease of base stations and lines | 13,887 | 13,583 | 13,886 | 13,583 | ||
| Contract liability – international services calculation | 221 | 1,470 | 213 | 1,378 | ||
| Total non-current contract liabilities | 15,772 | 16,691 | 14,974 | 15,655 |
Non-current contract liabilities represent the Group’s obligation to either transfer the goods or services to the customer in the future or to refund the consideration received. In both cases, the obligation is measured as the amount of the consideration received from the customer.
Changes in provisions of the Telekom Slovenije Group in 2020
| EUR thousand | 31.12.2019 | Increase on business combinations | Utilisation | Reversal | Measurement | Change in discount rate | 31.12.2020 |
|---|---|---|---|---|---|---|---|
| Provisions for probable liabilities resulting from lawsuits | 4,666 | 0 | 0 | -4,536 | 119 | 3 | 251 |
| Provisions for retirement benefits | 10,920 | -66 | -14 | -182 | 1,283 | 111 | 12,052 |
| Provisions for jubilee benefits | 2,298 | -22 | -140 | -190 | 126 | 2 | 2,351 |
| 3,868 | 0 | -13 | -5119 | 263 | 4,232 | |
|---|---|---|---|---|---|---|
| Other provisions | 1,438 | 0-649-47 | 505 | 0 | 1,248 | |
| Provisions for restructuring | 103 | 0 | -103 | 0 | 2730 | 273 |
| Total provisions | 23,293 | -88 | -919 | -4,771 | 2,389502 | 20,407 |
| EUR thousand | 31.12.2018 | Increase on business combinations | Utilisation | Reversal | Measurement | Change in discount rate | 31.12.2019 |
|---|---|---|---|---|---|---|---|
| Provisions for probable liabilities resulting from lawsuits | 4,674 | 0 | -7 | -16 | 150 | 4,666 | |
| Provisions for retirement benefits | 10,100 | 0 | -49 | -307 | 932 | 244 | 10,920 |
| Provisions for jubilee benefits | 2,126 | 0 | -171 | -4321 | 262 | 2,298 | |
| Provisions for estimated costs of removal of receiving-transmitting stations | 3,411 | 0 | -300 | 674 | 20 | 3,868 | |
| Other provisions | 1,352 | 0 | -168 | -271 | 525 | 0 | 1,438 |
| Provisions for restructuring | 113 | 0 | -113 | 0 | 103 | 0 | |
| Total provisions | 21,776 | 0 | -538 | -598 | 1,963 | 690 | 23,293 |
| EUR thousand | 31.12.2019 | Utilisation | Reversal | Measurement | Changes in discount rates | 31.12.2020 |
|---|---|---|---|---|---|---|
| Provisions for probable liabilities resulting from lawsuits | 4,500 | 0 | -4,500 | 0 | 0 | 0 |
| Provisions for retirement benefits | 8,916 | 0 | 1,044 | 901 | 0 | 10,050 |
| Provisions for jubilee benefits | 1,847 | -104 | 0 | 47 | 107 | 1,897 |
| Provisions for estimated costs of removal of receiving-transmitting stations | 3,868 | -13 | -5119 | 263 | 4,232 | |
| Other provisions | 7 | -14 | 0 | 12 | 0 | 5 |
| Provisions for restructuring | 0 | 0 | 0 | 0 | 0 | |
| Total provisions | 19,138 | -131 | -4,505 | 1,222 | 460 | 16,184 |
Provisions for lawsuits are created on the basis of their estimated outcome, conducted with a high level of prudence. Maturity date of the liability cannot be determined. Lawsuits in relation to which provisions were formed are at various stages. 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.
In 2020, the Telekom Slovenije Group and Telekom Slovenije did not utilise or establish significant provisions for probable liabilities from lawsuits. In 2020, Telekom Slovenije reversed provisions formed as at 31 December 2019 in their entirety.
Provisions formed on the basis of the estimate of the management and obtained legal opinions in the Telekom Slovenije Group amount to EUR 251 thousand, while Telekom Slovenije has no provisions for lawsuits.
Provisions for retirement and jubilee benefits are based on actuarial calculations.
| Telekom Slovenije Group | Telekom Slovenije | |||
|---|---|---|---|---|
| in EUR thousand | ||||
| Provisions for jubilee benefits | Provisions for retirement benefits | Total | ||
| Provisions as at 1 Jan 2019 | 2,156 | 10,292 | 12,448 | |
| Provisions as at 1 Jan 2019 | 1,728 | 8,655 | 10,383 | |
| Interest costs | 502 | 244 | 294 | |
| Interest costs | 211 | 252 | ||
| Current service costs | 138 | 441 | 579 | |
| Current service costs | 103 | 369 | 472 | |
| Actuarial gains (+) and losses (-) | 125 | -8 | 117 | |
| Actuarial gains (+) and losses (-) | 111 | -303 | -192 | |
| Payments during the year | -171 | -49 | -220 | |
| Payments during the year | -136 | -16 | -152 | |
| Provisions as at 31 Dec 2019 | 2,298 | 10,920 | 13,218 | |
| Provisions as at 31 Dec 2019 | 1,847 | 8,916 | 10,763 | |
| Interest costs | 251 | 112 | 137 | |
| Interest costs | 199 | 0 | 109 | |
| Current service costs | 155 | 476 | 631 | |
| Current service costs | 114 | 382 | 496 | |
| Past service costs | -2 | -15 | -17 | |
| Past service costs | 0 | 0 | 0 | |
| Actuarial gains (+) and losses (-) | 386 | 38 | 676 | |
| Actuarial gains (+) and losses (-) | 21 | 662 | 683 | |
| - due to changes in financial assumptions | 111 | 579 | 690 | |
| - due to experience-based adjustments | -73 | 59 | -14 | |
| - due to experience-based adjustments | -68 | 23 | -45 | |
| Changes in the Group | -22 | -66 | -880 | |
| Payments during the year | -141 | -13 | ||
| Payments during the year | -154 | -104 | 0 | |
| Provisions as at 31 Dec 2020 | 2,351 | 12,052 | 14,403 | |
| Provisions as at 31 Dec 2020 | 1,897 | 10,050 | 11,947 |
Telekom Slovenije, d. d. and the Telekom Slovenije Group are exposed to risks arising from long-term employee benefits, especially based on the following:
The present values of long-term employee benefits are exposed to the following risks:
The following actuarial assumptions were considered in the calculation of provisions for jubilee benefits and post-employment benefits:
financial assumptions:
| Long-term salary growth at the company | from 2021 on | from 2023 on |
|---|---|---|
| Telekom Slovenije | 0.76% | |
| GVO | 1.24% | |
| Avtenta | 1.50% |
TSmedia 1.50%
Soline 0.45% 2.00%
TSinpo 2.80%
the chosen discount interest rate amounts to 0.44% p.a., which corresponds to the 10-year yield on high-quality corporate bonds from Euro area issuers as at the end of December 2020 for the companies Telekom Slovenije, Soline, GVO and TSinpo, and 0.72% p.a., which corresponds to the 15-year yield on high-quality corporate bonds from Euro area issuers as at the end of December 2020 for the companies Avtenta and TSmedia.
| Assumption | Deviation | Description | Total |
|---|---|---|---|
| Retirement benefits | Central scenario 0.00% | balance | 14,403 |
| -0.50% | balance | 15,300 | |
| (difference) | 898 | ||
| 0.50% | balance | 13,582 | |
| (difference) | -821 | ||
| Jubilee benefits | Central scenario 0.00% | balance | 12,052 |
| -0.50% | balance | 12,843 | |
| (difference) | 791 | ||
| 0.50% | balance | 11,331 | |
| (difference) | -722 | ||
| Total | 2,351 |
| Assumption | Deviation | Description | Total |
|---|---|---|---|
| Retirement benefits | Central scenario 0.00% | balance | 11,947 |
| -0.50% | balance | 12,695 | |
| (difference) | 748 | ||
| 0.50% | balance | 11,262 | |
| (difference) | -685 | ||
| Jubilee benefits | Central scenario 0.00% | balance | 10,050 |
| -0.50% | balance | 10,713 | |
| (difference) | 663 | ||
| 0.50% | balance | 9,443 | |
| (difference) | -606 | ||
| Total | 1,897 |
Provisions were formed in the amount of the estimated cost of removal discounted at the discount rate of 0.72% p.a. (2019: 1.34% p.a.), which corresponds to the 15-year yield on high-quality corporate bonds from Euro area issuers as at the end of December 2020.
In 2020, the Group and the Company utilised provisions for restructuring in the amount of EUR 103 thousand, which were created in the previous reporting period. The Telekom Slovenije Group formed additional provisions in the amount of EUR 273 thousand. Telekom Slovenije did not establish any new provisions for restructuring.
Other payables of the Telekom Slovenije Group include the frequency fee in Kosovo in the amount of EUR 7,124 thousand.
| In EUR thousand | 31 Dec 2020 | 31 Dec 2019 | 31 Dec 2020 | 31 Dec 2019 |
|---|---|---|---|---|
| Contract liabilities for programme rights | 31,074 | 4,425 | 20,302 | 1,500 |
| Other | 7,822 | 36,044 | 5,549 | 9,222 |
| Total other payables | 38,896 | 40,469 | 20,856 | 10,722 |
This note provides measurement about the contractual terms of borrowings. For more inmeasurement relating to exposure to interest rate risk and foreign currency risk, please refer to Note 45.
| In EUR thousand | 31 Dec 2020 | 31 Dec 2019 | 31 Dec 2020 | 31 Dec 2019 | |
|---|---|---|---|---|---|
| Borrowings | Borrowings from banks | 214,801 | 245,340 | 214,801 | 245,310 |
| - current portion of non-current borrowings | -30,580 | -30,538 | -30,580 | -30,508 | |
| - non-current portion of borrowings | 184,221 | 214,802 | 184,221 | 214,802 | |
| Total non-current portion | 184,221 | 214,802 | 184,221 | 214,802 | |
| Current borrowings | Borrowings from banks – revolving loan | 1,500 | 500 | 1,500 | 500 |
| Borrowings from companies in the Group | 0 | 0 | 13,000 | 7,000 | |
| Current portion of non-current bank borrowings |
In 2019, the Group and the Company began applying the new IFRS 16 standard on lease, recognising financial liabilities from lease.
| Telekom Slovenije Group | Telekom Slovenije | In EUR thousand | 31 Dec 2020 | 31 Dec 2019 | 31 Dec 2020 | 31 Dec 2019 |
|---|---|---|---|---|---|---|
| Non-current liabilities from right-of-use assets | 59,092 | 60,068 | 67,093 | 66,351 | ||
| Current liabilities from right-of-use assets | 10,180 | 8,986 | 11,660 | 10,031 | ||
| Total liabilities from right-of-use assets | 69,272 | 69,054 | 78,753 | 76,382 |
Current lease liabilities from lease represent liabilities that are expected to be settled in the next 12 months.
| In EUR thousand | Telekom Slovenije Group | Telekom Slovenije |
|---|---|---|
| Balance as at 1 Jan 2019 | 67,238 | 71,700 |
| Additions | 12,712 | 14,511 |
| Interest | 2,331 | 2,188 |
| Lease payments | -13,227 | -12,017 |
| Balance as at 31 Dec 2019 | 69,054 | 76,382 |
| Additions | 10,038 | 11,484 |
| Interest | 2,348 | 2,352 |
| Lease payments | -12,168 | -11,465 |
| Balance as at 31 Dec 2020 | 69,272 | 78,753 |
Balance as at 31 Dec 2019
| Current lease liabilities | 8,986 | 10,031 |
|---|---|---|
| Non-current lease liabilities | 60,068 | 66,351 |
| Total lease liabilities | 69,054 | 76,382 |
Balance as at 31 Dec 2020
| Current lease liabilities | 10,180 | 11,660 |
|---|---|---|
| Non-current lease liabilities | 59,092 | 67,093 |
| Total lease liabilities | 69,272 | 78,753 |
| Telekom Slovenije Group | Telekom Slovenije | In EUR thousand | 31 Dec 2020 | 31 Dec 2019 | 31 Dec 2020 | 31 Dec 2019 |
|---|---|---|---|---|---|---|
| Bonds | 0 | 99,983 | 0 | 99,983 | ||
| Liabilities for interest rate swap | 246 | 625 | 244 | 625 | ||
| Other | 0 | 33 | 0 | 0 | ||
| Total other non-current financial liabilities | 244 | 100,641 | 244 | 100,608 |
| Telekom Slovenije Group | Telekom Slovenije | In EUR thousand | 31 Dec 2020 | 31 Dec 2019 | 31 Dec 2020 | 31 Dec 2019 |
|---|---|---|---|---|---|---|
| Bonds | 101,078 | 1,053 | 101,078 | 1,053 | ||
| Liabilities for interest rate swap | 98 | 0 | 98 | 0 | ||
| Other | 63 | 171 | 61 | 128 | ||
| Total other current financial liabilities | 101,239 | 1,224 | 101,237 | 1,181 |
In June 2016, Telekom Slovenije issued bonds with the nominal value of EUR 100,000 thousand with fixed annual interest rate of 1.95% and the maturity date of 10 June 2021. The total issue comprises 100,000 denominations of EUR 1,000. Interest is due for payment on an annual basis, while the nominal value falls due in a single amount. The bonds are measured at amortised cost by applying the effective interest rate of 1.994%. In 2020, the total value of the bonds was transferred to current liabilities.
In February 2017, an interest rate swap was concluded with the purpose of interest rate hedging, the fair value of which as at 31 December 2020 equalled EUR 342 thousand (2019: EUR 625 thousand). Due to the immateriality of the amount of the interest rate swap, the Group did not prepare any additional disclosures related to risk management.
| Telekom Slovenije Group | Telekom Slovenije | In EUR thousand | Bonds | Other | Bonds | Other |
|---|---|---|---|---|---|---|
| Balance as at 1 January 2019 | 100,993 | 1,028 | 100,993 | 948 | ||
| Interest paid | -1,950 | -465 | -1,950 | -465 | ||
| Other | 1,993 | 266 | 1,993 | 270 | ||
| Balance as at 31 December 2019 | 101,036 | 829 | 101,036 | 753 | ||
| Interest paid | -1,950 | -444 | -1,950 | -444 | ||
| Other | 1,992 | 201 | 1,992 | 94 | ||
| Balance as at 31 December 2020 | 101,078 | 405 | 101,078 | 403 |
Other relates to non-monetary items, namely accrued interests in the amount of EUR 1,950 thousand (2019: EUR 1,950 thousand), transfers of prepaid expenses, related to the issuing of bonds to finance expenses and change in fair value of derivative financial instruments.
| Telekom Slovenije Group | Telekom Slovenije | In EUR thousand | 31 Dec 2020 | 31 Dec 2019 | 31 Dec 2020 | 31 Dec 2019 |
|---|---|---|---|---|---|---|
| Trade payables | 64,003 | 70,269 | 52,939 | 64,090 | ||
| Liabilities to domestic operators | 1,887 | 2,349 | 7,489 | 2,337 | ||
| Liabilities to foreign operators | 11,161 | 10,028 | 11,335 | 10,280 | ||
| VAT and other tax liabilities | 7,745 | 7,249 | 7,105 | 5,468 | ||
| Liabilities to employees | 8,329 | 8,278 | 6,655 | 6,636 | ||
| Liabilities for advances and warranties | 2,861 | 3,991 | 430 | 495 | ||
| Other liabilities | 23,072 | 11,178 | 23,802 | 10,639 | ||
| Trade and other payables | 119,058 | 113,342 | 109,755 | 99,945 |
Trade payables are non-interest bearing and are generally settled in the agreed period of 8 to 120 days. The same applies for liabilities to operators which are also non-interest bearing and are generally settled in an agreed-upon term between 10 and 90 days from the date of the invoice issue.
Other liabilities in the Group and the Company mainly involve liabilities from cession, assignments in the amount of EUR 3,030 thousand (2019: EUR 5,980 thousand), programme rights for TV content in the amount of EUR 9,968 thousand (2019: EUR 2,824 thousand) and other liabilities in the amount of EUR 8,671 thousand (2019: EUR 3 thousand).
| Telekom Slovenije Group | Telekom Slovenije | In EUR thousand | 31 Dec 2020 | 31 Dec 2019 | 31 Dec 2020 | 31 Dec 2019 |
|---|---|---|---|---|---|---|
| Short-term deferred revenue - lease of base stations and lines | 1,714 | 1,682 | 1,714 | 1,682 | ||
| Contract liabilities from customer loyalty programme and mobile services prepayment | 10,090 | 6,547 | 6,644 | 3,298 | ||
| Other deferred revenue | 917 | 874 | 511 | 432 | ||
| Total current contract liabilities | 12,721 | 9,103 | 8,869 | 5,412 |
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. All categories are recurring.
| In EUR thousand | Carrying amount | 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 | 1,854 | 1,854 | 1,854 | ||
| Investments in shares and interests not listed on the stock exchange, measured at fair value through other comprehensive income | 1,111 | 1,111 | 1,111 | ||
| Loans granted | 103 | 103 | 103 | ||
| Other receivables | 17,081 | 17,081 | 17,081 | ||
| Current financial assets | |||||
| Loans granted | 61 | 61 | 61 | ||
| Other current financial assets | 451 | 451 | 451 | ||
| Trade and other receivables | 162,936 | 162,936 | 162,936 | ||
| Cash and cash equivalents | 8,167 | 8,167 | 8,167 | ||
| Non-current financial liabilities | |||||
| Borrowings | 184,221 | 184,221 | 184,221 | ||
| Liabilities for interest rate swap | 244 | 244 | 244 | ||
| Other payables | 38,896 | 38,896 | 38,896 | ||
| Current financial liabilities | |||||
| Bonds | 101,078 | 100,500 | 100,500 | ||
| Borrowings | 32,080 | 32,080 | 32,080 | ||
| Liabilities for interest rate swap | 98 | 98 | 98 | ||
| Other financial liabilities | 63 | 63 | 63 | ||
| Trade payables | 119,058 | 119,058 | 119,058 |
| In EUR thousand | Carrying amount | 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 | 2,062 | 2,062 | 2,062 | ||
| Investments in shares and interests not listed on the stock exchange, measured at fair value through other comprehensive income | 2,619 | 2,619 | 2,619 | ||
| Loans granted | 172 | 172 | 172 | ||
| Other non-current financial assets | 7 | 7 | 7 | ||
| Other receivables | 24,405 | 24,405 | 24,405 | ||
| Current financial assets | |||||
| Loans granted | 77 | 77 | 77 | ||
| Other current financial assets | 602 | 602 | 602 | ||
| Trade and other receivables | 153,559 | 153,559 | 153,559 | ||
| Cash and cash equivalents | 13,219 | 13,219 | 13,219 | ||
| Non-current financial liabilities | |||||
| Bonds | 99,983 | 101,800 | 101,800 | ||
| Borrowings | 214,802 | 214,802 | 214,802 | ||
| Liabilities for interest rate swap | 625 | 625 | 625 | ||
| Other payables | 40,469 | 40,469 | 40,469 | ||
| Current financial liabilities | |||||
| Bonds | 1,053 | 1,053 | 1,053 | ||
| Borrowings | 31,038 | 31,038 | 31,038 | ||
| Other financial liabilities | 171 | 171 | 171 | ||
| Trade payables | 113,342 | 113,342 | 113,342 |
| In EUR thousand | Carrying amount | 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 | 1,854 | 1,854 | 1,854 | ||
| Investments in shares and interests not listed on the stock exchange, measured at fair value through other comprehensive income | 1,109 | 1,109 | 1,109 | ||
| Loans granted | 60,988 | 60,988 | 60,988 | ||
| Other receivables | 17,081 | 17,081 | 17,081 | ||
| Current financial assets | |||||
| Loans granted | 17,385 | 17,385 | 17,385 | ||
| Trade and other receivables | 158,367 | 158,367 | 158,367 | ||
| Cash and cash equivalents | 2,086 | 2,086 | 2,086 | ||
| Non-current financial liabilities | |||||
| Borrowings | 184,221 | 184,221 | 184,221 | ||
| Liabilities for interest rate swap | 244 | 244 | 244 | ||
| Other payables | 20,856 | 20,856 | 20,856 | ||
| Current financial liabilities | |||||
| Bonds | 101,078 | 100,500 | 100,500 | ||
| Borrowings | 45,083 | 45,083 | 45,083 | ||
| Liabilities for interest rate swap | 98 | 98 | |||
| Other financial liabilities | 61 | 61 | |||
| Trade payables | 109,755 | 109,755 | 109,755 |
| In EUR thousand | Carrying amount | 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 | 2,062 | 2,062 | 2,062 | ||
| Investments in shares and interests not listed on the stock exchange, measured at fair value through other comprehensive income | 2,617 | 2,617 | 2,617 | ||
| Loans granted | 85,742 | 85,742 | 85,742 | ||
| Other receivables | 24,405 | 24,402 | 24,405 | ||
| Current financial assets | |||||
| Loans granted | 10,226 | 10,226 | 10,226 | ||
| Trade and other receivables | 145,644 | 145,644 | 145,644 | ||
| Cash and cash equivalents | 1,153 | 1,153 | 1,153 | ||
| Non-current financial liabilities | |||||
| Bonds | 99,983 | 101,800 | 101,800 | ||
| Borrowings | 214,802 | 214,802 | 214,802 | ||
| Liabilities for interest rate swap | 625 | 625 | |||
| Other payables | 10,722 | 10,722 | 10,722 | ||
| Current financial liabilities | |||||
| Bonds | 1,053 | 1,053 | 1,053 | ||
| Borrowings | 38,008 | 38,008 | 38,008 | ||
| Other financial liabilities | 128 | 128 | 128 | ||
| Trade payables | 99,945 | 99,945 | 99,945 |
Fair values at levels 2 and 3 were estimated using the discounted cash flow valuation technique. The Group and the Company did not record any transfers between fair value levels in 2019 or 2020.
The Group and the Company carry investment property in their books at cost, whereby they only disclose fair value. The valuation of investment property was prepared by a certified property appraiser as at 30 November 2020. The market comparison approach was used in the assessment of fair value, decreased by the cost of use.
| In EUR thousand | Carrying amount | Fair value | Level 1 | Level 2 | Level 3 |
|---|---|---|---|---|---|
| Investment property | 1,258 | 1,704 | 1,704 |
| In EUR thousand | Carrying amount | Fair value | Level 1 | Level 2 | Level 3 |
|---|---|---|---|---|---|
| Investment property | 4,230 | 4,849 | 4,849 |
| In EUR thousand | Carrying amount | Fair value | Level 1 | Level 2 | Level 3 |
|---|---|---|---|---|---|
| Investment property |
| 1,030 | 1,033 | 1,033 | ||
|---|---|---|---|---|
| Telekom Slovenije | in EUR thousand | |||
| Carrying amount | Fair value | Level 1 | Level 2 | Level 3 |
| Investment property | 4,002 | 4,180 | 4,180 |
| In EUR thousand | 2020 | 2019 |
|---|---|---|
| Amounts claimed in lawsuits | 43,136 | 72,677 |
The decrease in lawsuits in the year 2020 is mainly due to the completed lawsuits against company TSmedia in the amount of EUR 25,000 thousand.
As at the balance sheet date, the Group recorded 91 lawsuits brought against it (31 Dec 2019: 94), whereof the largest is SKY NET in the amount of EUR 33,047 thousand.
Based on the obtained legal opinions and the estimate of the management, provisions were formed for lawsuits in the amount of EUR 4,666 thousand (Note 31).
| In EUR thousand | 2020 | 2019 |
|---|---|---|
| Amounts claimed in lawsuits | 40,691 | 44,526 |
As at the balance sheet date, the Company recorded 51 lawsuits brought against it (31 Dec 2019: 47), whereof the largest is SKY NET in the amount of EUR 33,047 thousand.
The relevant cases are at various stages as follows:
On 2 March 2020, Telekom Slovenije received the ruling and decision of the Ljubljana District Court concerning the commercial dispute between the plaintiff SKY NET, and the defendant Telekom Slovenije (formerly Mobitel, d. d.) in the matter of contract performance under two lawsuits. In the ruling and decision, the Court dismissed the part of subordinate claim by SKY NET regarding the construction of base stations and the drafting of documentation referring to 2007 as well as the remaining part of the subordinate claim relating to the issue of orders for the construction of 414 base stations and orders for obtaining documentation for 434 base stations. Additionally, the Court ruled that SKY NET was obliged to reimburse Telekom Slovenije legal costs.
Based on the estimate of the management and the obtained legal opinions, the Company has no provisions formed for lawsuits.
Given the proceedings’ progress, it is difficult to provide an estimate of the completion of individual cases with a sufficient degree of certainty.
After the balance sheet date, Telekom Slovenije received two lawsuits. On 1 February 2021 a lawsuit for alleged breach of contractual obligations and on 2 March 2021 a lawsuit for payment of ordinary damages, lost profits and of the absence of receivables. More details in Note 47.
| In EUR thousand | 31 Dec 2020 | 31 Dec 2019 | 31 Dec 2020 | 31 Dec 2019 |
|---|---|---|---|---|
| Performance bonds and warranty bonds issued by the bank | 9,292 | 7,369 | 7,587 | 5,176 |
| Contract performance bonds | 0 | 0 | 431 | 1,019 |
| Other guarantees | 405 | 800 | 162 | 411 |
| Total guarantees | 9,698 | 8,169 | 8,180 | 6,606 |
The majority of guarantees received or/and issued refer to performance and warranty obligations. Guarantees issued between Group companies amount to EUR 431 thousand. They refer to collateralisation of contractual obligations and represent guarantees of Telekom Slovenije for securing subsidiary companies’ liabilities. None of the stated liabilities meets the terms for recognition among balance sheet items. Thus, no related material consequences are expected for the Group.
In 2020, IPKO restated the error from 2019 which results from the recognition of the contract for the purchase of TV channels for broadcasting in Kosovo. The contract was concluded in May 2019, the Group therefore increased its assets and trade payables for discounted future payments under this contract in its financial statements for 2019.
The contract was concluded on 1 May 2019 for a period of five years in exchange for a fixed annual payment, whereby the Company cannot withdraw from the contract in the first three years.
According to the binding terms of the contract for the first three years, the Company should recognise an intangible asset in the amount of discounted future payments for three years.
The Group corrected the financial statements for the financial year 2019 and recognised an intangible asset in the amount of EUR 17,351 thousand, with a useful life of three years. It simultaneously recognised a liability in the amount of EUR 17,641 thousand, equalling the amount of discounted future payments. The correction of the error resulted in an increase in finance expenses in the amount of EUR 475 thousand and a decrease in amortization in the amount of EUR 185 thousand. The effect of the error correction is in the reduction of the profit or loss of IPKO and the Telekom Slovenije Group in 2019 in the amount of EUR 290 thousand.
Related entities are individuals or companies related to the Telekom Slovenije Group.
As at 31 December 2020, related individuals (Deputy Chairman of the Supervisory Board and members of the Supervisory Board) hold a total of 306 shares in the Company, representing an ownership interest of 0.00468%. No loans were granted to related individuals in 2020.
| Total gross payments received | Receipts as profit pay-outs based on the resolution of the General Meeting of Shareholders | Borrowings | Unpaid portion at 31 December 2020 | Repayments in 2020 |
|---|---|---|---|---|
| Board members | 934 | - | - | - |
| Members of the Supervisory Board | 262 | - | - | - |
| Members of the Supervisory Board Committees | 20 | - | - | - |
| Other managerial staff employed under contracts not subject to the tariff part of the collective agreement | 4,621 | - | 7 | 6 |
In EUR thousand
| Total gross payments received | Receipts as profit pay-outs based on the resolution of the General Meeting of Shareholders |
|---|---|
| Category | Repayments in 2019 |
|---|---|
| Total Board members | 1,033 |
| Members of the Supervisory Board | 258 |
| Members of the Supervisory Board Committees | 17 |
| Other managerial staff employed under contracts not subject to the tariff part of the collective agreement | 5,616 |
| Loans to other managers and employees in the Group under contracts that are not subject to the tariff part of the collective agreement were granted at interest rates ranging from 4.13 % to 4.24 % p.a. with a repayment period of up to 20 years. |
The Group has not granted any advances or guarantees to the respective groups of persons and has no liabilities to these persons. Nor did the Group record any write-offs or waived amounts for these groups.
| Name | Salary | Variable remuneration* | Other remuneration | Reimbursement of costs | Annual leave pay | Insurance premiums | Benefits | Voluntary supplementary pension insurance | Total gross** | Total net*** | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Tomaž Seljak (1 Jan – 31 Dec) | 157,783 | 28,715 | 0 | 1,433 | 1,481 | 795 | 9,213 | 2,819 | 202,239 | 87,185 | |
| Vida Žurga (1 Jan – 31 Dec) | 130,615 | 11,195 | 0 | 1,394 | 1,481 | 795 | 14,381 | 2,819 | 162,680 | 62,568 | |
| Matjaž Beričič (1 Jan – 31 Dec) | 155,995 | 780 | 0 | 1,383 | 1,481 | 795 | 5,906 | 2,819 | 169,159 | 79,336 | |
| Tomaž Jontes (22 Jun – 31 Dec) | 82,134 | 0 | 0 | 734 | 0 | 218 | 4,622 | 1,484 | 89,192 | 37,078 | |
| Špela Fortin (1 Jan – 31 Dec) | 110,456 | 2,594 | 0 | 1,322 | 1,481 | 795 | 7,431 | 2,819 | 126,898 | 57,084 | |
| Ranko Jelača (1 Jan – 14 Mar) | 31,908 | 58,703 | 0 | 77,999 | 166 | 0 | 247 | 461 | 1,074 | 171,028 | 72,313 |
| Rudolf Skobe (for 2019) | 0 | 6,949 | 0 | 0 | 0 | 0 | 0 | 0 | 6,949 | 3,962 | |
| Dean Žigon (for 2019) | 0 | 5,891 | 0 | 0 | 0 | 0 | 0 | 0 | 5,891 | 2,843 | |
| Total | 668,891 | 114,827 | 77,999 | 6,432 | 6,171 | 3,859 | 42,627 | 13,230 | 934,036 | 402,369 |
** The total gross amount is the sum of all types of labour costs, including net receipts (reimbursement of costs), insurance premiums, the benefits and voluntary supplementary pension insurance.
*** The total net amount comprises the sum of net receipts of Management Board members, inclusive of insurance premiums and benefits, which actually reduce net receipts of Management Board members, and exclusive of the benefits and voluntary supplementary pension insurance, which is remitted to the pension company and not to the members personally.
Members of the Management Board did not receive any profit payouts, options, commissions or other receipts.
In EUR
| Member | Other remuneration | Reimbursement of costs | Annual leave pay | Insurance premiums | Benefits | Voluntary supplementary pension insurance | Total gross | Total net | |||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Tomaž Seljak (1 Jan – 31 Dec) | 154,721 | 33,474 | 1,444 | 1,200 | 710 | 11,154 | 2,819 | 205,522 | 85,328 | ||
| Ranko Jelača (1 Jan – 31 Dec) | 154,720 | 30,439 | 1,672 | 1,200 | 840 | 5,781 | 2,819 | 197,471 | 91,103 | ||
| Vida Žurga (1 Feb – 31 Dec) | 142,146 | 0 | 1,510 | 1,100 | 670 | 9,074 | 2,584 | 157,084 | 65,101 | ||
| Špela Fortin (14 Sep – 31 Dec) | 32,067 | 0 | 374 | 0 | 122 | 1,045 | 864 | 34,472 | 16,567 | ||
| Matjaž Beričič (10 Dec – 31 Dec) | 9,454 | 0 | 73 | 0 | 396 | 171 | 10,094 | 4,818 | |||
| Rudolf Skobe (1 Jan – 30 Nov) | 141,721 | 67,422 | 77,999 | 423 | 1,200 | 670 | 13,148 | 2,819 | 305,402 | 122,622 | |
| Matjaž Merkan (16 Sep – 15 Nov) | 26,619 | 0 | 250 | 304 | 122 | 1,444 | 470 | 29,209 | 13,383 | ||
| Dean Žigon (1 Jan – 13 Sep) | 76,241 | 8,521 | 948 | 1,200 | 588 | 4,878 | 1,991 | 94,367 | 42,389 | ||
| Total | 737,689 | 139,856 | 77,999 | 6,694 | 6,204 | 3,722 | 46,920 | 14,537 | 1,033,621 | 441,311 |
** The total gross amount is the sum of all types of labour costs, including net receipts (reimbursement of costs), insurance premiums, the benefits and voluntary supplementary pension insurance.
*** The total net amount comprises the sum of net receipts of Management Board members, inclusive of insurance premiums and benefits, which actually reduce net receipts of Management Board members, and exclusive of the benefits and voluntary supplementary pension insurance, which is remitted to the pension company and not to the members personally.
Members of the Management Board did not receive any profit pay-outs, options, commissions or other receipts.
The Telekom Slovenije Group records liabilities to related parties arising from remunerations that have not yet been paid out and amount as follows:
| In EUR thousand | Total amount of all liabilities 2020 | Total amount of all liabilities 2019 |
|---|---|---|
| Total Board members | 285 | 79 |
| Other managerial staff employed under contracts not subject to the tariff part of the collective agreement | 429 | 168 |
| In EUR | Meetings | Monthly payment | Committees | Travel expenses | Liability insurance | Total gross | Total net | |
|---|---|---|---|---|---|---|---|---|
| External members | Boštjan Koler (3 Nov – 31 Dec) | 1,045 | 4,539 | 660 | 0 | 0 | 6,244 | 4,541 |
| External members | Meetings | Monthly payment | Committees | Travel expenses | Liability insurance | Total gross* | Total net** |
|---|---|---|---|---|---|---|---|
| Lidija Glavina (1 Jan – 31 Aug) | 3,685 | 20,125 | 2,860 | 454 | 296 | 27,420 | 19,727 |
| Barbara Gorjup (1 Jan – 31 Dec) | 5,225 | 21,107 | 1,775 | 0 | 296 | 28,403 | 20,442 |
| Barbara Kürner Čad (1 Jan – 31 Dec) | 3,700 | 23,333 | 3,300 | 0 | 296 | 30,629 | 22,061 |
| Bernarda Babič (1 Jan – 31 Dec) | 5,225 | 20,465 | 1,775 | 0 | 296 | 27,761 | 19,975 |
| Dimitrij Marjanović (1 Jan – 31 Dec) | 3,304 | 21,000 | 3,696 | 0 | 296 | 28,296 | 20,364 |
| Ljubomir Rajšić (1 Jan – 18 Jun) | 1,650 | 10,617 | 440 | 3,188 | 296 | 16,191 | 9,931 |
| Barbara Cerovšek Zupančič (1 Sep – 31 Dec) | 1,815 | 7,267 | 1,100 | 0 | 0 | 10,182 | 7,406 |
| Igor Rozman (1 Sep – 31 Dec) | 1,815 | 7,802 | 1,100 | 0 | 0 | 10,717 | 7,795 |
| Internal members | |||||||
| Drago Kijevčanin (1 Jan – 31 Dec) | 3,084 | 21,894 | 3,916 | 107 | 296 | 29,297 | 21,093 |
| Dušan Pišek (1 Jan – 31 Dec) | 5,225 | 17,500 | 1,540 | 0 | 296 | 24,561 | 17,648 |
| Jana Žižek Kuhar (1 Jan – 31 Dec) | 5,500 | 17,500 | 880 | 0 | 296 | 24,176 | 17,368 |
| Total | 40,228 | 188,610 | 22,382 | 3,749 | 2,664 | 257,633 | 183,810 |
** The total net amount represents the sum of Supervisory Board members’ net receipts, inclusive of liability insurance, which actually reduce net receipts, together with travel expenses.
| External Committee Members | Meetings | Monthly payment | Committees | Travel expenses | Liability insurance | Total gross* | Total net** |
|---|---|---|---|---|---|---|---|
| Barbara Nose (1 Jan – 31 Dec) | 0 | 9,713 | 4,096 | 0 | 0 | 13,809 | 10,043 |
| Melita Malgaj (9 Dec – 31 Dec) | 0 | 216 | 440 | 0 | 0 | 656 | 477 |
| Boštjan Koler (12 Feb – 1 Apr) | 0 | 805 | 616 | 0 | 0 | 1,421 | 1,033 |
| Alenka Stanič (12 Feb – 1 Apr; 9 Dec – 31 Dec) | 0 | 1,021 | 1,056 | 0 | 0 | 2,077 | 1,511 |
| Gregor Rajšp (12 Feb – 1 Apr; 9 Dec – 31 Dec) | 0 | 1,021 | 1,056 | 0 | 0 | 2,077 | 1,511 |
| Total | 0 | 12,776 | 7,264 | 0 | 0 | 20,040 | 14,575 |
** The total net amount refers to net receipts of the members of the Supervisory Board committee.
| External Committee Members | Travel expenses | Liability insurance | Total gross* | Total net** | |||
|---|---|---|---|---|---|---|---|
| Barbara Nose (1 Jan – 31 Dec) | 0 | 10,500 | 2,376 | 0 | 0 | 12,876 | 9,365 |
| Slavko Ovčina (1 Jan – 16 Apr) | 0 | 2,0610 | 0 | 0 | 2,061 | 1,499 | |
| Boštjan Koler (4 Jul – 23 Jul) | 0 | 583 | 220 | 0 | 0 | 803584 | |
| Alenka Stanič (4 Jul – 23 Jul) | 0 | 583 | 220 | 0 | 0 | 803584 | |
| Gregor Rajšp (8 Jul – 23 Jul) | 0 | 583 | 220 | 0 | 0 | 803584 | |
| Total | 0 | 14,310 | 3,036 | 0 | 0 | 17,346 | 12,616 |
** The total net amount refers to net receipts of the members of the Supervisory Board committee.
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 Telekom Slovenije conducts business. All related party transactions are carried out at market prices.
All transactions with companies in the Group are performed under market conditions applicable for transactions with unrelated parties.
| In EUR thousand | 31 Dec 2020 | 31 Dec 2019 | |
|---|---|---|---|
| Receivables due from companies in the Group | Subsidiaries – gross amount | 3,872 | 5,925 |
| Subsidiaries – impairment | -22 | -17 | |
| Subsidiaries – net amount | 3,850 | 5,908 | |
| Borrowings to companies in the Group | Subsidiaries – gross amount | 78,209 | 115,637 |
| Subsidiaries – impairment | 0 | 19,910 | |
| Subsidiaries – net amount | 78,209 | 95,727 | |
| Liabilities to companies in the Group | Subsidiaries | 41,810 | 35,544 |
| I–XII 2020 | I–XII 2019 | |
|---|---|---|
| Net Group revenue | 14,551 | 15,887 |
| Subsidiaries | 14,551 | 15,887 |
| Purchase of material and services in the Group | 18,361 | 22,610 |
| Subsidiaries | 18,361 | 22,610 |
The Company generates revenue by selling material to the company GVO, by leasing business premises and property, plant and equipment, rendering telecommunication services and implementing the services of business support. Telekom Slovenije settles the costs of investment construction, maintenance and elimination of defects.
TSmedia pays 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 parent 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, 1977 services, ad management and sale of advertising space. Additionally, it receives revenue arising from the telephone directory, the Bizi.si business directory and call centre services, which Telekom Slovenije charges to end users through a joint invoice.
The Company charges the lease of business premises, communications services at location, support activities services to its subsidiary Avtenta, while paying the subsidiary the costs of ICT services. Telekom Slovenije charges international IP services, roaming services of its users, traffic transiting services and system lease services to its subsidiary IPKO. The subsidiary charges the lease of lines and international telecommunications services as well as services related to user roaming to the parent company. Inter-company prices are formed on the same basis as for other users.
As at the reporting date, the amount of contract performance bonds issued by Telekom Slovenije to its subsidiaries equalled EUR 431 thousand (2019: EUR 1,019 thousand).
The Company did not form an impairment for loans granted in 2020, as the estimated expected credit losses are insignificant.
| In EUR thousand | 31 Dec 2020 | 31 Dec 2019 |
|---|---|---|
| TSmedia | 1,556 | 1,621 |
The largest owner of Telekom Slovenije is the Republic of Slovenia, which, together with the Slovenian Sovereign Holding – SSH (Slovenski državni holding – SDH), holds a 66.79% share in Telekom Slovenije. Companies related to the owners are those in which the Republic of Slovenia and the SSH in total hold an ownership interest of 20% minimum. The list of these companies is published on the SSH website (http://www.sdh.si/sl-si/upravljanje-nalozb/seznam-nalozb).
| Telekom Slovenije Group | Telekom Slovenije | v tisoč EUR | 31 Dec 2020 | 31 Dec 2019 | 31 Dec 2020 | 31 Dec 2019 |
|---|---|---|---|---|---|---|
| Outstanding trade receivables | 3,480 | 4,414 | 3,336 | 3,056 | ||
| Outstanding trade payables | 2,156 | 2,269 | 2,060 | 1,982 | ||
| VAT liabilities | 5,845 | 4,400 | 6,026 | 4,370 | ||
| Income tax payable | 75 | 320 | 0 | 0 |
| 2020 | 2019 | 2020 | 2019 | |
|---|---|---|---|---|
| Revenue | 19,346 | 24,674 | 16,860 | 17,222 |
| Purchase costs of material and services | 9,300 | 10,075 | 8,363 | 8,892 |
| 2020 | 2019 | 2020 | 2019 | ||
|---|---|---|---|---|---|
| VAT payment | 55,249 | 57,880 | 55,278 | 58,201 | |
| Corporate income tax payment | 794 | -105 | 0 | ||
| Dividends paid | 15,312 | 19,687 | 15,312 | 19,687 |
| Telekom Slovenije Group | Telekom Slovenije | In EUR thousand | 2020 | 2019 | 2020 | 2019 |
|---|---|---|---|---|---|---|
| Audit services | 225 | 138 | 181 | 92 | ||
| Other assurance services | 133 | 13 | 3 | |||
| Other non-audit services | 142 | 80 | 24 | |||
| Total auditor’s fees | 252 | 169 | 194 | 119 |
The Group classified financial instruments into measurement categories as shown in the table below.
| Telekom Slovenije Group | Telekom Slovenije | In EUR thousand | 31 Dec 2020 | 31 Dec 2019 | 31 Dec 2020 | 31 Dec 2019 |
|---|---|---|---|---|---|---|
| Financial assets measured at amortised cost | Cash and cash equivalents | 8,167 | 13,219 | 2,086 | 1,153 | |
| Bank deposits | 451 | 602 | 0 | 0 | ||
| Loans granted | 164 | 249 | 78,373 | 95,968 | ||
| Trade and other receivables | 180,017 | 177,964 | 175,448 | 170,049 | ||
| Financial assets measured at fair value through other comprehensive income | Investments in shares and interests of companies | 2,965 | 4,688 | 2,963 | 4,679 | |
| Financial liabilities at fair value through other comprehensive income | Liabilities for interest rate swap | 244 | 625 | 244 | 625 | |
| Financial liabilities measured at amortised cost | Trade payables | 157,954 | 153,811 | 130,611 | 110,667 | |
| Borrowings | 216,301 | 245,840 | 229,304 | 252,810 | ||
| Bonds | 101,078 | 101,036 | 101,078 | 101,036 | ||
| Liabilities arising from dividends | 63 | 204 | 61 | 128 |
The most significant financial risks the Telekom Slovenije Group is exposed to in the course of its operations are credit risk, long-term and short-term liquidity risk and interest rate risk. Exposure to individual types of financial risks and measures for their management are conducted and assessed by the Telekom Slovenije Group on the basis of effects on cash flows and the statement of profit or loss.
Presented below in more detail are the most significant financial risks, which, in line with the adopted policy, the Group regularly assesses and reviews the adequacy of the measures for their management.
Credit risk is the risk of financial loss in case a client or a contracting party does not settle their liabilities in full or at all. The maximum exposure to credit risk equals the carrying amount of financial assets.
| Telekom Slovenije Group | Telekom Slovenije | In EUR thousand | 31 Dec 2020 | 31 Dec 2019 | 31 Dec 2020 | 31 Dec 2019 |
|---|---|---|---|---|---|---|
| Loans granted | 164 | 249 | 78,373 | 95,968 | ||
| Investments | 451 | 602 | 0 | 0 | ||
| Trade and other receivables | 162,936 | 153,559 | 158,367 | 145,644 | ||
| - of which trade receivables | 156,771 | 145,694 | 153,688 | 140,560 | ||
| Cash and cash equivalents | 8,167 | 13,219 | 2,086 | 1,153 | ||
| TOTAL | 171,718 | 167,629 | 238,826 | 242,765 |
When placing investments, the Group ensures their appropriate diversification, so the concentration risk is low.
Credit risk or the settlement and counterparty risk arises mainly from non-payment of liabilities by customers (retail) and by operators (wholesale). Trade receivables represent the maximum exposure to credit risk. As at 31 December 2020, these amounted to EUR 156,771 thousand, having increased by EUR 11,077 thousand compared to the 2019 year-end. Most of the Group’s trade and other receivables stand for Telekom Slovenije. Most receivables are unsecured. The Group records receivables due from a large number of natural persons and legal entities. The Group’s largest customers are operators, whose turnover is usually reciprocal, which reduces net credit exposure. We estimate that there is no significant credit risk concentration to an individual client or sector.
The Group companies have introduced procedures for managing receivables, which include monitoring business partners’ credit rating, monitoring high turnover of subscribers and recovery. The recovery is effected through a pre-defined timeline (reminders and disconnection) and through specialised outsourced operators. Telekom Slovenije requires prior authorisation for concluding and changing a subscription relationship and purchasing goods on deferred payment. As an additional measure for managing credit risk, the larger Group companies implemented systems to prevent frauds i.e. Fraud Management System (FMS). Telekom Slovenije, which has the most post-paid customers, additionally has in place the Credit Management System (CMS).
As a result of introduced procedures for managing receivables, credit risk is assessed as manageable. The Telekom Slovenije Group and the Company also monitor credit risks in other segments of business operations. Bank balances are allocated according to the principles of risk minimisation and tracking proper bank diversification. The risk is low, as due to the stability of the banking system and high liquidity of banks, there is no major risk in terms of bank balances. The expected credit losses for cash and cash equivalents are not recorded, they are assessed as insignificant in terms of the amounts of cash and their bank diversification.
The Group is also exposed to risk in relation to receivables from loans to employees and investments in short-term deposits. The lending risk is low, as these loan repayments are mostly settled through payroll, whereas risk in other investments is managed through proper portfolio diversification principles and tracking the individual banks’ credit rating. Expected credit losses are not recorded for investments in short-term deposits, as they are assessed as insignificant given the amount of assets and their diversification by banks.
Telekom Slovenije is exposed to credit risk arising also from receivables from loans granted to subsidiaries. For the loans granted, the Company estimated that there was no significant increase in credit risk and therefore impairments for credit losses are measured on the basis of expected credit losses over a 12-month period (Phase 1). In this respect, the Company did not form an impairment in 2020, as the estimated expected credit losses are insignificant.
Borrower default risk is managed by means of diverse insurance instruments in loan contracts, such as right of lien on immovable and movable property, assignment of existing and future claims, liens, guarantee statements and other adequate forms of collateral. Additionally, the Company regularly monitors and supervises the operations of its subsidiaries, thus additionally mitigating the related credit risk. Loans granted are disclosed in more detail in Chapter 19.
| In EUR thousand | 31. 12. 2020 | 31. 12. 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross value | Expected loss rate | Value adjustment | Net value | Gross value | Expected loss rate | Value adjustment | Net value | ||
| Total trade receivables | 172,645 | -15,874 | 156,771 | 163,981 | -18,287 | 145,694 | |||
| Trade receivables not past due | 139,425 | 0.5% | -697 | 138,728 | 128,095 | 0.5% | -664 | 127,431 | |
| Past due | - up to and including 30 days | 11,726 | 2.9% | -341 | 11,385 | 12,155 | 3.0% | -359 | 11,796 |
| - from and including 31 days to and including 60 days | 3,492 | 8.4% | -293 | 3,199 | 3,596 | 7.6% | -273 | 3,323 | |
| - from and including 61 days to and including 90 days | 607 | 9.2% | -56 | 551 | 488 | 8.2% | -40 | 448 | |
| - from and including 91 days to and including 180 days | 1,433 | 51.3% | -735 | 698 | 1,370 | 48.5% | -665 | 705 | |
| - from and including 181 days to and including 365 days |
| 31. 12. 2020 | 31. 12. 2019 | Gross value | Expected loss rate | Value adjustment | Net value | ||||
|---|---|---|---|---|---|---|---|---|---|
| Total trade receivables | 166,134 | -12,446 | 153,688 | 152,496 | 0 | -11,936 | 140,560 | ||
| Trade receivables not past due | 139,929 | 0.5% | -712 | 139,217 | 124,804 | 0.5% | -663 | 124,144 | |
| Past due | - up to and including 30 days | 8,512 | 4.0% | -340 | 8,172 | 9,045 | 4.0% | -359 | 8,686 |
| - from and including 31 days to and including 60 days | 3,276 | 9.0% | -295 | 2,981 | 3,056 | 8.8% | -270 | 2,786 | |
| - from and including 61 days to and including 90 days | 647 | 9.0% | -58 | 589 | 533 | 7.5% | -40 | 493 | |
| - from and including 91 days to and including 180 days | 1,284 | 49.0% | -629 | 655 | 1,506 | 37.6% | -566 | 940 | |
| - from and including 181 days to and including 365 days | 2,279 | 49.0% | -1,117 | 1,162 | 2,570 | 33.2% | -852 | 1,718 | |
| - from and including 366 days up to 2 years | 2,047 | 60.0% | -1,228 | 819 | 3,116 | 43.8% | -1,365 | 1,751 | |
| - over 2 years | 4,617 | 98.0% | -4,524 | 93 | 4,167 | 98.9% | -4,122 | 42 | |
| - trade receivables in insolvency proceedings | 3,543 | 100.0% | -3,543 | 0 | 3,699 | 100.0% | -3,699 | 0 | |
| Total trade receivables past due | 26,205 | -11,734 | 14,471 | 27,692 | -11,273 | 16,416 | |||
| Other trade receivables | 4,679 | 0 | 4,679 | 5,084 | 0 | 5,084 | |||
| Total receivables | 170,813 | -12,446 | 158,367 | 157,580 | -11,936 | 145,644 |
Trade receivables due from customers in the Group are classified in corresponding maturity bands. In 2019, expected credit losses for receivables due from within the Group are taken into account at the rate applicable for receivables not past due, which is why expected percentages of credit losses are lower in 2019 compared to 2020.
Non-current trade receivables are fully not past due. Expected credit losses for them are estimated at 0.50% (2019: 0.30%).
| 31 Dec 2020 | 31 Dec 2019 | Telekom Slovenije | 31 Dec 2020 | 31 Dec 2019 | |
|---|---|---|---|---|---|
| Past due | 6 | 7 | 6 | 403 | |
| Not past due: | 158 | 242 | 78,367 | 95,565 | |
| - in less than 3 months | 15 | 18 | 323 | 1,175 | |
| - between 3 and 12 months | 40 | 21 | 7,056 | 8,648 | |
| - between 1 and 2 years | 40 | 59 | 9,582 | 6,947 | |
| - between 2 and 5 years | 53 | 84 | 4,358 | 43,615 | |
| - over 5 years | 10 | 29 | 7,049 | 35,180 | |
| Total | 164 | 249 | 78,373 | 95,968 |
| Loans granted | 1586 | 0 | 0 | 0 | 0 | 164 |
|---|---|---|---|---|---|---|
| Not past due: | Less than 3 months | Between 3 and 12 months | Between 1 and 2 years | Between 2 and 5 years | Over 5 years | Total |
|---|---|---|---|---|---|---|
| Loans granted | 78,367 | 6 | 0 | 0 | 0 | 78,373 |
| Not past due: | Less than 3 months | Between 3 and 12 months | Between 1 and 2 years | Between 2 and 5 years | Over 5 years | Total |
|---|---|---|---|---|---|---|
| Loans granted | 242 | 7 | 0 | 0 | 0 | 249 |
| Not past due: | Less than 3 months | Between 3 and 12 months | Between 1 and 2 years | Between 2 and 5 years | Over 5 years | Total |
|---|---|---|---|---|---|---|
| Loans granted | 95,565 | 35368 | 0 | 0 | 0 | 95,968 |
The Group’s liquidity is the result of active planning and managing of cash flows, provision of adequate maturity and financial debt diversification, financing within the Group, and the optimisation of working capital and cash. The liquidity risk on the Group level is managed by the parent company, which plans and monitors the cash requirements of subsidiaries and provides them with the necessary funds.
Indebtedness at the Group and the Company level is relatively low. Most of the Group’s financial liabilities are accounted for by a non-current syndicated loan in the amount of EUR 215.4 million, the issue of 5-year bonds of EUR 100 million and liabilities from financial lease in the amount of EUR 69.3 million and EUR 78.8 million at the Group and Company level, respectively. The Group and the Company are regularly repaying their financing obligations; EUR 30.8 million of non-current loan obligations were repaid in 2020.
In order to ensure a high level of liquidity with banks, the Group has open current credit lines, which are renewed according to needs. The total liquidity reserve in the form of granted, unused short-term revolving credit lines amounted to EUR 98.5 million at the end of 2020. In addition, Telekom Slovenije has revolving credit lines open with subsidiaries in the amount of EUR 16.5 million, so that at the end of the year the Company’s liquidity reserve in the form of unused credit lines amounted to EUR 102 million.
Past due Callable
Up to 3 months
Between 3 and 12 months
Between 1 and 2 years
| Not past due: | In EUR thousand | Total | ||||
|---|---|---|---|---|---|---|
| Up to 3 months | Between 3 and 12 months | Between 1 and 2 years | Between 2 and 5 years | Over 5 years | ||
| 31 Dec 2020 | 0 | 0 | 0 | 45,272 | 30,769 | 229,887 |
| Anticipated interest on loans | 0 | 0 | 283,250 | 2,725 | 2,756 | 8,759 |
| Other financial liabilities | 610 | 98 | 101,095 | 244 | 0 | 101,498 |
| Anticipated interest on bonds | 0 | 0 | 0 | 1,950 | 0 | 1,950 |
| Trade and other payables | 1,845 | 1,376 | 96,548 | 9,986 | 10,551 | 130,611 |
| Financial liabilities from lease | 271 | 45,463 | 6,155 | 8,837 | 22,726 | 78,753 |
| Total | 1,933 | 1,390 | 102,137 | 167,708 | 53,126 | 551,458 |
| 31 Dec 2019 | 0 | 0 | 0 | 31,300 | 30,769 | 246,684 |
| Anticipated interest on loans | 0 | 0 | 3,679 | 3,201 | 5,328 | 12,366 |
| Other financial liabilities | 128 | 0 | 1,136 | 100,347 | 0 | 101,925 |
| Anticipated interest on bonds | 0 | 0 | 0 | 1,950 | 0 | 3,900 |
| Trade and other payables | 2,397 | 2,497 | 95,802 | 12,737 | 10,248 | 153,811 |
| Financial liabilities from lease | 460 | 3,935 | 5,006 | 6,710 | 18,371 | 69,054 |
| Total | 2,571 | 2,497 | 99,739 | 55,808 | 211,104 | 587,740 |
| 0 | 0 | 0 | 38,269 | 30,769 | 169,231 | 15,385 | 253,654 |
|---|---|---|---|---|---|---|---|
| 0 | 0 | 0 | 3,679 | 3,201 | 5,328 | 15 | 812 | 366 |
|---|---|---|---|---|---|---|---|---|
| 1,280 | 0 | 1,095 | 100,316 | 310 | 0 | 101,849 |
|---|---|---|---|---|---|---|
| 0 | 0 | 0 | 1,950 | 1,950 | 0 | 0 | 3,900 |
|---|---|---|---|---|---|---|---|
| 1,693 | 1,401 | 93,224 | 3,627 | 10,286 | 258 | 178 | 110,667 |
|---|---|---|---|---|---|---|---|
| 460 | 4,203 | 5,782 | 8,415 | 22,556 | 35,380 | 76,382 |
|---|---|---|---|---|---|---|
| 1,867 | 1,401 | 97,427 | 54,402 | 154,937 | 197,683 | 51,101 | 558,818 | |
|---|---|---|---|---|---|---|---|---|
Interest rate risk is the risk of a negative impact of changes in market interest rates on the Group’s operations. As at 31 December 2020, the Group’s interest rate exposure arises from the possible increase in the Euribor reference interest rate, relating to interest-sensitive liabilities. The Group and the Company pursue the target ratio between variable interest bearing and fixed interest bearing or hedged financial liabilities, which is to equal 50% of the debt with fixed or hedged interest rate.
In the structure of the Group’s interest-bearing financial liabilities as at 31 December 2020, the liabilities relating to borrowings, which bear interest at variable interest rates linked to 3- and 6-month Euribor, account for a share of 56.2% (53.1% at the Company level). The remaining liabilities arise from utilised short-term revolving loans (at the Company level), bonds issued, and finance leasing with a fixed interest rate.
In order to hedge against interest exposure arising from the non-current syndicated loan, the repayment deadline of which is 31 December 2025, the Group and the Company have in place an interest rate swap in the amount of 50% of two out of three tranches of the loan. As at 31 December 2020, the amount of hedged principal added up to EUR 69.2 million. By hedging the interest rate exposure through the use of an interest rate swap (IRS swap), the Group and the Company are hedging future cash flows against the risk of an increase in the interest rate. The principal is hedged for the growth of the reference interest rate should the latter equal zero or more. At the level of the Group, it has a fixed or hedged interest rate of 61.8% of interest-bearing financial debt and 63.9% at the Company level.
The Group and the Company use hedge accounting for concluded interest rate swaps; as hedged items and hedging instruments form an effective hedging ratio (hedging performance ranges between 80% and 125%), the valuation effects are disclosed in other comprehensive income.
| Telekom Slovenije Group | Telekom Slovenije | ||||
|---|---|---|---|---|---|
| In EUR thousand | 31 Dec 2020 | 31 Dec 2019 | 31 Dec 2020 | 31 Dec 2019 | |
| Financial instruments with variable interest rate | Financial receivables | 0 | 0 | 0 | 29,652 |
| Financial liabilities | 147,654 | 169,299 | 147,654 | 169,231 | |
| Net financial liabilities | 147,654 | 169,299 | 147,654 | 139,579 |
Financial receivables take into account the gross value of loans granted, exclusive of impairment. The table does not include is exclusive of non-interest-bearing financial instruments and instruments bearing a fixed interest rate, as they are not exposed to interest rate risk. It also does not include financial liabilities with hedged interest rate for Euribor growth.
The following table illustrates the sensitivity analysis of the changed interest rate on the Group’s and the Company’s profit as at the reporting date, whereby all other variables are constant.
| Effect on profit before tax in EUR thousand | 2020 | Interest rate increase/decrease | Telekom Slovenije Group | Telekom Slovenije |
|---|---|---|---|---|
| EURO+100 bt | -202 | -202 | ||
| EURO-100 bt | -692 | -692 |
| Effect on profit before tax in EUR thousand | 2019 | Interest rate increase/decrease | Telekom Slovenije Group | Telekom Slovenije |
|---|---|---|---|---|
| EURO+100 bt | -588 | -388 | ||
| EURO-100 bt | -769 | -769 |
| EURIBOR | Value as at 31 December 2020 | Value as at 31 December 2019 | Change in % |
|---|---|---|---|
| 3-month | -0.538 | -0.390 | -37.95 |
| 6-month | -0.523 | -0.325 | -60.92 |
consequently, long-term liquidity as well as financial stability which ensures the best possible credit rating for further financing of the Group’s and the Company’s operations and development and thereby maximising shareholder value.
The Group and the Company monitor changes in equity by using a debt-to-equity ratio and equity-to-total assets ratio. The Group’s net financial liabilities include borrowings and other financial liabilities less current investments and cash. When adopting decisions relating to capital management, the Group also considers the financial covenants under loan contracts.
| In EUR thousand | 31 Dec 2020 | 31 Dec 2019 | 31 Dec 2020 | 31 Dec 2019 | |
|---|---|---|---|---|---|
| Borrowings and other financial liabilities | 387,056 | 416,759 | 409,538 | 430,981 | |
| Less current investments and cash with short-term deposits | -8,679 | -13,898 | -19,471 | -11,379 | |
| Net liabilities | 378,377 | 402,861 | 390,067 | 419,602 | |
| Equity | 590,484 | 590,588 | 605,784 | 606,136 | |
| Total assets | 1,227,839 | 1,250,211 | 1,226,566 | 1,223,536 | |
| Debt/equity ratio | 64.1% | 68.2% | 64.4% | 69.2% | |
| Equity/total assets ratio | 48.1% | 47.2% | 49.4% | 49.5% |
The Group and the Company hold a general authorisation for providing the electronic communications network or electronic communication services. Prior to the commencement of the provision of public communication network services, a written notification must be provided to the Communications Networks and Services Agency of the Republic of Slovenia (hereinafter: the Agency). Before the commencement of the service stemming from the notification, no explicit decision or administrative act by a local administrative authority is required.
The Group paid an annual consideration for the following major electronic communications services:
The amount of the consideration is determined by law and the tariff by the General Act of the Agency. On an annual basis, the Group companies pay right-of-use fees for radio frequencies, telephony numbering space, and other rights for rendering fixed-line and mobile phone services. Telekom Slovenije Group’s total amount of fees in 2020 equalled EUR 3,434 thousand (2019: EUR 3,059 thousand), and of Telekom Slovenije EUR 2,034 thousand (2019: EUR 1,766 thousand).
On 21 January 2021, the 32nd General Meeting of Shareholders of Telekom Slovenije was held, at which the shareholders adopted the proposed amendments to the text of the Articles of Association of Telekom Slovenije and adopted a clean copy of the Articles of Association. On the day of the General Meeting, the shareholders recalled Igor Rozman, a member of the Supervisory Board - a shareholder representative, and elected Iztok Černoša, Aleksander Igličar, Marko Kerin and Radovan Cerjak as the new members of the Supervisory Board - for a four-year term of office starting 22 January 2021. Upon election of new members of the Supervisory Board – shareholders’ representatives, the term expired to members of the Supervisory Board – shareholders’ representatives Boštjan Koler, Dimitrij Marjanović and Štefan Belingar, appointed by the Decision of the Ljubljana District Court dated 3 November 2020.
obligations. The value of the filed lawsuit is less than 5% of the capital, which represents a contingent liability without affecting the financial statements of the Company and the Group. Telekom Slovenije responded to the lawsuit within the legal time limits and estimates that the plaintiff will be unsuccessful in their lawsuit.
After having been closed from 24 October 2020 to 9 February 2021, Telekom Slovenije’s points of sale reopened on 10 February 2021. In addition to following all protective measures, we make sure the employees of Telekom centres are tested on a weekly basis. At the Company level, we continue to implement activities in line with the Plan of measures and activities in the event of a pandemic, which we adopted in the framework of the Business Continuity Management System (BCMS), which is certified in accordance with the ISO/IEC 22301 standard. We implement numerous measures aimed at protecting human resources, both our employees and users of our services. To this end, approximately 65% of our employees have been working remotely since November 2020, while 35% of them work at Company locations or perform field work. We pay special attention to providing uninterrupted services, network and service security, as well as to operation as prescribed in the event of emergencies, with particular emphasis on cybersecurity. We provide technical support to our users and additional capacities and services to companies. Measures intended to limit the spread of Covid-19 adopted at the national level have a negative impact on the operations of the Telekom Slovenije Group, especially in terms of lower revenue from users roaming in foreign operator networks and foreign user roaming in our mobile network, as well as in terms of causing a standstill in operations or lower scope of operations on the commercial market. Accordingly, we implement additional, Group-level measures to achieve our plan.
While initial forecasts of economic trends for 2021 are rather uncertain, expectations for share markets are mostly positive, also in terms of the expected high liquidity of the financial system, storage charges and negative interest rates. In 2020, numerous measures were adopted at the level of the Telekom Slovenije Group in order to mitigate the negative effects of the coronavirus, especially in terms of costs and investments, which will contribute to the realisation of the strategy set in 2021.
On 11 February 2021, the members of the Supervisory Board of Telekom Slovenije elected Iztok Černoša Chairman of the Supervisory Board at their 1st regular session following the General Meeting. His deputies remain Barbara Kürner Čad as the capital representative and Drago Kijevčanin as the representative of the employees. In view of the changed membership, the Supervisory Board also re-appointed the Supervisory Board committees.
On 10 December 2020, Telekom Slovenije announced the beginning of its acquisition of the subsidiary Avtenta, napredne poslovne rešitve, d.o.o., with the anticipated conclusion of activities on 1 April 2021. The merger was not carried out by the planned deadline. The Company will notify shareholders about further activities.
On 2 March 2021, Telekom Slovenije received a lawsuit by T-2, d. o. o. from the Ljubljana District Court, due to the payment of actual losses in the amount of EUR 12,195,656, with all dues, payment of lost profit in the amount of EUR 35,760,909, with all dues, and the declaration of the non-existence of receivables in the amount of EUR 1,778,033, with all dues, spp. The lawsuit claim supposedly represents the damage incurred to the plaintiff between 1 September 2018 and 31 July 2020. Telekom Slovenije estimates that the claim will be wholly unsuccessful.
At its 3rd regular session held on 10 March 2021, Telekom Slovenije’s Supervisory Board concluded an agreement with the Chairman and three members of the company Management Board on the termination of their employment contracts and dismissal from the position of Chairman of the Management Board and members of the Management Board, respectively. Accordingly, the terms of Tomaž Seljak as Chairman of the Management Board and Vida Žurga, Matjaž Beričič and Tomaž Jontes as members of the Management Board were terminated as of 10 March 2021. The Supervisory Board appointed Cvetko Sršen as new Chairman of the Management Board, while Mitja Štular and Tomaž Jontes were appointed as members of the Management Board. All of them started their 4-year terms as of 10 March 2021. Špela Fortin, Worker Director, remains in the Management Board as member.
At its 4th ordinary session held on 22 March 2021, Telekom Slovenije’s Supervisory Board appointed Barbara Galičič Drakslar to serve as member of the Management Board. Her four-year term of office as a member of Telekom Slovenije’s Management Board began on 31 March 2021.
Telekom Slovenije received a decision from the Supreme Court of the Republic of Slovenia on 24 March 2021 in the administrative dispute with the Competition Protection Agency (CPA) due to the alleged abuse of the Company’s dominant position on the inter-operator market. In its decision, the Supreme Court partially ruled in favour of Telekom Slovenije’s request for review and overruled the contested judgement of the Administrative Court of 9 January 2018 in the part rejecting Telekom Slovenije’s claim. In that part, the Supreme Court overturned the contested judgement and returned the matter to the court of first instance for retrial. That matter involves the reversal of the CPA’s decision no. 306-23/2013-151 of 2 February 2015. In accordance with the Supreme Court’s ruling, the aforementioned decision is no longer partially final.
In the period 1 April to 11 April, when stricter measures were in place at the national level in order to prevent the spread of the coronavirus, our points of sale remained open on account of conducting regular weekly testing of employees. During that period, certain Telekom centres operated within adjusted or reduced working hours. As of 12 April, Telekom centres once again operate according to the usual schedule.
1500 MHz band, 2100 MHz band, 3600 MHz band and the 26 GHz band for which it shall paid a total of EUR 52,078,177.00. Telekom Slovenije is pleased that the auction is completed, as the frequency spectrum we obtained allows us to continue pursuing our development plan. During the auction, we obtained all the needed and planned frequency spectrum, which will allow us to continue providing residential users, businesses, and operators who use national roaming on our network with cutting-edge services and solutions with the best user experience. We will upgrade our current national 5G network, which we were the first in Slovenia to launch in October last year, and which already has more than 32% population coverage. 5G is an important foundation of the modern digital society, which Telekom Slovenije is actively helping to establish. Our network guarantees residential users and business the most advanced and safest future, and the newly obtained spectrum will also provide continued development for all stakeholders in Telekom Slovenije Group’s ecosystem.
After 31 December 2020, no other significant events have occurred which would require recognition or disclosure in the financial statements.
Telekom Slovenije, d. d. is the parent company of the Telekom Slovenije Group.
| Company: | Telekom Slovenije, d. d. |
|---|---|
| Registered office: | Ljubljana |
| Address: | Cigaletova ulica 15, 1000 Ljubljana |
| Registration number: | 5014018000 |
| VAT ID number: | SI98511734 |
| Entry in the companies register: | 1/24624/00, Ljubljana District Court |
| Number of shares: | 6,535,478 |
| Ticker symbol of no-par-value shares: | TLSG |
| Telephone: | + 386 1 234 10 00 |
| Fax: | + 386 1 231 47 36 |
| Website | http://www.telekom.si |
| Email: | info\@telekom.si |
| LinkedIn: | telekom-slovenije |
| Facebook: | TelekomSlovenije |
| Twitter: | @TelekomSlo |
| Instagram: | Telekom_Slovenije |
| YouTube: | TelekomSlovenije |
| Company: | GVO, gradnja in vzdrževanje telekomunikacijskih omrežij, d. o. o. |
|---|---|
| Registered office: | Ljubljana |
| Address: | Cigaletova ulica 10, 1000 Ljubljana |
| Telephone: | + 386 1 234 1950 |
| Website: | www.gvo.si |
| Email: | gvo\@telekom.si |
| Company: | GVO Telekommunikation GmbH |
|---|---|
| Registered office: | DE 48683 Ahaus, Germany |
| Address: | Schorlemer Straße 48 |
| Company: | OPTIC-TEL telekomunikacije d. o. o |
|---|---|
| Registered office: | Ljubljana |
| Address: | Cigaletova 10, Ljubljana |
| Company: | INFRATEL, telekomunikacijska infrastruktura, d. o. o. |
|---|---|
| Registered office: | Ljubljana |
| Address: | Cigaletova 10, Ljubljana |
| Company: | AVTENTA, napredne poslovne rešitve, d. o. o. |
|---|---|
| Registered office: | Ljubljana |
| Address: | Stegne 19, 1000 Ljubljana |
| Telephone: | + 386 1 583 68 00 |
| Website: | www.avtenta.si |
| Email: | prodaja\@avtenta.si, marketing\@avtenta.si |
Registered office: Ljubljana
Address: Stegne 19, 1000 Ljubljana
Telephone: + 386 1 473 00 10
Website: www.tsmedia.si
Email: [email protected]
Registered office: Seča
Address: Seča 115, 6320 Portorož/Portorose
Telephone: + 386 5 672 13 43
Website: www.soline.si
Email: [email protected]
Registered office: Ljubljana
Address: Litostrojska cesta 58A, 1000 Ljubljana
Telephone: + 386 1 500 60 60
Website: www.tsinpo.si
Email: [email protected]
Registered office: Priština, Kosovo
Address: Lagija Ulpiana Rruga "Zija Shemsiu" Nr. 34, Prishtinë
Telephone: + 381 38 700 700
Website: www.ipko.com
Email: [email protected]
Registered office: Zagreb, Hrvaška
Address: Margaretska 3
Website: http://www.siol.com/
Registered office: Sarajevo, Bosna in Hercegovina
Address: Fra Anđela Zvizdovića 1
Registered office: Podgorica, Črna gora
Address: Džordža Vašingtona 108/36A, The Capital Plaza
Registered office: Skopje, Severna Makedonija
Address: Dmitrie Chupovski 22A-1/13
Registered office: Beograd, Srbija
Address: Ulica 27. marta 11
Registered office: Priština, Kosovo
Address: Pejton, Str. Mujo Ulqinaku 5/1
| Abbreviation | English term | Slovene translation |
|---|---|---|
| AKOS | Agency for Communication Networks and Services of the Republic of Slovenia | Agencija za komunikacijska omrežja in storitve Republike Slovenije |
| APM | Alternative Performance Measures | alternativna merila uspešnosti poslovanja |
| ARKEP | Regulatory Authority of Electronic and Postal Communications of Kosovo | Agencija za elektronske in poštne komunikacije Kosova |
| ARPU | Average Revenue Per User | povprečni prihodek na uporabnika |
| ARPL | Average Revenue Per Line | povprečni prihodek na linijo |
| AR | Augmented Reality | obogatena resničnost |
| Abbreviation | English term | Slovene translation |
|---|---|---|
| ASPU | Average Spend Per User | povprečna poraba na uporabnika |
| AVK | Slovenian Competition Protection Agency | Javna agencija Republike Slovenije za varstvo konkurence |
| BB | BroadBand | širokopasovni dostop |
| BI/DW | Business Intelligence / Data Warehouse | poslovna inteligenca / podatkovno skladišče |
| BDP | bruto domači proizvod | |
| Big data | velepodatki | |
| -Billing | sistem za zaračunavanje | |
| Bundle (packet) | skupek v paket povezanih storitev | |
| BSS | Business Support System | sistem za podporo poslovanju |
| BSS/OSS | Business/Operational Support System | sistem za podporo poslovnega procesa / sistemi za operativni podporni proces |
| -BusinessConnect | sodobna rešitev za upravljanje dokumentarnega gradiva | |
| CAGR | Compound Annual Growth Rate | povprečni letni prirast |
| CAPEX | Capital Expenditure | vrednost investicij |
| CATV | Cable Television | kabelska televizija |
| CSC | Cyber security control center | nadzorni center za kibernetsko varnost |
| CEM | Customer Experience Management | upravljanje uporabniške izkušnje |
| COSO ERM | Committee of Sponsoring Organizations of the Treadway Commission, Enterprise risk management Integrated Framework | Odbor sponzorskih organizacij Treadwayeve komisije, Upravljanje tveganj v organizaciji v povezavi s strategijo in delovanjem organizacije |
| Cloud services | storitve v oblaku | |
| CRM | Customer relationship management | sistemi za upravljanje uporabnikov |
| -Cross-sale | navzkrižna prodaja | |
| FURS | Financial administration of the Republic of Slovenia | Finančna uprava RS |
| DCaaS | Data Center as a Service | podatkovni center kot storitev |
| -Data offload | razbremenjevanje mobilnih podatkovnih omrežij na druge tehnologije | |
| DDOS | Distributed Denial of Services | porazdeljena zavrnitev storitve |
| DTVD | Digital television | digitalna televizija |
| DVB-x/IP | Digital Video Broadcast – IP over x (C, S, T) | digitalna videoradiodifuzija s podporo prenosa IP-podatkovnih paketov prek MPEG-transportnegatoka |
| DVB-T | Digital Video Broadcasting-Terrestrial | prizemna digitalna videoradiodifuzija |
| DVB-T/C/S | Digital Video Broadcasting-Terrestrial/Cable/Satelite | prizemna/kabelska/satelitska digitalna videoradiodifuzija |
| DWDMD | Dense Wavelength Division Multiplex | gosti valovni multipleks |
| 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 fundacija za poslovno odličnost |
| ESMA | European Securities and Markets Authority | Evropski nadzorni organ za vrednostne papirje in trge |
| ERP | Enterprise Resource Planning | poslovni informacijski sistem |
| ETNO ETT | Europe’s telecommunication network operators Energy Task Team | Evropsko združenje telekomunikacijskih operaterjev – tim za energetske cilje |
| EU | European Union | Evropska unija |
| FC | Fiber channel | optični kanal |
| FTTH | Fiber To The Home | optično vlakno do hiše/stanovanja |
| Abbreviation | English term | Slovene translation |
|---|---|---|
| FTTH/B/N | Fiber To The Home / Business / Node | optika do hiše/podjetja/vozlišča |
| FTTx | Fiber To The Exchange | optika do X |
| Flagship | vodilna (referenčna) trgovina | |
| GDPR | General Data Protection Regulation | splošna uredba o varstvu osebnih podatkov |
| GOŠO | Construction of Open Broadband network | gradnja odprtega širokopasovnega omrežja |
| (bele lise – subvencionirano s sredstvi EU) | ||
| GPO | Gigabit Pasive Optical Network | gigabitno pasivno optično omrežje |
| GRI | Global reporting initiative | model trajnostnega poročanja |
| HFC | Hybrid Fiber Coax | hibridno optično koaksialno omrežje |
| IaaS | Infrastructure as a Service | infrastruktura kot storitev |
| IFRS/MSRP | International Financial Reporting Standards | Mednarodni standardi računovodskega poročanja |
| IoT | Internet of Things | internet stvari |
| IKT | Information and Communication Technologies | informacijsko-komunikacijske tehnologije |
| ISO | International Organization for Standardization | Mednarodna organizacija za standardizacijo |
| ISP | Internet Service provider | ponudnik internetnih storitev |
| IT | Information Technology | informacijska tehnologija |
| ITIL | Information Technology Infrastructure Library | |
| IP | Internet Protocol | internetni protokol |
| IMS | Internet protocol Multymedia System | IP-multimedijski sistem |
| IMS/VOLTE | IP Multimedia Core Network Subsystem Voice over LTE (Long-Term Evolution) | govor prek LTE-omrežja |
| IMF WEO | International Monetary Fund World Economic Outlook | |
| IPTV | IP television | televizija prek internetnega protokola |
| KFI | Key Financial Indicators | ključni finančni indikatorji poslovanja |
| KPI | Key Performance Indicators | ključni kazalniki poslovanja |
| KPSS | Sečovlje Salina Nature park | Krajinski park Sečoveljske soline |
| LPWA | Low Power Wide Area | omrežja z nizko porabo in velikim dosegom |
| LTE | Long Term Evolution | LTE/4G, post LTE/4G, po 3 GPP mobilnem standardu |
| LTE-A | Long Term Evolution Advanced | LTE/4G z višjo prenosno hitrostjo podatkov (več kot 300 Mb/s) |
| M2M | Machine to Machine | komunikacijska povezava med napravami |
| MBB | Mobile Broadband | mobilni širokopasovni dostop |
| MMDS | Multichannel Multipoint Distribution Service | večpredstavnostni večtočkovni distribucijski sistemi |
| MMS | Multimedia Messaging Service | multimedijski sporočilni sistem |
| MVNO | Mobile Virtual Network Operator | mobilni operater navideznega omrežja |
| MPLS | Multiprotocol label switching | tehnologija za posredovanje, usmerjanje in preklapljanje prometnih tokov skozi omrežje |
| MPLS VPN | MPLS Virtual private network | navidezno zasebno omrežje |
| NOC | Network Operations Center | |
| NGA | Next Generation Access | hitro dostopovno omrežje |
| NGN | Next Generation Networks | širokopasovna omrežja naslednje generacije |
| NFV | Network Functions Virtualization | |
| NPS | Net Promotor Score | merilo za spremljanje uporabniške izkušnje, v eni številki pa združuje indikacijo uporabnikove pripravljenosti priporočanja, njegovega zadovoljstva, zaznav odličnosti uporabniške izkušnje in izražanja pripadnosti ponudniku |
| OCKV | Operational center of cyber security | Operativni center kibernetske varnosti |
| OPEX | Operational Expenditure | stroški poslovanja brez amortizacije |
| OMS | Order management system | sistem upravljanja naročil |
| OSC | Operating Service Center | operativno storitveni center |
| OSS | Operations Support system | sistem za podporo delovanja |
| Abbreviation | English term | Slovene translation |
|---|---|---|
| ROADM | Reconfigurable Optical Add-Drop Multiplexer | nastavljiv optični multipleksor za dodajanje in odvzemanje |
| ROE | Return on Equity | dobičkonosnost kapitala |
| ROO | Regional Optical Network | regionalno optično omrežje |
| RNO | Access cable network | razvodno naročniško omrežje |
| SaaS | Software as a Service | programska oprema kot storitev |
| SDG | Sustainable Development Goals | cilji trajnostnega razvoja |
| SDH | Synchronous Digital Hierarchy | sinhrona digitalna hierarhija |
| SDV/VAS | Value Added Services | storitve z dodano vrednostjo |
| SeKV | Sekcija za kibernetsko varnost pri GZS | |
| SME/SOHO | Small and Medium Enterprises / Small Office Home Office | mala in srednja podjetja |
| SMS | Short Message Service | storitev kratkih sporočil |
| SMB | Small and medium size business | mali in srednje veliki poslovni uporabniki |
| SLA | Service Level Agreement | Sporazum o ravni zagotavljanja storitve |
| Up-salen | nadgradnja storitev | |
| SURS | Statistical office of Republic Slovenia | Statistični urad Republike Slovenije |
| TDM | Time Division Multiplex | časovni multipleks, sistem s porazdeljevanjem časa |
| ULR | usredstvena lastna režija | |
| UMTS/HSPA | Universal Mobile Telecommunications System/High Speed Packet Access | univerzalni mobilni telekomunikacijski sistem/protokol 3G, ki pomeni nadgradnjo omrežja UMTS in omogoča večje prenosne hitrosti |
| UMAR | Urad za makroekonomske analize in razvoj | |
| USO | Universal Service Obligation | obveznost zagotavljanja univerzalnih storitev |
| VULA | Virtual Unbundled Local Access | virtualna lokalna razvezana zanka |
| VR | Virtual Reality | navidezna resničnost |
| VoIP | Voice over IP | govor prek IP-protokola |
| VDSL | Very High Speed Digital Subscriber Line | digitalni naročniški vod z zelo visokimi hitrosti |
| Wi-Fi | Wireless Fidelity | brezžično omrežje po standardih IEEE 802.11 |
| WFM | Workforce Management | sistem za optimizacijo terenskega dela |
| XaaS | Anything as a Service | ponudba celostne palete storitev v oblaku |
Publisher: Telekom Slovenije, d. d., Cigaletova 15, 1000 Ljubljana
Text and editing: Skupina Telekom Slovenije in Studio Kernel d.o.o.
Translation: Amidas d.o.o.
Creative idea and graphic layout: Pristop, Ljubljana, d. o. o.
Photography: Telekom Slovenije, d. d. and iStock
Ljubljana, april 2021
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