THE SLOVAK TELEKOM 2016 - 2017€¦ · COMPANY PROFILE ... strategy of the parent company. Compliance with the Code of Conduct is binding for every employee. Feedback on adherence

THE SLOVAK TELEKOM 2016 - 2017CORPORATE SOCIAL RESPONSIBILITY REPORT

CONTENTS .................................................................................................................................................................................................................................................................................................................................... 2A FOREWORD BY THE CEO ............................................................................................................................................................................................................................................................................................................................................. 3

REPORT PARAMATERS ..................................................................................................................................................................................................................................................................................................................................................... 4

COMPANY OVERVIEW .................................................................................................................................................................................................................................................................................................................. 5COMPANY PROFILE ........................................................................................................................................................................................................................................................................................................................................................... 6

COMPANY MANAGEMENT ............................................................................................................................................................................................................................................................................................................................................... 10

RESPONSIBILITY TOWARDS THE COMMUNITY ................................................................................................................................................................................................................................................................. 12

RESPONSIBILITY TOWARDS CUSTOMERS ......................................................................................................................................................................................................................................................................... 19

RESPONSIBILITY TOWARDS EMPLOYEES ........................................................................................................................................................................................................................................................................... 23

RESPONSIBILITY TOWARDS SUPPLIERS AND BUSINESS PARTNERS .......................................................................................................................................................................................................................... 30

RESPONSIBILITY TOWARDS THE ENVIRONMENT ............................................................................................................................................................................................................................................................. 32

CONTENTS

2THE SLOVAK TELEKOM 2016 - 2017 CORPORATE SOCIAL RESPONSIBILITY REPORT

CONTENS

A FOREWORD BY THE CEODear customers, shareholders, partners and colleagues,

I would like to express my pleasure that in recent years, responsible entrepreneurship has become a real part of many forms of business in Slovakia, and is not just on a declarative level. The benefits brought about by many companies in terms of improving the quality of life in Slovakia are visibly noticeable, especially when such a philosophy is embedded in corporate strategies in a long-term and consistent manner. And it is this very form of participation that we at Slovak Telekom engage in. We know that our greatest wealth is people – be they employees or our customers. Year after year, we have endeavoured to change the quality of life of those who our business concerns through our responsible business activities. This concerns the wider community in which we operate: our customers, our employees and our suppliers, and of course, our careful approach towards the environment. Whilst doing business, we act responsibly and with respect, because we believe that only such an approach will contribute to the greater satisfaction of all those around us.

We are proud to see that in the area of support for the hearing-impaired, we have gone beyond what is deemed as the usual support for over 15 years. Alongside partner organisations, governmental and healthcare professionals, we have long contributed to a higher quality of life for this community - not only thanks to financial support, but also through participation in the entire care and education system for the hearing-impaired.

But we said this was not enough. Thanks to our daily contact with the customer, we have also defined the further direction of our responsible route for the next years. This past year is going to be written into the company‘s history thanks to Slovak Telekom becoming part of the A perceptive company project that attempts to fundamentally change the stereotypes and prejudices against diversity, which is currently more than relevent. This inclusive project aims to change the perception of difference, on any basis – whether regarding race, physicality or intelligence, etc. And I‘m most happy that we have started with ourselves.

You can read more about this project and other activities in the Slovak Telekom 2016 - 2017 Corporate Social Responsibility report. I believe this will be a pleasant and inspirational read for you.

Milan Vašina CEO


A FOREWORD BY THE CEO

Reporting period: The 2016 - 2017 calendar year

Last report issued:15.9.2016

Reporting cycle: Biennial

Contact person for questions regarding the reports: Peter Kimijan, [email protected]

The report is available in electronic form only from: https://www.telekom.sk/o-spolocnosti-telekom/zodpovedne-podnikanie/ sprava-o-zodpovednom-podnikani/

Report content and topic definition message, list of relevant topics: The report is now is now issued biennially as opposed to annually. The report summarises Slovak Telekom’s activities implemented in the 2016 - 2017 period in the area of corporate responsibility. The activities are divided into chapters per concern – the community, customers, employees, the environment, suppliers and business partners.The Corporate Social Responsibility Report is intended for shareholders, investors, business partners, customers, employees, the media, public officials, non-governmental organisations, the non-profit sector, other experts and the general public.

Explanation of relevant topics and their definition, entities included in the consolidated financial report:The report only documents the activities of Slovak Telekom; the activities of its subsidiaries are not included. The data presented in the report is drawn from Slovak Telekom’s 2016 and 2017 Annual Reports, the Company’s own CR database, and materials from the Company’s individual sections and departments.

Compliance with international methodology:This report was prepared on the basis of documents from the company‘s key departments. In compiling this report, the authors were inspired by the Global Reporting Initiative (GRI), but the report does not cover all the indicators required by GRI methodology. The report focuses in more detail on areas that best represent Slovak Telekom as a socially responsible company.

REPORT PARAMATERS


REPORT PARAMATERS

COMPANY OVERVIEW

COMPANY PROFILE

The Slovak Telekom group is part of the worldwide of the Deutsche Telekom companies group. The unmistakable graphic symbol of the associated companies is the magenta ‘T’ which additionally incorporates the internationally applicable values upheld by the employees of all companies within the group. Slovak Telekom is the largest Slovak multimedia operator and has years of experience and a responsible approach to business. Slovak Telekom’s products and services are provided to individuals, households and corporate customers through fixed and mobile telecommunication networks.

All Slovak Telekom employees have adhered to the revised Code of Conduct since the end of 2017. Compared to the original wording, the content is more compact and reduced, the rules on ethical behaviour are clearer and the new Slovak Telekom graphic design is introduced along with photographs of Deutsche Telekom employees.The new Code of Conduct is implemented in all Deutsche Telekom Group companies. Slovak colleagues from the Legal Department, Compliance and Internal Communication contributed towards the Slovak version of the document. Values and principles of behaviour are communicated several times a year via various feeds to both internal and external environments, either through top management or through campaigns of various kinds. These are - among other things - the regular evaluation of feedback and on the basis of the findings, the appropriate measures are set after the decisions thereon are made by management.

The Code of Conduct is unified for all Deutsche Telekom Group companies and represents their correlation to the vision, values and strategy of the parent company. Compliance with the Code of Conduct is binding for every employee. Feedback on adherence to the ethics and employee behaviour principles is obtained through the Ethics Line control tool available to all employees as well as external partners. Proceedings for breaches of the Code of Conduct can be addressed by calling 0800 111 711, by post to the Legal and Corporate Affairs Division, Bajkalská 28, 817 62 Bratislava or via e-mail to etickykodex @ telekom.sk.

Slovak Telekom has committed to adhere to standards and behavioural norms its advertising practice as well, making sure that ads are primarily truthful, honest and decent, and in its content and respect internationally recognised advertising practices developed by the International Chamber of Commerce. At the same time, all advertisements and promotional information are subject to compliance with the Advertising Law and the Consumer Protection Act..

IDENTICAL VALUES FOR ALL DEUTSCHE TELEKOM COMPANIES:

� Customer satisfaction drives us � We act responsibly and with respect � Together or independently – we are one team � The best place for performance and growth � I am T – count on me

The Slovak Telekom Group as a provider of comprehensive telecommunication services provides fixed network services, Internet connections, digital and cable TV services, data services, terminal equipment and call center services, mobile communications, Internet content (Zoznam and Zoznam Mobile List) and Security Services (Telekom Sec).

The Slovak Telekom Group is formed by the Slovak Telekom parent company a.s. and its subsidiaries Zoznam, s.r.o., Zoznam Mobile, s. r. o., Telekom Sec, s. r. o., PosAm, spol. s r.o. and DIGI SLOVAKIA, s. r. o. All entities are additionally included in the company‘s financial reports for 2016 and 2017.

The Company holds the certified EN ISO 9001: 2008, integrated management system, which includes a quality management system according to EN ISO 9001: 2008, an environmental management system according to EN ISO 14001: 2004 and an information security system according to ISO 270001: 2013. The integrated management system

also features a Cloud Data Privacy Management System according to ISO 27018: 2014 and an Occupational Health and Safety Management System according to OHSAS 18001.

Company name: Slovak Telekom, a.s.

Address: Bajkalská 28, 817 62 Bratislava, Slovakia

Shareholder structure:Slovak Telekom is part of the multinational Deutsche Telekom Group. Deutsche Telekom is a leading global telecommunication company that provides services to more than 180 million customers in 50 countries worldwide. The majority shareholder of Slovak Telekom is Deutsche Telekom Europe B.V. with a 100% stake. The ultimate parent company of Slovak Telekom is Deutsche Telekom AG.

Deutsche Telekom activity map


COMPANY PROFILE

Legal form: A joint stock company

Ownership: Private international 100%

Significant changes: In July 2016, as part of the ELAN project, the personel and infrastructure linking of Czech T-Mobile and Slovak Telekom provided greater unification of internal processes and systemsand also brought a management link between the divisions and sections.

Active markets:Slovak Telekom provides a comprehensive portfolio of data and voice services. Customers benefit from fixed and mobile telecommunications networks that cover almost the entire country. Slovak Telekom is a provider of broadband Internet and provides access to the internet through four high speed internet technologies.

Bánovce nad Bebravou Kežmarok Nitra Sabinov TornaľaBanská Bystrica Komárno Nová Baňa Senec TrebišovBanská Štiavnica Košice Nové Mesto nad Váhom Senica TrenčínBardejov Kráľovský Chlmec Nové Zámky Sereď TrnavaBratislava Krupina Partizánske Skalica TvrdošínBrezno Kysucké Nové Mesto Pezinok Snina Veľký KrtíšBytča Levice Piešťany Sobrance Vranov nad TopľouČadca Levoča Poprad Spišská Nová Ves VrútkyDetva Liptovský Mikuláš Považská Bystrica Stará Ľubovňa Zlaté MoravceDolný Kubín Lučenec Prešov Stropkov ZvolenDubnica nad Váhom Malacky Prievidza Svidník Žiar nad HronomDunajská Streda Martin Púchov ŠahyGalanta Michalovce Revúca ŠaľaHlohovec Moldava nad Bodvou Rimavská Sobota ŠamorínHumenné Myjava Rožňava ŠtúrovoIlava Námestovo Ružomberok Topoľčany

List of cities with at least one branch:

Source: Slovak Telekom


COMPANY PROFILE

Over the past two years Slovak Telekom has concentrated on four main areas in line with its new strategy: innovation, the best connectivity, the customer experience and the ambition of having the best TV on the market.

In terms of the nature of Telekom as a technology leader, there is the desire not only to have quality networks and technologies, but also to connect them to the end customer: the impact they have on them, what devices they can be used on use and how to receive a good customer experience through them. Orientation on TV is based on a constant effort to bring innovation to the fixed network, where Slovak Telekom has established itself as a part of triple play services along with broadband internet and fixed line flat rate voice services.

Innovation lead by Smart HomeSlovak Telekom began providing one of the greatest innovations in recent years: another way of using Telekom‘s high-quality connectivity by the customer - an intelligent household through a service called SmartHome. Telekom brought all the necessary equipment to increase comfort and security in the home (from intelligent bulbs through cameras and smoke sensors) for a monthly fee, thus making it available to customers who have so far considered the initial investment to be relatively high.

Telekom managed to significantly extend the services on offer during the year. By the end of the year Magenta SmartHome featured 32 types of devices.

The best connectivityAfter a period of significant expansion of the 4G network and investment into mobile networks, Telekom simultaneously invested into fixed networks. In 2017, a multitude of finance and effort went into expanding and widening fixed coverage over VDSL and optics. A better quality connection was made available to hundreds of thousands of households.

By the end of 2017, a VDSL connection with a speed of at least 30 Mbps was available to over 618 000 homes and optics to over 484 000 households. Telekom was not found to be lagging in the area of the 4G network - where it expanded coverage of the population to 89 percent of Slovakia as of December 31, 2017. Notable attention was paid to the further coverage of the country, especially major sections of railways and motorways. At the same time, a faster LTE-A network was also installed: Pezinok and Košíce inhabitants have had LTE-A at 225 Mbps since 2017, while LTE-A at the speed of 300 Mbps was provided for Poprad, Zvolen, Nové Zámky and Piešťany.

The quality of Telekom mobile networks was once again confirmed in an independent P3 Communications test. Slovak Telekom was the first operator in Slovakia to receive five successive three-year Best In Test certificates and won both categories (Voice and Data Services). Focusing on the customer networking experience is furthermore supported not only by the coverage, but also by the quality, speed and capacity in all regions.

In order to make good use of Telekom‘s high-quality mobile networks, the company stocked dozens of stock phones, tablets, or other devices over the course of the year. Numerous flagship models were introduced: The Samsung GALAXY S8, S8+ and theNote8, the Sony Xperia XZ Premium, the Apple iPhone 8, 8 Plus and the X, the LG G6, the Lenovo Moto Z2 Play, the Huawei P10 and the Mate 10.

Last but not least, customer options were extended for data packages. The Happy fixed-rate plan was expanded to feature more free volume in March, and the Pre-paid Easy card received a new mobile data a new mobile data offer, including a larger package and better mobile app activation options.

TV servicesMagio digital television celebrated its 10th anniversary at the end of

2016 and Telekom continued to enrich itself at the start of the second decade.

2017 was extremely interesting from the point of view of television: it was another of a series of extremely interesting years, which shifted the entire Slovak TV market into a unique position in the pan-European context. The entire paid television market expanded rapidly, and from the point of view of Slovak Telekom it was a year of rapid growth. Telekom succeeded in acquiring several tens of thousands of new TV customers and the entire Group exceeded 591 000 digital TV customers by the end of 2017.

The group continued to concentrate primarily on maintaining the position of an operator which provides its customers with the best TV content. Telekom provided more than 15 new channels to its customers and approximately a further 20 in HD quality.

The company additionally worked on improving Magio GO mobile TV. Changes were made to both the web interface and the mobile application - for example allowing simple gesture control. Quality was also changed, Magio GO added the first HD channels, and others will follow.

Identification and selection of interested subjects:Determining interested subjects and ranking them by importance is the result of analyzing a business‘s activities and defining the impact, opportunities and potential risks. Priority subjects include customers, employees and trade unions, suppliers, the environment, shareholders, the public and non-profit sectors. Expectations, problems and feedback on the company‘s activities are mapped through dialogue with each subject.

Key themes:All areas of activity are subject to constant innovation and changes based on mutual dialogue and subsequent analysis of incentives. In the case of customers, the emphasis on quality and affordability of services


COMPANY PROFILE

most often occurs in dialogue and surveys. Even on the basis of these findings and requirements, Slovak Telekom is constantly expanding its coverage through fixed or mobile signals.

In staff matters, the impact of changes to the daily agenda, the changing environment etc is a common theme. That‘s why with many job positions Home office can be used.

In dialogue with the third sector over the last two years, the issue of value attitudes has come to the fore as a response to changes in the company. Slovak Telekom actively supported and backed the creation of the Sentient Company and Charter of Diversity platforms and projects.

Size of organisation:Number of employees: Standing 31.12.2016 (core, i.e. not including leased staff and staff on agreements): 2 795

Number of employees, standing 31.12.20017, (core, i.e. not including leased staff and staff on agreements): 2 977

Number of administrative operations, standing 31.12.2016: 194 (of which 105 are stores)

Number of administrative operations, standing 31.12.2017: 191 (of which 104 are stores)

2016 revenues: 765 984 million Euro

2017 revenues: 747 837 million Euro

COMPANY MANAGEMENTThe General Assembly of shareholders is the supreme body of the company. As a shareholder in its subsidiaries, Slovak Telekom exercises its rights by participating in annual general assemblies, or exercises the authority of a general assembly in companies where it is the sole shareholder/partner. Shareholders submit their proposals at general assemblies, where the financial statements of the company are also approved. The general assembly is convened at least once a year.

The Board of Directors The Board of Directors features seven members and is the Company’s statutory body, authorised to act on behalf of the Company in all matters and represent it vis-à-vis third parties. The Board of Directors strategically governs the activities of the company and decides on all corporate matters, unless these powers are vested by law or the articles of association to other company bodies, or unless delegated by the Board of Directors to other bodies. The Board of Directors appoints the Executive Management Board of the Company delegates the required powers. The Board of Directors meets at least six times a year.

The supervisory Board is the controlling body of the Company, consisting of nine members and representing all company shareholders, as well as employee representatives. The supervisory Board oversees the Board of Directors in its conduct of the Company’s business. The Supervisory Board meets at least once a quarter.

The Executive Management Board Is made up of seven members and is responsible for the day-to-day operations of the company in accordance with the decisions of the Board of Directors. The Executive Management Board approves the strategic and procedural affairs of individual departments. The Executive Management Board meets on a weekly basis to approve proposals submitted by senior managers responsible for individual areas. Members of the Executive Management Board report to the Board of Directors.

.

The Executive Management Board meets with employees in management and non-management positions at informal events and Forums, several times a year, where employees are given room for discussion. The social dialogue concerning adherence to the Collective Labour Agreement and employees’ rights is maintained by “Slovenský odborový zväz pôšt a telekomunikácií” (The Slovak Trade Union of Post and Telecommunication) and “Odborový zväz Telekom” (The Telekom Trade Union), which represent Slovak Telekom employees.


COMPANY PROFILE

SLOVAK TELEKOM EXECUTIVE MANAGEMENT

Branimir MarićChief

Technology

and IT Officer

Dušan ŠvalekChief Mass

Market

Segment

Officer

Rudolf UrbánekChief ICT

and Corporate

Segment Officer

(until 31. 12. 2017)

Chairman Miroslav Majoroš

Vice-chairmanGuido Manfred Menzel(since 10. 2. 2017)Kerstin Gunther (until 10. 2. 2017)

MembersDarja Dodonova (since 10. 2. 2017) Franco Musone Crispino (until 10. 2. 2017)

ChairmanHans-Peter Schultz

Members Denisa Herdová Miriam Kvočková (until 22. 6. 2017)

Drahoslav Letko Konstantina Bata Lamia Tewaag (until 20. 9. 2017) Henning Never

THE BOARD OF DIRECTORS THE SUPERVISORY BOARD

Jiří Vacek Chief Human

Resources

Officer

(since 1. 2.

2018)

Milan VašinaCEO

Stephan Eger Chief Financial

Officer and

Deputy CEO

Ján PitoňákChief

Legal and

Corporate

Affairs Officer

Uršula KráľováChief Human

Resources

Officer (until

31. 1. 2018)

Peter ŠkodnýChief ICT

and Corporate

Segment Officer

(since 1. 5. 2018)

Robert Hauber Chief Financial Officer and Deputy CEO (until 30. 6. 2016)

Ján Adamec Chief ICT

and Corporate

Segment Officer

(until 30. 6. 2016)

Petra BerecováChief Human

Resources Officer

(until 29. 2. 2016)

COMPANY MANAGEMENT BODIES



STRATEGY AND MANAGEMENT

In terms of CSR, its creation, decisions and approval come at many levels at Slovak Telekom, starting with the CEO , senior corporate communications manager, CSR manager, external communications department and other colleagues from across the company.

The CSR Team:Milan Vašina - CEOAndrej Gargulák –Senior Corporate Communication manager Tatiana Švrčková –Senior social responsibility Specialist Peter Kimijan, Peter Gálik –Senior Communication Specialist

IN 2016-2017 SLOVAK TELEKOM WAS AN ACTIVE MEMBER OF THE FOLLOWING SLOVAK ORGANISATIONS:

� The Slovak-German chamber of commerce and industry � The British Chamber of Commerce � The National Union of Employers � The Communication Technology Forum � The Slovak IT Association � The Slovak Association for Cable Telecommunication � The Slovak Association of Electronic Commerce � The Creative Industry Forum � Partnerships for Prosperity � The Business Leaders Forum � Mafra - HNClub � The Slovak Association of Financers � The Slovak Association for Human Resources Management and Development

� SPPR - The Project Management Association of Slovakia � The Slovak Advertising Standards Council � The Slovak Association for Information Security � The Slovak Compliance Circle

� The Association of Business Foundations and Endowment Funds - ASFIN

WAS ALSO AN ACTIVE MEMBER OF THE FOLLOWING INTERNATIONAL ORGANISATIONS:

� The International Telecommunication Union (ITU), as an associate member as part of ITU the standardisation Sector - Study Group 13 - Future networks including cloud computing, mobile and next-generation networks.

� ETNO (European Telecommunications Network Operators Association)

� ETIS (E- and Telecommunications Information Services) � GSM Association Europe (via Deutsche Telekom) � FreeMove Alliance (via Deutsche Telekom).

CORPORATE RESPONSIBILITY



RESPONSIBILITY TOWARDS THE COMMUNITY

RESPONSIBILITY TOWARDS THE COMMUNITYFor years, Slovak Telekom has been of the conviction that responsible business is not support without continuity. There are many requests and thousands of instances where society requires a helping hand.People are foremost and corporate social responsibility activities are aimed at changing the quality of life for those who are affected by our business – i.e, the broader community in which Telekom operates: customers and employees, suppliers and of course – a responsible approach towards the environment.

Large companies such as Slovak Telekom are approached by people and organisations who need help and support, or are looking for a partner for their project on a daily basis. Philanthropic activities focused on community investment and the development of fundraising for non-profit organisations are carried out directly by our company or through the Telekom Endowment Fund at the Pontis Foundation through which funds are distributed through grant mechanisms.

In 2016, €677 163.56 was distributed to 109 projects via the Endowment Fund. In 2017, €755 891.86 was distributed to 117 projects via the Endowment Fund.

Detailed information about all supported projects and activities can be found at www.nadacnyfondtelekom.sk

IN 2016-2017 COMMUNITY SUPPORT WAS CARRIED OUT THROUGH:

� Grant programs � Financial and non-financial gifts � Mobile and static financial collections � Voluntary activities by employees � long-term cooperation with non-profit and partner organisations

One of the most prominent and long-term activities that Telekom seeks to undertake to bring about systematic change in society is support for the hearing-impaired.

Kolacovy graf prvy str 13.pdf 1 8. 7. 2018 11:43:30

Projects supported by assigned 2%

€606 818.08 80 %

Projects supported through gi�s€73 484.58

10 %

Fund management€75 589.20

10 %

Projects supported by assigned 2% Projects supported through gi�s Fund management

HEARING-IMPAIRED

STARTUPS

COMMUNITY DIRECT SUPPORT

LANDMARKS EDUCATION

We have been assisting the hearing-impaired community in Slovakia since 2002

Supporting platforms that assist start-ups

ACTIVE AREAS

We support employees getting involved in the communities where they live

Helping Slovak landmarks through our employee grant program

Interesting and worthwhile projects supported directly

Supporting initiatives that contribute towards improving schooling in Slovakia



Projects supported

by assigned 2%70 % (€473 580.56)

Projects supported through gifts

20 %(€135 000.00)

Fund management

10 %(€68 583.00)



In Slovakia, about 1% of the population is hearing-impaired. This is a serious sense disability that we do not often see on the outside. Some people are born without hearing, others lose their hearing gradually or in adulthood. Most of them have some hearing remaining that they can use in everyday life.

Telekom has been helping the hearing-impaired for more than 15 years; allocating funding to programs that make life easier or help bring about systemic changes, because our vision is a country where the hearing community understands the Hearing-Impaired.

In 2016-2017Slovak Telekom was behind the Mobile Teachers project, during which trained staff visited families with hearing-impaired children

and helped them overcome everyday pitfalls. The project started in 2012 and over five years one hundred families have passed through it - families which have one or more hearing-impaired children under six years of age. The aim of the program was to teach parents how to develop the ability of a hearing-impaired child in their home environment and to facilitate integration into the listening world. Psychologists, speech

therapists, special pedagogues, deaf education specialists and sign language teachers chosen through a selection process regularly visit families once or twice a month.

Through Teach for Slovakia, the Comenius Institute and Edumy, Slovak Telekom supports education in particular. In co-operation with Impact Hub we support social starts-ups, focusing mainly on supporting

projects and activities that stand a chance of bringing about change in our society. A key project in the field of corporate social responsibility and inclusion over the past two years was the start of the Sentient Company project. Training took place during 2017 for a total of 30 front line and back office staff, which had an impact on 700 customer service staff. Employees who come into primary contact with disadvantaged customer groups developed hard and soft skills. Primarily, the project focused on 3 areas:

1) training and the leading of colleagues from customer service towards perceiving the needs and barriers faced by customers from disadvantaged and vulnerable groups.

2) building an inclusive corporate culture - a campaign for all employees to combat prejudice, stereotypes, leading staff to perceive the needs and barriers faced by colleagues and people from disadvantaged groups.

3) Partnership with the Eduma non-profit organisation - From emotion institutional support and collaboration in the context of awareness. The ambition of the project is to move forward with the continuous process of education and to integrate the system into the adaptive process of new employees, as well as in the development training of senior staff and all front line staff.



Because of the nature of our business, Telekom realises that targeted awareness and education should eliminate the risks associated with corrupt behaviour. Every year Telekom organises an Anti-Corruption Day for Employees, where discussions are held with third-sector leaders on issues pertaining to the prevention and treatment of corruption. Slovak Telekom is one of the founders of the Transparent Slovakia Fund and has long supported Via Iuris.

The Employees Helping the Community Grant Program has helped 35 non-profit organisations carry out their projects.

2016-2017 SELECTED ACTIVITIESHelping Landmarks45 projects were involved in the twelfth year of the Telekom Employee Grant Program entitled “Helping Landmarks“. The expert commission committed EUR 30 000, from which 24 projects received financial support of up to EUR 2500. In assessing applications, account was taken in particular of the urgency of reconstruction interventions, the long-term impact of the project and the involvement of other entities. Tematín Castle, Lietavský Castle and Strečniansky Castle for example, were all supported.

Family Assistant Slovak Telekom in cooperation with the Falck SK rescue system extended service availability to further locations in Slovakia that have included this service in their portfolio of care for seniors and people with reduced abilities. In February, the Family Assistant was featured among the nominated projects in the “Mobile Connected Life Awards“ category at the Mobile World Congress in Barcelona.

Helping the Community75 colleagues were involved in the thirteenth year of the “Help the community“ Grant Program. The expert commission designated EUR 30 000.34 projects received financial support of up to EUR 1000. Subsidised organisations are largely represented by school facilities - be they primary or junior schools - which will be able to enrich their activities or improve equipment or premises.



Good Angel partnershipTo mark the 10th anniversary of the Good Angel (Dobrý anjel) non-profit organisation and as part of Telekom‘s marketing activities, an advertising campaign focused on a socially beneficial project was prepared. The television and print campaign was able to convince 6212 customers to elect to spend part of their invoice fee on families whose members have been diagnosed with cancer.

The Sea Hero Quest global launchSlovak Telekom introduced the innovative Sea Hero Quest mobile game, which entertains whilst also helping a good cause – as it is the first mobile game in the world that can help scientists with dementia research. In the first 6 months, more than 2.5 million users downloaded the game from the Deutsche Telekom parent company worldwide.

Bratislava Impact HUB partnershipSlovak Telekom and the Bratislava Impact HUB organised an “Innovation Hack“ – a hackathon for top hackers. Challenges and task solutions were set up with regard to popular products and services. Contestants had 48 hours to submit a complete case study on the selected topic.



No LimitsMagio beach changed into a place with no limits during the summer - the event of the same name, which brought ordinary visitors into contact with people who had some obstacles in their lives. Throughout the event, the Online Live Library was screened – providing the stories of various disabled and otherwise discriminated people to schools, non-profit organisations, and online businesses in the form of videos.

Online translatorOn the International Day of the Deaf Telekom brought the Slovak public the Online Interpreter service. In collaboration with the Pontis Foundation - which runs a contact center for users - the hearing-impaired were able to connect with a professional interpreter online. A specially adapted Mobile Internet L for the hearing-impaired with 15GB of data was added to the Online interpreter service from €0.99 per month. The Online interpreter program had more than 180 registered clients in 2017.

Dibuk Saga reader At the end of 2016, a new product for all book lovers called Dibuk Saga was launched. In addition to being for the common population, the electronic book reader is also intended for people that have a certain form of dyslexia – i.e. difficulty reading and understanding texts. Thanks to the specially developed Dyslexia font, reading for this target group is much more pleasurable.



Anti-corruption daySlovak Telekom regularly tries to open up issues such as corruption and bureaucracy. Every year on December the 9th Telekom organises an all-day Anti-Corruption Day. In 2016 a meeting with Zuzana Čaputova - an activist, lawyer and a member of the Via Iuris civic association was held. In 2017, the topic was power and its abuse with Silvia Ondrisova and Juraj Rizman.

What we contribute towards

Educa�on and young people

Social care Health

Art and culture Humanitarian aid Sport

Other The Environment Economic development

Where we contribute

Throughout Slovakia The Bra�slava region The Prešov region The Žilina region

The Nitra region The Košice region The Banska Bystrica region

The Trenčin region

Who we support

People with health and mental disabili�es The general public

Children and youth Leaders

Students Family

Pensioners The socially disadvantaged

Minori�es Other






RESPONSIBILITY TOWARDS CUSTOMERS

RESPONSIBILITY TOWARDS CUSTOMERSSlovak Telekom has focused on four major areas over the past two years: innovation, the best connectivity, the customer experience, and ambition to have the best TV services on the market. At the same time, the common denominator is a strong emphasis on quality and a professional customer experience.

THE CUSTOMER EXPERIENCE

Slovak Telekom carried out several key activities in the field of customer experience.

The most important new feature in the area of digital services - the new My Telekom portal - was introduced by the company in May 2016. The portal brought customers a clearer way to manage their services and have an overview of consumption.

In the area of the retail network, Slovak Telekom continued to refurbish its stores with the aim of improving the customer experience and unifying store design. The largest number of custom and partner stores to date were rebuilt. All stores have gained Self-service zones designed to help the customer use selected services without having to wait (invoice payment, purchase receipt confirmation, store rating, etc.). In 18 of our own stores customer services that save time were introduced after a successful pilot scheme:

- E-ticket (enabling customers to wait in line before arriving at the store).- Click & Collect (customers can order exclusive merchandise from the website and pick it up right in the closest store in record time).- Meeting reservation (a fixed reservation time with a member of staff without the need to wait).- The number of waiting customers in the store - in the Telekom application, the customer sees the current store situation.

Successful and popular projects for getting closer to the customer included the Telekom on-the-go project (a mobile store). Every year the store visited dozens of towns to bring products and services to all customers.

Another interesting innovation in terms of customer satisfaction was the launch of fixed service compensation during unavailability. All customers with fixed and mobile services in the event of temporary Internet or Telekom downtime received a free replacement solution. If the situation persists, in the event of a failure of a fixed internet connection, Telekom provides unlimited mobile internet for free to the customer for up to two days

CUSTOMER COMMUNICATION

We have committed to adhere to the Advertising Code of Conduct. We make sure that our advertising is above all else true, honest and decent, and in its content and form respects internationally recognised advertising practices developed by the International Chamber of Commerce. At the same time, we adhere to the Advertising Law and the Consumer Protection Act in all advertisements and advertising.

Over the past two years, 5 incentives have been submitted for review regarding our advertising compliance with the Advertising Board Code. The Advertising Board decided in four cases that the complaints were unjustified. In one case, in 2017, the Advertising Board accepted the complainant‘s objections when it found a violation of the Code and



issued a positive arbitration award. The ad was edited after the issue. The latest product offerings as well as the functioning of the company are also known to customers through articles and media deliverables. Every year, Slovak Telekom responds to hundreds of journalistic requests with questions about the different areas of the company‘s activities.

The Telekom CenterOur stores are available to all customers and provide a comprehensive portfolio of voice, data, internet and TV products and services, including attractive devices - mobiles and fixed phones, laptops, tablets and routers etc. Fifty-two Telekom Centers throughout Slovakia feature staff who are regularly trained in Inclusive Care Sentient Company program. The Telekom Center addresses along with contact and operational information are available on our website: www.telekom.sk.

Call center‘sThe role of call centers is to provide customer care services. With the free 0800 123 456 customer line, the customer can recieve complete information about both fixed and mobile portfolio products and can conveniently order or change services.

Technical support and troubleshooting are provided by qualified operators 24 hours a day on the free 0800 123 777support line. The only comprehensive information assistance service in Slovakia that is available to customers NONSTOP – the 1181 Genius Infoline, provides quick responses to the customer for everything and also provides the customer with quick and professional information and answers to any questions. For example, information on travel timetables, telephone numbers, opening hours of offices, banks, insurance companies and other entities, about doctor‘s appointments, sports scores and cinema programs, the winning lottery numbers and the results of sporting events for betters and job offers.

Website and social network2016 was a breakthrough year for Telekom in terms of managing customer incentives on social networks, specifically Facebook. After a few months of operation, Facebook posts rose sharply. Customers “discovered“ on Facebook and the number of posts rose to more than 700 per month, by the end of 2017 this represented about 3,000 interactions monthly.

On the basis of this, a team of specialists was formed to regularly monitor other factors such as response speed and quality.

Gradually, the average response time for posts was reduced to less than 15 minutes, from the original almost 15 hours. Telekom was awarded the “Socially Devoted Company“ certificate from the renowned Sociabakers. A Staffino rating was introduced to help customers express their satisfaction with agents’ approaches.



OBTAINING FEEDBACK

Customer feedback is primarily provided by the International Customer Contact Analysis (ICCA) system, which, through SMS or IVR, conducts customer surveys directly after customers have contacted a call center, a technical line, a Telekom Center, a technician, or had a meeting with a sales representative. This survey covers all of our mobile and fixed service customers. Thus, we have customer feedback available on-line, which gives us the opportunity to react instantly, whether through a change in processes, communications, or the environment in which we come into contact with the customer.

Our main tool for measuring customer satisfaction is the TRI * M survey, which is carried out on a quarterly basis by an independent research agency. The result of this survey is the index of customer satisfaction and loyalty, TRI * M index, which makes it possible to compare not only with other telecommunication operators in Slovakia and Europe, but also with the status of companies within different industries. In Slovak Telekom, we have been using this tool to measure customer satisfaction since 1998.

Slovak Telekom mobile service customer TRI * M index for 2016Resident customers:2016 (81) mobile service customersEuropean average in companies providing mobile telecommunication services (67)Corporate customers:2016 (78) mobile service customersEuropean average in companies providing mobile telecommunication services (66)

Slovak Telekom mobile service customer TRI * M index for 2017Resident customers:2017 (82) mobile service customersEuropean average in companies providing mobile telecommunication services (67)Corporate customers:2017 (66) mobile service customersEuropean average in companies providing mobile telecommunication services (66)

According to the TRI * M customer satisfaction survey conducted in 2017, our company managed to maintain a high level of customer satisfaction. Almost all of the monitored areas achieved above average results compared to the European benchmark.

PRODUCTS FOR DISADVANTAGED GROUPS OF THE POPULATION

People with disabilities, such as deafness or blindness are provided with special facilities and services at discount rates.

The offer includes, for example, a mobile phone equipped with a voice feature for the blind for the price of a standard phone. The installed application can read the content of the screen through a synthetic voice and, if necessary, magnify the mobile phone screen for the visually impaired. Those who prefer a fixed line may take advantage of a cordless phone with enlarged buttons and display. The visually impaired also have free access to information on phone numbers in the form of a 100% discount on calls to the 1181 information service.The discount applies to calls from the Telekom fixed network. Hearing-impaired customers can also receive the Happy XL Program which offers unlimited SMS and MMSes, and unlimited mobile internet for a discount price.



RESPONSIBILITY TOWARDS EMPLOYEES

RESPONSIBILITY TOWARDS EMPLOYEES At Telekom, we strive not only to create a motivating environment for employees but also to maintain a balance between their work and their private life. For example, we offer shortened shifts, home offices, work rotation, flexible working hours, and two days of paid leave, without giving any reason and access to lifelong learning.

EMPLOYEES IN NUMBERS In 2016, Slovak Telekom employed 2 795 internal employees. Data from the last day of 2016 show that the average age of Slovak Telekom‘s internal employees was 41. Of the employees in primary employment at Slovak Telekom approximately 65% were men and 35% were women. 53% of Slovak Telekom employees have university education, with secondary school graduates with a school-leaving certificate at 47 %.

In 2017, Slovak Telekom employed 2 977 internal employees. Data from the last day of 2017 show that the average age of Slovak Telekom‘s internal employees was 41. Of the employees in primary employment at Slovak Telekom approximately 63% were men and 37% were women. 52% of Slovak Telekom employees have university education, with secondary school graduates with a school-leaving certificate at 48 %.

We intentionally and systematically build the awareness of employees regarding the ethical principles applied at Telekom, the Deutsche Telekom Group‘s culture and applicable anti-corruption rules. Between 2016 and 2017 - during the “Start days” - 447 newly recruited employees were trained.

ETHICAL BEHAVIOUR AND CORPORATE CULTURE

Ethical behavior is an important part of business. In 2017, all employees had the opportunity to participate in the Deutsche Telekom international survey. The survey focused on areas such as pushing for violation of rules, or whether senior management and top management were setting an example. The survey was fully anonymous, provided by the independent ESMT Berlin and Hertie School of Governance. Slovak Telekom employees have been guided by the revised Code of Conduct since the end of 2017. Compared to the original version, the revised version brings compaction and reduction of content, clearly arranged ethics rules and a new graphic layout with photographs of

50% of respondents are ready to report a complaint if they

witness unfair practices in their

surrounding

6% of respondents admit that in

business there are reasons for

corruption

65% of respondents think that the

measures taken to detect unfair practices

are adequate

50 %

6 %

65 %




Deutsche Telekom‘s employees. The new Code of Conduct is implemented in all Deutsche Telekom Group companies. Slovak colleagues from the Legal Department, Compliance and Internal Communication participated in the Slovak version of the document..

The Code of Conduct is unified for all Deutsche Telekom Group companies and represents their correlation to the vision, values and strategy of the parent company. Compliance with the Code of Conduct is binding for every employee. Feedback on adherence to the ethics and employee behaviour principles is obtained through the Ethics Line control tool available to all employees as well as external partners. Proceedings for breaches of the Code of Conduct can be addressed by calling 0800 111 711, by post to the Legal and Corporate Affairs Division, Bajkalská 28, 817 62 Bratislava or via e-mail to etickykodex @ telekom.sk.

Employees are a very important asset for Slovak Telekom. For this reason, since 2007, the Security Management Center has existed. All security incidents can be reported to this line, including suspicions of threats to employees.

HOW TO HANDLE POWERIn professional and personal life, we find ourselves in situations where we have a better starting position than others - formal status, experience, intellect or talent. Awareness and correct handling of it is often a decisive competence for our effectiveness, satisfaction and success.

Slovak Telekom realises the need for education and awareness in the field of prevention of corrupt behaviour. Every year Slovak Telekom organises the International Anti-Corruption Day for all staff, where an anti-corrupt behaviour campaign runs throughout the entire company. The event always closes with relevant personalities from the anti-corruption sector, such as Zuzana Čaputová (activist, lawyer and member of the Via Iuris civic association, 2016), Juraj Rizman (Via Iuris, 2017).

TRAINING AND DEVELOPMENT

In 2017, Slovak Telekom implemented 880 internal and external training activities, attended by a total of 7 000 participants. The average cost of training per employee was € 280. The internal trainers who provide frontline development trained 9 900 training hours. In particular, front line staff were intensively trained and developed through e-learning courses (focusing on the field of fixed and mobile products and services, working on internal systems and on the legislative field). 80 new e-learning courses and 53 e-tests were prepared. The number e-learning course participants exceeded 44 000. 2600 e-tests were carried out to verify the knowledge gained.

In order to support the development of leaders, an adaptation development program for new managers of Initial management training

was launched. The aim of the program was to encourage first-time colleagues to find themselves in a new role and to recognise the various management tools that they can translate into their everyday practice. The program consists of several blocks that follow and complement each other. Within a few months, they will find out how important it is to have a team vision and work with subordinates with an emphasis on performance / development / atmosphere. Slovak Telekom depends on the development of talent and therefore continues the implementation of the T-Tank talent program. As part of this program, new talents were added to the group of existing participants



who actively engage in various projects that move business culture a step further. In addition, during the course of the year, the program provided participants group activities related to lectures by interesting speakers.

In 2017, the W-LAB program was first opened up to colleagues with the potential and interest to grow into management positions. During the year, they had the opportunity to work on a management project, attended development activities to support managerial competence and used coaching / mentoring and various networking opportunities.

Within the company, employees are happy to share their knowledge and know-how. In 2017, Telekom created an internal development platform named T-University – which is available for free to all employees and offers various types of training, workshops and e-learning. For individual or team needs tools such as coaching, mentoring, or socio-mapping are available. Of course, the individual development of people is agreed upon by their superiors..

REMUNERATION AND EMPLOYMENT BENEFITS

Over the last two years, Telekom has simplified the hierarchical structure of employees as well as the setup of the compensation scheme.The half year evaluation period was extended to annual.

Changes in the reimbursement scheme were made in light of the situation on the Slovak remuneration market. Company employees were remuneration based on individual performance and with respect to meeting corporate goals. All our core employees were included in the performance management system, whereby they receive feedback on their performance and are familiar with the possibilities of their further development and careers.

Among the benefits employees are entitled to are: supplementary pension insurance, luncheon vouchers fully paid by the company, days off for selected instances (extra holidays, marriage, or death of a family member) and sick pay under the Collective Bargaining Agreement and for two extra days off per year. For employees, we prepare various events

where family members can also participate.

We continue to offer low-hour jobs, home office, shift rotation and flexible working hours.

HEALTH AND SAFETY IN THE WORKPLACE Slovak Telekom pays constant attention to health and safety at work (OSH). OHSAS 18001 has been in place for many years. The basis is prevention, thorough control, cyclical education and raising overall staff awareness of OSH.

At the corporate level, the OSH Commission is responsible for overseeing health and safety at work. The Commission was appointed by executive management in accordance as per the law of the National Council of the Slovak Republic on health and safety at work. 124/2006 Coll. § 20 and also as per an internal directive for occupational health and safety at Slovak Telekom. The Commission‘s OSH is made up of employers ‚representatives (between 25 and 50%) and the majority is composed of employees‘ representatives, i.e. trade union representatives.

We cooperate with two trade unions: the Slovak Post and Telecommunications Trade Union and the Telekom Trade Union. The Collective Labour Agreement, Section III, Paragraph 10, provides for cooperation with trade union representatives in applying all measures aimed at ensuring health and safety at work in Slovak Telekom. The internal directive for OSH approved by the management assurance in Slovak Telekom specifies, in Article 8, the rights of trade union bodies in inspections, collection of information, participation in negotiations and in assuring OSH.

Trade union bodies cooperate as per OSH:- Allocating personal protective equipment, cleaning and washing agents and protective drinks- Participation of trade union representatives in inspections of the working environment and working conditions, in inspections performed by state administration authorities, in the investigation of occupational injuries, and in complaints concerning employee health and safety.

- Inspections performed by the trade union’s work safety inspector, alcohol and extraordinary inspections- Committee comments on all internal regulations to assure OSH- Training of employee representatives in OSH regulations, held once every two years- The right to refuse dangerous work, as laid down in Article 7 of the internal directive for OSH assurance at Slovak Telekom

Number

Total number of injuries 9

Total number of work related illnesses 0

Number of days lost due to injuries 270

Total number of absences (excluding holidays, studies, maternity / paternity leave, family member treatment) 15 138

Absence ratio (percentage of absences against the total number of working days) 2,053 %

EMPLOYEE CARE

Every year, Slovak Telekom implements a Health program. In 2017, the program was focused on supporting self-care, and 2606 employees participated in its activities. These included healthy working conditions, accident prevention, healthy nutrition and physical activity for employees.

During the specific days (Health Week, Sports Technician Day, Health Days), employees were able to participate in basic vital function tests (BMI, blood pressure, body fat, blood glucose, blood grouping), CO measurements in the lungs and blood, health tests and measurements from blood samples (cholesterol, haemoglobin, body fat), eye tests, examination of skin pigment, dental hygiene, psychological counselling, various therapies (back massage, carpal tunnel, paraffin wraps, sonar therapy) , where they received a multitude of information about healthy nutrition and health, and were refreshed with healthy drinks and delicacies. They also attended interesting lectures on the latest trends in




nutrition and healthy lifestyles. For example, topics such as how stress can cause exhaustion, affect sleep and health, how to manage stress and stressful situations, and discover the true cause of illness, a back school with a physiotherapist, the basics of running etc. Employees were also trained in first aid skills. Other activities included donating blood directly in the workplace, providing vitamin packages for all employees, providing first aid packages for technicians, and vaccinating vulnerable groups of employees. Through the Health Program, we strive to increase our interest in promoting health and maintaining a healthy lifestyle for our employees.

In the context of interconnection of work and leisure activities we organise a meeting of employees from all over Slovakia at least once a year. We also invite parents to take part in maternity and parental leave, which they are happy to do. Employees on maternity and parental leave have other benefits available. They can use discount coupons for fixed and mobile services, a mobile phone, and regular subscriptions to the corporate magazine.

EMPLOYEE RESEARCH AND DIALOGUE

Company management has traditionally met with managers at regular management meetings and with employees at the Roadshow, which employees could watch on the intranet (and later in the form of a video). The purpose of the meeting was to present all the essential economic indicators, present the goals and strategy of the company, as well motivate employees for the upcoming period. Closer contact and communication on the part of employees - not only with top management - strengthens the new Workplace communication platform the company has introduced. Workplace is a Facebook intranet product. Inside, employees have up-to-date information about real-time business events, can share feedback, read the opinions of management and even discuss it with them.

In close cooperation with Czech T-Mobile, we made more digital tools available to our employees to enable remote cooperation. Employees also communicate via webex, use Cisco screens and virtual conferencing. There are also digital flipcharts available that allow you to transfer illustrated content to screens in other locations. Effective remote collaboration has been supported by a series of development workshops on the subject.

The space for dialogue between colleagues and superiors comes courtesy of teambuilding activities that support the work team and its performance. The respective selection and focus are mainly driven by the needs of a particular team, as well as the goal it wants to achieve.



This means that meetings have not only a fun element, but also a developmental one – be it a specific business topic, a professional workshop, social mapping or team coaching and so on. The link between teambuilding activities and volunteering remains the most sought after means for implementation.

Employees are engaged twice a year in employee surveys conducted throughout the Deutsche Telekom Group. In 2017, it was once again possible to address individual areas, focusing on overall satisfaction, understanding the strategy, brand pride, work awards, development opportunities and so on. The company also participated in surveys for the NAJ employer of the year, ranking 1st in the IT and Telecommunications category.

In 2017, Telekom first introduced the Rola Manager‘s survey - a tool through which employees give feedback on the work of their supervisor. Questions are directed at specific leadership competencies, according to which our management staff is evaluated. Thanks to the input from their subordinates, they receive a report that affects not only their annual performance evaluation, but also serves as a basis for their further development.

THE EMPLOYER BRAND

In 2017, Slovak Telekom focused on raising awareness of the employer‘s brand. At the same time, the company focused on Generation Y, through lectures at schools and events, as well as personal experience with employees, and supports several non-profit and student organizations. One of the projects supported by IT is Aj Tz v IT (You too in IT), which aims to raise awareness of the study of the IT amongst girls and stimulate their interest in learning. In 2017, Slovak Telekom traditionally participated in a career event for students known as Night Of Chances Business and Technology (sic). In cooperation with the Nexteria organisation, the Nexteria Leadership Academy was prepared for a semester project that provided the opportunity to work on real case studies.

In 2017, we continued our own development activities for students. In November, our well-established tradition was repeated with the 12th

T-Day Conference for High School Students. In cooperation with the Alliance for Youth in Slovakia Telekom organised the Big Step event for the first time. The purpose of the event was to show students the backstage of the company, to get them acquainted with the themes we work with at the company and to outline, for example, the possibilities after finishing school. Several students took part in the Trainee program, in order to find the most suitable adepts with the potential for growth and to educate our future colleagues.



Number of staff on contracts 2016 2017 Men 71 74 Women 88 91Total 159 165

Number of workers on contract 2016 2017

Banská Bystrica 4 4Bratislava 56 72Košice 32 18Martin 1 3Nitra 4 12Poprad 2 3Prešov 2 3Senica 1 0Trnava 1 1Zvolen 1 2Žilina 55 47spolu 159 165

Regional full-time staff 2016 2017

Bánovce nad Bebravou 1 1Banská Bystrica 158 158Banská Štiavnica 1 1Bardejov 3 4Bratislava 1409 1426

Brezno 3 4Bytča 2 2Čadca 5 6Dolný Kubín 6 5Dubnica nad Váhom 2 3Dunajská Streda 4 4


Galanta 56 72Hlohovec 32 18Hnúšťa 1 3Humenné 4 12Kežmarok 2 3Komárno 1 0Kopčany 1 1Košice 1 2Kráľovský Chlmec 2 1Krompachy 1 1Levice 10 10Levoča 1 1Liptovský Mikuláš 8 7Lučenec 10 11Malacky 8 7Martin 8 9Medzilaborce 1 1Michalovce 15 16Modra 2 2Moldava nad Bodvou 2 2Námestovo 1 1Nitra 126 140Nové Mesto nad Váhom 2 2Nové Zámky 17 18Partizánske 3 4Piešťany 9 13Poltár 1 1Poprad 35 37Považská Bystrica 10 11Praha 1 1Prešov 39 45Prievidza 18 20Púchov 2 2Raslavice 1 1Revúca 2 2Rimavská Sobota 7 9


Rožňava 7 8Ružomberok 8 9Sabinov 1 1Senec 5 5Senica 16 16Sereď 1 1Sobrance 1 1Spišská Belá 1 1Spišská Nová Ves 13 16Stará Ľubovňa 1 1Svidník 6 5Šaľa 0 1Tajov 1 1Topoľčany 11 10Trebišov 2 2Trenčín 44 45Trnava 36 41Turčianske Teplice 1 1Veľký Krtíš 4 4Vráble 1 1Vranov 4 5Vrútky 7 9Zlaté Moravce 2 2Zvolen 23 26Žiar nad Hronom 14 15Žilina 313 363 Total 2796 3016

Number of part-time staff 2016 2017

Man 5 10 Women 12 22 Total 17 32




RESPONSIBILITY TOWARDS SUPPLIERS AND BUSINESS PARTNERS

As one of the largest corporate purchasers of goods and services in

Slovakia, we conduct procurement through centralised organisational

units responsible for purchase, the task of which is to ensure the most

favourable conditions for the purchase of goods and services are

obtained. Our goal is to perform the entire process of supplier selection

electronically. In the supplier selection process we place the emphasis on

transparency and quality in addition to optimal purchasing conditions.

Between 2016 and 2017, Slovak Telekom held relations with more than

3 300 suppliers, with the major challenges being the gradual transition

to a new ERP system and the digitalisation of the purchasing process in

relation to suppliers.

The purchasing process, as with other processes, falls within the

Integrated Management System certified according to ISO 9001,

ISO 14001, as well as ISO 27001. The basic roles of the internal control

system implemented in accordance with ICS (Internal Control System)

standards include establishing a transparent control environment to

prevent any possible attempts to manipulate the company’s financial

data.

Potential suppliers are invited to e-tenders and auctions, which serve to

increase the transparency of purchases; therefore today we are among

the leaders in this field in Slovakia as well as in the global Deutsche

Telekom Group. In the event that sensitive information is part of the

communication during the tender, non-disclosure agreements, or a

declaration of confidentiality in accordance with the Directive on the

protection of information is signed with the participants. The tender

details themselves are subject to commercial confidentiality. Adherence

to the principles of accountability to the competition is included in the

basic documents as the Code of Conduct and other guidelines regarding

ethical behaviour.

The level of service and quality regarding deliverables of essential

commodities from suppliers is regularly audited. Transactions are

documented and archived in accordance with our registry and archival

policy. The likelihood of attempts to collude are eliminated through the

four-eyes principle and compulsory segregation of powers that serves to

prevent conflicts of interest.

Regarding trade partners, we prefer those certified in their respective

field. Additionally, we make sure that regulations and standards

applicable in the European Union are complied with and that business is

ethical and in compliance with the applicable laws of the Slovak Republic.

Moreover, we carry out extended assessments of selected suppliers, with

the focus being on the safety and environmental impact of their business

activities, as well as some aspects of the business that are perceived

sensitively by global community (for example; the exploitation of child

labour etc.).




RESPONSIBILITY TOWARDS THE ENVIRONMENT

Slovak Telekom, as the largest Slovak provider of telecommunication

services, aims to continuously improve in the area of business and the

provision of quality services for its customers and, in line with Deutsche

Telekom Group parent company strategy - to behave in a socially and

environmentally responsible manner. In doing so, we make considerable

effort, as evidenced by the regular and successful retaining of certificates

as per ISO 14001 norms aimed at verifying the functionality of the

environmental management system in the organization.

Slovak Telekom endeavours to adhere to the principles of sustainable

development into its everyday life and to assess the planned and also

implemented activities with respect to environmental protection, and this

approach is also required of our suppliers.

Slovak Telekom is also active in the field of international cooperation and

works closely with the Deutsche Telekom Group and is also a member

of the European Telecommunications Operators’ Association (ETNO).

By joining the Charter of Corporate Social Responsibility, the European

Telecommunication Operators Association has confirmed the desire to be

a responsible company in relation to all the entities affected by it, whether

in the social, economic or environmental spheres.

In line with its Integrated Management System Policy, Telekom continually

strives to improve the environment and mitigate the negative impact of its

business activities on its individual components.

WATER MANAGEMENTOne of the most important areas of environmental care is water

conservation and rational use of water resources. In Slovak Telekom’s

conditions, we focus in particular on the economical use of sewage water,

the operation of individual buildings and the provision of drinking water

for employees. Additionally, compliance with regulatory requirements

for the quality of water that is discharged from our own cleaning facilities

(sewage treatment plants, grease traps and oil traps). The quality of the

waste water discharged through the above-mentioned cleaning facilities

is regularly checked by means of sampling and analysis by companies

accredited for these activities. Mostly, this is the discharge of sewage,

i.e, used water from dwellings and services, in particular from the human

metabolism. Precipitated water (surface water runoff) is discharged from

the grounds or from the outside of the buildings by an internal sewerage

system where, if necessary, custom cleaning devices (oil traps) are

installed.

Proper regulation and regular inspection of the cleaning process as well

as the maintenance and operation of water management facilities

Slovak Telekom water consumption 2013 – 2017:

in accordance with valid regulations may directly or indirectly affect the

quality of surface and underground water. In 2016 and 2017, increased

attention was paid in particular to maintenance of the condition of older

equipment.


Year Water from public supplies (m3)

Water from company resources (m3)

Bottled water(m3)

Total consumption(m3)

2013 71 943 3 300 101 75 344

2014 69 498 1 699 43 71 240

2015 65 656 1 993 13 67 662

2016 52 829 1 376 12 54 217

2017 39 597 746 12 40 355


shutterstock.com



Covering water requirements in Slovak Telekom facilities is mainly from

public water mains, to a lesser extent water from our own sources and

bottled water.

Due to the optimisation of processes and the access to water, the decline

in the total amount of water consumed has been maintained over the

last few years. Over the past five years, total water consumption has

been reduced by almost half. In 2016, compared with 2015, the total

consumption was reduced by 20% and the next year up by approximately

26%. The most significant share in the fall in our own water consumption

in 2016 - 2017 was recorded by using water from our own resources (un-

derground and surface water) - by more than 45%. This decline caused a

reduction in operating activities in one of the buildings. As a result of the

fall in water consumption from our own resources, the share of water ta-

ken from public water mains increased year-on-year, but the total amount

of water taken from public sources declined.

0

10000

20000

30000

40000

50000

60000

70000

80000

2013 2014 2015 2016 2017

3m v ydov abertopS

Year

Slovak Telekom water consumption 2013 – 2017:

Water from public water supplies Water from own sources Bottled waterSource: Slovak Telekom

shutterstock.com



The basis for this assessment is formed by data obtained from deduction

from the designated meters and the quantity of bottled water used.

Consistent monitoring of water consumption and monitoring of its spatial

and temporal distribution provides a prerequisite for further reduction of

consumption.

An important factor influencing the economical use of water resources is

in particular the technical condition of the equipment used and consistent

maintenance and regular renewal by Slovak Telekom eliminates natural

losses, thus contributing to water resource conservation.

The behavior of employees is also an important factor in the effective use

of individual water resources. In this context, it is necessary to highlight

the popular internal information campaigns on the issue that are organi-

sed to increase the environmental leadership of the company‘s employe-

es who have an important share in reducing the consumption of all types

of energy and the media. Increasing environmental awareness was also

one of the goals for 2016 and 2017 , and, as you can see, it was positive

for water consumption.

Water source 2016 2017

Amount (m3) Total consumption share (%) Amount (m3) Total consumption share (%)

Voda z verejných vodovodov

52 829 97.44 39 597 98.12

Podzemná voda 1 109 2.05 652 1.62

Povrchová voda 267 0.49 94 0.23

Voda balená 12 0.02 12 0.03

Celková spotreba vody 54 217 100 40 355 100

0

10

20

30

40

50

607080

90

100

Water from public water supplies

Underground water Surface water Bottled water

97.44

2.05 0.49 0.02

98.12

1.62 0.23 0.03

% ybertops jevoklec z leidoP

Telekom water consumption 2016 – 2017:

2016 2017

Zdroje oberu vody ENGL.pdf 1 13. 8. 2018 11:31:45

Source: Slovak Telekom (data obtained from deduction from the designated meters and the quantity of bottled water used)


Slovak Telekom water consumption sources 2016 – 2017:



PROTECTION AGAINST MISCELLANEOUS POLLUTANTSWater and soil are the most vulnerable components of the environment

which may be potentially at risk in terms of Slovak Telekom‘s conditions,

in particular regarding polluting substances used in the operation of

supporting technology. Such polluting substances are mainly petroleum

based (mainly used in the operation of substitute power sources), acids

and heavy metals (batteries in particular).

There is considerable effort on the part of Slovak Telekom to prevent

undesirable environmental impacts that can arise when dealing with

polluting substances.

Slovak Telekom has shifted its efforts to end the operation of all single-

shell underground tanks for the storage of propellants for substitute

power sources which pose a potential risk of groundwater and surface

water pollution due to their location for many years. Within the framework

of water quality conservation, targets were set for 2016 and 2017,

whereby each year least one underground tank was selected. In 2016,

one such tank was removed and two underground tanks were removed in

2017. The aforementioned activities also succeeded in fulfilling the long-

term goal of ending the operation of all single-shell underground tanks.

Preventive measures in the field of water conservation at Slovak Telekom

do not end with the removal of the underground tanks.

Another objective in the area of water quality conservation was to reduce

the number of installations handling liquid pollutants by 2016 by 10,

and by 2017 by compared to the previous year. A systematic approach

to reassessing the effectiveness of the use of installations containing

liquid pollutants made it possible to exceed the target set for two years. In

2016, the operation of installations containing pollutants in 15 plants was

successfully terminated and in10 more plants in 2017.

In addition to the set goals, Slovak Telekom is fully responsible for the

operation of the existing facilities. As part of the preventive action against

surface and groundwater pollution, Telekom has also continued in the

past years to implement measures to improve accident prevention against

the release of pollutants from the fuel and cooling systems from motor

generators as well as during handling.

The above-mentioned objectives and the measures taken are the result of

long-term efforts by the company to reduce the risk of endangering water

quality to a minimum.

Náhradný zdroj elektrickej energie (Zdroj: Slovak Telekom)



WASTE MANAGEMENTThe negative impact of the functioning of modern society is the increase in

the volume of waste that threatens living conditions and also affects the prices

of products and services. One tool to reduce waste growth is efficient waste

management. Waste management is an activity aimed at preventing and

reducing waste and reducing its negative environmental impact. At Slovak

Telekom, waste management is an important part of the effort to reduce the

negative impact of its own activities on the quality of the environment. Slovak

Telekom takes care of the produced waste, taking care of the environmental

aspect of the business. Waste is separated and recycling is prioritized.

Subsequently, the waste is transformed into a secondary raw material and

thus put back into the production process

When dealing with waste, Slovak Telekom strives to act in accordance with

the waste management hierarchy. This is evidenced by the fact that 95% of all

waste generated in 2016 was recovered (material or energy). In 2017, more

than 92% of the waste was recovered.

In 2016, compared with 2015, total waste production increased by 27%,

with a 42% increase in hazardous waste production and by almost 25%

in the production of other waste. This situation was caused by the main

implementation of the new Act no. 79/2015 Z.z. on waste, and continuing the change of fixed technology in order to increase the quality of services and

reduce energy consumption. The new Waste Act brought about a change in the designation as the producer of waste from construction and demolition,

where it was clearly determined that the originator of such waste was the

entity for whom the work is carried out. For this reason, Slovak Telekom was

the origin of the generated waste from the beginning of 2016. This was waste

generated by the total production of other waste, namely 1 093 tonnes of

waste, representing 36% of the production of other waste in 2016. In 2017

compared to 2016 total waste production fell by 30%, with a 43% decline

in the production of hazardous waste and almost a 28% decline in the

production of other waste. The reason for the decline was the decline in fixed

technology changes and a decrease in investment stocks.

Type of waste 2013 2014 2015 2016 2017

Hazardous 213 151 310 440 249

Other 2 055 1 875 2 413 3 024 2 177

Total 2 268 2 026 2 723 3 464 2 426

0

500

1 000

1 500

2 000

2 500

3 000

3 500

2013 2014 2015 2016 2017

Slovak Telekom waste production 2013 – 2017 in tonnes

Hazardous waste Other waste

Produkcia odpadu celkova ENGL.pdf 1 13. 8. 2018 11:41:00

Slovak Telekom waste production 2013 – 2017 in tonnes





Slovak Telekom Waste recovery and disposal methods 2013 - 2017

Year 2013 2014 2015 2016 2017

Handling method Amount (t) % Amount (t) % Amount (t) % Amount (t) % Amount (t) %

Recycled 1 386.13 61.10 1 352.39 66.74 2 124.71 78.01 2 880.26 83.15 1 943.76 80.10

Landfills 659.02 29.05 296.96 14.66 206.31 7.58 183.60 5.30 180.03 7.42

Energy value 210.10 9.26 374.44 18.48 353.80 12.99 340.20 9.82 290.44 11.97

Re-use 2.96 0.13 2.14 0.11 12.98 0.48 3.60 0.10 7.08 0.29

Biological processing

8.68 0.38 0.05 0.00 3.52 0.13 18.23 0.53 3.34 0.14

Phys./chemprocessing

1.77 0.08 0.29 0.01 22.11 0.81 38.00 1.10 1.97 0.08

Spolu 2 268.65 100.00 2 026.25 100.00 2 723.43 100.00 3 463.89 100.00 2 426.62 100.00


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Recycling80 %

Physical - chemical

processing 0.08 %

Biological treatment

0.14 %

re-use 0.29 %

Energy recovery 11.97 %

Storage 7.42 %

Slovak Telekom Waste recovery and disposal methods 2017

Source: Slovak Telekomshutterstock.com



In 2016 and 2017, it was obviously preferable to give priority to recycling waste

above disposal. Other waste, compared with 2015, the rate of recycling waste

produced increased on average by more than 3% and maintained a level above

75 percent.


0

0

0

0

0

0

0

0

0

0

Re-use Recycling Biological treatment

Energy recovery

Storage Physical - chemical processing

0.00

82.12

0.60

11.256.03 0.000.00

78.40

0.15

13.34 8.12

0.00

Slovak Telekom Waste recovery and disposal methods 2016 – 2017 in %

2016 2017

00000000000

Opätovnépoužitie

Recyklácia Biologickáúprava

Energetickézhodnotenie

Skládkovanie Fyz.-chem.spracovanie

0,82

90,24

0,05 0,00 0,268,63

2,84

95,01

0,03 0,00 1,33 0,79

Spôsoby zhodnotenia resp. zneškodnenia nebezpečnéhoodpadu v Slovak Telekome v rokoch 2016 - 2017 v %

2016 2017


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Since 2013, more than 1181 tonnes of underground telecommunication

network lines have been selected in Slovak Telekom for subsequent

recycling. In 2016 and 2017, Slovak Telekom‘s goal was to select 360

tonnes of underground network lines. This target was met at a level of

121%, as Telekom was able to select and recycle more than 437 tonnes

of unused network lines and 100% recycling of electrical waste and

lead - acid batteries was achieved. In 2016 and 2017, more than 768

tonnes of electrical waste and 469 tonnes of lead batteries were collected

and evaluated.

At its stores, Slovak Telekom fulfilled the obligations for distributors

of electrical equipment and portable batteries, where it provided free

recollection of electrical waste and used batteries. In 2016 and 2017,

Telekom managed to collect for example more than 222 kg of portable

batteries and 979 kg of used mobile phones and other electrical devices.

As an importer of dedicated products, Telekom has fulfilled its obligations

under the Waste Act and through its partners - SEWA and NATUR-PACK

producers‘ responsibility organisations - has complied with the limits of

collection and treatment of electrical waste and electronic equipment,

batteries, packaging and non-commodity products.

0102030405060708090

100

Re-use Recycling Biological treatment

Energy recovery

Storage Physical - chemical processing

0.82

90.24

0.05 0.00 0.268.63

2.84

95.01

0.03 0.00 1.33 0.79

Slovak Telekom Waste recovery and disposal methods 2016 – 2017 in %

2016 2017







AIR CONSERVATION

A variety of pollutants that have an adverse impact on the environment are fed into the atmosphere as the result of human activity, Impaired air quality damages ecosystems and leads to various health problems, which in turn manifest as respiratory diseases. Air pollution is a global problem and it is therefore necessary to take steps to prevent the formation of pollutants and to eliminate their total quantity in the air.

At Slovak Telekom, emissions of pollutants arise mainly through the use of motor vehicles for the transport of persons and materials, the combustion of natural gas, or indirectly by electricity and heat for district heating.

The intention of Slovak Telekom to reduce the amount of natural gas consumed for heating and hence the amount of pollutants emitted into the air is fulfilled year after year. In 2017 compared to 2016, 531 417 kWh of natural gas was saved, which represents a decrease in consumption by approximately 4%.

Introduced measures to reduce gas use have produced the desired result. The reduction of gas consumption has been positively reflected through the regulation of heating systems as well as controls aimed at observing the maximum set temperatures, especially in unused spaces. The centralisation of the used premises and employees into one part of the property, with its unused part only being tempered, has the same positive effect on the decrease in consumption. Savings in gas consumption were also contributed to by the replacement of boiler windows and refurbishment associated with the renovation of old boilers with new ones with higher efficiency. Space for further savings can be found by increasing the energy efficiency of buildings - in thermal insulation of the building envelope and in the continuation of window replacement.

Year Gas (kWh) Y/Y Savings-growth

2013 15 138 951 94.78 % -5.22 %

2014 12 999 777 85.87 % -14.13 %

2015 12 532 539 96.41 % -3.59 %

2016 12 326 763 98.36 % -1.64 %

2017 11 795 346 95.69 % -4.31 %



0

2 000 000

4 000 000

6 000 000

8 000 000

10 000 000

12 000 000

14 000 000

16 000 000

2013 2014 2015 2016 2017

15 138 951

12 999 777 12 532 539 12 326 763 11 795 346

Gas

(kW

h)

Year

Slovak Telekom gas consumption 2013 – 2017:

Slovak Telekom gas consumption 2013 – 2017:



Another major producer of air pollutants is transport. Slovak Telekom

uses diesel fuel and gasoline to drive vehicles, and in recent years also

compressed natural gas - CNG, but has gradually dropped this due to

fleet changes and the limited availability of gas stations.

Slovak Telekom has managed to maintain the trend set in the drop

in petrol consumption over the last 5 years. In 2016, Slovak Telekom

consumed 9% less gasoline than it did in 2015. In comparison with 2016,

petrol consumption decreased by 1% in 2017 and by 19% by 2013.

The increased need to use motor vehicles to improve telecommunication

services and to modernise technologies reflected a moderate increase

in diesel consumption in 2017. However, it is still possible to conclude

that the downward trend in fuel consumption is being maintained Diesel

fuel is used in addition to fuel for motor vehicles and for emergency

power sources - motor generators. Compared to the amount consumed

in transport, however, this consumption is negligible, and because it

depends on a power failure occoring, it is also difficult to influence.

The burning of fuels such as petrol, diesel, CNG releases pollutants, such

as carbon dioxide, sulphur oxides, nitrogen oxides, carbon monoxide,

particulates and organic substances into the atmosphere. As a result of

the efforts made to implement austerity measures aimed at reducing the

consumption of fuels from non-renewable resources - in particular natural

gas - the quantity of pollutants produced at a stable level was kept.

0

200 000

400 000

600 000

800 000

1 000 000

1 200 000

2013 2014 2015 2016 2017

1 112 0091 027 869 1 001 343

914 492 902 774

1 031 716959 690

1 042 019 1 031 5091 076 339

1 485 832 357 260 0

Spot

reba

Year

Slovak Telekom transport fuel consumption 2013 – 2017:

petrol (litre) diesel (litre) CNG (kg)

Year Petrol (Liters) Diesel (Liters) CNG (Kg)

2013 1 112 009 1 031 716 1 485

2014 1 027 869 959 690 832

2015 1 001 343 1 042 019 357

2016 914 492 1 031 509 260

2017 902 774 1 076 339 0

Slovak Telekom transport fuel consumption 2013 – 2017:





The following table lists the quantities of fumigants produced by consu-

ming fossil fuels

Key: SP - Solid pollutants

SO2 - sulphur oxides expressed as sulphur dioxide

NOx - nitrogen oxides expressed as NO2

CO - carbon monoxide

VOC -organic gases and vapours expressed as total weight

TOC - organic gases and vapours, expressed as total organic carbon

The quantity of individual pollutants discharged was calculated for TZL,

SO2, NOx, CO, VOC and TOC based on the yearly consumption combus-

tion medium and general emission factors for pollutants when burning

substances published by the Ministry of the Environment SR in its journal.

Emission label - year SP (kg) SO2 (kg) NOx (kg) CO (kg) VOC (kg) TOC (kg)

2013 3 179.04 48.78 13 961.14 2 176.24 426.24 350.03

2014 2 471.10 45.07 10 250.29 2 100.96 387.50 317.79

2015 2 430.99 43.80 10 003.05 2 029.96 373.53 306.46

2016 2 318.67 42.07 9 583.69 1 955.77 360.30 295.60

2017 2 354.71 42.17 9 648.96 1 947.87 358.03 293.74

Produced Pollutant Emissions by Consumption of Fossil Fuels in 2013 - 2017

Zdroj: Slovak TelekomSource: Slovak Telekom

shutterstock.comshutterstock.com



In order to compare the energy consumed directly by Slovak Telekom’s

combustion of various fossil fuels (non-renewable energy sources), a

conversion to common energy units – gigajoules (GJ) is used.

As a result of the efforts made to implement austerity measures aimed

at reducing the consumption of non-renewable fuels, Slovak Telekom

managed to reduce its energy consumption by less than 4% in 2016

compared to 2015 and to maintain this level of consumption in 2017.

Year- fuel Natural gas (GJ) Diesel (GJ) Petrol (GJ) CNG (GJ) Total (GJ)

2013 54 500 39 193 37 283 81 131 057

2014 46 799 35 190 37 588 45 119 622

2015 45 117 38 412 36 723 19 120 271

2016 44 376 37 931 33 489 14 115 810

2017 42 463 39 647 32 929 0 115 039

Slovak Telekom energy consumption 2013 – 2017 from non-renewable energy sources


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CLIMATE CHANGE

Increasing average temperatures, long-term dry weather, extreme rainfall, rising occurrences of fire, glaciers melting and rising sea levels are consequences of climate change, which is also due to an increase in the concentration of greenhouse gases in the atmosphere, which is contributed significantly to by human activity. The main greenhouse gases that most affect climate change are carbon dioxide, methane, chlorofluorocarbons, ozone and water vapour in the atmosphere.

In 2015, an international conference was held in Paris, which adopted the UN Framework Convention on Climate Change (known as the Paris Agreement). The Convention established a commitment to reduce global warming to a maximum of 1.5 ° C compared to the pre-industrial age (pre-1850).

The Deutche Telekom Group, of which Slovak Telekom is part, has long strived to reduce greenhouse gas emissions. To this end, for a number of years, a number of measures have been put in place, focusing in particular on enhancing energy efficiency and the use of renewable energy.

In the last 5 years, the lowest electricity consumption was in 2016, when

compared to 2015, electricity consumption decreased by about 5%, and by comparison with 2013 and 2016, by as much as 19%. The target set for 2016 in terms of to reducing total electricity consumption by 1 250 MWh compared to 2015 was met with electricity savings of 4 410 MWh compared to 2015. Measures taken, such as the dismantling and decommissioning of old telecommunications technologies and their replacement with more energy efficient ones, installing LED lighting,

optimising support technologies and trails of the photovoltaic power supply to network components have made this a positive result.

In 2017, compared with 2016, electricity consumption grew slightly - by less than 1%. The growing number of customers and their rising demands on the operation of telecommunication networks result in higher demands on electricity consumption. Nevertheless, thanks to the modernisation of the

Year Electrical energy (MWh)

Electrical energy (GJ)

2013 115 200 414 720

2014 108 955 392 238

2015 97 451 350 823

2016 93 041 334 948

2017 93 803 337 690

Slovak Telekom 2013 - 2017 Electricity consumption

0

20 000

40 000

60 000

80 000

100 000

120 000

2013 2014 2015 2016 2017

MW

h

Year

Slovak Telekom electricity consumption2013 - 2017



RES Electricity



telecommunication technology, these energy demands were limited to an acceptable degree.

Since 2014, Slovak Telekom has also used green electricity, that is to say energy from renewable sources. As shown in the accompanying chart, Slovak Telekom increases the share of electricity from renewable sources from one year to the next. While in 2016 renewable energy accounted for 36% of total energy consumption (33.7 GWh), in 2017 it was already more than half - up to 57% of total energy consumption (53.8 GWh), which represents a year-on-year increase of 37%.

For several years already, Slovak Telekom has used solar water collectors for the production of hot water, which is used to generate an average of about 52 GJ of energy per year.

The amount of heat that can be saved on the district heating of a building is affected by the heated area, the energy efficiency of the building, the outside temperature, and also the length of the heating period. From these factors, only the energy efficiency of the building can be influenced by, for example, hydraulic regulation of the heating systems, the installation of thermostatic heads, the redistribution of employees or compliance with the set maximum temperature. The effort expended in implementing austerity measures has resulted in a significant reduction

in heat consumption. In 2016 and 2017 compared to the previous year this represented savings of approx. 8%. When compared to 2013 and 2017, the heat consumption for heating was reduced by more than half (by 54%).

For 2017, Slovak Telekom set the goal of reducing heat and gas consumption per employee below 6.8 MWh and by 2020 to reduce the average heat and gas consumption per employee below 6.5 MWh. By reaching 6.2 MWh per employee in 2017, not only the short-term, but also the long-term goal was achieved.

Year Heat (MWh) Heat (GJ)

2013 12 669 45 607

2014 7 885 28 388

2015 6 833 24 598

2016 6 312 22 725

2017 5 834 21 001


Slovak Telekom 2013 – 2017 central heat consumption

0

2 000

4 000

6 000

8 000

10 000

12 000

14 000

2013 2014 2015 2016 2017

12 669

7 8856 833 6 312 5 834

MW

h

Year

Slovak Telekom district heating consumption 2013 – 2017




Further heat savings were also be achieved by improving the technical condition of older buildings where construction materials that cause heat loss had been used.

Total energy consumed represents energy consumed directly by Slovak Telekom by using fossil fuels for heating, transport and motorgenerators,

and indirectly, by drawing electricity and heating for district heating.Over the period of 2013 to 2016, there was a steady decline in overall energy consumption. In 2016, approximately 5% of the total energy

consumed was saved. In 2017, the value of total energy consumed remained virtually unchanged, but overall, for the period from 2013 to 2017, energy consumption decreased by almost 20%.

For the calculation of the total energy consumed, kWh, MWh, liters and kg per GJ were used. Data from individual energy producers based on the consumption of the respective medium was used.

Total Slovak Telekom 2013 - 2017 energy consumption

0

100 000

200 000

300 000

400 000

500 000

600 000

2013 2014 2015 2016 2017

591 436

540 300 495 744473 535 473 782J

G v eigrene abertopS

Year

Total energy consumed by Slovak Telekom 2013 - 2017


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An increase in the share of energy from renewable sources significantly contributed to a reduction in the amount of carbon dioxide emissions. Compared to 2016, emissions of up to 3 860 tonnes of CO2 were lower in 2017. By increasing the share of energy from renewable sources along with austerity measures in total energy consumption, Slovak Telekom is participating in achieving the goal of the Deutche Telekom Group as a whole to reduce its CO2 emissions by 20% by 2020 compared to 2008.

The CO2 emissions are assessed from 2016, as the methodology for calculating emissions across the Deutche Telekom Group has changed. Instead of site-based methodology, market-based methodology is now used.

With climate change, we can not forget the impact of fluorinated gases on the greenhouse effect. F-gases are used as refrigerants in refrigeration and freezing equipment, including air conditioning, extinguishing agents and aerosols etc. Their concentration in the air is low, but they have the ability to capture heat up to 22 000 times more efficient than carbon dioxide and remain in the atmosphere for several thousand years, thereby contributing to global warming.

At Slovak Telekom, fluorinated greenhouse gases are mainly used in

refrigeration and air-conditioning systems, and to a lesser extent than those of stationary fire extinguishers. By re-evaluating the efficiency of the use of air-conditioning equipment in the context of electricity savings and the introduction of alternative solutions, Slovak Telekom ceased using 311 plants in 2017. To prevent leakages of F-gases, the devices being operated are well-maintained and, in accordance with valid legislation, are regularly tested for leakage.

OZONE CONSERVATIONIn the past, Slovak Telekom used to use chlorodifluoromethane, also known as the R22 refrigerant, as a refrigerant for telecommunication technology. Chlorodifluoromethane plays a significant impact in the Earth‘s ozone layer. Since 2000, a gradual ban on the use of this substance has been in place within the EU. However, Slovak Telekom had already systematically phased out equipment with this type of refrigerant in advance, replacing it with another refrigerant friendlier to the Earth‘s ozone layer.

With regard to protection of the ozone layer of the Earth, the target for 2016 was set to end the use of R22 refrigerant in 30 plants. The goal was met and 33 such devices were eliminated. At present, only a small number of devices have remained operational, and are gradually being decommissioned as per to technical and operational options.

Slovak Telekom 2013 - 2017 direct CO2 Emissions and Indirect Energy CO2 Emissions (GHG Protocol Scope 1 and Scope 2)

Year CO2 emission source

Direct CO2 emissionsIndirect CO2 emissions from consumed

energies

TotalEmissions arising from the use of own

vehicles

Emissions from combustion of natural

gas

Emissions arising from the produc-tion of electricity

consumed

Emissions from heat generation for real estate

heating

2016 amount of CO2 emissions (kt) 4.83 2.49 11.10 2.88 21.30

2017 amount of CO2 emissions (kt) 4.92 2.38 7.48 2.66 17.44

Zdroj: Slovak TelekomSource: Slovak Telekom

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ENVIRONMENTAL CONSERVATION EXPENDITURES

Slovak Telekom‘s commitment to minimising the impact of its activities on the environment can only be achieved through the regular spending of certain funds in the context of responsible business.

Through operating costs, activities in the field of environmental protection are covered from operating expenditures, which in 2016 and 2017 covered in particular the recycling and disposal of waste, the disposal of waste water, the prevention of pollutant leakage from facilities and handling areas, the measurement of compliance with electromagnetic radiation limits, measuring sources of air pollution and administrative activities resulting from the legislation.

In 2016 and 2017, Slovak Telekom spent a total of €432 532 on environmental asset recovery investment, investing in several environmentally beneficial projects such as boiler room reconstruction, roof reconstruction, hydraulic regulation and thermostats and the replacement of windows.

CONCLUSION

As can be seen from the above-stated facts, Slovak Telekom has made considerable efforts to improve environmental conservation and in many ways has been successful in doing so. The introduction and maintenance of the environmental management system in line with ISO 14 001 based on sustained improvement contributes to the identification of environmental risks and allows the creation of conditions for their elimination.

The principles of sustainable development reflected in the daily activities of Slovak Telekom bring results. The measures taken to increase the energy efficiency of the buildings were most pronounced in the annual decline in gas and heat consumption for heating.

Despite the ever-increasing demands on the part of customers, electricity consumption is kept at a stabilised level thanks to the use of state-of-the-art technologies.

In the field of waste management, the achieved recycling rate of produced waste was maintained above 80 percent.

To increase the environmental awareness of employees, Slovak Telekom organises campaigns focused on saving energy and conserving the environment.

We have worked on environmental issues within the Deutsche Telekom Group for many years and are active in the field of international cooperation under the Charter of Corporate Social Responsibility of the European Telecommunications Operators‘ Association.

Slovak Telekom fulfils all statutory obligations and successfully implements all changes in environmental legislation, as evidenced by the fact that no sanctions were imposed on Slovak Telekom in 2016 and 2017.

The results achieved in this area are binding for Slovak Telekom in the sense of maintaining the established trend and at the same time motivating us to continue working on the search for further opportunities for improvement.

Year Operating expenses (€)

Investment costs (€)

2013 682 340 532 651

2014 738 827 178 800

2015 763 272 167 623

2016 715 078 320 492

2017 616 847 112 040




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THE SLOVAK TELEKOM 2016 - 2017€¦ · COMPANY PROFILE ... strategy of the parent company. Compliance with the Code of Conduct is binding for every employee. Feedback on adherence