Pursuant to Article 17, Paragraph 1, of the Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC, to Article 136 of the Market in Financial Instruments Act, and to the provisions of the Ljubljana Stock Exchange Rules and the valid legislation, Telekom Slovenije, d.d., Cigaletova 15, Ljubljana, hereby notifies the public that:

At its 19th regular meeting held on Monday 10 December 2018 the Supervisory Board of Telekom Slovenije, d.d., discussed Telekom Slovenije Group's Strategic Business Plan for the 2019–2023 period. In 2018 the Telekom Slovenije Group implemented the set strategy in accordance with the adopted strategic guidelines. The markets where Telekom Slovenije Group operates are characterized by accelerating consolidation within individual countries, as well as across borders, which additionally intensifies competition, with users demanding a high quality of services at low prices, and the markets becoming increasingly saturated. In the Slovenian telecommunications market revenue from basic telecommunications services has been declining for the past few years, and this trend is forecast to continue in the future. Telekom Slovenije, d.d., has retained a high market share across all of its segments of operation, while alternative operators are focusing especially on aggressive pricing policies that Telekom Slovenije, d.d., has been unable and unwilling to pursue because of limitations by the regulator, and the principles of good management. The company has retained its market share by providing a broad range of high-quality services, a unique user experience, the best sales and aftersales support, the most modern and reliable network, convergent subscription plans, additional services beyond telecommunications, and a comprehensive range of ICT solutions and information security services. Telekom Slovenije, d.d., is also constantly developing new services that make the lives of our users more simple, while also providing security, which is the basis of trust. In order to dynamically adapt to users, the company needs to invest in the expansion and upgrade of technologies, accelerate digitalization, continue optimizing processes and empower employees. The highest quality of services will remain Telekom Slovenije Group’s competitive advantage in the future, and future development will continue to be based on ensuring financial stability and the high standards of social responsibility, quality and sustainable development.

Telekom Slovenije Group expects to generate EUR 711.9 million in operating revenues in 2019, EBITDA of EUR 216.0 million, net profit of EUR 30.3 million and plans to invest EUR 211.9 million. This forecast is made in accordance with IFRS 15 in IFRS 16. The Supervisory Board of Telekom Slovenije, d.d., has approved the appointment of Matjaž Pogačnik for the director of the following subsidiaries SIOL d.o.o. Beograd, SIOL d.o.o. Podgorica, SIOL d.o.o. Sarajevo, SIOL DOOEL Skopje and SIOL d.o.o. Zagreb.

This announcement will be available on the website of Telekom Slovenije, d. d. (www.telekom.si) for at least 5 years from the date of publication.