Pursuant to the provisions of the Rules of the Ljubljana Stock Exchange and the valid legislation, Telekom Slovenije, d.d., Cigaletova ulica 15, Ljubljana, hereby publishes the following notification:

At its 6th regular meeting, held on Friday, 23 April 2021, the Supervisory Board of Telekom Slovenije, d.d., approved the 2020 Annual Report of Telekom Slovenije Group and Telekom Slovenije, d.d.

The COVID-19 pandemic has accelerated the digitalisation of the economy and has additionally emphasised the importance of reliable, modern, fast, and secure communications and communication solutions. In Slovenia, the pandemic caused a mass and rapid transformation of remote work and school, and the traffic flows and loads on our network changed in accordance with this. We faced high network loads and an increase in traffic in voice, data, and video services, with traffic rates 50% above regular levels, and a noted a high increase in traffic accessing the global internet and IPTV. Telekom Slovenije, d.d., has implemented a Business Continuity Management System, certified according to the ISO 22031 standard, which ensures that the company is capable and qualified to provide key services and processes also in emergency situations. Considering the circumstances we found ourselves in, we prepared in a systemic and timely manner both from the perspective of technology and ensuring network security and services, as well as from the perspective of ensuring the safety of our employees and our users.

In the consolidated financial results for 2020, Telekom Slovenije Group has separately listed revenues, costs, and net profit for the financial year from discontinued operations for Planet TV, televizijska dejavnost, d.o.o. (hereinafter: Planet TV, d.o.o.). The sale procedure for the 100% share in Planet TV, d.o.o., was concluded on 30 September 2020. The net earnings of discontinued operations item has a single amount in the financial results sheet, which is the sum of the net earnings of discontinued operation after taxes, and the effect of the recognised loss when measuring the fair value of the company and the sale of Planet TV, d.o.o.

At the declaration of the pandemic, we adopted numerous measures to mitigate the negative impacts of the coronavirus on the revenue, cost, and investment sides. The negative effect of the coronavirus and the measures on earnings before interest, taxes, depreciation, and amortisation (EBITDA) is estimated at EUR 9.2 million; by considering this adjustment, EBITDA would amount to EUR 219.1 million, exceeding plans by 3%.

Telekom Slovenije Group generated EUR 654.9 million in operating revenues in 2020, with sales revenue amounting to EUR 647.2 million. Interventions related to the declaration of two waves of the epidemic at the country-level (closure of Telekom’s Sales Centres, stopped public life and travel limitations) had an impact on revenue in 2020, namely from lower revenues from our users roaming in foreign operators’ networks, and foreign users roaming in our mobile networks, and lower revenue of subsidiaries outside of telecommunications. Revenue is also declining because of subscriber optimization, as their monthly subscription fee now includes more services, and the expected declining revenue from traditional fixed voice telephone services, resulting from replacement with mobile and IP telephone services. Compared to 2019, the share of new revenue sources from e-healthcare, power supply and insurance is increasing. Compared to the previous year, revenues of e-commerce have grown by 55%. When excluding the negative effects of the declared epidemic and additional measures for mitigating these negative effects, financial revenue of Telekom Slovenije Group would be EUR 22.9 million higher, and would exceed plans by 1%.

In 2020, earnings before interest and taxes (EBIT) stood at EUR 42.6 million, which is 3%, i.e., EUR 1.4 million more than in the previous year. EBITDA at the level of Telekom Slovenije Group reached EUR 209.9 million, which is 2% less than in 2019. The EBITDA-to-sales ratio at the Group level was 32.4%. When adjusting for the estimated impact of the coronavirus with the measures for mitigating negative effects, EBITDA would amount to EUR 219.1 million, which is 2% more than in 2019.

Following the calculation of corporate income tax with deferred taxes, the Telekom Slovenije Group completed 2020 with a net profit of EUR 24.9 million. When adjusting for the estimated negative impact of the coronavirus with the measures for mitigating negative effects, net profit would amount to EUR 32.8 million.

The Supervisory Board of Telekom Slovenije, d.d., and the company’s Management Board prepared a proposal for the use of the distributable profit for 2020. It will propose to the General Meeting, which is scheduled for 18 June 2021, to allocate EUR 26,021,912.00, i.e., EUR 4.00 gross per share for the dividends. The total distributable profit for 2020 stood at EUR 34,981,050.48.

The 2020 Annual Report of Telekom Slovenije Group and Telekom Slovenije, d.d., is published in PDF format for the purpose of disclosing internal information in accordance with Regulation (EU) No 596/2014, and which represents an unofficial version of the audited 2020 Annual Report Telekom Slovenije Group and Telekom Slovenije, d.d.

The 2020 Annual Report of Telekom Slovenije Group and Telekom Slovenije, d.d., shall be published in the required European Single Electronic Format (ESEF), in accordance with the provision of the first paragraph of Article 134 of the Market in Financial Instruments Act and the Commission Delegated Regulation (EU) 2019/815, as soon as possible.

This notification will also be available on the company’s website (www.telekom.si) for at least 10 years after it is published.