Pursuant to the provisions of the Rules of the Ljubljana Stock Exchange and valid legislation, Telekom Slovenije, d.d., with its registered office at Cigaletova ulica 15, Ljubljana, hereby publishes the following announcement:

At its 21st ordinary session held on Thursday, 7 March 2024, the Supervisory Board of Telekom Slovenije, d.d. was briefed on the unaudited financial statements of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2023.

Despite adverse market conditions, high energy prices and the flood damage suffered by the infrastructure of Telekom Slovenije, d.d. and GVO, d.o.o., the Telekom Slovenije Group performed well in 2023, exceeded established objectives and significantly improved operations relative to 2022:

• Net profit amounted to EUR 47.1 million, its highest level since 2015 and 25% higher than in 2022.
• In 2023, the Telekom Slovenije Group recorded a 7% increase in operating revenues, a 6% increase in earnings before interest, taxes, depreciation and amortisation (EBITDA) and a 27% increase in earnings before interest and taxes (EBIT).

Achieved results are a reflection of development-oriented operations, and the modern services and solutions that the employees of Telekom Slovenije Group companies provided to users in 2023.

The Telekom Slovenije Group generated EUR 708.2 million in operating revenues in 2023, an increase of 7% relative to 2022. The Group recorded an increase in revenues in various segments of its operations. The highest growth was recorded in mobile and broadband services, while the most significant increase in revenues in the ICT segment was recorded in the provision of cyber security. Also up were revenues from the Online Store, and insurance and eHealth services, while revenues were also higher on the wholesale market. The Telekom Slovenije Group increased the number of mobile users by 4% and the number of retail broadband connections by one percent relative to the end of 2022.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) totalled EUR 228.6 million at the Telekom Slovenije Group level, an increase of EUR 12.1 million or 6% relative to 2022. Had energy prices in 2023 remained at the 2022 level, and if there was no state aid for energy in 2023 and there was no negative effect of floods, EBITDA would have been 10% higher than in 2022. The EBITDA margin (i.e. EBITDA as a proportion of sales revenue) was 32.9% at the Group level.

Earnings before interest and taxes (EBIT) amounted to EUR 64.1 million at the Telekom Slovenije Group level, an increase of 27% relative to 2022. Had energy prices in 2023 remained at the 2022 level, and if there was no state aid for energy in 2023 and there was no negative effect of floods, EBIT would have been 46% higher than in 2022.

The Telekom Slovenije Group generated a net profit of EUR 47.1 million in 2023, an increase of EUR 9.6 million or 25% relative to 2022. Affecting Telekom Slovenije Group net profit was a change in the corporate income tax rate from 19% to 22% from 2024 on, which had a positive effect on deferred taxes in 2023 in the amount of EUR 5.7 million. Had energy prices in 2023 remained at the 2022 level, and if there was no state aid for energy in 2023 and there was no negative effect of floods and no effect of a change in the tax rate; the net profit of the Telekom Slovenije Group would have been 30% higher than in 2022.

The net financial debt of the Telekom Slovenije Group was down by 11% as at 31 December 2023 relative to the situation as at 31 December 2022.

Telekom Slovenije, d.d. continued to upgrade and modernise the network again in 2023. The Company facilitates the connection to its fibre optic network by more than 460 thousand Slovenian households, with an additional 16,980 households connected in 2023. It is also making intensive, prudent and sustainable investments in the enhancement and development of the most advanced mobile technologies. The Company covered an additional 420 thousand inhabitants with 5G technology in 2023 and strengthened the capacities of the entire mobile network, such that more than 60% of the population is covered by 5G technology. Coverage with LTE/4G technology exceeds 97%. Telekom Slovenije, d.d. provides the best user experience to more than one million users, while ensuring reliable, stable and secure gigabit connectivity. It thus meets the expectations of its own users and the users of other major operators in Slovenia who use Telekom Slovenije, d.d.’s network because of its advanced functionalities, capacities, reliability, security and presence everywhere.

Telekom Slovenije, d.d., is consolidating its leading market share in the segment of mobile subscribers, where it has a 35.4% market share, and in the IP TV segment, where it increased its market share to 41.8% at the end of 2023. It increased its market share of fixed broadband to 28.0%.

IPKO was the first in Kosovo to introduce 5G technology in 2023, while it successfully launched eSIM technology in addition to other advance services. IPKO has a market share of 49.2% in the mobile segment and 25.5% in the fixed internet segment.

This announcement will also be accessible on Telekom Slovenije, d.d.’s website (www.telekom.si) for a period of no less than ten years from the date of publication.