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 18th ordinary session held on Wednesday, 20 April 2022, the Supervisory Board of Telekom Slovenije, d.d. approved the annual report of the Telekom Slovenije Group and Telekom Slovenije, d.d. for 2021.

Our way of life, the needs of users of communication services and the Telekom Slovenije Group’s operations were affected by the COVID-19 pandemic again in 2021. The Telekom Slovenije Group nevertheless ensured continuous development, as well as business continuity and the smooth and safe functioning of services. Through the appropriate organisation of work, we provided employees a safe work environment, and continuously optimised operations by adapting processes. In accordance with the business continuity management system, which is certified according to the ISO 22301 standard, Telekom Slovenije, d.d. is capable of ensuring key services and processes, even in extraordinary circumstances.

Despite the challenges brought about by the COVID-19 pandemic, the Telekom Slovenije Group remains financially stable. The Telekom Slovenije Group generated EUR 653.6 million in operating revenues in 2021, which is in line with plans and similar to the level generated the previous year. Sales revenue totalled EUR 648.2 million, despite the fact that international voice traffic and traffic from roaming by foreign users were lower than in the pre-pandemic period. IPKO Telecommunications LLC also recorded higher revenues in 2021 than in 2020.

Earnings before interest, taxes, amortisation and depreciation (EBITDA) totalled EUR 220.8 million at the Telekom Slovenije Group level, an increase of 5% relative to 2020 and 5% higher than planned. The EBITDA margin (i.e. EBITDA as a proportion of net sales revenue) was 34% at the Group level. Following the calculation of income tax (including deferred taxes), the Telekom Slovenije Group generated a net profit of EUR 37.9 million in 2021, which is 23% higher than planned and up 52% relative to 2020. Earnings before interest and taxes (EBIT) reached EUR 51.7 million in 2021, an increase of 21% relative to 2020.

The Telekom Slovenije Group is continuously introducing innovations, is developing the most advanced ICT solutions and smart city and community solutions, is an important part of Industry 4.0, and is focused on the areas of public safety and healthcare. The Telekom Slovenije Group earmarked a total of EUR 208.2 million for investments in 2021. Telekom Slovenije, d.d. has the largest and most advanced network: at the end of 2021, it covered 96.8% of the population with the LTE/4G signal, more than 84% of the population with the LTE-A/4G+ signal and over 38.8% of the population with the 5G signal. To that end, the Company also actively upgraded and expanded the fibre optic access network in 2021. We facilitated the connection of an additional 42,150 households to that network. Telekom Slovenije, d. d. thus facilitates the connection of more than 411,000 households to the fibre optic network, meaning more than half of all Slovenian households.

At a public auction in 2021 for the allocation of radio frequencies for the provision of public communication services to end-users, Telekom Slovenije secured the radio frequency spectrum in the 700 MHz FDD band, 700 MHz SDL band, 1500 MHz band, 2100 MHz band, 3600 MHz band and 26 GHz band, which will allow the Company to continue its planned development. In this way, Telekom Slovenije, d. d. will provide residential users, companies and operators that roam in its network the most advanced services and solutions in the future, with the best user experience.

Proposal on the use of distributable profit for 2021

In conjunction with the Company’s Management Board, Telekom Slovenije, d.d.’s Supervisory Board drafted a proposal on the use of distributable profit for 2021. The General Meeting of Shareholders, which will be held on 16 June 2022, will be forwarded a proposal that distributable profit be used for the payment of dividends in the amount of EUR 22,745,247.00, meaning a gross dividend of EUR 3.50 per share, which is in line with the company's dividend policy. The Company’s total distributable profit for 2021 amounted to EUR 45,204,954.29.

This announcement will also be accessible on Telekom Slovenije’s website (www.telekom.si) for a period of no less than 10 years from the date of publication.