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

At its 15th regular meeting on Wednesday, 23 August 2023, the Supervisory Board of Telekom Slovenije, d.d., reviewed Unaudited business report of the Telekom Slovenije Group and Telekom Slovenije, d.d., for the period between January and June 2023.

In the first six months of this year Telekom Slovenije Group generated EUR 334.1 million in net revenue, which is 6% more than in the same period of 2022, with all Group companies achieving higher revenue. Telekom Slovenije, d.d., has, compared to the same period last year, achieved 5% higher revenue. Revenue from mobile subscribers, mobile goods and the wholesale market increased, Telekom Slovenije, d.d., is also achieving growth in financial services, eHealth, insurance and IT services. IPKO Telecommunications LLC has been holding on to its position of leading operator on the Kosovar market, seeing growth in the mobile segment from new subscribers and prepaid users. In the first six months of this year, Telekom Slovenije Group generated EUR 337.5 million in net revenue, which is 7% more than in the same period of 2022.

Earnings before interest and taxes (EBIT) amounted to EUR 36.2 million, which is 16% more than in the same period last year.

Telekom Slovenije Group’s earnings before interest, taxes, depreciation and amortisation (EBITDA) stood at EUR 117.2 million, which is 4% more than in the comparable period of 2022. The EBITDA-to-sales ratio at the Group level was 35.1%.

The Telekom Slovenije Group completed the first six months of 2023 with a net profit of EUR 23.7 million, which is EUR 0,3 million more than in the same period of 2022.

Telekom Slovenije, d.d., and GVO, d.o.o., received aid in accordance with the Act Governing Aid to Businesses Hit by High Increases in Electricity and Natural Gas Prices in the amount of EUR 1.56 million in the first six months of 2023.

The Supervisory Board of Telekom Slovenije, d.d., gave its approval to the appointment of András Páli for the CEO of IPKO Telecommunications LLC, for a 4-year term, which begins on 4 November 2023.

The impact of the floods in Slovenia on the communication infrastructure of Telekom Slovenije, d.d., and the company’s response

In the night from the 3rd to the 4th August a major part of Slovenia was subject to catastrophic flooding, and in accordance with the Business Continuity Management System (BCMS) that Telekom Slovenije has established for emergency events, and which is certified according to the ISO/IEC 22301 standard, the Operations recovery group was activated immediately.

In the affected areas there were some interruptions to communications, mainly due to the failure of the power grid at some of the leased base station locations. Experts from Telekom Slovenije, d.d., and GVO, d.o.o., resolved the issue with generators which powered especially the operation of base stations and the mobile network. During the greatest impact the operation of about 40 base stations (of a total of more than 1500) had been impacted, and the field teams endeavoured to ensure coverage was mostly re-established within two days; on Monday morning of 7 August, the affected area covered 0.2% of the population. The mobile network of Telekom Slovenije, d.d., has been operating without interruption since 8 August, and during this period Telekom Slovenije, d.d., provided communications through its network to users of all other operators in Slovenia.

In the affected areas cable infrastructure was also flooded, damaged or broken, both the backbone network, and the access part of the network. Damage was caused to the network of Telekom Slovenije, d.d., and the recently constructed open broadband network OŠO5, owned by GVO, d.o.o. Some function location hubs were completely destroyed or flooded. Connections required for the operation of fixed services in affected areas have been established on a temporary basis and will be fully repaired and restored in the future, alongside other infrastructure. A comprehensive restoration and repair plan is being prepared, and the company will strive to establish an optimum network architecture. The time-frame for the repairs and restorations will be partially dependant on the repairs and restoration of other infrastructure at the level of the whole country or local communities.

As a socially responsible company Telekom Slovenije, d.d., actively responds to the events affecting the broad and narrow social environment it operates in. In order to aid communication of its mobile subscribers, it provided them with the option of 30-day unlimited mobile data transfer, and prepaid users (Mobi, IZI, Spar) with unlimited mobile data for 5 days, while subscribers to fixed services in the affected areas received a 100% discount on their August subscription fee, and the company also provides assistance to affected businesses with free ICT solutions.

The announcement will also be available on the company’s website (www.telekom.si) for a period of at least 10 years.