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:

The Supervisory Board of Telekom Slovenije, d.d., approved the 2018 Annual Report for the Telekom Slovenije Group and for Telekom Slovenije, d.d., at its 22nd regular session, held on Wednesday, 27 March 2019.

The Telekom Slovenije Group generated €731.2 million in operating revenue in 2018, which is one percent more than in the year before. Net sales remained at the 2017 level at €715.1 million. The Group increased its revenue from fixed and IT services by 8% compared to 2017, and its revenue from power supply, and insurance and financial services has also been rising.

Telekom Slovenije, d.d., generated €653.3 million in operating revenue in 2018, on par with 2017. The Company’s revenue from selling IT solutions and services increased by 47% compared to the year before, amounting to €48.8 million in 2018. Telekom Slovenije, d.d., has retained its leading position in the market of fixed and mobile services, while IPKO in Kosovo has kept the largest market share in the segment of fixed broadband services, and has been increasing its share in the mobile telephone services market.

The Telekom Slovenije Group’s EBITDA amounted to €185.5 million in 2018, which is 10% more than in the year before. The EBITDA-to-sales ratio was 25.9%, or 10% i.e. 2.4 percentage points above the 2017 figure. The Telekom Slovenije Group generated a net profit of €33.3 million (€9 million in 2017), while its EBIT amounted to €17.9 million. By settling in court with T-2 d.o.o., Telekom Slovenije, d.d., significantly reduced its exposure to civil claims. The settlement affected the projected EBITDA and net profit.

The Telekom Slovenije Group spent €133.9 million on investments in 2018. The largest share of these funds was used to expand the access optical network, modernize the mobile network, and develop services. By expanding its optical network, which is now available in over 282,000 Slovenian households, Telekom Slovenije, d.d., has been building the infrastructural foundation for future telecommunications activities, while providing its customers with high-speed internet access and an excellent broadband experience. As part of its preparation for the 5th generation of mobile networks, Telekom Slovenije, d.d., has been constantly updating and upgrading its network, which has been recognized as the best in Slovenia in independent tests.

The Supervisory Board of Telekom Slovenije, d.d., along with the Company’s Management Board, also prepared a proposal for the use of the distributable profit for 2018. It will propose to the General Meeting, which is scheduled for 30 August 2019, to allocate €29,274,651.00 or €4.5 gross per share for the dividends. The Company’s total distributable profit for 2018 is €38,986,324.96.

The Annual Report is attached as an appendix to this notification.

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