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

At its 8th regular meeting on Wednesday, 14 December 2022, the Supervisory Board of Telekom Slovenije, d.d., discussed and approved the Annual Business Plan Telekom Slovenije, d.d., and Telekom Slovenije Group for the financial year 2023, and discussed the company’s current activities.

The expectations for 2023 are marked by an exceptional uncertainty of the economic environment, which is especially related to the conditions on energy markets, as the continued war in Ukraine and global epidemic conditions make the environment increasingly harsher and cast negative economic outlooks. Telekom Slovenije Group expects continued growth of uncertainty in the international environment, while also plans for growth and development.

Telekom Slovenije Group has set out an ambitious plan for 2023, with a focus on turning the trend of the past few years and to achieve both growth in revenue as well as in the number of users across all segments, further solidifying market its shares. Telekom Slovenije Group is and aims to remain the first choice for users, while ensuring constant development to provide cutting-edge services and an excellent user experience in the best network.

In accordance with the above Telekom Slovenije Group plans to generate revenue growth in 2023 with a total of EUR 680.8 million in operating revenues. In spite of the planned growth, a focus on development, continued cost optimisation of operations and diligent risk management, the biggest factors for key financial indicators over the next year will be the uncertainty on the electricity price markets and the rise of interest rates. Should electricity prices and the conditions on the financial markets remain at the same level, as the forecast predict at the time this plan was prepared, Telekom Slovenije Group should achieve an EBITDA of EUR 206.2 million and a net profit of EUR 20.1 million. With a recalculation of the plan to electricity prices from 2022, Telekom Slovenije Group’s planned growth for the next year would bring a net profit surpassing that of 2022 by 32% and a 6% higher EBITDA.

Telekom Slovenije Group plans EUR 205.5 million in investments for 2023. Along with the expansion and upgrades of the fibre optic access network and a continued development and modernisation of the mobile network, the planned investments also include programming rights and capitalisation of leases in accordance with IFRS 16. Investments in technology and network have been optimised as much as possible and in such a way that ensures continued technological development of Telekom Slovenije Group, and the leadership position on the markets where it operates. In its operations it will focus also on creating solid partnerships, optimisation of operations, the development of state-of-the-art ICT services and solutions, and providing the best user experience.

Telekom Slovenije Group’s 2023 Annual Business Plan is based on the data and forecasts that were available by December 2022, and taking into account the regulations and forecasts for the trends of the macroeconomic environment for the region that the Group operates in. With the uncertainties related to international energy at the time this business plan was prepared, and the fact that the risks for realising the forecasts are generally negative and continue to be strongly dependent on the course of the war in Ukraine, the conditions on energy markets and global epidemic conditions, the actual results and operations in 2023 can significantly differ from plans. Telekom Slovenije Group will appropriately adjust its operations during the year, if required.

The 2023 Annual Business Plan is based on the Strategic Business Plan of the Telekom Slovenije Group for the 2022-2026 period, and the Management Board will prepare an updated strategic plan for the next three-year period by mid-2023.

The Supervisory Board of Telekom Slovenije, d.d., gave its approval to the appointment of Igor Gajster for the director of TSmedia, d.o.o., for a four-year term, starting on 15 December 2022.

The announcement will also be available on the company’s website (www.telekom.si) for a period of at least 5 years.