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Corporate responsibility in Hrvatski Telekom We take responsibility

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Corporate responsibility in Hrvatski Telekom

We take responsibility

page 2Ružica Gajić

Our guiding principles

Customer delight drives our action.

Respect and integrity guide our behavior.

Team together –

Team apart.

Best place to perform and grow.

I am T –

count on me.

We take responsibility:

page 3Ružica Gajić

3 fields of activity

Connected life and workWe want to be a major driving force for sustainable life and work, improving quality of life for people.

Connect the unconnectedOur goal is to provide access to telecommunications services for

everybody, and

integration into society of knowledge.

Low carbon societyEnvironmental protection, responsible use of resources and reducing greenhouse gas emissions.

page 4Ružica Gajić

We take responsibility….for society

UNICEF

6 years of partnership

Project in 2010: “Stop violence among children”, in 280 schools around Croatia

Donations for Emergency Medical Help

T-HT is providing support to emergency medical services with the aim of direct participation in the improvement of health and saving of human lives and increasing the quality of health care

Since 2006 T-HT donated nearly 11 million kuna

page 5Ružica Gajić

We take responsibility….for society

Donation project “Together We Are Stronger”

T-HT employees from all over Croatia participate in traditional charity competition for the granting of donations, „Together We Are Stronger“, for the fifth year

Being aware of the challenges and difficulties of the times we live in, they proposed as many as 198 charity projects from their communities, from which 27 projects were chosen to be granted donations in the total amount of one million HRK.

page 6Ružica Gajić

We take responsibility….for society

060 numbers –

support for humanitarian actions

T-HT supports a large number of initiatives by providing humanitarian telephone numbers where the general public can join in and give their support

T-HT waives

its profits

More than 4 million kuna were raised in humanitarian actions in 2010Donation for Autonomous women house Zagreb

The threat of closure of Zagreb's largest shelters for battered women mobilized some of the biggest names in the Croatian music scene for fundraising

T-portal donated 100,000 kuna and called upon its fans to support the initiative: "1 Like -

1 Vote Against Violence Against Women" campaign

page 7Ružica Gajić

We take responsibility….for society

Knowledge Society Through the organization and support of many activities we contribute to the strengthening

of Croatian as a knowledge society. T-HT Conference “Growing through Knowledge”

In 2010 for the third time T-HT presented the world's leading speakers: professor Jeremy Rifkin, economist and social commentator, as well as founder and chairman of the Foundation on Economic Trends, and Dr Nicholas Christakis, internist and prominent expert in researching social networks

Support of numerous scientific and professional gatherings

WinDays 2010, MIPRO conference, contest Vidi Web Top 100, Combis

Conference, Information Technology Interfaces ITI 2010, Cisco Conference, Imagine Cup 2010, Telekom Arena, Mediterranean Institute for Life Sciences, CARNet, etc.

page 8Ružica Gajić

We take responsibility….for society

T-HT Scholarships

T-HT launched a competition for T-HT scholarship. Among the excellent candidates from Faculty of Electrical Engineering and Computing (Zagreb), Faculty of Mechanical Engineering and Naval Architecture (Split) and the Faculty of Electrical Engineering (Osijek) 11 students have been selected for scholarships

Annual scholarship fund is 500.000 kn

Net in School

since 2001, T-HT has been providing 2653 primary and secondary schools in Croatia with free internet access

page 9Ružica Gajić

We take responsibility….for society

Collaboration with the academia Faculty of Electrical Engineering and Computing

collaboration with FER -

Faculty of Electrical Engineering and Computing (since 2006) in scientific research and development activities

helping the transfer of knowledge and ideas between science and industry

T-HT awards best FER students and supports students in the international professional student competitions

Croatian Association of Informatics

summer and winter school of informatics, T-HT make donation for students who have won medals at the Central European Olympiad in Informatics and International Olympiad in Informatics.

page 10Ružica Gajić

We take responsibility….for society

CultureMuseum of Contemporary Art

Since 2007, T-HT is the main partner of the Museum of Contemporary Art (MCA)

During 2010, T-HT and MCA organized open day for citizens, employees, business partners, workshops for children and a host of other activities. This event was

visited by around15,

000 visitors.

Annual award for the best work of contemporary Croatian art :[email protected] The contest "[email protected]" held for the third consecutive year.

[email protected] is one of the most prestigious annual awards in

the field of contemporary art in Croatia, organized for the third consecutive year. The award-winning works were included in the T-HTcollection, which is exhibited in the new building of the Museum of Contemporary Art

[email protected] Award

For the third time tportal.hr organizes competition for this prestigious literary award, in the amount of 100,000.00 kuna.

In 2010, 53 applications were received, and Sibila Petlevski won

the main prize won for the novel "Time of lies".

page 11Ružica Gajić

We take responsibility….for society

KulTurist

popularization and support to cultural events in Croatia

In 2010: international documentary film festival ZagrebDox, Film

Festival in Pula, Vukovar Film Festival, Split Summer and Theatre Ulysses

Theaters

T-HT has continued the long tradition of sponsoring the Croatian National Theatre in Osijek, Split, Rijeka and Varazdin, and the City Drama Theatre Gavella in Zagreb

Festivals

Špancirfest Baroque Evenings in Varaždin, Rijeka Summer Nights, Festival of Chamber Music Julian Rachlin & Friends

page 12Ružica Gajić

We take responsibility….for society

T-Mobile INmusic festival

Croatian largest open-air festival, had in 2010 more than forty foreign and local performers on six stages (Massive Attack, LCD Soundsystem, Billy Idol, Morcheeba, Alice in Chains, The Flaming Lips, Flogging Molly and many others)

2011 headliners: Jamiroquai, Nick Cave, Arcade Fire, Grinderman, Cypress Hil…

British newspaper The Times again included INmusic festival in the top 20 European summer festivals

Minival

Through the project Minival T-HT encourages talented artists from the demo scene

In 2010, 11 concerts were held with 29 artists

page 13Ružica Gajić

We take responsibility….for society

Croatian Olympic Committee

long-term cooperation with the Croatian Olympic Committee, linking the values of T-HT with the best tradition of the Olympic Games: fair competition and constant hard work on the road to excellence.

“I love football “

sponsorship of the First Croatian football league and Croatian national teamSailing

sponsorship of the prestigious Easter Regatta and John Kljaković

Gašpić

– Bambi (who won numerous medals at the European Championships and the World Cups)

Youth sports games

sports game for the young with message against drugs, alcohol and violence

page 14Ružica Gajić

We take responsibility….for our employees

Integration of T-Mobile and Hrvatski Telekom into one company: the biggest challenge in 2010

Equal opportunities for everybody: respecting diversity and promoting equal opportunities

Hrvatski Telekom: 38% women in management

100 largest companies in Croatia: 6 % women in management

page 15Ružica Gajić

We take responsibility….for our employees

T-HT: Employer of first choice

According to the selection of independent portals “My job”, T-HT has been named employer of first choice for five years, and in 2010 has been recognized as an employer of first choice for highly educated

Caring for the health of employees

Free medical health check and vaccinations against influenza

2010: new "healthy" intranet site

Free sports for employees: fitness, football, table tennis, basketball, volleyball, bowling, badminton

Annual sports days for employees: three days during which employees have the opportunity to demonstrate their skills in various sports

page 16Ružica Gajić

We take responsibility….for our employees

Occupational Safety

Modern and high quality personal protective equipment

Training in the field of occupational safety, including evacuation exercises

Additional medical check ups for special work places …and many other activities resulting in a permanent decline in the number of occupational injuries and lost workdays due to illness

Employees opinion is important!

Quarterly questionnaire spirit @ telekom throughout the year

comprehensive employee satisfaction survey in 2010, which aims to obtain a detailed picture of the main issues that affect employee satisfaction and

thus their dedication

page 17Ružica Gajić

We take responsibility….for our employees

“You are a role model “

(Uzor si ti)

promotion of service culture within the company: reward for colleagues who delight customers and deliver more than expected of them

employees nominate colleagues who are recognized as examplesEducation

More than 3,000 employees attended various education programs in

2010

E-learning: wide range of educationsKnowledge on Thursdays

A series of lectures which are held by employees, experts from various fields

Learning from each other, we gain a better insight into the overall activities in T-HT and get to know other employees

page 18Ružica Gajić

We take responsibility….for our employees

Additional care and benefits for employeesClosed voluntary pension fund HT

T-HT encourages employees to save for retirement

being a sponsor of the fund, in the past years T-HT provided financial stimulations for each new member

Foundation PrijaTelj (Friend)

Founded in 2009, with goal to improve financial status of current and former employees of T-HT

Provides financial assistance for extraordinary medical treatment of workers and their family members, provides help in the event of natural disasters like flood or fire, and provides resources for education of children of deceased workers

92 financial aids were approved in 2010, at the request of individuals and at Fundation own initiative

page 19Ružica Gajić

We take responsibility….for our employees

Culture of open internal communication

HT.d.d. Herald -

the official journal of T-HT which publishes general acts and decisions

Annual reports -

major financial characteristics and main features of business

halo! -

monthly magazine that communicates important events in the company, brings interviews, stories on modern technological trends, as well as casual and interesting topics from the world of sport, culture, entertainment

Eco Corner -

internal electronic publication which brings useful and interesting topics in the field of environmental protection

variety of brochures: booklets Service culture, Maternity and parental leave -

everything parents-to-be need to know, Welcome to Croatia -

guide for expats working in T-HT Group,

the Corporate Project Management Methodology etc.

page 20Ružica Gajić

We take responsibility….for our employees

internal Web portal

central channel of communication, available to all employees of the Group, is constantly evolving in the direction of interactive media

Foto Toranj (Photo Tower)

Internal competition for best photograph (by employees of T-HT Group), since 2006

thirty works from FotoToranj were presented at the public exhibition

With the internal auction of the best photographs, company and employees raised in 2010 more than 80,000 HRK which were then donated to the Croatian Association of the Blind

page 21Ružica Gajić

We take responsibility….for our suplliers

Program of sustainable procurement

protect the internationally applicable human rights

not using any form of forced labor, elimination of any child labor and guarantee the minimum age for admission to employment in accordance with the regulations of each country

the rejection of any form of discrimination in the workplace, promotion of equal opportunities and diversity of the workforce

adequate payment on a contract basis in accordance with relevant national labor market, minimum wage guaranteed by law, compliance with relevant national regulations on working hours and regular paid vacation

all necessary safe and healthy working conditions Suppliers Audits

Audits of suppliers with significant impact on environment, 19 audits so far

page 22Ružica Gajić

We take responsibility….for our customers

Customers are most important: we are continuously improving products and creating services specifically designed for specific user groups

Customer service available 24 hours 7 days a week

Four times a year T-HT conducts customer satisfaction research TRI * M methodology

We protect the user through cost control, call blocking, protection for Internet users, protection against high-risk international calls, warnings about the increased consumption, parental lock on TV services, etc.

T-Com tariff "Super 30" in fixed telephony is designed for low-income customers

Services for people with special needs: discounts, special adopted devices, access to shops for people with disabilities

Loyalty Program “T-Club”

enables users to redeem points earned by using the T-Com and T-Mobile services into rewards and benefits

E-bill: Invoice is delivered by e-mail, no hard copies any more

page 23Ružica Gajić

We take responsibility….for our customers

My T

unique Internet place where customer can buy new and upgrade existing services, review monthly accounts and detailed list of calls, manage their accounts for mobile and fixed phone, internet and television, access to T-Club, redeem points for prizes

Broadband Internet

available for 98% of the population in Croatia

in the last 5 years Internet access speed has significantly increased : from 23 MB/s to 100 MB/s.

Networks expansion

Integration of mobile, fixed and Internet services, fiber to the

home (optic technology)

Renewal of all 3G base stations and core part in mobile network

LTE testing

MAXtv service available in rural areas by using satellite technology

page 24Ružica Gajić

We take responsibility….for the environment

ISO 14001certificate

in 2010 T-HT became the first and only telecommunications operator in Croatia with the ISO 14001 certificate

Evaluation and control of all environmental impacts, education, audits

Parts of company are certified by ISO 9001 (quality) and ISO 27001 (information security)Recycling actions

More than 100,000 used mobile phones and batteries were collected during 5 years in the recycling actions

Cooperation with primary school from Labin: recycling action and

education about proper disposal and recycling

page 25Ružica Gajić

We take responsibility….for the environment

Climate protection

Air conditioning and heating equipment renewal: during 2010, T-HT recycled more than 54 tons of equipment containing substances that damage the ozone layer

220 vehicles on liquid natural gas (LNG): usage of environmentally friendly fuel

T-HT actively supported global environmental initiatives “Earth Hour”, by turning off lights in main locations across Croatia

Renewable sources of energy

wind and solar powered base stations in mobile networks

solar panels for preparation of hot water for sanitary use in buildings

page 26Ružica Gajić

We take responsibility….for the environment

Energy efficiency

Fiber technology= green technology: The length of the optical loop is increased, allowing reduction in the number of access nodes and the number of access

devices, and thus

lower power consumption. Space requirements are lower because higher capacity can be achieved with a smaller diameter cable than copper, while avoiding the electromagnetic interference.

Integration of mobile, fixed and internet services: technically very demanding, but significantly reduces the number of network platforms and devices, resulting in improved energy efficiency and reducing environmental impact

Technology replacement: T-HT has shut down older networks for data transmission: telex, X.25, Frame Relay. In the process of the customers migration from ATM networks to new IPMPLS / Ethernet-based network infrastructure.

Cooperation with the Energy Institute "Hrvoje Požar", in the analysis of consumption and electricity costs

page 27Ružica Gajić

We take responsibility….for the environment

Electromagnetic fields in mobile networks

Legal regulations in EMF are up to 6.25 times more stricter than

those in the European Union

Masts sharing

T-HT and other mobile operators launched an initiative to reduce the number of locations for mobile base stations, initiative is supported by the Ministry of Environment and Physical Planning

page 28Ružica Gajić

We take responsibility….for the environment

Investment in ecological projects:

2008:

afforestation of four areas throughout Croatia

2009: preservation of swamps as endangered species habitats

2010: afforestation of burnt areas Annual donation: 500.000 kn

T-HT Volunteers in environmental projects

Regular participation in companies environmental projects

In 2010, T-HT employees were participated in reforrestation of 20 hectares burned last year in the summer forrest fires

page 29Ružica Gajić

International recognition on the CSR field

T-HT is member CEERIUS Sustainability Index for 2011 (the Vienna Stock Exchange sustainability index for the region of Central and Eastern Europe), which includes stocks of leading companies in terms of social and environmental quality and economic performance

In 2007 T-HT joined the UN Global Compact initiative, which supports the basic social values within the ten principles of responsible business

In 2008 Oekom Research included T-HT in the category of companies labeled Prime.

page 30Ružica Gajić

Additional information

web site: http://www.t.ht.hr/

corporate responsibility: http://www.t.ht.hr/eng/responsibility/

CSR report for 2009: http://www.t.ht.hr/eng/responsibility/pdf/GCreport09.pdf

e-mail address for enquires from environment protection area: [email protected]