Strategic Business Plan of the Telekom Slovenije Group for the period 2016 to 2020

The Telekom Slovenije Group operates on markets characterised by a high level of competition, while markets are becoming increasingly saturated. The ability to attract new users is thus constantly diminishing. User are becoming increasingly price sensitive on the one hand, while demanding superior quality services on the other. According to the forecasts of analysts, incumbent operators, such as Telekom Slovenije, are and will continue to be exposed to the continuing decline in revenues from basic telecommunications services (traditional voice telephony) and declining market shares. The management of such trends and the further development of the Telekom Slovenije Group are outlined in the Strategic Business Plan for the period 2016 to 2020 and in the Annual Business Plan for 2016.

We will implement the strategy gradually, in three phases. During the first phase, we will focus on innovation and the development of the Group’s core activity. The focus of the second phase will be on digitalisation, while the aim of the third phase is to generate value from the activities carried out in the first two phases.

Strategy aimed at leaping forward to 2020 and the path to achievement

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The Company’s Management Board presented key strategic policies and expectations linked to the future development of Telekom Slovenije to employees in February 2016.

Key strategic policies of the Telekom Slovenije Group for the period 2016 to 2020

  • Consolidation on individual markets
    In accordance with its Strategic Business Plan for the period 2015 to 2019, Telekom Slovenije Group has already carried out activities aimed at consolidation on certain markets. Activities will continue in the future, either through expansion or divestment on specific markets.
  • Accelerated construction of the fibre optic access network
    Telekom Slovenije will strengthen its market position by expanding the fibre optic access network, which will provide users high-speed internet access and a superior user experience in terms of broadband content. Significant investments in fibre optic access are thus planned in the coming years.
  • Optimisation of processes and the IT infrastructure
    Through the optimisation of business processes and the IT infrastructure, Telekom Slovenije will transform itself into a dynamic company that will actively adapt to the demands and needs of its users.
  • Growth in the number of broadband in IPTV connections
    We will increase our market share in the broadband and IPTV connection segment by accelerating construction of fibre optic access networks, through a range of convergent packages and by expanding the range of services outside the basic telecommunications activity.
  • Restructuring of personnel
    The Telekom Slovenije Group will continue to optimise labour costs and ensure the optimal number of employees, taking into account the needs of the work process at individual companies.
  • New revenue sources
    We will offer our users the option of leasing a wide range of services in one place. By increasing revenues from ICT services, we will also expand our operations to new areas such as energy, insurance, smart home services, e-m-health, e-m-citizen, e-m-security and e-m-mobility services, big data services, etc.
  • Financial stability
    The financial stability of the Telekom Slovenije Group will be achieved by securing sources to refinance bonds in a timely manner and by securing other sources of financing required to maintain liquidity, by monitoring trends on the financial markets, by further centralising the cash flow of the Group, by establishing effective corporate governance mechanisms, and through the effective management of working capital.
  • Quality
    The quality of services is one of the comparative advantages of Telekom Slovenije Group companies. We will continue to ensure quality through constant development and a comprehensive range of the most state-of-the-art services and solutions.
  • Social responsibility
    The principles of sustainable development are built into the operations, products, services and content of Telekom Slovenije Group companies, while we responsibly manage the economic, social and environmental impacts of our operations. To that end, we actively identify opportunities where we can contribute to the development of the social and economic environment in which we operate through various resources.

Key strategic pillars

Telekom Slovenije will implement its strategy in the scope of the following four pillars:

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Key business expectations of the Telekom Slovenije Group for 2016

  • Investments: up to EUR 156 million
  • EBITDA: EUR 198 million
  • Net operating profit: EUR 34 million