OTE Group Sustainability 2016

Through technology and innovation,
we create a better world

OTE Group Sustainability 2016

Through technology and innovation,
we create a better world

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1 OTE GROUP

Focused
on people

OTE Group is the largest telecommunications provider in the Greek market, and, together with its subsidiaries, forms one of the leading telecom groups in South-eastern Europe. OTE is among the three largest listed companies, with respect to capitalization, in the Athens Stock Exchange and the Group employs approximately 21,000 people in three countries. The Group offers the full range of telecommunications services: from fixed-line and mobile telephony, broadband services, to pay television and ICT solutions. In addition to its core telecommunications activities, the Group in Greece is also involved in maritime communications, real-estate and professional training.

Countries of Operation

REVENUES

0 bn

ADJUSTED EBITDA

0 bn

MARKET CAPITALIZATION

0 bn

EMPLOYEES

>0

INVESTMENTS

0 mn

OTE Group Financial Performance

-3.3% -0.4% 0.1%
36.3% 34.4% 33.8%
3,918.4 1,421.6 2014
3,902.9 1,343.6 2015
3,908.1 1,320.9 2016
Revenue (mn €)
Adjusted EBITDA* (mn €)
Adjusted EBITDA margin* (%)
Revenue trends yoy (%)

* Excluding the impact of costs related to voluntary leave schemes, other restructuring costs and non-recurring litigations

Distribution of revenue 2016**

2% Mobile Telephony
Albania
36% Fixed Telephony
Greece
27% Mobile Telephony
Greece
14% Fixed Telephony
Romania
11% Rest Services
Greece
10% Mobile Telephony
Romania

** Gross figures (excl. eliminations)

2 SUSTAINABILITY

We create value

Our Sustainability strategy is an integral part of our corporate strategy. We contribute to make a better world for all, through technology. We connect people by providing advanced communication and entertainment services and by helping businesses grow. Our strategic goal is to be a modern, dynamic, customer-centric, high-performance organization with a leading market position. With each initiative, we seek to advance our sustainable business, supporting the society and protecting the environment.

OTE Group Sustainability Strategy & Value Creation

Responsible Business

0 mn
revenues
>€0 mn
taxes and insurance contributions

Responsible Employment & Development

0 mn
employees' salaries
0%
of the employees participated
in training programs*

Digital Society

0 mn
investments
>0%
of telecommunications market investments in Greece

Better World for All

>€0 mn
social contribution
>€0 mn
beneficiaries

Sustainable Environment for All

0%
of wastes generated were recycled
0GWh
energy conservation and €8.8 million savings of operational cost*

Ratings

0
international Socially Responsible Investment (SRI) ratings

* Values covering ΟΤΕ and COSMOTE

3 RESPONSIBLE
BUSINESS

With responsibility, integrity, transparency

We seek to set an example by operating responsibly at all levels and throughout our value chain. For this reason, we have developed processes, policies, tools and mechanisms that allow us to manage issues related to: Enterprise Risks and Compliance, Human Rights, Business Continuity, Quality, Environment and Energy, Data Security and Privacy, Safe and Responsible Use of Technology, as well as Responsible Procurement and Supply Chain Management. In addition, in order to provide customers, employees and partners / vendors with an integrated digital experience, utilizing the new digital capabilities, we proceed to our digital transformation.

Digital Transformation

0%
increase of the COSMOTE mobile apps users
0%
increase of the customers using e-bill ~ 1 mn customers
0 in 0 sales
is performed through e-channels

Responsible Procurement and Supply Chain Management

0%
of new candidate suppliers were checked on integrity
0%
of the purchases of OTE and COSMOTE invoiced were from companies registered in Greece

Data Security and Privacy

Establishment of security standards for the implementation of 60 new systems or services

Compliance Internal Trainings

0%
increase in the total trainings realized
0%
of the new employees were trained

OTE Group Situation Center

0
events of business continuity were addressed
0
possible business continuity incidents in total, were evaluated

4 RESPONSIBLE EMPLOYMENT AND DEVELOPMENT

We care
for our people

We provide a sustainable work environment, we encourage our employees' development and we offer opportunities. We seek to cultivate a common high performance, collaboration and teamwork culture and an open feedback and communication environment, aiming to our employees’ satisfaction. Our goal is to be perceived as an attractive and desirable employer for existing and new employees. For the improvement of our employees’ experience, we develop digital tools and systems. At the same time, we design and implement contemporary digital skills programs, meeting the needs of the new digital era.

Employment

0
employees
0%
in Attica
0%
in the Greek Region

Fair Employment and Equal Opportunities

0%
of OTE and COSMOTE employees are covered by collective labour agreements

Women in Managerial Positions OTE-COSMOTE

2016
0%
2015
0%
2014
0%

Health and Safety

0
hours of technical and occupational
health inspections

Training & Skills Development

0
employees’ participations in training programs
0
training hours via e-learning, for employees
from retail shops and customer care service centers

Employee Communication, Engagement and Satisfaction

0%
employee's participation in satisfaction surveys (Pulse Surveys)
~0 out of 0
employees visit, on a daily basis, the new intranet "mynet"

5 DIGITAL SOCIETY

With a vision

We contribute to building a digital society, with respect to the consumer and in the context of responsible competition. We connect people to a world of unlimited digital capabilities, with the aim to improve their lives. We invest in the research of new technological solutions, by participating in research projects and in collaboration with other organizations. We develop innovative products and services environmental and social benefits. We provide safe products to the market with the appropriate labeling and information, we implement full transparency on the products and services’ pricing and responsible marketing and advertising practices.

Connectivity for All

0%
population coverage
by 4G+ network
0%
population coverage
by 4G network
>0 million
households & businesses with VDSL access to up to 50 Mbps

Research and Innovation

5G
Internet of
Things (ΙοΤ)
Cloud
Data
Privacy
Participation in 23 research projects in total (Co)funded by the European Commission
0
research projects with benefits to society and the environment
0
self-financing of research projects

Products and Services for Sustainability

e-Health
e-Tourism
Business
Cloud
e-Energy
Fleet
Management
Electronic
Applications
Smart Cities

6 BETTER WORLD
FOR ALL

Next to those in need

During these challenging times for the Greek society, we support vulnerable social groups, children, education, entrepreneurship, local communities, culture and sports. We implement programs and we participate in initiatives aiming to contribute to the communities where we operate. We invest in the development of digital skills of people of all ages and also, we contribute to the strengthening of entrepreneurship, through the possibilities offered by technology. We promote culture through technology and we offer special products and services for vulnerable social groups.

OTE-COSMOTE Social Contribution

€2.8 mn €3.2 mn €3.6 mn
2014 2015 2016
>0 mn
beneficiaries
>0
local communities’ initiatives
>€0 mn
discounts to the elderly and to people with Disabilities

OTE Group Telecommunications Museum

>0
visitors
0
exhibits
>0
digital archives on the www.otegroupmuseum.gr

Employee Volunteering

>0
employees’ participation in social contribution initiatives

OTE Group Blood Donation Program

2014 2015 2016 2,604 2,360 2,912 Blood Units

Significant Social Initiatives

Creation and equipment of 3 Trauma Centers for children, offering care to more than 25,000 children annually
Support of 16 charitable organizations caring for more than 100,000 children
Digital Skills
Robotics

7 SUSTAINABLE ENVIRONMENT
FOR ALL

We care for our
fragile planet

We fully realize that, though low, there are environmental impacts associated with Information and Communication Technologies (ICT) activities. At the same time, ICT products and services offer a number of opportunities for supporting sustainable development in many activities and sectors. In this context, the objectives of our Environmental Strategy are: (a) the minimization of the environmental impacts from our activities, (b) the development and provision of products and services that enable environmental protection, and increases in productivity in other sectors of economic activity and (c) the raising of our stakeholders’ awareness on acting more responsibly onthe issue of environmental protection.

Energy and Climate Change

For the 0th consecutive year we secured Guarantees of Origin, assuring that 100% of our electricity consumption has been produced from RES**
0%
improvement in electricity consumption per volume of data transferred
0%
reduction to direct and indirect GHG* emission from energy consumption, compared to 2008

73.2 GWh Energy conservation, 46,400 tCO2 eq GHG* emissions avoided and € 8.8 million economic benefit

2016
0GWh
2015
0GWh
2014
0GWh

Energy conservation (GWh)

0GWh
total energy consumption
Certification of Energy Management System for 2 buildings and 5 base stations, according to ISO 50001:2011

*GHG= Greenhouse Gas

**RES= Renewable Energy Sources

Circular Economy

0%
of our waste generated, was recycled

5,900 t Total of Waste Generated

Technical
3,950 t
Hazardous
545 t
Paper
386 t
Other
625 t
Residual
398 t
0 t
of paper saved due to the utilization of IT applications
0
employees have access to 206 recycling stations and more than 3,100 paper recycling bins, in 17 buildings nationwide

Electromagnetic fields

0
excesses of public exposure safety limits for non-ionizing radiation
0
measurement stations
0 mn
measurements in the framework of “Pedion 24” program