Telekom Austria : Financial Year 2023 Full year Consolidated Non-Financial Report

Telekom Austria AG, listed on the Vienna Stock Exchange,

is a leading provider of digital services and communications solutions in Central and Eastern Europe with around 29 million customers in seven countries: Austria, Belarus, Bulgaria, Croatia, North Macedonia, Serbia and Slovenia. All equity investments have operated under the A1 brand since 2021. Through A1 Digital International GmbH (hereinafter referred to as A1 Digital), Telekom Austria AG o ers industry-speci c solutions for business clients on its core markets and in Ger- many and Switzerland. In September 2023, Telekom Austria AG's cell tower business was spun o into its own company, EuroTeleSites AG. EuroTeleSites AG has been listed on the prime market of the Vienna Stock Exchange since September 22, 2023. The scope of consolidation according to the 2023 Consolidated Financial Statements was referenced for the non- nancial reporting. Information on business operations and the companies included in consolidation can be found in the 2023 Consolidated Financial Statements.

Sustainability is crucial to the A1 Group's business opera- tions. The company is aware of its social responsibility, and attaches great importance to sustainably increasing its enterprise value while taking the relevant economic, ecological and social aspects into account. This goal is supported by the Group's commitment to the Austrian Corporate Governance Code and the application of all the requirements of the internal control system, the Code of Conduct, the compliance

1. The German text of the signed statement, which refers to the German Version of the Report, is the only binding one. The English translation is not binding and shall not be used for the interpretation.

guidelines and Group-wide integrated sustainability management. Compliance with the principles of the UN Global Compact, support for the Sustainable Development Targets and respect for human rights ensure that these strategies and goals are sustainably implemented and achieved by all business units.

The Group ESG (Environmental, Social & Corporate Govern- ance) unit is assigned directly to the deputy CEO of the

A1 Group. Together with ESG leads at the subsidiaries, this unit is responsible for the sustainability agendas.

The Management Boardde nes the sustainabilitystrategy in close coordination with Group ESG on the one hand and in an ongoing dialog with the Supervisory Board on the other. "Group ESG" sets Group-wide targets - in close collaboration with the ESG leads in the countries -, manages the implementation of the ESG strategy through regular reporting and initiates Group-wide guidelines and policies such as the Clean Energy Policy, the Human Rights Policy, the Media Ethics Policy, the Con ict Mineral Policy, the Diversity, Equity& Inclusion Policy, the Responsible Sourcing Policy and the Sustainable Packaging Policy.

ESG targets have been included in management remuneration since 2020. Steering meetings that discuss and report on the implementation of the Group-wide ESG strategy with local ESG leads are held at monthly intervals.

Rigor is ensured by close connections to corporate strategy. A materiality analysis was also conducted with the help of various interest groups to identify central sustainability issues and their material impact. The materiality analysis is performed regularly (every two to three years). The analysis used for this report was carried out in 2022. The issues covered in this report were determined based on the results of this materiality analysis.

Social, legal and regulatory changes are taken into account in ESG action areas as well, such as the impact of the COVID-19 pandemic on the world of work and the service portfolio, or the legal developments in the eld of data privacyand the constant evolution of the Code of Conduct.

high

Stakeholder-relevance

low

1. Information on the issues

derived for the A1 Group from the 2022 materiality analysis

In order to identify the relevant issues, research was performed in 2022 into the potential impact and risks in terms of environmental, social and employee matters. These were also compared against those from the materiality analysis published in 2019 and an industry analysis was performed. These issues have been analyzed, condensed and ultimately compiled into the 28 most relevant issues over several rounds of internal discussion. They have continuously evolved over time and, besides pre-existing issues like data protection and information security, also include new areas such as sustainable products and services. This ongoing development not onlyre ects the constantly changing challengesstemming from risks to the environment, social issues and employees, but also gives all internal and external stakeholders who take part in the survey the chance to express their views.

An online surveywas conducted for the rst timein 2022 on all of the Group's markets - with the exception of Belarus. This includes internal and external stakeholder groups in Austria, Bulgaria, Croatia, Slovenia, Serbia and North Macedonia. The issues were assessed by internal and external stakeholders in an online survey. Stakeholders including customers and suppliers andfrom the elds of the media, politics and special interest groups, research, science and education, business, associations and NGOs as well as employees were invited to take part. A workshop was held with selected internal and external experts to evaluate the impact. The online survey was sent to the A1 Group's management to assess its business relevance. In total, more than 2,000 internal and external stakeholders and managers of the A1 Group took part in the online survey.

The highest rated topics were allocated to the Austrian Sustainability and Diversity Improvement Act (NaDiVeG) areas of social matters, employee matters, environmental matters, respect for human rights, combating corruption and bribery and, as an additional matter, business operations.

Some issues were combined given the overlap in content. The topics of "cybercrime" and "access to information and educa- tion" were combined in a single topic cluster that is discussed under social matters. "Training employees in digital compe- tences" and "skill transformation in the labor market" were also merged. These can be found with the disclosures on "Diversity, inclusion and equity" as well as "New ways of work" and "Em- ployee involvement and well-being" under "Employee matters".

Within "Environmental matters", the issues "Resource optimization and dematerialization" and "Sustainable products and services" were combined given their similarities, and supplemented by "Climate change and carbon footprint of own operating business".

"Compliance" was likewise identi ed as a material issue. The A1 Group has combined it with "Anti-corruption" to form the "Combating corruption and bribery" cluster.

The "Business activities" cluster, similarly formed because of overlaps, contains the key issues of "Data protection and information security", "High-performance and future-proof networks", "Sustainable supply chains", "Innovation and improvement of public services through digitalization" as well as "New business models for customers due to digitalization". These latter two issues were combined into one cluster.

Issues from the materiality analysis

• Business activities: Data protection and information security, high-performance and future-proof networks, new business models among customers through digital- ization & innovation and improvement of public services through digitalization, sustainable supply chains
• Environmental matters: Climate change & carbon foot- print of own operating business, resource optimization and dematerialization & sustainable products and services
• Social matters: Cybercrime + access to information and education
• Employee matters: New Ways of Work, Training employees in digital competences + skill transformation in the labor market, employee involvement and well-being, diversity, inclusion and equity
• Respect for human rights
• Combating corruption and bribery: Anti-corruption + compliance

In view of the new Corporate Sustainability Reporting Directive (CSRD) soon to be implemented, the materiality analysis will be extensively revised and updated in accordance with the European Sustainability Reporting Standards (ESRS) in 2023/2024 and published in the reporting for the reporting year 2024.

2. Material business operations matters

Data protection and information security

Concept

Data protection

Compliance with high data protection standards is a fundamental requirement for the A1 Group which serves to safeguard customers' trust in the Group. The A1 Group strictly adheres to the current legal framework in the eld of data protection and information security. Personal data are processed in accordance with the EU General Data Protection Regulation (GDPR), national data protection laws and the speci c provisions of national telecommunications legisla- tion. In the event of a breach of personal data protection, the data protection authorities are noti edin line with statutory requirements and the data subjects are informed.

The data of the A1 Group's customers, employees, sharehold- ers, suppliers and sales partners are shared with third parties only if there is a legal basis. Any requests for the transmission of data received from the courts, public prosecutors, the police or other authorities are analyzed to ensure their legality. Data are shared only in compliance with legal and regulatory requirements in response to a lawful inquiry. Data subjects will be informed of this, if appropriate, in accordance with the statutory provisions.

In addition to the statutory requirements, all subsidiaries of the A1 Group are required to comply with the information security standards created for this purpose and other country- speci c guidelines on data security. All A1 Groupnetwork operators already satisfy the ISO 27001 standard. The management systems are regularly evaluated. For example, ISO certi cation is reviewed annually. Adjustments are also made as necessary throughout the year.

The data privacy governance approved by the Management Board of the A1 Group provides for the harmonization of the obligations binding for the companies of the Group. This is based on an analysis of local data governance legislation.

The Management Board or management team of the individual subsidiaries is responsible for the processing of personal data in line with data protection requirements. At A1 Austria, the Data Privacy unit in the Legal department assists management in complying with its obligations under data protection law. Moreover, data protection o cers have been appointed at all subsidiaries.

In Austria, both the Management Board and employees are advised and informed bythe data protection o cers of their duties in relation to data protection regulations and compliance with them. Every division must appoint a data protection coordinator to ensure the operational implementation of data protection requirements. This coordinator is the point of contact for all issues in connection with data protection and information security in the division and reports any vulnerabilities or breaches to the Data Privacy and Security units.

Data protection and information security are key principles in the Code of Conduct of the A1 Group. The protection of privacy, and thus respecting the human rights of customers, employees, shareholders, suppliers and sales partners are guiding principles enshrined in it. The Group's contractual partners are required to comply with the principles governed by the Code of Conduct and, thus, to comply with data pro- tection. Furthermore, in their role under data protection law as contract processors, suppliers are contractually required to ful ll the A1Group's requirements for data protection and information security in the processing of personal data.

Data protection and information security are essential within the company as well. All employees of the A1 Group are, amongst other things, required to preserve trade and business secrets. Such con dential information must be stored securely and can only be disclosed internally to persons who require such information for their professional work (need-to-know principle).

Information security

The network operators of the A1 Group form part of the critical infrastructure in all countries. The Group is aware of the special responsibility that this entails. The company is therefore involved in initiatives beyond the extent required by law to continuously improve security.

Since 2020, A1 in Austria is an operator of essential services within the meaning of the Netz- und Informationssystem- sicherheitsgesetz (Austrian Network and Information System Security Act - NIS). Since then, A1 in Austria has been subject to the obligation to report security incidents to the NIS authority and to comply with security precautions and their regulations of the telecommunications sector. In 2023, A1 provided complete proof of the implementation of these security requirements to the NIS authority and thus successfully completed the security audit.

In accordance with the NIS, companies subject to the act must carry out a risk assessment for their suppliers. A1's supplier audit is based on the standard Cyber Risk Rating procedure from Cyber Trust Austria. As A1 in Austria is also a supplier for other companies subject to the NIS, the company itself has committed to complying with Cyber Trust Austria's quality criteria. This is reinforced by being awarded the "Cyber Trust Austrian Gold Label", evidence that customers covered by the NIS can place their trust in A1 as an audited NIS supplier.

The network operators of the A1 Group work closely with the respective authorities to continuously improve cybersecurity. They share relevant security information through the

A1- CERT (Computer Emergency Response Team), which is also a member of the national CERT association ATC (Austrian Trust Circle). Security expertise is shared within the

A1 Group and at conferences domestically and abroad. In 2023, A1- CERT became a member of the global organization FIRST2, con rming the professionalism and high level of" maturity of A1-CERT.

2) FIRST (Forum of Incident Response and Security Teams)

The A1 Austria's Security division has also handled the security governance for the A1 Group as a whole since 2021. Security requirements are being harmonized throughout the Group so that services, such as cloud services or new working models (working from home, remote working, agile teams, remote operation & support, etc.), can still be developed reliably and securely and can be used in live operations.

The function of Chief Security O cer (CISO) was createdin the A1 Group to coordinate security policies and technologies within the A1 Group.

Key performance indicator

To raise awareness and provide training on data protection and information security, there are mandatory annual company-wide online training and more detailed sessions for the individual divisions and data protection coordinators. Moreover, internal communication media and events provide information on current developments. Throughout the Group, around 24,859 (2022: 15,000) e-learning modules in total were completed and additional 5,670 (2022: 2,239) participants were trained in workshops on the topics of data protection and information security in 2023.

Implementation/results in 2023

On the basis of the data protection management system, data protection maturity was increased and goals for the roadmap through to 20257were de ned.

International data transfer, which was a focus issue for the A1 Group last year, returned to the fore this year after the European Commission adopted an adequacy decision for data transfers to the US. The "EU-U.S. Data Privacy Framework" ("DPF") replaces its predecessor agreement, the Privacy Shield. Under this, no additional requirements apply to data transfers to US companies that are certi ed under the DPF. There are no changes to any other international data trans- fers. The A1 Group is continuing to assess the applicable requirements and suitable measures taken on a case-by-case basis. That is how the A1 Group ensures that data transfers outside the EU are in line with data protection requirements.

In 2023, the Group again experienced an increase in distributed denial of service (DDoS) attacks that aim to deliberately overload network servers. More than 200 DDoS attacks per day are registered in A1's backbone. Investment by the A1 Group in automatic DDoS defense allows nearly all of these DDoS attacks to be successfully counteracted. So that A1 business customers can successfully defend against DDoS attacks, A1 o ers DDoS2 automatic protection in all countries of the A1 Group.

Cybercrime in Austriaincreased signi cantly compared to the previous year. More fraudulent SMS messages were sent. Those sending these messages use deception, for example saying that a package could not be delivered to persuade the recipient to click on links in the SMS. Anyone clicking on these fraudulent links and providing their data may become victims of identity theft or money scams or risk losing control of their credit cards or online accounts.

There are many products on the market to better protect customers from increasing cybercrime, some of which are being rolled out in the A1 Group as a whole. These include products such as A1 online protection, virus protection, identity protection and thesafe sur ng package etc.

Particular attention is also paid to supporting the next generation in the eld of cybersecurity. Everyyear, vocational interns are given the opportunity to experience the challenges of running critical infrastructure in practice. Furthermore, in 2023 A1 Austria again sponsored the Austrian Cyber Security Challenge (Austria's largest hacker competition). The goal of these contests is to promote young cyber talent and encourage them to pursue a career in the data protection eld.

High-performance and future-proof networks

Concept

Digitalization and the continuous growth in data volumes are increasing the pressure on the A1 Group's connectivity services infrastructure to provide secure and stable connectivity everywhere and at all times. In recent years, this infrastructure has undergone a strong, rapid expansion owing to the COVID- 19 pandemic and ongoing changes in the world of work and our way of life. With its high-performance and future-proof net- works, theA1 Group o ersadependable basis for increasingly digital working, learning and living environments. At the same time, the A1 Group takes its ecological and social responsibility seriouslyand promotesamore e cient and resource-friendly operation of its networks through innovative technologies that, in turn, support customers' sustainability and help with decarbonization.

The launch and roll-out of 5G mobile technology continues to play a central role and also supports the ongoing digitalization of the A1 Group. 5G licenses were granted in 2023 and in previous yearstoA1 companiesin ve countries: Austria, Bulgaria, Croatia, North Macedonia and Slovenia. The A1 Group is making massive progress in expanding 5G in these countries to o ercustomersahigh-performance, modern network.

There was a material change to the A1 Group's mobile infrastructure in the reporting year: Active and passive infrastructure were separated. Passive infrastructure (the cell towers) was spun o into an independent company, EuroTeleSites AG, in September 2023. This strategic separation allows the

A1 Group companies to increase their focus on developing and providing future-proof networks and state-of-the-art technolo- gies. The clear separation between active and passive infrastructure also has a positive impact on the allocation of funds for investment in expanding broadband. The long-term use of the passive infrastructure is secured by a master lease agreement between the A1 Group and EuroTeleSites.

To o er its customers the highest quality, A1 companies in Austria, Bulgaria, Croatia and North Macedonia are regularly certi ed according to ISO 9001. This ensures that the companies also satisfy international quality standards in terms of their management systems.

Key performance indicators

Capital expenditure bytheA1 Group in scal 2023=amounted to around EUR 1,090 million (2022: EUR 944.4 million) and focusedon theexpansionof"5Gand xed-linebroadband services. Expanding digital infrastructure and the ongoing development of services for A1 customers in Austria accounted for around EUR 590 million of this.

Implementation/results in 2023

Broadband expansion in Austria

A1's focus in Austria in 2023 was both on expanding ber to the premise (FTTP) connections and on 5G coverage. With its FTTP ambitions, A1 is continuously expanding Austria's biggest ber network and, bythe end of 2023, had reached more than 95 % of communities and a total length of 73,019 km. The ber network is based on the ber aggregation network of the mobile base stations, 84 % of which are already connected by ber. This creates a ber network for the requirements of the mobile and xed-line network.

In October 2022, the Austrian regulatory authorities resolved to deregulate manyareas of Austria's broadband ber market. This led to a number of partnerships between A1 in Austria and otherAustrian marketparticipants tousethe ber infrastructure together and provide very high-capacity network services for their respective customers from 2023 onwards. This joint use improvestheeconomic prospects of providing ber-based services at new locations by further increasing the average utilization of these infrastructures and thus helping to further acceleratethe roll-out of berin Austria. Thederegulation was possible as A1 Austria and other providers were able to agreeon joint guidelines for ber usage. Three national and 457 regional operators have already signed up to this agreement. A1 in Austria launched XGS-PON as a new technology for FTTH subscribers to create a network for Gbit/s-enabled services.

In mobile communication, at the end of 2023 about 85 % of Austrians had 5G coverage, the fastest mobile technology. This gives A1 in Austria a leading position in 5G networks, as con rmed by numerous network benchmark tests published in Q4 2023 (FutureZone and Smartphone Magazine) as well as in Q1 2023 (SpeedChecker and CHIP). A1 in Austria is still pursuing its target to provide 5G coverage for more than 95 % of the entire Austrian population.

Broadband expansion in CEE

A1's strategy in Bulgaria in 2023 was again to be the highest -performance mobile network on the local market. The following measures were in place to achieve this:

1. Continual 5G expansion at 3,600 MHz with 1,473 macro locations and coverage in all residential areas with a population of over 3,000. At the same time, active mMIMO antennas are being redistributed at higher-

tra c locations and passive antennas are being moved to rural areas.

2. RAN network update via software upgrades to the latest versions. Activation of new features to improve speed, coverage and latency. Process automation to guarantee stable and reliable performance.

3. Optimization of the strategy for the use of di erent carrier frequencies and frequency bands.

4. Migration of voicetra c to 4G byincreasing the VoLTE& share to 50 %.

In the third quarter, A1's mobile network in Bulgaria received the coveted Speedtest Award from Ookla and was named the fastest network in 2023. This leading position is con rmedby extensive crowdsourcing data from more than 250,000 users across all networks in Bulgaria between April and September. Not only is A1 in Bulgaria committed to providing a high- performance network for its customers, it also wants to stabilize its own energy consumption. Accordingly, the company continued itsenergy eciencyinitiatives with functions and self-optimizing network (SON) modules. SON modules automate network operations by optimizing selected success parameters. Automatically turning o resourcesduring o-peak times increased energyeciency. This reduced power consumption in the radio access network by 7 %.

A1 in Bulgaria alsocontinuedto expand the bernetwork in several cities. In addition, almost all old line terminations were migrated to new systems to enable symmetrical data transmission at up to 10 Gbit/s throughout almost the whole network. Particular focus was placed on WiFi mesh technology, a crucial factor in customer satisfaction. All new modems installed at customers facilities support this technology. If customers want better coverage, only the access points need to be added. All old xed-line predecessor technologies are also being migrat- ed to ber andcustomermodemsmeet the new WiFi6Cstand- ard, which provides speeds of over 1,000 Mbit/s.

After acquiring 5G frequencies in 2021, A1 in Croatia is also continuing the rollout of its commercial 5G network. 1,050 macro 5G base stations were implemented by the end of 2023,

304 of"which with 3.7-GHz?con guration. Thecompanyalso took part in a spectrum auction for existing LTE frequencies and acquired the same amount of spectrum as before, providing a solid basis for future network operations.

At the same time, A1 in Croatia is continuing to invest in upgrading its xed-lineinfrastructureandaccelerating the expansionof" ber. This increased the total number of "homes passed" with ber (household is connected or bercable passes directly by the building) to 329,000 by the end of 2023 (2022: 190,000).

In 2023, A1 in North Macedonia focused on switching to a European vendor of mobile technology. This allowed the company to provide the most cutting-edge radio network in North Macedonia with 700 macro 5G locations, 96 of which with 3.7-GHz?con guration.

In the year 2023, A1 in Slovenia continued the large-scale expansion of its mobile network that began in 2021. By the end of 2023, it provided 449 3,500 MHz and 641 700 MHz 5G mobile network locations. In July 2023, the company again took rst placein theNetCheck benchmark and was named the best mobile 4G/5G network on the Slovenian market, improving the download speed three-fold compared to 2022.

A1 deactivated its 3G network in Slovenia in August 2023. The complexity of the radio system was reduced, and frequencies will be reusedfor the 4G expansion in the rst phase. Energy eciency wasalso improved in 2023: Theentire4G network now runs in dynamic power saving mode during low-capacity periods, and all important power saving functions are also activated in the 5G network. At the same time, work continued on expanding xed berinfrastructure. Theresult of this wasthat 9,262 households weresuppliedwith berat the end of"2023. A total of 3,231 households were connected in the reporting year. Work also began on adding high-performance transmitter receiving modules to new line terminations to prepare for future end user speeds of over 1 Gbit/s.

A1 in Serbiaexpanded its own ber network by 487 kmto a total of 835 km in 2023, with 1,030 stations out of the total 2,590 stations of the mobile network being connected with

ber. TheVoLTE voiceshareat the end of 2023 was 51%. The company also secured the top spot in the NetCheck bench- mark, forSerbia's best data network and for the rst time achieved best results for voice and data service in cities. To ensure automated network operations, A1 in Serbia developed several modules for self-optimizing network operations: tra c-related 3Gnetworkdeactivation, intelligent control of carrier frequencies and frequency bands (mobility load balanc- ing), several modules for checking the consistency of parameters and network health operation, which primarily involves preventative measures to increase success parameters.

Since 2023, A1 in Belarus has focused on accelerating the development of its xed-linenetwork andincreased coverage by 100,000 to 1.3 million households by the end of 2023.

In terms of the mobile network, the company is awaiting the decision of the regulator regarding a 5G license. A1 in Bela- rus successfully introduced the joint use of active 3G network components at 293 locations, together with another mobile communications operator. In addition, following a spectrum reorganization in the 900 MHz frequency band, part of the GSM network was replaced by a second UMTS 900 transmission frequency in some parts of the country. However, there are restrictions on launching an own 4G network. As a result, A1 in Belarus leases a 4G network from an infrastructure operator to provide its customers with the latest mobile technology.

Sustainable supply chains

Concept

The sustainability of business activities cannot be assessed merely by their direct ecological and social impact. It is necessary to consider the entire value chain in procuring globally produced goods and services.

Procurement focuses on the following three strategic areas:

• Create economic value added (e.g., by pooling demand, price negotiations, auctions etc.)
• Ensure reliable procurement (e.g., via alternative/redundant procurement channels, storage etc.)
• Contribute to achieving ESG targets(e.g., risk and oppor- tunities management, supplier due diligence and audits of suppliers and production facilities, corresponding guide- lines and implementation support for partners etc.)

Besides commercial criteria, ecological criteria, such as carbonfootprint andenergy e ciency, also play a rolein the A1 Group's procurement strategy. Governance criteria such as employee rights, anti-corruption provisions and data protection aspects are also taken into account.

Although the A1 Group is not a hardware producer, it uses/ distributes electronic devices and sources components in conjunction with its business activities. Alongside implement- ing, operating and upgrading infrastructure components in the xed-line and mobile network,devices andIT equipment account for the largest share of the procurement volume and so responsible procurement of"minerals from con ict and high- risk areas playsa keyrole. A Conict Mineral Policy wasdrawn up in connection with this. The ESG requirements of the

A1 Group are communicated in the "Responsible Sourcing Policy", which sets out and describes guidelines and internal and external implementation processes.

It includes the following elements:

1. ESG strategy, general conditions and activities
2. Code of Conduct
3. Human Rights Policy
4. Diversity Equity & Inclusion Policy
5. Environmental Policy
6. Con ict Minerals Policy
7. Sustainable Packaging Guideline

and other documents such as:

1. Supplier Code of Conduct
2. Due Diligence Form

The A1 Group also works closely with the JAC (Joint Alliance for CSR (corporate social responsibility)), a voluntary association of telecom operators. Their shared aim is to assess, evaluate and improve suppliers' CSR and ensure sustainable supply chains for all telecom operators involved.

Implementation/results in 2023

The A1 Group has divided its ESG activities in supply chains into two key areas: supplier and procurement transaction. This approach is described in detail in the Responsible Sourcing Policy.

The supplier level comprises strategies such as guidelines in the ESG context. A comprehensive risk assessment of around 11,000 suppliers was carried out in 2023. This looked at variousfactors, including the industrial sector andits speci c characteristics, the complexity of supply chains and relevance as measured by the prior year's revenue. The result is a risk matrix comprising the environmental, social and governance risks.

A due diligence survey was conducted for the highest-risk suppliers (all suppliers that cover 80 % of spending and have a medium to high risk). Implementation of the ESG strategy also involved audits of six supplier production and work locations. Through collaboration with other telecom operators in the JAC, a total of 137 audits of telecommunications production locations, branches and infrastructure projects were conducted in 2023. Mitigation measures were developed for the audit

ndings and arealready being implemented.

The transactional dimension considers the impact of sourcing activities on ESG, e.g. energy e ciencyis a relevant decision criterion in selecting suppliers.

A detailed roadmap for subsequent years was prepared in 2023 to plan and take further steps towards sustainable supply chains with the help of the digital e-procurement system.

All these measures already implemented by the A1 Group play a role, to a certain extent, in meeting the requirements of the future Supply Chain Governance Act. From 2024 on, this compliance is to be stepped up further and reporting is to be brought into line with the CSRD.

New business models among customers through digitalization

• innovation and improvement of public services through digitalization

Concept

The A1 Group's strategic focus covers two core areas: the further development of its core business to remain relevant to customers, and its ambition to make new discoveries in order to explore additional growth opportunities. In keeping with its vision of "Empowering digital life", the A1 Group aims to be the central point of contact and partner for digital transfor- mation, and to cultivate new potential through innovation in digitalization, such as cloud, security and ICT solutions and in the eld of the Internet of Things (IoT).

Innovation should enable as many people as possible to experience the bene ts of digitalization - including marginalized communities and people with special needs. Moreover, the A1 Group is an important partner in time of crisis (e.g. the COVID-19 pandemic, natural disasters, etc.). Founded in 2017, the A1 Digital subsidiary makes important contributions to providing innovative business solutions. This focuses on the development of innovative, highly scalable platform and software-based B2B products in the areas of the cloud, IoT, machine learning and security products.

As part of the A1 Start Up Campus, A1 Austria also helps new companies to make innovations a reality by providing expertise and infrastructure, especially for start-ups with a focus on "digital services & technology", "environment & sustainability", "education" and "information security & data analysis".

Implementation/results in 2023

A1 Austria and Exoscale, a wholly-owned subsidiary of A1Digital, opened a second public cloud zone at the A1 Next Generation data center in Vienna in 2023. This expansion represents a milestone in the development of a reliable and secure cloud that complies with European law for companies in and outside Europe. With Exoscale's innovative cloud infrastructure, A1 provides a European cloud solution that meets all requirements of the General Data Protection Regulation (GDPR) and

paves the way for the EU Directive NIS-2, the primary aim of which is to improve the protection of critical infrastructure. Companies have full sovereignty over their data and a redundant public cloud that isspeci callytailored totheirneeds. The Exoscale cloud platform is based on in-house software (IP) as well as the latest technology from Intel. This forms the basis for cloud applications that meet current and future requirements.

The start-up "myResQ" also moved in at the "A1 Start Up Campus" in 2023. The company develops innovative, wearable prototypes of smart glasses that help the wearer respond quicklyin an emergency. Through thesmart glasses, rst aiders receive instructions from the emergency call center so that they can take the right life-saving measures without delay. Employees at the emergency call center see exactly what the

rst aiders onthe ground are seeing andcangivespeci c instructions either verbally or using augmented reality. This is accelerating the digital transformation in the healthcare sector and helping improve medical emergency management.

Digitalization alsomakes it possibleto o er new solutions and products for people with special needs or those in marginalized communities and to make a contribution to inclusivity. New information and communication technologies can, for example, help the blind or the severely visually impaired integrate into the general education system without having to use Braille. A1Croatiaalso o ersvisually impairedpeoplemobile phones with largerdisplaysor simpli edmenu navigation. Deaf people benet from SMS and chat messages. For exam- ple, A1 Austria provides an option to add an additional 10 GB of datatoa mobilephone tari so that deaf people can benet from greater SMS and data volumes to communicate with their friends andfamilies. A1in Belarusoers aspecial reducedrate for people with disabilities, veterans and welfare recipients. Moreover, health naturally plays an essential role in a society where people are living longer. As a result of the COVID-19 pandemic in particular, the focus has shifted to innovations in the eld of"e-healthcaresolutions - they are thefutureof"the healthcare system in many areas. A1 Austria is already facilitating a medical data network and supplying the infrastructure for large parts of the Austrian e-card system.

Due to further development the promotion of new business models, network availability in outlying areas is increasingly im- portant. However, network availability extends beyond day-today use and is especially essential in an emergency. Specially trained emergency teams are deployed in crisis situations. This was the case, for example, in summer 2023 when storms in Austria resulted in power cuts and caused the A1 network to go down. Infrastructure for the coverage areas was quickly restored thanks to the work of the A1 crisis management team and mobile emergency generators. This was crucial for smooth communication between the redepartment, police, rescue services and, last but not least, thosea ectedon the ground.