Annual Report 2020 Annual Report 2020

TABLE OF CONTENTS GENERAL INFORMATION ON ESTONIAN PUBLIC BROADCASTING ...... 3 MANAGEMENT REPORT ...... 4 Developments and activities related to COVID-19 ...... 5 Programmes and departments ...... 7 ETV...... 7 ETV2 ...... 7 ETV+...... 8 Vikerraadio ...... 8 Raadio 2 ...... 8 Klassikaraadio ...... 9 Raadio 4 ...... 9 Raadio ...... 10 Jupiter ...... 10 News and sports department ...... 10 Audiences ...... 12 Archives ...... 16 Technical development and investments ...... 16 Department of Property and Transport ...... 17 Structure and staff ...... 17 Internal control and risk management ...... 18 Budget and its implementation ...... 19 FINANCIAL STATEMENTS ...... 21 Balance sheet ...... 21 Statement of financial performance ...... 22 Statement of changes in net assets ...... 22 Cash flow statement ...... 23 NOTES TO FINANCIAL STATEMENTS ...... 24 Note 1 Accounting methods and measurement bases used in the preparation of the financial statements . 24 Note 2 Cash and bank ...... 28 Note 3 Trade receivables ...... 29 Note 4 Taxes ...... 29 Note 5 Prepaid expenses and other short-term receivables ...... 29 Note 6 Inventories...... 30 Note 7 Long-term prepayments ...... 30 Note 8 Investment properties ...... 31 Note 9 Property, plant and equipment ...... 32 Note 10 Intangible assets ...... 33 Note 11 Long-term debt and pledged assets ...... 33 Note 12 Operating lease ...... 34 Note 13 Payables and prepayments ...... 34 Note 14 Deferred income ...... 34 Note 15 Provisions ...... 35 Note 16 Income from state budget ...... 35 Note 17 Revenue from sales of services and other revenue ...... 35 Note 18 Programme production, transmission and archiving costs...... 37 Note 19 Management and administrative expenses ...... 38 Note 20 Other expenses ...... 38 Note 21 Staff employees ...... 38 Note 22. Off-balance sheet assets, binding future liabilities and conditional liabilities ...... 38 Note 23 Transactions with related parties ...... 39 INDEPENDENT CERTIFIED AUDITOR’S REPORT ...... 40 SIGNATURES OF MANAGEMENT BOARD OF PUBLIC BROADCASTING ...... 43 OPINION OF AUDIT COMMITTEE ...... 44 SIGNATURES OF SUPERVISORY BOARD OF PUBLIC BROADCASTING ...... 45

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GENERAL INFORMATION ON ESTONIAN PUBLIC BROADCASTING

Name: Estonian Public Broadcasting (ERR) Legal form: legal entity in public law Postal address: Kreutzwaldi 14, 15029 Tallinn Telephone: +372 628 4100 E-mail: [email protected] Website: www.err.ee Registry code: 74002322 VAT payer’s registration number: EE101148858 Financial year: 1 January – 31 December 2020 Principal area of activity: production, transmission and archiving of broadcasting programmes

Management Board: Erik Roose (Chairman of the Management Board) Riina Rõõmus Urmas Oru Joel Sarv

Supervisory Board: Rein Veidemann (Chairman of the Supervisory Board) Peeter Espak Priit Hõbemägi Viktoria Ladõnskaja-Kubits Jevgeni Ossinovski Valdo Randpere Anti Poolamets Viktor Trasberg Marika Tuus-Laul

Organising ministry: Ministry of Culture

Auditor: AS PricewaterhouseCoopers

Estonian Public Broadcasting is a member of the EBU.

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MANAGEMENT REPORT The year 2020 was everything but ordinary due to the global pandemic that affected the whole world. The new problems and resulting restrictions have also been leaving an unprecedented mark on the activities of Estonian Public Broadcasting since early March. Many plans launched in January and February had to be cancelled or adjusted to the new situation. The coverage of cultural and sports events was hit particularly hard, as many major events in and the world were cancelled or postponed due to the spread of the virus. The Olympic Games and the European Football Championship were postponed until 2021. The biggest annual song contest, Eurovision, was also cancelled. This is why we reserved the broadcasting costs of these and many other events until the following year, hoping that everything would get back to normal. A more detailed description of the activities of ERR, in order to reduce the impact of COVID-19 in the reporting year as much as possible, is given below. An important event for us was the launch of the streaming platform Jupiter in April 2020, which marked the achievement of an important strategic goal of the management board – to conform with the changes in media consumption and offer the best content to the younger generation of taxpayers, who don’t have old-school TV sets or radios in their homes. The service, which took a long time to prepare, was well received by users from the moment of its launch. The combination of the best experiences of foreign analogues and high-quality local content turned out to be a successful new environment, where users could easily find and catch up with our everyday shows. Unlike most foreign platforms, we added audio content, which is produced by our radio programmes, to our service. In addition to this, we also keep making the best shows in our archives accessible to viewers via Jupiter. The content meant for the youngest viewers can be easily accessed online via Lasteekraan. As said above, the pandemic that hit us all brought along many changes in the organisation of work. For programmes, avoiding the risk of infection meant changes in the schedule and the structure of shows, e.g. the number of external guests in the building was significantly restricted, but the biggest challenge for our staff was moving from their workplaces to home offices. One of the criteria was that the safest possible conditions had to be created for the people whose presence in the broadcasting buildings was essential. The first priority set by the management board at the start of the crisis was the continuity of all programmes of ERR. The Public Broadcasting Act, which covers our obligations in situations that threaten our state, also puts public broadcasting staff in the same group as medical professionals, internal security or the Defence Forces. We dare to confirm that we managed to perform our duty, which is to guarantee the communication of adequate information in situations of risk, thanks to the excellent and selfless work of our colleagues. This is once again confirmed by our viewing figures, which are excellent in all areas. The number of viewers of the Russian-language ETV+ in particular increased rapidly and our online portal is also becoming increasingly more popular among readers. All other programmes can be considered ‘market leaders’ in their fields. Unfortunately, our success also caught the eye of private media who, despite their self-reported successful year, considered it necessary to file an extensive complaint with the European Commission in autumn 2020, where they contested several services of ERR as incompatible State Aid. ERR and the Republic of Estonia have denied these allegations in their initial response. At present, the complaint and our response are being considered in the European Commission and it’s impossible to predict the schedule of the process. A similar dispute in the Republic of Finland lasted almost 10 years. On the technological side, we continued to bring the production process in compliance with the Cyber Security Act, which will become applicable to ERR on 1 January 2022, despite the delays in 4 Annual Report 2020 state financing on several occasions. The procurement of the new broadcasting station was also prepared. The station is currently being built in Lithuania and should be ready by autumn 2021. Preparations for the construction of the new TV building continued. A significant setback here was the decision with which the previously authorised extension normative was replaced with the rules of a separate new building and the associated detailed plan. Unfortunately, this postponed the planned processes for at least a year. Despite this, the management board and the architects continue to work hard on getting through the gauntlet of the detailed plan, completing most of the design and, if possible, announcing the construction procurement in 2021.

Developments and activities related to COVID-19 Live and special broadcasts ETV, ETV+, Vikerraadio and ERR.ee broadcast the midday press conferences of the Health Board every day since the start of the emergency. Other important broadcasts (e.g. press conferences of the Tallinn City Government, sessions of the Riigikogu) and addresses (e.g. the addresses of the Primate Minister) were also included in the programmes. The ERR.ee portal continued with live broadcasts throughout the year. News and current affairs shows Since the emergency in March and until the end of the year, public broadcasting offered news on all aspects of the coronavirus as well as other affairs in Estonia and the world to the biggest audiences in Estonian, Russian and English on its digital platforms, TV and radio. In addition to news and information on current affairs, radio and TV shows offered practical advice (e.g. work, health, learning, support) and recommendations on how to spend leisure time (e.g. book recommendations, exercising at home). ETV and ETV+ added the midday “Aktuaalne kaamera” news show to their programmes. It was also possible to watch the shows online. ETV showed “Esimene stuudio” four times a week to provide detailed coverage of current affairs and ETV+ broadcast “Nädala intervjuu” live in order to bring information to viewers as fast as possible. The programmes actively involved the viewers. The ETV show “Suud puhtaks” opened a telephone line for questions, and Vikerraadio changed the format of some of its “Huvitaja” and “Reporteritund” shows by involving various experts to whom listeners could send questions. Raadio 4 added a corona-themed chat show to its programme, where politicians, experts, opinion leaders, etc. could have their say. A separate page for the thematic shows was created online. ETV2 and ETV+ showed “Püha päeva palvus” from March to late May. On the back of the corona crisis, ETV prepared show cycles with a fresh approach to economic affairs (“Kriisirulett”), mental health (“Selge pilt”), learning (“Maailma kõige targem rahvas”), teachers (“Mina, õpetaja”) and the impact of the coronavirus on Europe (“Johannese lähetamine”). ETV+ added the summer programme “Suvestuudio”. Experiences and culture TV became an important mediator of events as a result of the restrictions – ETV offered the special Midsummer Day programme “Terve Eesti jaaniõhtu”, “Pardiralli” was televised for the first time and the theatre awards were presented as a TV show. The special shows of ETV covered life in Estonia: the inclusive “Mis teie kodus uudist?”, the show in support of Hospital,

5 Annual Report 2020 concert event “Kevad tuli teisiti”, the gratitude event held during the corona spring in the Botanical Gardens. TV, radio and the online channel Jupiter highlighted significant cultural moments (e.g. 100, Georg Ots 100, Jaak Joala 70). ETV and ETV2 increased the share of shows portraying distinguished people in their programmes. The new show cycle “Plekktrummi raamatud” started in ETV2 in order to promote understanding the world via books. The e-dictation was carried out by Vikerraadio and ETV+ intermediated the Russian-language version, Theatre, music, cinema ETV2 showed recordings of theatre performances and concerts of classical music every week from late March to early July. In autumn, Saturday became the evening that offered cultural experiences by broadcasting concerts, performances and cultural documentaries. Portaaliteater started on the cultural portal – one performance was made available on the portal every day from 31 March. Raadio 2 considerably increased the share of Estonian music in its programme to support local performers, authors and phonogram producers and invited all radio stations to join the initiative. The listeners’ thirst for cinema and concerts was quenched by the new formats R2 Veeilaiv and R2 Minidok – the premieres of the online concerts and musical films of Estonian artists on the Raadio 2 portal and special programmes of the summer concerts cancelled because of corona. Estonian music had a special role in the programme of Klassikaraadio. In the weeks music festivals were cancelled, recordings of the same festivals from previous years were played. Many thematic shows focused on the situation in music and culture during the pandemic. ETV increased the share of concert shows in 2020 – concerts of classical music were added to the Sunday programme in March. ERR portals (Kultuuriportaal and Menu) offered daily advice on alternative ways of spending free time, including free watching and listening recommendations, bits from the archives of ERR, options to preview films online, etc. The free online channel Jupiter.err.ee launched in April. Content aimed at children and young people ETV2 launched an additional daytime programme for schoolchildren in March. Documentary series and local science shows that cast light on the topics of science and nature were shown on every weekday. The children’s show NOVA covered topics like exercising at home, games that can be played outdoors, ideas for arts and crafts at home, but also domestic violence and how to notice it. Content was added to the lasteekraan.ee page with series, audio books and associated activities (e.g. instructions for crafts and colouring in pages). The home-school timeline was added to the website in April, which offers materials that support home-schooling (e.g. basics of the Estonian language and mathematics, knowledge of the world, nature and health, music and handicrafts, options for doing things together). Vikerraadio included the additional children’s show “Lastelood” and the entertaining series “Hää takt” about the culture of behaviour in its programme. Educational shows “Laste ööülikool” and quiz show for young people “Miniturniir” were also recorded and broadcast.

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ERR launched the media literacy project “Meediataip” aimed at young people and teachers – training videos, articles, radio stories and other material was posted on the special page err.ee/meediataip and the Russian versions on rus.err.ee/mediagramotnost.

Programmes and departments ETV In 2020, the coronavirus wreaked havoc with the planned programmes and created a lot of challenges in the production of shows. At the same time, it also gave the opportunity to be necessary for society, and respond quickly to changes. ETV provided daily coronavirus information and advice on how to cope in the new situation. The series “Kriisirulett”, which focused on corona problems, was launched and the travel series “Johannese lähetamine” took a look at how European countries had adapted to the pandemic. The series of home videos “Mis teie peres uudist?” and special shows in support of Saaremaa Hospital were launched during the lockdown in spring and the programme also included more cultural experiences to offer people an alternative for the cancelled events. The major events in 2020 were: Anniversary of Tartu Peace Treaty, celebration of the anniversary of the Republic of Estonia, completion of EV100, Estonian Congress 30, Eesti Laul, the environment week, Victory Day and Midsummer Day, the various projects of ETV65, incl. ÖöTV. Jõulutunnel raised donations in support of Cancer Treatment Fund “Gift of Life” and we were also the partners of Pardiralli this year. ETV also produced a number of special shows, such as portraits celebrating jubilees and anniversaries, and broadcasts of concerts and other events. Many events were celebrated via TV screens because of the coronavirus. New show cycles were launched in 2020: “Suus sulav Eesti”, which combines the beauty and delicious flavours of Estonia and “Selge pilt”, which covers problems related to mental health. The series “Maailma kõige targem rahvas” spoke about contemporary learning and the series “Mina, õpetaja” portrayed inspiring teachers. There were also the premieres of the crime show “Reetur” and entertaining quiz show “Telelegendide lahing”, “Noor meister” that introduced the vocational education of young people, the series “Kriisirulett” and the series of short videos “Minu Eestimaa”, which introduced our beautiful homeland. The new seasons of the series “EnsV”, “Eesti lood”, “Iseolemine”, “Klassikatähed”, “Värvimuusika”, “Rakett69”, “Eesti mäng”, “Johannese lähetamine”, “Reisile minuga”, “Oma saar” and “Üle noatera” were also released.

ETV2 In 2020, ETV2 continued showing educational animated series and children’s films in the children’s zone and produced its own weekly children’s show: Lastetuba for pre-school children and NOVA for children aged 8–12. ETV2 also recorded the children’s show “Mauno saladuslik kadumine”. The broadcast Jaan Kross 100 was shown to mark the 100th anniversary of the birth of Jaan Kross. Discovering Estonia, the concert held on the anniversary of the birth of Veljo Tormis, the jubilee concert of Arvo Pärt and the broadcast of the Pärnu Music Festival. The concert of the Chamber Choir of the Estonian Philharmonic Society adorned the Christmas week. Three theatre shows were recorded: “Isamaa pääsukesed” of the Drama Theatre, “Cabaret ” of the Piip ja Tuut Theatre and “Emadepäev” of the Ugala Theatre. The cultural series “Plekktrumm” continued and the series “Plekktrummi raamatud” was launched. Shows portraying the following cultural icons were made: Georg Ots, Uno Loop, Olav Ehala, Andrus Kivirähk, Ülle Lichtfeldt, Merle Palmiste, Mari Lill, Martin Veinmann and Arvo Kruusement. Thematic months and events based on documentaries and feature films were held: DocPoint, Francophonia Month, Iberofest, Environment Month, Nordic Film Month, Digital Culture Month, 7 Annual Report 2020

Human Rights Month, Matsalu Nature Film Festival, Month of Food Films and Fashion Design Month were also held. ETV2 added documentaries about nature and science to the daytime zone during the emergency in order to support home-schooling. A theatre show was added to the Saturday evening programme and classical concerts were shown on Sundays. In addition to the daily AK sign language news, ETV2 broadcast the speeches of the President of the Republic of Estonia of 24 February and 20 August and New Year’s greetings on 31 December with translations into sign language and subtitles in Estonian.

ETV+ 2020 was a successful year for ETV+. The changes in the programme and the special shows resulting from the emergency were well received by the viewers. A midday news show, live broadcasts from the press conferences of the Government of the Republic and the Tallinn City Government, regular addresses by the Prime Minister and the Sunday prayers of different confessions. Broadcasting the press conferences of the Tallinn City Government started again from the middle of November. All of the channel’s own shows adjusted their formats according to the restrictions and were aired according to schedule. They are the breakfast show “Kohv+”, chat shows “Oma tõde”, “Kes keda?” that became bilingual in autumn and “Narva stuudio: Rahvale tähtis”, consumer show “Peegel”, pet keeping show “Meie kõrval”, investigative “Insight”, current affairs show “Nädala intervjuu”, quiz show “Eesti gloobus”. The new shows aired in the spring season are the quiz show “Euroopa mäng” to mark the Europe Day and the series “Öko?Loogiline” aired during the environment month. The new “Suvestuudio” made it possible to keep people watching ETV+ during the summer, creating a strong foundation for the start of the autumn season. The new projects of the autumn season were the historical docureality “90.ee”, quiz show “Mis? Kus? Millal?” and Aljona Suržikova’s documentary series “Edulood” that introduces the Russian- speaking celebrities of Estonia. The single projects that can be highlighted is the documentary “Hääled küngaste taga”, which premiered on ETV+ in December and is dedicated to the Russian poet David Samoilov, who used to live in Estonia for some time. ETV+ has also celebrated the anniversaries of the birth of Georg Ots, Jaak Joala and other cultural icons in its programme.

Vikerraadio In addition to the usual Vikerraadio programme, where a fair number of adjustments were made in relation to the corona crisis, various special projects also reached the listeners in 2020. The series dedicated to the anniversary of the Constitution of the Republic of Estonia, the 100th anniversaries of the birth of Jaan Kross and Georg Ots and the 70th anniversary of the birth of Jaak Joala deserve special mentions. The date of the e-dictate of the Mother Language Day had to be moved to 3 April because of the declaration of the emergency, but despite this it attracted more participants than in earlier years with 7,270 people submitting their dictates. The Vikerraadio TOP 100 Estonian-language songs for Midsummer Day and the best Estonian- language speaking autumn songs broadcast in September proved to be very popular. New series were also added to the programme. “Harri Tiido taustajutud”, a series that takes a look inside international politics and interview show “Toomas Sildami intervjuu”, which focuses on the topical backgrounds of Estonian life every week. The must popular Vikerraadio shows on catch-up were “Järjejutt”, political show “Sildam ja Samost”, David Vseviov’s “Müstiline Venemaa”, political show “Rahva teenrid”, the radio lectures of “Ööülikool” and “Käbi ei kuku”, which is hosted by Sten Teppan.

Raadio 2 2020 started for Raadio 2 with a major event. Eurosonic and Eesti Laul. Three Estonian artists were presented at this year’s biggest European talent festival Eurosonic: Yasmyn, Mart Avi and Estoner. 8 Annual Report 2020

Raadio 2 broadcast the semifinals and final of the Eesti Laul song contest live and organised a series of studio concerts of the artists who took part in the contents in Studio I of Eesti Raadio. The corona crisis of spring was reflected in the programme of Raadio 2 with the significant increase in the volume of news and the music selection of the station. In order to support local artists, authors and phonogram producers, Raadio 2 increased the share of Estonian music in its programme considerably and invited all local radio stations to join the initiative. Estonian music comprised over 60% of the music selection of R2 in spring. The special projects of R2 that attracted attention were the listener survey “Kümnendate kümnend”, the celebration of the international Radio Day in cooperation with private stations, the special programme of media competence “Meediataip”, R2 DJ Weekend and R2 Band T-shirt Day. Over 50 concert recordings from Europe reached listeners with the help of the EBU. R2 Aastahitt ended up the most popular of all time with 190,000 voters. The new hosts who joined the R2 programme include Gameboy Tetris, Vaiko Eplik, reket, Harry Tuul, Rain Tolk and many others. The most popular shows on catch-up were “Rahva Oma Kaitse”, “Olukorrast riigis”, Kristjan Port’s “Portaal”, Ivo Tšetõrkin’s “Reispass” and “Laupäeva hommik”.

Klassikaraadio Klassikaraadio celebrated its 25th anniversary with a lot of archived shows from different decades. An overview of the history of Klassikaraadio was prepared (on the homepage). Jüri Reinvere composed “Klara kaks käevõru” for the chamber orchestra for the jubilee concert, but unfortunately the concert itself had to be postponed until 2021. The main emphasis during the isolation period in spring was on Estonian music. A series of concerts and the eight-part series about the composer’s life and work by Tiina Järg were aired to mark Beethoven 250. The quiz on the Music Day on 1 October was also dedicated to Beethoven. The project “Luuleline suvi”, dedicated to Estonian poetry, was broadcast every day in summer. A special programme about the work of Veljo Tormis was aired in August to mark the 90th anniversary of the composer’s birth. The most important new series are the literary show “Gogol” and pianist Johan Randvere’s show “Must klahv, valge klahv”. The shows of the “Klassikatähed” series were also aired on radio in cooperation with ETV. 157 concert and musical events from Estonia were recorded and aired, and 15 concert broadcasts were intermediated to the EBU Music Exchange Programme. In February, Klassikaraadio organised the international workshop for music editors “Muusikaajakirjandus raadios” in Tallinn. Mari Kalkun was named Musician of the Year 2020 on the initiative of Klassikaraadio.

Raadio 4 The focus of Raadio 4 in 2020 was on historical events and anniversaries. The year began with the series “Vabadussõda 1918–1920”, which marked the 100th anniversary of the Tartu Peace Treaty, the short series “Jaan Kross – 100” and “Mister X. Georg Ots – 100” were aired in spring and the special programme “Jaak Joala 70” in June. During the emergency, Raadio 4 gave its listeners important and topical information and advice, and the opportunity to have their questions answered by experts. A website for shows and news about the coronavirus was created. The summer programme included the charity show “#Headus”; “Siidiliblikas” dedicated to Japanese and Chinese culture; and “Räägime suvilast!” for holidaymakers. The sixth season of the series “Kirjanduslik diksiländ Jelena Skulskajaga” was dedicated to Estonian children’s literature. Raadio 4 was also represented at the Viljandi Folk Music Festival and Paide Opinion Festival. The series “Õigusabi”, which introduces Estonian legislation, and “Lasnamäe lood”, which is dedicated to the architecture and history of the capital’s biggest district, started in autumn 2020. The focus group survey of Raadio 4 was carried out in November in order to map the expectations and opinions of the listeners.

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Raadio Tallinn Raadio Tallinn, which can be heard at the frequency of 103.5 MHz in and around Tallinn offers background music during the day (from 7–22) and the radio news of public broadcasting on every hour. Foreign news and information shows (BBC, RFI) are aired from evening to morning. Outside Tallinn, it’s possible to listen to Raadio Tallinn online.

Jupiter Jupiter, the newest programme of ERR, was born on 22 April 2020. Every week, Jupiter offers its viewers and listeners fresh content from all programmes of ERR, digs out ‘old gold’ in cooperation with the archive and wraps it in contemporary form. Jupiter also makes it possible for viewers to watch procured content at the time that suits them, as adding the FVOD right to linear channels without extra fees has become possible as a result of negotiations. Jupiter is gradually moving to the big screen as well. The APPLE TV app is the first one completed and the owners of Android smart TV sets can watch Jupiter content on the big screen via the Jupiter TV app from February 2021.

News and sports department The activities of the news and sports department proceed from the goal of public broadcasting, which is to unite the people of Estonia and offer the best, most influential and credible journalistic content in the Estonian language. The news department tested their abilities to the full in 2020 and showed that we were prepared for the unexpected and long-lasting crisis. Since the emergency in March until the end of the year, public broadcasting offered news on all aspects of the coronavirus as well as other affairs in Estonia and the world to the biggest audiences in Estonian, Russian and English on its digital platforms, TV and radio. Irrespective of the increase in the volumes of activities and the pressure, ERR still maintained high journalistic standards. All important news were given the attention they deserved. The news department reorganised its activities from the first moment of the crisis in a manner that guaranteed continuity. The safety measures taken allowed the team to continue with its activities in the manner required for the production of news in real time as well as the specific technical features of radio and television. The sports department, which also reorganised its work, supported the news where necessary. ERR started broadcasting additional daily news shows on ETV and ETV+ immediately after the establishment of the state of emergency. Their ratings were very high, similar to the main news show “Aktuaalne kaamera” that was broadcast at its usual time and attracted 300 thousand viewers at times. The Russian version of “Aktuaalne kaamera” became the most watched Russian-language TV show in Estonia and retained this position at the start of 2021. We also improved the cooperation between Russian-language online and radio news. The English-language portal also took a big step forward in terms of the volume of coverage and viewing figures. The number of unique visitors of the ERR.ee portal per week exceeded a million at peak times. The number of visitors consistently remained between 700 and 800 thousand per week by the end of the year. Operating in a crisis was a valuable experience that polished the work processes of the news department. All of the lessons learned have been implemented in our daily work by now. In 2020, the news department used its nationwide and foreign correspondent network even better than before. We increased our coverage of events in Latvia and Finland. It’s important that viewers, readers and listeners contact ERR not only for extraordinary news, but because of the broader news content. We’re prepared for this and take the quality and selection of the news very seriously. The cooperation in the preparation and planning of TV, radio and online news is still a strength of ERR. Sports. 183 sports events were broadcast live via the TV channels of ERR in 2020. 130 broadcasts were cancelled (or postponed by a year) due to the cancellation of competitions because of the coronavirus. World Championships. The sports department of ERR responded to the pandemic 10 Annual Report 2020 flexibly. Although there was break in the transmission of ETV’s sports news as a separate show in March and April, the department covered sports in the main news show “Aktuaalne kaamera” and the ERR sports portal and radio continued covering sports news. At the peak of the coronavirus crisis in spring, the sports department prepared the new series “Mis tunne on?!”. The show about the javelin world champion Andrus Värnik was declared the best electronic media show in Estonia in 2020. The live broadcast of the Biathlon World Cup race in Pokljuka on 25 January 2020 by the sports department of ERR was declared the best electronic broadcast of the year. The major winter sports projects that deserve attention are the live broadcasts of the Biathlon World Championships in Anterselva and the European Figure Skating Championships from Graz deserve a mention, in addition to the FIS Cross-Country World Cup. The Premium League season of the Estonian Football Championships became longer in relation to the coronavirus, but ETV2 and ETV+ broadcast 37 football matches based on the altered match schedule. The qualification matches of the Estonian football and handball teams played in autumn were also broadcast. The number of live broadcasts/races of the World Rally Championship (WRC) was also reduced by half. The power stages of seven races, as well as special broadcasts from Rally Estonia were brought to the viewers. The live broadcasts of the 9-ball final of the Estonian Pool Championships and the European Road Cycling and Mountain Bike Championships, and the TV show “10 olümpiastarti” also deserve a mention. The calendar year ended once again with broadcasts of the new season of the Biathlon World Cup, which attract more than 100,000 viewers in weekends.

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Audiences Figure 1. Reliability of ERR 2015–2020 Q4

Reliability of ERR 2015–2020 Q4 (%, Estonian residents aged 15+)

90 77 80 69 70 60 53 50 40 30 17 17 17 20 10 0 Trust (total) Don’t trust Trusts Trusts Don’t trust Don’t trust (total) (communication (communication (communication (communication language: language: other) language: language: other) Estonian) Estonian)

2015 2016 2017 2018 2019 2020

Source: Turu-uuringute AS 69 percent of Estonian residents aged 15 and over trusted Estonian Public Broadcasting in Q4 2020. This indicator has increased by 2 percentage points in comparison with the same period in 2019. The share of people who did not trust public broadcasting has decreased by 3 percentage points – 20 percent in 2019, 17 percent in 2020. 77 percent of people who speak Estonian as their main language trusted public broadcasting, which is 2 percentage points more than the year before – 75 percent of people who speak Estonian as their main language aged 15 and over trusted public broadcasting in 2019. The share of people who do not trust public broadcasting in this target group is 17 percent, which is one percentage point less than in 2019. 53 percent of people with other languages of communication trust public broadcasting. This indicator has grown by 2 percentage points. The share of people who don’t trust, i.e. 17 percent, is the lowest in recent years after decreased by 8 percentage points in comparison with the previous year.

Figure 2. Weekly reach of TV channels of public broadcasting, 2015–2020 (Estonian residents aged 4 and over who watched at least 15 minutes of TV per week, thousands)

Weekly reach 2015–2020 (thousands, Estonian residents 4+ watched at least 15 minutes per week in real time) 800 706 2015 700 2016 570 2017 600 2018 500 2019 2020 400 337 300 176 200 100 0 ERR ETV ETV2 ETV+

Source: Kantar Emor, Teleauditooriumi Mõõdikuuring

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706 thousand Estonian residents aged 4 and over watched the TV channels of public broadcasting for at least 15 minutes per week in real time in 2020. The viewing figures of the TV channels of ERR in 2020 exceed the result of the year before by 16 thousand and is higher than the average indicator of the last six years. The average number of people aged 4 and over who watched ETV for at least 15 minutes per week in real time was 570 thousand and the same indicator for ETV2 was 337 thousand. The decrease in the number of the viewers of both channels, but especially ETV2, was the continuing change in favour of catch-up TV in people’s media consumption habits. The number of people who watch ETV and ETV2 on catch-up every week has increased by up to a third per year in the last three years. The average number of people aged 4 and over who watched ETV+ for at least 15 minutes per week in real time was 176 thousand. The weekly reach of ETV+ has increased by a remarkable 28 thousand people in comparison with 2019. When we add the number of people who watch the TV channels of ERR on catch up, via recording services, Time Machine, etc. to the number of real time viewers, the total weekly reach increases by 39 thousand. This means 34 thousand more viewers for ETV, 47 thousand for ETV2 and 19 thousand for ETV+.

Figure 3. Change in proportion of time spent watching TV channels, 2015–2020 (%, Estonian residents aged 4+)

Change in share of ERR and other major TV channels 2015–2020 (%, Estonian residents aged 4+) 20 18 2015 2016 2017 15 2018 10,8 2019 10 2020 7,3 6,5 4 5 2,5 1,4 0 ETV ETV2 ETV+ Kanal 2 TV3 PBK Catch-up

Source: Kantar Emor, Teleauditooriumi Mõõdikuuring In 2020, ETV comprised the biggest share of the time dedicated to watching TV in real time by Estonia residents at least 4 years of age. The average annual share of ETV was 18% (15.7% in 2019). In 2020 the residents of Estonia dedicated 2.5 percent on average (2.7% in the previous year) to watching ETV2 and 1.4 percent (1.1% in the previous year) to watching ETV+.

Figure 4. Number of listeners of radio channels of public broadcasting, 2015–2020 (Estonian residents aged 12-74, thousands)

13 Annual Report 2020

Weekly reach 2015–2020 350 (thousands, Estonian residents aged 12-74) 300 250 249 200 150 Vikerraadio 117 Raadio 4 100 99 Raadio 2 72 50 Klassikaraadio 24 Raadio Tallinn 0 2015 2016 2017 2018* 2019* 2020*

Source: Kantar Emor, 2014–2017, Diary Survey of Radio Audiences, since 2018 Day-After-Recall Survey of Radio Station Ratings The results for 2018–2020 cannot be compared to those of earlier years because of the different methodology. The average weekly reach of Vikerraadio among people aged 12–74 in 2020 was 249 thousand. The weekly reach of Raadio 4 was 99 thousand. Vikerraadio and Raadio 4 are still the Estonian and Russian chat radios with the biggest reach. Also, both of them were the radio stations with the biggest reach in Estonia in terms of people who listened to the radio every day. 117 thousand people aged 12–74 listened per week to Raadio 2. The average reach of Klassikaraadio was 72 thousand and Raadio Tallinn had 24 thousand listeners per week on average.

Figure 5. Shares of listeners of radio channels of public broadcasting in time spent listening to the radio, 2015–2020 (Estonian residents aged 12-74, %)

Change in listening time of ERR radio channels from 2015–2020 (%, Estonian residents aged 12-74)

25,0 2015 2016 2017 20,0 17,3 2018* 2019* 15,0 2020*

10,0 5,6 5,0 2,4 1,0 0,4 0,0 Vikerraadio Raadio 4 Raadio 2 Klassikaraadio Raadio Tallinn

Source: Kantar Emor, Diary Survey of Radio Audiences 2014–2017, since 2018 Day-After-Recall Survey of Radio Station Ratings Listening to Vikerraadio comprised 17.3 of the time spent by Estonian residents aged 12–74 on listening to the radio in 2020, which put the station first in the rankings. Estonian residents spent 5.6 percent of time on average listening to Raadio 4, which is the best result among Russian-language radio stations.

Figure 6. Unique visitors of the public broadcasting portal in thousands, 2012–2020

14 Annual Report 2020

Number of ERR portal visitors per week 2012–2020 800 (thousands) 713 700

600 535 500 445 388 400 324 292 257 258 300 225 200

100

0 2012 2013 2014 2015 2016 2017 2018 2019 2020 Source: Gemius Eesti, gemiusPrism (2018-2020), Kantar Emor (2012-2013, 2015-2017), Google Analytics (2014) The number of visits to the ERR portal and all of its subpages has increased steadily over the years and the number of unique users who visited ERR portals in a week in 2020 was 713 thousand on average. Figure 7. Breakdown of the number of unique visitors to the public broadcasting portal by sub-portals in thousands, 2018-2020

Number of ERR website visitors per week 2018–2020 (thousands) 600 505 500 409 400

300

200

100 76 42 26 24 11 19 6 5 1,5 0

2018 2019 2020

Source: Gemius Eesti. gemiusPrism

15 Annual Report 2020

Archives

Heliarhiiv/muusikaAudio archive/music The digitisation and restoration of analogue materials in the (kokku(11,450 11450hours tundi)in total) archives continued. digiteerituddigitised shincluding 2020 digiteerimatanot digitised 2020 The following figures give an overview of the total volume of the archives of ERR, the part that has already been digitised and the additional volume digitised in 2020.

AudioHeliarhiiv/sõna archive/spoken PhotoFotoarhiiv archive (30,9605 FilmiarhiivFilm archive 35mm 35 mm (kokku(17,718 hours 17718 in tundi) total) (kokkuphotos/negatives/slides 309605 fotot/negatiivi/slaidi) in total) (kokku(998 hours 998 tundi) in total) including digiteerituddigitised sh 2020 digiteerimatanot digitised including 2020 digiteerituddigitised sh 2020 digiteerimatanot digitised 2020

digiteerituddigitised includingsh 2020 digiteerimatanot digitised 2020

FilmiarhiivFilm archive 16mm 16 mm VideoVideoarhiiv archive (21,930 SportsSpordiarhiiv archive (11,018 (kokku(26,512 hours 26512 in pala) total) (kokkuhours 21930 in total) tundi) (kokkuhours 11018 in total) tundi) digiteerituddigitised includingsh 2020 digiteerimatanot digitised 2020

digiteerituddigitised includingsh 2020 digiteerimatanot digitised digiteerituddigitised includingsh 2020 digiteerimatanot digitised 2020 2020 Technical development and investments This year was very successful in terms of new projects in the development of television, radio and public online services. The area of television technology progressed significantly with the replacement of depreciated and outdated (up to 40-year-old) technical solutions. A local cloud solution for the production of sound for television studios was established. The procurement for a new broadcasting station was carried out (the station will be ready by summer 2021). Cameras were replaced and video and communications chains were renovated in Studio 4, and the workplaces of engineers and lighting technicians were rebuilt. Lighting supply switchboards as well as the power and control cables

16 Annual Report 2020 were fully renovated in Studio 1, the soviet spotlights with high energy consumption that had served the studio for nearly 40 years were replaced with modern economical LED lighting fixtures. The ventilation and cooling systems of the equipment rooms of Studios 1, 2 and 4 were repaired. The Transmission Department and technical centres in radio and TV focused on projects offering more continuity and a big step forward was taken in IP-based TV production. An IP router of television transmission was implemented and use of the old Sirius ended. The TV transmission automatics were integrated with the IP router – MoWo. The IP media network and VSM of ERR were expanded. The ETV+ sound robot for the visually impaired (the robot that reads the Estonian subtitles of the shows of ETV+) was launched. The Vikerraadio reserve on floor 6 of the Radio House was created. The biggest project of the Development Department was the creation of the Jupiter environment, which was made accessible to the public in spring. The critical production planning and media management services were also updated. Apps were upgraded – Apple TV and AndroidTV apps for Jupiter and the News app. The functionality required by the visually impaired was built for the ERR portals – err.ee is the only news portal in Estonia that makes it possible to consume news and media content in the manner required by the visually impaired. We prepared and implemented the ISKE (v8) information security standard in the area of IT and information security. We also successfully passed the audit of the implementation of the standard. We procured and implemented a production information system in the TV building. We duplicated the server solution of web portals to another location. We upgraded the catch up data depository and its servers in order to cope with the increased in volume related to Jupiter. Department of Property and Transport Property The function of ERR property management is to maintain and renovate the registered immovables, buildings and equipment (lifts, ventilation, heating and cooling equipment) of ERR as well as guaranteeing the daily maintenance and security of buildings. The biggest reconstruction works in 2020 were: replacement of the main sewerage pipeline between the radio building and news building with a D160 line, major repairs of the studio lifting equipment on the ceiling of Studio 2 of the TV building, replacement of the ATS centres of the TV building and the installation of fire in the TV building. The total cost of the work was 203,616 euros, and the money was received from the renovation budget of the Ministry of Culture. The biggest and most complicated tasks in 2020 were the design of the new TV compound and the smooth processing of the detailed plan in the Tallinn City Planning Department. Transport As at the end of 2020, Estonian Public Broadcasting owned 35 registered vehicles from transmission buses to the cards of correspondents. The vehicle fleet was not upgraded in 2020. Structure and staff The general principles of the management structure of ERR are set out in the Estonian Public Broadcasting Act. No significant changes were made to the organisational structure in 2020, but the annual average number of employees decreased by 12.9 (2.1%) as a result of the optimisation of work processes. The average annual number of employees of Estonian Public Broadcasting, excluding members of the management board, was 608.1 (621.0 in 2019), including managers 28.6 (28.4), top specialists 201.2 (209.9), specialists 323.5 (319.9), junior specialists and assistants 13.7 (20.3), and unskilled workers 41.1 (42.5). The number of employees was 300.7 (301.8) in programmes and other creative units, 237.0 (247.5) in technical and support units, 49.7 (51.2) in units related to property and its management, and 20.7 (20.5) in administrative units (in full-time equivalents). The annual gross remuneration calculated for permanent staff (including benefits and additional remuneration) amounted to 12.860 million euros (12.774 million in 2019) and holiday pay amounted to 1.347 million euros (1.250). The remuneration of the management board and supervisory board with holiday pay and benefits amounted to 421.1 thousand euros (416.9). 17 Annual Report 2020

Operating income totalled 1.426 million euros (1.410). The amount of employer’s tax expenses calculated on salaries and wages during the year was 5.345 million euros (5.330). Internal control and risk management The control environment of ERR is defined in legislation and by internal procedures and guidelines. Organisational culture, values and good practices are also parts of the control environment. In addition to the management structure that proceeds from the management board, two officials appointed by law – the ethics adviser and internal auditor, who report the results of their activities to the supervisory board, must ensure the compliance of the activities of ERR with requirements and best practices. An audit committee has been established by the supervisory board pursuant to the requirements of the Auditors Activities Act, whose main function is to coordinate audit activities in ERR, including to direct the work of an internal and external auditor. Document circulation in ERR is electronic, paper documents are used upon entry into contracts with partners abroad and to a small extent with other persons, who do not use digital signatures. A document management system is used in the organisation’s administration and the confirmations issued through this system have been made equal to signing with an order of the management board. Risks in ERR are assessed within the framework of the risk register. The objective is to notice, assess and monitor and, if necessary, reduce the risks that may have a significant impact on the outcome of the activities of ERR. The risk register is updated every year. The possibility and impact of the COVID-19 pandemic that spread around the world in 2020 or other similar events had not been assessed in the risk register of ERR before, but the risks arising therefrom were described and their impact was assessed when the register was updated. As for foreign currencies, ERR performs regular settlements in Swiss francs, British pounds, US dollars and Russian roubles, sometimes also in Scandinavian currencies. However, the volume of foreign currency transactions is very small compared to the budget volumes of ERR and changes in exchange rates have no significant impact on its activities. Loan interest is tied to 6 months Euribor and any changes in this will not have any impact on interest payments for as long as it remains negative. As the total volume of loans payable is less than 15% of the annual budget volume, even a rapid rise in interest rates would not have a significant impact on the activities of ERR.

18 Annual Report 2020

Budget and its implementation REVENUE Budget for 12 Actual for 12 months months difference Support from state budget for operating expenses 34,731,498 34,707,518 -23,980 State budget allocations for development activities 2,277,062 2,509,944 232,883 Funds for guaranteeing cybersecurity payables 1,711,170 1,867,849 156,679 Support from structural funds 965,343 903,397 -61,946 Allocations intended for specific purposes and donations 1,406,277 1,360,710 -45,567 Goods and services purchased 1,522,949 1,684,425 161,475 Other operating income and profits 10,680 25,377 14,697 Financial income 0 20,863 20,863

TOTAL REVENUE 42,624,979 43,080,083 455,104

including on including on under/overspending Budget for 12 Actual for 12 EXPENDITURE account of own account of own of budgetary months months revenue revenue resources Programmes, departments and archive General expenses & reserve of programme 1,926,205 196,800 1,342,912 329,222 715,716 ETV and shows 6,418,511 1,008,346 6,216,638 939,250 132,777 ETV2 and shows 903,456 60,423 852,952 59,718 49,799 ETV+ and shows 2,164,428 278,355 2,164,968 279,152 258 Department of current affairs shows 89,807 0 85,688 0 4,119 Department of experience shows 188,718 0 183,285 3,944 9,377 Programme Service 709,796 0 635,445 285 74,636 Vikerraadio 1,057,180 61,946 1,051,080 67,614 11,768 Raadio 2 512,015 9,446 511,490 10,808 1,887 Klassikaraadio 470,075 3,000 459,634 0 7,441 Raadio 4 904,253 29,000 886,709 34,761 23,304 Raadio Tallinn 29,951 0 29,897 0 54 News and sports department 6,186,876 281,762 6,026,315 281,551 160,351 including sports 1,534,286 278,950 1,367,588 275,673 163,421 Jupiter 100,853 0 105,460 0 -4,607 Procured programme 2,047,154 6,000 2,066,327 42,564 17,391 err.ee thematic portals 416,670 52,700 384,679 32,195 11,486 Archives 667,078 9,000 667,710 10,575 943 Total direct expenses of programme production 24,793,027 1,996,779 23,671,189 2,091,642 1,216,701 Production, equipment and buildings Production Service 727,445 175,000 853,879 138,512 -162,921 Transmission Department 817,969 29,210 774,168 38,580 53,171 IT Department 548,555 0 472,853 2,619 78,322 Development Department 311,663 0 285,961 0 25,701 Transmission costs 2,727,629 11,000 2,696,598 0 20,031 Technical overhead costs & development projects 5,396,054 150,000 4,523,508 171,402 893,949 Department of Property and Transport 2,563,452 441,446 2,437,545 408,740 93,201 Property development 403,616 0 135,388 0 268,228 Total production, equipment and building expenses 13,496,384 806,656 12,179,900 759,854 1,269,682 General departments Marketing and Sales Department 974,208 125,792 939,707 133,826 42,535 Legal and Information Management Department 314,697 0 299,744 0 14,953 Financial Service 297,778 0 304,730 0 -6,952 Training and occupational health expenses 178,977 0 187,914 91,210 82,273 Cooperation with EBU 261,380 0 235,817 949 26,512 Overhead costs & reserve 1,126,176 10,680 310,628 13,894 818,762 Total general departments 3,153,215 136,472 2,278,540 239,879 978,082 Management and control Supervisory board 189,121 0 181,937 0 7,184 Management board 414,578 0 413,765 0 813 Internal Auditor, advisers and advisory committee 146,304 0 139,682 0 6,622 Total management and control functions 750,003 0 735,384 0 14,619 TOTAL EXPENDITURE 42,192,630 2,939,907 38,865,014 3,091,374 3,479,084 PROFIT/LOSS 432,350 4,215,069

19 Annual Report 2020

The costs of 2020 were largely influenced by the COVID-19 pandemic, the effects of which could not be foreseen when the budget was prepared. On the one hand, many sports events were cancelled and the funds planned for broadcasting them were not used. On the other hand, the volume of news and expenses of the news department increased. Some major sports events were postponed by a year, so the resources planned for them will be needed in 2021 (this balance is recognised in the budget line of overheads and reserves). Many local broadcasts (e.g. the Victory Day parade) were also cancelled, which allowed the departments to save money in their budgets. However, for the Production Service it meant no cover for salaries and wages, which was expressed in budgetary over-spending by the end of the year. Many investments made with the support of the EU Structural Funds contributed to the increase in the budget result of technical overhead costs and development projects. All in all, the budgetary outcome was positive. As the number of people living in Estonia as at 1 January 2021 was 1,329,460 (source: Statistics Estonia), the operating expenses of ERR financed by the tax payer per resident amounted to 26.91 euros per year, i.e. 2.24 euros per month or 7.4 cents per day. This amount divides by the most important fields of activity as follows: euros per resident per year per month per day content of programmes 16.23 1.35 0.044 including ETV 3.97 0.33 0.011 ETV2 0.60 0.05 0.002 ETV+ 1.42 0.12 0.004 Vikerraadio 0.74 0.06 0.002 Raadio 2 0.38 0.03 0.001 Klassikaraadio 0.35 0.03 0.001 Raadio 4 0.64 0.05 0.002 Jupiter 0.08 0.01 0.000 News 3.50 0.29 0.010 Sports 0.82 0.07 0.002 transmission of programmes 2.03 0.17 0.006 technical and support services 8.10 0.67 0.022 management expenses 0.55 0.05 0.002

20 Annual Report 2020

FINANCIAL STATEMENTS

Balance sheet (thousand euros) 31.12.2020 31.12.2019 Note ASSETS Current assets Cash and bank 7,560 6,848 2 Trade receivables 420 537 3 Prepaid expenses and other short-term 1,999 833 5 receivables Invent 832 600 6 ories Total current assets 10,811 8,818

Non- current assets Long-term prepayments 138 1,239 7 Investment properties 614 633 8 Property, plant and equipment 25,988 25,746 9 Intangible assets 989 886 10 Total fixed assets 27,728 28,504

TOTAL ASSETS 38,539 37,322

LIABILITIES AND NET ASSETS Current liabilities Debt obligations 1,620 841 11 Receivables and prepayments 4,400 4,720 13 Other accrued income 1,221 549 14 Short-term provisions 50 48 15 Total current liabilities 7,291 6,158

Long-term liabilities Long-term debt 1 3,446 11 Long-term provisions and other liabilities 242 928 15 Total long-term liabilities 243 4,374

TOTAL LIABILITIES 7,534 10,532

Net assets Capital 4,062 4,062 Retained earnings 22,728 16,701 Profit/loss for financial year 4,215 6,027 TOTAL NET ASSETS 31,005 26,790

TOTAL LIABILITIES AND NET ASSETS 38,539 37,322 21 Annual Report 2020

Statement of financial performance (thousand euros)

2020 2019 Note Income Income from state budget 39,030 37,760 16 Income from sales of goods and services 1,685 2,041 17 Other income 2,344 7,232 17 Total income 43,059 47,033

Expenses Programme production, transmission and 34,058 36,449 18 archiving costs Management and administrative expenses 4,276 4,512 19 Other costs 504 16 20 Total expenses 38,838 40,977

Operating profit/loss 4,221 6,056

Financial income 21 0 Financial expenses 27 29 Profit/loss for financial year 4,215 6,027

Statement of changes in net assets (thousand euros)

Capital Retained Total earnings Balance on 31.12.2018 4,062 16,701 20,763 Profit/loss for financial 0 6,027 6,027 year Balance on 31.12.2019 4,062 22,728 26,790 Profit/loss for financial 0 4,215 4,215 year Balance on 31.12.2020 4,062 26,943 31,005

22 Annual Report 2020

Cash flow statement (thousand euros) 2020 2019 Note Cash flow from economic activities Operating profit/loss 4,221 6,056 Adjustments: Depreciation and impairment of non- 2,836 2,619 8,9,10,18,19 current assets Non-monetary targeted financing of -1,229 -2,370 20 fixed assets Loss on sales and write-offs of fixed 491 -3,204 20 assets Change in receivables and prepayments 53 -478 related to operating activities Change in inventories -232 931 Change in payables and prepayments related 9 683 to operating activities Interest received 21 0 Total cash flow from economic activities 6,170 4,237

Cash flow from investing activities Purchase of property, plant and equipment -2,768 -1,739 9,10,13 and intangible assets Sales of property, plant and equipment and 4 4,547 9 intangible assets Total cash flow from investing activities -2,764 2,808

Cash flow from financing activities Loan repayments -2647 -1,121 11 Finance lease principal repayments -20 -19 11 Interest paid -27 -28 Total cash flow from financing activities -2,694 -1,168

Total cash flow 712 5,877

Cash and cash equivalents at beginning of period 6,848 971 Change in cash and cash equivalents 712 5,877

Cash and cash equivalents at end of period 7,560 6,848

23 Annual Report 2020

NOTES TO FINANCIAL STATEMENTS

Note 1 Accounting methods and measurement bases used in the preparation of the financial statements The financial statements of Estonian Public Broadcasting (ERR) for 2020 have been prepared in accordance with the Estonian Financial Reporting Standard and using the acquisition cost principle, except in the cases described in accounting policies and procedures below. The main requirements of the financial reporting standards have been established in the Accounting Act of the Republic of Estonia and are supplemented by the guidelines for financial accounting and reporting of the public sector. The guidelines for financial accounting and reporting of the public sector proceed from the Estonian Financial Reporting Standard. Due to the principal activities of Estonian Public Broadcasting, the income statement layouts meant for production and business enterprises set out in the annexes to the Accounting Act of the Republic of Estonia are not suitable for the appropriate and true presentation of the economic activities of Estonian Public Broadcasting. This is why the management, relying on subsection 18 (4) of the Accounting Act, has prepared an income statement layout that is suitable for the activities of the organisation. The financial statements are presented in thousands of euros. Cash and cash equivalents Cash at bank and in hand are recognised as cash and cash equivalents in the cash flow statement. Trade receivables Short-term receivables incurred by the company in the course of its ordinary economic activities are recognised as trade receivables. Trade receivables are recognised at the adjusted acquisition cost (i.e. nominal value less repayments and any necessary write-downs). Trade receivables are evaluated in the balance sheet based on the probability of their receipt. The accounts receivable from each specific customer are thereby evaluated separately, taking into account the information known about the solvency of the customer. Doubtful accounts are written down on the balance sheet to the amount that is likely to be received. The collection of doubtful receivables that have previously been written down is recognised as a decrease in the expenses of doubtful receivables. Other receivables All other receivables (accrued income and other short-term and long-term receivables) are recognised at adjusted acquisition cost. The adjusted acquisition cost of short-term receivables is generally equal to their nominal value (less any possible write-downs), and therefore short-term receivables are recognised on the balance sheet in the amounts that are likely to be collected. Inventories Inventories are registered at their acquisition cost, which consists of the direct and indirect expenses related to the acquisition or production of the inventories without which the inventories would not be in their current state or quantity, including direct transport expenses, non- refundable taxes and production outlay. Finished goods The audio-visual products made for sale (DVDs, CDs) are recognised in the balance sheet at cost price under finished goods in the balance sheet. Stock of licences of procured films The procured programme purchased by the organisation is written off after its premiere during the term set forth in the licence. Procured programme that has exceeded the term of the licence agreement and has not been broadcast is written off. Inventories are recognised in the balance sheet at the lower end of their acquisition cost or net realisable value.

24 Annual Report 2020

Net realisable value is found by subtracting the estimated costs required to prepare the product for sales and to complete the sales from the estimated selling price used in ordinary economic activities. The weighted average method has been used to write off inventories in the balance sheet, excluding the stock of licences of procured films (see the principle above). Short-term and long-term prepayments for broadcasting rights Prepayments for the broadcasting rights of future periods are generally recognised as short-term and long-term prepayments. Prepayments for broadcasting rights will be written off in the period when the broadcast is made. Investment properties Investment properties are items of property (land and buildings) that ERR holds for the purpose of earning rental income or with a view to an increase in value and that are not used in the organisation’s economic activities. Investment properties are initially registered in the balance sheet at their acquisition cost (according to the guidelines for financial accounting and reporting of the public sector), which also includes transaction fees directly attributable to acquisition. Thereafter investment properties are recognised at their acquisition cost less accumulated depreciation and possible write-downs resulting from impairment. In the case of buildings used for economic activities as well as rental purposes, a share of the acquisition cost and accumulated depreciation of the building proportional to the premises given on rent is reclassified as an investment property on each reporting date. Depreciation is calculated using the straight-line method. Depreciation rates are established separately for each item of investment property, depending on its useful life. If an item of investment property consists of separable components with different useful lives, such components are registered in the accounting as separate asset items and are depreciated at different depreciation rates depending on their useful lives. The interval of depreciation rates applied to investment properties of ERR is 2-10% per year, land is not depreciated. Any expenses incurred later are added to the acquisition cost of an investment property if it is probable that ERR will earn economic gains as a result of the expenses in the future and the acquisition cost of these expenses can be reliably measured. Other expenses incurred later (such as repairs, maintenance) are recognised under expenses for the financial year. If a component of an investment property is replaced, the acquisition cost of the new component is added to the acquisition cost of the item and the residual value of the component to be replaced is written off the balance sheet. Property, plant and equipment Pursuant to the guidelines for financial accounting and reporting of the public sector, fixed assets are assets whose useful lives are longer than a year and that cost at least 5,000 euros. Assets whose useful lives exceed one year, but whose acquisition cost is less than 5,000 euros, are written off to the extent of 100% at the moment of acquisition. Account of low value inventory (acquisition cost 1,000–4,999.99 euros) that has been written off is kept off the balance sheet. An item of property, plant and equipment is initially recognised at cost, which comprises its purchase price and any costs directly attributable to acquisition, which are necessary for bringing the assets to their operating condition and location. Fixed assets are recognised at their acquisition cost less accumulated depreciation and any possible write-downs resulting from impairment, except for land and buildings, which are recognised at restated value less accumulated depreciation. Pursuant to the guidelines for financial accounting and reporting of the public sector, non-refundable value added tax is not capitalised into the acquisition cost of property, plant and equipment, but recognised in the costs of the reporting period. If the recoverable amount of fixed assets (i.e. the higher of the following two indicators: the fair value of the assets (less expenses on sale) or the value in use of the assets) is less than its carrying amount, the items of property, plant and equipment are written down to their recoverable amount (see also the accounting policy “Impairment of assets”).

25 Annual Report 2020

Any later expenses incurred in relation to property, plant and equipment, which comply with the criteria set for fixed assets, are capitalised as fixed assets in the balance sheet. The costs of day-to- day servicing and repair of an item of property, plant and equipment are recognised as an expense as incurred. If an item of property, plant and equipment consists of distinguishable components with different useful lives, such components are recognised in accounting as separate items of assets and different depreciation rates are assigned to them according to their useful lives. Depreciation is calculated using the straight-line method. Depreciation rates are established separately for each object of fixed assets on the basis of their useful lives. The calculation of depreciation starts from the month the fixed assets are registered. Annual depreciation rates for groups of fixed assets are as follows: Buildings 2–12.5% Machinery and equipment 10–40% Other fittings, fixtures and equipment 6.5–20% Land is not depreciated. Intangible assets Purchased computer software that is not an inseparable part of the associated hardware is recognised as intangible assets. Computer software development expenses are recognised as intangible assets if they are directly associated with the development of software items used for longer than a year. The costs associated with current maintenance of computer software are recognised as expenses in the income statement. The costs of other intangible assets (trademarks, licences) are capitalised if the income earned from these costs in the future can be estimated. Intangible fixed assets are initially recognised at their acquisition cost, which consists of the purchase price and the expenses directly attributable to acquisition. Intangible fixed assets are recognised in the balance sheet at their acquisition cost less accumulated depreciation and possible write-downs resulting from impairment. Pursuant to the guidelines for financial accounting and reporting of the public sector, non-refundable value added tax is not capitalised into the acquisition cost of property, plant and equipment, but recognised in the costs of the period. Intangible assets are depreciated using the straight-line method. The annual depreciation rates of tangible assets are as follows: Software 25–30% Licences, trademarks, etc., purchased 10–20% Foundation and research expenses are not capitalised. The impairment of assets with a fixed-term useful life is evaluated if certain circumstances imply that impairment may have taken place (see also the accounting principle of impairment of assets). Impairment of assets The existence of any circumstances that suggest possible impairment is assessed on each reporting date in the case of property, plant and equipment, intangible assets and investment properties. If such circumstances exist, the recoverable amount of the assets is measured and it is compared with the carrying amount. The loss caused by impairment is recognised in the amount by which the carrying amount of the asset exceeds its recoverable amount. The recoverable amount of an asset is the fair value of the asset from which the cost of sales or the asset’s value in use, whichever is higher, has been deducted. The recoverable amount is assessed either for a single asset or the smallest possible cash generating unit in order to assess the impairment of an asset. Write-downs of assets are recognised as expenses for the financial year. In the event of assets written down once, it is assessed each following reporting date whether it could be likely that the recoverable amount of the assets has meanwhile increased. Any previous write-downs are cancelled if the impairment test shows that the recoverable amount of an asset item or a group of assets (cash generating unit) has increased to over the carrying amount and 26 Annual Report 2020 the carrying amount of the asset item is increased to the amount that would have emerged considering normal depreciation during the years in-between. Cancellations of write-downs are recognised in the income statement of the annual period as a reduction of the cost of write- downs of fixed assets. Impairment of assets in the case of fixed assets required for the provision of public services Pursuant to the guidelines for financial accounting and reporting of the public sector, no asset value tests are prepared and the impairment of assets for recoverable value is not recognised in the case of fixed assets required for the provision of public services if impairment has not occurred due to its spoilage or removal from use in part or in full for any other reason. Financial liabilities All financial liabilities (trade creditors, loans, accrued expenses and other short-term and long- term debt) are registered at their acquisition cost, which includes all the expenses directly associated with the acquisition. A financial liability is classified as short-term if it’s due to be settled within 12 months of the reporting date or ERR does not have the unconditional right to defer settlement for more than 12 months after the reporting date. Loans payable that are due within 12 months as of the reporting date, but which are refinanced as long-term loans after the reporting date, but before the approval of the financial statements, are recognised as short-term liabilities. Loans payable that the lender had the right to recall on the reporting date due to a violation of the terms and conditions provided in the loan agreement are also recognised as current liabilities. Lease accounting Lease transactions where all significant risks and rewards of ownership of the assets transfer to the lessee are recognised as financial lease. Any other lease transactions are recognised as operating lease. Capital leases are indicated on the balance sheet under assets and liabilities in the amount of the fair value of the leased assets or at the present value of the minimum amount of lease payments, if the latter is lower. Lease payments are divided into financial expenses (interest expenses) and the reduction of the carrying amount of the liability. Financial expenses are allocated to each lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability. Assets leased under capital leases are depreciated the same way as acquired fixed assets and the depreciation periods thereof are equal to the expected useful lives of the assets. In the case of operating lease, the leased assets are recognised in the lessor’s balance sheet. The lessor recognises operating lease payments as income and the lessee recognises them as expenses over the lease period using the straight-line method. Targeted financing Targeted financing is recognised as revenue over the periods when the expenses are incurred, for the compensation of which the targeted financing is intended. Targeted financing which is received for accrued expenses or which is not accompanied by additional criteria aimed at the future are recognised as revenue in the period during which the targeted financing was received. Targeted financing is not recognised as revenue until there is adequate certainty that ERR meets the criteria for the targeted financing and the financing takes place. If targeted financing has been received, but the essential terms and conditions related to its use have not yet been met, the funds received will be recognised as liabilities. Targeted financing will be recognised as revenue and receivable if the expenses have been incurred and a payment application for targeted financing has been accepted, but has not been received yet. Any possible liabilities associated with targeted financing are recognised in the report as provisions or potential liabilities. Targeted financing of operating expenses received in advance is recognised as prepaid expenses under targeted financial of operating expenses received in advance. Targeted financing for acquisition of fixed assets is recognised by the public sector units whose main objective is not to earn profit for the owner as income at the accrual based moment of receive pursuant to the guidelines for financial accounting and reporting of the public sector. 27 Annual Report 2020

The accrual-based date when targeted financing for the acquisition of fixed assets is received is the date of acquisition of the fixed assets. In the case of targeted financing of fixed assets, the assets acquired by means of targeted financing are registered in the balance sheet at their acquisition cost. The acquired fixed assets are depreciated, similarly to other fixed assets, during their useful lives. Foreign currency transactions Foreign currencies include all other currencies besides the functional currency, the euro. Foreign currency transactions are recognised using the official exchange rates quoted by the European Central Bank on the transaction date. Monetary assets and liabilities denominated in foreign currencies (receivables and loans payable in cash) are revalued in the functional currency on the reporting date on the basis of the exchange rates quoted by the European Central Bank on the reporting date. Gains and losses arising from revaluation are recognised in the statement of financial performance of the reporting period. Revenue accounting Operating grants Grants received, which are given to ERR on the basis of its operating functions and the goals determined in development documents, are recognised as operating grants. Operating grants are recognised as income when the money is received. Sale of goods and services Revenue from the sales of goods is recognised when all significant risks related to ownership have transferred to the buyer and the sales revenue and transaction-related expenses can be reliably measured. Revenue from sales of services is recognised upon provision of the service. Interest income is recognised when the receipt of the income is likely and the amount of the income can be reliably measured. Provisions and contingent liabilities The liabilities of ERR incurred during the accounting period or in previous periods, which have a legal or contractual basis and require relinquishment of assets and the cost of which can be determined in a reliable manner, but the final cost or payment deadline of which has not been fixed, have been recorded under provisions in the balance sheet. Provisions are assessed on the basis of the management board’s assessments and experience and, if necessary, assessments of independent experts as well. Detailed information is disclosed in Note 15. Promises, guarantees and other liabilities that may turn to liabilities under certain conditions in the future, but the likelihood of whose realisation is less than 50%, have been disclosed as contingent liabilities in the notes to the financial statements. Cash flow statement Cash flow from operating activities is prepared by the indirect method whereby the operating profit/loss has been adjusted to determine the cash flow from economic activities by eliminating the effect of non-monetary transactions, investing and financing transactions and changes in the balances of the current assets and short-term liabilities related to economic activities. Transaction with related parties Parties are deemed related if one party has control or significant influence over the other party. All organisations controlled by the state or in which the state has dominant influence, for which related transactions have not been disclosed in Note 23 are also related parties. Members of the supervisory board and management board of ERR, the close family members of the persons related to them as well as the company under their control or their significant influence are also deemed related parties when the financial statements are prepared.

Note 2 Cash and bank ...

28 Annual Report 2020

Note 3 Trade receivables 31.12.2020 31.12.2019 Amounts receivable 423 538 Doubtful accounts -3 -1 Total trade receivables 420 537

Note 4 Taxes Tax 31.12.2020 31.12.2019 Prepayment Tax arrears Prepayment Tax arrears and right of and right of recourse recourse

Prepaid and deferred 46 0 59 0 taxes (Note 5) Social tax 0 915 0 902 Income tax withheld 0 506 0 492 Value added tax 0 184 0 267 Unemployment 0 60 0 59 insurance premium Funded pension 0 45 0 43 contribution Income tax of licence 0 5 0 8 fees Income tax in special 0 4 0 8 cases Total 46 1,719 59 1,779 Taxes payable (Note 13) include declared and non-declared taxes.

Note 5 Prepaid expenses and other short-term receivables 31.12.2020 31.12.2019 Prepaid expenses 1,873 599 Other short-term receivables 79 168 Prepaid and deferred taxes (Note 4) 46 59 Accrued income 1 7 Total prepaid expenses and other short-term 1,999 833 receivables

29 Annual Report 2020

Prepaid expenses 31.12.2020 31.12.2019 European Football Championship 1,020 0 Other prepayments 297 385 Production of shows 386 106 UEFA Nations League and other football 102 96 Athletics 64 7 Biathlon 4 0 Ice hockey 0 5 Total prepaid expenses 1,873 599

Note 6 Inventories 31.12.2020 31.12.2019 Stock of licences of procured films 376 316 Prepayment to suppliers 413 198 Finished goods 38 82 Raw materials 5 4 Total inventories 832 600 The stock of finished goods was written down in the amount of 40 thousand euros in the reporting year (inventories were not written down in 2019).

Note 7 Long-term prepayments 31.12.2020 31.12.2019 Football World Cup 2022 130 65 Other service 8 8 European Football Championship 0 1,020 UEFA Nations League 0 96 IT maintenance prepayment 0 50 Total 138 1,239 The binding long-term liabilities of the TV rights of sports broadcasts have been set out in Note 22.

30 Annual Report 2020

Note 8 Investment properties 31.12.2020 31.12.2019 Acquisition cost 872 887 including building 563 569 land 309 318

2020 2019 Sale of land at Tuisu 21/Tervise 4 at acquisition cost 0 -1,314 Reclassification at acquisition cost -6 43 Reclassification at acquisition cost, land -9 25 Depreciation expenses -4 -37

31.12.2020 31.12.2019 Accumulated depreciation -258 -254

Residual value 614 633 including building 305 315 land 309 318

2020 2019 Income from rent earned on investment 152 194 properties Administration costs of investment properties 178 205 Net income from investment properties given -26 -11 on lease The part of registered immovables belonging to ERR that ERR does not use for its operating activities, but for earning income from rental, or that it keeps for the purpose of increasing its value, have been reclassified as investment properties. An investment property includes a proportional share of land, which is not depreciated.

Sold property at selling price

31 Annual Report 2020

2020 2019 Land 0 4,500

Note 9 Property, plant and equipment Land Buildings Machinery Other Assets under Total and fittings, construction equipment fixtures and and equipment prepayments Balance on 31.12.2019 Acquisition cost 6,000 15,013 21,220 1,256 495 43,984 Accumulated depreciation 0 -3,557 -14,027 -654 0 -18,238 Residual value 6,000 11,456 7,193 602 495 25,746

Changes in 2020 Purchases and improvements 0 0 1,974 27 1,292 3,203 Reclassification 0 0 943 26 -969 0 Reclassification of investment 9 6 0 0 0 15 property as property, plant and equipment at acquisition cost Sale and write-off at acquisition 0 0 -1,553 0 0 -1,553 cost Depreciation expenses 0 -523 -1,795 -164 0 -2,482 Depreciation of fixed assets written 0 0 1,059 0 0 1,059 off

Balance on 31.12.2020 Acquisition cost 6,009 15,019 22,584 1,309 728 45,649 Accumulated depreciation 0 -4,080 -14,763 -818 0 -19,661 Residual value 6,009 10,939 7,821 491 728 25,988

The information on assets pledged as collateral to loans is given in Note 11.

Tangible fixed assets sold at sale price 2020 2019 Building 0 42 Equipment 4 5

32 Annual Report 2020

Note 10 Intangible assets Software Balance on 31.12.2019 Acquisition cost 2,804 Accumulated depreciation -1,918 Residual value 886

Changes in 2020 Purchases and improvements 453 Write-offs at acquisition cost -13 Depreciation expenses -350 Accumulated depreciation of write-off 13

Balance on 31.12.2020 Acquisition cost 3,244 Accumulated depreciation -2,255 Residual value 989

Note 11 Long-term debt and pledged assets Loan including including Due Interest rate balance long-term short-term date portion portion 31.12.2020 Lease liabilities 21 1 20 2022 0% Long-term loans * 1,600 0 1,600 2021 0.57% TOTAL 1,621 1 1,620

31.12.2019 Lease liabilities 41 21 20 2021 0% Long-term loans * 4,246 3,425 821 2024 0.55% - 0.56% TOTAL 4,287 3,446 841

The underlying currency of long-term liabilities is the euro. A loan agreement for the amount of 5,200 thousand euros was entered into with AS SEB Pank in 2020 for the acquisition of the broadcasting station and refinancing of existing loans. The credit limit was not used in the reporting year. * The loan from Danske Bank was transferred to AS LHV Pank in 2020. The loan from LHV Pank in the amount of 1,600 thousand euros (1,900 thousand euros in 2019) is secured with a mortgage on the registered immovable at Gonsiori 21, its book value as at 31 December 2020 is 5,941 thousand euros and its purpose is to co-finance the reconstruction of Gonsiori 21. * The loan from Luminor Bank AS, which was taken for the acquisition of equipment for the news building and secured with mortgages on the registered immovables at Kreutzwaldi 14 and Gonsiori 21, was repaid in the reporting year (2,346 thousand euros in 2019).

33 Annual Report 2020

Note 12 Operating lease ERR has taken vehicles, equipment and premises on operating lease. 31.12.2020 31.12.2019 Total lease payables for equipment 506 868 including up to 1 year 276 362 >1>2 years 230 506 The equipment lease expenses in 2020 totalled 229 thousand euros (319 thousand euros in 2019). The property will be returned after the expiry of the lease.

31.12.2020 31.12.2019 Total lease payables for premises 494 542 including up to 1 year 60 59 >1>5 years 197 197 over 5 years 237 286 The lease expenses of premises in 2020 totalled 130 thousand euros (124 thousand euros in 2019). The lease of premises can be terminated by giving notice thereof up to two months in advance, excluding one lease, which will end upon the expiry of the lease period in 2030.

31.12.2020 31.12.2019 Total operating lease payables for vehicles 146 211 including up to 1 year 62 65 >1>4 years 84 146 The lease expenses of vehicles in 2020 totalled 53 thousand euros (54 thousand euros in 2019). There is no obligation to buy out the vehicle after the expiry of the lease period.

Note 13 Payables and prepayments 31.12.2020 31.12.2019 Note Trade payables 1,403 1,687 including payable for fixed assets 0 341 Taxes payable 1,719 1,779 4 Employee-related liabilities 1,263 1,233 Other payables 15 21 Total payables and prepayments 4,400 4,720

Note 14 Deferred income 31.12.2020 31.12.2019 Targeted financing of operating expenses 1,215 542 received in advance Other income received in advance 6 7 Total deferred income 1,221 549

34 Annual Report 2020

Note 15 Provisions The provision for the severance payments of retirees in the amount of 229 thousand euros (221 thousand euros in 2019) has been recognised in 2020, of which the short-term portion is 50 thousand (48 thousand in 2019) and long-term portion is 180 thousand (173 thousand in 2019) euros. The severance payment made to retirees from the provision in the reporting year was 23 thousand euros. As at 31 December 2020, the reserve was increased by 32 thousand euros, of which the short-term portion is 25 thousand and the long-term portion is 7 thousand euros. ERR and the three trade unions operating in the organisation have agreed that retiring employees whose length of service exceeds 20 years will receive a severance payment, the amount of which equals one and a half times the average monthly remuneration and three times the average monthly remuneration if the employee’s length of service exceeds 25 years (over 30 years until the end of 2020) and they are under 70 years of age when they retire. The provision for severance payments has been calculated accordingly. The provision for severance payment to retirees is recognised during the three years preceding the emergence of the employee’s right to retire. The precondition is the realisation of retirement in equal parts over five years and the obligation is divided into short-term and long-term, accordingly. The long-term portion of the provision is discounted at the rate of 4%. The estimates on which the amount of the provision is based are reviewed by the management board on every reporting date and adjustments are made if necessary. The long-term liability of 60 thousand euros related to the sale of an investment property, which must be performed by 2024, was recognised as other liabilities in 2019 pursuant to subsection 33 (3) of the State Assets Act.

Note 16 Income from state budget 2020 2019 Support for operating expenses 35,855 35,204 Targeted financing for acquisition of fixed 3,175 2,556 assets Total 39,030 37,760

No contingent liabilities are related to the targeted financing.

Note 17 Revenue from sales of services and other revenue The sales revenue of services divides as: Revenue by geographical regions 2020 2019 Total sales to the European Union Member 1,636 2,011 States 1,210 1,651 including Estonia 298 276 Denmark 42 9 Latvia 39 42 Finland 23 3 Belgium 19 22 Germany 3 0 France 2 8 Total salesOther outside European the borders Union Member of the EU States 49 30 including Japan 174 41 United RussiaKingdom 134 41 Other EuropeanNorway Union Member States 133 03 Belgium Switzerland 4 26 other countries outside the EU 2 2 Total 1,685 2,041

35 Annual Report 2020

Revenue by fields of activity 2020 2019 Cooperation projects 825 1,066 Other services 386 356 Production service 258179 258 Building rental income 15219 194 Sales of ERR production and archive material 143 167 Total 1,685 2,041 Division of other revenue 2020 2019 Targeted financing of project expenses 1,296 1,229 Targeted financing for acquisition of fixed 1,023 2,787 assetsOther income 22 116 Gain on sale of property, plant and equipment 3 3,100 Total 2,344 7,232

Targeted financing of project expenses by financiers Financier 2020 2019 Environmental Investment Centre 123 63 European Commission 118 144 Ministry of the Interior 93 0 Estonian Office of the Nordic Council of Ministers 78 131 State Chancellery 60 139 The Creative Content Support Fund 54 0 Estonian Council of Churches 54 50 Estonian Football Association 53 106 Kredex 50 68 Other financiers 37 84 Estonian Research Council 36 6 Zinc Network 36 0 Embassy of the Federal Republic of Germany 34 31 NHK Japan Broadcasting Corporation 28 0 Tartu City Government 26 23 European Endowment for Democracy 25 69 Estonian Information System Authority 23 0 Ministry of the Environment 23 3 Civitas 18 0 Rakvere City Government 13 0 Internews Baltija 10 15 Baltic Centre for Media Excellence 8 2 Collegium Musicale 7 0 Ministry of Education and Research 6 0 Ministry of Foreign Affairs of the Republic of Estonia 5 0 Knowledge Economy Forum 5 0 European Parliament 0 149 Ministry of Defence 0 60 Embassy of the United States of America 0 31 Estonian Cultural Endowment 0 17 Tallinn Television Foundation 0 15 Office of the Gender Equality and Equal Treatment Commissioner 0 13 Eesti Laulu- ja Tantsupeo Sihtasutus 0 10 Total 1,023 1,229

36 Annual Report 2020

Support targeted financing of project expenses for acquisition of fixed assets by financiers Financier 2020 2019 Estonian Information System Authority 736 2,610 Ministry of Finance 260 137 Information Technology Centre of the Ministry of 233 0 FinanceMinistry of Economic Affairs and Communications 67 0 Embassy of the United States of America 0 35 Office of the Riigikogu 0 5 Total 1,296 2,787 including non-monetary support for targeted financing of fixed assets was received Financier 2020 2019 Estonian Information System Authority 736 2,365 Ministry of Finance 260 0 Information Technology Centre of the Ministry of 233 0 FinanceOffice of the Riigikogu 0 5 Total 1,229 2,370

Unused targeted financing support in the amount of 2 thousand (57 thousand in 2019, including unused balance of 54 thousand) euros was returned in the reporting period.

Note 18 Programme production, transmission and archiving costs Expense type 2020 2019 Labour costs, including costs of non-staff 18,883 18,624 employees Royalties 2,864 2,879 Programme distribution costs 2,473 2,492 Depreciation of fixed assets and investment 2,200 2,009 properties (see also Notes 9, 10 and 19) Non-refundable VAT 2,104 2,609 Procurement expenses 2,019 3,454 Other services 1,328 1,506 Production and technical expenses 791 1,134 Staging expenses 289 335 Transport expenses 246 288 Marketing and advertising expenses 234 291 Rental and security expenses of premises 185 202 Purchase of information 184 194 Travel expenses 173 337 Communications expenses 77 90 Recording expenses 8 5 Total 34,058 36,449

37 Annual Report 2020

Note 19 Management and administrative expenses Expense type 2020 2019 Labour costs, including costs of non-staff 2,386 2,367 employees Public utility services and building renovation 660 861 Depreciation of fixed assets (see also Notes 9, 636 610 10 and 18) Non-refundable VAT 299 290 Other administrative expenses 295 384 Total 4,276 4,512 Management and administrative expenses include the expenses of property development in the amount of 133 thousand euros (127 thousand euros in 2019).

Note 20 Other expenses 2020 2019 Loss from write-down and write-off of property, 494 4 plant and equipment (residual value) (Notes 9 and 10) Damages, default interest and exchange rate 10 12 differences Total 504 16

Note 21 Staff employees 2020 2019 Salaries and wages 14,517 14,341 Social security and unemployment insurance 4,886 4,828 Total 19,403 19,169 Average number of employees 612 625 Salaries and wages, and unemployment insurance include capitalised wage costs, but do not include the costs of increasing the pension provision.

Note 22. Off-balance sheet assets, binding future liabilities and conditional liabilities • Low-value assets (acquisition cost less than 5,000 euros) at the total acquisition cost of 2,361 thousand euros were registered off the balance sheet as at 31 December 2020 (2,614 thousand euros as at 31 December 2019). • ERR had the following long-term liabilities in relation to the purchase of the rights to broadcast sports events: 31.12.2020 31.12.2019 Football World Cup 2022 130 195 Athletics, Indoor Athletics World/European 159 227 Championships Ice hockey 52 79 Broadcasting rights of other sports 12 17 Biathlon 8 32 Total 361 550 The prepayments made for the long-term liabilities of the broadcasting rights of sports events are recognised in Note 7.

38 Annual Report 2020

• Tax authorities have the right to inspect the accounting of ERR for taxation purposes within up to five years of the due date for filing a tax return and, upon ascertaining errors, impose an additional amount of tax, interest and fine. The management is of the opinion that there are no circumstances that could result in tax authorities imposing any significant additional tax amounts on ERR.

Note 23 Transactions with related parties The remuneration, including social tax, of the management board members of Estonian Public Broadcasting was 389 thousand euros (385 thousand euros in 2019). The service contracts of the management board members do not stipulate the payment of a severance benefit. The remuneration, including social tax, of the supervisory board members of Public Broadcasting was 171 thousand euros (168 thousand euros in 2019). The remuneration and royalties, including social security and unemployment insurance premiums, calculated for persons related to members of the management board, supervisory board and the management amounted to 10 thousand euros (3 thousand euros in 2019). Sales transactions with related parties amounted to 40 thousand euros during the reporting period (12 thousand euros in 2019), of which there are no payables as at 31 December 2020 (1 thousand euros as at 31 December 2019). Purchase transactions with related parties amounted to 87 thousand euros during the reporting period (3 thousand euros in 2019), including payables in the amount of 18 thousand euros as at 31 December 2020 (there were no payables as at 31 December 2019). The amount of the targeted financing support received in the reporting period was 8 thousand euros (4 thousand euros in 2019). Transactions with related parties have been concluded on ordinary market conditions. There were no write-downs of receivables from related parties in 2020 and 2019.

39 Annual Report 2020

INDEPENDENT CERTIFIED AUDITOR’S REPORT

40 Annual Report 2020

41 Annual Report 2020

42 Annual Report 2020

SIGNATURES OF MANAGEMENT BOARD OF PUBLIC BROADCASTING The management board of Estonian Public Broadcasting has prepared the annual report for 2020, which consists of the financial statements and the management report.

Erik Roose Chairman of the Management Board Riina Rõõmus Member of the Management Board Urmas Oru Member of the Management Board Joel Sarv Member of the Management Board

Tallinn, 31 March 2021

/digitally signed/

43 Annual Report 2020

OPINION OF AUDIT COMMITTEE to Annual Report 2020 of Estonian Public Broadcasting

In the financial year 2020, the audit committee acted according to the effective work procedure and the work plan developed on the basis of this procedure and approved by the supervisory board. No restrictions have been established on our activities and the information we’ve requested has been made accessible to us. We have informed the supervisory board and management board of ERR routinely of the opinions formed as a result of our work and the suggestions related to them.

In respect of Annual Report 2020, we’ve formed our opinions on the following activities: 1) processing of financial information; 2) efficiency of risk management and internal control; 3) process of auditing the financial statements; 4) independence of the audit firm and the certified auditor who represents the audit firm on the basis of law; and compliance of activities with other legal requirements.

Based on the results of the performed and submitted external and internal audits and other control activities, the audit committee is not aware of any circumstances critical enough to jeopardise the effectiveness of the internal control system and the continuity of economic activities, or cause interruptions in any processes and/or functions, and/or have a significant impact on ERR’s Annual Report 2020. We advise the supervisory board of ERR to approve the annual report.

Viktor Trasberg Chairman of Audit Committee Taavi Saat Member of Audit Committee Tõnis Vahesaar Member of Audit Committee

/digitally signed/

44 Annual Report 2020

SIGNATURES OF SUPERVISORY BOARD OF PUBLIC BROADCASTING to Annual Report 2020 of Estonian Public Broadcasting

We approve the Annual Report 2020 of Estonian Public Broadcasting, which was approved by the management board on 31 March 2021 and audited by AS PricewaterhouseCoopers.

Rein Veidemann Chairman of the Supervisory Board Peeter Espak Member of the Supervisory Board Priit Hõbemägi Member of the Supervisory Board Viktoria Ladõnskaja-Kubits Member of the Supervisory Board Jevgeni Ossinovski Member of the Supervisory Board Valdo Randpere Member of the Supervisory Board Anti Poolamets Member of the Supervisory Board Viktor Trasberg Member of the Supervisory Board Marika Tuus-Laul Member of the Supervisory Board

/digitally signed/

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