SUSTAINABILITY REPORT 2012 Contents:

3 CEO Message 4 About Relacom 8 Key Strategies & Goals 10 Environment 14 Customer Relations 18 Employees 24 Community Involvement 26 Stakeholder Engagement 27 About this Report 28 GRI Cross-Reference Index

© Relacom 2013 Welcome CEO Message

This is our second sustainability report in accordance with Global Reporting Initiative guidelines, summarising our actions and impact throughout 2012. Our sustainability programme is based on our Values, Code of Conduct and Global Compact’s ten principles, which we are committed to continuing to support throughout the coming years. The purpose of our sustainability programme is to ensure we conduct our business in a responsible way. »» We have reduced both our energy use and CO2 emissions by 25 % through reducing the number of Our focus on sustainability is something we take very vehicles in our fleet, introducing fuel-efficient engines, seriously and consider an integral part of our Vision: to be using online travel logbooks and providing training in the number one technology services company. To achieve eco-driving. this, we all have to share the same understanding of where we are going, how we will get there and what it will take to »» Furthermore, we began installing a GPS system, in reach these goals. order to cut down on travelling distances. Not only does this save time, it also increases the efficiency of

Highlights of 2012 our operations and reduces both costs and CO2 emissions from transport. Over the past year we increased our efforts to establish our key strategies and implement the organisational structure. To summarise, these combined efforts are hugely important 2012 was also marked by a number of activities aimed at in helping us focus on key areas, but what really counts, and improving our common sustainability programme - some what the formal reports are based on, is how we act when highlights of which include: conducting our day-to-day operations. While we have introduced a comprehensive sustainability programme, »» Together with our key strategies, we developed much remains to be done during the coming years to processes and methods for following up on customer develop our sustainability goals and improve our routines. satisfaction issues and we conducted our first customer satisfaction survey. The overall score for the Relacom We would like everybody connected with Relacom to believe Group in 2012 was 69 out of 100. in our full commitment to delivering our services with the highest levels of competence and safety, as well as »» The results of our employee survey for 2012 indicate constantly working to reduce the impact of our operations on that employees rated most positively factors such as the climate and environment. workplace atmosphere (3.89 out of 5), competence (3.70) and staff motivation (3.67).

»» We assisted Telenor in Denmark in developing renewable energy-based power supply solutions. The Thomas Körmendi, project consisted of designing and installing wind and President & CEO solar power solutions in three locations in order to supply renewable energy for Telenor’s base stations. The project is of key importance in contributing to the increasing use of renewable technologies.

3 About

About Relacom

Relacom is a leading technology services provider in Orbion Consulting, which operates in Denmark, Finland, Northern Europe. We plan, design, construct, install, and Norway, Poland and Sweden, is part of the Relacom Group maintain networks and equipment which drives society’s and offers leading consultancy services within the telecom needs. We offer strategic solutions for the and energy provision markets. Together, Relacom and telecommunications, power supply and M2M (machine to Orbion offer unrivalled integrated solutions through the machine) markets. We provide a broad range of services by entire value chain for both local, national and combining the best competence in the industry with transnational customers. state-of-the-art technology and solutions. Our Operational Structure Our Market In the Relacom Group, business operations are conducted Relacom offers strategic integrated services to major independently in each country of operation and are led international companies and has a strong position as a by the country General Managers. The support functions local partner for companies, municipalities, energy include human resources, finance and communications, and providers, network owners and consumers. Our proven track these are shared commonly. Our business operations are record extensively covers the construction of separated by business area into Telecom, Power Supply, nationwide mobile networks, life-cycle management of M2M Systems and Orbion consulting. Relacom Group is electrical and telecom networks, installation of fibre optics owned by a bank consortium consisting of Nordea Bank for new residential areas, securing of wireless Norge, Svenska DNB Bank and the Copenhagen branch of communications for workplaces and private homes, and the HSH Nordbank. installation of networked applications for retail and logistics companies.

Company Name: Relacom Group (Relacom Management AB)

Location of Headquarters: Stockholm, Sweden

Countries of Operation: Denmark, Finland, Norway, Poland & Sweden

Turnover: 5,1 Billion SEK

Number of Employees: 5031

Volume of Services: 1,000,000 visits to customers per year

4 Our Organisational Structure

CEO

Support & CFO Group Functions

Norway Sweden Finland Poland Denmark

Telecom

Power Supply

M2M Systems

Orbion Consulting

CUSTOMERS Regional, National and Transnational

Governance As of 2011, Relacom is a UNGC The company’s shareholder’s meeting represents the top signatory. This commitment entails legal entity of the Group. Decisions made by the working in accordance with the UN’s shareholders are translated into instructions, frameworks ten fundamental principles for and targets by the board of directors (Chair of the Board: responsible business. The Global Mats Lönnqvist), before being communicated to the Group’s Compact includes: Principles for management team. human rights, labour conditions, environment and anti-corruption. We The Group’s management team subsequently runs the also submit a report annually, entitled company in line with these instructions and frameworks to ‘Communication on Progress’, which meet the targets set by the board of directors. Below this summarises our commitment to the Did you know? level, the Group is managed by management committees Global Compact’s ten principles. via robust reporting lines.

In 2012 we held a two-day meeting with Relacom’s Business Based on Strong Values Global Compact 1-2, 4-6, 10 management. Ninety managers and key personnel gathered in Stockholm with the goal of sharing the vision to achieve We often serve as the link between operators, power the highest possible customer focus in a dynamic company, companies, end users and suppliers. It is a role which is characterised by a constant desire to improve. These closely linked to responsibility. How we structure our combined factors lead to sustainable profitability, a strong processes and manage our production affects our impact on market position and satisfied employees. the environment and society. We therefore base our business on core values - Experience, Presence, and During the meeting, we jointly identified priorities and drew Innovative Power. up concrete measures for continuing our progress in this direction and thereby increasing value for customers, Furthermore we have developed the Relacom Group’s Code owners and co-workers. of Conduct, which is based on the Core Values and the ten principles of the United Nations Global Compact (UNGC).

5 The purpose of our Code of Conduct is to outline the rules according to which we at Relacom should act. In our Code of Conduct we have defined rules regarding health & safety, abolition of discrimination, respecting labour rights, abolition of child labour and forced labour, environmental responsibility, supply chain responsibility, business ethics and anti-corruption.

All managers work in accordance with the principles and values within our Code of Conduct. All new employees receive information about our Code of Conduct together with their introductory programme. We have also implemented a “whistle blower” system, in which employees are able to report any violations relating to principles in our Code of Conduct.

Crisis Management

A crisis or disaster can occur anytime or anywhere. Perhaps an employee might suffer a serious accident, or there is a fire and damage to one of our facilities, Relacom could even become involved in a social crisis. To deal with this in an effective way, Relacom has established a crisis management organisation, which can be convened quickly. Using action plans, checklists and support, emergency management procedures will resolve the crisis and minimise their consequences. For crisis management to work in practice, it must be very simple.

We have implemented a process, currently limited to Sweden, where each employee receives a “Crisis Card” with a number to the crisis management system, which is accessible 24/7, and a description of how to respond in a crisis situation. Three quick questions will help employees to make the correct assessment of the situation: Firstly, is there a risk that the incident involves injury to any person or Relacom? Secondly, is immediate action required? Finally, can I influence events by intervening?

6

8 services. existing andfuture needsbyoffering themoutstanding Our successisdrivenbyourability tomeetcustomers’ Customer Focus do things,andeffectiveness throughoutwhatwedo. and anoperationaldimensionsecuresefficiencyinhowwe possible way. The combinationofthebusiness dimension excellence –itallowsustoutiliseourresourcesinthebest One Relacomisalsoaprerequisiteforoperational brand bothinternallyandexternally. Relacom wecanefficientlybuildastrongandattractive principles, valuesandobjectives.WhenactingasOne a sharedvaluepropositionandcommonoperating stakeholders asonecompanywithvision, customers, employeesandother achieve this,wealwayscommunicatewith Power SupplyandM2Mmarkets. To services tothe Telecommunications, customers, offering strategicintegrated technology servicescompanyfor Relacom’s visionistobethenumberone One Company and Goals Key Strategies Key Strategies Did you know?

to workwith. offer. as agroup,candothingsdifferently andthusenhanceour challenge ourselvesregarding howwe,asindividualsand progressively andcontinuously. Therefore, wemustalways and thisiscrucialforRelacom,inordertodevelop Even asamarketleader, thereisalways roomtoimprove, Constant Improvement competitiveness, whichmakesustheirpreferredpartner unique meansofstrengtheningourcustomers

By beingtrulycustomeroriented,Relacomhas

Our organisationalstructureandprocesses respective markets. must alwaysreflectandadapttochanges helping themtostaycompetitiveintheir their industryandownneeds, in ourcustomers’ environment,bothfor

We will continuously and proactively support, encourage and incentivise initiatives which lead to improvements in our capacity to provide better value for our customers, employees, owners and other stakeholders.

Profitability

Profitability goes hand-in-hand with satisfied and loyal customers who value our services. This, in combination with an efficient organisation, can then push costs down while still delivering higher value. Relacom’s profitability is dependent on One Company for operational excellence, Customer Focus for top line growth and Constant Improvement to drive value-added services.

We always challenge all our costs and strive to improve the value of what we deliver by creating value based services which over time generate higher yield on revenues and improved margins. Our pricing should be commercially sound and represent the value we bring to our customers.

9 Environment

Environment

Table 1. Key figures, environment Environmental responsibility is everyone’s responsibility and EN3, Global Compact 8 we therefore work actively to reduce the impact of our own operations. The focus of our environmental management 2012 2011 Change programme seeks the best solutions, not only for the 3 environment, but also for our customers and employees. Fuel Consumption (m ) 7,475 9,533 -22% Direct energy consumption (MWh) 69,444 92,197 -25% Relacom contributes towards a positive environmental Direct greenhouse gas impact within society through its services, for instance by emissions (ton CO2e) 17,928 23,989 -25% ensuring among other things that the communication networks and access to electricity are functioning properly. We are also committed to reducing the environmental We believe that by demonstrating how we work with impact of our own operations which we and our customers sustainability, we are making an important statement to expect us to do. the market, our customers, suppliers and, not least, our employees. The environmental management system of our Finnish, Norwegian, Polish and Swedish Energy business units is certified according to ISO CO Emission 2 14001:2004. Environmental management Reduction Relacom has 262 offices and service system for our Danish business unit facilities across five countries. Energy follow similar principles and have their consumption in the form of electricity, own goals and environmental policy. -25% heating and cooling is therefore of utmost During the coming year we will be environmental importance. In 2012, we focusing on defining group level started a comprehensive group-wide study environmental goals in order to further develop in order to map our energy consumption. The our “One Company” strategy. project indicated much is yet to be done before we are able to accurately estimate use of electricity, heating Currently the five focus areas are: Energy, Climate, Work and cooling in our premises in our countries of operation. in Sensitive Areas, Chemicals, and Waste. 10 For instance, such data is currently not available for Increases in fuel consumption in Poland are due to an premises where Relacom is a tenant and not the owner. increase in the total number of vehicles (around 10%) and Our challenge is to establish a method for reporting and an increase in the average mileage (around 20%). following up on energy use together with our property owners.

In 2012, we reduced our fuel consumption for vehicles by 22% and consumed 69,444 MWh in total, of which 85% was diesel, 11% was LPG (liquid petroleum gas) and 4% was petrol. The significant reduction in fuel consumption is thanks to different strategies implemented in the organisation. For instance, we have reduced the size of our vehicle fleet in the Finnish business unit by 10%, which has contributed to a reduction in energy consumption. Relacom Norway has reduced its fuel consumption by 31%, partly due to energy-saving measures like digital travel logbooks for efficient travel planning and more accurate service mileage reporting; replacing old engines in 600 vehicles with new fuel-efficient models; and eco-driving courses for technicians.

Table 2. Direct energy consumption by fuel type and country (MWh) EN3, Global Compact 8

2012 2011

Diesel Petrol LPG* Total Diesel Petrol LPG* Total Change 2011-2012 Finland 10,441 134 0 10,575 27,534 899 0 28,433 -63% Denmark 1,308 3 0 1,311 1,105 22 0 1,128 16% Norway 17,801 307 0 18,108 25,243 1,119 0 26,362 -31% Poland 3,984 1,911 7,836 13,370 7,031 1,220 2,341 10,592 30% Sweden 25,234 486 0 25,720 25,080 603 0 25,683 0% Total 58,767 2,841 7,836 69,444 85,993 3,863 2,341 92,197 -25%

* LPG - Liquid Petroleum Gas

Climate

We take climate-change issues seriously and work actively This saves time, increases the overall efficiency of our to reduce CO2 emissions from our transport operations. The operations and reduces both costs and CO2 emissions from environmental effects driven by climate change, e.g. transportation. We hope to decrease the total travel distance extreme weather, changes in precipitation extremes, by 10-15% during the coming years, thanks to better extreme snowfall and ice, have a direct financial impact on planning using GPS systems. our industry and our customers. In 2012, we also replaced 262 diesel cars in Poland with In 2012, our fuel consumption contributed to 17,928 tons of cars fuelled by LPG (liquid petroleum gas). LPG vehicles are

CO2 emissions. In order to reduce our emissions we have more energy efficient and LPG has approximately 9% lower started introducing a GPS system (in Finland, Sweden, emissions in comparison with an equivalent diesel engine. Norway and Poland) in order to plan our assignments An additional 100 LPG cars will replace the diesel models in better and optimise distances travelled. Poland during 2013.

11 In order to reduce the environmental impact of business Table 3. Greenhouse gas emissions (ton CO2-e) travel, video meeting equipment has been installed in our EN16-17, Global Compact 8 offices, thereby enabling us to hold international group meetings without travelling. Furthermore, we are also 2012 2011 installing solutions for online meetings with external parties Vehicle Business Sum Vehicle Business Fuels Journeys Fuels Journeys for the benefit of customers and business partners in order Finland 2,765 53 2,818 7,434 n/a to limit unnecessary travel. During the coming years we are Denmark 343 43 386 295 n/a going to investigate the introduction of a common system for Norway 4,734 n/a 4,734 6,892 n/a reporting business travel. Poland 3,394 70 3,464 2,710 n/a Work in Sensitive Areas Sweden 6,692 261 6,953 6,658 293

n/a - not available We often conduct our work outdoors, which sometimes involves carrying out operations in forests or parks with high ecological and/or cultural value. It is our utmost priority to Waste ensure the procedures, equipment and materials we use do not damage the immediate environment we work in or cause In order to reduce our environmental impact and ensure injury to co-workers. We have therefore prepared an action sustainable development, both waste minimisation and plan and published guidelines for our technicians, focusing responsible waste management are vital. Waste on necessary precautions and how to carry out activities in management procedures make up an integrated part of our these sensitive areas. Our goal is to avoid any complaints operations. Furthermore, we both utilise and recycle the regarding interference with the surrounding nature and waste material resulting from our production processes as reduce unnecessary traffic issues in outlying fields. standard in service contracts. The same obligations apply to our subcontractors. Chemicals Our ambition is to ensure that waste from our own We often use chemicals when we carry out our installations. operations is recycled at as high a rate as possible. In order to ensure the usage of necessary materials and Relacom Finland, for instance, conducted a waste chemicals do not harm the environment or people, we have separation survey at five premises in order to identify how established a process for minimising storage of chemicals recycling of waste resulting from its operations could be required for carrying out installations and maintenance. improved. On many of our premises we have already We are constantly seeking safer alternatives for chemicals introduced advanced waste recycling stations, including which are not preferable from an environmental and safety containers for collecting not only office waste, but also the standpoint. Wherever possible, we use substances derived cabling and construction waste from our service operations. from natural sources or not classified as “harmful” or “toxic.” We have also implemented schemes for proper waste handling and transportation for locations outside our offices In 2012, Relacom Sweden introduced a new software where we carry out assignments. system for handling the documentation of such chemicals and compiling safety datasheets, quantities and risk assessments of chemicals. This enables efficient and safe management of these chemicals. Our aim is to introduce similar solutions in other countries.

12 Table 4. Waste by country and disposal method, 2012 (ton) EN22, Global Compact 8 Relacom Norway actively Non-hazardous waste Denmark Finland Norway Poland Sweden promotes the use of renewable energy sources by Reuse 1 0 14 0 0 providing heating pump installation services Recycling 0.2 82 352 103 293 throughout the country. Composting 0 2 1 0 0 Energy Recovery (waste to energy) 1 49 261 0 297 Did you know? Incineration (mass burn) 0 12 0 0 0 Landfill 0 50 0 0 34 Sum, Non-hazardous waste 2 195 628 103 625 Hazardous waste Denmark Finland Norway Poland Sweden Recycling 0.1 4 4 0 131 Energy Recovery (waste to energy) 0 0 6 0 2 Landfill 0 0 0 0 43 Sum, Hazardous waste 0 4 10 0 176 Total 2 199 638 103 801 n/a - not available

Great Story Solar Energy

Relacom Denmark plays an active role in promoting the use of renewable energy technologies by providing knowledge, products and services for the wind turbine market. We have similarly maintained a strong focus on solar technology; as an environmentally friendly and cost-effective energy source. Today, there are extremely efficient solar modules which do not necessitate direct sunlight and which are aesthetically pleasing.

Our high quality solar energy systems have a life expectancy of over 30 years with minimal maintenance. Our photovoltaic modules consist of crystalline solar cells, which are composed of elemental silicon. Silicon is a fairly abundant resource, which is recovered from sand. Today’s typical commercial solar cell has an efficiency level of approximately 16-20%. In other words, up to 20% of the captured solar energy is converted into electricity.

“After seeing electricity prices continue to rise uncontrollably, I decided this had to change. So I said goodbye to my electricity bill and bought and installed solar power from Relacom instead.”

Kenneth from Bellinge Read Kenneth’s solar energy blog (in Danish only): http://goo.gl/DAzrI

13 Customer Relations

Customer Relations

One of our strategy areas is Customer Focus. Our success Our established routines and processes for is driven by our ability to meet our customers’ existing measuring our customer satisfaction are now divided and future needs by offering them outstanding into two areas: Customer Satisfaction Index (CSI) services. So, for a service company like and Net Promoter Score (NPS). Relacom, the ability to be on-site quickly is Customer at the core of the offer to our Satisfaction The purpose of CSI is to reflect how customers. Combining an industry-wide satisfied our customers are with and geographical dimension with Relacom as a supplier and identify areas state-of-the-art expertise secures where our key account management can deliveries which customers feel fulfil their 69 improve quality in our delivery to expectations from us. Our strategic goal is to customers in order to increase be the number one supplier and ensure customer retention. that customers are satisfied with our services. The purpose of NPS is to communicate the likelihood of As a unified Relacom, we are now striving towards our customers recommending us as a supplier and reflects increased customer focus in everything we do. Through over time how we are improving our customer focus. Both continuous in-service training and smart tools for planning, indicators are measured on a quarterly basis through an we can ensure integrated services to customers within online questionnaire. Telecom, M2M and Power Supply, both locally, nationally and throughout our five markets. According to our CSI survey for 2012, the overall score for the Relacom Group was 69 out of 100, which we believe is Customer Satisfaction a sufficient starting point. The survey indicates that we have most satisfied customers in Denmark and Norway. The Customer Satisfaction is one of the highest priorities at results show also that our customers are most satisfied with Relacom, and a cornerstone of our overall business our M2M services. strategy. During 2012 we developed a new strategy for improving our customer focus and integrated the customer satisfaction process with key account management. 14 Table 5. Customer Satisfaction Index PR5

CSI by Country 2012 Orange Polska has contracted Finland 68 Relacom to lead a consortium Denmark 70 for one of the largest fibre-net- Norway 70 work rollouts in Poland. The contract involves more than Poland n/a 1,800 km of fibre, and the Sweden 68 delivery of design, construction CSI by Business Area 2012 services and material supply will be delivered. Telecom 69 Did you know? Power 60 M2M 73 Orbion n/a Group Total 69

However, we need to improve our processes in the business Customer Service Based on Values area of Power Supply, where we had our least satisfied customers, according to the survey. Our core values are reflected in the way we serve our customers. We are highly experienced and customers It was not possible to measure scores for NPS due to the appreciate that we have extensive knowledge of low number of responses. Poland was not included in infrastructure, business models, regulation and technology. the survey. The Relacom Group’s goal is to We also know how important strong integrity and the increase the overall CSI to 75 by 2014 and protection of customer data is, and therefore have NPS to 50 by 2015. processes in place to ensure safe handling of such information. In 2012, no cases of loss of customer data were reported.

Great Story Keeping the customers in focus

In Norway, a customer contacted Relacom. She had recently been visited by our technician, Freddie. The customer both needed assistance with her broadband and had requested information regarding the new possibilities broadband could give her. She admitted that she initially had been sceptical towards receiving an unknown visitor, but wanted to express her gratitude. She even went to the trouble of calling our switchboard in Oslo to tell us how Freddie had helped her and demonstrated how the broadband worked. “If I had to grade Freddie on his knowledge and his conduct towards me as a customer, I would give him a 10 out of 10”, she said.

15 During 2012, we have invested substantial effort in efficiency and develop Group-wide policies for complaints becoming our customers’ interface towards their custo- management. mers. Relacom Sweden conducted a market survey among Swedes in September 2012. According to the results, 37% Cooperation with Suppliers of Swedes believe that, excluding value-for-money, good customer service is the most important factor when choo- Collaboration with suppliers plays a vital role in our service sing an operator. quality and develops our services and business in a sustainable way. Our ambition is to ensure we take We focus on close dialogue and active listening in order to responsibility for service quality, environmental matters, and understand customers’ needs and expectations. Our social responsibility issues within our supply chain. customers have clearly stressed the importance of However much remains to be done in order to achieve this. Relacom having implemented proper environmental and At Relacom, we believe a long-term relationship and close quality management systems, ensuring employees safety co-operation with our suppliers fosters increased quality and at work and social responsibility. Also of importance is that profitability, both for our suppliers and us. we are seeking to provide innovative solutions and are able to offer such services as installation of smart-grids and All suppliers undergo supplier assessment before contract renewable energy resources. approval and we expect them to follow the appropriate legal requirements, comply with our service quality Fast claims handling requirements, and have the necessary environmental management systems in place. In Denmark, Finland, Poland Fast and efficient claims handling is also part of our efforts and Sweden more than 90 % of the total procurement to ensure outstanding customer service. We record and budget was spent on local suppliers. follow up all customer claims. The average response time and number of unsolved claims are followed up on a monthly basis by our sales department. During the forthcoming year we will improve the process

Great Story Service that meets customers needs

R-kioski Oy is a kiosk chain with 656 kiosks in Finland, providing customers with entertainment as well as basic everyday products and services from morning to evening. R-kioski’s cashier system was approaching the end of its lifecycle, and they needed a supplier who could deliver, install and maintain new equipment throughout Finland.

We took on project planning and co-operation with R-kioski, so operation of the kiosks would continue with minimal disruption. It took Relacom just five weeks to replace all R-kioski cash registers across Finland, a total of 780 devices, involving 2,500 R-kioski sales people. Remote access to the software was also installed in order to reduce the time necessary for carrying out maintenance of the equipment in the future.

“The project was challenging and very important for us, and Relacom carried it out in time and as agreed. As also the cashier system’s users are satisfied, the project can be considered as a success.” - Pentti Talikka, IT-Director, R-kioski

16

Our supplier assessment is based on the following criteria:

»» Price,

»» Quality,

»» Terms of delivery,

»» Terms and conditions for payments,

»» Previous projects and performance,

»» Existing quality and environmental management systems.

It is the responsibility of the business area manager or the specific project manager to follow up on installations and confirm that the quality complies with our standards. During the forthcoming years, we will develop group-wide supplier requirements and purchasing guidelines in order to strengthen environmental and social responsibility within our supply chain.

17 Employees

Employees

To become a truly successful company, we believe that we must see employees as our most important asset. Without Table 6. Number of employees divided by region our employees’ dedication, Relacom would not be where and employment contract LA1 it is today and it is therefore of great importance to us to ensure our employees are content and feel appreciated for 2012 2011 what they achieve. Relacom’s core values are experience, presence and innovative power, and these should permeate Total Permanent Full Time Total Contract everything we do. To be able to think “outside the box” there Finland 692 659 669 669 is a need for an open and creative corporate climate where -men 92% 93% 93% 92% every individual’s experience and knowledge is valuable. -women 8% 7% 7% 8% Those values should be associated with Relacom. Denmark 76 76 76 96

Customers, as well as employees, expect Relacom to be an -men 89% 89% 89% 90% innovative company which offers new solutions and new -women 11% 11% 11% 10% technologies. It is therefore of great importance for us to Norway 1,958 1,950 1,877 1,886 live up to and strive to surpass our team’s expectations. -men 92% 92% 92% 92% Today, many of our employees have shown loyalty in -women 8% 8% 8% 8% working for Relacom knowing we are a company which Poland 799 191* 797 735 strives to do what’s best not only for our customers but also -men 91% 85% 91% 90% for society as a whole. As we work with essential -women 9% 15% 9% 10% infrastructure, necessary for society to function, we can Sweden 1,506 1,410 1,486 1,581 ensure our technicians are readily available if there is a -men 89% 88% 89% 85% need for repair. It also creates loyalty amongst them as -women 11% 12% 11% 15% our teams feel that they are able to benefit the community through their daily work. * Majority of fixed term contracts in Poland are 3-year contracts

18 Great Story We help to keep our customer’s clients happy

A world-leading auction firm was holding a major international art auction in Stockholm. Eminent guests were waiting and bidders from around the world had the opportunity to place bids via the internet. Suddenly, both the internet and phone connections were lost. The entire evening was in danger of being cancelled.

This particular week, it was technician Per Wahlman’s shift in Stockholm and the message about the crisis was delivered to him. However, the error was difficult to locate and Per, with 33 years working experience in the field, took the initiative and went to the auction hall, and once on-site, he saw a way to solve the problem. Per ensured the auction continued and made the evening a success for the many guests.

“I have never received thanks and greetings from so many people!” - Per Wahlman

Table 6. Number of employees divided by region Table 7. Composition of Governance Bodies and employment contract LA13, Global Compact 1, 6 LA1

Number of Members 2012 Number of members 2011 2012 2011 Country Management Finland 9 9 Total Permanent Full Time Total Contract -men 7 6 Finland 692 659 669 669 -women 2 3 -men 92% 93% 93% 92% Country Management Denmark 6 6 -women 8% 7% 7% 8% -men 6 6 Denmark 76 76 76 96 -women 0 0 -men 89% 89% 89% 90% Country Management Norway 13 14 -women 11% 11% 11% 10% -men 12 13 Norway 1,958 1,950 1,877 1,886 -women 1 1 -men 92% 92% 92% 92% Country Management Poland 11 12 -women 8% 8% 8% 8% -men 10 11 Poland 799 191* 797 735 -women 1 1 -men 91% 85% 91% 90% Country Management Sweden 13 10 -women 9% 15% 9% 10% -men 12 9 Sweden 1,506 1,410 1,486 1,581 -women 1 1 -men 89% 88% 89% 85% Board 3 3 -women 11% 12% 11% 15% -men 3 3 -women 0 0 * Majority of fixed term contracts in Poland are 3-year contracts

19 Employee Survey

In order to focus our efforts on the right course of action, Our ambition is to be ranked as the No.1 employer in our Relacom conducted an employee survey in Finland, industry and have our co-workers feel safe and satisfied Sweden and Norway during 2012. Poland and Denmark, with their work. During the coming years, we will strengthen however, were not included in this survey. The results are efforts to achieve this through various measures, from satisfying overall, but we were able to pinpoint which areas competence development to benefit packages. In 2012, for need improvement, just as we had initally intended. instance, Relacom in Sweden joined an employer index for ranking performance as a “Great Place to Work”. The Employees gave the highest scores to workplace ranking results for Relacom Sweden will be available in atmosphere (average 3.89 out of 5), competence (3.70) and 2013. Our ambition is to also introduce similar follow-ups in motivation (3.67), of which we are proud. This would the other countries. suggest an open climate which encourages innovation and ideas for improvement. When it comes to the overarching Table 8. Employee Turnover 2012 questions concerning Relacom’s vision, goals and future LA2, Global Compact 6 development the view is generally positive and employees are well aware of these goals. Finland Denmark Norway Poland Sweden

Number of new 85 34 196 357 153 employee hires, whereof: -men 82 31 183 322 130 Figure 1. Employee Survey Summary, 2012 -women 3 3 13 35 23

We have a good workplace atmos- -up to 30 years 33 10 121 196 63 phere and I enjoy working with my 3.89 colleagues -from 30-50 years 33 22 47 143 59 I have the competence I need to -over 50 years 19 2 24 18 31 solve my tasks 3.70 Tot. number of new employee hires I feel motivated in my job 3.67 leaving employment, I have a positive view on Relacom’s future developments 3.45 whereof: 17 6 14 107 33 -men 17 5 12 94 30 I am well aware of Relacom’s vision 3.40 & goals -women 0 1 2 13 3 I have good opportunities for -up to 30 years 11 2 9 57 19 personal development 3.23 -from 30-50 years 1 3 5 49 10 My manager organises my workload well so I can deliver satisfactorily 3.11 -over 50 years 5 1 0 1 4 Employee Turnover 20% 18% 7% 30% 22% I have enough time to fulfill my tasks 2.84

The survey shows, however, that we do have areas where Leadership we need to improve. In all three countries, the employees feel there is often not enough time to fulfil tasks in the most Relacom’s managerial strategy is to have managers who satisfying way. In today’s society, there are greater fulfil all aspects of leadership. Our approach is to demands for faster results and it is difficult to resist this identify the differences between being the appointed ethos at work. In order to improve matters, in 2012 we manager through a formal process and being a leader started implementing GPS systems for more efficient through confidence given by co-workers. This strategy forms planning of our assignments and routes, which saves time the basis for our recruitment of managers, both internally and helps the technicians to reach their destination faster. It and externally. also functions as a safety measure which enables us to locate technicians in the event of accidents. The GPS In order to equip all managment personnel in the company system will gradually be introduced in all countries. with the right skills and information, we launched a Leadership Programme in 2012.

20

The programme focuses on five basic principles for leadership development within Relacom: a leadership which is down to earth and grounded in reality, is easily replaced in practice, evaluation based, focused on communication and cost effective. The leadership programme is part of our ‘One Company’ strategy and provides a common platform for leadership. We believe that having motivated and skilled leaders is integral to driving innovation, customer and employee satisfaction.

The purpose of our leadership programme is to highlight rights and obligations and make sure that all leaders know the requisite methods and approaches. Furthermore, one Table 8. Employee Turnover 2012 of the most important objectives is to increase awareness LA2, Global Compact 6 of equal values. The leadership programme is divided into five modules - Leader in Relacom, Labour Rights, Health Finland Denmark Norway Poland Sweden & Safety, Sales, and Leadership Training. The programme Number of new 85 34 196 357 153 employee hires, was implemented in 2012 and into 2013. However we can whereof: already see it has given Relacom an invaluable foundation. -men 82 31 183 322 130 -women 3 3 13 35 23 -up to 30 years 33 10 121 196 63 -from 30-50 years 33 22 47 143 59 -over 50 years 19 2 24 18 31 Table 9. Formal performance evaluation reviews & training hours LA10, LA12 Tot. number of new employee hires leaving employment, Finland Denmark Norway Poland* Sweden** whereof: 17 6 14 107 33 % of workforce which had formal performance 81% 48% n/a 0 31% -men 17 5 12 94 30 evaluation during 2012 -women 0 1 2 13 3 % of workforce which had formal performance -up to 30 years 11 2 9 57 19 evaluation during 2011 67% 81% 30% 0 20% -from 30-50 years 1 3 5 49 10 Average hours training per employee (2012) 9 46 n/a 12 4 -over 50 years 5 1 0 1 4 Average hours training per employee (2011) 5 46 16 11 7 Employee Turnover 20% 18% 7% 30% 22%

* No formal performance evaluation review conducted. **Actual rate of formal reviews is probably higher, however the documented rate is 31% for 2012

Safety First

It is absolutely essential that a workplace is safe for We have developed high safety standards and carry out everyone. Therefore, Relacom always puts safety first. We safety training annually for our managers and technicians. are working systematically to reach our vision of zero We have begun introducing personal alarm systems incidents by following each country’s laws and legislation. connected directly to the emergency services for employees We continuously focus on reducing sick leave and working in exposed places, such as on pylons. Our GPS preventing injuries by following up cases in the Work system for plan