Corporate Responsibility at

Orsolya Nyilas Head of Internal Communications and Corporate Responsibility Core Business of Vodafone

Provide a wide range of communications services including

VOICE

MESSAGING

DATA

2 Vision: Our vision is to gain the trust of people while transforming societies and enabling sustainable Corporate living for all in Hungary. Responsibility Mission: Our mission is to help to build a sustainable future by delivering products and services that enable positive ECONOMIC, SOCIAL and ENVIRONMENTAL outcomes for our stakeholders.

3 Focus areas ‹ Direct economic value ‹ Payments to government ‹ Employee wages and benefits ‹ Supply chain management

Responsibility towards ‹Employees ‹Customers ‹ Energy use and carbon ‹Wider society footprint ‹ Waste management

4 Environmental impact of our products and services Eco-rating

• Aim: reduce the environmental impacts empower customers to make more sustainable choices • enable customers to consider other aspects of our products than price, such as abilities, design and environmental impact • 1 to 5: 5 being the most environmental friendly and 1 being the least green option • eco-rating is based on 200 criteria • introduced eco-rating in Hungary in 2011 • 2012/2013 – 60% of our stocked products had eco-rating – 76% of our products sold were rated – the weighted average 3,35 6 E-billing and universal charges

E-billing biggest environmental challenges in Hungary: energy efficiency and carbon dioxide emissions with e-billing: customers can check and pay their invoices in a fast, safe, easy and environmental-friendly way more than 30% of our consumers and 25% of our enterprise customers used e- billing

Universal chargers Aim: reduce electronic waste by eliminating the need for consumers to replace their charger when they buy a new phone 90% of the smart phones stocked by Vodafone were supplied with a GSMA- compliant (or equivalent) universal charger 7 Vodafone Hungary’s environmental impact Our environmental impact

Main focus: use energy more efficiently in our networks, data centres and operation committed to continue minimising our carbon footprint in spite of our growing operations intend on reducing the carbon dioxide emissions from our network use by procuring green energy and the – still experimental – use of renewable energy sources

9 Our energy use and carbon footprint

AnnualAnnual Electricity Electricity ConsumptionConsumption (thousand(thousand kwh) kwh)

NetworkNetwork Offices&DataOffices&Data centers centers ShopsShops 11 034 034 999 1 110 11 122 122 999 1 110

1313 499 499 1414 711 711 13 511 1414 245 245 13 511

54 896 53 850 53 857 5151 400 400 54 896 53 850 53 857

2009/20102009/2010 2010/2011 2010/2011 2011/2012 2011/2012 2012/2013 2012/2013 • managed to decrease our electricity use by almost 2% compared to 2011/2012 • 78,6% to run and maintain our network • 19,7% required to manage our data centres and offices • 1,6% shops • 2012/2013 to decrease the energy needs of our data centres and offices and maintained our network energy use constant 10 Carbon Dioxide Emissions

AnnualAnnual Carbon Carbon DioxideDioxide EmissionsEmissions

2012/20132012/2013 30,930,9

NetworkNetwork Electricity Electricity Consumption Consumption 2011/2012 31,0 2011/2012 31,0 OfficeOffice and and Data Data Center Center ElectricityElectricity Consumption Consumption

RetailRetail Electricity Electricity Consumption Consumption

TravelTravel - - Diesel Diesel Consumption Consumption byby VehiclesVehicles 2010/20112010/2011 30,030,0 TravelTravel- - PetrolPetrol Consumption Consumption byby VehiclesVehicles

NetworkNetwork Diesel Diesel Consumption Consumption 2009/20102009/2010 28,428,4 NetworkNetwork Petrol Petrol Consumption Consumption

00 5 5 10 10 15 15 20 20 25 25 30 30 ThousandThousand tonnestonnes of of carboncarbon dioxidedioxide

2010-2013: our carbon dioxide emissions varied 30-31 thousand tonnes 2012/2013: continued to decrease our carbon dioxide emissions

11 The effects of network modernization on our environmental impact • the greatest cost reductions: EUR 1.53 million • cut costs by further EUR 254000 TheThe effects effects of of thethe networknetwork modernization modernization by installing software designed to onon carbon carbon dioxidedioxide emissions emissions decrease energy use and another 40,0040,00 37,1637,16 EUR 133000 by modernizing our 32,0532,05 30,9630,96 central systems 30,00 30,96 30,89 30,00 30,03 30,96 30,89 30,29 30,03 30,29 • to reduce energy use and

30,96 30,89 30,96 30,89 20,0020,00 emissions helped to decrease our 30,2930,29 30,0330,03 emissions by 25% in 2012/2013 (thousand (thousand tonnes) (thousand (thousand tonnes) Carbon dioxide emissions Carbon dioxide emissions 10,0010,00 7 000 tonnes of carbon dioxide

-- 2009/20102009/2010 2010/2011 2010/2011 2011/2012 2011/2012 2012/2013 2012/2013 equivalent of the average annual TOTALTOTAL (actual) (actual) TOTAL (actual) TOTALTOTAL (BAU, (BAU, 2010/2011) 2010/2011) carbon dioxide emissions of 1 272 Hungarian citizens 12 Waste management

AmountAmount ofof wastewaste createdcreated (t)(t) 2009/20102009/2010 2010/2011 2010/2011 2011/2012 2011/2012 2012/2013 2012/2013 HazardousHazardous wastewaste 3,03,0 0,5 0,5 0,4 0,4 143,4 143,4 BatteriesBatteries3,04 3,04 0,50 0,50 0,39 0,39 143,42 143,42 Non-hazardousNon-hazardous wastewaste *151,8*151,8 *149,1 *149,1 *1426,2 *1426,2 223,9 223,9

HandsetsHandsets6,15 6,15 6,92 6,92 10,47 10,47 6,41 6,41

OtherOther ITIT equipmentsequipments0,09 0,09 0,14 0,14 0,02 0,02 0,00 0,00 TelecommunicationsTelecommunications equipmentsequipments 3,343,34 0,56 0,561 281,5 1 281,559,66 59,66 PaperPaper /AN/A 2,50 2,50 **19,80 **19,80 33,82 33,82 PlasticPlasticN/A N/A 2,36 2,36 N/A N/A 0,20 0,20 CommunalCommunal wastewaste142,17 142,17 136,62 136,62 134,13 134,13 123,84 123,84 TotalTotal*154,8 *154,8 *149,6 *149,6 *1426,6 *1426,6 367,3 367,3

• 0,2% of hazardous waste created by Vodafone was sent to landfills; almost all replaced and scrapped batteries were recycled or reused • 223,9 tonnes of non-hazardous waste was created. 55% of that waste was sent to landfills, 29% was either reused or recycled and 15% is stored on site

13 Vodafone Hungary Foundation Vodafone Hungary Foundation

Established in 2003 – 10 year-long operation

More than EUR 330 million as charitable donation

One of the most admired donors in Hungary

Independent trustees decide about the donations

Received more awards for its profession work

15 Vodafone Hungary Foundation’s focus areas

Vodafone for Women’s Safety FLAGSHIP: Vodafone for Finding Missing People Mobile for Good Hallatlan – Video Sign Language Interpreter Service

Assistance for Local Full-time Angel Programme Communities Vodafone Volunteer Community

Education for the HBLF Romaster Programme Disadvantaged Programme for Complex Instruction

16 13600 – “Adhat Vonal” (Donation Line - NIOK)

• quick and convenient donation system - facilitating the development of donation culture and civil society in Hungary • joint efforts of Vodafone Hungary, and Hungary; the legal framework: NMHH • donations of EUR 0.8 can be made to non-profit organizations by calling the “13600” and entering the code of the beneficiary organization • 2012: 64 non-profit organizations joined • 2012: more than EUR 66000

17 For more information

18 Thank you