MAKEDONSKI TELEKOM AD – SKOPJE Address: Kej 13 Noemvri 6, 1000 Skopje, R. North Macedonia ANNUAL REPORT on the operations of Makedonski Telekom AD - Skopje in 2020 This Annual Report on Operation refers to Makedonski Telekom AD - Skopje (hereinafter referred to as: “MKT”). In 2020, the coronavirus spread globally, and its negative impact gained momentum. Despite the Corona crisis MKT continues to shows positive trend on the revenues side and its main KPI. The total revenues in 2020 compared to the 2019 revenue increase due to higher revenues in the ICT segment and in the fixed segment, coming from the continuing expansion of the customer base. The fixed revenues are higher, driven by the higher IPTV and Broadband revenue, partially offset by the lower fixed voice revenues. In the mobile segment, the positive trend in the postpaid revenues, mobile devices and accessories is netted by the Corona pandemic impact, especially on the prepaid ARPU and Roaming revenues. To sustain the positive performance recorded in 2020, MKT intends to further leverage the integrated Magenta offer, the high network quality and the market position as a premium provider. At the end of 2020, MKT had 221 thousand voice access fixed lines making a 2.4% increase from the end of 2019. The number of total Broadband (BB) subscribers has increased to 191 thousand at the end of 2020, marking a 6.3 % increase from the end of 2019. The number of IPTV customers at the end of 2020 reached 142 thousand customers, marking a 4.5% increase from the end of 2019. The number of Fibre to the Home (FTTH) customers reached 78 thousand at the end of 2020, marking a 19% increase from the end of 2019. MKT had 1,105 thousand mobile subscribers at the end of 2020, compared to 1,220 thousand at the end of 2019. The mobile market penetration in Republic of North Macedonia is 102. As a result of the market saturation, MKT especially focuses on retaining the customers in order to protect the market share. MKT registered customer growth in all three focus segments – postpaid, BB internet and TV customers, keeping the largest TV operator position in North Macedonia (in terms of TV customer base), achieved as of Q2 2019. MAGENTA 1 continued to be MKT’s main product, offering both in the Consumer and in the Business segment. The simplification of the product propositions and the digital customer experience were the main guiding directions in 2020. MKT showed to the society that companies using digital services are less vulnerable to the Corona crisis and managed to successfully implement the communication strategy of bringing digital optimism in people’s daily lives during the doom and gloom of the pandemic. The customer support is shifting towards digital channels, especially via the Telekom app and “My Telekom” on the corporate web site. Strategic focuses for MKT are transformation and digitalization with having Agile setup in its projects. Also, MKT continues to meet the increased demand for connectivity through its network and in order to keep sustainable business and major revenue streams in a very complex telecommunications environment, MKT has continued to massively expand in the fixed network and mobile communications in 2020. Page 1 of 15 Presented below are the available remuneration data for the BoD members of MKT, related to the applicable period of 2020*. a) Data about the remunerations in MKT and in other companies if the respective member is also a member of the management bodies of other companies (salary, salary remunerations, remunerations for membership, bonus, insurances and other rights) Name and Company where the Salary Salary Remunerations Bonus Insurances Other rights surname member is a member of remuneration for membership (applicable the managing body period) Zoran Kitanov Makedonski TelekomAD 0 0 MKD 145,000 0 0 None – Skopje (Non-Executive (net)** member and President of the Board of Directors with active mandat from 15.12.2020 ) Sadula Duraki Makedonski Telekom AD 0 0 MKD 47,000 0 0 None –Skopje (Non-Executive (net)** member and Vice President of the Board of Directors with active mandat from 15.12.2020 ) Andreas Makedonski Telekom AD 0 0 0 0 0 None Maierhofer -Skopje (Non-Executive member of the Board of Directors) T-Mobile Poland This may not This may not This may not be This may not This may not This may not (President of the be disclosed be disclosed disclosed due be disclosed be disclosed be disclosed Management Board of due to due to to applicable due to due to due to T‑Mobile Polska) applicable applicable requirements applicable applicable applicable requirements requirements requirements requirements requirements Karoly Makedonski Telekom AD 0 0 0 0 0 None Schweininger -Skopje (Non-Executive member of the Board of Directors) E2 Zrt. This may not This may not This may not be This may not This may not This may not be disclosed be disclosed disclosed due be disclosed be disclosed be disclosed due to due to to applicable due to due to due to applicable applicable requirements applicable applicable applicable requirements requirements requirements requirements requirements Lubor Zatko Makedonski Telekom AD 0 0 0 0 0 None -Skopje (Non-Executive member of the Board of Directors) Borce Makedonski Telekom AD 0 0 0 0 0 None Siljanoski - Skopje (Non-Executive member of the Board of Directors) Vladimir Makedonski Telekom AD 0 0 0 0 0 None Ivanovski - Skopje (Non-Executive member of the Board of Directors) T-Systems Magyarország This may not This may not This may not be This may not This may not This may not Zrt. be disclosed be disclosed disclosed due be disclosed be disclosed be disclosed due to due to to applicable due to due to due to applicable applicable requirements applicable applicable applicable requirements requirements requirements requirements requirements Nina Makedonski Telekom AD 0 0 MKD 33,000 0 0 None Angelovska - Skopje (Non-Executive (net)** member of the Board of Directors with active mandat from 15.12.2020 ) Page 2 of 15 Macedonian E- 0 0 0 0 0 None Commerce Association Bardul Nasufi Makedonski Telekom AD 0 0 MKD 33,000 0 0 None - Skopje (Non-Executive (net)** member of the Board of Directors with active mandat from 15.12.2020 ) Peter Veil Makedonski Telekom AD 0 0 0 0 0 None - Skopje (Independent member of the Board of Directors) Martin Renner Makedonski Telekom AD 0 0 0 0 0 None - Skopje (Independent member of the Board of Directors) Shkodrane Makedonski Telekom AD 0 0 MKD 33,000 0 0 None Darlishta - Skopje (Independent (net)** member of the Board of Directors active mandat from 15.12.2020 ) Akjif Mediu Makedonski Telekom 0 0 MKD 33,000 0 0 None AD - Skopje (net)** (Independent member of the Board of Directors active mandat from 15.12.2020 ) Nazim Bushi Makedonski 0 0 MKD 310,000 0 0 None TelekomAD – Skopje (monthly (Non-Executive member net)*** and President of the Board of Directors with active mandat until 15.12.2020 ) Sasho Veleski Makedonski Telekom 0 0 MKD 93,000 0 0 None AD –Skopje (Non- (monthly Executive member and net)*** Vice President of the Board of directors with active mandat until 15.12.2020 ) Sasho Makedonski Telekom 0 0 MKD 62,000 0 0 None Simjanovski AD - Skopje (Non- (monthly Executive member of net)*** the Board of Directors with active mandat until 15.12.2020 ) Miroslav Vujic Makedonski Telekom 0 0 MKD 62,000 0 0 None AD - Skopje (Non- (monthly Executive member of net)*** the Board of Directors with active mandat until 15.12.2020) Divna Makedonski Telekom 0 0 MKD 62,000 0 0 None Jovkovska AD -Skopje (monthly Eftimoska (Independent member net)*** of the Board of Directors with active mandat until 15.12.2020) Zamir Makedonski Telekom 0 0 MKD 62,000 0 0 None Mehmed AD -Skopje (monthly (Independent member net)*** of the Board of Directors with active mandat until 15.12.2020) Page 3 of 15 b) Data about the employment if the member has established a labour relation with other employers (name of employer, activity, salary amount, salary remunerations, bonus, insurances and other rights). Name and Name of the Activity of the employer Salary amount Salary Bonus Insurances Other rights surname employer remunerations (applicable period) Nikola Ljushev None None None None None None None Zoran Kitanov KIEM dooel Wholesale trade MKD None None None None Skopje 30,000** Sadula Duraki None None None None None None None Andreas T-Mobile Telecommunications This may not This may not be This may not This may not This may not Maierhofer Poland be disclosed disclosed due be disclosed be disclosed be disclosed due to to applicable due to due to due to applicable requirements applicable applicable applicable requirements requirements requirements requirements Karoly Magyar Telecommunications This may not This may not be This may not This may not This may not Schweininger Telekom be disclosed disclosed due be disclosed be disclosed be disclosed Nyrt. due to to applicable due to due to due to applicable requirements applicable applicable applicable requirements requirements requirements requirements Lubor Zatko Magyar Telecommunications This may not This may not be This may not This may not This may not Telekom be disclosed disclosed due be disclosed be disclosed be disclosed Nyrt. due to to applicable due to due to due to applicable requirements applicable applicable applicable requirements requirements requirements requirements Borce Deutsche Telecommunications This may not This may not be This may not This may not This may not Siljanoski Telekom AG be disclosed disclosed due be disclosed be disclosed be disclosed due to to applicable due to due to due to applicable requirements applicable applicable applicable requirements requirements requirements requirements Vladimir Magyar Telecommunications This may not This may not be This may not This may not This may not Ivanovski Telekom be disclosed disclosed due be disclosed be disclosed be disclosed Nyrt.