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4.1.4.

Energy Efficiency and Carbon Dioxide Emissions

The increase in the number and type of services, the

growth in consumer traffic and the expansion of coverage

areprocesses relatedtotheconstructionandmaintenance

of infrastructure that consumes significant amounts of

energy. More than half of the energy needed for our users

to take advantage of mobile or fixed services is consumed

inournetworkanddata centres. Our constant striving is to

increase their efficiency and achieve optimal consumption

in relation to the growth of our business.

In 2018, the energy consumption for our mobile network

grew to 42 GWh, and its share in total electricity

consumption increased to 34%. Compared to the past

two years, the mobile network represented 25% of our

electricity consumption in 2016 and 28% in 2017. The

growth trend is fullyexpected in light of increase ofmobile

service consumption and speed and reliability quality that

we support. The electricity consumption of the mobile

network is mainly limited to DTX and power control

functions that are enabled for 100% of the network.

Another significant consumer of electricity is cooling. In

addition to the standard technical solution, such as free

cooling systems, we allow higher operating temperatures

for telecommunication equipment and only place the

batteries in a cooling container.

Main consumer of electricity remains the fixed network,

which in2018registeredaconsumptionof74GWh.Wepay

special attention to optimizations in this type of network.

Although last year our consumer reach continued to

increase, wemanaged to reduce consumption by 1.4 GWh.

During the year, we made a number of improvements to

fixed telephony. We transfer subscribers to more energy-

efficient facilities based on NGN technology and take out

TDM technology from use. This allowed us to close 17 old-

style telephone exchanges in 2018.

The total energy consumption of VIVACOM in 2018 in the

form of electricity, heat and fuel is 150.3 GWh. Compared

to 2017, there was a total increase of 4%. For VIVACOM

investments in energy efficiency are an integral part of

the business. The solutions are not self-directed, but are

based on a detailed analysis of the return on each case

and technology.

In 2018, the energy consumed byVIVACOMgenerates 69.1

thousand tons of carbon emissions (direct and indirect),

a 6% increase from 2017. If we add NURTS energy

consumption, the total carbon footprint is 80.9 thousand

tons.

Over the past few years, we have been taking steps to

seek alternative energy sources through tests for power

supply base stations with RES. Several of our sites have

photovoltaic cells installed, but so far the results do not

bring the required efficiency. However, we continue our

2016

500 000

0

1 000 000

1 500 000

2 000 000

2017

2018

Gasoline consumption

Diesel consumption

LPG consumption

4.1.5.

Circular Economy – Waste Management

As a large business, with a range of services and

infrastructure practically all across the country,

VIVACOM has the important task of optimally

managing the waste generated by its operations.

All our operating points have a significant amount

of electronic equipment that has a certain life cycle

and its end should be adequately planned. We strive

to minimize the amount of waste to be deposited of

and maximize the amount of equipment receiving a

second life via reuse or recycling.

In 2018, 278 tonnes of telecom equipment was taken

out of use and handed over for recycling. In addition,

we re-used 181,197 items or 41% of all equipment we

provide to end users.

Our fixed network also undergoes regular updates, which

in 2018 generated 561 tonnes of cables sent for recycling.

We continue to make efforts to reduce paper invoices

issued and encourage our customers to switch to

electronic ones. The issue of paper invoices is related

to paper consumption, document transport to address,

human resource for delivery, all of which can be

replaced by an electronic message. Every year, more

and more subscribers are aware of the importance of

such optimization and switch to an electronic invoice.

In 2018, there were 814,624 or 46% of all invoices

issued. As a result, our consumption of copier paper

decreases for another year, reaching 50,457 packages

for 2018.

Consumption of paper and share of electronic invoices

100 000

90 000

80 000

70 000

60 000

50 000

40 000

30 000

20 000

10 000

0

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

Copy paper

Share of

electronic

invoices

2013

2014

2015

2016

2017

2018

ANNUALREPORT

2018

INTEGRATED

4. PERFORMANCE

4.1. Effective

efforts to develop projects and seek opportunities to

integrate such solutions.

To be as close to our customers as possible and to provide

them with the expected high level of service, our sales

representatives and technical teams travel daily between

different locations. Our fleet consists of 1,401 vehicles,

mostly diesel, gasoline, several LPG and 31 hybrids from

the last year, 20more than the previous one. An important

task is to optimize the travels and routes of our employees.

This allows us to reduce fuel consumption and air pollutant

emissions, especially in an urban environment where it is

most needed. Especially for the management of the cars

used by the technical teams, we use a software system to

maximize the timetable for visits to end-users and choose

the best routes for their completion. This saves resources

and reduces the carbon footprint of the company.

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