Telefónica O2 Germany Company Profile

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1 Telefónica O2 Germany Company Profile

2 Telefónica O 2 Germany, Telefónica rolls out ethical standards across the world O 2 in Germany is today a converged telecommunications operator. This means that our customers have access to a wide range of mobile and fixed products and services, from mobile phones to internet broadband connections. These services have one thing in common: they are enabling a dramatic shift in our society, in the way we are living and communicating. Modern communication solutions offer numerous opportunities, not only within our local communities, but also to help solve the global challenges we face. To give you an example: we are not currently making the most of the possibilities that communication services offer to help fight climate change by avoiding business travel through phone-conferencing services. What s more, we haven t fully got to grips with the huge potential that mobile phones can offer in supporting our teachers and schools to provide our children with the best possible education. These are opportunities for telecommunications providers to be part of the solution and we should continue to explore them; however, I am also aware that we have to face the risks that our products and services bring to our societies. At O 2, we know we have to act responsibly regarding the negative social or ecological effects of our business activities whether that is climate change, children not using our services in the expected and appropriate manner, or our customers fearing we might not handle their personal data responsibly. So, how do we face these issues? We manage these challenges just like all other parts of our business: in a professional, rigorous and sustainable way. In all our business activities, we try to act responsibly and are guided by our company s ethical code our Business Principles. In our Corporate Responsibility activities, we focus on topics where we can really make a difference for society, the environment and for our. We determine the greatest impacts of our business, set stretching targets and measure and report our progress. And we are ambitious: we want to be known as the leading telecommunications operator in Germany; not only for offering good products and the best customer service, but also for acting in the most responsible way. We know that this is not an easy-toachieve target and that we do not get everything right all the time. But we work hard and I know that we will achieve it, because we have that really live our spirit and put our customer at the heart of everything we do. Jaime Smith Basterra Chief Executive Officer Telefónica O 2 Germany

3 Telefónica O 2 in Germany Over 12 million customer accesses 550 points of sale are available for our customers 5,100 Our Body Customers Telefónica O 2 Germany had 12.5 million mobile customers in and around 75,000 Internet customers. Close to 12 million customer calls were answered. More than 550 points of sale are available for our customers. In 2007 we had the following milestones: Launch of the brand Fonic. With O 2 Internet-to-Go the company is offering internet on most mobile phones. This new, innovative portal allows easy navigation, just like on your laptop computer. O 2 founded a privacy committee in Germany, chaired by the data protection office. In addition, a training programme about privacy has been launched to improve employee awareness. More than 60 per cent of the workforce has already completed the new training. Since January 2007, a lawyer has been available for O 2 and external stakeholders in his capacity as an independent ombudsman. He strongly contributes to the transparency and legal compliance across the company. O 2 developed a new training system for all shop in 2007 to ensure even better customer services. Within 24 months, three qualification levels are offered and the programme is concluded by a final examination. Our Soul Digital Inclusion By the end of 2007, we had more than 6.2 million prepaid customers. SCHOLA-21 is a free learning platform to improve project collaboration in schools. The Internet-based platform from the German Children and Youth Foundation has been up and running in German and English since 2001 and is so far the only system of its kind in Europe. As well as providing teaching concepts and facilitating learning processes, SCHOLA-21 provides contacts at reference schools and trains teaching personnel in virtual class rooms and actual workshops. Since the cooperation with O 2 of the project-learning platform in 2003, almost 19,000 pupils and teachers from over 3,100 schools in Germany and almost 3,000 international users have taken part in the award-winning scheme. We are certified to the environmental standard ISO: per cent of our offices consumption is generated by renewable energy sources Some 19,000 students and teachers have participated in the SCHOLA-21 educational platform Child Protection Since September 2007, O 2 has offered a special system to protect children and adolescents. The youth protection system allows parents the opportunity to ban harmful content on their children s mobile phones. Following an independent check carried out by the FSM (Association of Voluntary Self-Control of the Multimedia Services), Telefónica O 2 Germany also became the first German mobile network operator who is permitted to provide its age verification to third parties. Since 2004, Telefónica O 2 Germany has supported the production of a learning software programme called "Mobile Phone Course with Polly and Fred". This teaches 5-to-12-year-olds how to use a mobile phone responsibly. For the last few years, we have also paid for the state licenses required for its use in German schools in several federal states.

4 CUSTOMER ACCESSES (millions) REVENUES (millions of euros) ,404 3, Network The effectiveness of our GSM mobile networks has been recorded at per cent. Telefónica O 2 Germany offers mobile telephone coverage that provides some per cent of the population with service. We are investing 3.5 billion in our mobile and fixed-line networks over the next three years. O 2 is putting EDGE (Enhanced Data Rates for GSM Evolution) into place in rural areas. EDGE will be available in about 40 per cent of the O 2 network in Employees We have 5,100 at Telefónica O 2 Germany. 79 per cent of our people said they were proud to work for the company (Reflect O score). More than 4 million investment for employee advanced training. 410 home tele-working places. Since April 2007, Telefónica O 2 Germany has been offering all permanent the chance of an international assignment within the Telefónica Group. Better information for parents: Telefónica O 2 Germany launched prominent and transparent communications about youth media protection information in printed and online form during In October 2007, we signed up to a voluntary commitment to youth protection in the mobile communications industry. The code was established by Government bodies, the media watchdog, youth protection specialists, representatives from mobile communications and internet providers and parents and teachers associations. For more information Environment Almost two thirds of our energy is supplied from green electricity Since January 2007, a new contract with E.ON Bayern has provided additional energy supply from renewable sources. The overall proportion of green electricity used by Telefónica O 2 Germany increased 59 per cent by the end of We are certified to the environmental standard ISO: per cent of the network s base stations (antennas) use energy generated exclusively by renewable sources (hydroelectric). 17 per cent of our offices consumption is generated by renewable energy sources. By the end of 2007, Telefónica O 2 Germany had installed almost 2,000 energy-saving transmission units at new antenna sites. This has led to savings of almost 300,000 kilowatt hours. Moreover, Telefónica O 2 Germany uses fuel cells instead of batteries and battery refrigerators instead of air conditioning systems at several sites. Handset recycling programme: Telefónica O 2 Germany donates the proceeds from returned mobile phones to the charitable organisation World Wide Fund For Nature (WWF), thereby supporting the large-scale nature conservation project Central Elbe. The aims of this project are conservation and development of hardwood and softwood riverside forests, and support for endangered animal and plant species in Germany. Telefónica O 2 Germany must be more cost-aware if it is to ensure long-term success in the German market. With this in mind, O 2 s smartidee team launched the Save & Win initiative, calling for to pinpoint areas of potential saving in the company. The suggestions were to involve room setup/interior décor, office equipment, use of energy, or day-to-day communication. 40 per cent of took part in the initiative in 2007, submitting a total of 6,776 ideas. Launch of the environmental procurement policy which aims to minimise the negative effects of the activities of Telefónica O 2 Germany and its suppliers on the environment. For more information

5 SOCIETY: O 2 in dialogue with communities Stakeholder dialogue Corporate Responsibility is at the centre of O 2 s thinking and acting. To answer socially relevant questions and to fulfil the expectations of all kinds of stakeholders, Telefónica O 2 Germany enters into discussion with the public through various channels. Economics Telefónica s economic activity equates to 0.1 per cent of Germany s GDP. Telefónica O 2 Germany paid close to 30 million in taxes. Over the course of 2007, Telefónica invested 850 million in Germany. O 2 launches an open dialogue platform on the internet. Together with the federal initiative Unternehmen: Partner der Jugend (UPJ) e.v., Telefónica O 2 Germany developed the online dialogue platform in May Companies, organisations and the public sector can post issues on this platform which will be openly discussed for a certain period. So far, the focus has been on: Mobile kids do children need mobile phones?, and CO 2 neutrality active environmental protection or a modern-day version of selling our sins?. At the end of the discussion period, the contributions are analysed and presented at a public event and discussed in more detail with experts and key stakeholders. In 2007, Telefónica O 2 Germany was pleased to collaborate with close to 2,200 German suppliers. We spent more than 1.5 billion buying products and services we needed in For more information Community The total cash donations from Telefónica O 2 Germany in 2007 were 525,697. Around 160 in Germany have participated in corporate volunteering initiatives. Since September 2007, Telefónica O 2 Germany has supported the German Association for the Protection of Children, National Association Bavaria (Deutscher Kinderschutzbund Landesverband Bayern e.v.). Together with the European initiative Klicksafe, the special module entitled Media skills improves media awareness amongst parents and teachers and helps to raise the profile of media education. As a result, the Strong Parents Strong Children course which was already established by the Society was extended to include a module on media skills. Collaboration with the Institute for Media Research and Media Education (JFF): Media expertise for the future - The collaboration between Telefónica O 2 Germany and the Munich - based Institute for Media Research and Media Education (JFF) has been ongoing since Together we implement mobile-phone projects with young people throughout Germany, as well as information evenings for educators and parents and the mobile-phone video competition Ohrenblick mal!. For more information

6 Telefónica O 2 Germany 2007 Over 12 million customer accesses GSM network, per cent effective We are certified to the environmental standard ISO: per cent of our offices consumption is generated by renewable energy sources Over 5,000 Telefónica s economic activity equates to 0.1 per cent of Germany s GDP Some 19,000 students and teachers have participated in the SCHOLA-21 educational platform We signed up to a voluntary commitment to youth protection in the mobile communications industry Telefónica in Europe million customers Over 35.7 billion in revenues In 2007, total community investment donations by Telefónica in Europe were 33.3 million During the year over 6,000 volunteered their time to social causes in Europe Over 82,000 Over 14,000 suppliers in Europe ATAM* has over 60,000 members and has received over 13.9 million in contributions to date 2.5 billion spent in 2007 on technological innovation in Europe Telefónica in the World million customers Over 56.4 billion in revenues Nearly 90 million on social and cultural projects worldwide Some 19,000 are Telefónica Volunteers Over 250,000 Over 4.35 billion invested in Research and Development 36,000 trained on our Business Principles More than 93,000 children saved from child labour and put in school in Latin America thanks to the Proniño programme * ATAM stands for Telefónica s association to help support people with disabilities. We want to enhance people's lives and the performance of businesses as well as the progress of the communities where we operate, by delivering innovative services based on information and communications technologies.

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