Telekom Austria AG (TA1.F) Earnings Call Transcript & Summary

Ladies and gentlemen, I would like to welcome you to today's Annual General Meeting of Telekom Austria and open the meeting. For technical reasons -- this is a Friday in between one holiday, one statutory holiday and the weekend. We are all the more pleased that you have taken the time to listen to our broadcast on the Internet. Well, at least the weather is not too good, so we can focus on the meeting. Due to the ongoing COVID-19 pandemic, we regret that we're unable to welcome you personally to our corporate headquarters. As in the previous year, we will hold a virtual Annual General Meeting in accordance with the corporate law, COVID-19 Act, and the meeting will be broadcast in its entirety on the Internet. I would, therefore, like to welcome our shareholders and all interested parties, who are following this AGM via the Internet. Here at the company's headquarters, I welcome the gentlemen of the Management Board, our 4 special proxies, whom I will introduce personally in a minute; Dr. Nauer, notary public who will monitor the voting process, the adoption of resolutions and the minutes; and our technical staff. The members of the Supervisory Board and the auditors are following the Annual General Meeting via the live stream. Let me briefly summarize the formal characteristics of our virtual AGM. The Annual General Meeting will be broadcast in full on the Internet in an audiovisual format and in real time. You can now see the 2 links on your screen. Real-time transmission gives shareholders the opportunity to follow the meeting and the Q&A session as if they were present at the AGM. If, contrary to expectations, the broadcast should fail completely, we will interrupt the meeting and resume it only when the live stream has been restored. Regarding the right to information and to speak, please note the following. [Operator Instructions] Voting rights, the right to propose resolutions and the right to object may only be exercised by one of the 4 special proxies. Our 4 special proxies today are Mr. Beckermann of the IVA, the Austrian Shareholders Association; Dr. Christoph Nauer, attorney at law; Mr. Thomas Niss from Own360; and Dr. Sascha Schulz, attorney at law for that matter. In the run-up to the Annual General Meeting, the shareholders were able to authorize and issue instructions to one of the proxies. However, shareholders also have the opportunity to issue new instructions or amend instructions already issued. To do so, please send a simple e-mail to the e-mail address of your proxy to which you also submitted the proxy authorization form. You can see the e-mail addresses on your screen. For further details, please refer to the participation information that has been disclosed on the company's website. Before we move on to the agenda, I would like to note that the invitation was published in the newspaper Wiener Zeitung of 9th of April 2021 and was disseminated electronically via euro adhoc and IHS Markit. All required documents have been available on the website since April 22, 2021. I state that there are no proposals for additions or amendments to the agenda, which have been submitted. Therefore, we will also -- only be able to discuss and decide on the agenda items today that have been announced in the invitation. We will first present the reports and proposed resolutions on all agenda items. Afterwards, I will ask the special proxies whether any motions for resolutions have been submitted. After a brief break, a 10-minute break or so, we will then hold the Q&A portion on all agenda items and answer any questions received before or during the Annual General Meeting. At the end of the Q&A session, I will again ask for shareholder motions or amendments to motions before we will then vote en bloc on all motions for resolutions. This was a summary of the proceedings of today's virtual AGM. We will now move on to the agenda. Agenda item 1, presentation of the adopted financial statements and the management report as well as the consolidated financial statements, including the consolidated management report and the consolidated corporate governance report, the consolidated nonfinancial report, the proposal for the appropriation of the net profit and the Supervisory Board report for the fiscal year 2020. All these reports have been available on the website of the company as documents for the Annual General Meeting since publication of the annual results specifically since March 19, 2021. I assume that it will not be necessary to read out those documents. The annual financial statements and the consolidated financial statements were audited by Ernst & Young Wirtschaftsprüfungsgesellschaft m.b.H and received an unqualified audit opinion. The management report and the group management report are consistent with the annual financial statements and the consolidated financial statements. I would now like to take this opportunity to inform you briefly about the work of the Supervisory Board. The Supervisory Board held a total of 6 supervisory board meetings, including 1 strategy meeting, in the reporting year. The focus areas in the meetings were: the strategic alignment of the group, in particular, also from an ESG and sustainability perspective, the planned investment and financing decisions, topics relating to the acquisition of licenses in Austria, cybersecurity and regulation, and the approval of the 2021 budget in December 2020, following an in-depth discussion of the strategy in the second half of the year. The COVID crisis and its impact on Telekom Austria were, of course, a topic of discussion at all of last year's meetings. Thanks to the great commitment and motivation of all employees, Telekom Austria succeeded in ensuring the provision of communication services, which have been essential during the crisis, especially for office staff working from home or for students, pupils when schools were closed. And all of this has allowed us to connect with the outside world. Telekom Austria was able to achieve solid results in 2020 and demonstrate the resilience of its business model during the crisis. The satisfactory operating and financial performance shows that the strategy adopted is successful but also that the company has adapted to the crisis in a timely and effective manner. I will report on the remuneration of the Management Board under agenda item 8, which includes the remuneration award, which is about the remuneration of the Management Board and the Supervisory Board. That concludes my report on the work and the topics of the Supervisory Board in the financial year 2020. The Management Board will now report to you in detail on the 2020 financial year. I would first like to ask the company's CEO, Thomas Arnoldner, to take the floor.

Ladies and gentlemen, shareholders and of course, customers, as you know, as we've just heard, the business year 2020 was a very challenging year for us. The financial and operating performance of the company was, of course, heavily influenced by the COVID-19 pandemic. At the beginning of the crisis, it was our topmost priority to ensure the good health of our employees and particularly to maintain the operating activities of the company and to transfer these to the home office, to remote, almost overnight. We're very happy that we managed to do this in a seamless manner. Of course, we saw an unprecedented growth in voice and data traffic, but our networks benefited significantly from the investments in the past, and we're able to handle this enormous growth in volume. For that reason, we were happy to register excellent business performance into 2020. This has confirmed the resilience of our business model. Although, of course, we had to do with some negative developments. Primarily, here is roaming and this accounted for 40% of EBITDA. And of course, also negative FX in Belarus. But still, we were able to increase EBITDA all the same by 1%. The pandemic highlighted the relevance of digital infrastructure, particularly against the backdrop of the pandemic. We saw increased demand for bandwidth and transfer capacity, remote working, of course, home schooling, e-governance, video conferencing and many other services. For us, it's not just important to what we do but how we do it. So for that reason, we have begun to focus on ESG, economic, social and corporate governance. This has become a centerpiece of our activities. ESG has become an integrated component of our corporate strategy. As a strategy enabler, we have set very specific goals and objectives for us in this context, and we'll touch on those later. Of course, 2020 was heavily impacted by the 5Giga network. I will touch on that later. This has the largest fiber optic network, and this is coupled with the 5G network. As you can imagine, we were able to roll -- to complete the 5G frequency in September of last year. After the previous successful action, we were able to add 21 megahertz (sic) [ 2100 megahertz ] and 1500 megahertz after 3500. For this reason, we were able to bolster the capacity of our network in this way. Siegfried Mayrhofer will be going into detail on the financial results, but allow me here just to touch on the highlights very briefly. The business figures underscore the resilience of our business model. We remained stable in many areas, and we were able to compensate for significant losses from roaming and foreign exchange. EBITDA, as I said, rose by 1%. But of course, excluding FX and one-off effects of roaming, EBITDA would have even grown by 3.5%. We had a very solid operating performance. And you see this in the net result. Here, we saw an increase of almost 19% to EUR 388.8 million. In terms of customers, we had an increase in mobile postpaid by 5.1% in almost all of our markets with the exception of Bulgaria. We managed to post significant growth. This, of course, thanks to significant demand for mobile broadband solutions. All in all, we also saw an increase in demand for other products for broadband Internet at home in this segment. This provides mobile and stationary Internet solutions. And we saw an increase of 4.4% in 2020. As a direct reaction to the looming crisis, so we responded very quickly. We cut CapEx and OpEx. And we were able to ensure flexible financing. We carried out CapEx reductions very consistently. So we saw an increase in free cash flow of -- from -- which is reflected in our free cash flow of 400 -- EUR 504 million. But free cash flows also bolstered thanks to our excellent operating performance. When you compare us peer-to-peer, we are very much at the top of the ranking. So here, you can see the comparisons in terms of revenue, EBITDA and net debt. Here, we rank amongst the top performers in our industry. And if you look to Germany, of course, you can see the considerable growth emanated from U.S. business. So compared to our peers, we are definitely able to keep up. My colleague, Siegfried Mayrhofer will go into these details a bit later. Our strategy and our vision empowering digital life has proven their worth in this very challenging environment. Our strategy has shown us that we're definitely headed in the right direction. Our strategy 2020 was even fine-tuned even more, but the core of our strategy has not changed. As you can see, this has only underpinned our conviction that we're headed in the right direction. So you can see that we aimed at boosting core growth, switching the assets, so to speak. We also increased the number of products per customer with multi-play and data-driven marketing and sales. But at the same time, we were able to open up new areas of growth, cloud services, ICT, IoT solutions or platform business, just to name a few. But at the same time, we are looking at continuous improvement in our structures. We are making decisions regarding investments, and we are examining all of those decisions on an ongoing basis. Of course, digital transformation plays an important role within the company. We are trying to execute radical simplification, and we're looking at big data analytics and artificial intelligence. As I've just touched on, we have strategy enablers, and these have become a core pillar of our corporate strategy. ESG, of course, is very important. I will touch on that in just a moment. We were able to try this in our strategy for the first time, and this plays a decisive role. Our employees naturally play a very key role in our corporate culture, and they are a very key component of this strategy enabler. Day to day impact is the third aspect of our vision. This illustrates how we are transforming our company to focus increasingly on data and the impact that it has. So I think all of us have experienced how digitalization has -- is now here to stay in all areas of our lives, and this is the main focus of us, and we are in the midst of this focus as where we've seen a considerable acceleration of the digitalization. We have undergone boot camp, if you will, in the last several months in this acceleration process. We have improved our business processes in all areas. Also consider the considerable increase in home office solutions and video conferencing, also the cutdown on business trips, the increased demand for increased bandwidth, particularly in the fixed line segment. Education is somewhere where we are also very active with increased opportunities in e-learning. We've seen a very clear trend toward cloud services as well. We have to say that this has also dovetailed with a considerable increase in the demand for cybersecurity solutions, particularly as we've seen that the cybersecurity is a major trend throughout the world. This has a focus on securing our own networks but as a provider of comprehensive cybersecurity solutions. We've seen a growth in health solution with telemedicine, amongst others. We have seen a considerably increased penetration of e-commerce solutions and in entertainment. We have witnessed a strong increase in traffic there. The digital infrastructure is a key component of our activities. In the last several years, we have advanced and progressed in our infrastructure. We have developed the A1 5Giganet. This is made up of the largest fiber optic networks and the fastest 5G network. On the 5G side, we are looking at 1,500 5G stations. This is the status of the rollout right now. We are providing 5G with 42% of the population, and we are going to provide a full network coverage throughout Austria by the end of this year and particularly by the end of 2023 at the latest. 95% of our municipalities have a fiber optic point. This doesn't mean the fiber optic goes to the home, but we have a fiber optic network to the municipality. This is a very important prerequisite for the further rollout of the 5G network. The fiber optic network covers about 62,000 kilometers throughout Austria. As I said, this is the -- by far, the largest fiber optic network in the country. And this illustrates the EUR 450 million in investments that we make every year in the infrastructure in Austria. Our data centers are very important. We have 12,000 square meters of area in our data centers. We are one of the largest data center service providers in the country. It's not just important, as I said, what we do, but how we do things. Sustainability, ESG, are very important to us. We are shouldering responsibility ecologically and socially, we want to focus on resource-saving ways of working and living. We have ESG, as I said. We've included this as a strategy enabler, and this has become a central pillar in our corporate strategy. So for that reason, I think we have very clearly defined ambitious goals. We have 3 pillars of ESG. Ecology -- the environment. We are looking to reduce CO2 emissions to net zero by 2030, and we want to increase energy efficiency by 80%. This is particularly important, particularly when you consider the output variable of data traffic, and we've seen exponential growth year-on-year. And at the same time, we are exerting significant efforts to reduce the energy required or linked to CO2 emissions. So you can imagine, this is not an easy task. Of course, circular economy is very important, cellphone recycling or the recycling of other devices. When it comes to social issues, this is a main issue for us as well, particularly the challenging side effects of the technological developments that we represent, that we are -- the progress we are -- advancing digital education is something that is important to point out. And we're talking about the younger generation as well. They are faced with a number of challenges in this area. And on the governance side, diversity, equity, inclusion are extremely central to us. We want to maintain our best practice systems when it comes to compliance with compliance management systems that are externally certified. So I am convinced that digitalization will make up the lion's share of the solution to ensure a sustainable future. The day before yesterday, we noted this at a press conference. Particularly in our cooperation with [ Vanover Institute ], an eco institute, digital Solutions can help us reduce net CO2 emissions. We are also taking a number of other measures in house and in our portfolio. Here, you can see a number of examples of this. Electricity is one of the most important component here, and this is -- our goal is to generate energy from renewable resources. Mobile base stations are to be retrofitted -- to be powered by renewable energy and to move away from fossil fuels. Several hundred of -- around 100 of these base stations will be retrofitted to be solar and wind energy operated by the end of the year. We also have climate friendly solutions. You can see this in our product portfolio. On the right-hand side, you see a number of examples of this. A1 Charge App, this provides you with easy access to e-charging stations in Austria. We have over 1,600 such stations in Austria. We have Wallbox solutions for private customers. We also provide charging solutions at home. SolMate, this is a very innovative solution to integrate solar installations in household systems. We also are focusing on increasing efficiency with modern solutions. This helps us to become more efficient in production, logistics, fleet management, in agricultural and in smart city applications and in many other areas. As I've already mentioned, digital education is extremely important to us. We're focusing increasingly on the next generation, on the children and adolescents. We are -- we know that they are facing many challenging issues, cyber crime, hate speech, cyber mobbing, cyber bullying, just to name a few. We need to make sure that these technologies are being used in a responsible manner. Just to touch briefly on our employees who, without a doubt, are our most important asset. We are extremely proud of how we have managed to navigate this crisis together. And here, I would like to take this opportunity to express my gratitude to our employees right now. We have undertaken a number of measures to respond to the ever-changing framework conditions in the crisis. And generally, here, you see 3 main areas: diversity, equity and inclusion. We know that diverse teams are more successful on average. And we are trying to promote diversity by implementing [indiscernible] measures in management teams and trainings such as unconscious bias initiatives. We take thousands of decisions every single day and many of us have unconscious biases that somehow come through. So it's important to make these unconscious biases invisible and to increase the diversity in our every day lives. So we have held the training seminars focusing on that issue. We've also focused on equity and inclusion in order to provide people with other needs with the support that they need to ensure equal opportunity. Agility, in the company, we have over 100 agile teams in the company. They are cross-functional. They have a focus on agility in leadership, in management methods. We also have agile coaches in our company that we are trying to increase. We are looking at the way we organize our work and our work processes. We want to be closer to our customers. We want to respond more quickly to achieve an improved result, particularly against the backdrop of changing work conditions with the pandemic. We have also introduced A1 Ways of Working. COVID-19 has been an accelerant for new ways of working home office. Of course, we have undertaken a number of measures. In addition to that, to prepare our employees and our managers for these new ways of working, for example, a New Work Festival that we held in Austria over a period of 2 weeks, of course, virtually. So, so much for that. And now I would like to hand off to Siegfried Mayrhofer for our business results.

Thank you very much, Thomas. As previously mentioned, the business year 2020 was heavily impacted by the pandemic. Revenue from services remained largely stable. Although as a result of the pandemic, all telecommunications companies suffered significant roaming losses. Also, the Belarusian ruble's depreciation affected us massively as well. But there were other developments during the pandemic. We also had a significant demand, very robust demand, in fact, for broadband solutions. Connectivity and solution business during the pandemic was an excellent. These 2 developments were able to help us offset the effects felt from roaming and foreign currency from Belarus. Together with a very strong focus on operating efficiency, we were able to increase EBITDA by 1%. This is, in operating terms, without the one-off effects and foreign exchange effects. But aside from that, we would have increased EBITDA about 3.5%. This also includes a 4% decrease from roaming. Throughout 2020, we saw developments in Austria and international business. We saw no positive contribution to our overall results. This internationally is due to the currency developments in Belarus. But in operating terms, our international segments grew. Investments fell by 26%. We had CapEx cuts as a precautionary measure. Particularly, this was as a result of the pandemic. And in 2020, we are planning to come back to our original investment level of EUR 800 million. Here, we see the increases in free cash flow as well. We had an operative increase in free cash flow of 8%. Here, let me look at Austria. We had excellent demand for mobile WiFi routers and upgrades for greater bandwidth. We were able to increase the number of contract subscribers for mobile by 1.7%, and also Internet at home rose by 1.7% as well. Revenues in Austria were rather stable compared to the previous year. We had a slight decrease in sales of devices and handsets. We had positive one-off effects compared to 2019. All in all, service revenues remained stable despite significant roaming losses. During the pandemic, we were able to increase our efficiency and this helped us to bolster EBITDA by 1%. Now I'd like to come to the international business segment. All in all, revenue remained stable. We also had a loss in roaming in all markets. As also mentioned, we had considerably negative effects from foreign currency effects stemming from Belarus. To offset these negative effects in the international business segment, we had very good performance in Internet. And the EBITDA dropped by 0.5% slightly. This was able to offset, but not completely, the other losses we have, for instance, roaming and foreign currency effects. The negative currency effects over 2020 were EUR 82 million and you can see the effects that we have on the EBITDA and revenues. But Bulgaria and Serbia had good significant performance. We had an operative increase in our international segment of 4%. Despite the pandemic, we had excellent success in our financial strategy. We're able to increase the free cash flow. We were able to reduce our net debt and increase equity ratio and also remained stable with our international ratings from Moody's and S&P. The leverage ratio was 1.7 at the end of 2020 with -- accompanied by other very solid figures. We had a liquidity reserve of EUR 1.1 billion. This is due to available lines of credit. Yes, I would like to hand off to Thomas Arnoldner once again. He will touch on the performance of the Telekom Austria shares and share prices.

I think the picture says it all. Last year, we began the stock market year quite commonly, but of course, the pandemic broke out, changing everything in its wake. So you can see the plummeting in the share prices. We were, of course, not spared that. We saw overall decrease of 13% and ending up at EUR 6.33. Here, you can see ATX and other areas. We had a decrease of 12.8%. The performance of the telco sector came to minus 16%. And here, we were able to even exceed the performance in the sector overall. So we were in line with the ATX. Currently, right now, we're at EUR 7.1. So since the beginning of the year, we have managed to increase this by over 10%. And this is thanks to the positive mood on the capital markets. We look at EUR 7.53. This is thanks to our analysts. And we have been on the ATX Prime index since March of this year. The Management Board, according to Austrian norms, has to report on the amount of treasury shares. The company last year had no transactions in treasury shares to report. The country as of today has 414 -- 415,195 treasury shares. This is 0.162% of the equity share of [ fully ] over EUR 905,000. These shares were traded of EUR 7 million, were acquired slightly over -- a price of slightly over EUR 7 million. So as an outlook of 2021. Here, you can see the adjusted expectations for 2020. You can see how we began 2020 with a forecast of growth of about 1% to 2% in revenues. As the pandemic broke out, we had to revise these figures. And back then, we were expecting a decline in revenues of minus 2%. But as you heard, we had a very stable performance. So we had a much better performance than we originally anticipated and feared. We were able even to increase EBITDA by 1%. So this was a much better performance than we had expected 1 year ago. So for this year, as of today, we are expecting revenues to grow by about 1% and an expansion of our EBITDA margin. Regarding CapEx, as we've touched on many times already, we were originally forecasting EUR 770 million. We executed our CapEx strategy very consistently, and we achieved a CapEx figure of EUR 586 million. And this year, we are anticipating CapEx to come to about EUR 800 million, excluding spectrum, particularly excluding 5G rollout and fiber optic rollout. This year already, we have already had successful auctions in Slovenia and Bulgaria. So we assume that the market development for -- that we will be able to continue the developments from 2020. Convergent solutions will be a focus. We are facing intensive competition on mobile -- the mobile network in Austria and the Eastern European markets. We are expecting a very strong focus on the higher customer segment and broadband solutions -- mobile broadband solutions. Other solutions, of course, will require a -- we'll see increased demand for bandwidth solution, and connectivity will also continue to be a main focus of our company going forward. So to conclude and to sum up, I would like to stretch -- to stress one more time that empowering digital life is more relevant than ever. Our business model provides the foundation for this rapid growth and changes in society and in our industry. We need to employ these and implement these intelligently. We have a very strong market position. And this year, we've also carried out a rebranding. We concluded our rebranding project. The last market was Serbia. We were able to rebrand that as A1 and introduce the A1 brand in that country. This uniform brand presence is very important in our footprint. We are known for high-quality customer service and network quality and network performance. This is a very important foundation in our footprint, and we will be able to build on this going forward. So we will continue to expect ongoing high levels of demand for data bandwidth, ICT solutions. So we are reliable and established partners for retail, for business, for public institutions, and we are providing these services to a broad spectrum of customers. We are going to be focusing on ICT solutions, Internet of Things and of course, cybersecurity. As I mentioned at the beginning of my comments, it's not about what we do, but how we do it. This is very important. We are focusing on a sustainable approach. We want to shoulder responsibility for society, for the environment and for the people that live in it. This is very important in our ESG strategy. We've been able to implement this and make progress on this in a consistent manner with specific goals. And for that reason, we are upholding where -- our sustainable development policy with a solid balance sheet structure and this very strong liquidity position, as Mr. Mayrhofer touched on. This is an excellent foundation for future growth. In 2016, we had a minimum dividend of EUR 0.20, and it has been growing hand in hand with the growing free cash flow. So for 2020, this is at least a proposal, we have EUR 0.25 dividend. I think that this is a very solid dividend policy, reflects our very solid balance structure as arising from our consistent growth policies. And this illustrates how we have prepared the way for ongoing future growth. Thank you very much for your attention. And now I'd like to hand off to our chairwoman. Once again, thank you.

Thank you very much. At this point, I would like to thank the Management Board and once again, thank you very much to our employees for their outstanding commitment and performance in 2020, a very tough year, indeed. I would now like to read out the proposed resolutions for all items on the agenda. Agenda item 2, resolution on the appropriation of the net profit. The annual financial statements show a net profit of EUR 388,824,000. The Management Board and the Supervisory Board proposed that -- an amount of EUR 0.25 per eligible no par value share. This is a total of EUR 166,021,210.25 be distributed as a dividend from the net profit and that the remaining amount of EUR 222,802,789.75 be carried forward to new account. The dividend will be paid on May 25, 2021. Agenda item 3, resolution on the discharge of the members of the Management Board for the fiscal year 2020. The Management Board and the Supervisory Board propose to grant discharge to the members of the Management Board for the fiscal year 2020. Agenda item 4, resolution on the discharge of the members of the Supervisory Board for the fiscal year 2020. The Management Board and the Supervisory Board propose to grant discharge to the members of the Supervisory Board for the fiscal year 2020. Agenda item 5, resolution on the compensation for the members of the Supervisory Board for the fiscal year 2020. The Management Board and the Supervisory Board propose that the following remuneration is to be granted unchanged versus the previous year to the elected members of the Supervisory Board for the 2020 financial year. For the Chair, EUR 40,000. For the Deputy Chairman, EUR 30,000. For every other Supervisory Board member, EUR 20,000. For the chair of a Committee, EUR 12,000. For every other committee member, EUR 10,000. The remuneration for committee members is limited to 1 committee mandate. Accordingly, committee members are only entitled to remuneration once if -- even if they belong to several committees. The fixed attendance fee of EUR 400 is to be granted for 2020 and until further notice for each member of the Supervisory Board for each of the meetings of the Supervisory Board or committee meetings which member attends. I would like to add that the staff council representatives on the Supervisory Board perform their function on an honorary basis. They do not receive Supervisory Board remuneration, only attendance fees. Agenda item 6, elections to the Supervisory Board. At the end of today's Annual General Meeting, the mandates of Dr. Peter Kollmann and Dr. Peter Hagen will expire and these are now to be extended. According to the Articles of Association of Telekom Austria AG, the Supervisory Board consists of up to 10 members who are to be elected by the AGM. With the extension of the 2 mandates, the number remains at 10. Based on a separation resolution taken by the Supervisory Board, the shareholder and the employee representative sites have to fulfill gender quota separately. The gender quota continues to be made. The Supervisory Board, therefore, proposes to elect to the Supervisory Board with effect from the end of this AGM, one, Dr. Peter F. Kollmann; and two, Dr. Peter Hagen, both of them until the end of the Annual General Meeting that resolves on the discharge for the fiscal year 2023. We will vote separately on each position to be filled. The candidates have submitted declarations pursuant to Section 87 Paragraph 2 of the Stock Corporation Act, which have been published on the website together with their CVs. On behalf of both candidates, I would like to say that if they are reelected, they would like to thank you for the trust you have placed in them and will gladly accept their election. Agenda item 7, election of the auditor of the financial statements and the consolidated financial statements for the fiscal year 2021. The Supervisory Board proposes that Ernst & Young Wirtschaftsprüfungsgesellschaft m.b.H be elected as auditors of the financial statements and consolidated financial statements for the fiscal year 2021. Agenda item 8, resolution on the remuneration report. At the last Annual General Meeting, the remuneration policy for the next 4 years was approved with an extraordinarily high vote of 99.21% as the basis for the remuneration system for the members of the Management Board and the Supervisory Board. We are reporting to today's Annual General Meeting for the first time on the implementation of this remuneration policy in the remuneration report. For a better understanding, let me once again remind you of the rationale behind the compensation of the Management Board. Management Board compensation is based on the 3-pillar model, which is shown on the slide. In addition to the basic salary, the compensation of Management Board members includes a second pillar, a short-term variable salary component known as STI or short-term incentive. The third element is the LTI, the long-term incentive or long-term variable and share-based salary component. The basic salary is based on the level of salaries of listed Austrian companies and corresponds to the scope of duties and responsibilities of the respective Management Board member. The STI is based on our strategy and includes financial and strategic performance indicators, in line with our capital market positioning. The financial and nonfinancial targets to be achieved are set every year by the Remuneration Committee. The nonfinancial targets are incorporated into the STI on the basis of a modifier. The STI can be a maximum of 150% of the basic salary. The long-term variable compensation, the LTI, has a 3-year review period for each tranche, the so-called performance period. The LTI is based on the allocation of notional bonus shares. Payment is not made in shares but in cash and provided that the KPIs, the key performance indicators, set by the Remuneration Committee for 3 years, are achieved. The targets used for the LTI are key performance indicators relevant to the capital market such as, for 2020, growth of revenue, market share, return on invested capital, ROIC and green financing. Nonfinancial targets, excuse me, are also to be given greater consideration in the LTI, as can be seen from the green financing target we've just mentioned. The LTI is capped at 175% of the LTI target compensation. Now for the first time, the Management Board and Supervisory Board are presenting a report on this remuneration system, which was in effect in 2020. The detailed tables and presentations show the entitlements that have been paid out and those that were finally earned in 2020, but also those remuneration elements attributable to the reporting period. All in all, it has been shown that our Management Board remuneration system has proven its worth even during the pandemic, and it has led to adequate results. The structure of the remuneration of the Supervisory Board members has remained unchanged. The amounts have just been presented under agenda item 5. Now that brings me to the proposed resolution. The Management Board and the Supervisory Board propose that the remuneration board be adopted as it has been disclosed on the company's website since the 22nd of March 2021. The resolution on the remuneration of report is deemed to be only a recommendation. This concludes the presentation of the reports and proposed resolutions on all agenda items. I will now announce the attendance numbers for the AGM. According to the list of participants, 459 shareholders are represented by the 4 special proxies entitled to cast 557,862,185 votes. The general meeting has a quorum on all items on the agenda. I will now ask our special proxies where the shareholders have submitted any motions for resolutions. If so, please read them out. If not, please confirm that you have not yet received any motions for resolution. Mr. Beckermann?

Good morning from my side. I represent the IVA, we represent 417 shareholders holding approximately 24 million shares, and I have received one request. I would like to quote this request, and please handle it as requested. This regards the customer support, the so-called Telekom Hotline. Now A1 Telekom Austria Group should be more accessible to customers. So an e-mail address should be introduced for customers to get into -- attach with them right now. This is not an option. Now for proper telecommunication business, terminating such a hotline is a no go. So therefore, I would like to move that this be put on the agenda as a resolution in order to give all shareholders the opportunity to vote on the accessibility via e-mail. No further motions.

Thank you very much. Dr. Nauer, please?

Chairwoman, thank you very much for giving me the floor. Mr. [ Berger ], voting card #295, has requested me to move on the election of item #6 regarding Dr. Peter Kollmann to the Board. The motion is as follows. The motion is not to reelect Mr. Kollmann. The reasons are as follows. The wife of Dr. Peter Kollmann, Dagmar Kollmann, serves on the Supervisory Board of Telekom Austria (sic) [ Deutsche Telekom ]. Now Magenta has a very large customer, which is [ hard ]. This is a competitor of Telekom Austria, and there was a potential conflict of interest here. And Dagmar Kollmann, due to her function on the Supervisory Board of Deutsche Telekom poses this conflict of interest. In response to the question at the AGM of VERBUND, Dr. Kollmann answered to one question by not answering it. I asked him for how many e-cars were used, so even in times of SAP. No further motions.

Next, Mr. Niss?

Thank you very much for giving me the floor. I have not received any motions.

Thank you very much. Dr. Schulz?

Thank you very much. Madam Chair, no requests.

Now thank you very much. Now before we come to the Q&A portion of our AGM, we will interrupt the session for a short 10-minute break. This will give you the opportunity to send in further questions. [Break] Dagmar Kollmann serves on the Supervisory Board of Telekom Austria. Now Magenta has a very large customer, which is hot. This is a competitor of Telekom Austria, and there was a potential conflict of interest here. And Dagmar Kollmann due to her function on the Supervisory Board of Deutsche Telekom poses this conflict of interest. In response to the question at the AGM of Pfandbriefbank, Dr. Kollmann answered to one question. By not answering it, I asked him for how many e-cars were used so even in times of SAP. No further motions. Next Mr. Niss. Thank you very much for giving me the floor. I have not received any motions. Thank you very much, Dr. Schultz. Thank you very much, Madam Chair, no recourse. Now thank you very much. Now before we come to the Q&A portion of our AGM, we will interrupt the session for a short 10-minute break. This will give you the opportunity to send in further questions. [Presentation]

Welcome back from the break. We will now move to the Q&A session of our AGM and answer all questions we've received both before and during the Annual General Meeting. We will begin by reading out the questions from Josef Baumüller who has sent us his questions beforehand and will then continue with one round of questions asked by [ Mr. Peter Mique ]. And the third round of questions includes those asked by Mr. Beckermann. Okay. Let us first start with Mr. Baumüller's questions. Thank you very much. Thank you very much to Mr. Baumüller for the questions he has sent to us this year, more precise, briefer and in turn, we're going to try to be as specific, but still comprehensive in our answers. Let me start by answering the first 3 questions. This is about data protection, information security, question #1. Now in the materiality analysis at the beginning of the nonfinancial report, the issue of data privacy and information security is presented as a priority topic. The so-called hacker attack, which lasted for large parts of the first half of the past fiscal year, should be seen in the slide. However, in view of the expected significance of this event, the report on this on Page 4 of the combined nonfinancial report is surprisingly brief. This also contrasts with the extremely critical reporting abroad, which was equally affected by the events here. For example, in the newspaper handles that and here, a link has been added. I would, therefore, like to ask you to first present the management views of this event, particularly with regard to the associated risk for the company and its stakeholders and then a specific response to that, the latter divided into measures taken to repel the attack, which was still going on as concrete as possible, with individual measures and resources spend on them. And second, measures taken subsequently to equip the company's own IT infrastructure against future attacks and similar incidents? Question #2. In particular, I would like to ask you for a final statement on how and to what extent you have ensured that such attacks can be recognized and averted at an earlier stage in the future? Furthermore, I would like to ask you to explain to what extent individual major shareholders or representatives majority -- representatives have presented the company with different views on the conclusions to be drawn and what responses have been made to these? And finally, and that is the third question on this introductory set of topics, I would like to ask you, to say to what extent we can assume that all necessary conclusions have been drawn with regard to such future events and that the security of the Austrian infrastructure managed by Telekom Austria is, therefore, ensured to the best of our ability? We have already said that I'm going to answer these 3 questions together. First of all, regarding the incident mentioned, I can inform you that a 1/3 which is the computer emergency response team that we have established in our company, detected an attack on our office system in Austria in December 2019. And it has been said that we detect this quite quickly. In addition to an immediate notification to the data protection authority, we submitted a voluntary NIS notification according to the Network and Information System Security Act. Immediately, extensive countermeasures were initiated, both internal and external cybersecurity experts were consulted, in particular from Microsoft KPMG and AMX and of course, we cooperated closely with national authorities. First of all, the hack was analyzed in full detail. The critical infrastructure was secured separately, and in particular, the monitoring measures of all IT systems were expanded and extended. This made it possible, on the one hand, to specifically secure customer data, and, on the other hand, to monitor, analyze and evaluate the attacker's steps in order to devise the optimum defense strategy. Now the consensus among experts was to remove the attacker from old systems simultaneously. They refer to this by the term eradication. Now this required comprehensive changes affecting many systems, which had to be carried out by hundreds of system administrators in a coordinated manner. This eradication was successfully implemented in May 2020. And as part of this measure, we reset all of the company's passwords. For example, we tightened the password requirements for all employees, and we introduced other security measures. In order not to give the attacker an early warning, we did not inform the public until after this attack had been successfully repelled. All of the experts involved had no evidence that customer data from A1 Austria or a third-party customer data have been affected, either in the intensive analysis conducted during the attack or after eradication. Now in general, in response to your questions, I would like to state the data privacy and data security are top priorities for the entire group. The topic of cybersecurity has been debated in detail in an ongoing basis by the Supervisory Board in the previous 2 meetings. There were 2 specific presentations on this regard. I can assure you that our majority shareholders actively supporting us in dealing with the aforementioned cyberattack and will continue to do so. I've already mentioned this before. Now both owners are well aware of the important significance and scope of the cybersecurity issue, and they have fully embraced this as a top priority. Now the company is also steadily stepping up investments in this area to further raise our security ambition level and counter the ever-growing cybercrime threats. We've already launched a multiyear security program in mid-2020, in which we have been investing millions of euros. This program provides for further extensive technical and organizational measures to ensure that all data continues to enjoy the highest level of protection. Now I would like to move on to the next question. This is question #4 from Mr. Baumüller. I think that Mr. Beckermann on the IVA will ask another -- a very similar question. What scenarios do the corporate and sustainability strategy for the Belarusian market contained with regard to further development against the backdrop of human rights concerns? In Belarus, A1 is the largest non-state telecommunications company. And as such, we make a very significant contribution to providing for the country's internet service, and we are paving the way for digitalization. These are very challenging times for democracy, of course, and our priority has always been on our employees, over 2,000 of them, we have in Belarus and our customers. We always weigh the impact of these groups in all of our scenarios. As an employer, in Belarus, we are highly valued, and we continue to support our employees during crisis. I think, with our commitment in Belarus, we are making a significant contribution to civil society. We are enabling the population to connect to Western Europe with our services, and we provide employees with an international carrier path, and there are a number of examples of this. And we also show the population that there is an alternative. As a company, we, as a principle, do not get involved in political issues. But we support our employees' constitutional rights. This also includes the right to freedom of speech or the right to peaceful demonstrations. For example, our employees have taken part in demonstrations. In addition, we also offer practical assistance such as a crisis committee of employees and for employees who find themselves in a difficult situation in the country. I'm convinced that our nonpolitical behavior is appreciated by our employees, and it seems also by the population. And this is also reflected in the current growth of our customer base. Question 5, the so-called climate reporting in the context of the nonfinancial report is quite advanced and contains important statements and indicators. However, the implementation and recommendations of the Task Force on Climate-related Financial Disclosures, TCFD, which become the gold standard for this is not yet apparent. What considerations are being made regarding the future application of these recommendations? The TCFD recommendations cover 4 key areas: risk management, strategy, governance as well as key figures and targets. And we address these as follows. In 2020, risk management was expanded to include climate scenarios. In Q4 2020 and in Q1 of this year, we focused on preparing an initial climate scenario analysis for A1 in Austria. In the course of this year, 2021, we will roll out the climate scenario analysis to the entire group. The result of this climate scenario analysis is that neither a temperature increase of 1.6 degrees Celsius nor a 4 degrees Celsius in Austria is expected to lead to significant losses in profitability. However, it is important for us to work actively directly on reducing energy consumption and reducing CO2 emissions. Particularly in providing digital solutions for private individuals and companies, and in this way, we can indirectly enable resource optimization and help curb CO2 emissions. So opportunity in risk management. These are already integrated into our planning and control processes. With the expansion to include climate scenarios in risk management, these will also be included in strategy and governance of our company. We are already working very intensively on key figures and targets in order to be able to work with valid and also audited data material. As already mentioned, in 2020, we have a greenhouse gas emissions reporting guideline. This was rolled out across the group last year. And 100% of GHG emissions in Scope 1 and Scope 2 were externally audited for the first time. Now I come to question 6. I would ask you to briefly describe in detail where you stand in your implementation of the EU Taxonomy Regulation? And what further steps are you taking to assure a timely preparation for the associated reporting and management obligations? For the general understanding amongst the AGM attendees, I would also be grateful if you could briefly explain the contents and requirements of this regulation in general, and also how they relate to Telekom Austria, in particular? The Taxonomy Regulation set out 6 environmental targets for the financial year 2021 already. Not financial reporting has to include how and to what extent the company's activities are considered sustainable. In other words, which shares sales, CapEx and, if applicable, OpEx meet the requirements of the EU Taxonomy Regulations. To this end, all of the company's economic activities must be screened and technical audit criteria must be applied to determine whether economic activities can be classified as environmentally sustainable. The criteria for this are: determining the contribution to at least 1 of the 6 environmental targets. No significant damage must be -- may be caused through the other targets in compliance with minimum protection measures such as OECD guidelines for multinational enterprises or the UN guiding principles on business and human rights. To implement the taxonomy regulation and in order to prepare our sustainable finance framework, we have formed an internal working group to ensure that the requirements for enhanced reporting are implemented. Of the 6 environmental goals for Telekom Austria, we have climate protection and adaptation to climate change. These are of key importance for our company. Here, the focus is primarily on measures to increase our own energy efficiency in the area of fixed network and mobile communications infrastructure, the call -- so-called greeting off, as well as the contribution that we are making to enable sustainable development and climate protection as well as access to digital technologies for other industries through our services and investment. This is the so-called greeting buy. Of the other targets that will be applied starting in 2023, we have the transition to a circular economy and preventing and reducing environmental pollution. These are key aspects. The core of Telekom Austria's economic activity, in other words, traditional telecommunication services is not explicitly mentioned in the taxonomy regulation. It merely classifies individual segments of our economic activity. For example, the operation of data centers housing services, ICT products, ICT solutions are sustainable within the meaning of the regulation. Regardless of its classification in the EU taxonomy, the information and telecommunications sector, with its core activities, as a whole, has a significant enabler function for digitalization and, thereby, for sustainable development of the economy with regard to massively reducing CO2 emissions. As a member of ETNO, European Telecommunications Network Operators' Association, we, for that reason, have also explicitly requested that the EU include further additions in criteria for the telecommunications sector in the taxonomy. Thank you very much. I would like to take question 7. The question is one, future topic that will probably lead to specific legal steps is the topic of "supply chain protection." This is also known in Austria as the Supply Chain Act. Here, I'm referring to the emerging legal situation in Germany, for example. To what extent would Telekom Austria's established due diligence mechanism already be able to fully comply with the upcoming requirements, or what adjustments may seem necessary? Furthermore, how is the specific topic already being dealt with within the company? And what projects are being initiated in this area? My answer is that, as far as we know, there is only a draft of the supply chain legislation in Germany, which is still under discussion, has not yet been adopted in Austria. This discussion is still in the starting block. There's been a proposal from the commission that was announced for June, and we are continuing to monitor these developments. And we will take the appropriate measures as soon as they become more relevant for Austria. Notwithstanding, our general terms and conditions of purpose have long stipulated that our contractual partners must commit to compliance with legal provisions and ethical principles. The focus here is on social commitment and climate environmental protection. We will be focusing on this issue more intensively in the future. Question #8, in light all of the draft version of the EU Directive published on April 21, 2021, which is intended to improve the standards framework for nonfinancial reporting, I would like to ask you for an initial assessment of the need for action that you already have ascertained for Telekom Austria as well as your position on this draft directive? Question 9. In particular, I would like to ask you for an initial indicative presentation of which of the company's intangible resources that have not even recognized in the statement of financial position of significance for the value creation of Telekom Austria and which are to be a central component of corporate reporting in the future? Furthermore, what challenges do you anticipate for their future presentation in corporate reporting? I would like to answer these questions together as well. The EU Commission's draft of the future Corporate Sustainability Reporting Directive, the so-called CSRD, which was presented on April 21, 2021, is an important step on a way towards greater transparency and stronger anchoring and binding force of company's sustainable strategies. Telekom Austria AG supports this product. The CSRD will lead to a strong interlinking of financial and nonfinancial reporting, and, above all, it will lead to a significant expansion of reporting for Telekom Austria AG. There is need for action to be taken with regard to the collection of additional and the consolidation of existing data. In particular, the collection of data and key figures regarding the impact of various sustainability initiatives. So right now, we are analyzing the requirements that arise from the CSRD, and this will be from 2023. This will be together with the disclosure requirements from the EU Taxonomy that are already slated for implementation starting in 2021. In addition, we are also preparing for future reporting based on the sustainable finance framework. Amongst other things, the CSRD also provides for mandatory disclosure of intangible assets other than those reported on the balance sheet, including intellectual capital, employee qualifications and know-how and the social capital, including relationships with stakeholders and customers. In the future, the information on intangible assets will also include information on research and development. Overall, the topic of intangible assets is highly relevant, and, at the same time, quite challenging in terms of evaluating and establishing the comparability of individual aspects. With the presentation of the reporting standards, here in 2022, detailed specifications for implementation are to be expected. So from my personal point of view, the CSRD will be the dawning of a new era in nonfinancial reporting. It will require a greater deal of time and effort. But we will be able to provide an integrated overall picture of the situation, of course that makes a great deal of sense. Let me now move on to question 10. The remunerations report shows 1 objective under the STI that has obviously been fulfilled, the group-wide establishment of ESG governance. I would like to ask you to briefly explain whether this means anchoring ESG goals as part of the overall corporate strategy. I would also like you to briefly explain why the aspect of data and infrastructure security appears to be only of secondary importance in this strategy based on the data available, of course, in the integrated report? Now I've already explained in my presentation that ESG is one of the cornerstones of our business strategy. For this reason, the Management Board, together with the Supervisory Board, for the first time specifically agreed on specific ESG targets for the first time in the STI Management Board targets. And by integrating the ESG targets into the Management Board remuneration, we have taken an important next step in the implementation of this strategy. In the area of ESG, governance, of course, a lot more comprehensive steps have been taken, including the following. Now, in 2020, for example, we do believe that an enhanced cross-divisional and cross-market governance was established to implement ESG goals. In addition, group guideline for the reporting of greenhouse gas emissions was implemented, which ensures uniform reporting of the climate targets in all group companies and increases the quality of reporting of greenhouse gas emissions, particularly as Scope 1 and Scope 2 emissions. Furthermore, for the first time, an audit of greenhouse gas emissions was carried out, which confirmed the quality of greenhouse gas reporting. In addition, in July 2020, the SBTi, the Science-based Target Initiative validation of the greenhouse gas emission reduction pathway to 2030 was carried out. This validation confirms that A1 Telekom Austria Group is contributing to the 1.5-degree target of the Paris Climate Agreement, and therefore, it makes an important contribution to curbing global warming. Moreover, I should like to note that ESG components were also included in the catalog of the objectives and targets of the local leadership teams, and those have just been a couple of examples in response to your question. On the topic of data protection and information security, of course, I've already touched on this when answering the first part of your questions. Data protection and information security are part of our core tasks, and we, therefore, see them as an absolute necessity that has long been integrated into our day-to-day business as it were. Nevertheless, and I would like to be frank about that, we intend to emphasize this aspect even more strongly in our ESG strategy in the future. I would like to answer questions 11 and 12, questions that were asked by Mr. Baumüller. Question 11, although not provided for under the current legal framework the treatment of nonfinancial reporting by the Audit Committee is frequently raise demand, which is followed by corporate practice. The EU Commission's proposal of April 21, 2021, to improve nonfinancial reporting requirements in the European Union is also relevant in this regard? I therefore would like to ask you to explain to what extent the published separate nonfinancial report has been dealt with by the Audit Committee? In particular, what specific audit actions have been taken and what expertise in this regard is available in the Audit Committee or is still being established? The very vague statement on Page 58 of the combined annual report does not indicate with which specific internal audit procedures you ensure that the nonfinancial performance indicator, et cetera, included in the report are truly reliable. My answer to this is, the Audit Committee, of course, deals with the audit of the nonfinancial report. After conducting a voluntary audit by the auditor, the Audit Committee dealt with the nonfinancial report on the 4th of March 2021. After the Audit Committee members had studied the report in German and English after it had been sent to them, and dealt with it in the Audit Committee meeting, the Audit Committee was able to make a recommendation to the Supervisory Board to take note of and improve and acknowledge the nonfinancial report. Now in any case, this approach is in line with the legally required reporting and the prevailing practice in Austria. Our CFO, Mr. Mayrhofer, will later on give you a further overview of the status of the considerations. As regards the expertise of the Audit Committee, I would like to report that our Audit Committee includes high ranking experts who have -- excuse me, also had to deal with sustainability issues as part of their professional activities. Particularly noteworthy are the representatives of our main shareholder, América Móvil. América Móvil, one of the largest telco operators in the world has placed a special focus on ESG in recent years and anchored the sustainability issue at the highest management level, ESG activities of AMX are continuously developed and ESG topic is integrated into all areas of the company. In addition, the Supervisory Board representatives of América Móvil not only have telecom-related expertise in their respective areas of expertise, but also contribute to relevant implementation expertise on ESG-related challenges in their respective areas of expertise. Let me go into greater detail. Now Carlos García Moreno, CFO at our majority shareholder, América Móvil. Green financing is on top of the agenda for him. Oscar Von Hauske Solís, he is Head of the Fixed Network division of América Móvil and has to deal with the issues of sustainable infrastructures, energy efficiency and information security on a daily basis, in particular, he's driving CO2 reduction in network operations. Carlos Jarque is Executive Director of International Affairs, Government Relations and Corporate Affairs at América Móvil. In addition, he's also the Former Minister of Social Development and Secretary of National Development Plan of Mexico and therefore, brings an extraordinary expertise in this area. Furthermore, Dr. Kollmann also has a seat on the Audit Committee. He is CFO of VERBUND AG, Austria's leading electricity company and one of the largest producers of electricity from hydro power in Europe for VERBUND, stands for clean energy and the future worth living for the next generation, addressing sustainability issues such as green bands of sustainability ratings are, therefore, also on Dr. Kollmann's daily agenda. Now Thomas Schmid as a member of the Management Board of ÖBAG, he also deals with the topic of ESG on an ongoing basis. Under his leadership, ÖBAG has defined environmental, social and governance criteria as an integral component of sustainable development in business and finance and is increasingly driving these issues forward in its portfolio companies. Dr. Peter Hagen used to be CEO of one of the largest insurance group in Central Europe and has been pushing the issue of sustainability and his function as a member of the Audit Committee for many years now. Question #12. One demand that has been raised frequently recently that a separate position can be created for a sustainability expert on the Supervisory Board similar to the financial expert as an already established role profile. A recent example from the ATX Prime that has received a lot of attention instead of Austrian Post. As far as this can be seen, this is not yet planned for the Supervisory Board of Telekom Austria. I would, therefore, like to ask you to briefly comment on the perceived need for action in this regard as well as any further plans. In any case, a short course or general industry experience in this area does not seem sufficient to me and to most other stakeholders with whom I'm in contact for that matter. Now answer to this question. Following the answers to the previous questions regarding the expertise of Supervisory Board members and Audit Committee members, we would like to state that not only on our Audit committee, but also on the Supervisory Board as a whole, proven experts and renowned experts from important companies who deal with company-specific sustainability issues in their daily work are included. Our expertise in this topic areas, therefore, very high. You can rest assure that such a broad expertise cannot just be acquired in an evening class, as you have suggested. But still, of course, we are willing to further -- to get further training. Question 13 and/or of 14. At the Annual General Meeting of Austrian Post on the April 15, 2021, a statement was made, which may be of grand pro breaking importance for the further development of the entire framework of sustainable corporate governance in Austria. Now with regard to the performance of a voluntary external audit, which the company has been conducting for years on the basis of a limited audit assurance. It was agreed that in the first step, the audit in TMCD would now be raised to that of a reasonable assurance. Although for the time being, only for selected ecological topics or performance indicators. In a next step, however, the more extensive reasonable assurance is to be carried out. What may appear to many to be, let's say, terminal logical subtleties and almost revolutionary development towards more relevant, more reliable and arguably more complete information on the sustainability performance of companies. The commission's proposal dated 21st of April 2021 suggests that the legal requirements will develop in this direction in the coming years. I would now like to ask you to briefly explain the extent to which the development is to be followed at Telekom Austria and, if necessary, to provide an initial indication of the associated plans in terms of content and timing. Now we already have our nonfinancial report audited externally on a voluntary basis and audit with limited assurance studies. This is in line with standard practice in Austria. Now the commission proposal, you have mentioned, provides for an audit obligation for reporting companies. Accordingly, an audit with limited assurance is to be mandatory in the first step. In the medium term, an audit with reasonable assurance is being considered. The A1 Telekom Austria Group is committed to participating in this development. Therefore, great efforts have already been and are still being made to intensify an audit of nonfinancial reporting. In the first step, the scope of the audit regarding GHG emissions was expanded in 2020. For the first time, 100% of the group-wide Scope 1 and Scope 2 greenhouse gas emissions of Telekom Austria AG were audited in detail by Ernst & Young. In Austria, we all still had Scope 3 emissions audited. Our goal is to expand this audit scope to include other nonfinancial metrics in the nonfinancial report we are currently evaluating this next step. Now in a subsequent step, we plan to gradually introduce internal audits for each material nonfinancial reporting topic. An internal audit is performed using the same framework as a reasonable assurance audit. The step-by-step approach is intended to pave the way for an audit of the entire nonfinancial reporting with reasonable assurance. We are committed to consistently expanding our audit scope and will, of course, comply with any current and future legal requirements. Questions 14, 15 and 16 will be answered by me. One question that was raised on the last Telekom Austria Shareholders' Meeting concerning the person of the Supervisory Board member, Thomas Schmid, without wishing to link this directly in light of the current developments, I've been approached by a number of numerous parties, which justified interest in his activities in the context of his work at Telekom Austria. I, myself, share this interest. I would, therefore, like to ask you to briefly describe the particularly important specific contribution or contributions he made in the past financial year in his area of activity? And how he is developing his individual role in the context of his supervisory board mandate? In addition, as the next step, I would like to ask this member of the Supervisory Board ad personam for a brief personal statement on the points just mentioned, supplementary, or in contrast to the statement? I would also like to ask the representatives of América Móvil on the Supervisory Board of Telekom Austria for a brief statement on their assessment of the current, not only political and media debates as well as the findings that have come to light regarding ÖBAG and its integration into Telekom Austria? I would also like to ask you to briefly explain how these debates and findings were addressed in their entirety by the Supervisory Board of Telekom Austria? What conclusions were drawn, particularly with regard to the work and compensation -- composition of the Supervisory Board? So this was 14 and 15 that I would like to take together. Mr. Schmid was present on meetings of the Supervisory Board and the Audit Committee was always very well prepared and has performed very good work there. Mr. Schmid contributes significantly to all topics that the Supervisory Board has to deal with. These topics include, amongst others, the strategic orientation of the company, particularly with regard to ESG and sustainability aspects, investment and financing decisions and applications for licenses. Mr. Schmid has asked me to read the following statement. "I am fully aware of my duties on the Supervisory Board of Telekom Austria and will do my utmost, not only as a member of the Supervisory Board, but also as a representative of the 28.42% owner ÖBAG. I will perform my duties dutifully until the end of my mandate on the Management Board of ÖBAG as well as in the interest of Telekom Austria AG in the Republic of Austria." So regarding your further questions. First of all, in your question, you addressed the relations between the main shareholders. The relationship between the main shareholders is not on the agenda, is not a subject -- not a subject covered by today's AGM and cannot be answered here. Finally, as we greatly appreciate the work of Mr. Schmid on the Supervisory Board, there was nothing to raise at the Supervisory Board level. It was the decision of ÖBAG's corporate bodies who they appoint to the Supervisory Board of Telekom Austria AG on the basis of the contractually agreed nomination rate as far as could be gathered from media, the Supervisory Board of ÖBAG made the decision of Mr. Schmid that he does not wish to extend his Management Board mandate beyond March 2022. So question 16, I would also like to ask each of the candidates standing for election to the Supervisory Board to provide a personal summary of the contributions that they have made to sustainable corporate management in their professional activities to date. And what they consider to be their greatest failures in this respect, and what personal objectives they have in this respect for the new term of office that they are seeking? I would like to read out the statements from these 2 gentlemen, Dr. Kollmann first, "I have been CFO of VERBUND since 2014 have played a key role in VERBUND's development to -- and making it a pioneer in the ESG area. I would like to highlight the phaseout of thermal generation of energy since 2014, which has led to a significant reduction in CO2 emissions. Today, electricity is generated entirely from renewable resources. And the earth green finance, VERBUND is considered a leader in Europe and a pioneer in innovative ESG financing. I will actively support Telekom Austria all measures in areas in achieving its goals related to ESG, particularly in the areas of green finance and sustainment development and sustainability rating, I would play an active role on the Supervisory Board of Telekom Austria" The statement from Dr. Hagen. "To me, personally, ESG has long been a very important topic in my previous role. My focus in this regard was certainly on increasing diversity, and particularly by ensuring that management positions were filled by women on an equal basis as much as possible. As part of my insurance activities in the narrow sense, we introduced preferential car rates for electric vehicles, for example, and supported a number of sustainability initiatives. For this reason, I'm particularly pleased that the Supervisory Board of Telekom Austria has also been increasingly addressing the issue of ESG in its various forms for some time now." In my view, the management board has defined the right priorities and challenging goals in this area, which I fully support. And I'm also happy to actively contribute to these. The fact that we, on the Supervisory Board, are determined to move forward the implementation of these goals is underscored. Amongst other things, by the fact that the Supervisory Board has adopted a compensation policy that rewards the achievement of ESG goals on a sustainable basis, I welcome this development, and would like to further, there's some momentum in the Supervisory Board. So now for question 17, I would like to give the floor to Siegfried Mayrhofer. Please indicate which consulting services were used in connection with the preparation of the nonfinancial report, in particular, which business partners were involved in which fees were paid in each individual case? Furthermore, I would like to ask you to indicate the fees paid for the voluntary external audit of the nonfinancial reporting. In particular, I would finally ask you to state to what extent the representations of the so-called hacker attack is discussed in questions 1, 2, 3 with the subject of these consulting and auditing services? In 2020, no external consulting services were incurred for the preparation of the nonfinancial reports. The costs for the audit of the nonfinancial report and the group wide to emissions audit amounted to around EUR 33,000. The hacking attack sided and the measures taken in this context were examined in detail by the auditors as part of the normal audit of the financial statements. There was, therefore, no need for a separate audit contract, nor was there a separate fee charged for that. So this brings us to the end of the catalog of questions submitted by Mr. Baumüller. As previously indicated, we now come to the questions submitted by Mr. Peter Michaelis, ahead of time. I would now like to ask the management board to address the questions 1 through 5. Yes. Thank you very much. This is Peter Michaelis with the voting card #248. The first question, broadband Internet in Austria by when there will be national coverage? How high with the government subsidies were from 2018 to 2020? What other commitments for subsidies of public funding exists? What about the millions in EU funding earmarked for digitalization? How are they being used today in A1 Telekom? And what amount has been -- will be requested? And the second question, on empowering digital live, is cyberoptic expansion planned in connection with 5G? Progress on households in Austria so far and future plans, expansion should be without additional costs for residential customers' question. So I would like to answer these 2 questions together. First of all, regarding comprehensive coverage, for broadband Internet. As we've already mentioned, we continue to rely on an optimal mix of technology, consisting of fixed in mobile communications, our aim is to bring ever higher bandwidth to our customers as efficiently and quickly as possible. Here, it is important to provide bandwidth to our customers, not one particular technology. As far as fiber coverage, fiber optic coverage is concerned, all A1 exchanges in Austria are already connected to fiber. We continue to rely on a technology mix of FTTC and FTTB, so fiber to the curb and fiber to the building and FTTH, fiber to the home, in our fiber rollout. I would like to address the question on household coverage in the next question. But as you could already tell in my presentation, we have already provided in access point for 95% of our municipalities, and we have 62,000 kilometers of fiber optic network. This is the largest network in Austria. This is an excellent basis for rolling out the 5G network. And this is progressing rapidly, and we are convinced that by the end of the year, we should be able to provide well over 50% coverage. Regarding subsidies in public funding, I am assuming that your question refers to the program, Broadband Austria 2020. This is also a term the first broadband billion, the first calls were in 2016. We received a total subsidy award of around EUR 213 million at the end of 2020. We had already received just under 1/3 of this amount, and the other half is currently being implemented or the rest is being implemented. Regarding the EUR 1 billion in EU funding earmarked for digital transformation, the draft of the new funding advanced Broadband Austria 2030, this is the new broadband program in Austria, is currently undergoing public consultation. Later on in another question, we will be able to address the European funding program with a little bit more detail, but we are following this development very closely, and we're participating actively in the consultation process. As soon as this new funding -- these -- the funding guidelines are enforced, we will be able to evaluate our participation in this funding program. So cost for the customer. We are seeing a sharp rise in demand from our customers. Our customers want more bandwidth. We have an ongoing fiber-optic rollout and 5G rollout as well, and this is how we plan to meet this growing demand. The expansion of A1's infrastructure directly, of course, is being carried out at our expense from A1 itself. On the third question, the fiber-optics network's status of rollout in Austria, the percentage of fiber-optic connections, when for coverage, it will be provided in Austria also in rural areas. And is -- are you planning to enact a similar procedure compared to that in Deutsche Telekom? Determination of possibilities with digital car and line to house without digging in the frontyard with a "mole" or by using compressed air methods. A key factor for our customers is, of course, the amount of bandwidth we can provide them. Based on pure fixed network technology, we will reach about 60% -- 66% of all households by the end of 2020. This is with a bandwidth of at least 40 megabits per second, of course, or more and compared to 62% in the previous year for 2021, we set the target of reaching about 70% of households, with a 40-megabit product or more using pure fixed network technology. But as we have already mentioned, we are relying on a combination of mobile and fixed network technology for broadband rollout and -- by combining these by the end of the year, by the end of 2020, we were able to provide coverage to 95% of our households with a product of at least 40 megabits. Regarding the technical methods used, the excavation work, of course, our guided boreholes or flush boreholes, and these are already used by A1, and they are part of our alternative installation techniques. On to question #4, regarding any changes or distortions in the course of the business. In 2020 due to COVID or a political impact, especially in Belarus, where our measure necessary to improve the results? Okay, with regard to COVID, the COVID-19 pandemic had a variety of effect, both negative and positive, actually, on the course of business in 2020, which we have already discussed in greater detail in the Management Board's presentation, primarily the loss of roaming revenue with a negative effect of approximately 4% on EBITDA, the significant reduction in CapEx. And on the positive side, we can mention the satisfactory demand for broadband solutions. Political impact. Well, in 2020, Belarus experienced a period of economic decline exacerbated by the COVID-19 outbreak and political instability in the second half of the year. As mentioned earlier, the devaluation of the Belarusian ruble at 16.1% had a negative impact, of course. However, the currency development is mainly driven by the development of the Russian ruble and the oil price. Measures to further improve earnings, we intend to maintain a strong focus on operational efficiency and continue our cost-saving initiatives. Our digital-first transformation program will continue to play a key role in this context, and it is expected to have a sustained positive impact on our earnings on the basis of IT modernization, process automation and the digitalization of customer service. To answer question number 5, the number of cell phone towers used by Telekom Austria and Austria. The number of towers in the final rollout and will additional towers needed for 5G? And how high are the rental costs for all towers? Now approximately it's 1,500 towers are in use, this includes both macro and micro sites. There will be very few new towers, brand new towers studies of -- for 5G. The majority will be built via network densification using small antennas and small cells, for example, on house walls, lighting poles or on sales indoors. In Austria, A1 spent approximately EUR 48 million on rental payments, including leasing that is for base stations. I would like to answer question 6, 7 and 8, as for Mr. Peter Michaelis, question number 6, how many civil servants are there at Telekom Austria? And when did Mr. Pecik resigned from the Supervisory Board? A1 Telekom Austria AG had 2,811 FTEs, civil servants, active employees that is at the end of 2020, and this corresponds to a reduction of 389 or in other words, 12% compared with 2019. In a letter dated 6th of June 2017, Mr. Ronny Pecik resigned from the Supervisory Board with effect from the end of the AGM on the 9th of June 2017. Question 7. That is not really a question, but rather a praise. It reads, "thanks to all of our employees -- to all your employees, actually, and management for the work that led to the improvement of the result." Thank you very much for these kind remarks. I can only join in and also thank the management and staff. Question 8. Despite a slight improvement in earnings and the slightly higher dividend, Management Board remuneration fell by 12.5% year-on-year. Is this development sustainable and forward-looking? Well, in accordance with the IFRS accounting standard, the Management Board compensation reported in the financial statement in Note 36 corresponds to the compensation paid in 2020, so this is a cash flow view. And this decreased by 12.6%, as you quoted in your question. In accordance with Section 20 -- excuse me, Sectoin 78-C of the Austrian Stock Corporation Act, the Management Board compensation reported in the remuneration report also includes remuneration owed and pension fund contributions. And based on this reporting form at the Management Board remuneration increased by 0.9% in the 2020 financial year. The slight increase indicates a solid balance with the company's earnings performance. I've already elaborated on that regarding agenda Item 8. Now finally, he would like to thank the management and all employees for a sound and solid result. Thank you very much for this phrase. I'm going to pass on those congratulations to our employees. I would like to continue with voting card #2, a representative of the IVA. And I would like to answer the first round of questions. Question number one, in the previous year, did Telekom Austria and any of the jurisdiction receive any kind of government aid for short term work, for example? If yes and how much? The answer is quite simple. Any kind of state aid such as a short time work, abridging guarantees, compensation for losses, have not been filed for in Austria. Next question, how high is the share of employees working from home and also, thanks are conveyed to the employees in this challenging environment. Thank you very much for this phrase. Now to answer your question, at A1, more than 60% of our total employees work from home, and they have done so as explained in the presentation since the 16th of March 2020. Now in the case of some 3,000 employees in Austria, it's unfortunately not able to have them work from home. These are primarily those working in our shops or in aftersales support, et cetera, technicians, for example, that directly have to give on-site support to our customers. Now switching over to at-home work has been made very quickly. For example, during the first lockdown, our entire call center, including more than 1,000 staff members who simply move to their own homes over the weekend. Next question. As previously announced, this question regards the EU recovery fund and the Austrian projects regard a high degree of digitalization. In the case of how many projects does A1 Telekom Austria participate? And what investments are attributable to the EU? And what do the government of Austria, what is the time horizon? Now let me briefly explain in the so-called recovery and resilience facility of the EU, a total of EUR 672.5 billion are available. Out of this, EUR 312.5 billion are direct subsidies. The allocation to the EU member states are made on the basis of economic development performance and will be determined in June 2022. Current estimates state that Austria will approximately receive EUR 3.5 billion. But of course, this amount may vary. And therefore, Austria has reckoned a total of EUR 4.5 billion, and they have filed for this. Now the projects applied for, which can, of course, not be attributable to 1 single company will be evenly distributed up to 2026. The largest part, as I've already mentioned before, goes into subsidies for a broadband. In this case, EUR 891 million are planned for the most rural areas of Austria, but also the digitalization of schools, the administration of SMEs, et cetera, and other project will be or have been considered by the Austrian government. If and to what extent really the projects of A1 will be addressed, of course, depend on the national implementation. For example, the new broadband subsidy guidelines are publicly in Austria being discussed. And of course, they will need to be notified to the EU. We are clearly monitoring that development. And of course, we take an active participation in this consultation process. Next question. Regarding Belarus, now as we see, Belarus has moved away from Austria. So your company maintains good relations to this country, now what are your plans in this regard? I do believe that we have answered this question earlier. Of course, the entire Management Board intensively deals with Belarus Public Affairs, of course, and regulations fall under my responsibility. Next question. Within A1, how do you handle bullying? Are there any kinds of, let us say, lawsuits that have been filed, sexual harassment, for example, bullying, et cetera? Now let me be quite clear. Of course, we do not tolerate bullying at all. Executives, for example, have a kind of sensitivity training under 1 initiative that we call a healthy leadership. A process has been established on how to handle this and also, an interview guideline has been established. Right now, we do not have any lawsuits pending. Next question. In this regard, of course, a lawsuit. Next question. Could you please mention the 3 largest media consulting companies, also please specify the costs? Ketchum Publico with EUR 43,200; [ Panterrey Advisers Skrad ] at a cost of EUR 19,000; [ Tomas Goyza ], EUR 10,925. Next question. Now for example, did you have an interim audit of the ESG targets. Was that an internal or an external audit? And what were the costs? Our internal ESG interim targets, such as, for example, renewable energies, are, of course, monitored within the scope of the annual reporting, and this reporting is made internally by the employees of A1 Telekom Austria Group. Now the publication of these interim targets are made in the nonfinancial report, which, as already reported, was audited by Ernst & Young, and the costs were EUR 33,000. Next question, how many employees exclusively deal with the, let's say, fulfillment of ESG criteria? And can you estimate cost for monitoring? Well, our group ESG team is currently made up of 3 FTEs, 1 part-time employee and 1 trainee. Now within the scope of setting this ESG governance up a new, we, of course, defined responsibilities in the individual opcos. This is internally being continuously being expanded and also put in a more professional level. For the first time, for example, in 2021, we carried out a forecast of selected ESG KPIs. Now the whole work was covered by the ESG internal team. And so far, no external consultation services have been requested. Voting card #2, IVA, I would like to continue your question. In 2022, a large bond will have to be repaid, what is the planning for this process? Now the next financing need is in the amount of EUR 750 million. That is in December 2021 and another bond the amount of EUR 750 million in April 2021. Now A1 Telegram Group has a green financing and sustainable financing. This is clearly one of our targets in 2021. For the first time, sustainable investment was defined as a key indicator from 2020 to 2022. Long-term financing and refinancing via green bonds or other sustainable financial instruments are to be made, and we are intensively preparing for that. Question. 2020 was the best year as regards to mobile data use all over the world and still A1 TA only that has maintained its revenues and profit. How much in terms of percent really of your business success depends on roaming? Approximately 4% of total revenues were roaming revenues in 2019. The share was reduced to approximately 2% in 2020. Approximately 9% of EBITDA was attributable to the roaming margin in 2019. And the share was reduced to approximately 4% in 2020. In 2020, the roaming business was heavily impacted by global travel. Restrictions equipment revenues amount to more than 14% of our total revenues. But on the EBITDA level, the equipment margin is almost neutral and maybe on your note, of course, we have seen an enormous increase in traffic during the pandemic in particular as regards to mobile networks. But still for many years, most customers have packaged solutions, which is to say even when traffic goes up, this does not automatically lead to higher revenues on our side. So another question. The A1 had cash? Or do they have to pay penalty interest rates? No, we do not have any significant safekeeping fees on our -- with our banks. Question. Could you please give us 3 major corporate consultants also with their software consulting with the cost and projects? These were as follows: N-E-R -- NERA Economic Consulting, EUR 378,000, consulting within the context of 5G for consumption in Austria; as well as PricewaterhouseCoopers Advisory Services, EUR 333,000, this is for increasing process efficiency in financial in Australia; then [indiscernible] Given behold, EUR 180,000 has to do with data monetization and tapping potential in this area. Does A1 Telekom Austria, employed directly or indirectly, any private investigators? If yes, how much? No, we do not. So can you give us the 3 major law offices with costs. As follows: [indiscernible] in Croatia, EUR 901,000; the [ Lévy Kaufmann-Kohler ] Company in Bulgaria, EUR 133,000; and Šavoric & Partners, this was once again in Croatia, for EUR 332,000. Regarding corporate governance report 2020, there was evaluation of the performance of the Supervisory Board. What was the result? As indicated in this corporate governance report 2020, the Supervisory Board is in compliance with an open discussion culture, in line with Rule 36 of the Austrian Corporate Governance Code, and they carry self-evaluation -- carry out a self-evaluation every 2 years. And the last self-evaluation was carried out in December 2019. In this self evaluation, the Supervisory Board characterized this work based on a comprehensive questionnaire, along the following dimensions, [indiscernible] and strengths in the Supervisory Board and room for improvement, efficiency, the work in the Supervisory Board issues that should be dealt with more in the future. Also the quality of work in the Supervisory Board as well as cooperation between the Supervisory Board and the Management Board. The self-evaluation resulted in that the Supervisory Board saw is a work in general is good and efficient. And the cooperation within the Supervisory Board and together with the Management was also found to be excellent. Beyond this, there was a list of subject matter that will be dealt with in the Supervisory Board more in the future. Regarding corruption prevention and compliance, how many training units were held last year? What kind of external consultants did you have on board? And then how much did this cost? In order to enshrine the idea of integrity throughout the group in a sustainable way, we have target group optimized the compliance training units in 2020. We had 2,800 employees and managers involved in virtual trainer-based compliance training units, and the half of them were anticorruption training units. In 2020, we had 24,200 compliance e-learning courses and 9,700 anticorruption e-learning courses were also completed. All compliance training units were occurred as internally and all compliant e-learning courses were carried out in-house. For professional speakers we had a cost of EUR 3,000. Otherwise, there were no external costs involved. Regarding the lessons learned from the scandal, how many whistleblower cases did you have? With the goal of ongoing prevention and oncoming potential risk, this is the Wirecard scandal within an A1 Telekom Austria Group. Employees and also external persons can use the whistleblower platform, tell me when they can do this anonymously. They can provide information about any possible wrongdoing in the year 2020. This compliance tool and other channels were used to submit client compliance relevant to tips to the group, and all of these were investigated in confidentiality and in -- very carefully. Around half of the tips have resulted in discovering some kind of wrongdoing. Ernst & Young. Regarding the scope of the audit quality assurance of the network review abroad. We received the answer from Ernst & Young, and I would like to read this out. On their behalf, regarding quality assurance for -- with Ernst & Young network partners, we have ensured that -- we assure the quality of audit by the auditors of OpCos as well as other specific measures. We have ongoing video conferences as well as side visits in our audit scope. During the site visits, we have a work paper review. This is carried out a member of the primary team. Beyond that, engagement quality review partner, EQR, they ensure the ongoing quality of the contract early warning reports are aimed at -- provided warnings to the primary team if there are any key extraordinary events in the component international uniform auto tools ensure a standardized audit such as EY Canvas. Beyond that, the Global Audit methodology ensures a global approach to auditing. This is also supplemented with global policies and trading curriculum of our employees. Regarding the measures taken aside from auditing, we have annual audit quality reviews, and these are carried out by international teams, independent international teams, and this is done remotely due to the pandemic. Individual actions are also subject to review as well as audited in general. The results of these AQRs are evaluated by the relevant regulators as well as oversight authorities. Every 3 years, we have a practice that will review carried out by EY Global. Regarding liquidity management is our policy in the company, when was it updated? We have a very stringent treasury rule that we used at the group, and this is also governs liquidity management and bank limits. The treasury rules are reviewed in an ongoing measure, and the last update was carried out in April 2021. Is there a double check-up principle throughout the group for payments that in place as a principle? As in the group-wide the treasury rules, we have the cross-check principle as an integral component for payments. So was there a review of the OEPL are the Austrian auditors already the SMA, the Financial Market Authority, what was the underpinning for this review in 2020? There was no audit carried out by the FMA or the OEPR. And no other audit was carried out from previous year. Now I would like to focus on the cost of the project in 2020 was the initiative for the project. This is the 1,450 hotline, what about -- how was this recorded? Was this recorded to the gift to the public of Austria? We have to talk about the call routings of our operating activities. This was carried out by a third party in the first lockdown, our subsidiary in Austria, the A1 Telekom Austria AG, I assume the call routing on a short term upon request of the Federal Chancellor, because the original operator was overwhelmed, was not able to provide this functionality. The services were provided for a fee. And it was recorded as revenue, just like any other entry. The next 2 questions regarding advertisement. I would like to take these together first regards to print media. How much was invested in standard TV and media, et cetera, and also previous years figures? Another question, A1 invested a great deal of advertisement in television. What -- how is that broken down according to the [ ORF ] SAT, [indiscernible] service TV and A24 as well as other subsidiaries compared to also previous year's figures? To give you an answer, I would like to take both of these questions together the specific expenditures for ads is confidential -- subject to confidentiality agreements. But here, I can give you the figures from FOCUS Marketing Research, GmbH. These are the published figures, so we can provide the percentage figures as a percentage of the total volume. Regarding print media, the media group in Austria in 2019 for [indiscernible], has a 3% in 2020 and 3% as well for [indiscernible] standard 2019 was 3%. And in the year 2020, around 2%. [indiscernible] Media Group in 2019, 2%; and also 2020, again, 2%. Regarding television advertising, I can tell you that OE 24 was 1% 2019; again, 2020 1%. ServusTV, 2019, 1%; 2020, 2%. SAT1 Pro 7, 2019, 19%; 2021, 2%. ORF 2019, 90%; 2020, 35%. I also have 2 questions addressed to me. First has to do with the remuneration period as well as ESG criteria. What kind of direct link between the ESG criteria and success criteria? Our remuneration structure sees a direct link between the ecological criteria and the success criteria for STI. This is the short-term incentive plan for short-term goals, but also in the long-term incentive plan for long-term goals in STI. These are lean in 2020. And which provides a direct link to our sustainability strategy and the aspect environment, society and governance? The -- this is multiplied according to the [ attainment ] of the modified, and this is a corridor of 0.85 to 1.15. In the STI 2020, as I said, the modifier gives you a bit of leverage based on how the goals previously set out or achieved in STI 2020. 50% of the goals of the modifier remain above ESG goals that were achieved 100% implemented. Specifically, STI 2020, the following ESG goals were included. There, you can see this in our remuneration report under 3.2. This is establishment of an A1 Group internal ESG governance, audit of CO2 emissions, SBTI, the approval of the emission reduction path in LTI. Starting in 2020, ESG goals will be included to a considerable extent. 1/3 of the achievement of LTI 2020 depends on our future long-term financing from 2020 to 2022 and how this relates to green bonds under a sustainable finance certificate. All of the details are also included In the remuneration report under 0.3. As you can see, the ESG targets are particularly important to us. And we have also agreed on STI and LTI goals for 2021, and we've also included ESG targets there. Another question asked by the IVA, how many shares of A1 TA are held by management Board members? And how many compliance rules and the strict notification rules are the substantial reasons why Supervisory Board members do not hold on stock? Our works council representatives hold the following number of shares: Gottfried Kehrer, 123; Gerhard Bayer, 331; Alexander Sollak 915; Werner Luksch, 165. Well, basically, I do believe there is 1 outstanding question regarding the evaluation of the work of the Supervisory Board, but I do believe that Siegfried Mayrhofer has already answered the question, and he did an excellent job, so I do expect that this question has been handled. All right then, let's move on. I would like to continue with 1 additional question asked by [indiscernible] regarding the clearing amount, the book value of the Telekom Austria share. The answer is in 2020, the carrying amount was EUR 4.2 per share. Now [ 1 billion ] and accordingly, the pre-COVID level that was really necessary for the Telekom Austria Group. Next question, how many telephone booth were there available? At the end of 2020, there were 9,740 telephone booths. At the end of 2019, it was roughly more than 10,000. Nex question. How high was the damage suffered by telephone booths in 2020 and 2019? In 2020, there were 48 cases reported of vandalism, and the related costs were EUR 63,600 corresponding to an average loss or rather damaged claims of EUR 6.50. How much do you spend for SAP HANA? Well, right now, we are centralizing all opcos in A1 SAP system. And subsequently, altogether, approximate EUR 1 million in comparison to the same period 2019. At the end of in 2019, specifically, this was EUR 168.6 million. Now the valuation of participations of Bulgarian Belarus have been integrated in the trend and the development of tax relevant loss carryforwards. Now how many employees retired? And what was the average age in 2020? Roughly 40 retired sports sponsorings. Now for sponsoring at a group level, A total amount of EUR 8.9 million was spent. This is 16% less than in the previous year in Austria. A total of EUR 6.3 million was spent in Austria for sponsoring and donations. Out of this, EUR 4.8 million for sports, the largest part of this. How much is the cost savings shares by having the annual report online? Now this is still made available as a PDF file, but upon request, we do print this. We do print this internally, and this has to do with environmental reasons, really, the cost and amounted to EUR 75,000. In the previous 3 years, how many electronic cars, do you have and how many were acquired last year? How many were least? Answer, A1, in Austria, in 2020, held a total of 2 electronic cars, 26 additional vehicles as well as 9 hybrid cars in 2020. No new electronic or hybrid vehicles were acquired. However, for 2021, we plan to acquire 150 electronic cars to expand our electronic fleet. How many civil serve business? 16,000 mobile telephones. Next question, what subsidies were received, for example, from the EU or Austria? This question has already been answered. The same goes for the next question. How much do you spend on cybersecurity? Have there been any hacks? We have comprehensively answered this question before. Thank you very much. Now It's now 12:45. We're slowly coming to the end of the Q&A portion of our AGM. If you have any further questions, I would like to ask you to send them in during the next 15 minutes. You can see the timer on your screen. Also, I would like to ask you to submit any further motions within the allotted time. Motions received after this time frame cannot be considered. Now there was another question that was asked by Mr. [indiscernible]. He asked, are there any family ties between Our Supervisory Board candidate, Dr. Peter Kollmann, and a so-called D Kollmann at Deutsche Telekom? Yes, the answer is yes. Dr. Peter Kollmann and Ms. Dagmar Kollmann are spouses. Right now, virtual AGMs are limited to the end of 2021. One -- again, voting card 286, [ Christian Burm ] you talked about agility regarding leadership at all teams. You mentioned that in your presentation, what does that mean? They don't -- has -- does it mean that the employees don't have their own desk or own room or that they cannot exceed a certain age? So what exactly does agile leadership mean specifically? Allow me to -- I apologize for having used a technical term that may people perhaps are not very familiar with. It's not about employees having their own room or the own desk and has, of course, nothing to do with how old they are. That has nothing to do with agility, when you talk about an agile way of work, this means that employees who work on average. Fluctuate [indiscernible] for about 10 minutes, or 6 minutes. We'll pause the AGM for about 10 minutes or 6 minutes, about 6 -- a little over 6 minutes or so. We will be back after that time. [Break]

Welcome back. Now we're now going to continue answering Mr. Bega's questions. Morning Card 295, Mr. Berthold Berger. How much do you spend on IT and computer equipment in the general? I'm going to read out the answer in a minute. EUR 262 million OpEx. How much is bad debt? In 2020, 2019 and 2018, bad debt in the amount of EUR 34,969 were eliminated because there are 6A. Now the remark of Mr. Bega as regards to close proximity of Dr. Kollmann and his wife is very important. The restrict compliance rule and endangering such as standards could have been avoided before him. Therefore, the IVA is going to vote against these proposals. Please make sure you take due note of this. Still, I would like to comment on this. We are very happy that Dr. Kollmann has decided to run for reelection. Dr. Kollmann is not only a long-standing investment banker, but also, he is a member of the Board of Bond Ag and is therefore familiar with corporate governance, for example, and of course, confidentiality and secrecy are part of this. Due to his work as a Supervisory Board member, he has shown that he has always been -- voting card #2, the IVA. What percentage really was -- went to Corona and Korea? In 2019, 9% 2020, it was 6%. That was a follow-up question. Question to the back office. Are there any questions outstanding? Any questions that we are unable to see here on the panel, anything you have been -- you have received 1 more question. I'm afraid that we have to interrupt the meeting once again for 5 minutes, please. [Break]

[ 5.6 EUR ]. Thank you very much. Another question to our producers, are there any more questions? No, in fact, we've actually answered all of our questions. So here, I would like to close the question-and-answer period, and I would like to ask our proxies to read out any further motion to confirm that no other resolution proposals have been submitted, Mr. Beckermann.

Madam Chair, I have received no further motions.

Dr. Mayrhofer, Madam Chair, I have 1 motion from tape. This is a voting card 248. He echoes [indiscernible] motion on Item 6 of the agenda, in opposition to the reelection of Mr. Kollmann. Mr. Niss?

[indiscernible] Madam Chair, I have received no further notions.

Dr. Schulz?

[indiscernible] I have also not received any additional motions.

Thank you very much. The 7,350,610, this corresponds to 99.909% for, et cetera percent. Against, of 555,228 This is 0.90% number of shares valid share available for given for prospective numbers was 5,850,938, representative of the total share capital is 83.95%, I hereby state the motion was adopted with the required majority in the Annual General Meeting approve the appropriation of the net profit in line with the proposed resolution. As without the dividend will be paid out on the 25th of May 2021, the ex-dividend date is the 20th of May, 2021. In order to receive your dividend, the shares must be booked to your securities account by the end of the trading day on May 21, 2021. The dividend announcement will be made on the 18th of May 2021 in the official gazette of the Wiener Zeitung, the announcement on the company's website will be made immediately subsequent to this AGM. It is as are follows: for votes of EUR 553,745,705, this corresponds to 99.26%, against votes of 4,108,013. This corresponds to 0.73%. The number of shares available were given for respectively valid votes, 557,853,718, percentage of the total share capital 83.95%. I hereby state that the motion was adopted with the required majority and that the Annual General Meeting approved the remuneration of the members of the Supervisory Board for the financial year [ 2020 ] in line with the resolution proposal that has been read out. A gen item 6, elections to the Supervisory Board. We will now vote on the proposed members of the Supervisory Board individually. We vote on the proposal that Dr. Kollmann will be elected to the Supervisory Board until the Annual Meeting of results on the [indiscernible]. Instruction card Beckermann instruction card Nauer instruction card Niss. So the result of the vote is as follows. Yes vote: 557,428,261 corresponding to 99.92%. No votes, 423,850 corresponding to 0.07%. The number of shares for valid votes were given for respectively valid votes, 557,852,118, and the percentage of the total share capital is 83.95%. I hereby state that the motion was adopted with the required majority and that Ernst & Young Wirtschaftsprüfungsgesellschaft m.b.H. was elected as auditor and group auditor for the financial year 2021. Agenda item 8, resolution on the remuneration report. I will now put the proposed resolution on the approval of the remuneration report for the reporting year 2022 a vote. Who's against this motion? Instruction card Beckermann, instruction card Nauer, instruction card Niss. Does any 1 of staying from voting instruction card Beckermann, instruction card Nauer, instruction card Niss. Now the results of the vote is as follows, plus instruction card Schulz. Okay. Once again, The result of the vote on agenda item 8 is as follows: Yes votes, 556,977,001, corresponding to 99.87%, no votes; 716,546, corresponding to 0.12%. The number of shares which are valid votes have been cast, 557,693,547, and the percentage of the total share capital represented 83.9%. Now I hereby state that the motion was passed with the required majority, and that the Annual General Meeting approved the published remuneration report in accordance with the motion. Ladies and gentlemen, this concludes the agenda for today's Annual General Meeting. The voting results will be published on the company's website. Thank you very much for following today's virtual Annual General Meeting via the Internet. The meeting is now closed. I will now say goodbye to you, and wish you all the best and the buffer. Stay healthy. Have a nice weekend.