Sustainable Business ReportVodafone Czech Republic, a.s. 2018 – 2019

We connect for a better futureCEO Commitment

Vodafone’s purpose is to connect for a better future. It is supported by ourcommitment to improve one billion lives through an inclusive digital society, whilehalving our environmental impact by 2025.

As the CEO of Vodafone Czech Republic, I am pleased to share our Sustainable BusinessReport 2018-19, which outlines our progress towards our sustainable business strategy andtargets. It is clear that our focus on diversity and inclusion, youth skills and jobs and energyinnovation is having a positive impact on our customers, our colleagues and thecommunities in which we work. I am pleased with our progress and would like to highlightsome of the programmes and initiatives that are driving that success, including:

• Since 2011, Vodafone has been purchasing 100 % green energy in the Czech Republic. Now we are raising climate awareness with our partners and supply chain.

• In 2018-19, 13,048 tonnes of CO2e were saved thanks to Vodafone Czech Republic IoT technologies and services. This is almost our entire carbon footprint.

• 676 participants engaged in our work experience presentations at job fairs, resulting in 56 internships.

• 1000+ young students applied for our Future Jobs programme.

• We partnered with INSPO, the biggest ICT conference for people with special needs, where we provided HR trainings.

This is a great start, and we look forward to more success in the future!

Petr Dvorak CEO, Vodafone Czech Republic, a.s.

3Sustainable Business Report 2018 – 2019

Our Contribution to Digital Czechia

In the last 6 years

Vodafone Czech Republic drives impact through the provision of and investment inhigh-performing mobile networks, which provide the foundations for the digitaleconomy, and acts as a catalyst for a diverse and innovative range of services.

35.82 billion CZK invested in Digital Czechia and the state budget

3.155 billion CZK paid to shareholders

2.07 billion CZK Investment

14.1 billion CZK Revenues

2018/19

4Sustainable Business Report 2018 – 2019

Gigabit Leader with Social ImpactAn increasing number of people are moving beyond voice to take up mobile internet services, enabling them to participate in the digital economy. Our mobile technology hasenabled a range of life-enhancing services such as mobile financial services and mobile health. Meanwhile, new and emerging areas such as IoT, big data and artificialintelligence are demonstrating their potential for transformative impacts on lives.

3.9 million customers

1.5 millioncompany SIMs

Vodafone Business brand

introduced

Fixed connection for 4 millionhouseholds

5G trial at the Karlovy Vary International

Film Festival

Digital AI Assistant Tobi (helps 1800 customers a day)

TOP ResponsibleCompany Award 2018

7,500 hours of employeevolunteer work

Company policy to help domestic violence victims

195 million CZK invested

500 projects supported

Covers 99.4 % populationin the Czech Republic

Our mobilenetwork

The Company Purpose-led Vodafone

Vodafone FoundationP3 Communications Best inTest Voice and Data Network

Pass

Introduction of Vodafone Pass(Chat, Music, Video, Cloud)

5Sustainable Business Report 2018 – 2019

The Power of Mobile Connectivity

Vodafone s mobileconnectivity continuesto transform the lives ofmillions. More than two-thirds of the globalpopulation are nowconnected to mobile,making it one of themost far-reachingtechnologies worldwide.With its unprecedentedscale and growingimpact on daily lives,mobile is a powerful toolfor achieving the UnitedNations SustainableDevelopment Goals(SDGs), helping toimprove healthcare andeducation, drivesustainable economicgrowth and innovationfor the benefit of societyand the climate.

6Sustainable Business Report 2018 – 2019

Vodafone as Sustainable Business

Vodafone began defining its Strategic SustainableBusiness Framework at the same time as the UNapproved its Sustainable Development Goals (SDG), a setof 17 goals and 169 targets that constitute the 2030Agenda for Sustainable Development. Governments,enterprises, third-sector institutions, and society ingeneral are all required to be involved in order tosuccessfully address the crucial social andenvironmental challenges that the world faces right now.

Telecommunication disseminates information, facilitatesthe use of information and enables disadvantagedgroups to access products and services. Moreover, itcreates significant opportunities in various fields such asdeveloping tools for effective environmentalperformance management, facilitating daily life, andimproving the mobility of people. At Vodafone CzechRepublic, we have a direct and indirect effect, andprovide a significant positive impact on the lives ofindividuals and organisations – hence direct digitaltransformation. While preparing people for a betterfuture, we focus on the areas where we can mosteffectively use the potential of the sector we operate into create value.

7Sustainable Business Report 2018 – 2019

Our Strategy in the Czech Republic

Energy Innovation Youth Skills & Jobs

Tax and TotalEconomic

Contribution

Digital Rights,Freedoms

and Security

Principles and Practice

2025 Transformation

Transparency

EnvironmentValue Chain

Diversity & Equality Diversity & Equality

Our purpose is to connect everybody to livea better today and build a better tomorow

Energy Innovation

Youth Skills & Jobs

The main transformational goals we are focusing on until 2025:

The local Vodafone Czech Republic Sustainable Business Strategy 2025 is fully aligned with Vodafone Group global strategy, and localises the content of each element based onknowledge of the local context. We have also embraced the Sustainable Development Goals (SDGs), and in 2016 became an active member of the United Nations Global Compact.

We help customers to become more sustainable and environmentally friendly. In addition, wemonitor our own organisation. We are very much aware that our business operations affect theplanet, and so we do our part in contributing towards a sustainable and circular economy. To thatend we focus, among other things, on the Sustainable Development Goals (SDGs).

8Sustainable Business Report 2018 – 2019

The Vodafone Czech Republic 2025 transformation goals are:

DIVERSITY & EQUALITY

We are working to extend the economic and socialbenefits of mobile technologies to more women,differently-abled people, the elderly, and peopleregardless of their gender, religion or cultural origin.

• To strive to be the world’s best employer for women

• 30% of our senior Vodafone leadership women

• Enrol more differently-abled employees

• Support LGBT employees and the open society movement

ENERGY INNOVATION

We see the potential of communicationstechnology to help with emissions reductionand the fight against climate change.

We are focusing our efforts in:

• 100% renewable purchased electricity

• 40% reduction in CO2 emissions

• continuous innovation in the design of our networks and technology centres

YOUTH SKILLS AND JOBS

We help ensure that young people have the skills to prosper in a digital working world. Our goals are:

• Support 10 million young people to access digital skills and job opportunities

• Expand existing graduate, apprenticeship, internship and work experience schemes worldwide, to reach up to 100,000 young people.

• Provide digital tools for labour market integration for youth

Diversity & Equality

10Sustainable Business Report 2018 – 2019

Our Focus on Diversity and Equality DIVERSITY AND EQUALITY. Highlights:

Vodafone Czech Republic initiatives include measuring and promoting diversity in the workforce and management as well as preventing discrimination in promotion, hiring, training and compensation. Gender inequality in the mobile industry is one area of increased focus, aswell as the employment of differently-abled people and the well-being of gender minorities.

WOMEN

1 210 Employees participated in the Diversity week

2 We provided anti-bias online training

3 Global maternity policy to enhance early return to work on place and 62.5% of mothers returned from maternity leave with a part-time contract

4 Reconnect program for women after a career pause has been used by 14 women

Women 2018-19 Target Actual

Top Leadership 33% 0%

Senior Management 26% 18%

Heads of Departments 32% 28%

LGBT

1 Full equality of registered LGBT couples to heterosexual couples in Vodafone directives and labour conditions

2 Guides for Coming Out and Transgender issued

3 LGBT social networks groups are active

4 Employees actively participate in LGBT activities: Prague Pride, Fun&Run, the Jsme Fér campaign

PRIDE

11Sustainable Business Report 2018 – 2019

Our Focus on Diversity and Equality

AGE MANAGEMENT

The Internet Is Our Friend - Employee Volunteers’programme to enhance the digital skills of elderlypeople. Jointly with Život 90 NGOs, they have developedlearning materials, and they train the elderly insheltered accommodation homes throughout Czechia.

DIFFERENTLY ABLED PEOPLE

1 Campaign for Internal awareness has been launched and microsite created

2 Vodafone with the Vodafone Foundation partnering the biggest ICT conference in the Czech Republic INSPO campaigns: 500 participants, Vodafone HR Corner for major work integration of differently abled people

3 Accessibility efforts are postponed after company merger and introduction of new systems and optimisation of old ones

Energy Innovation

13Sustainable Business Report 2018 – 2019

Towards a Green Planet with Energy Innovation

2006/07

2007/08

2008/09

2009/10

2010/11

2011/12

2012/13

2013/14

2014/15

2015/16

2016/17 2018/19

2017/18

40,000

35,000

30,000

25,000

20,000

15,000

10,000

5,000

0

CO2

2006/07

2008/09

2010/11

2012/13

2014/15

2016/17

2018/19

90,000

70,000

50,000

30,000

10,000

0

The electricity supplied to our base stations, switching and data centres,is supplied via the national electricity transmission network. Since 2011,we have only been purchasing green energy generated from renewablesources: water, solar, wind power, biomass, and biogas. However, 40% ofour base stations are at leased or shared locations, and so we cannotinfluence the type of energy purchased (see chart Electricityconsumption in the network).

Providing communications services requires significant amounts of electricity. Every additional device connected, and gigabyte of data transmitted or stored represents a potential increase in energy needs. There is clear evidence that man-made greenhouse gases (GHGs) are having a direct impact onclimate. We support the view that urgent action is needed to address climate change.

Conventional electricity (MWh)

Green electricity (MWh)

14Sustainable Business Report 2018 – 2019

ENERGY INNOVATION. Our focus:

• Continue our green energy purchasing policy

• Continuous innovation in the design and operation of our most power-intensive infrastructure – our access networks and technology centres

• Reduce carbon footprint of our general business/ administrative activities (chart: paper, fuels)

15Sustainable Business Report 2018 – 2019

ENERGY INNOVATION. Internal goal:

2012/13

2013/14

2014/15

2015/16

2016/17

2017/18

7,000

6,000

5,000

4,000

3,000

2,000

1,000

0

2009/10

2010/11

2011/12

2012/13

2013/14

2014/15

2015/16

2016/17 2018/19

2017/18

1.200,000

1.000,000

800,000

600,000

400,000

200,000

0

2008/09

2009/10

2010/11

2011/12

2012/13

2013/14

2014/15

2015/16

2016/17 2018/19

2017/18

25

20

15

10

5

0

CO2

number of cars

390 393 343 340 296 246 244 244 236 232

6,090

3,347

1,193

483 326

2018/19

157237

19.96 19.45

17.4

4.45

14.52

3.92

12.43

4.13

10.83

2.77

6.44

2.04

5.86

2.43

4.45

1.8

3.7

1.26

2.35

1.29

Seek to reduce to the lowest level possible the power used – and associated greenhouse gas emissions generated – by our own operations:

Reduce energy consumption/CO2 footprintper transmitted data (see chart CO2e perpetabyte of traffic in Vodafone CZ network).

Reduce fuel consumption/CO2 footprint in carfleet (see chart Vehicle fuel consumption).

Reduce paper consumption not only due to digitalization (seechart Office paper in tonnes).

petrol diesel Recyclated paper Non-recyclated paper (70% recycled fibers) (20% recycled fibers)

16Sustainable Business Report 2018 – 2019

ENERGY INNOVATION. External goal:

2018 - 2019

13,048 tonnes CO2e

2017 - 2018

5,165 tonnes CO2e

2016 - 2017

317 tonnes CO2e

Drive energy and carbon efficiency gains across our enterprise and consumer customer base through continued innovation, namelyInternet of Things (IoT): Increase CO2e emission savings of our customers comparing to the previous year thanks to IoT solutions (seechart Customers’ savings in tonnes of CO2e).

Carbon footprint reduction in Czechia via Vodafone Internet of Things (IoT) CO2e savings of Customers.

Youth Skills & Jobs

18Sustainable Business Report 2018 – 2019

YOUNG PEOPLE ARE OUR FUTURE

YOUTH SKILLS AND JOBS. Our focus:

Mobile technology has a special role as a tool for young people, giving them a voice online when they may struggle to be heard in their community and thebroader society. Uniquely, Vodafone has an opportunity to engage with today’syoung people to shape the economic and political future of our society.

High levels of youth unemployment and a growing digital skills gap are significantsocial and economic challenges. Our What Will You Be? programme aims to helpyoung people develop their digital skills and access learning and employmentopportunities so they can thrive in the digital economy.

• Being an enabler for young people and giving them a voice within Vodafone.

• Using our technology – through learning and jobs services – to help young people develop.

• Help young people navigate the complex and changing job market.

19Sustainable Business Report 2018 – 2019

YOUTH SKILLS AND JOBS. Internal Goal:

Help young people find their idealcareer path in the digital sector

• We have built a strong group of around 680 students who are candidates for internships (56), apprenticeships (16) and Discover positions.

• We have created internal rules for the employment of young people to encourage managers to hire students and graduates.

• We have taken part in four job fair workshops at Universities; and organised many events at our HQ (over 420 young people have attended).

20Sustainable Business Report 2018 – 2019

YOUTH SKILLS AND JOBS. External Goals:

Build the skills youngpeople need for thedigital future

Drive innovations andsocial engagement foryoung people

Promote cyber security among youngpeople and reduce the risks they face inthe digital world

• More than 1000 young students applied for Vodafone’s "Future Jobs". Net reach of campaign plus one million.

Rescue drone pilot

Pro gamer

Smart Fashion Designer

• Redesign of website Digital Parenting.

• Lecturing on Digital Security within Vodafone: 15 workshops, 300 people.

• The “Vodafone Foundation Laboratory” 2018-19 startup programme involved 40 teams (120 people) with social innovation projects.

• Vodafone Nápad roku partnership – 174 startups participated in the oldest startup competition in Czech Republic.

Sustainable Business Report

2018 – 2019

Vodafone Czech Republic, a.s.nám. Junkových 2Prague 5, 150 00Czech Republic

Contact:

Adriana DergamHead of Corporate Communication and Sustainabilityadriana.dergam@vodafone.com

www.vodafone.cz/udrzitelne-podnikani/

Graphic design: SKALIN&LAYOUT