Introduction

  • Independent auditor's report
  • Financial and operational highlights
  • Letter from the Chairman of the Board of Directors
  • Calendar of key events in 2010

02
About Telefónica Group

  • About Telefónica Group – Introduction

03
Board of Directors' Report on Business Activity

  • Telefónica O2 Czech Republic Group
  • The telecommunications market in the Czech Republic
  • Networks and technology
  • Voice services
  • Internet, data and value added services
  • Convergent services
  • Payment services
  • ICT services, solutions for business and for the...
  • Interconnection
  • Comments on the financial results

04
Corporate Social Responsibility (CSR)

  • Corporate Social Responsibility (CSR) – Introduction
  • Business Principles
  • Market conduct and customer care
  • Caring for employees and the workplace environment
  • Caring for the environment
  • Supporting communities

05
Corporate governance

  • Corporate governance of the Telefónica O2...
  • Subsidiaries, associates and other ownership interests
  • The organisation of Telefónica O2
  • Governing bodies
  • Board of Directors
  • Executive management
  • Report by the Company's Supervisory Board
  • Supervisory Board
  • Audit Committee
  • Rules for the remuneration of persons with executive...
  • Other information relating to persons with executive...
  • Telefónica O2's Declaration of Compliance with the...
  • Information relating to matters according to Section...

06
Consolidated financial statements

  • Consolidated financial statements – Introduction

07
Financial statements

  • Financial statements – Introduction

08
Other information for shareholders and investors

  • Other information for shareholders and investors

Supporting communities

Community-oriented and philanthropic projects were deeply rooted in the Company’s CSR. Telefónica O2 strived to put its technology to use in helping to improve the quality of life. Already for the ninth year running, O2 Foundation was the key instrument in transparent and systemic corporate donorship.

In 2010, the Company took part in the 7th edition of TOP Corporate Philanthropist, awards given by the Donors’ Forum to businesses excelling in the field of CSR. Telefónica O2 ranked in the TOP 10 companies in the Czech Republic; in the quantitative category TOP 10 Corporate Philanthropist measured by the volume of philanthropic investment it stood in the sixth position. Philanthropic activities are measured using the LBG (London Benchmarking Group) Standard Responsible Company, which is a comprehensive and standardised system for the assessment of corporate philanthropy. The Personality of the Year sponsored by O2 was presented on the same occasion, already for the second year running. The award recognises individuals who had made an outstanding contribution to the development and promotion of Corporate Social Responsibility, for personal engagement in the non-profit or philanthropy sector in the Czech Republic.

The total value of donations, gifts and telecommunications services provided by Telefónica O2 to or for the benefit of community projects in 2010 exceeded the mark of CZK 33 million.

Regional grants and the O2 Foundation Award

In the 9th year of its regional grant programme, the O2 Foundation continued the tradition and distributed more than CZK 10 million among 54 NGO projects, from which more than 7 thousand children and young people benefited. The grants for amounts ranging from CZK 50,000-400,000 were awarded to projects in aid of socially and physically disadvantaged children and youth, their leisure activities, education and to projects aimed improving mobility and reducing barriers in communication. The 2010 O2 Foundation Award went to APLA (Association in Aid of People with Autism), specifically to its Prague, Central Bohemia, South Bohemia and South Moravia branches, for projects helping the development of children with autistic spectrum disorders.The O2 Foundation Award of CZK 1 million expresses a special recognition to a project that the Board of Trustees of the Foundation has found appealing for its effort to change the established social habits and open tabooed social topics.

Safety Line 116 111

Already for 16 consecutive years, the O2 Foundation was the general partner of this only national free and anonymous helpline for children in difficult life situations. In 2010, the O2 Foundation was also the general partner of the concert benefit for the Safety Line. Television viewers sent donor SMS, raising more than CZK 800,000. The benefit yielded over CZK 8.6 million with Telefónica O2 becoming the largest donor with CZK 4.65 million donated through the O2 Foundation.

Senior Line

The O2 Foundation continued in its support to Senior Line operated by Elpida Plus. Senior citizens could dial the number 800 200 007 and share their concerns and joys, consult on various issues – health, legislation, psychology and welfare. In 2010, the helpline answered more than 27,000 calls, of which more than 3,500 were of serious nature. The funding from the O2 Foundation helped to keep the service free of charge. The O2 Foundation, in partnership with Elpida, ran an outreach campaign Let’s Talk about the Elderly – Leave My Grandmother Alone to stimulate dialogue between generations and to draw the public attention to the frequent stereotyping of age in the society.

Stop Bullying!

The programme has been successfully ongoing in more than 60 schools, where teachers are systematically trained for several months to acquire skills that will come useful in recognizing and fighting bullying. The programme is funded from several sources; for the most part from European Social Fund. In 2010, the O2 Foundation focused mainly on awareness raising and cyberbullying was the main subject. In collaboration with Aisis, the main implementer of the programme, O2 Foundation executed a nationwide awareness raising campaign in all elementary schools in the Czech Republic. Teachers, parents and pupils received information about how to fight cyberbullying and what can be done against it.

O2 Duck Race

In 2010, O2 Foundation ran a fundraising project to benefit the Safety Line and the Senior Line, and to raise awareness of these two organisations among the Company’s customers. Anybody could come to an O2 brand store and buy a yellow duck for CZK 60 – Telefónica O2 did not take a cut of the proceeds and CZK 60 for every duck went to help the Safety Line and the Senior Line. The Safety Line and the Senior Line received CZK 548,448 and CZK 137,112, respectively.

Volunteer programmes for employees

Creating opportunities for employees to actively engage in activities for public good, including helping out with O2 Foundations projects, is an integral part of the Company’s own CSR, through which it aims to develop corporate volunteering.

In 2010, a record 3,048 employees, which is 54% more than in 2009, got involved in the projects of the O2 Foundation. As for employee volunteering, Telefónica O2 Czech Republic achieved the highest level of engagement among Telefónica Europe companies.

In 2010, employees also participated in successful fundraising campaign; a total of CZK 2,135,058 was raised from 2,371 employees. The most successful fundraiser was the one for the benefit of the victims of August 2010 floods in North Bohemia with a total CZK 703,153 raised; second, with CZK 631,655, came the fundraiser to benefit Haiti, which had been stricken by a catastrophic earthquake. Telefónica O2 matched both of these amounts by almost 100% and donated the funds to the needy families by way of the People in Need relief organisation. During 2010, employee donations turned around the lives of eighteen people who were able to buy necessary health aids. Customers also gave support to the Safety Line, Senior Line and helped children in Latin America.

Employees regularly participated in volunteer events and helped with their time, knowledge and skills.

Corporate teambuilding events turned into volunteer events – managers and their teams worked in non-profit organisations. In 2010, 725 employees (17 teams) donated 5,800 hours of work to non-profit organisations. Seven times more employees volunteered in 2010 than in 2009. 81 employees donated their personal free time: they spent 700 hours organising leisure activities for children from children’s homes; 238 helping out in Thomayer Hospital in Prague; and 194 hours organising and helping out at swimming competitions for severely disabled athletes. They also spent 1,680 hours assisting the O2 Foundation’s principal grant programme – they sat on regional committees and selected the best projects from NGOs, among which the foundation distributed CZK 10 million.

The O2 Foundation also recognised those employees of the Company who were active volunteers in their personal free time. Their service to the community earned CZK 400,000 to 22 employees in 2010, which was in turn donated to the non-profit organisations they worked with on a long-term basis.

Easter and Christmas markets, which were organised by the O2 Foundation in twelve of the Company’s buildings in the Czech Republic, products hand-made by people with disabilities in sheltered workshops were sold to employees. In 2010, employees spent close to CZK 550,000 on products from sixty sheltered workshops.

Proniño international volunteer programme

Volunteer activities of employees in 2010 again transcended the limits of the Czech Republic as six employees of the Company participated in the international volunteer programme Proniño implemented by Telefónica in Latin America. Altogether thirty volunteers hailing from all countries where Telefónica operates were sent to Ecuador, Brazil, Guatemala, Argentina and Colombia. After arriving to their destination their role was to add meaningful content to the free time of children who, once their school finishes, either roam the streets or have to work. Employees volunteered their personal vacation time, each donating more than 252 hours of their free time.

Give Blood with O2

Also the project Give Blood with O2, continued in 2010, seeking to promote voluntary blood donorship in the Czech Republic. During the year, 140 employees participated and collectively donated more than 113 litres of blood. Blood donations took place in Company premises.

Fair Trade

The project Be Fair with O2, which focused on promoting Fair Trade products and services, continued also in 2010. Employees, customers and the general public could help the people in the poorest countries on the planet by buying Fair Trade products at a number of events organised by Telefónica O2 in 2010: Christmas and Easter markets of products made in sheltered workshops and Fair Trade products, Employee Blood Donation Days or the Open Air Festival, where people could learn about Fair Trade and help by buying them. In 2010, employees of Telefónica O2 purchased Fair Trade products in the value of CZK 100,000 and helped in the fight against poverty and child labour. A total of 5 thousand employees were involved in supporting Fair Trade. Fair Trade products were also used as courtesy gifts for conference participants and as Christmas gifts for business partners. In 2010, employees could also buy Fair Trade products at cut-rate prices through the e-shop, and order Fair Trade and ethnic catering for various corporate events.