Introduction

  • Independent auditor's report
  • Interview with Luis Antonio Malvido, the Chairman of...
  • Financial and operational highlights
  • Calendar of key events in 2011

01
About Telefónica Group

  • About Telefónica Group – Introduction

02
Board of Directors' Report on Business Activity

  • Telefónica O2 Czech Republic Group
  • The telecommunications market in the Czech Republic
  • Consumer segment
  • Business and SME
  • Corporate and government
  • National and international wholesale services
  • Payment services
  • Comments on the financial results

03
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

04
Corporate governance

  • Corporate governance of the Telefónica...
  • Subsidiaries, associates and other ownership interests
  • The organisation of Telefónica CR
  • 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 CR's Declaration of Compliance with the...
  • Information relating to matters according to Section...

05
Consolidated financial statements

  • Consolidated financial statements – Introduction

06
Financial statements

  • Financial statements – Introduction

07
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 CR strived to put its technology to use in helping to improve the quality of life. Already for the tenth year running, O2 Foundation was the key instrument in transparent and systemic corporate donorship.

In 2011, the Company took part in the 8th edition of TOP Corporate Philanthropist, awards given by the Donors’ Forum to businesses excelling in the field of CSR. Telefónica CR 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 fourth position. ‘Responsible Leader 2011’, an award sponsored by Telefónica Czech Republic, was presented on the same occasion.

The total value of donations, gifts and telecommunications services provided by Telefónica CR to or for the benefit of charitable projects in 2011 exceeded the mark of CZK 52 million.

Think Big

In 2011, the O2 Foundation started Think Big, a new social programme which succeeded the scheme of Regional Grants.

The goal of the long-term programme is to support informal groups of young people in making their ideas and projects, through which they want to change, improve or create something of value in their own community, into reality.

The first call for Think Big projects garnered 276 project proposals, of which 100 were chosen for some of the total pie of more than CZK 5.3 million. Teams of young people qualified for grants ranging from CZK 10,000 to CZK 90,000, weekend courses, telecommunications packages from the Company and mentoring from employees of Telefónica CR.

Grant applications were reviewed by nine regional committees, each comprising two employees of the Company, one expert in non-profit and youth leisure activities, one media representative and one young person already with some experience with implementation of such projects.

Projects that received financial support were announced at the programme website www.o2thinkbig.cz

Safety Line 116 111

Already for seventeen years running, the O2 Foundation was the General Partner to the only free and anonymous helpline for children who are faced with a difficult life situation. In 2011, the O2 Foundation co-hosted the Safety Line benefit concert for the third time. Television viewers sent donor SMS, raising more than CZK 450,656. The benefit yielded over CZK 7.5 million with Telefónica CR becoming the largest donor with CZK 3.5 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 2011, the helpline answered more than 28,000 calls, of which more than 4,300 were of serious nature. The funding from the O2 Foundation helped to keep the service free of charge.

Stop bullying!

Also in 2011, the O2 Foundation partnered with the programme to stop bullying in schools. A national competition ‘Children Say NO to Bullying’ was held in collaboration with Aisis, the programme’s main organiser. Fourteen schools entered the competition with their ideas, which were evaluated as to their inventiveness and communication potential. The winners in 2011 were the children from the 28th Elementary Pilsen.

Volunteer programmes for employees

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

In 2011, a record 2 374 employees volunteered in various community-oriented activities. As for employee volunteering, Telefónica CR achieved the highest level of engagement among Telefónica Europe companies.

In 2010, employees also participated in successful fundraising campaign; a total of CZK 1,367,288 was raised from 1,530 employees. The most successful fundraiser was the one to benefit of the victims natural disasters: a total of CZK 394,265 was raised for the victims of tsunami in Japan, and CZK 352,898 went to help the victims of Somalian famine. Telefónica CR matched both of these amounts by 100% and donated the funds to the humanitarian relief organisations Adra and People in Need.

In 2011, employee donations also helped to turn around the lives of sixteen people who were able to buy necessary health aids with the fundraiser proceeds of CZK 494,000. Employees 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, 933 employees (16 teams) donated almost 7,500 hours of work to non-profit organisations; 132 employees donated their free time. The largest part of the total 4,755 hours was spent by employees mentoring young people in the Think Big programme.

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 18 employees in 2011, which was in turn donated to the non-profit organisations they worked with on a long-term basis.

On 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 2011, employees spent close to CZK 450,000 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 CR 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 Foundation

Also the project Give Blood with O2 Foundation continued in 2011, seeking to promote voluntary blood donorship in the Czech Republic. During the year, 156 employees participated and collectively donated more than 70 litres of blood. Blood collection took place in Company premises.