TELENOR FOUNDATION ANNUAL REPORT ON BUSINESS OPERATIONS IN 2014

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TELENOR FOUNDATION ANNUAL REPORT ON BUSINESS OPERATIONS IN 2014 1

INTRODUCTION Telenor Foundation contributes to the development of the society by initiating, supporting of and inclusion in strategic, long-term and sustainable socially - responsible projects. The Foundation is implementing the mentioned activities in cooperation with partners, with the support of cross-functional teams. Telenor Foundation activities are focusing on support for socially vulnerable groups in Serbia, as well as the youth for the purpose of their educational and professional development in circumstances of dynamic progress of the modern society. The Foundation is also giving its contribution to the decentralisation of art and cultural creativity, as well as overall ecological development. Transparent and public partnerships with state institutions and non-profit organisations are made by the procedures defined in our Statute. The team in charge evaluates and selects the received ideas according to clear standards, which are then presented to the Board of Directors of Telenor Foundation. It's up to the Board to decide at its regular sessions which ideas will be supported. Our partners are obligated to submit for the Board's review a public report on their work and a detailed survey of their results. STRUCTURE OF THE BOARD OF DIRECTORS Management Board of Telenor Foundation has five members, out of which two are representatives of Company Telenor. CEO of Telenor d.o.o., Ove Fredheim presides over the Foundation Board of Directors, who during his 20 years of professional work was engaged on different management positions in Telenor companies in Hungary, Norway and Ukraine and was a member of the Management Board of Telenor Montenegro and member of the Executive Commission of DiGi mobile operator in Malaysia. Sandra Štajner, Chief Communications and Human Resource Officer, Telenor d.o.o. She gained her years of experience in communications by working for companies and as an independent consultant domestically and abroad. While holding these positions she was actively involved in corporate affairs and public relations, and she carried out a large number of important corporate social responsibility projects.. Darinka Radojević, Kirilo Savić Institute - CEO Advisor for the environment. Ms. Darinka Radojević holds MBA degree from Faculty of Technology and Metallurgy, University of Belgrade. During the years she gained valuable experience in business and education sector, and is specialised in coordination of multidisciplinary projects, cooperation with government institutions, local self-government and civil society. As a Head of the Group for Sustainable Development within the office of vice president of European Integration Office Ms. Radojević gain experience in the fields of environment and sustainable development, and in the period from 2008 to July 2011 she was the Secretary of the Council for Sustainable Development. Professor Slobodan G. Marković, Ph.D, associate professor at the Faculty of Political Science (teaching Political Anthropology) and Senior Research Fellow at the Institute for European Studies in Belgrade. He worked for a number of years in the nongovernmental sector and was involved in numerous social actions. Veran Matić is the founder and editor-in-chief of TV B92. As a journalist he worked for many alternative and youth media in Belgrade, Zagreb and Ljubljana, as well as many 2

European and American media (The New York Times, Le Monde, The Wall Street Journal, etc). He won international reputation for his dedication to responsible journalism and positive social change. He has initiated and implemented many socially responsible actions and projects. Ivana Matijević, Manager of Telenor Foundation and External Affairs Manager in Telenor d.o.o. She started her career in Telenor in 2008, working on various projects of corporate development in cooperation with government institutions. Ivana worked on the creation of structured approach to the problem of environmental protection by initiating projects in the social responsibility sector. FIELDS OF WORK From the very beginning of its operation, Telenor Foundation analyses needs of the Serbian society. That is why the activities of Telenor Foundation are directed to 4 basic areas: Youth, their education and professional advancement Socially vulnerable groups Development of cultural production and art market Environmental protection Our engagement in these fields is not related only to financial assistance, but rather, with our capacities and knowledge, we strive to contribute to the successful implementation of projects offering effective, sustainable and developmental solutions on the territory of the whole Serbia. Irrespective of a large number of different activities, in its basis Telenor Foundation has a single goal to help the Serbian society move forward and develop, which is the foundation of our corporate socially responsible business operations. REVIEW OF THE PROJECT ACTIVITIES IN FIELDS OF WORK In 2014, Telenor Foundation initiated and supported 28 projects and cooperated with 48 partner organisations. 4.1 Project Activities and Achieved Results Category Youth and Education Internet for All - Schools in Vračar By improving the internet connection we have renewed cooperation with all the schools in the Belgrade municipality of Vračar, where, starting from 2009, we have equipped all the elementary, secondary and professional schools and library with computers and free internet. Schools received complete IT equipment with access protection for adultoriented content. 3

Stop Digital Bullying Partnership with UNICEF and the Ministry of Education, Science and Technological Development on the project "Stop Digital Bullying" continued in 2014. This project represents our most important initiative aimed at promoting quality educational and entertainment content on the Internet, but also on continuously raising awareness of the existence of digital bullying, and spreading knowledge on how to protect from it. Taking in account awareness of the influence of Facebook on children and its omnipresence, with partners we created the Facebook page "Choose Your Words, Stop Hate Speech". Using various social networks activations, we encourage children to promote and spread positive messages and quality content on the Internet, and at the same time to raise the voice against bullying. In October 2014, our project was presented at the second "Teen Talk" conference, which deals with social, cultural, consumer and communication needs and expectations of young people aged 13 to 19. The panel "Post Positive: How to Be Cool Online" encompassed issues of the value system in the virtual and real world, the way we react to the bulling, how much we believe in communication that occurs on social networks, and how the hate speech arises, or how to stand up to him in the virtual world. Panel moderator was Ana Mirkovic, CEO of Digital Marketing Institute, and inspired interlocutors: Dušan Borković, car driver Boris Trivan, well-known blogger and twitter, Marko Dražić from News.Net, Srđan Dinčić, humorist and stand up comedian, as well as Lazar Radosavljević and Nikola Cimbaljević, students of the Faculty of Mathematics in Belgrade. Digital Postcard Thanks to the support provided by the Telenor Foundation to the project called Digital Postcard, students of the School of Design from Belgrade were given the opportunity to get acquainted with the new computer technologies necessary for their further education and improvement. With the donation of funds for 20 computers, 6 digital cameras, as well as the donation of Telenor Internet, Telenor Foundation supported the idea to create a digital cabinet from the most modern computers and computer programs from the unused space, where 200 students were trained in digital processing of photographies. As part of the project, students of the third grade of the School of Design selected significant places in the city and presented them to their colleagues in Networks of Art Schools of the Central European Initiative. Students photographed the selected places, graphic edited photographs, devised appropriate slogans for them, and sent them at the addresses of young artists in Europe. In return, they got from their colleagues photographs of selected locations from the cities they live in. This project was supported by the Belgrade Tourist Organization, and its further realization implies the expansion of the network of users and tasks integrated in the curriculum and curriculum of graphic design, photography, multimedia art and computer techniques. Complete graphic material presented at the traveling exhibition, which visited Trieste, Linz, Budapest, Zagreb, Ljubljana, Cetinje, Košice, Senta and Belgrade. Be in the Loop hanks to the support of Telenor Foundation, children undergoing shorter or longer hospital treatment at the Institute for Orthopaedic-Surgical Diseases Banjica will have the opportunity for entertainment by following the school program on the internet or by browsing interesting contents. 4

The aim is to ensure possibility for children in hospitals to constantly advance their knowledge, just like their peers who attend regular schooling do. Children also got access to the Super School (Superškola) programme, a virtual classroom with over 650 lessons in the Serbian language, mathematics, physics and chemistry, which will help them make up for the lessons they missed. The educational portal also includes lectures, experiments and explanations so that the children can more easily learn school materials from the fifth to eighth elementary grade. Youth Club in Užice and Info Center in Lešnica After Požega, Loznica, Priboj, Raška and Nova Varoš, Užice olso got its Youth Club which includes Internet Club. The Club is located within the City Cultural Center, and Telenor Foundation has provided ten laptops, as many modems with unlimited Internet access for a year, as well as a printer. Within the Youth Club, 3D animation workshops, online jazz schools, school of journalism, computer training, training for young people with visual impairments for computer use are available and more. The project was implemented in cooperation of the Ministry of Youth and Sports of the Republic of Serbia, the City of Užice and the Telenor Foundation. In October, we opened the Info Center of the Youth Office in Lešnica, which is equipped with five computers, printers and modems. With the support of the Telenor Foundation, thanks to computer equipment and unlimited Internet access, the youth in Lešnica has been enabled to improve computer literacy and acquire new knowledge. Within the Info Center, various courses will be organized, career planning support, activities on social inclusion, and interested parties will be involved in workshops for developing team work and planning local actions. Professor Dr Ilija Stojanović Awards Traditionally, Telenor Foundation presented the best students of the Department of Telecommunications, authors of the best expert papers for the TELFOR 2014 and of the best scientific paper published in an international magazine with Prof. Dr Ilija Stojanović Awards. In recognition of their success, they were presented with monetary prizes, tablets and unlimited access to the Telenor Internet for a year. For the past eight years, Telenor Foundation has supported 59 students and experts, and we are pleased that through this, as well as other different programs, we contribute to the education of young people and we are continually investing in them. The Award Prof. Dr Ilija Stojanović was established by Telenor Foundation in 2007 in memory of the Academician Professor Dr Ilija Stojanović, who also gave significant contribution to the development of company Telenor. He was a pioneer of modern telecommunications in the space of former SFRY and today s Serbia and was the founder of the Department of Telecommunications at the Faculty of Electrical Engineering in Belgrade. Get to Know the State of Serbia Project Thanks to the project "Get to Know the State of Serbia", implemented by the National Alliance for Local Economic Development in partnership with Telenor Foundation and the Representative Office of the Republic of Srpska in Serbia, students from the diaspora successfully completed practice in local governments and companies in Serbia for the fourth time. More than 20 students from Canada, Denmark, Austria, Greece, Slovenia and the Republic of Srpska had the opportunity during three weeks to meet the organization and operation of public and private sector in Serbia, with economic, tourist and cultural 5

potentials of the country, and through the exchange of knowledge and experience contribute to local economic development, regional cooperation, between two republics and strengthen ties with the diaspora. More than 80 young people participated during four years of implementation of the project "Get to Know the State of Serbia". At the closing ceremony at the Vila of Republic of Srpska in Belgrade, students were presented with certificates, and the President of NALED Governing Board Vladan Atanasijević gave thanks to the project partners as well as local self-governments hosted by students - Leskovac, Pirot, Pančevo, Kragujevac, Trstenik, Jagodina, Nis, Pancevo, municipality Stari Grad, Zvezdara, Cukarica and Zemun. At the closing ceremony at the Villa of Republic of Srpska in Belgrade, students were presented with certificates, and the President of the Board of Directors from NALED Vladan Atanasijević gave thanks to the project partners as well as the local selfgovernments which hosted students - Leskovac, Pirot, Pančevo, Kragujevac, Trstenik, Jagodina, Niš, Pančevo, the municipality of Stari Grad, Zvezdara, Čukarica and Zemun. 4.2 Project activities and achieved results category socially vulnerable groups Support for HISPA Centres for Hypertension and the Prevention of Heart Attack and Stroke In order to contribute to the improvement of the health of our citizens, in 2014 we supported the opening of HISPA centres throughout Serbia. One of the first was opened at the Clinic for Cardiology of the Clinical Centre in Kragujevac. By the beginning of work of HISPA centres, diagnosis and treatment of patients with hypertension, as one of the leading causes of heart attack and stroke, are performed, through a multidisciplinary and individualized approach. Association of Centres for Hypertension and the Prevention of Heart Attack and Stroke (HISPA), whose member is also newly opened centre within Clinical Centre in Kragujevac, aims to identify, diagnose, cure and long term monitor patients with increased cardiovascular risk through the coordinated and integrated work of these centres. HISPA Center in Kragujevac is the 24th in Serbia, and the second centre at the tertiary level of health care, next to the Institute for Cardiovascular Diseases "Dedinje" in Belgrade. Donation for "Eco-Yard" Thanks to the donation of Telenor Foundation, ECO-YARD has been reconstructed and serves again its initial purpose it is one of rare places where young people from Obrenovac and its surroundings can gather and spend their time in high-quality activities aimed at the preservation of the environment. The reason for the donation to this centre in particular is the exceptional commitment of all its members to ecology, but also the fact that during May floods they have proved to be true partners of the citizens. Although the centre itself was also flooded, its members very courageously made it one of the main centres for collecting and distributing aid to the people from Obrenovac, and later its premises were used as shelter for the people whose homes were under water. Experts from the centre offered counsel to their fellow-townsmen about house repairs or the way in which they can exercise their rights. Trained volunteers of the centre helped their fellow citizens in putting their homes in order and obtaining humanitarian aid, and they also motivated them to take part in various workshops, trainings and seminars for acquiring new skills and knowledge. They also bought computer and technical equipment which greatly enhances their work in seminars, workshops and exhibitions organized by the Centre for young people from whole of Serbia, while this equipment is simultaneously at the daily disposal of the citizens of Obrenovac who come to the Centre, either to do 6

research or to study. A part of the donation was spent on the organisation of a glass recycling workshop (the first workshop that opened the work of the Centre). Collected glass from the whole town bottles, jars and other waste material is used to make completely new and creative useful objects. 1000 kilometres for NURDOR On April 27, 2014, two hundred Telenor employees and members of their families took part in CorD Charity Masters humantarian race during Belgrade Marathon. By participating they have decided to help NURDOR organisation and collected 400,000 dinars for it on the occasion. Together with our employees, representatives of NURDOR also ran the race, including children and young people cured of cancer, who by doing this sent a message of support to all children suffering from cancer and their families. The money collected from participation in the race was used for the realisation of NURDOR projects. National Association of Parents of Children with Cancer gathers parents, physicians, medical staff and all people with good will who offer practical, emotional and financial support to children suffering from cancer and their relatives. BELhospice Humanitarian Football Tournament In Kovilovo Sports Centre, the sixth humanitarian tournament in a row was organised by BELhospice. On the occasion 11 thousand Euros were collected for palliative care of patients suffering from cancer. Wishing to help, nine foreign and local companies joined in this humanitarian campaign. 4.3 Project activities and achieved results category culture and arts Museum on the River About the River We have supported the restoration, reconstruction and revitalisation of steamboat Župa which is the peer of famous Titanic. The project of restoration, reconstruction and revitalisation of Župa was also supported by Goethe Institute and the Museum of Science and Technology, while the initiative was launched by Parobrod (Steamboat) Cultural Institution. In the extraordinary space of Župa steamboat, numerous educational, cultural, artistic, ecological and entertaining programs will take place. The permanent exhibition will consist of exhibits devoted to the history of modern Serbian shipping industry, and the second part will be related to Župa, which celebrated its hundredth anniversary in 2013. In cooperation with organizations which are engaged in ecology and cultural centres, cultural and educational activities are planned for schoolage children, but also for all young people interested in this type of projects. Since there is no other similar special-purpose project on the entire the Sava and the Danube river zone in Belgrade the function of which is not purely entertaining, the reconstructed steamboat Župa will be a unique cultural institution on the river in the capital. El Sistema Musical Education System Music Art Project has initiated the implementation of a project titled Orchestras and Choirs of Hope which is aimed at encouraging creative, emotional and intellectual capabilities of children. Thanks to the support of Central European Initiative (CEI) and Telenor Foundation, El Sistema musical educational program, founded in Venezuela 39 years ago was presented in Serbia at a concert in Kolarac Foundation. In its pilot phase, El Sistema methodology is implemented in three music schools: Davorin Jenko and Josip Slavenski from Belgrade and School for the Musically Talented from Ćuprija. 7

These schools offer the framework for creating ensembles of children from socially excluded groups and poor children from elementary schools in their surroundings. The project and the idea of El Sistema has already been recognized by the Ministry of Education, Science and Technological Development as an interesting and new methodology which can be implemented in the entire education system. 8

4.4 Project activities and achieved results category environmental protection Application for Promotion of Ecotourism of Serbia Upgraded The Eco Dots project, as an extension of EcoVirtour project, enables local and foreign tourists to get information on preserved areas and rich cultural heritage of Serbia, but also to make reservations and organize eco-tours in our country. In its second edition, Eco Virtour android application presents 15 beautiful protected regions in Serbia. The support to this project is the result of a good combination of our strategic commitments enabling constructive use of Internet and smart devices, protection of the environment and contribution to the development of Serbian society. This is a unique way to promote our country, since thanks to Internet, we were offered the opportunity to present its exceptional natural wealth. Blue-Green World Photo Competition As of 2014, with the support of Telenor Foundation, Blue-Green Map of Serbia program has been launched, thanks to which all significant natural and urban localities from all over Serbia will be presented within this unique electronic platform. By its support to a photo competition and the application which promotes natural wealth in Belgrade we continue to underline in an easy and accessible way, via mobile technologies, the necessity of preservation of the environment. During the months of July and August, a photo competition was organised by the Environmental Promotion Centre with the support of Telenor Foundation and Secretariat for Environmental Protection of the City of Belgrade. Almost 2,000 photos were sent in for the competition, and 14 best ones were exhibited at Parobrod (Steamboat) Culture Institution. The photo competition and BlueGreen World exhibition are a continuation of the activities directed towards popularisation of protected and urban natural entities in the city of Belgrade and in Serbia, but also towards education of citizens about the significance of preservation of these localities. The first place was taken by Vladimir Martinović for his photo titled Cinema Re-opened. The second place was won by Zlatko Milojčić for his photo Dusk, and the best photo according to the selection of visitors of Internet site www.bgmap.rs was Exuberant vegetation on a veranda at altitude of 1500 m by Dejan Milojević. 9