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We are pleased to present you the third Integrated Annual
Report of Bulgarian Telecommunications Company EAD
(‘VIVACOM’, ‘Company’). It covers data on the company's
activities in 2018 and aims to promote the high degree of
transparency on all material topics that the company has
built up and follows in its interaction with key stakeholders.
Demonstrations of this long-term policy are the annual
public Sustainability reports issued to date (2014 and 2015)
and the Integrated reports (2016 and 2017). This edition
covers all important areas of development, achievements
and challenges for VIVACOM in 2018, viewed in the context
of the economic and social environment in the country,
market dynamics, competitive offerings and customer
attitudes.
The report is prepared following the principles of
transparency and involvement of key stakeholders in
defining the value creation process, taking into account the
material topics that could affect the company’s ability to
create value, its strategic objectives and decision-making.
Topics material to the stakeholders are determined through
consultations with them and with consideration of their
interests and needs. The content of this report is further
guided by the latest amendments to the national legislation
(Accountancy Act, 2016).
The Integrated Annual Report for 2018 provides data
about VIVACOM on individual and consolidated bases. The
quantitative data reflects economic, technical, social and
environmental performance in the period between January
1, 2018 – December 31, 2018, unless stated otherwise. This
report presents our performance against sustainability
goals and priorities as stated in our 2017 Integrated Annual
Report, our strategy, taking into account the operating
environment, use of capitals, challenges and changes
we are facing, as well as the measures put in place to
mitigate those. All reported data has been duly reviewed,
analysed and consolidated, and fully corresponds with our
official reports. This report also includes condensed annual
financial statements. More detailed information can be
found in the consolidated annual financial report, published
on our website.
This report is prepared in accordance with the GRI
Standards: ‘Core’ option. It is also in line with the Reporting
Framework published by the International Intelligence
Reporting Council (IIRC).
The Managing Board and top management of the company
actively participated in the preparation of this report to
ensure the integrity of information and its alignment with
the International <IR> Framework.
Our third Integrated Annual Report was prepared in
partnership with densktatt – a Bulgarian consultancy
specialized in the subject matter – and has successfully
passed the Materiality Disclosure Service of GRI. It has not
been subject to third-party verification.
For more information on this Report, please contact:
Tsvetelina Arsova
Corporate Communications
Tel: +359 2 949 45 37
E-mail:
sustainability@vivacom.bgAtanas Velkov
Investor Relations
Tel.: +359 2 949 42 56
Е-mail:
ir@vivacom.bgPUBLICATION
MAIN TARGET
FOCUS AREAS
Integrated Report
2018
Investors, shareholders,
clients, employees,
business partners, state
institutions
Value creation for key stakeholders, business
model & capital transformation, long-term
sustainable development strategy and
contribution to the macroeconomic environment
and society in Bulgaria, operational performance
and achievements
Integrated reports
2016 and 2017
Investors, shareholders,
business partners,
suppliers, authorities
Value creation, business model & capital
transformation, long-term strategy, goals & vision,
operational performance and excellence
Sustainability reports
2014 and 2015
Customers, employees,
suppliers, business
partners, NGOs, media
Sustainability matters to key stakeholders,
company policy, programs and performance
against sustainability targets
Financial reports,
presentations and KPIs
Investors, shareholders,
analysts, authorities
Financial statements, overview of the activities
of the company, financial condition and results of
operation, main risks
Transparency through reporting – our progress in the reporting process
About this Report
Statement of the Chief Executive Officer of
VIVACOM – Atanas Dobrev
Address by the Minister of Transport,
Information Technology and Communications
– Rossen Jeliazkov
1. Our company
1.1. Who we are
1.2. Mission, Vision and Values
1.3. Organizational and Ownership
Structure
1.4. Material Topics & Stakeholders
1.5. Goals & Achievements 2018
1.6. Goals 2019
2. Strategy, Value Creation and Distribution
2.1. Strategic Highlights
2.2. Value Creation and Distribution
3. Governance and Compliance
3.1. Governance
3.2. Main Risks and Mitigation Strategies
3.3. Compliance
4. Performance
4.1. Effective
4.1.1. Financial Results
4.1.2. Network and Coverage
4.1.3. Products and Services
4.1.4. Energy Efficiency and Carbon Dioxide
Emissions
4.1.5. Circular Economy – Waste
Management
4.2. Inspirin
4.2.1. Employees
4.2.2. Personnel Recruitment and Selection
4.2.3. Personnel Development and
Retention
4.2.4. CoderDojo – First Steps for Children in
Programming
4.3. Innovative
4.3.1. VIVA SMART – an Innovative Platform
for Complete IoT Services and
Solutions
4.3.2. Smart Parking in Burgas Municipality
4.3.3. Pilot Project for Smart Waste Disposal
in Plovdiv Municipality
4.3.4. @vivacombg on Instagram and Other
Social Networks
4.4. Honest
4.4.1. Consumer Relations and Customer
Experience Improvement
4.4.2. Regulation and Management of
Personal Data
4.4.3. Internal Employee Initiatives
4.5. Dynamic
4.5.1. Market – VIVACOM positioning
4.5.2. World Rhythmic Gymnastics
Championship 2018
4.5.3. Experience Exchange with
International Leaders in the
Technology Sector
4.5.4. VIVACOM Arena with an Entirely New
Appearance
4.6. Responsible
4.6.1. ‘Education 4.0’ – Digitization of the
Bulgarian School
4.6.2. Internship Program – Volunteer
Action at the Zlatnite Mostove Area
4.6.3. Electromagnetic Fields
4.6.4. Health and Safety at Work
Memberships
Certifications and Standards
5. Annexes
5.1. Key Performance Indicators and GRI
Content Index
5.2. Condensed Financial Statements
5.3. Dictionary of Terms and Definitions
5.4. Disclaimer
ABOUT THIS REPORT
CONTENT
ANNUALREPORT
2018
INTEGRATED
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66
64
3
6
69
70
71
72
74
76
77
78
80
83
84
85
86
88
90
91
92
96
91
93
104
108
110
8
28
38
46
94
10
12
14
15
26
27
30
40
48
42
50
44
52
54
56
57
58
60
61
62
63
33
ANNUALREPORT
2018
INTEGRATED
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