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

Caring for employees and the workplace environment

It is the Company’s long-term strategy in the area of human resources to make O2 ‘a place which is a pleasure to work at’. In autumn 2010, a new ‘charter’ between the Company and its employees was agreed, which describes in detail what the Company plans to achieve in various areas and what should be the contribution of employees towards the goal. Some areas are already well underway, whereas others are scheduled for the next few years, as per the work plans.

Employee structure

As at 31 December 2010
Employees total 6,936
of which women 36.2%
of which men 63.8%
of which employees with physical handicap or disability 1%

Employees by division

Organisation unit As at 31 December 2010
Business Division 957
Consumer Division 2,028
Operations Division 2,647
Corporate Affairs 13
Strategy and product development 301
Human Resources 73
Support Units 312
Finance Division 297
Legal and Regulatory Affairs 42
Internal Audit & Risk Management 15
Marketing Division 201
Office of the CEO 4
 DHL 46
Total 6,936

Employee engagement

Reflect

The interest and motivation of employees to participate in the employee satisfaction survey stayed at 90%, as was the case in the previous year. The overall Reflect index stayed at the level of the year 2009. The management considered the outcome as good, especially with regard to the fact that many important changes occurred during the year. Several surveyed areas showed a positive trend, including the Top Management index, which however remains an area with the biggest room for improvement, especially in terms of effectiveness. My Manager, My Work and Atmosphere indices remain among the strong points of Telefónica O2.

Getting closer to the customer

In 2010, the Company introduced a new programme called ‘One Day with the Customer’, to give managers a direct experience of the customer, which should lead to a higher awareness of the needs of our customers. A total of 240 managers took part in the programme; each manager spent one day in a brand store, at a call centre or went on call together with a sales representative or engineer.

Improving internal cooperation

The Company wants its internal teams to engage in effective cooperation. Telefónica Team is a new tool for bolstering cooperation – a short structured questionnaire gives an opportunity to team leaders to improve their service to internal customers. This feedback channel was piloted in several divisions during 2010, and the roll-out to all units will continue in 2011.

Spirit of O2 Awards

As every year, also in 2010 Telefónica O2 recognised the best employees at its annual Spirit of O2 Awards. Employees could either nominate themselves or their colleagues whose accomplishments distinguished them from the rest and who helped keep Telefónica O2 at the forefront of the telecommunications market. A new category Employees’ Choice, was introduced in 2010; employees voted for the best one from their midst.

Global Bravo Awards

Telefónica’s global Bravo strategy introduced Bravo Awards, a model of non-financial reward for employees’ contribution towards the achievement of corporate goals.

Work-life balance programmes

Telefónica O2 realises that giving the employees an option to work from home is a win-win situation for all involved – the employees, the Company and its customers. Any employee, whose job character allowed for this option, could talk to their manager about working from home. The communication tools (fixed and mobile internet connection and a company mobile telephone) meant that not all activities had to be done from the office. The Company also allowed employees, conditional on the relevant manager’s consent, to work part-time. Parents of children of pre-school age could also use employee bonuses from the so-called cafeteria, which were redeemable against pre-school care.

Education and personal development

Orientation training for new employees

In 2010, all new employees attended Welcome Day, a one-day seminar at which they learned a lot of useful information for getting to know and finding their way within the Company.

Basic management skills

The course Management of People helped newly appointed managers to orientate in their role of supervisor or line manager. It gave an insight into the work of a manager and an opportunity to improve existing management skills. The five-day course, spread over two months, was attended by 84 participants in 2010.

Leadership

Also in 2010, the long-term programme Leading to Excellence continued to build leadership skills of middle and higher managers. The course participants (more than 500 in the four years of the programme’s existence) could opt to continue with an additional module, Feedback – the Pathway to Success, which was launched participating managers in 2010 and already had 24. Top managers had a choice of courses at Telefónica Corporate University.

Job Model

A new Job Model, which was the product of several years of intensive work, was implemented by Telefónica O2 in 2010. The Job Model introduced consistency and presented a solid platform for the base salaries in the Company – employees, depending on their job, were assigned to one of six groups and the corresponding salary class, which is tied with a particular rate of bonus, and may have other consequences for the remuneration. The content of the job, i.e. the work that the employee is expected to perform and their job-related responsibilities, is the principal factor for the classification.

Employee shares

In 2010, Telefónica O2 launched a scheme that offers a unique opportunity to invest in the Company’s shares and qualify for a bonus if the employees hold the shares for a specified period of time and meet other conditions of the scheme.

Employees may purchase the shares of Telefónica, S. A., every month throughout the year up to the annual limit of EUR 1,200. If the shares are held for a minimum of 12 more months starting from the end of the twelve-month acquisition period, the Company will match every share purchased with one share, subject to the rules of the scheme.

Motivation programmes and benefits

Despite the challenging economic reality in the marketplace, Telefónica O2 continued the tradition of offering its employees a wide choice of employee benefits – for example financial products, O2 products and services, benefits promoting health, education and the work-life balance of employees. Employees with reduced work capacity also received a voucher for restorative physiotherapy holiday in the value of CZK 10,000 per year.

Employer of the Year

The Company came fifth in the main category of the 2010 Employee of the Year Awards, and the achieved the highest placement of all IT/Telco companies.