In 2012, our management training focused on performance management.

Department-level managers
discussed their performance management methods assisted by supervisors. They identified areas of
improvement for which targeted skills development programmes were prepared. That year again,
Telenor participated in global development programmes of the Telenor Group. 10 to 12 managers were
enrolled in an international management development training including three modules. We continued
basic training for Team Leaders using the action learning and team coaching methodologies.

2.5 Performance and Development

Employee Engagement Survey As a member of the Telenor Group, Telenor Hungary conducts an annual
Employee Engagement Survey (EES). Survey results serve as valuable feedback to management in setting
development directions to improve business results and working conditions. The EES supports internal
development by evaluating the key drivers of employee engagement. All Telenor employees participate
in the survey in order to obtain the most objective view of the current situation. Survey results are
processed in the action planning phase which, by increasing employee engagement, will have a positive
impact on the company’s business results. The EES process runs at two levels: • employees provide
feedback on their own unit and the company as a whole, on the basis of which the EES score or Unit
Index is calculated • employees evaluate their managers, the result being used to calculate the latter’s
Leadership Index. The EES enables employees to evaluate their superiors’ performance while providing
managers with feedback on their skills development needs. Recent years’ results have shown that we
are on the right track. Employee engagement levels have risen year on year and theparticipation rate
was also up 5% in the reporting period. Ultimately, we aim to achieve 100% participation.

Employee performance evaluation

Performance evaluation and career planning are managed through the Telenor Development and
Performance (TDP) process. Performance evaluation is a mandatory exercise within the Telenor Group
for every internal employee on a quarterly basis. TDP dialogues for internal employees had a 100%
partici - pation rate in the reporting period. The first step of the annual process is an evaluation meeting
during which the employee and his/her direct superior analyse his/her business and personal goals and
progress against the development plan created to support the accomplishment of these goals. At the
same meeting, goals for the next period are identified. The next step of the TDP process is the
management-level Review Meeting where the management team reviews their teams’ per - Responsible
employment 41 formance, discusses employees’ future potentials, possible career paths and next steps.
At the meeting best performers and underperformers are identified. Employees are nominated for
talent programmes at the Review Meetings. Progress against the goals and the development plan is
evaluated by the employee and their superior at a meeting every quarter to keep track of performance

Telenor Development and Performance Process (TDP) All business units shall adapt to the Group
performance and development process (TDP) as described in the Group Manual TDP. The TDP shall aim
to:  Cascade the strategy of Telenor Group and the Business Unit to teams and individuals  Review
performance and potential of employees  Update the personal development plan for the individuals 
Secure on-going feedback to the employee  Develop the talents, both managers and experts

Reward

Reward in Telenor shall contribute to attracting, engaging and retaining the right employees
with an aim to deliver sustainable value for shareholders in accordance with the Telenor way. The
following key principles shall be applied: i. Reward for performance.

ii. Support balanced goals iii. Offer competitive total reward Remuneration shall as a minimum
meet relevant national legal standards, and the basis on which employees are being paid shall be
documented. Employees who are nominated by Telenor to serve on the Board of Directors of
subsidiaries or other companies, are not entitled to a separate remuneration such as Director’s Fee,
shares, share options, bonus etc. This also applies to employees who hold positions in sub-committees
of such Boards.