Sustainability Report: S Aspect

Kazakhtelecom JSC carries out the recruitment procedure in accordance with the Rules of Selecting Personnel of Kazakhtelecom JSC. Recruitment for vacant positions and working professions in the Company is carried out by structural divisions of the General HR Service Centre and Employee Experience Management Service.

Principles of personnel selection:

• recruitment planning based on business needs;
• clear and transparent selection criteria based on the requirements to the position and the Competence Model;
• transparent tender procedures;
• professionalism, personal qualities of the candidate and his/her compliance with the qualification requirements and competencies for the position;
• reasonableness of decisions taken based on the meritocracy principle;
• use of candidates evaluation methods that are relevant for each position, making it possible to make objective decisions when hiring personnel;
• non-discrimination, professional, open and respectful attitude towards all candidates;
• compliance with laws of the Republic of Kazakhstan;
• rational use of resources for attracting and recruiting personnel.

Personnel selection is carried out on a competitive basis. In-house candidates, including those in the personnel reserve, have priority when filling a vacant position. Applicants for search and selection of qualified specialists can be:

• the Company’s employees, including reservists in the personnel reserve of Kazakhtelecom JSC;

The Company continues to implement the Talent Management project aimed at building and training the talent pool as the main internal source of filling key positions in the Company.

Following the implementation of the new model, a validation effort was carried out to update the automated competency report. A comprehensive assessment of the business potential of employees in the EX division was conducted, involving 113 participants. The assessment used online psychometric tools by SHL, including verbal and numerical reasoning tests, diagram series tests, a professional personality questionnaire, and a motivation questionnaire. These tools provided deeper insights into employees’ abilities to work with new information, their strengths, task preferences, and internal motivation levels.

Kazakhtelecom JSC sets clear and measurable goals for its employees in the form of Key Performance Indicators (KPIs), on which remuneration is based.

The KPI system management is aimed at achieving the Company’s strategic goals outlined in the Strategy, Business Plan, and other guiding documents. It covers long-term, medium-term, and operational planning.

Employees are assigned responsibility for achieving results in key business areas, with performance monitoring aligned to strategic goals, objectives, and initiatives. The Company ensures a balance between financial and non-financial KPIs and monitors progress through regular (quarterly/annual) performance evaluations, including factor analysis and the development of recommendations.

The performance planning and evaluation cycle is designed for continuous performance management throughout the calendar year. A key condition for bonus payments based on results is the availability of consolidated net profit, calculated taking into account the planned bonus payment fund.

Kazakhtelecom JSC provides its employees with fair and competitive remuneration.

In 2024, the Company’s average monthly salary amounted to KZT 467,411, an increase of KZT 52,024 or 12.5% compared to 2023.

The motivation system adopted by Kazakhtelecom JSC ensures a clear link between employee remuneration and performance, supported by the performance evaluation system.

The Company’s remuneration strategy is regulated by the Compensation and Organizational Efficiency Department, which is responsible for designing an economically efficient remuneration system to attract, retain, and motivate employees.

Kazakhtelecom JSC applies a grading system based on the Hay Group methodology, with standardized approaches to salary, bonuses, allowances, ongoing and one-time incentive payments, and position grading with an intergrade coefficient.

GRI 202-1, 406-1

The Company ensures that no discrimination on any grounds occurs and guarantees a fair and equitable approach to employee remuneration.

In 2024, the minimum wage of male and female employees of Kazakhtelecom JSC amounted to KZT 114,000. Given the national minimum wage of KZT 85,000, the minimum wage of the Company’s employees in 2024 was 34% higher than the national level.

GRI 405-2

In 2024, the Company conducted a gender pay gap analysis. The results showed that the average salary of women in the Company was 13% lower than that of men.

In 2024, the average salary of women as a percentage of the average salary of men was 88.2%.

During the reporting period, the Company continued its efforts to maintain social stability. Heads of HR functions in the divisions and branches of Kazakhtelecom JSC held meetings with employees to discuss matters of social and labor relations, payroll, and social support.

The Company has established an effective communication channel between employees and top management in the format of online conferences, which includes the following procedures:

• initial collection of a pool of questions;
• moderation of the question pool by the Communications Department of Kazakhtelecom JSC;
• a live broadcast with the Chairman of the Management Board.

The group of companies of Samruk-Kazyna JSC holds an annual monitoring of the social environment in production teams. To identify hidden social tensions in a timely manner and manage this process, Kazakhtelecom JSC, in cooperation with the Private Institution “Center for Social Interaction and Communications”, conducts a sociological study called Samruk Research Services (SRS). Based on the survey results and sociologists’ recommendations, an annual Action Plan to address areas of concern is developed and approved.

In 2024, the Center for Social Interaction and Communications conducted an SRS index study. The total score amounted to 68%, exceeding the threshold KPI of Kazakhtelecom JSC, which is set at 60%.

The Engagement Index measures satisfaction with infrastructure, workload, remuneration and social benefits, loyalty, communication, development and career opportunities, and recognition by leadership.

GRI 2-30, 404-2

Kazakhtelecom JSC maintains a system of social support for employees that ensures comfortable and safe working conditions. The Collective Agreement of Kazakhtelecom JSC covers 92% of the Company’s employees.

In accordance with the Collective Agreement, the Company continued to provide the following types of social support in 2024, regardless of the nature of employment (permanent or temporary):

• life insurance;
• medical care;
• parental leave;
• pension programs.

Additionally, under the Collective Agreement of Kazakhtelecom JSC, the Company provides support to employees in cases of downsizing and retirement, including the opportunity to transfer to vacant positions, early retirement based on service duration, paid time off for job searching, and lump-sum payments upon dismissal or retirement.

GRI 402-1

The minimum notice period for termination of employment contracts due to workforce or position reductions, as per the Labour Code of the Republic of Kazakhstan, is 4 weeks (30 calendar days). In accordance with the Collective Agreement adopted by Kazakhtelecom JSC, this period exceeds the minimum legal requirements and is set at 45 calendar days.

GRI 401-2

In addition to standard employee benefits, the Company has introduced a “Benefits Cafeteria” system that allows employees to independently determine the structure and content of their benefits package within the limits of allocated funds and the list of available benefits.

The “Benefits Cafeteria” concept applies to employees holding the following positions:

• Managing Directors of the Head Office, Chief Treasurer, HR Director, Director for Customer Experience Management, and Business Line Directors of branches who report directly to the General Directors of the branches;
• Heads of structural subdivisions of the Head Office.
• The “Benefits Cafeteria” includes the following categories:

• expansion of voluntary medical insurance coverage;
• reimbursement of educational course/program costs for employees and/or their children;
• reimbursement of costs for health resort treatment (excluding those covered under VMI), among others.

One of the Company’s key social programs is the “DEMEU” program, which provides assistance to large families, families with children with disabilities, and families that have adopted more than two children. In 2024, the program was expanded to include the “single-parent family” category and financial support for caregiving for close relatives. Additionally, under the Program, social support is provided to employees on A8–B4 grades in the form of reimbursement for final-year tuition expenses in colleges/universities.

Within the “DEMEU” program, Company employees receive payments to cover expenses related to the rehabilitation of children with disabilities, special education programs, attendance at special correctional institutions, travel vouchers to children’s wellness camps and sanatoriums (for children with disabilities), and financial assistance for medications, school meals, and more.

One of the focus areas of the Employee Experience strategy is ensuring the well-being and health of Kazakhtelecom JSC employees. In 2024, the Company continued to implement the Well-Being Program aimed at monitoring employee health and preventing illnesses, while promoting a healthy lifestyle. Based on employee health monitoring results for 2023, a Comprehensive Program on Well-Being and Health was developed in February 2024.

GRI 3-3, 404-1

At Kazakhtelecom JSC, we recognize that continuous growth and employee development are essential to the Company’s success. The Company has developed the Kazakhtelecom JSC Knowledge Management Policy, which serves as the key document regulating employee learning and development. In 2024, a total of 39,372 learners completed training, including remote courses, in the following areas: Leadership Academy, EX Academy, HSE&ESG Academy, Service and Sales Academy, Technical Academy, IT Academy, Qazaq&English Academy, Financial Academy. Training expenses do not include travel costs associated with participation in educational activities. Annual training expenditures are planned in the Company’s budget and allocated across the following items:

• Staff training and qualification improvement;
• Travel expenses related to training and qualification improvement.

The overall decrease in investment in employee training during the reporting period is due to a lower number of employees enrolled in long-term Executive MBA programs.

Process Automation (E-learning and Development)

A project was successfully implemented to integrate the staffing schedule and Mirapolis using Qlik Sense for more efficient data visualization related to training. This initiative allows us to track and analyze training data in real time, enabling informed decision-making, resource optimization, and enhanced efficiency of training programs. This integration significantly improves learning processes and ensures better adaptation to modern technological requirements.

MOBILE ASSISTANT KTBOT:

• Knowledge base, mobile solution, submission and resubmission of requests;
• Adaptation and welcome course for new employees, glossary;
• Search engine functionality, interface in Russian and Kazakh, mobile communication and messaging service, corporate email verification;
• SAPA+ bonus system;
• Digital Marathon;
• Occupational Safety Contest;
• Registration for financial literacy training;
• Submission confirmation of tax declarations.

The “Play | Learn | Be Safe” training program by Kazakhtelecom

is aimed at employees’ children aged 7 to 16 and focuses on developing essential personal and public safety skills. In 2024, the program trained 220 children. It includes both theoretical and practical sessions on personal safety and road safety. Since its launch in 2022, a total of 420 children have completed the program, including 88 children of employees from Samruk-Kazyna JSC portfolio companies. The program is planned to scale to 500 children in 18 cities of Kazakhstan with the participation of 29 internal trainers.

Plans for 2025 and Medium-Term Outlook

• Continuation of the Well-Being program aimed at promoting a healthy lifestyle and employee well-being;
• Continuation of funding under the “Demeu” social support program, covering expenses for children’s summer camps and sanatoriums (including for children with disabilities), medical treatment, school meals, school preparation, special and corrective education, and preschool institutions;
• Continuation of women’s support programs in the regions aimed at improving well-being and developing professional skills;
• Implementation of PROTelecom internship programs in cooperation with educational institutions, covering more than 200 students in IT, telecommunications, and engineering;
• Development of the Corporate University (organization of academic olympiads, implementation of IT development programs, providing employees access to Coursera).

Continuation of the interest-free loan program as part of social support measures.