sustainability report - fastweb.it · smart working initiative, the new paradigm is that o working...

2017

Sustainability

Report

LETTER TO STAKEHOLDERS 2

1. CONSTANTLY LEADING ITALY’S DIGITAL INNOVATION 41.1 About Fastweb 61.2 Governance System 131.3 Ethics & Compliance 17 1.4 2017 Strategies & Results 211.5 Management of the Supply Chain 241.6 Sustainability approach 25

2. SMART DIGITAL COMMUNITY ENABLER 302.1 Digitalization in Italy: how are we doing? 342.2 Fastweb’s contribution to Italy’s digitalization 362.3 Digital literacy in schools and the workplace 43

3. TRUSTED AND LEAN CUSTOMER PARTNER 483.1 Niente come prima (“Nothing will ever be the same again”): the new Fastweb approach to transparency 513.2 A constantly evolving offer 533.3 Be customer: customer experience at the core 573.4 The approach to listening and dialogue 603.5 The alternative resolution of disputes 613.6 Impacts of technologies and data protection 62

4. WORK AND INCLUSION 684.1 WorkatFastweb:theprofileanddevelopmentsin2017 734.2 Attracting and developing talent 754.3 Listening and involvement 794.4 Welfare and professional well-being 824.5 From “smart working” to “working smart” 834.6 Diversity and equal opportunity 854.7 Commitment for workplace safety 87

5. RESPONSIBILITY AND ENVIRONMENTAL SUSTAINABILITY 905.1 Environmental impact management and monitoring 94 5.2 Energyconsumptionandenergyefficiencyinitiatives 955.3 The commitment to monitoring climate impact 1005.4 Proximity to the territory and community 103

SUPPLEMENTARY INFORMATION 106 Methodological note 108Assurance Statement addressed to Fastweb Stakeholders 115GRI Content Index 116Glossary 126

Contents

based on continuous innovation and the choice to opt for simple and transparent offers without hidden costs are rewarded by the market and by customers, both in the mobile and fixed segments.

The drive towards innovation and transparency characterized Fastweb’s operations also in the capacity as employer by intensifying communications with current and potential employees. After the successful smart working initiative, the new paradigm is that o working smart meant as a model that aims to provide those working at Fastweb with all the tools and conditions they need to have a rewarding and stimulating work experience.

Promoting Italy’s digitalization for Fastweb also means enhancing its connectivity services while contributing to the creation of a set of enabling attitudes and skills for Italy to make the most of the potentials offered by the digital revolution and for young people to get closer to the new digital professions. For this reason, in 2017 Fastweb, together with the Cariplo Foundation, issued about 1,300 certificates of completion of Fastweb Digital Academy. training courses. Furthermore, in December, in collaboration with the Ministry of Education, University and Research, it launched Fastweb4School, a three-year project that supports digital projects in Italian schools.

Lastly, during the year the work aimed at reinforcing Corporate Social Responsibility in order to leverage

competitiveness was continued. The company supplemented its internal controls to integrate sustainability in its business objectives and continue to develop and implement CSR projects in line with stakeholders’ needs, the company mission and the sustainability strategy pursued by the parent company Swisscom.

Being one step ahead for Fastweb is not only synonymous with business growth but also means creating value for the community.

Urs SchaeppiChairman of the Board of Directors

Alberto Calcagno ChiefExecutiveOfficer

Digital, social and environmental developments are radically changing the scenario that companies operate in. Technological and demographic transitions, climate change, efficient resource management, the need for new skills – also digitalization-related – are just some of the challenges that affect national and European policies and the sustainable development goals developed by the United Nations. This is both a social and a business challenge and only those companies that will adopt the tools required to understand and respond to these changes will successfully interpret what competitiveness means in a changing world.

Fastweb uses the Sustainability Report to describe its contribution to economic and social development and to Italy’s digital transformation. Our vision is to enhance life and work through the Internet by accompanying citizens and businesses along a journey that must be increasingly inclusive. We do this by driving innovation, as a constant key value and an integral part of our approach, with four priority objectives in mind: Italy’s digitalization and the promotion of digital skills, more transparent and direct customer relationships, environmental sustainability and strengthening of the company as a responsible employer.

In 2017 Fastweb invested in the network infrastructure and the enhancement of its connectivity services in order to offer customers a widespread, converging, fast and high-quality Internet experience. In particular, the company focused on improving network performance,

with the launch of connectivity up to 1 Gbps, and continued to extend the territorial coverage of the infrastructure to reach 8 million households and businesses. Our company’s contribution has definitively contributed to broadband fiber access in Italy rising from 20% to 70% in the last 5 years.

In terms of convergence between fixed and mobile connection, Fastweb continued with its plan to upgrade WOW FI, the shared wi-fi service for customers to surf free of charge and away from home in more than 800 Italian cities, confirming its desire to become one of 5G main national players. As a matter of fact, Fastweb, together with TIM and Huawei Technologies Italia, has won a tender from the Ministry of Economic Development, offering the possibility of testing new network solutions and application in Bari and Matera. 5G will enable innovative services to be tested in sectors such as healthcare, industry 4.0, tourism, culture, automotive and road safety.

During the year Fastweb also consolidated its role as the partner of large companies and the public administration in the digital transformation process, winning important public tenders and expanding its market share.

Fastweb also innovated the way it relates to its customers. With #nientecomeprima it focused on simple service use, the transparency of commercial conditions and consumers’ free choice. The strategy

Letter to Stakeholders

32

Alberto CalcagnoUrs Schaeppi

Constantly leading Italy’s digital innovationConstantly leading Italy’s digital innovation 54

Constantly leading Italy’s digital innovation


1.1 ABOUT FASTWEBFastweb is the largest alternative landline operator in Italy and one of the leading players in the European ultra-broadband market. Since its inception in Milan in 1999,pursuingtheinnovativeprojectofbuildingafiberoptic network and adopting the IP protocol for voice, data and video transmission, Fastweb has focused on innovation and network infrastructure for the supply of ultra-broadband services of the highest quality.

Thecompanyhasdevelopedanationalfiber-opticnetwork, reaching 8 million households and businesses with its own proprietary network and, overall, 13 million property units in almost 1,000 municipalities, with connection speed of up to 1 Gigabit per second in major cities. In 2017 Fastweb invested 32% of the company’s turnover in network expansion and service innovation. This is an unprecedented percentage in the European telecommunications scenario, equaling euro 622 million, 41 million more (+7%) than 2016.

Thanks to its network’s architecture and flexibility, Fastwebhasdiversifiedandenrichedtheoffertomorethan 2.4 million customers to provide increasingly convergent services. The goal is not only the provision of innovative services, but also Internet access and use anytimeanywhere:intheofficewhenusingacomputer,on the go via smartphone or at home through the devices connected to the home network.

As part of the mobile network services, in January 2017 Fastweb became a Full MVNO operator, offering its customers a latest generation mobile service based on 4G and 4G Plus technology. By 2020 mobile services will be enhanced through a new-generation 5G infrastructure.

In addition to voice, data and mobile services, Fastweb offers connectivity services and advanced ICT services, suchashousing,cloudcomputing,securityandunifiedcommunications, to companies of all sizes, from start-ups to small and medium-sized businesses, from large companies to the public sector.

Fastweb is present throughout the country with sites, offices,equipmentroomsandanetworkofstoresthat currently comprises over 1,000 stores, including flagship stores, franchise stores and authorized dealers.

The company has been part of the Swisscom Group since September 2007 and is subject to the management and coordination of Swisscom AG, through its subsidiary Swisscom Italia S.r.l.

Since 2014 Fastweb has had a 60% interest in the consortium company QXN, established with the aim of making a Qualified eXchange Network interconnection network infrastructure available to the Public Administration.

Fastweb holds two minority investments in Flash Fiber (20%) and Open Hub Med (11%). Flash Fiber is the strategic joint venture between Telecom Italia and Fastweb to promote the realization of ultra-broadband infrastructure with FTTH (Fiber To The Home) technology in the main Italian cities (see Chapter 2). Open Hub Med (OHM) is the consortium that aspires tobethefirstneutralhubinItalyfortheexchange of communications in the Mediterranean area between Africa, Middle East, Asia and the rest of the world, benefittingfromSicily’sgeographicalpositiontoconveypartofthistraffictothemainEuropeanhubs.


Sustainability in Fastweb...

Smart digital community

enabler

is based on continuous innovation, with the aim of providing a contribution to Italy’s digitalisation; from networks, to 5G, to digital skills...

it’s the result of talent, passion and a smart way of working... and it also means committment to the environment and support to local communities.

Trusted and lean customer

partner

reached by Fastweb with fiber optic network, 8 million of which through its proprietary infrastructure.

first Italian telco company to introduce transparecy as a value in the relationship with customers

+1% compared to 2016 reduction of energy consumption / Gigabyte data traffic

WOW FI is the wi-fi solution that provides a high quality network coverage in 800 Municipalities

maximum speed offered to customers in main Italian cities. We offer to all of our customers the highest connection speed available in their area

68% of total employeesexpected energy consumption reduction, thanks to improvement programs

doubled the number of customer enrolled in the program and tripled the number of vouchers and advantages provided

the school, created and developed in collaboration with Cariplo Foundation, that prepares young people for a career in the digital world

project started in collaboration with MIUR, to promote the adoption of digital projects in secondary schools

13 millions households in over 1,000 cities

#nientecomeprima

2,605 employees working in Fastweb -16% compared to 2016

reached by 4G and 4G plus mobile services

new possibility for customers to compare the actual speed to the one included in commercial offer

number of days allowed for smart working activities

estimated avoided emissions thanks to the use of Fastweb’s services by our customers

with innovative solutions and co-designed with workers

thanks to the donation made by 1.110 employees, doubled by Fastweb,reaching a total amount of 154,674 euro

testing launched in Bari and Matera, thanks to the award of the MISE tender together with TIM and Huawei

that provides connectivity speeds up to 1 Gbps and very high quality performances and many possibilities of configuration

reputation index in internal reputation survey

initiative supporting LILT, an italian association committed to anti-cancer research: Fastweb adds 1 euro to every 1 euro donated monthly by the customers registered

distance between Fastweb and its competitors in terms of Net Promoter Score, a measure of the customer satisfaction

97% of the Italian population

Speed promised

4 days per month

-185 ktons CO2

2 new office sites opened in 2017

2 centers for social aggregation donated to population hit by the earthquake

+ 70% customers enrolled in the WOW FI community

Up to 1 Gbps

1,760 smart workers-3 GWh every year

liveFAST

1,300 certificates issued by Fastweb Digital Academy

12,600 schools reached by the Fastweb4school initiative5G

New modem FASTGate

79.8%

1 + 1

+ 10% di NPS

Work and inclusion

Responsibility and

Environmental sustainability

it starts with transparency and attention to the continuous improvement of customer service...


Fastweb launches the national coverage plan with the WOW FI service as the widespreadwi-fisolution where each Fastweb modem becomes an access point available to the customer community.

Fibra 100 is developed as the offer addressing residential customers and resulting, for thefirsttimeinItaly,in 2 million households and businesses able to surf the Internet at a speed of 100 Megabits per second.

2015

2010

In September 1999, e.Biscom, the reference parent company of Fastweb, is set up in Milan to pursue the entrepreneurial project of developing and spreading a new generation of transmission networks in alternative to traditional telephone networks.

Fastwebisthefirstoperatorintheworldto create a network based entirely on theIPprotocolthat,alongwiththefiberinfrastructure, enables the use of the range of voice, data and video services by a single user at the same time, for all types of customers.

Fastweb, a step forward

1999

2000

Fastweb realizes Triple Play, that is the convergence between telecommunication services, Internet and television, with the launch of the television offer for residential customers.

20032008

Fastweb becomes a 4P operator with the launch of mobile telephony and data services, thanks to an offer that includes telecommunications, Internet, television and mobile telephony services.

Fastwebisthefirstoperator in Europe to double browsing speed up to 200 Megabits per second thanks to the Vplus technology.

2016

Fastweb becomes a Full MVNO operator (Mobile Virtual Network Operator) and strengthens its positioning on the mobile market with the launch of the 4G and 4Gplus service. Numerous experiments on the 5G begin, with the aim of becoming one of the forerunners of this technology in Italy.

2017


1.2 GOVERNANCE SYSTEMThe Governance structure comprises the following bodies: Annual General Meeting, Board of Directors (assisted by the Independent Control Committee and

the Management Board) and the Board of Statutory Auditors.

Alberto Giussani Chairman (Independent)

Ulrich Dietiker (Swisscom)

Mario Alois Rossi (Swisscom)

Peter Burkhalter23/09/1964

(Swisscom)

Michele Siri 22/09/1965

Chairman

Roberto Spada25/09/1963

Standing Auditor

Francesco Turati23/05/1973

Standing Auditor

Fabio Vittori21/10/1967

Alternate Auditor

Cristiano Proserpio14/10/1975

Alternate Auditor

TheBoardofStatutoryAuditorsshallremaininofficeuntilthe Meeting that will approve the Financial Statements for the year ending 31 December 2019.

Urs Schaeppi17/05/1960

Chairman (Swisscom) Legal representation before third parties and in court

Mario Alois Rossi27/11/1960

Deputy Chairman (Swisscom) Legal representation before third parties and in court

Alberto Calcagno08/09/1972

Chief Executive Officer and General Manager (Fastweb)

Legal representation before third parties and in court and powers for the ordinary and extraordinary management of the Company

Ulrich Dietiker 07/02/1953

Director (Swisscom)

Heinz Herren17/10/1962

Director (Swisscom)

Alberto Giussani23/08/1946

Independent Director

TheBoardofDirectorsshallremaininofficeuntiltheMeetingthatwillapprovetheFinancialStatementsfortheyearending 31 December 2018.

BOARD OF DIRECTORS

INDEPENDENT CONTROL COMMITTEE

BOARD OF STATUTORY AUDITORS

THE VALUES GUIDING THE COMPANY’S OPERATIONS

Our visionEnrich life and work through Internet

Our missionUnderstanding the evolution of customer

needs to provide the best possible Internet experience

Our Values Customer First - I live in the community and I am also a customer.Hereiswhyourfirstapproachisfromthe customer’s point of view.

Trust - Trust, loyalty and reliability firstofall.I listen to others and try to catch the best of everything around me.

Innovation @ 360° - I look beyond the external appearance.I love taking on new challenges, in everyday work.

Initiative -Ifacedifficultiesheadon.I am never content, I always think of getting things working when they’re not and improving things when they do work. Hence, enough is never enough.

Agility - I‘m fast and focused and keep things simple.

1

2

3

4

5

Fastweb is constantly guided by a vision and mission that place the customer at the core of every business activity and that see digital as a tool for social development and enrichment.

The corporate culture, which is founded on a common system of values that is shared by every employee,

contributes to the organization’s success and prioritizes attention to the customer, trust, the ability to innovate, sense of initiative and simplicity. The corporate values are described in the Code of Ethics, as the document that outlines the principles of conduct that everyone who works at the company or collaborates with it must comply with.


approved the appointment of Alberto Calcagno as GeneralManager,stillinoffice,vestinghimwithfullpowers to run the Company. The General Manager reports to the board and is responsible for all the Company’s Divisions and Departments.

MANAGEMENT BOARD

The Fastweb Board of Directors formally set up a management board composed of managers not on the BoD, with the exception of the CEO, who is the chair.

The committee plays the role of functional coordinator of the activities conducted by the operating departmentsofFastweb,alsobyfirststudyingalltheissues of strategic importance to the company’s future development, as well as all the operations with broad significanceintermsofearnings,businessaffairsandfinancialposition.TheManagementBoardalsoactsas an advisory body for issues and operations that the Board of Directors decides to indicate.

The Management Board currently includes the Chief ExecutiveOfficer,theChiefFinancialOfficer,theChiefDigitalTransformationOfficer,theHumanCapitalOfficer,theChiefInstitutional&ExternalRelationsOfficer,theChiefLegal&RegulatoryAffairsOfficer,theMarketing&CustomerExperienceOfficer,theChiefConsumer&SmallBusinessOfficer,theChiefEnterpriseOfficer,theChiefWholesaleOfficerandtheTechnologyOfficer.

Forspecificareas,somemembersoftheManagement Board are involved in theme-based Steering Committees, with periodic meetings where Management indications are received and the targets

Fastweb is governed by a Board of Directors (BoD) that has a three-year term and may be re-elected. The Board is vested with full powers for both the ordinary and extraordinary management of the company and has the right to do whatever is necessary to reach the company’s goals.

Fastweb’s current Board of Directors was appointed by the Annual Shareholders’ Meeting (ASM) on17March2016andthedirectors’termofofficewillexpirewiththeannualmeetingtoapprovethefinancialstatements on 31 December 2018. As determined by and in accordance with the ASM, it consists of six directors selected by the company’s sole shareholder. On 3 March 2017 the ASM appointed Mr. Heinz Herren as director of the company to replace the resigning Mr. Peter Burkhalter.

The procedure for the appointment of the Board of Directors requires that the meeting appoint the directors on the proposal of the sole shareholder. TheirtermofofficeexpiresonthedateoftheAnnualShareholders’meetingcalledtoapprovethefinancialstatementsforthelastyearoftheiroffice.

Purely on a voluntary basis and in continuity with its former listing on the Italian stock exchange (Borsa Italiana), the company has decided to retain Professor Alberto Giussani as Independent Director within the Board of Directors.

TheBoardofDirectorsmustbepromptlynotified of any conflicts of interest of Directors; the director concerned must specify “the nature, terms, origin and extent of his/her interest”, providing any relevant information to allow the other directors and the auditors to assess the potential existence of a conflict, and, more in general, the underlying economic viability of the operation for the company.

The Board of Directors can request the Supervisory Bodytoprovideatimelyorperiodicverificationontheaspects of the conflict of interest.

The Board of Directors meets at least each quarter, depending on any potential need, and is vested with full powers with the exception of those reserved for theMeetingbythelaw.Atthefirstmeetingoftheyear,the Board of Directors approves the budget for the referenceyearandthedraftfinancialstatements. 11 board meetings were held in 2017.

The remuneration policies of the Board of Directors are decided in agreement with the Shareholder; themattersrelatingtofeesforspecialofficesandremuneration for the Management Board remain within

THE BOARD OF DIRECTORS the competence of the Board of Directors.

INDEPENDENT CONTROL COMMITTEEFollowing the delisting of the company, in the meeting of 27 April 2011 the Board of Directors established the Independent Control Committee, with powers relating to internal control and with a composition andfunctionsthataresimplifiedcomparedtotherequirements of listed companies with regard, among other matters, to the accounting standards for the preparationofthefinancialstatementsandtheriskidentificationaudit.TheCommittee’sdutiesalsoincludethedefinitionoftheguidelinesfortheinternalcontrol system for Fastweb and its subsidiaries and the annual assessment of the internal control system. As a further guarantee of the independence of the Committee, in addition to the independent Chairman Alberto Giussani, the meetings of the Committee may also be permanently attended by the external member of the Supervisory Body set up by Fastweb pursuant to Legislative Decree 231/2001, the members of the Board of Auditors of Fastweb, the Chief Audit Executive of Fastweb, the Head of the Internal Audit department of Swisscom, the Manager of Compliance & Risk Management and the Risk Manager of Fastweb. Any other person that the Committee deems appropriate in relation to the matter to be discussed may also participate in the meetings of the Committee. The current ICC was appointed by the Board of Directors on 17 March 2016 and will expire with the annualmeetingtoapprovethefinancialstatementsat31 December 2018.

THE BOARD OF STATUTORY AUDITORS

The current Board of Statutory Auditors was appointed by the Annual Shareholders’ Meeting on2March2017andthetermofofficewillexpirewiththeannualmeetingtoapprovethefinancialstatementson 31 December 2019.

The appointment is based on the candidates proposed by the sole shareholder, with personal curricula and relateddeclarationspursuanttothelawfiledwiththecompany.

The Board of Auditors oversees with positive outcome also the independence of the independent auditors and assists in the meetings of the Independent Control Committee.

GENERAL MANAGER

The Board of Directors can appoint one or more general managers, deciding on their powers, representative powers included, as well as their remuneration. On 8 November 2010, the Fastweb Board of Directors

reached, the progress reports, the critical areas and the areas for improvement are shared.

ANNUAL SHAREHOLDERS’ MEETING

The Articles of Association establish the procedures for calling the Annual Shareholders’ Meeting (ASM) as well as the relevant intervention and representation rights; it is chaired by the Chairman of the Board of Directors, who is assisted by a secretary appointed by the ASM. During the meetings, the Board takes whatever steps are required to ensure that all shareholders are kept adequately apprised to be able to make informed decisions with regard to ASM resolutions.

PROCEDURES FOR TRANSACTIONS INVOLVING CONFLICT OF INTERESTS OR CONFLICTING WITH THE INTERESTS OF OTHER DIRECTORS OR EMPLOYEES

In 2014 Fastweb implemented a procedure that envisages the principles and operating rules that directors and employees must comply with to ensure the transparency and substantial and procedural correctness of the transactions that may involve interests of other directors and employees, or in conflict of interest between the personal interest of directors or employees and the interest of Fastweb.

The measures adopted – in compliance with the provisions of article 2391 of the Italian Civil Code – supplement the internal control system based on the Group Code of Ethics and Fastweb’s Organization, Management and Control Model. The procedure also applies to the members of the Board of Statutory Auditors.


INTERNAL CONTROL AND RISK MANAGEMENT SYSTEMThe set of rules, procedures and organizational structuresaimedatenablingtheidentification,measurement, management and monitoring of the main business risks are at the basis of the Internal Control and Risk Management System. In the document “Internal Control and Risk Management System-Assurance Framework Directive”Fastwebhasdefinedthe players and the process for the operation of its internal control system. In addition to the Board of Directors, CEO, Compliance 231&262, Risk Management, CFO, Board of Auditors, Management Board, Independent Auditors, Management, Employees, this system also includes:

the Internal Control Committee, which assists the Board of Directors with advice and recommendations as regards the internal control system;

the Supervisory Body, which is in charge of supervising the effective and adequate operation of Model 231 with regard to its actual ability to reduce the risk of crimes being committed pursuant to Italian Legislative Decree 231/01, the compliance with Model 231 by all intended recipients, and the update of the Model as necessary to adapt it to changed conditions in the Company;

the Internal Audit,officer,whoverifiesthat the internal control and risk management system is operating and adequate.

Fastweb has also adopted an Enterprise Risk Management (ERM) framework and procedures for identifying, analyzing, monitoring and mitigating any risks the company might be exposed to.

The framework, divided into processes and models aligned with industry best practices, guarantees an extensive coverage of the company in risk assessment and mitigation activities, which is carried out jointly with the functions/departments responsible for the individual risks.

Compliance & Risk Management, working within the Internal Audit function, is responsible for designing, managing and maintaining this system, which also envisages Risk Assessment cycles carried out by different functions, from quarterly to annually depending on the risk classification.

Foreachriskidentified,aRiskOwnerisidentifiedwhoisresponsiblefordefiningtheplanofmitigationmeasuresor acceptance of the risk itself. The Risk Owner carries out a periodic risk review and reassesses the effectiveness of the measures implemented by the Measure Owners identifiedfromtimetotimeupondrawingupthemitigation plan.

With the support of the functions responsible for individual risks, an updated Quarterly Report on Risk Status is also prepared, differentiated on the basis of the needs of each of the relevant stakeholders (Swisscom, ICC, Top Management, Risk Owners, Measure Owner, etc.).

In order to disseminate the culture and awareness of risk management and prevention throughout the organization, it is accompanied by targeted training and communication interventions.

MODEL 231

In compliance with Legislative Decree no. 231/01, Fastweb has adopted an organizational model that establishes the main rules of conduct for all employees of theCompanyanddefinestheprocesses,areas,“sensitive”activities (or at risk of crime 231) and the associated controls. The already mentioned Code of Ethics, is also an integral part of the 231 Model, in the latest version approved by the Board of Directors on 27 October 2016. Model 231 is regularly updated on the basis of regulatory and/or organizational and/or process developments and/or developments in the internal IT systems.

In an effort to ensure that all employees were well informed and aware of the importance of applying the Model correctly, a compulsory e-training course was set up that took an in-depth look at the main evolutions in company regulations.

The course on “Legislative Decree 231/01 and Model 231” is attended by all Fastweb employees. In line with this commitment, training sessions were also organized in the classroom between March and June 201, on the topics of 231, Security, Safety and Privacy (for 45 new employees), the process of participation in public tenders (with 25 people involved) and the risks and impacts 231 in the purchasing cycle (for 30 people of the Purchasing function).

All new hires are also sent an information e-mail on the content of the Code of Ethics and Model 231 and are requested to attend the e-learning training course on these issues.

The control principles and standards contained in the Model are communicated and applied also to those who, though not employees, operate on behalf of Fastweb: thesesubjects,duetospecificcontractualclauses,undertake to ensure, as regards the relationships established with the Company, that conduct is followed that is respectful of the regulations in force and in any case suitable to prevent the commission, even attempted, of the crimes in relation to which the sanctions apply as envisaged in Legislative Decree 231/2001.

1.3 ETHICS & COMPLIANCE

Fastweb is organized into Staff, Sales and Technology Divisions. The commercial divisions are divided into Consumer & Small Business (dedicated to the Consumer, Professional and Small Business area), Enterprise (dedicated to Medium Enterprise, Executive and Top area) and Wholesale (dedicated to the commercial relationship with other telephone operators).

The Staff Divisions are:

Administration, Finance and Control that deals with administrationandfinancialmanagement,strategyand purchasing aspects;

Digital Transformation, that oversees digital transformation and the Customer Journey inside and outside the company;

Human Capital, with responsibility for the organization, valorization of human resources and recruiting as well as activities related to facility management and security;

Institutional & External Relations, that deals with activating and maintaining relationships with entities, institutions, administrations, associations and the media in Italy and abroad, to guarantee institutional visibility in line with the evolution of the company’s industrial project;

Legal & Regulatory Affairs, that has the task of ensuring legal protection, compliance with the laws and regulations by Fastweb and assisting the company in relations with other telecommunications operators and with the competent Authorities;

Marketing & Customer Experience, with

CEOChange

ManagementInternal Audit*

Risk Management & Supervisory Body 231

Indipendent Control

Committee

Marketing & Customer Experience

Digital Transformation

Technology

Wholesale

Enterprise

Consumer & Small Business Administration

Finance & Control

Institutional & External Relations

Human Capital

Legal & Regulatory Affairs

Board of Directors

Management Organizational chart as of 31/12/2017

(*) Internal Audit is under Swisscom’s responsibility

INTERNAL ORGANIZATIONAL STRUCTURE responsibility for Marketing, Customer Communication, Digital Channel Management, Customer Experience, Innovation and Corporate Social Responsibility;

Technology, that is responsible for the technological infrastructure and operational processes related to the network and data centers.

There are also two Divisions not represented permanently in the Management Board:

Internal Audit, Risk Management & Supervisory Body 231, that aims to design, manage and maintain the System of Internal Control and Management of Corporate Risks, ensure compliance with corporate policiesandlaws,defineandupdatetheCodeofEthics and Model 231 and verify compliance with the corporate structures;

Change Management, created in 2017 with the objective to guide the organization in applying a new internal organizational model in line with company strategies.

All the Divisions manage the issues of their competence on the basis of annual improvement plans. Each operating unit monitors weekly (or as required dependingonspecificprojects)theprogressandresults reached within the initiatives managed, and plans new actions and activities on the basis of the results obtained and of possible improvement actions. The Management Board has a strategic oversight on all relevant issues, as indicated in paragraph 1.2 of this document.

http://www.fastweb.it/corporate/governance/codice-etico-en.pdf

http://www.fastweb.it/corporate/governance/modello-231-en.pdf


2003

07/2007

12/2007

2010

05/2013

09/2013

2016

ISO 14001 - ENVIRONMENTEntire Company

ISO 22301 - BUSINESS CONTINUITY Entire Company

ISO/IEC 27001 - INFORMATION AND DATA SECURITYEnterprise Division

ISO 9001 - QUALITYEnterprise Division

OHSAS 18001 - OCCUPATIONAL HEALTH AND SAFETYEntire Company

ISO 20000 - ICT SERVICE MANAGEMENTEnterprise Division

ISO 27018 - PRIVACY MANAGEMENT FOR PUBLIC CLOUD SERVICESEnterprise Division

Many of the internal policies are related to the adoption ofmanagementsystemscertifiedaccordingtospecificvoluntary standards. The systems adopted have been integrated to obtain a single management system that guides internal operations and ensures the correct application of company rules in the various operating areas.

This system includes: process quality (ISO 9001) information and data security (ISO 27001), privacy management for Public Cloud services (ISO 27018), environment (ISO 14001), health and safety in the workplace (OHSAS 18001), management of ICT services (ISO 20000) and business continuity (ISO 22301).

In order to verify correct application of Model 231, Fastweb has appointed its own Supervisory Body (SB), formed of the Chairman of the Independent Control Committee, the Chief Audit Executive and an independent criminal lawyer. The members remain inofficeforthesametimeastheBoDthatappointedthem. In 2017, the SB, supported by the Manager of Compliance & Risk Management, monitored all the company divisions and as part of its activities it audited the content of the periodic information received from the Supervisory Body (9 assessments) and carried out a compliance audit. The Supervisory Body reports any criticalitieswithinitsfieldofaction(applicationoftheOrganizational Model 231) to the BoD.

The assessment audits mainly focused on issues relating to the bribery & corruption risk-crime, while the compliance audit concerned the management of contributions and tax facilitations.

The monitoring activities are included in the Integrated Strategic Audit Plan (ISAP) presented annually to the Independent Control Committee, and mainly focus on ensuring that the Model is applied in the areas at higher risk of crime. The Supervisory Body organizes the activities and makes sure sensitive activities are regularly audited.

In application of article 6, paragraph 2, letter d) of Legislative Decree no. 231/01, information flows to the SB are also envisaged. The type and frequency of the information are shared by the Body itself with the respective Internal Managers of the sensitive processes that follow the agreed methods and timing. Twenty-six communications are currently expected (sent by 24 reference contacts).

VOLUNTARY REGULATIONS: POLICIES AND CERTIFICATIONS

In addition to the aforementioned internal structures, Fastwebhasdefinedaseriesofpoliciesthathave the task of summarizing and communicating the company’s commitment in areas ranging from anti-corruption to the environment, security protection and privacy.

The policies guiding Fastweb actions

Anti-corruption Directive: stating the rules of conduct to reduce the risk of bribery & corruption in the performance of company activities.

Anti-bribery & corruption policy for events and invitations: outlining the operational procedure for minimizing the risk of committing the crimes of corruption & bribery when making invitations to sporting, cultural and informative events to both public and private customers.

Gifts Policy: describing the conditions for accepting or giving gifts in relations with third parties such as suppliers, customers and public officers.

Customer Privacy and Data Protection Policy: definingthemethodsthroughwhichFastwebinforms all customers on how personal data is processed in accordance with the user’s rights expressed in the “Privacy Code”.

Environmental Policy: based on the ISO 14001 international standard, sets out the framework for establishing and adapting environmental protection objectives.

Safety Policy: based on the international OHSAS 18001 standard, implements the company’s commitmenttohealthandsafetyanddefinesthe framework of rules and best practices to be applied to all organizational levels.

Procurement Policy: establishes the commitment for the promotion of integrity and transparency along the supply chain, also specifying the values that suppliers must comply with in terms of relations towards the community and the environment.

Sustainable Mobility Policy:definingtheprocedures for business travel, focusing on reducing costs and protecting the environment.

Whistleblowing Policy: regulating the management of reports of illegitimate conduct. Reports can be made by telephone, traditional post or sent anonymously using the public Internet network link also available on the company Intranet, containing the form for reports. All reports are treated with complete confidentiality,analyzedandpossiblyhandledthrough the most appropriate actions.

THE ROLE OF THE SUPERVISORY BODY


2017 was a year of recovery and change for the Italian telecommunications market.

The mobile sector recorded revenue growth of around 3%andanincreaseofover40%indatatraffic,reachingaround 2.4 Gigabytes per SIM compared to 1.7 Gigabytes in 2016. At the same time, there has been a gradual reduction in the number of “traditional” SIMs that offer voice, SMS and data services, as well as an increase in “Machine 2 Machine” SIMs linked to the Internet of Things, which exceeded 14 million1.

1. AGCOM Data, November 2017

Themarketforfixednetworkservicesalsogrewslightly as a consequence of the contribution from the ultra-broadband services (over 30 Megabits per second) developed by Fastweb and Telecom Italia with considerable investments. The Italian market remains focused on integrated offers that include voice and broadband connection services; in 2017 operators expanded the offer further to include the mobile service. Accesses to broadband connections rose by about 6% compared to 2016, exceeding 15.6 million.

2012 2013 2014 2015 2016 2017E

46%

13.4 13.5 13.8 14.2 14.815.6

46%47%

48%

50%

53%

Trend of number of broadband lines in Italy between 2012 and 2017

Broadband lines (Mln)Evolution of telecommunication expenditure in Italy

between 2012 and 2017 (€ billions)

2012 2013 2014 2015 2016 2017E

13.9

20.2

3431

28 28 29 29

17.4 15.7 15.9 16.2 16.7

13.1 12.6 12.4 12.3 12.5

Source: Asstel, for 2017 internally processed data

Fixed wirelines (net WS) Mobile

Source: EY, for 2017 internally processed data

This increase is related to operators’ investments in ultra-broadband (UBB) services. In the last few years, the investments of operators like Telecom and Fastweb, also through the Flash Fiber joint venture, have led to a radical change, and ultra-broadband services are now available to over 70% of Italian households and businesses. Ultra-broadband services have become the benchmark for all the main telecommunications operators in Italy, through the services for wholesale accesstothefibernetworkoftheincumbent.Attheendof 2017 there were over 4 million UBB lines, i.e. growing more than 60% compared to 2016. The market is held almost entirely by TIM, Fastweb and Vodafone.

Rising competition in the infrastructural evolution area is related to the creation of Open Fiber S.p.A., an Enel Group company that entered the wholesale infrastructure market through the acquisition of Metroweb S.p.A., aiming to cover over 9 million propertyunitswithFTTHfibernetworks,Itwasalsoawarded the two calls for tender launched by the Government for the construction of the public network in areas of market failure.

The merger of Wind/Infostrada and H3G led to greater discontinuity in the telecommunications world. The introduction of this new player spurred operators toacceleratetheconvergencebetweenfixedandmobilenetworks,lowertheirprices(alsoonthefixednetwork)and adopt customer loyalty policies.

In this context Fastweb retained its technological leadership thanks to a new-generation proprietary network extended to all major Italian cities. The network was further expanded in 2017 by way of the roll out plan for FTTCab and FTTH ultra-broadband networks via Flash Fiber S.r.l., the joint venture set up with Telecom Italiain2016.Thecompanyincreasedthesurfingspeedoffered and pursued a plan to migrate its customers to

1.4 2017 STRATEGIES & RESULTSCONTEXT & BUSINESS STRATEGY

Compliance with the rules of competition and transparency in communications to customers are two fundamental aspects of the telecommunications market that are strongly regulated and monitored by various public authorities.

Autorità Garante della Concorrenza e del Mercato (AGCM)

The AGCM (Italian Antitrust Authority) is an independent administrative authority entrusted with the task of ensuring compliance with the rules prohibiting anti-competitive agreements between companies, abuses of a dominant position and concentrations capable of creating or strengthening dominant positions that are detrimental to competition. The President and the members of the Authority are appointed by the Presidents of the Chamber and Senate.

Autorità per le Garanzie nelle Comunicazioni (AGCOM)

AGCOM (Authority for Telecommunications Guarantees) has the task of ensuring that operators on the telecommunications market compete in a correct manner, and reports to Parliament,whichdefinesitspowersandarticlesofassociation and elects its members.

In December 2016 the AGCM initiated a sanctioning procedure against all the main national telephone operators, challenging the violation of the rules of thecodeofconsumptionoffixedtelephonyanddataservices,inthefieldofmarketingviatheweboroutsideof points of sale.

In particular Fastweb has received a 2 million euro

finefornotgivingcustomersthepossibilitytochoose whether to request the activation of services immediately after the conclusion of the contract or only after the period established for the exercise of the right of withdrawal (14 days) has passed, in any case charging the costs related to the provision of the service for the period of time between activation and the possible exercise of the right of withdrawal. In implementing the Measure, Fastweb has undertaken tocorrectlyfulfilltheprovisionsoftheConsumerCodeby taking the following measures:

inclusion in the subscription proposal of two separate fieldsthatallowtheusertorequestthattheprovisionof the services requested via the web or outside points of sale begins during the withdrawal period; specificindication,intheGeneralContractConditionsand in the summary forms of the offer sent to the customer, of any costs that the latter will be required to pay in the event of exercise of the right of reconsideration, after having requested the execution of the contract during the withdrawal period; modificationoftheproceduresbymeansofwhichit is possible to request the revocation of the subscription proposal, also giving the possibility of a voice recording.

In 2017 all the main national telephone operators were sanctioned by AGCOM for adopting a frequency of renewaloftheiroffersandbillingoftheirfixednetworkservices on a 28-day basis instead of monthly.

Fastweb was the last operator to apply the four-week billing and renewal frequency, as it deemed it necessary to guarantee the comparability of its offers with those of competitors, considering that the change in the billing period had already been made, between 2015 and2016,byotheroperatorsonthefixedandmobilemarkets. Following a sanction of euro 1.16 million, thecompanyconfirmedtotheAuthoritythestart,already anticipated during the presentation of the commitments during the sanction procedure, of the process of return to the renewal and billing frequency on a monthly basis.

FAIR COMPETITION AND TRANSPARENCY IN BUSINESS COMMUNICATIONS

Broadband penetration

http://www.agcm.it/en/

https://www.agcom.it/


Total added value2015

Mln. € 2016

Mln. €2017

Mln. €Sales revenues 1,736.2 1,795.1 1,944.2

Other revenues and income 95.4 101.2 145.6

Production value 1,831.6 1,896.3 2,089.9

Cost for the purchase of goods and services -637.5 -615.8 -751.4

Costs for rents and leases -395.5 -397.9 -353.5

Operating costs -1,033.0 -1,013.6 -1,104.8

Other operating expenses -19.3 -12.9 -17.6

Provisions for risks and other provisions -549.8 -537.7 -555.4

Total added value 229.5 332.1 412.0

Generated and distributed added value, 2017

increasingly performing technologies.

Fastweb consolidated its mobile positioning through the launch of new 4G technology offers, on Full-MVNO architecture with TIM radio network, and the preparation for the new 5G mobile technology. Dedicated partnerships and experiments were developed to lay the foundations to become one of Italy’s 5G forerunners.

Presenceinthebusinessworldwasintensifiedthrough the development of value-added services in the ICT sector, from cloud computing to security and the expansion of the range of services for the Public Administration, facilitated by the creation of a new department within the company dedicated to this segment.

Continuous attention to customer experience and quality also played a pivotal role. In 2017 Fastweb launched new services and improved existing offers to give its customers an experience that is more in line with their needs and expectations.

All these activities led to important results. During the year, the number of customers increased by 4%, from 2.3 million to almost 2.5 million, while revenues increased by 8.3%. It should be noted that, compared to 2016, the item “Revenues from network infrastructure sales”, which refers to civil works and laying of the opticalfiberalongthesecondarynetwork,hasbeenincluded in the revenue calculation since 2017. Starting from 2017, Fastweb has sold network infrastructure on behalf of Flash Fiber, the joint venture set up with TIM, as already mentioned in paragraph 1.1.

Total Figures (€/000) 2015 2016 2017 Change 2017-2016 (%)

Customers (number) 2,201,145 2,355,130 2,450,530 4.1%

Revenues 1,736,212 1,795,095 1,944,224 8.3%

Revenuesfromfeesandtraffic 1,480,893 1,505,056 1,581,756 5.1%

Revenues from active interconnection 38,414 38,185 42,045 10.1%

Revenues from hardware sales 61,648 54,345 45,656 -16.0%

Revenues from customer activation 59,954 70,157 84,323 20.2%

Revenues from assignment of Indefeasible Rights of Use (IRU)

51,897 84,043 103,680 23.4%

Revenues from network infrastructure sale 0 0 50,455 -

Other revenues 43,406 43309 36,310 -16.2%

Gross Operating Margin - EBITDA 575,554 661,188 758,822 14.8%

Gross Operating Margin - EBITDA (%) 33.1% 36.8% 39.0% 6.0%

Net technical investments 540,570 580,794 668,102 15.0%

VALUE DISTRIBUTED TO STAKEHOLDERS

The value distributed to stakeholders is the economic value distributed to contributors, employees (through salaries), the Public Administration (through tax charges, the community, through donations, sponsorships and gifts) and the company itself through self-financing.

To calculate this value Fastweb follows the Guidelines of the Study Group on the Social Report “The GBS 2013socialreport”,whichproposeareclassificationofsome items in the income statement, supplemented by information on the allocation of the result for the year

based on the relevant stakeholders. The added value is shown in two separate and balanced statements: The total added value, represented by revenues net of intermediate costs and the distributed added value, consisting of the sum of the remuneration received from internal and external stakeholders of the organization2.

In 2017 Fastweb’s increase in turnover translated into a growth in the added value distributed to stakeholders from euro 332.1 million to euro 412.0 million (+24,1%).

During the year, the largest share of added value generated, equal to euro 178.3 million (43,3%), is distributed to workers through the remunerations andbenefitsavailabletothem.Thisisfollowedbythe

2. According to the guidelines followed, the value distributed to suppliers is considered as an intermediate cost and is equal to costs associated to the purchase of goods and services.

Distribution of added value to the community 0.6%Financial expenses – Remuneration of loan capital 1.9%

Duties and taxes – Remuneration to Public Administration 15.6%

Personnel costs – Remuneration to Personnel 43.3%

Self-financing–Remuneration of the company 38.6%

company’s remuneration (38,6%), up by over euro 63 millionduetotheincreaseinprofitsrecordedduringthe year, the remuneration to the Public Administration (15.6%) and the remuneration on credit capital (1.9%). The added value distributed to the community also

grew from around euro 1 to around 2.5 million, reaching 0.6% of the total added value distributed. Detailed information can be found in the 2017 Financial Statements.

Distributed added value 2015Mln. €

2016Mln. €

2017Mln. €

Total added value 229.5 332.1 412.0

Personnel costs - Remuneration to Personnel 172.3 176.8 178.3

Duties and taxes - Remuneration to Public Administration 3.5 48.0 64.2

Self-financing-Remunerationofthecompany 28.0 95.0 158.9

Financial expenses - Remuneration of loan capital 24.9 11.4 8.1

Distribution of added value to the community 0.7 1.0 2.5


The procurement process is governed by the Procurement Policy, which ensures that all the company’s suppliers operate to provide the best possible quality while respecting and sharing Fastweb’s commitment to customers, society and the environment.

The supplier selection process is guided by mandatory principlesoftransparency,economicefficiency and compliance with current regulations; the company also requires its Business Partners to presen certifications regarding the management of quality, health and safety at work and environmental impacts. In order to successfully conclude the accreditation process, all suppliers must sign

specificclausesrelatingtoenvironmentalandsocialresponsibility issues that include compliance with applicable legislation, possession of the required authorizationcertificatesandtheadoptionofprinciplesfor the protection of workers, with particular attention to the protection of the fundamental rights of workers as internationally recognized.

Communication with suppliers takes place through the Supplier Portal, the digital platform that addresses all the companies already registered in the supplier register and all the companies that intend to submit their candidacy as potential suppliers through thepre-qualificationprocess.

1.6 SUSTAINABILITY APPROACHSustainability has been an integral part of Fastweb’s strategy since 2016, to be achieved through 4 areas of action, i.e. the strategic areas around which the company has decided to arrange its activities: Smart digital community enabler, Trusted and lean customer partner, Work and Inclusion, Responsibility and Environmental Sustainability.

In order to increasingly integrate sustainability into the various company activities, the “Corporate Social Responsibility” function was created in 2017, reporting directlytotheMarketing&CustomerExperienceOfficer.

The objectives of the new function include:

valorization of initiatives already underway by integrating them into a broader and more structured sustainability strategy;

coordination with the various company departments to identify the activities that are consistent with the sustainability strategy;

identification of possible areas for improvement within the organization and integration between sustainability initiatives and business objectives;

development of a communication plan that

allows the company’s reputation to grow not only through traditional means of communication, but also by word of mouth.

The CSR function launched a project to update and analyze the key sustainability issues for the organization and for the telecommunications sector as a whole. Starting from the four sustainability pillars and a scenario and benchmark analysis of over 30 national and European policies, the relevant topics and sustainability trends ofthesectorwereidentified.

The work was the subject of a workshop that involved 13 managers of the organization with key roles related totheidentifiedthemes,duringwhichthemainareas of action were discussed and sorted by priority based on the direct experience and understanding of the external scenario and business strategies. The results of the meeting, approved by the CEO, inspire the structure and contents of this document andrepresentthefirststeptowardsabroaderinvolvement of the entire organization, aimed at increasing the culture and internal awareness about the strategic role played by sustainability.

Fastweb worked with 1,551 suppliers in 2017 (of which 99 registered in the Supplier Register in the year). In 95% of cases the companies were under Italian legislation and were concentrated in the sectors of professional services (about 31% of the value of purchases), ICT products (about 27%)

and network infrastructure (about 8%). Fastweb outsources part of the service-provision processes to large companies by entering into framework partnership agreements that ensure adequate performance and reliability levels, also in social and environmental terms.

Distribution of suppliers by product category

NB: In case of multiple service provisions across several categories, the overriding category was considered for the purposes of the current

Sustainability Report.

1.5 MANAGEMENT OF THE SUPPLY CHAIN

Machinery 0.5%Marketing 1.1%

Telecommunication Services 6.6%Various and sundry services 2.0%Licenses and rights 6.2%

Professional services 17.8%ICT equipment 32.5%

Network infrastructure25.0%

Communication 5.2%Real Estate 2.3

Human Resources Services 0.6% Furniture, equipment, consumable goods 0.2%

Distribution of procurement by product category

Furniture, equipment, consumable goods 1.5%Machinery 0.9%Marketing 4.3%

Telecommunication Services 3.1%Various and sundry services 6.7%

Licenses and rights 5.2%

Professional services 18.8%

ICT equipment 16.7%

Network infrastructure12.6%

Communication 11.0%

Real Estate 9.4%

Human Resources Services 9.7%

http://www.fastweb.it/corporate/portale-fornitori/?lng=EN


ObjectivesMonitoring the environmental impacts and their progressive mitigation, in particular regarding energy consumption and greenhouse gas emissions, is one of the objectives that drive the company’s business. Fastweb is also committed to supporting the territory and communities through specific initiatives and projects, in order to maximize the social value generated in the territories where it operates.

ObjectivesBuilding a positive working environment, open to diversity and able to attract and develop the best talents is a strategic priority for Fastweb. The company is proactively committed to recruiting and exploiting people, paying the utmost attention to their well-being and safety and considering the internal involvement as a lever of innovation for the entire organization.

Cross issues

Economic and business performance

Ethics and

compliance

ObjectivesFastweb’s objective is to support the digitalization of the Country, both providing fast and convergent solutions for connectivity and giving its contribution in spreading digital competencies so that the digital transition becomes a driver of social and economic develolpment. The company is commited to monitoring the evolution of laws, regulamentation and scientific studies related to the impacts of technology on people’s lives to upgrade promptly its internal systems in line with international best practices.

ObjectivesFastweb wants to be a trusted and lean partner for all of its customers, providing innovative services, aiming at the continuous improvement of the customer experience in terms of quality of service, user experience and accessibility to services and information. The company is highly committed to ensuring privacy and personal data protection and, with respect to the issue of cyber security, to ensure its customers the protection of personal data and of IT equipment.

Digital infrastructure for the Country Technological and services innovation Digital literacy in schools and the workplace Value generation and support to entrepreneurship Impacts of technology on people’s lives

Listening to customers and quality of service Transparency and trust Privacy and cyber security

Energy efficiency and climate change Help and support to local communities

Issues

Issues

Diversity, equal opportunities and meritocracy Attracting and training talents Health and safety in the workplace Welfare and professional well-being

Issues

Issues

Sustainability pillars and key issues


enabler


partner

Responsibility and

environmental sustainability

Work and inclusion

For further inform

ation please see Chapter 2

For further inform


For further inform


For further inform



SDG The contribution of Fastweb

Reference pillar Key Projects

Through projects to extend and enhance telecommunications infrastructures and investments in technological innovation, Fastweb contributes to Internet access and digital development across the country, promoting convergent and quality solutions.


enabler

Network extension and enhan-cement programs (page 36)

WOW FI (page 38)

With trials on 5G services in Bari, Matera and Rome, Fastweb contributes to the transformation of the cities of the future. The goal is to develop new services and applications suitable for increasingly smart cities, with low environmental impact and citizen-friendly.


enabler

5G experiments in Bari and Matera (page 41-42)

Protocol on the development of 5G with the city of Rome (page 41)

Entry in 5G IA (page 41)

For Fastweb, protecting the environment also means paying attention to the sustainable design of ICT tools linked to its services, in particular in terms ofenergyefficiencyofproductsand quality and recycling of packaging.


partner FASTGate (page 56)

By monitoring the greenhouse gases emissions linked to all phases of the value chain, Fastweb undertakes to monitor its impact in terms of climate change. The goal is to develop services that can facilitate the transition to a low-impact climate model.

The Carbon Footprint of Fastweb (page 100)

Many of the projects launched during the year stemmed from the collaboration between Fastweb and other companies, institutions and institutional players with whom the company has established win-win relationships guided by a common desire to contribute to the objectives of sustainable development.

Cross objective

Fastweb Digital Academy (page 44)

5G experiments in Bari and Matera (page 41-42)

Fastweb4School (page 46) Digital well-being Project (page 47)

Initiatives for the territory (page 103)

According to a strategic line shared with Swisscom, Fastweb conducted an internal reflection on how its operations contribute to the realization of the 17 Sustainable Development Goals (SDGs) established by the UN for 2030, identifying 9 priority

objectives in relation to the 4 pillars of Corporate Social Responsibility. The goal is to start a broader reflection in order to identify areas of action that initiatives must be concentrated on.

SDG The contribution of Fastweb

Reference pillar Key Projects

Fastweb promotes new digital skills and aptitudes with the aim ofissuing3,000certificates by 2019 through the Fastweb Digital Academy. The company intends to continue to work together with schools, businesses and institutions to disseminate skills that enable sustainable and truly inclusive digital development.


enabler

Fastweb Digital Academy (page 44)

Fastweb4School (page 46) Digital well-being Project (page 47)

Fastweb intends to endorse the protection of diversity and the promotion of gender equality more and more actively, starting fromafirstsetofinitiativesthatthis year have concerned the valorization of female talent.

Work and inclusion

Enrollment in Valore D (page 86)

Participation in Elle (page 45) MaamU - Maternity as a Master (page 82)

Energy is a precious asset and Fastweb is committed to using it efficientlythroughenergysavinginitiatives and renewable energy, which already today represent 100% of direct electricity supply.

Responsibility and

EnvironmentalSustainability

Fastweb energy consumption (page 95) Energyefficiencyinitiatives(page 99)

Fastweb is aware that its entrepreneurial success is linked to the passion, skills and ideas of over 2,600 people who are part of it. For this reason, the company is committed to building a positive, attractive work environment, capable of valuing talent and open to dialogue and involvement.

Work and inclusion

Talent attraction initiatives (page 75)

Listening and engagement programs (page 79)

Smart working (page 83) Welfare and work-life balance (page 82)

Fastweb’s contribution to the SDGs

Responsibility and

EnvironmentalSustainability

https://sustainabledevelopment.un.org/sdgs

Smart digital community enabler 3130 Smart digital community enabler

Smart digital community enabler

Contributing to the sustainable development agenda means working to ensure that digitalization is a driver for change, economic growth and social inclusion. To achieve this goal and put into practice its vision of “enrich life and work through the Internet”, also this year Fastweb has promoted the development of innovative and convergent solutions by extending and technologically upgrading its infrastructural networks and disseminating digital skills. This way Fastweb contributes to achieving objectives 4 – Quality education, 9 – Industrial and infrastructure innovation and 11 – Sustainable cities and smart cities.


DIGITAL LITERACY IN SCHOOLS AND THE WORKPLACE

IMPACT OF TECHNOLOGY ON PEOPLE’S LIVES

VALUE GENERATION AND SUPPORT TO ENTREPRENEURSHIP

COMMITMENTS UNDERTAKEN 2017 RESULTS FUTURE OBJECTIVES

Issue3,000trainingcertificatesby the end of 2019 through the Fastweb Digital Academy, 1,000 by 2017

1,300certificatesissued Catalogue of courses provided by Fastweb Digital Academy.

First courses launched in the city of Palermo

Issue3,000trainingcertificatesby the end of 2019 through the Fastweb Digital Academy, 2,000 by the end of 2018

Launch and disseminate “Digital IQ” a tool to assess digital skills and aptitudes

Promote the Fastweb4School project within Italian schools, to support the development of digital projects

Launch and disseminate a model of digital skills assessment

Tool to assess digital skills and aptitudes was launched

Inclusion of Fast Up School among the initiatives of “Protocolli in rete”, initiative of the MIUR (Ministry of Education) to promote implementation of the Digital School National Plan

Fastweb4School launched: an initiative promoted in collaboration with the MIUR, aimedatfinancingdigitalprojects in secondary schools

2017 RESULTS FUTURE OBJECTIVES

Launch of the “Digital well-being” project for the promotion of a conscious use of the Internet in secondary schools

Implement initiatives aimed at improving the digital wellbeing of customers and citizens


Complete the upgrade of the FTTCab network to the VDSL-enhanced technology

Complete the extension of fiberservices(FTTCab/FTTH)reaching 50% of the Italian population by 2020

Extend the FTTH network to 5 million households and businesses by 2020

70% upgrade of the FTTCab network to VDSL-enhanced technology was reached

The infrastructure expansion program was continued, reaching around 13 million property units in 1,000 cities, of which 8 million with a proprietary network

7 cities with connectivity up to 1 Giga was reached

Complete the upgrade of the FTTCab network to the VDSL-enhanced technology

Complete the extension of fiberservices(FTTCab/FTTH)reaching 50% of the Italian population by 2020

Extend the FTTH network to 5 million households and businesses by 2020

Continue the customer migration plan to the best available technology


Strengthen the WOW FI network

Users of the WOW FI service increased by 70%

Service quality and user experience was improved

Completethewi-fidevelopment plan by 2018

Reach the population in large cities through a 5G infrastructure by 2020

Strengthen mobile service further by providing 4G and 4Gplus to 96% of the Italian population

Transition to Full Mobile Virtual Network Operator (Full MVNO) with the mobile offer 4G and 4Gplus, which covers about 97% of the population was completed

DIGITAL INFRASTRUCTURE FOR THE COUNTRY

TECHNOLOGICAL AND SERVICES INNOVATION

COMMITMENTS AND RESULTS

FUTURE OBJECTIVES

Promote projects related to entrepreneurship and start-ups in particular in the 5G area


albeit with some improvement, recording results below the European average in digital skills.

Lastly, as regards the digitalization of public services, the country lost 4 positions (from 17th to 21st place) compared to the 2016 survey, mainly due to the limited use of e-government solutions in terms of number of users and extent of the online services used.

These results combined highlight the importance of a wide-ranging and concrete effort to bring Italy in line with other European countries. This is a crucial challenge for the future, which requires a cultural and technological revolution which Fastweb intends to continue to make a transversal contribution to, from infrastructural development to support for citizens, in particular through the promotion of digital skills.

Digitalization is a driver of radical change in economic, social and business processes. Experts talk about a new industrial3 and cultural revolution that is bound to profoundly change production patterns and society as a whole, creating new opportunities but also new challenges for public and private players.

As of 2016 the “National Strategy for Ultra-Broadband” and the “National Strategy for Digital Growth” are the main instruments utilized at a national level - in continuity with the European Digital Agenda - in order to

promote new generation connection services and make digitalization a driver of economic and employment growth that is able to improve the quality of life.

As noted in the 2017 edition of the Digital Economy and Society Index (DESI), the annual study with which the EU monitors the state of digitalization in Europe, also this year Italy’s technological transition has shown uneven results that have led the country to rank 25th in Europe for the second consecutive year, followed only by Greece, Bulgaria and Romania.

DESI 2017, Italy’s Positioning 1 Connectivity Italy Cluster EU

rank score score scoreDESI 2017 24 0.54 0.53 0.63DESI 2016 27 0.44 0.46 0.59

0.000.100.200.300.400.500.600.70

DESI 2014 DESI 2015 DESI 2017DESI 2016

IT EU

2 Human Capital Italy Cluster EUrank score score score

DESI 2017 24 0.40 0.40 0.55DESI 2016 24 0.38 0.38 0.53

0.00

0.10

0.20

0.30

0.40

0.50

0.60


IT EU

3 Use of the Internet Italy Cluster EUrank score score score

DESI 2017 27 0.36 0.39 0.48DESI 2016 27 0.34 0.37 0.45

0.00

0.10

0.20

0.30

0.40

0.50


IT EU

4 Integration of digital technologies

Italy Cluster EUrank score score score

DESI 2017 19 0.33 0.27 0.37DESI 2016 20 0.30 0.25 0.35

0.000.050.100.150.200.250.30

0.400.35


IT EU

5 Digitalization of public services

Italy Cluster EUrank score score score

DESI 2017 21 0.44 0.43 0.55DESI 2016 17 0.46 0.42 0.51

0.00

0.10

0.20

0.30

0.40

0.50

0.60


IT EU

Italy’s performance in the 5 DESI areas

This is the result of a very different performance in the areas analyzed by the study. Regarding the “connectivity”, parameter, which includes a series of indicators on the extension and take-up of broadband and ultra-broadband, on mobile connection services and Internet subscription prices,Italyhasmadesignificantprogress,gaining 3 positions (from 27th to 24th) above all thanks to the good results achieved in the extension of the new generation networks (NGA), now accessible to 72% of households compared to the 45% recorded in 2015.

The national positioning also improved in the integration of digital technologies which measures

the digitalization of the private sector. Italy is closing the gap with the EU and has moved from the 20th to the 19th place thanks to the good results obtained, for example, in e-billing and the use of social media by companies, while e-commerce continues to record disappointing performance, especially in the SME segment (according to Eurostat data, only 7% of this type of companies use the digital commercial channel).

“Human capital” – related to digital skills - and the’“use of the Internet”, which focuses on measuring the use of the web among citizens, remained quite stable instead. Italy continues to rank 27th for the use of online services (from banking to access to information),

3. https://www.accenture.com/_acnmedia/Accenture/Conversion-Assets/WEF/PDF/Accenture-DTI-Unlocking-Digital-Value-Society-Slideshare2.pdf

Connectivity Human Capital Use of the Internet Integration of digital technologies Digitalization of public services

0

Denmark

Lithuania

England

Czech Rep

ublic

Netherl

ands

European UnionAustr

ia

Hungary Italy

FinlandSpain

Ireland

Latvia

Luxem

bourgFrance

Germany

CyprusGree

ce

Sweden

Portugal

Estonia

Slovakia

Croatia

Belgium

Slovenia

MaltaPoland

Bulgaria

Romania

10

20

30

40

50

60

70

80

2.1 DIGITALIZATION IN ITALY: HOW ARE WE DOING?

https://ec.europa.eu/digital-single-market/en/desi

https://ec.europa.eu/digital-single-market/en/desi

https://www.accenture.com/_acnmedia/Accenture/Conversion-Assets/WEF/PDF/Accenture-DTI-Unlocking-Digi


In the last twelve months, Fastweb has focused itseffortsonimprovingtheFTTHfiberopticultra-broadband network, introducing the new Gigabit Passive Optical Network (GPON) technology that optimizes network infrastructures and therefore allows connection speeds up to 1 Gigabit per second. The replacement was completed in December 2017 in all the seven cities that are historically wired in FTTH with Fastwebfiberoptics(Milan,Turin,Genoa,Bologna,Rome, Naples, Bari). During the year, through the company Flash Fiber S.r.l. co-participated with TIM, coverage in FTTH has been extendedtofivenewcities:Palermo,Catania, Perugia, Venice and Padua. In the next few years Fastweb plans to extend this coverage to a further 18 Italian cities, to achieve 29 cities reached to complete the plan4. At the same time, the company continued to work onexpandingthefiberopticstotheproximitycontrolunit, the so-called Fiber To The Cabinet (FTTCab), with which 130 cities were reached in 2017 with a connection speed of up to 200 Megabit per second.

Internet access technologies have been devoted a great dealofattentiontoallowcustomerstobenefitfromalevel of service aligned with the best market standards in terms of speed, performance, reliability and continuity of Internet and voice connection. In 2017 the technological upgrade program involved about 180 thousand customers, who took advantage of the best access technology available from their homesoroffices(90thousandofwhicharefiberoptics). Also thanks to this plan, at the end of 2017 over 1 million households and businesses were active on Fastweb’s ultra-broadband infrastructure, up by around 30% compared to the end of 2016.

TECHNOLOGICAL INNOVATION AND CONVERGENCE

Fastweb is among the operators that, in recent years, have heightened their focus on convergence to provide innovative services and allow Internet access and use anytime anywhere, with any technology and for any need, thus realizing the company commitment contained in the formula “everywhere, everything, everyone”.

During the year numerous activities contributed to strengthening the company’s performance in this area, from the expansion of the mobile segment to the continuous extension of the WOW FI service

and many innovative projects that are positioning Fastweb among 5G players on a national scale.

As for the mobile world, after completing the transition to Full Mobile Virtual Network Operator (Full MVNO) at the beginning of 2017, Fastweb worked to guarantee higher quality, broader network coverage and access to latest generation 4G and 4G Plus mobile services to its customers. Users were able to browse in 4G, with speeds up to 150 Megabit per second in download and 50 Megabit per second in upload in 7,077 Italian municipalities (with coverage equal to about 97% of the Italian population). Moreover, in 976 municipalities it is already possible to surf in 4GPlus, with speeds up to 300 Megabit per second in download.

Important additions concerned WOW FI, the community ofcustomerswhocanenjoyfreeaccesstothewi-finetworkevenwhentheyarenotathomeorintheoffice,with an increase in coverage and connection quality.

4. Milan is not included among the 29 main Italian cities as it is already covered by FTTH technology.

FTTCab

Cabinet

<250m.

FTTH

Cabinet

As one of the leading telecommunications operators in Italy, with one of the widest new-generation FullIPpropertyfiberopticnetworks,Fastwebisone of the country’s main digitalization players. Since its foundation in 1999, the company has investedmorethaneuro9billioninitsfixednetworkinfrastructure for the provision of ultra-broadband services that stand out for their speed, quality and reliability.

Fastweb’s history is intertwined with the will and ability to innovate so to give customers the best possible Internet experience. Continuing with this real commitment, in recent years the company has made the convergence of infrastructures and processes one of the fundamental guidelines of its operations, with the aim of offering innovative services that allow Internet access and use anytime anywhere.

The principle guiding the corporate actions is the enhancement of connectivity services to give customers a widespread, converging and high-quality Internet experience, overcoming the dichotomy betweenmobileandfixedtechnology.

INFRASTRUCTURE DEVELOPMENT AND NEW GENERATION NETWORKS

In 2017, in continuity with the plans for the development of the FTTCab and FTTH network which are part of the “Ultra-Broadband” National Plan for the implementation of the infrastructural objectives definedbytheEuropeanDigitalAgenda,Fastwebcontinued its program to expand its infrastructure and reach 13 million property units in 1,000 cities, of which 8 million with a proprietary network.

How the Fastweb network works

Fixed network connections essentially consist of a cable that connects the user’s home or company to the so-called “proximity control unit”, also called “cabinet”, which in turn is connected to a data traffic distribution area, also called “central unit”. Connections between the various elements of the network, which can occur through copper (DSL) or fiber cables, determine the capacity in terms of connection speed.

Fiber optics, as a technology able to exploit a higher frequency band than copper, obtains the best performance in terms of digital data transmission capacity. The type of technologies and cables used defines the type of connection.

FTTCab, Fiber to the Cabinet, defines connections in which the Fiber Optics, starting from the central unit, reaches the proximity control unit, i.e. the cabinet, thus retaining the copper wires to cover only the last section that goes from the cabinet to the user’s home/company. With this solution, the copper section usually never exceeds the length of 250 meters and therefore does not significantly affect the signal transmission speed.

FTTH, Fiber to the Home, refers to all connections in which fiber optics covers both tracts, from the main centre to within the walls of a consumer’s home/company.

GPON, or Gigabit Passive Optical Network, indicates a newly developed and even more recently implemented FTTH technology that aims to optimize network infrastructures to offer users cutting-edge connection speeds.

2.2 FASTWEB’S CONTRIBUTION TO ITALY’S DIGITALIZATION


TOWARDS 5G

5. Identification and quantification of key socio-economic data to support strategic planning for the introduction of 5G in Europe - European Commission, 2016

KEY PROJECTS STRENGTHENING OF WOW FI

Over 800 Municipalities reached by the service

Over 70% Growth of WOW FI users compared to 2016

2.3 GBAveragemonthlytraffic per customer

OBJECTIVE

ExtendthequalityoftheFastwebwi-ficonnectionoutsidethehomeandoffices,to allow customers to access increasingly widespread and high-performance connectivity services and accelerate the implementation of a 5G network.

WOW FI is the widespread wi-fi solution launched by Fastweb to meet the needs of its customers and ensure a high quality network coverage even outside the home.

With this service, every Fastweb modem becomes an access point available to the community of customers, who have the opportunity to surf anytime and anywhere without additional expenses. All Fastweb mobile customers can also surf from their smartphone with unlimited traffic on the WOW FI network through a simple and immediate access mode that uses the authentication system offered by 4G SIM cards. Furthermore, sharing is a free choice of the community members, who may decide not to be part of it anymore any time they want.

Launched in December 2015 in 19 cities, WOW FI is now present

in over 800 Italian Municipalities, with an average monthly traffic per user of 2.3 GB. In 2017 service coverage was extended by adding numerous points of access in the most frequented areas of major cities (Turin, Genoa, Bologna, Verona and Milan). Users’ appreciation was confirmed by an over 70% increase in users.

Fastweb is building a dense network of wi-fi access points in the main Italian cities, which will complement the already extensive WOW FI coverage, with the aim of making the browsing experience more and more similar to that enjoyed at home. Since the installed devices can be easily upgraded to 5G, the wi-fi network will also be an accelerator for the realization of the latest generation mobile network which Fastweb has already started experimenting on.

To improve the user experience, a SIM authentication mechanism was introduced during the year that allows access without having to log in. Finally, through the enhancement of the “MyFastweb” application, users can monitor the connection quality in WOW FI, allowing access only if the signal is good; they can verify all the WOW FI connection sessions made with the relative traffic generated and have visibility of the geo-localized map locating all the access points.

KEY FIGURES(from 01/01/2017 to 31/12/2017)

In addition to the evolutions related to the mobile world and WOW FI, in 2017 Fastweb continued to explore the technological frontier of 5G, the next connectivity revolution able to combine the flexibility of a mobile networkwiththeconnectionspeedofafixednetwork.

According to the Ericsson Mobility Report published in June 2017, this new technology will extend to over 15% of the world’s population by 2022, allowing it to reach speeds higher than one Gigabit per second and enabling the Internet of Things, Industry 4.0 and Smart Cities. The 5G technology actually guarantees unprecedented reliability and latency as fundamental elements to ensure maximum connection performance also when a large number of devices are connected.

In December 2017 the international 3GPP organization, which regulates the standards of mobile telecommunications, published the 5G New Radio Non-Standalone operation (Nsa), the standard that represents the milestone for the large scale implementation of new networks and commercial applicationsandthatwillenablethefirstservices to be launched as early as 2019.

The new technology has also been the subject of targeted policies at European level, such as the “5G Action Plan for Europe” which has established a coordination platform for Member States with the aim of achieving the widespread dissemination of this technology by the end of 2020, also through cooperation between public and private actors. TheexpectedbenefitsaremanyandhavebeenquantifiedforItalyindirecteconomicimpacts of euro 15.7 billion and over 180,000 new jobs5.

http://www.fastweb.it/wowfi/


Thanks to the agreements for the frequencies signed in December 2016 with Tiscali and the extensive fiber-opticinfrastructurethatextendsovertheentirenational territory, Fastweb already has all the strategic assets needed to play a leading role in 5G. The project “Bari Matera 5G: together for a Digital Future”, was launched in 2017 and was developed with TIM and Huawei as part of the Tender of the Ministry of Economic Development “5 Cities for 5G”. The initiative concerns several experimental applications of the new 5G technology, which will bring the citizens and businesses of Bari andMateratobenefitfrominnovativeservicesinareassuch as health, industry 4.0, tourism and road safety by 2019.

In July the company also signed a Memorandum of Understanding with the Municipality of Rome for the development of projects based on 5G andwi-fitechnologies,withtheaimofdevelopingdigital applications for the Smart City and the IoT, to be applied by 2020 to some areas of the municipal territory. At the end of 2017 Fastweb became part of the 5G Infrastructure Association (5G IA), a network that aims to promote the dissemination of 5G technology in Europe. The 5G IA represents the European private sector within 5G Public-Private Partnership (5G-PPP), one of the main 5G research programs on a global level that was created as partofHorizon2020,theintegratedfinancingsystem for research activity of the European Union.

SMART CITY SMART HOMERURAL ENVIRONMENTS WORKPLACE

euro 8.1 million euro 1.32 millioneuro 10.5 million euro 30.6 million

6. Eu Ict-Sustainable Development Goals Benchmark, Harnessing the Icts to Advance Sustainable Development” – Huawei, 2017

According to the study, “Identification and quantification of key socio-economic data to support strategic planning for the introduction of 5G in Europe”, by 2020 the direct economic impact of 5G investments in Europe will be around euro 142 billion in terms of the 4 key areas (Smart City, rural environments, smart homes and workplaces), with around 2.4 million new jobs.

The evolution of the city centers into Smart City, will entail important improvements for the life of citizens, particularly in terms of transport, with a total impact of euro 8.1 billion, of which euro 22.4 million deriving from the reduction of climate-altering gas emissions and hydrocarbon consumption. Furthermore, access to a large quantity of real-time information will enable decision-makers to identify the priority areas of the city to act on (congested areas, points where crime is more prevalent, polluted

areas, etc.) and to evaluate the effectiveness of the solutions implemented.

For rural areas,thebenefitsof5Gwillbeoffsetby a reduction in the Digital Divide, which will allow new investments and opportunities for territorial development.

The distribution of IoT (Internet of Things) technologies applied to home automation will lead to the dissemination of the so-called “smart home”, where the ability to track energy consumption in real time will help optimize consumption, reducing its cost. This will be linked to a lower environmental impact, contributing to the decrease in climate-changing emissions,withabenefitofeuro609millionoutofthetotalestimatedbenefitofeuro1.32billion in 2025. “Smart” appliances, such as refrigerators and kitchens, will be able to offer more information on the quantity and size of

food, resulting in less waste produced. Smart homes will be able to offer advanced security measures, such as anti-theft, anti-smoke and firealarmsensorstoautomaticallycontactemergency services in case danger is detected.

In the workplace, 5G will become synonymous with information integration and data sharing, which will result in increased productivity. With anestimatedeconomicbenefitofeuro30.6billion in 2025, the possibility of integrating data ofadiversifiednaturewillleadtoimprovedsupply chain management, improved traceability andmoreefficientmanagementoflogisticsflows. 5G could remodel the notion of workplace, leading to an “anywhere office” situation where individuals will be able to work more easily from home or other locations, reducing travel time.

The advent of 5G is considered a real revolution for the potential it offers in terms of sustainable

development.The2030agendaidentifies in the development of new connection technologies an enabling factor to bridge the digital divide and thus develop a knowledge-based society, contributing to the achievement of the Sustainable Development Goals. A recent study sponsored by Huawei6, underlines the link between these objectives and the strengthening of ICT technologies. In particular, the research emphasizes that these technologies, if aligned with the sustainabledevelopmentstrategiesdefinedby the 2030 Agenda, will contribute in a fundamental way to the achievement of the following objectives: 3 Health and well-being, 4 Quality education, 5 Equal opportunities, 9 Industry, innovation and infrastructure, 11 Sustainable cities and communities, 13 Combating climate change.

5G Revolution: benefits according to the European Union and the impact on sustainable development

Expected benefits in 2025


Digital skills are a key factor for technological and digitalization trends to release their social development potential.

The demand for digital skills in the workplace is getting stronger. As highlighted by the annual study of the Digital Competence Observatory promoted by the Agency for Digital Italy, there is a growing need forprofilesabletocombinetraditionalknowledge

with specialized digital skills. The analysis shows that in the near future in Italy there will be 12 million workers affected, at least partially, by processes of progressive automation of their tasks. Furthermore, recent studies by the European Commission estimate 154,000 units as the potential gap in vacancies that could be generated by 2020 duetoalackofdigitaltechnicalprofiles7.

7. European Commission, 2016. EU Digital Agenda Scoreboard 20158. Citizens, Businesses and ICT, Istat report, December 20179. Digital school national plan, Minister of Education, University and Research, 201610. University2Business and Enel Foundation 2017, “The future is today. Are you ready? Research on the digital and entrepreneurial skills of Italian university students”

Being aware of the importance of digital education as a strategic factor for Italy’s growth and development, in 2017 Fastweb’s commitment in this sense was continued and expanded. Fastweb Digital Academy, the new school for digital

skills created in 2016 in collaboration with Cariplo Factory to offer specialized training courses foryoungpeopleandadultsinthefieldofdigitalskills,wassignificantlystrengthenedin2017.

BulgariaPoland

CyprusFrance

Portugal

GreeceIta

ly

Finland

Netherl

andsMalta

Slovenia

Lithuania

Hungary

Romania

SlovakiaLatvi

a

Sweden

Czech Rep

ublicIre

land

Estonia

Spain

Belgium

Luxem

bourgCroatia

United Kingdom

Denmark

Austria

Germany

1618

19 19 1921 22 22

2324 24

25 25 25 26 26 26 2628 28

29 2930 31 32 32

3334

People with basic digital competences (% population, 2016)

Source: Eurostat

2.3 DIGITAL LITERACY IN SCHOOLS AND IN WORKPLACESKEY PROJECTS BARI MATERA 5G: TOGETHER FOR A DIGITAL FUTURE

KEY FIGURES

55 partnersLead OperatorsUniversities and Research InstitutesPublic Entities involvedCompanies

Euro 60 million Total value of the project over 4 years

10 Areas of Application with over 70 use cases that will be tested in the two cities

OBJECTIVE

Realize a “permanent 5G laboratory” aimed at responding to the needs of the Public Administration, industry and citizens of Bari and Matera, encouraging the digital acceleration of the Lucanian/Apulian territory and valorizing local characteristics

The “Bari Matera 5G” project is part of the “5 cities for 5G”, tender, launched by the Ministry for Economic Development (MISE) to initiate experiments on the new fifth generation (5G) mobile network incorporating the guidelines defined by the European Commission in the Action Plan for 5G.

The Ministry has identified three areas: the metropolitan city of Milan, the cities of Prato and L’Aquila and the cities of Bari and Matera.

Fastweb, as the leader of the “Bari Matera 5G” project together with Tim and Huawei Technologies Italia, has been awarded the opportunity to start the pre-commercial 5G experiments in the C Band (spectrum 3.6 - 3.8 GHz) made available by the Ministry in these two cities.

More than 70 case studies have been identified within the

project and are attributable to 10 areas; those in which Fastweb is directly involved concern:

The Bari port area: through the installation of sensors for access control and environmental measurements, the company aims to develop a perimeter security and environmental monitoring service. The project plans to strengthen port logistics through the automation of loading and unloading operations and the efficiency of the management of goods.

Public safety and emergency management: through the use of drones, the dissemination of “wearable cam” and smart bracelets for the population, the project will help the police forces in the control of the territory and in the management of emergencies during mass events. The integration of the 5G network with the existing security

platforms during major events will make the whole process much more efficient.

Industry 4.0: the case study aims to achieve the digitalization of production processes through an integrated management of the production chain through distributed sensors that will allow, among other things, to trace the different machinery and apply “smart safety” and maintenance and monitoring systems for machinery remotely.

Healthcare 5.0: the extended connectivity enabled by the 5G infrastructure will allow experimenting with remote diagnostic systems such as remote diagnosis, remote monitoring of vital parameters and home telemedicine services.

Digital skills, the remaining gap

Although the broadband penetration level among household is now close to the European average, the Internet and web use development margins in Italy remain wide. 55.5% of the households without access to the Internet at home explain this choice as resulting from a lack of skills, and more than a quarter, 25.3%, do not consider the Internet an interesting tool8. Italy is positioned at the lowest levels of the digital skillsclassificationatEuropeanlevel:itranks19thin Europe for the share of population with basic digital skills and 22nd for the number of graduates in science or technology (STEM), with 13 graduates

per 1,000 inhabitants9.

TheItaliandelayinthefieldofdigitalizationalsoconcerns the areas of application of digital skills in the labor market. According to a study carried out by University2Business and Enel Foundation on a sample of over 2,100 university students under 30 throughout Italy, only 30% of university students knowthecorrectdefinitionof“mobileadvertising”,“cloud”, “e-billing” “or” big data “, while as many as 60% have never heard of technologies such as blockchain, the Internet of Things or Industry 4.010.

37

1134

https://www.fastwebdigital.academy/

http://www.cariplofactory.it/


KEY PROJECTS FASTWEB DIGITAL ACADEMY

KEY FIGURES

1,300 Certificatesissued 80 Classes formed 2,900 Hours of training provided 53% Presence of women among participants

OBJECTIVE

Fastweb Digital Academy was founded with the aim of accelerating contact between young people and the labor market work through specialized training courses on new digital skills. Guided by the goal of building the new generation of digital trades, the school aims to issue 3,000 training certificatesbytheendof2019.

Academy program, several collaborations have been started with MAAD! Milan / Animation&Audiovisual / District. The FDA has contributed to the creation of an economic district for the development of the audiovisual and animation sector, starting with the training and valorization of young talents. In May 2017 highly specialized courses were provided in Digital Storyboarding, Project Management of Videogames and Screenplay for Animation.

In October 2017, in partnership with Milan Film Festival, Fastweb Digital Academy presented “Ultrareal World”, the first 360° virtual reality cinema in Italy. Inside the BASE Space in Milan, an environment entirely dedicated

to virtual reality was created to offer the opportunity to experience the potential of virtual reality and technological innovations in the audiovisual field for all visitors.

The Academy has been the promoter of numerous events and initiatives related to digital evolution and the labor market, among which “Ama, impara e aiuta: le regole per raggiungere il successo senza tradire te stesso”, (Love, learn and help: the rules to achieve success without betraying yourself) an interesting workshop on talent and on how to reconcile professional success and private life led by Paolo Gallo, Chief Human Resources Officer of the World Economic Forum in Geneva. During the “Contentware Summit”, an event on the trends

of content marketing based on an innovative format, the Fastweb Digital Academy proposed three interventions by specialists in the Content Marketing sector.

Furthermore, Fastweb participated in “Elle Active”, Elle initiative for the promotion of female talent, organizing workshops and individual interviews with participants in the event, aimed at giving suggestions for the integration of digital skills in their own track record.

Fastweb Digital Academy is the school that prepares young people for digital professions, created as part of Cariplo Factory from the collaboration between Fastweb and the Cariplo Foundation. The philosophy that inspires it is based on three fundamental principles:

Learning Digital: teaching and disseminating the logic and skills necessary to use digital tools, for the creation of new products and services;

Working Digital: contributing to the development of new digital skills, for the professional growth of people and the competitiveness of organizations;

Acting Digital: promoting,

through digital skills, aptitudes and conduct that are needed for the growth of innovation and culture in Italian society.

The courses target people aged 20 to 40, are open and free for those who pass the selection process. In 2017 the 44 courses were developed as part of a training offer divided into three main areas:

Digital Design & Making, aimed at developing skills in the areas of visual, product and fashion design;

Digital Development, an area that focuses on programming techniques and languages;

Digital Marketing & Communication, addressed to the marketing and

communication sector.

Moreover, in 2017 the Academy experience was also offered in Palermo, with the launch of three courses at the Arca Consortium. In particular, the courses concerned Personal Branding, Digital Marketing Fundamentals and Java Fundamentals.

The courses of the Fastweb Digital Academy are provided with the collaboration of professionals in the sector. In particular Fastweb has entered into agreements with Cefriel, Digital Bros Game Academy, Forge Reply, IAB, Netcomm, Oracle Academy, P&B, WeMake.

In addition to the courses offered in the Fastweb Digital

www.fastwebdigital.academy


In 2017 the company developed a tool to assess digital skills and aptitudes, created by Fastweb in collaboration with Università degli Studi Milan Bicocca and a group of psychologists and psychometrists. The test focuses on soft skills and content-related critical digital skills and is based on 5 areas (digital well-being, security, digital content creation, communication and collaboration and information). This tool has been integrated into the recruiting platform as a screening test of candidates’ digital skills and aptitudes (see Chapter 4).

A version of the test developed for secondary school students was used for the “Digital well-being”. project. The project, run together with Università degli Studi Milan Bicocca, is an educational action targeting secondary school teachers and aimed at developing digital awareness, meant as the ability to evaluate and understand the quality of information, establish and manage good relationships

and operate on the web in a secure manner, without being overwhelmed by the over-abundance of news and communications.

The project aims to train teachers to consciously and responsibly use media and support it by creating a training package, in the development of educational activities aimed at transferring these skills to students.

In this context, the developed test aims to measure the effectiveness of training on teachers by recording improvements in students’ digital skills.

“Digital well-being”, which will end in 2018, was launched in 2017 through the provision ofthefirsttrainingmodule,whichinvolved78teachers, andthefirstsurveyof3,396studentsfrom18schoolsin the province of Milan and Monza-Brianza.

The test was a valid self-assessment tool able to identify areas for improvement of digital knowledge.

KEY PROJECTS FASTWEB4SCHOOL

Together with the Ministry of Education, University and Research (MIUR) and with the support of the Produzioni dal Basso crowdfunding platform, Fastweb has launched Fastweb4School, a project for first and second level secondary school students.

The tender, created to promote and support the development of digital projects in secondary schools, allows students to get involved personally in the creation of an innovative project, following each phase, from fundraising to development, up to implementation.

To participate in the initiative, schools can send their project ideas through the MIUR platform “Network Protocols” (www.istruzione.it/ProtocolliInRete/Bandi_PNSD.html). The projects selected, according to criteria

such as originality, impact on the development of digital skills, feasibility and replicability, can begin their fundraising through the crowdfunding platform Produzioni dal Basso.

For every educational institution that will collect 50% of the budget for the initiative presented by crowdfunding, Fastweb will provide the remaining 50% up to a maximum of euro 10,000 per project. Funding is non-repayable and ownership of the realization of the idea will remain with the educational institution that proposed it.

Furthermore, Fastweb will provide schools with support on how to upload the work on the crowdfunding platform, will help classes transform the idea into a feasible project and communicate it in the

best way possible on social networks and in the press. This support will include free training days and webinars, also in partnership with institutions and universities, dedicated to the sharing economy, the realization of online fundraising campaigns and the development of fundamental digital skills.

The first Tender of Fastweb4School, launched in December 2017, was “Fastweb4Makers”, dedicated to the world of new digital artisans and aimed at developing engineering projects, such as electronic equipment, robotic realizations, 3D printing devices and numerical control equipment, but also objects made using digital technology through the processing of metals, wood or other materials used in traditional crafts.

KEY FIGURES

12,600 Recipient schools of the tender Up to euro 10,000ofco-financingfortheproject presented

OBJECTIVE

Through crowdfunding, promote the realization of digital projects in secondary schools and contribute to the growth of digital skills among school desks; encourage students, digital natives, to become active users of digital and technology.

www.fastweb4school.it

DIGITAL SKILLS AND APTITUDESReconfirmingitswillingnesstoinvestinstudents,during the year the company signed a memorandum of understanding with the MIUR (Ministry of Education, University and Research) for the launch

of “Fastweb4School”, the initiative to promote therealizationofdigitalprojectsinfirstandsecondlevel secondary school.

http://www.benesseredigitale.eu/

Trusted and lean customer partner 4948 Trusted and lean customer partner

Trusted and lean customer partner

For Fastweb there is no sustainability if customer relationships are not based on listening, transparency and trust. Through #nientecomeprima the company was the first telecommunications operator in Italy to start a radical transformation in the name of clarity and simplicity for users. The goal is to nurture this dialogue in an active way, not only through listening and developing offers that respond to customer needs, but also by promoting new low-impact consumer styles for ICT products. In this area Fastweb is committed to reducing environmental impacts by contributing to objective 12 – Ensuring sustainable production and consumption models.


“Hidden telephony costs” related to the payment of ancillary services not directly requested by customershaveincreasedsignificantlyinrecentyears. Telephony service users often unwittingly pay for certain utilities, such as the plan change fee, the “I called you” or “call me” service, listening to the answering machine, checking the remaining credit, extra-threshold calls, and are often subject to constraints and penalties related to subscriptions.

In this context, “Niente come prima” is the formula chosen by Fastweb to promote a radical change in the

telecommunications market, in the name of transparency, consumer freedom and elimination of restrictions. It is a unique initiative on the Italian scene, aimed at making services easier to use, commercial conditions clearer and choice freer. #nientecomeprima began with “two chapters” focusing mainlyonmobilebutalsoinvolvingfixedtelephonyservices, for which further developments are expected in 2018. The campaign provides for the elimination of penalties, duration constraints and hidden costs for ancillary services, starting from six fundamental principles.

WHAT YOU SEE = WHAT YOU PAY€

NO OBLIGATIONS

FIXED PRICE€

EXISTING CUSTOMERS = NEW CUSTOMERS

MORE ADVANTAGES IF YOU ALSO HAVE A FIXED CONNECTION

THE ONLY ONES WITH INTERNATIONAL CALLS INCLUDED

Clear and transparent offers

No penalties on early terminations of contracts, that have no minimum bonding duration

All the offers for new customers are available for free for all customers

Lower mobile phone charges for customers who have a contract for home fixed connection

50 international destinations included in the subscriptions

No more promotions, prices remain always the same

3.1 NIENTE COME PRIMA (“NOTHING WILL EVER BE THE SAME AGAIN”): THE NEW FASTWEB APPROACH TO TRANSPARENCY


Enrich the experience of customers with new services and through new business models

Continue the liveFAST campaign and increase the number of registered customers

Strengthen the positioning of a 360° infrastructure operator that broadens the offer of Cloud, Security & ICT services with the aim of being the enabler of the digital transformation of Italian public and private companies

FASTGate was launched as the new Fastweb modem

The liveFAST program was renewed, number of registered customers doubled and number of vouchers downloaded tripled

Fastweb’s presence in IT Security and Cloud was strengthened thanks to the introduction of two new security solutions, FAST Security 360° and FAST Security Advanced Protection, and the enhancement of the FAST KaleiDoS solution

Listening initiatives were also extended to staff in direct contact with customers

Develop solutions and offers characterized by the convergencebetweenfixedandmobile

Continue the path of proximity to the customer in the digital world

Analyze and improve the sustainability of the products and services offered


Continue along the path of listening to stakeholders launched in 2016 with special focus on service to residential customers

The new #nientecomeprima strategy was launched, which promotes a new paradigm based on transparency, consumer freedom, and the elimination of constraints

Develop and enhance the #nientecomeprima strategy


Update processes and organizational solutions in implementation of the new European Regulation on personal data protection

Company DPO was appointed Work table activities continued for the application of the GDPR at the company

Complete the updating of business processes in line with the changes introduced by the GDPR

LISTENING TO CUSTOMERS AND QUALITY OF SERVICE

TRANSPARENCY AND TRUST

PRIVACY AND CYBER SECURITY


http://www.fastweb.it/corporate/landing/nientecomeprima/


During the year Fastweb continued to work on improving service quality and performance through its own network and enhancing its own offer to better interpret the needs of the three business customer segments:

Consumer & Small Business: which includes households, professionals, micro-companies and small businesses;

Enterprise: which is aimed at medium-sized companies, large companies and Public Administration;

Wholesale: which provides connection services to the so-called OLOs (Other Licensed Operators - or alternative telephone operators with respect to the main players on the market).

CONSUMER & SMALL BUSINESS

#nientecomeprima was the prerequisite for developing a series of unique commercial initiatives on the Italian market with regard to transparency, clarity and simplicity for customers. Three simple formulas are offered to the Consumer and Small Business market: only Internet, Internet and telephone and mobile offer. The offers have been developed according to the concept of “blocked price”, eliminating promotions on the fee and thus guaranteeing a certain expenditure for customers over time. In particular, the extra costs often charged for the use of features such as the voice mail service, the “call me” service and the control of the remaining credit have been eliminated. The connection charge for consumption calls was made free and the costs for exceeding the thresholds provided by the subscription were among the lowest on the market.

The new approach is guided by maximum freedom, with the elimination of traditional duration constraints. Fastweb has introduced the possibility of using thetrafficminutesincludedintheoffertoover50international destinations including Europe, China, Canada and the United States and the opportunity, for mobile customers, to always adhere to new offers for free and with a simple click. All offers are designed to allow, without consuming the Gigabytes included inthesubscription,surfinginunlimitedmobility and in security thanks to the automatic connection totheWOWFIhotspot,thewi-fiservicesharedamongthe customer community.

The digital proposition was also further strengthened in 2017. Customers who choose Fastweb have been able to access the editions of major newspapers and online storage services for free for some years now. The possibility to access Chili, a pay-per-view streaming platform, has been added to these services for customers to access and enjoy content included

in the offer. Services such as Xbox Live Gold, Microsoft Office365PersonalandChilicanbesubscribedfromSeptember by paying the annual subscription on the bill in installments. Amazon Prime was added in December 2017: those who buy any Fastweb offer can use all Prime services for 12 months. Another addition was the expansion of the joint offer with Sky also to the Internet-only offer and the introduction of Now TV, Sky’s Internet TV, withtheaimofintegratingitintoallfixedlineoffers.

Finally, at the beginning of the year the Consumer world saw the launch of FASTGate, the latest generation modem in terms of design and customer experience,optimizingwi-ficonnectionspeedandcoverageandeasytomanageandconfigurethrough a smartphone application.

Regarding the Micro Business segment (VAT), Fastwebconfirmeditsorientationtowardssimple,clear and “no surprises” offers, guaranteeing a single price forever and with a review of costs for consumer calls in line with what was proposed for the Consumer segment. The Micro Business offer has also been enriched with new digital services included for one year(suchasMicrosoftOffice365HomeandAmazonPrime). To facilitate the digital evolution of customers, the offer has been integrated with services such as the new mobile POS for mobile payments and solutions to update and enrich their social media pages.

To increase customer loyalty, the focus was onaconvergentapproachbetweenfixedandmobilethrough new bundles and cross-segment offers such as “Casa & Bottega”, which guarantees allnewcustomerswithVATaneconomicbenefit onthefixedoffer,iftheychooseorhavealreadychosenFastweb for the home as well.

For the Small segment, the structure oftheofferwasconfirmedwhilethepositioning of the “Prime” bundle offer was strengthened (including the best of Fastweb services such as ultra-broadband, premium assistance, with restoration of blocking disservices within 6/8 working hours following the report, and IP addresses) and symmetric connectivity (i.e. with the same speed in download and upload), which represent a unique proposal on the Small market. Performance for customers in FTTCab was also strengthenedwiththelaunchofthe200Mbpsprofile.

To guide companies in their process of digitalization and adoption of cloud solutions, the Small portfolio hasbeenenhancedwiththeMicrosoftOffice365service, which includes e-mail services, storage (1 Terabyte of space), collaboration platforms (SkypeforBusiness)andthewholeOfficepackage is always up to date.

3.2 A CONSTANTLY EVOLVING OFFERInMay,withthefirst“Start”phase,Fastwebpresentedthe new offers for 4G mobile and for home & mobile launchingthesefirstinitiatives:

elimination of extra costs (answering machine, “call me” function, credit check) and costs related to the connection charge;

abolition of duration restrictions, also in terms of minimum subscription period and early termination penalties,aswellasthepossibilitytousethetrafficminutes included for 50 international destinations;

possibility to connect to WOW FI, browsing in mobility withoutconsumingtheGigaofdatatrafficincluded in the subscription. Promotions were also eliminated toguaranteeafixedpriceandspecificoffers for home customers were proposed.

The second chapter “Change”, in November 2017, introduced further innovations. The company launched the claim “Quello che vedi = Quello che paghi” (What you see = What you pay) reducing extra costs, eliminating promotions and administrative costs even forfixedtelephonyandprovidingexistingcustomerswith the opportunity to access new mobile offers, thusequatingthem,intermsofbenefits,tonewcustomers.Through #nientecomeprima, Fastweb addressed a need for transparency deeply felt by consumers, as demonstrated by the market success of the new offers. The goal is to continue along the path taken, strengthening the bond of trust with customers and marking the way for a widespread change in the market approach of sector operators.


the annual report on the state of IT security in Italy.

Another pillar of the Enterprise strategy lies in the open model which, through some partnerships, has allowed greater flexibility and innovation to be offered to customer, with a growth in the value of core services and above all of value-added services in the ICT and security areas.

Fastweb is now a Public Administration partner for its innovative approach, its wide portfolio ofvalue-addedservices,theperformanceofthefiberoptic network and its know-how on all aspects related to digital transformation. In particular in 2017, Fastweb consolidated its leadership position on TLC and ICT services, winning four new conventions:

SPC CONN (Public Connectivity System), for the provision of the network that connects all Italian public administrations, allowing to share and exchange data and IT resources;

Fixed Telephony 5, a framework agreement for the awardingofspecificcontractsconcerningfixedtelephony services in favor of public administrations;

Video surveillance systems, for the provision of thespecificinfrastructureofthevideosurveillancesystem, which includes hardware/software devices, such as IP cameras and supporting connectivity devices;

Consip Telephone Central Units 7, for the provision, installation and maintenance of advanced telephone solutions and related products and services, based on IP networks.

WHOLESALE

Also in 2017 the main national and international operators showed considerable interest in Fastweb’s offer on the Wholesale market. Some meetings were organized with the various Wholesale segments during the year to encourage relationships and communications with customers. In particular, national operators were involved in workshops dedicated to them and local settings were also reached through road shows across Italy. International operators were contacted through dedicated communications and the sponsorship of some important sector events held abroad.

The main project of 2017 was the launch of the new Flexible Optical Network (FON) transport network. Together with the projects promoted by the Open Hub Med consortiu11, which Fastweb is part of, the FON contributes to meeting the operators’ needtotransportsignificantvolumesofdatatrafficthroughout the national and international territory arriving at the landing stations of the submarine cables in the Mediterranean to reach the main European hubs.

11. Open Hub Med (OHM) is the consortium that aspires to be the first neutral hub in Italy for the exchange of communications in the Mediterranean area between Africa, Middle East, Asia and the rest of the world, exploiting the geographical position of Sicily to convey part of this traffic to the main European hubs through Italy. The hub neutrality derives from the consortium nature of OHM: in fact, the grouping of a plurality of subjects guarantees neutrality in the definition of contractual terms. Fastweb holds 11% stake in OHM, the remaining share is divided among the other 8 partners of the project (VueTel Italia, Italtel, Interoute, Eolo, XMED, Mix, Supernap Italia, Equinix Italia).

Lastly, through the Velocità Promessa (Speed Promised) project,Fastwebhasbeenthefirstand only Italian broadband operator to communicate to its customers during the subscription phase an accurate estimate of the browsing speed available attheirhomeoroffice.

ENTERPRISE

Fastwebhasconfirmeditscommitmenttoacceleratingthe digital transformation of companies and supporting the growth of their business, providing enabling infrastructures and for coordination, integration and management of technological solutions. Over the course of the year, the strategy on the Enterprise market has developed along three main directions: the provision of all services from own cloud with the guarantee of end-to-end control, standardization of solutions and processes andconvergenceoffixed,mobile,WOWFIandICTsolutions.

As for cloud, FASTcloud has been enriched with various services. In “IaaS” (Infrastructure as a Service), this has enabled the company to meet any type of infrastructural need, in the “SaaS” (Software as a Service) area, Fastweb has equipped itself with innovative tools for the provision of business applications through the creation of an ecosystem of ICT partners.

In 2017 the FASTcloud Disaster Recovery, service was also made available, which introduced a new approach for the protection of business and customer data. The FASTcloud additions continued with the launch of the Interconnect, service, which allows customerstobenefitfromOver-the-Top(OTT)cloud services through Fastweb private networks,

appropriately integrated with the infrastructures in the OTT data centers. This service represents a fundamental step for the expansion of FASTcloud that enables Hybrid & Multi-Cloud solutions, consolidating synergies with OTTs also through certificationsandpartnershipprograms.

Fastweb has strengthened its presence also in IT security, with both technological evolutions of existing solutionsandtheadditionofnewspecificproductsto support customers in response to increasing cyber threats. The technological evolution of products has involved various solutions, starting with FAST Security 360° which, through the technological updating of equipment, responds to the security needs of customers, also protecting high-speed Internet access. Secondly, the FAST KaleiDoS, solution was also strengthened as a platform for the protection of Distributed Denial of Service (DDoS) attacks that seek to exhaust the resources of an IT system, causing the blocking of services and damage to the company brand reputation, through an upgrade that today allows it to withstand attacks up to 40 Gigabits per second.

Two new security solutions have also been introduced, FAST Security 360° Cloud and FAST Security Advanced Protection: the former continues the virtualization strategy and provides perimeter security servicesandnextgenerationfirewallinthecloud in a centralized manner, the latter is a new generation antivirus that exploits cloud, big data, and technologies likemachinelearningandartificialintelligence, to intercept even the most sophisticated attacks from malware and ransomware.

In 2017 collaboration continued with Clusit, one of the main associations of experts in national information technology security, for which Fastweb provided information, analyses and data for compiling


The customer’s central position is one of the key corporate actions. It is a fundamental strategic axis the company works on in a logic of continuous improvement, both in terms of Customer Experience, to guarantee a positive experience to customers in the interaction with the company and in terms of Customer Journey, to lead customers along the path that goes from choosing the service that best meets their needs to its use and subsequent customization.

As evidence of this commitment, many projects and initiatives were initiated in 2017. In particular, Fastweb continued to enrich the liveFAST program, a platform developed to encourage the engagement and loyalty of residential customers, through awards, gifts and privileges that increase in value based on the time spent with Fastweb.

KEY PROJECTS FASTGate

In January 2017 Fastweb launched FASTGate, the latest generation modem designed and built around the customer’s experience.

The modem is unique in the market for performance power: it offers maximum domestic coverage and a connection of the highest quality, connecting all devices while maintaining browsing speed, and is compatible with all technologies, meaning that all customers can use it, regardless of the type of coverage available to them (fiber, ADSL, etc.).

FASTGate has been designed to create a quality experience for customers, from opening the package to installation and digital interaction with the modem. It combines innovative design with top quality performance, extreme simplicity of installation and use,

thanks to three touch keys that regulate all functions, with the aim of making FASTGate a home feature and benefitting from the wi-fi signal strength.

The packaging, made of completely reusable recycled material, contains neither glue nor paper manuals and simply and clearly indicates the installation instructions, which can be carried out by the customer in three simple steps.

FASTGate is equipped with the energy saving function and complies with the energy efficiency requirements dictated by the “Code of Conduct on Energy Consumption of Broadband Equipment (version 5)” published by the European Commission with the aim of limiting energy consumption among households and citizens, with particular reference to

consumption related to the use of electronic devices for connectivity.

Finally, through the MyFastweb App, users can check connection performance, turn wi-fi on and off remotely, create a wi-fi network for guests with a personalized password, configure parental control and, above all, decide which device needs to be assigned browsing priority.

The customer satisfaction in the use of FASTGate translates into an increase in the value of Net Promoter Score - the index that monitors the level of customer loyalty on a quarterly basis - compared to last year’s customers, with the same time spent as a Fastweb customer.

OBJECTIVE

Launch an innovative and unique modem in the market to guarantee the best connection experience for customers

1 Giga the connection speed supported by the modem

30% of customers that use the modem

KEY FIGURES(from 01/01/2017 to 31/12/2017)

3.3 BE CUSTOMER: CUSTOMER EXPERIENCE AT THE CORE

http://www.fastweb.it/adsl-fibra-ottica/dettagli/modem-fastweb-fastgate/


New online channels were developed during the year. In addition to the restyling of the company website, the company worked on the Intranet for MyFASTPage, customers, adding a digital information system to accompany users in the activation of mobile services in real time and show the progress of processes that concern them.

In 2017 the MyFastweb, app was also renewed to make it even clearer, richer and easier to use. Customers now have a new tool to monitor the activationstatusoftheirlineandcanconfirmthecorrectness of the data necessary for activation from the App. Even the management of WOW FI has become “smarter”: in all Android devices, the MyFastweb App is able to choose which network to use, discarding the low-performance ones, to give customers the best possible experience. As already mentioned, among the new features was the introduction in the management app to switch FASTGate on and off even outside the home and without the need to connect tothehomewi-fi.

From the point of view of the processes, a completely digital user experience was developed for the acquisition of the documents necessary for the recognition of customers who subscribe to the mobile offer.

2017 was also an important year for the work of focusing social channels, an increasingly important point of contact for users, which led to reaching over 496,000 followers at the end of the year (+27% compared to 2016).

In the context of social care, an important new feature has been introduced on the Facebook Messenger channel, with the aim of reducing customer response times as much as possible: the inclusion of chatBOT Marvin, an evolved automatic responder able to understand users’ needs and to direct them towards the optimal solution, referring to an operator in case the request is too complex to manage. This innovation has had a positive effect on customers’ experience, drastically reducing waiting and response times and improving the value of Net Promoter Score by users.

To measure the effects of the launch of the new corporate strategy and new offers on customer satisfaction, Fastweb also used the Net Promoter Score (NPS), in 2017 as the index to measure the degree of customer loyalty developed on the response that customers interviewed give to the question “How likely will you recommend company X to a co-worker or a friend?” on a scale of 1 to 10. In order to determine the company’s performance, customers are divided into three categories:

Promoter (vote 9-10) - they are loyal customers who will continue to purchase the services and will recommend them to other people;

Passive(score7-8)-aresatisfiedbutunenthusiastic customers, potentially influenced by competitors’ offers;

Detractor (vote0-6)-aredissatisfiedcustomerswho could harm the company through bad word of mouth.

The index is then calculated as the difference between the percentage of Promoters and the percentage of Detractors and is analyzed both with reference to the overall customer experience with Fastweb (Relational NPS),andwithreferencetoaspecificinteraction(transactional NPS). The frequency of surveys varies from weekly to half-yearly, based on the parameter analyzed and the customer segment considered.

In addition to internal surveys, benchmark analyzes are performed quarterly. The strategy of attention to customers, associated with the continuous investment to improve service quality and performance, have allowed Fastweb to establish itself as one of the fixed network operators most recommended by customers in Italy:in2017thesurveysconfirmanadvantageofmore than 10 percentage points compared to the main national telecommunications players.

Launched in June 2016 to reward customer loyalty, liveFAST was further developed and enriched throughout the year. In particular, the prizes, the winning mechanics and the methods of participation were renewed, increasing the advantages based on the years spent with the company starting from 4 groups of customers: customers for less than 1 year, customers for more than 1 year, customers for more than 4 years and customers for more than 10 years.

The dedicated website has been made more user friendly and a new, richer catalogue has been developed with advantages, discounts from partners, contests and offers that add up and grow in value over time.

During 2017, the program reached twice the number

of customers compared to the previous year. It does not provide the classic points collection proportional to the customer’s spending on services, but constantly rewards customers, always inserting new advantages, with no subscription costs and in a completely digital way.

Discounted Moving and Modems, an ad hoc offer for mobile and free UBB are some examples of advantages provided during the year by Fastweb offers and services. There are also contests to win tickets for Serie A football matches, trips and concerts, discounted cinema tickets, “Musement” activities with guided tours in Italy and worldwide. liveFAST also offers access to discounts on the purchase of magazines, newspapers and digital TV, as

well as experiential advantages such as free admissions to SPAs and wellness centers, hotel stays and much more.

Users’ appreciation of the platform has translated into values of Net Promoter Score, the index that monitors on a quarterly basis the degree of customer loyalty, higher than other customer segments. In addition to those received in 2016, Fastweb gained two important awards: the Promotion Award Special Innovation Award and the first prize of the 2017 edition for the “Best Promotion Project” in the “Interactive/Digital Area” category of the NC Awards, the event that for 11 years has rewarded the best communication projects.

KEY FIGURES(from 01/01/2017 to 31/12/2017)OBJECTIVE

Create continuous dialogue with the Customer Community, through a digital and interactiveloyaltyprogramthatoffersbenefits,experiential advantages and contest prizes, in a simple and free way. The experiences proposed in the program are also selected in order to give customers the possibility to explore the opportunities offered by the use of digital tools.

20% clients registered on the platform (x2 compared to 2016)

Over 600,000 Vouchers and advantages provided (x3 compared to 2016)

KEY PROJECTS liveFAST

https://livefast.it/


Following the amendments introduced to the Consumer Code by Legislative Decree 130/2015, the joint conciliations established pursuant to AGCOM Resolution73/11/CONSfindtheirpreciseandregulatedposition. In fact, they are assimilated and valued as true ADR procedures. ADR (Alternative Dispute Resolution) refers to an alternative resolution procedure that has the advantage of offering a quick, free, simple and out-of-court solution to disputes between consumers and businesses.

With respect to the previous Joint Conciliation procedure, the new decree introduces several additions for greater transparency, advantages for the consumer and measures that facilitate reaching a positive agreement:

a Single Joint Guarantee Authority, has been set up, which assesses the compliance of the joint negotiation procedures included in the list of autonomy requisites established by the Consumer Code, formulating guidelines for the companies concerned, where appropriate. Furthermore, the Body examines the reports of users and consumer Associations on how to manage negotiation procedures. The Body is composed of an equal number of representatives appointed by the sector companies and representatives of the consumer associations;

a single protocol for the conciliation procedure has beendefinedforalltelecommunicationcompanies,in order to make it easier for consumers to adhere to the procedure;

the days scheduled for the completion of the conciliation procedure have increased, going from 60 days plus 30 days to be agreed in particularly complex cases, to a time frame of 90 plus 90 days.

With respect to the new provisions, Fastweb has completely revised the reference implementing

Regulation sharing it with all the recognized Consumer Associations (members of the CNCU - National Council of Consumers and Users).

To join the ADR procedure, Fastweb customers may refertotheSignatoryAssociationsonlyafterfilingacomplaint to which no response has been received within45daysoriftheyarenotsatisfiedwiththeresponse received, requesting them to submit the application for conciliation. The application, accompanied by the required information and the purpose of the dispute, is included in dedicated portal (available at: http://www.fastweb.it/corporate/governance/conciliazioni-e-associazioni-consumatori/) to manage the claim directly online. The portal allows for full traceability of the negotiation, conclusion and relative reasons.

As of this year, customers can also send their requests in writing directly to the Conciliation Secretariat via Registered Mail R/R or to the address [email protected]. Also in this case, requests are conveyed on the dedicated portal through a ConciliatoridentifiedbytheConciliationSecretariat with shift criteria.

Individual applications are therefore evaluated by a Joint Conciliation Commission, composed of a Fastweb Conciliator and a Conciliator of the chosen Association. The negotiation allows a resolution to be reached in most cases and in the shortest possible time.

In 2017 1,336 applications were received from the Consumer Associations at the Conciliation Secretariat. Following the admissibility checks carried out, 1,011 conciliation claims were activated, which in 96% of cases (971 claims) ended with a positive report, i.e. with full customer satisfaction. 4% of applications ended without reaching an agreement.

For Fastweb the customer’s central position is a key principle that guides all the company’s strategic choices. Fastweb intends to strengthen the relationship of trust with its customers and in general with all those who may be interested in the impact of the choices promoted by the company.

Therefore, in 2017 the listening path launched in 2015, in collaboration with the Reputation Institute, continued through interviews, surveys and questionnaires, aimed at understanding the perception of the needs and expectations of Stakeholders towards Fastweb. The issues investigated concern the level of appreciation that stakeholders express towards Fastweb, both in terms of reputation, and considering rational elements such as the level of product quality, the ability to innovate, the quality of the workplace, ethics and the long-term strategic vision.

The multi-stakeholder approach adopted involves the engagement of external stakeholders (customers, talents, public opinion and some opinion leaders) and internal stakeholders (employees); in 2017 the stakeholder group expanded further with the involvement of staff in direct contact with customers. In particular, the project involved interviews aimed at store staff (both flagship and multi-brand) and customer care operators, constituting one of the main points of connection between the company and its customers.

The ability to innovate and renew, the quality and reliability of the connectivity service provided, the proximity to customers and their needs, the positive influence the company has on society

and the transparency in the way the company operates and in the relationship between the company and its customers are the issues the interviewed stakeholders have most of their expectations on.

In2017Fastwebrespondedconsistentlytothefindings,having listened to the stakeholders. In particular, Fastweb’s entire commercial proposal has been renewed with #nientecomeprima to meet the need for transparency and centrality of customers (see paragraph 3.1 of this chapter). In the last few months of 2017 the Promise Speed Program was launched for ULL and FTTCab connectivity, which improves transparency towards customers with respect to the connection speed; in fact, the estimated speed is now formalized within the contractual documents. Upon activation, it is possible to check the speed measured in the 24 hours after activation and compare actual performances with those communicated during the sale phase.

Furthermore, Fastweb focused on improving non-commercial communication to the outside world, to share more and show the existing projects and initiatives to its Stakeholders. This is the case, for example, of the restyling of the “Work with us” section on the Corporate website, which has been completely redesigned to share the Fastweb work environment. Ample space was dedicated to the initiatives promoted by Fastweb, such as Fastweb Digital Academy and Fastweb4School, which certainly have a positive impact on the context in which they operate but which require greater disclosure to be known to the general public.

3.4 THE APPROACH TO LISTENING AND DIALOGUE 3.5 THE ALTERNATIVE RESOLUTION OF DISPUTES

http://www.fastweb.it/corporate/governance/conciliazioni-e-associazioni-consumatori/

http://www.fastweb.it/corporate/governance/conciliazioni-e-associazioni-consumatori/


14. Abbreviation for malicious software, means any computer program used to disrupt computer operations, steal sensitive information, access private computer systems, or display unwanted advertisements.

Espionage/Sabotage 8%

Cyber warfare 5%

Types and distribution of attacks 2016

Types of detected attacks (Fastweb’s data referred to 2016)

Cybercrime 72%

Hacktivism 15%

DDOS 2%

Defacement 1%

Malware 97%

New digital technologies are a central element for long-term global socio-economic development but, at the same time, give rise to important challenges for user safety. This is a constantly evolving area with regard to which the players of the digital ecosystem are called to reflect and act.

Every year Fastweb monitors the debate and regulatory developments in all areas subject to potentially negative impacts on customers and citizens. Corporate focus is on the 360-degree protection of user data, from cyber security attacks to privacy, an area at the center of the European and national agenda.

CYBER SECURITY

Cyber security and data protection are in the international spotlight. According to some estimates, about 80% of European companies are now hit by cyber attacks with an economic impact that could reach8trilliondollarsinthenextfiveyears12.

Globally, 2016 was the worst year ever, with a 117% increase in attacks related to Cyber Warfare activities (the “information war”) and a 9.8% increase in serious attacks with Cybercrime aims, the highest values

of the last 6 years13 in absolute terms.

A recent market analysis conducted by Fastweb in collaboration with International Data Corporation (IDC) shows that some of the main challenges that Italian companies face are related to the management of IT threats and the adoption and integration of new technologies. 50% of the companies interviewed, growing considerably compared to the past, underline how the security of data and corporate networks and the related regulatory compliance are among their priorities of action.

Inlightofthesetrends,EuropeandItalyhaveintensifiedtheir focus on cyber security. In 2017 the communication from the European Commission “Resilience, Deterrence and Defense: Building strong cybersecurity for the EU”,identified a series of proposals with the aim of increasing the resilience of information systems to cyber threats, while the National Plan for the cybernetic protection oftheItalianGovernmentidentifiedaroadmap for the adoption of priority measures to strengthen the national cyber architecture by public and private entities.

12. Cybertech Europe 2017, https://international.agi.it/news/leonardo_collaboration_industry-government_at_cybertech_europe_-2178382/news/2017-09-22/13. Clusit 2017 Report on ICT Security in Italy - 2017, Italian Association for Information Security (CLUSIT)

3.6 IMPACTS OF TECHNOLOGIES AND DATA PROTECTION

Source: Clusit - 2017 Report on ICT Security in Italy

The state of cyber security in Italy

According to the 2017 CLUSIT Report on ICT Security in Italy, the document that annually monitors the state of cyber security in our country, 2016 was the “annus horribilis” of cyber security.

The study recorded 1,050 incidents classified as serious,i.e.withasignificantimpactinterms of economic damage, reputation and the dissemination of sensitive information. The eleventh edition of the Report comes from the work of over a hundred professionals belonging to the Italian Association for Information Security (CLUSIT) and outlines the most updated and comprehensive picture of the global situation, highlighting the sectors most affected and the most frequent cyber attack methods.

Providing data on the attacks detected by its Security Operations Center (SOC), Fastweb contributed to the preparation of the document, which analyzed the Italian situation on the basis of over 16 million cybercrime events and

IT incidents that occurred in 2016. Saiddatashowstheincreasinglysignificantdissemination of various types of malware14 in our country, to which 97% of total attacks in 2016 are attributable.

In this context, however, there are some positive signs linked to the dissemination of some new effective technologies to mitigate the most advanced threats and to increase the awareness of companies on the importance of adopting a proactive approach to reduce risks on these issues.

In addition to these are the concrete actions that the Government and the European Union have implemented to encourage the adoption of cyber security policies, processes and infrastructures, such as the minimum ICT security measures issued by AgID for Public Sector infrastructures and the new General Regulation on Personal Data Protection(GDPR)definedatEuropeanlevellastyear.

https://international.agi.it/news/leonardo_collaboration_industry-government_at_cybertech_europe_-2178382/news/2017-09-22/

https://clusit.it/


In this context, Fastweb operates at multiple levels to guarantee full security to the company and its customers through a dedicated internal division that constantly monitors regulatory and technological developments and adapts internal management models to international best practices. The information and data security management systemhasbeencertifiedaccordingtotheISO27001international standard since 2007 and is constantly updated.

In2015FastwebcreatedthefirstItalianTierIV certifiedDataCenterwhich,integratedwiththeITattack prevention center, guarantees maximum security of Cloud services provided to client companies.

Fastweb’s commitment to cyber security also implies accompanying customers along a route of gradually strengthening their defense systems through cutting-edge solutions and offers that are tailored to the various needs of business customers (see paragraph 3.2 of this chapter).

PROTECTION OF PRIVACY

Privacy is a key aspect for customers in the digital age and is an element Fastweb has always paid the utmost attention to. Since 2016 the company has had the declaration of conformity to the ISO 27018 Standard concerning personal data protection in Public Cloud services, guaranteeing compliance with the privacy rules in Cloud Computing services and representing best practices in personal data protection by Public Cloud Providers.

During the year, activities continued of the work table launched in 2016 with the aim of updating company processes in line with the provisions of the new European Privacy Regulation (GDPR). The table focuses on three areas that represent the value chain of privacy: people, processes and technologies. The project involves all the company structures, focusing heavily on process governance and lines of action.

The European Privacy Regulation (GDPR) and the Minimum Security Measures

One of the tools adopted at European level to encourage the adoption of measures to protect personal data is EU Regulation no. 2016/679, definedasthe“EuropeanDataProtectionPackage”, which introduces some new features both for those companies that “own” the processing of personal data, that is to say all those companies that process personal data in the EU, and for individuals (so-called “parties concerned”).

For the former, the GDPR provides for the establishmentofanewfigure,theData Protection Officer ("DPO") responsible for independent data protection in all public companies and inallthosewhereprocessinginvolvesspecificrisks, including precisely the telecommunications sector. A further requirement for companies is the introduction of an obligation to keep a record of the processing activities carried out under their own responsibility, as well as the performance of an impact assessment on data protection in relation to automated processing suchasprofilingandlarge-scaleprocessing ofspecificcategoriesofsensitivedata.

With regard to individuals, the Regulation expressly recognizes the "right to be forgotten" and the right to data portability. The former right gives the party concerned the opportunity to decide that their personal data that is no longer necessary for the purposes for which it was collected be deleted and not subject to further processing. The right to data portability, however, allows the party concerned to receive the personal data held by a data controller

in a structured format, commonly used and readable by an automatic device, with the right to transmit such data without impediment to another data controller.

The new text establishes the principle of accountability, for which the controller must demonstrate the adoption of privacy policies and appropriate measures in accordance with the Regulation. In addition, the principle of "privacy by design", is introduced, which dictates the implementation of appropriate technical and organizational measures both when planning and processing, and that of "privacy by default" cwhich refers to the principle of necessity, establishing that the data be processed only for the intended purposes and for the period strictly necessary for them.

InApril2017,withthepublicationintheOfficialGazette, the “Minimum ICT security measures for public administrations” were issued for adjustment by the end of the year.

These measures have been developed with the aim of consolidating the state of national security and require the implementation of technological, organizational and procedural controls, providing for three levels of implementation. From a minimum level, which every Public Administration must necessarily be or become compliant with, regardless of its nature and size, up to levels that represent evolutionary situations capable of providing more complete degrees of protection.


In October 2017 the Board of Directors appointed the Data Protection Officer (DPO),anewfigureenvisaged by the European Privacy Regulation (GDPR General Data Protection Regulation).

The DPO has the responsibility of overseeing the personal data processing management, and therefore protection of data within the company so that it is processed in compliance with the GDPR provisions.

The DPO’s main tasks are:

Inform and raise awareness among the Data Controller and/or the Data Processor and employees who carry out the processing regarding GDPR obligations;

Supervise the observance and application of GDPR provisions;

Provide, if requested, an opinion on the impact assessment on data protection and monitor its performance;

Cooperate with the Privacy Guarantor and act as a point of contact for the Guarantor on every issue related to data processing;

Support the Data Controller or the Data Processor in any activity related to personal data processing, also with regard to the keeping of a record of processing activities.

The regulatory framework of reference regarding theprocessingofpersonaldataisdefinedby the Authority for the protection of personal data,

which ensures the correct processing of data and the respect of fundamental rights of persons in relation to the use of personal information15.

To ensure timely and transparent feedback to reports concerning personal data processing received from its stakeholders, Fastweb provides several channels including a dedicated e-mail ([email protected]) and a PEC (certifiede-mail)address([email protected]).

In201723notificationswerereceivedfrom the Guarantor, and for each one of them Fastweb provided a prompt reply. During the year 359 requests were received from private parties at the dedicated mailbox; of these, about 71% regarded cancellation, 27% concerned the inclusion of the customer’s number in telephone directories while the remaining 2% were attributable to other reasons.

In 2017 there were no cases of data loss or theft.

The company has continued the assessments with its suppliers already conducted in 2016, with the aim of verifying the correct management and protection of its customers’ data. In particular, in 2017, 50 assessments were carried out at Fastweb’s outbound sales structures.

15. For further information: http://www.garanteprivacy.it/

Description 2015 2016 2017

Requests received 76 30 23

http://www.garanteprivacy.it/

Work and inclusion 6968 Work and inclusion

Contributing to the objectives of the Sustainable Development Agenda 5 – Gender equality and 8 – Long-lasting, inclusive and sustainable economic growth, full and productive employment and decent work for all, Fastweb is committed to creating a workplace open to dialogue and discussion, in which gender differences are promoted and protected, and employees can express their abilities with achievements as professionals and as people.

Work and inclusion



Integrate the near miss reporting and monitoring system in company platforms by 2017

Improve the process ofverificationandcontrol of the work of suppliers involved in the realization and maintenance of the Fastweb infrastructure

Near miss reporting system was integrated in company platforms

A systematic check of the work of suppliers involved in the realization and maintenance of the infrastructure was implemented

All employee health records were digitized

A survey on the organizational well-being of employees was conducted

ForthenewMilanoffice,introduce an approach to the use of new technologies for the management of emergencies

Focus and increase attention to the use of new technologies asasimplificationtool

Install AEDs (automated external defibrillators)atthecompany’spremises and launch a training plan on the correct use of the device

Introduce health and safety training courses provided through e-learning methods


Launch new Welfare initiatives, focusing for 2017 in the areas of Sport, Culture and Health

Strengthen the initiatives aimed at greater flexibility in the conciliation of private life/work and provide concrete economicbenefits

The “Run Happy Crew” initiative was introduced

The “well-being Program” was relaunched with free medical visits at the company

The “Smart Working” program was extended to about 1,690 employees, reaching almost 68% of the company population

ThenewBariofficewasset up according to the principles of co-design with the direct involvement of employees

Launch new Welfare initiatives, focusing for 2018 in the area of culture

From the “Working Smart” perspective, develop and disseminate initiatives aimed at improving well-being in the workplace, a strategic factor to increase well-being in the way of working

HEALTH AND SAFETY IN THE WORKPLACE

WELFARE AND PROFESSIONAL WELL-BEING


Implement diversity inclusion policies in the human resource management strategy to enhance each person’s skills and talents

Disseminate the culture of inclusion as a value for people and for business, through training and awareness raising

The Performance Review process was renewed with the introduction of a new set of skills and simplifying the assessment model

Spread the new system of skills for performance assessment

Definea“totalrewarding”policy to be applied to the whole company reality


Promote Fastweb externally and internally, through storytelling and events consistent with the Employer Value Proposition

Continue to strengthen managerial skills by focusing training interventions on the areasofimprovementidentifiedfor each manager through the 360 feedback process

Promote the adoption of the Agile model within the company

Work on expanding the horizon of internal competences by acquiring new ones and re-professionalizing some internalfigures

Increasingly implement cultural change of the company towards the importance of self-learning and self-development

The new “Working at Fastweb” section was launched to explain how Fastweb works

A “web assessment” platform was created for candidates for evaluation and guidance purposes

12 training periods were activated as part of the Alternanza Scuola Lavoro (Work-School Alternating) project ThefirstmoduleoftheMarketing Academy was completed, with 7 classes and 270 partecipations

16,485 hours of training were provided

The “Empowering Dialogue” project was launched as an improvement action following the results of the “Feedback 360” activity

Individual or group coaching and mentoring initiatives were organized, aimed at the development of Fastweb people

The Tour of Duty program was started

Welcome Day, an initiative aimed at all new employees was introduced with the aim of presenting the company and its processes

Make Fastweb an attractive workplace, especially for new graduates

Launch the new induction program for new employees

Start new partnerships with universities and increase the presence of Fastweb in career days

Expand the number of internships and activities related to the School-Work Alternating

Continue with the provision of new Marketing Academy modules and all other courses in catalogue

Extend the experience of the “Empowering Dialogue” to the whole Board, and progressively to the other managerial lines that had not taken part in the project

Spread the new system of skills for the assessment of performance, strengthening through the dedicated training sessions, the familiarity of all employees towards the evaluation process

Disseminate the practice of continuous feedback

Continue to strengthen and develop managerial skills and all skills included in our model, also through training initiatives and events

DIVERSITY, EQUAL OPPORTUNITIES AND MERITOCRACY

ATTRACTING AND TRAINING TALENT



16. Calculated adding the hires and terminations of the year and comparing this value to the staff at 31 December, considering employees with permanent contract, fixed-term contract and apprenticeship contract.

In 2017, Fastweb counted a total of 2,605 employees (+1% compared to 2016) with permanent contract, fixed-termcontractandapprenticeshipcontract, 18 stageurs and 110 temporary workers.

During the year, there were some changes with regard to the number of employees, with 132 new hires at the company and 82 terminations. 45 of the 132 new hires became part of the workforce following the acquisition of a business unit of Tiscali

Business, occurred in December 2016. These changes in the workforce led to an increase from 6.0% to 8.3% in the turnover rate16.

Considering the type of contracts, in line with 2016, 99% of employees have a permanent contract, fixed-termcontractshavefurtherdecreased from 18 to 8, while the number of apprenticeship contracts decreased from 10 to 8.

Turnover and total turnover rate 2015 2016 2017

n % n % n %

Hires – total 57 2.3% 109 4.2% 132 5.1%

Terminations – total 59 2.3% 47 1.8% 83 3.2%

Turnover – total 116 4.6% 156 6.0% 215 8.3%

Turnover and turnover rate by gender 2015 2016 2017

n % n % n %

Hires – men 33 2.1% 81 5.0% 94 5.7%

Hires – women 24 2.6% 28 2.9% 38 4.0%

Terminations – men 42 2.7% 40 2.5% 65 4.0%

Terminations – women 17 1.8% 7 0.7% 18 1.9%

Turnover and turnover rate by age 2015 2016 2017

n % n % n %

Hires < 30 20 29.0% 29 50.9% 18 41.9%

Hires30≤x≤50 35 1.6% 77 3.6% 106 5.1%

Hires > 50 2 0.8% 3 0.8% 8 1.6%

Terminations < 30 1 1.4% 1 1.8% 4 9.3%

Terminations30≤x≤50 48 2.2% 41 1.9% 57 2.7%

Terminations > 50 10 3.9% 5 1.3% 22 4.5%

Business results are based on people. This is the reason why Fastweb wants to build a work environment that is capable of attracting and developing valuable professionals; a positive, innovative, inclusive environment, open to diversity and based on trust and respect, where every individual can develop their potential.

Working smart is one of the key formulas adopted duringtheyeartodefineanewapproachaimed atchangingworkingmethodsintermsofefficiency,effectiveness, responsibility, balance with private life and innovation, including technology. This makes Fastweb an employer able to meet the needs of employees at every stage of their life within the company.

Passion, skills and new ideas are the fundamental ingredients for any company wishing to be at the frontier of digital innovation. To promote them within its own organization, Fastweb is committed to constantly increasing its attractiveness, training and involvement of employees through numerous initiatives.

2,605

132

99%

employees

new hires

Permanent contracts

PEOPLE IN FASTWEB 2017

4.1 WORK AT FASTWEB: THE PROFILE AND DEVELOPMETS IN 2017

Turnover and company turnover rate


ATTRACTING TALENT

Transforming the company’ selection and recruitment process, beginning with the renewal of the “Work with us” section of the institutional website,wasoneofthemostsignificantinitiativestaken to attract new talent. The site has been redesigned to give an idea of what it means to work at Fastweb, sharing the values that inspire the work of the company every day and initiatives aimed at employees, such as smart working and the welfare program.

By accessing the Fastweb Digital Recruiting platform linked to the corporate website, it is possible to apply for open positions, upload CVs and try the new Web Assessment, a set of online tests designed and implemented entirely by Fastweb whose purpose is not just for knowledge and assessment but also for orientation. As a matter of fact, each candidate receives feedback in real time at the end of each test, regardless of the result of the selection process. Among the tests proposed is a test to assess digital skills and aptitudes.

From the 4,725 applications received between July 2017 and December 2017, 700 responded to the new graduate campaign and, out of these candidates, 70 young people were selected through Web Assessment and invited to attend the Fastweb Young Graduate Day,thefinalstep of the selection process held in Milan at the Fastweb Digital Academy in October, during which thefinalinterviewswereheldwiththerepresentativesof the various functions involved. The course ended with the addition of 15 new graduates, joining the other 10 graduates who have been interns since the beginning of the year.

In 2017, the Induction program was designed, with the aim of presenting the company and its culture to those who have recently been hired and to help them orient themselves in the new organizational context. The program is now available to all new employees intheirfirst6monthsinthecompany,regardless of their level, role or type of contract.

The activities of the program already activated

and introduced during 2017 are:

participation in the Welcome Day, a half-day event that includes a visit to the Tier IV Data Center;

creation of a dedicated “Welcome” section in Agorà, with a dual purpose: to provide a digital welcome kit (previously it was on paper) that resumes all the useful information in a single point of easy access and consultation, and to present new hires to colleagues who work in the company, in particular to those who have a limited perception of the volumes of new entries in Fastweb.

FastwebhasconfirmeditspartnershipwithCapgeminias part of “I migliori davvero” (The absolute best), project launched in 2014 to provide university students with concrete ideas on the skills needed to enter the labor market. The project, in tour in 6 different cities, involved the students of as many universities through a workshop called “Incautamente ottimista. Piacevolmente confuso” (Ridiculously optimistic. Pleasantly confused) and reflects the mood of young graduateslookingfortheirfirstjob. The format deals with the most important aspects of accessing the labor market with irony and concreteness and provides examples of the skills young people must focus on to increase their chances offindingajob.Duringtheworkshop,thetypicalquestions of selection interviews were asked, together with some suggestions to be more effective during interviews.

The company also participated in two Career Days in Rome and Bari, with students being able to get in touch with professionals working in the Fastweb Human Resources department. The company also continued the Alternanza Scuola Lavoro project started in 2016 with the initiative promoted by Assolombarda. As part of this project, which aims to bring high school students of the third and fourth year closer to the employment world, 12 training periods lasting three weeks have been activated at the Milan andRomeofficesandnumerousvisitshavebeenorganized with the purpose of allowing participants to understand the Fastweb’s business and start laying the foundations for a future career path.

Among employees with permanent contracts, 14% work part-time, slightly below the previous year (-1%). Of these, around 80% are women.

All Fastweb employees are covered by a collective agreement in accordance with the provisions of national employment legislation. In particular, employees and middle management are represented by the CCNL (national collective labor agreement) Telecommunications while for executives the company refers to the CCNL Industry Executives.

For those workers who are represented by the

Telecommunications CCNL, a second level bargaining agreement is envisaged, which may concern the regulation of shift work, the availability of paid leave and accessibility to other welfare measures and the improvement of people’s well-being. In this regard, in May 2017 the company signed the new agreement for the three-year period 2017-2019, in collaboration with the trade unions represented at the company. The agreement includes changes in welfare, working hours, availability and compensatory rest, mealandtravelvouchersanddefinestherules and the value of the performance bonus for the period under consideration.

Distribution of employees with a permanent contract per gender

2015 2015

2015

2016 2016

2016

2017 2017

2017

0

500

1,000

1,500

2,000

2,500

3,000

912 936 953

2,469

25

10

2,134 2,1962,241

376 3778

2,545 2,589

1,557 1,609 1,636

0

0

10

10

20

20

30

30

Employees with full-time and part-time contract per gender

0

500

1,000

1,500

2,000

2,500

2015 2016 2017

660

270

1,474

106

665

288

1,531

89

671

290

1,570

74

fulltime

fulltime

fulltime

parttime

parttime

parttime

Distribution of employees with a fixed-term contract per gender

Distribution of employees with an apprenticeship contract per gender

6

10 12

56

3

1618

8

8

17

5

5

5

3 364

Male Female

4.2 ATTRACTING AND DEVELOPING TALENT

http://www.fastweb.it/corporate/lavorare-in-fastweb/fastweb-siamo-noi/?lng=EN

http://www.fastweb.it/corporate/lavorare-in-fastweb/lavora-con-noi/?lng=EN

http://www.imiglioridavvero.it


17. The difference between 2016 and 2017, 9,767 hours versus 753 hours, is related to a change in the type of data reported in the 2 years. As it is not possible to monitor actual fruition, the 2016 figure was calculated by multiplying the theoretical number of hours of each course by the number of days in which a given course was available to the employees and summing the products obtained. The 2017 data, instead, available thanks to the changed e-learning platform, represents the training hours actually provided in e-learning mode. The number of courses available and the training hours available during the two years remained almost identical.

Tour of Duty

In line with the Model 70-20-10, which provides for 90% of training deriving from on-the-job learning and from contact with colleagues, in 2017 the pilot phase of “Tour of Duty” was launched within the Technology area.

The initiative, taken in order to allow participating employees to experiment in areas other than their own and learn about Fastweb more in depth, consists of an understanding reached between the employee and the company. With a minimum period of 3 months up to a maximum of 1 year, employees have the opportunity to work in an area different from their own, thus triggering and developing new skills and competences.

Within the agreement, employees are assigned a business objective and a goal to develop new skills that are useful for the unit of origin that undertakes to transfer the resource for the entire period. The project, which proved to be an effective tool, has gained broad consensus and will therefore be used in the future as one of the development levers for people’s growth.

PERSONNEL TRAINING AND DEVELOPMENT

With the aim of maintaining a set of skills that is always in line with technological market trends, in recent years Fastweb has set up training activities for its staff based on Model 70-20-10, regarding the involvement and responsibility of people. According to the model only 10% of training is through a formal learning process, while the remaining part derives from learning on the job (Job Experience Effect, 70%) and contact with colleagues (Social Effect, 20%).

In addition to classroom activities, since 2016 Fastweb has made e-learning courses available on the development of technical and interpersonal skills. Furthermore, the new management platform adoptedin2017allowseachemployeetodefine their training path in a structured and dynamic way over time.

One of the main classroom courses provided during the year is the Marketing Academy, a training activity launched in 2016 for all personnel of the Marketing team. The initiative involved a total of 270 attendees and was structured in 7 meetings (4 in 2016 and 3 in 2017) for a total of 40 hours of training for each participant. The main purpose of the course was to put together common languages and main referencetrendsintheMarketingfield.

ILEX (Internal Learning Experience) courses continued, with the involvement of appropriately trained internal lecturers for the provision of courses to colleagues interestedinacquiringspecificverticalskills.

In addition to courses to develop technical and soft skills, Fastwebprovidestrainingonspecifictopics such as the 231 Organizational Model, health and safety in the workplace and management systems.

The planning of the courses offered is periodic based on legislative updates and/or according to the evolutions in the operational and organizational scenario.

16,485 hours of training were provided during 2017, of which 15,732 hours in the classroom and 753 hours in e-learning17, for a total of 6.3 hours of training per employee.

The reduction in training hours in the classroom compared to the previous year is related to the conclusion of a very important managerial training project started and completed in 2016 and to the fact that the Thinking Hub, a training event involving almost the entire company, was not held in 2017.

The details of the training hours provided in the classroom in the two-year period 2016-2017 are shown below,brokendownbyclassificationandbygender.

2016 2017

50,000

40,000

30,000

20,000

10,000

0

42,655

15,732

Hours of training provided in the classroom by classification Total hours Hours per capita

2016 2017 2016 2017

Executives 3,855 70 37.07 0.71

Managersandofficestaff 38,800 15,662 15.71 6.25

Hours of training provided in the classroom by gender Total hours Hours per capita

2016 2017 2016 2017

Men 31,455 12,008 19.42 7.3

Women 11,200 3,724 11.75 3.88

In-class learning hours, 2016 - 2017


The annual survey on employee satisfaction

The 2017 survey explored two areas: the emotional bond with the company, that is the trust, admiration, esteem and in general the feelings that every employee has towards Fastweb, and the experience of workers, described by 7 key attributes (Performance, Products and Services, Innovation, Workplace, Governance, Citizenship, Leadership).

The questionnaire was completed by about 93% ofthecompanypopulation,confirmingonceagainthe great desire for participation and the strong sense of belonging that is widespread throughout

the company. The results showed the existence of a strong link with Fastweb, with a score of 79.8/100 and good levels of strategic alignment. Over 60% of respondents expressed enthusiasm towards the directions undertaken by the company.

Thesurveyalsoallowedtheidentificationofareasfor improvement regarding the communication of company activities and welfare initiatives, leadership, openness and transparency. These issues were the subject of some workshops involvingabout300employees,todefine aspecificactionplan.

4.3 LISTENING AND INVOLVEMENTIn recent years Fastweb has continued to intensify its listening of and dialogue with employees by multiplying the opportunities for exchange, with the aim of not only improving the internal climate and communication with and between people, butalsoinvolvingworkersinthedefinition of business plans and projects in terms of innovation

and co-planning.

As for listening, the company conducts an internal climate survey on an annual basis, which is extended to all employees, taking a structured view of the opinions and contributions of all people and measuring the employees’ level of satisfaction and involvement.

With the aim of increasing corporate culture awareness among employees, the Vision Meeting, continued. This is a corporate event chaired by the CEO during which the results obtained throughout the year and company strategies are illustrated to all employees. The event is also an opportunity to spend a day with colleagues in a friendly and informal atmosphere; the 2017 edition, for example, saw the performance of the “Broad Band”, a musical group formed by Fastweb employees selected through real auditions.

During the year, the social ambassador, group, the internal community that aims to give a boost to Fastweb’s social initiatives also through “#befw” (Be Fastweb), continued with its work. In 2017 some courses were organized with external interventions by sector experts to increase the involvement and digital skills of community members. The objective was not only that of stimulating the sense of belonging and communicative effectiveness, but also of providing concrete tools to apply in everyday

life in areas such as personal branding and writing on social media. Social ambassadors have played a decisive role in spreading corporate messages, particularly at events such as the Vision Meeting and the launch of the #nientecomeprima campaign. Contributions from the community have allowed Fastweb to access the Trending Topics section of Twitter, the area dedicated to the most discussed topics of the moment on the Internet. It is estimated that all the contents associated with the hashtag “#befw” have reached a total of more than 8 million potential views.

In order to continuously improve people’s experience, several listening and collaboration projects have been launched, aimed at understanding the needs of employees and including them in the design of work processes and tools. Among the most significantexperiences, Humax is a study to map and analyze employee experiences in every phase of their relationship with the company, with the aim of identifying the areas of improvement.

Employees who have completed the performance review process in 2017, per contract level

Empowering Dialogue

In order to enhance and strengthen the skills and provide the necessary tools to return valuable feedback, during the year a development interventionwasorganizedaimedatallthefirstlines of the Division Directors. The project included 2 days of workshops focused on empowerment oriented feedback. Inthefirstpartoftheworkshop,managerswere able to observe a real feedback interview conducted with the empowerment technique and

2016

2017

1,948 2,420

2,3941,928

372100

97 369

2,5002,0001,5000 1,000500

The performance review system aims to enhance people’s skills and build targeted development plans for each of them. Every year the review involves all employees with permanent contracts (apprenticeship contracts included) at the company for at least 6 months. In 2017 the new performance management model involved 2,394 employees, of whom 81%officestaff,15%executivesand4%managers.

In 2017 the system was completely revised and updated intermsofsimplification.Thenewmodelisbasedonprofessional skills, on the soft skills that characterize life at the company (Be Customer, Be Simple, Be Decision Maker, Be Positive, Be Fastweb) and on managerial skills (for employees with management responsibilities), providing the opportunity to collect feedback not only from managers and previous managers (in case of change of role for less than 6 months) but also from the colleagues the employee has worked closely with.

As this is a recently introduced model, the provision of specifictrainingactivitiesaimedatincreasingfamiliaritywith the new skills provided is planned for 2018.

Alsoin2017coachingandmentoringwereconfirmedamong the development levers that can be selected after the Performance Review process. The individual coaching program, which consists of a 6-month journey s with an internal or external coach, to enhance managerial skills starting from a development goal, involved 10 employees during 2017. In order to extend the possibility of accessing this powerful tool to more people, in 2017, the coaching lab, was also implemented, i.e. group coaching that follows a structured path based on sharing and on exchange between coachees. With this method, 16 people were involved in 2017.

Mentoring, on the other hand, is a path lasting 8 to 9 months, aimed at both managers and executives, according to the logic of periodic comparison between mentor (internal) and mentee, which involved 21 resources. Coaching and mentoring are very effective tools thatwillbereconfirmedasdevelopmentlevers for the future as well.

THE PERFORMANCE REVIEW SYSTEM

Executives Managers Officestaff

learn the bases of this methodology from the theoretical point of view; in the second part, through the participation of external managers, they were able to put into practice the feedback techniques learned during the course. The activity also continued outside the classroom, through coaching during the actual return of feedback to its employees. The future goal is to extend the experience to all the Top Management and gradually spread it to other managerial lines.


KEY PROJECTS HUMAX: HUMAN EXPERIENCE

In 2017 Fastweb launched the Humax project, to understand and map the needs of its employees in their relationship with the company and create a workplace that allows them to operate to their full potential. The analysis was carried out using the “personas”, a tool borrowed from marketing to identify and understand the different types of customers in their personal characteristics.

It involves building fictional characters outlined in their behavioral peculiarities, in order to understand their different needs and how the company, through its own processes,

can satisfy them. The initiative led to the identification of different types of “personas”, which means typical employees to draw a complete profile from. Through a qualitative analysis that involved some company figures, the human experience of each “personas” within the company was simulated, identifying and mapping the company’s needs and “touch points”.

The analysis envisaged 5 months of research and a series of activities, including 2 discovery workshops (that took place at the end of 2016) 10 narrative interviews,

12 diaries and a workshop organized according to the “Lego Serious Play” methodology of involvement. The latter is a methodology of innovative involvement to facilitate the processes of communication, generation of creative thinking and strategy through team building activities based on the use of LEGO bricks to create metaphors of their own organizational identity and experiences. The results of the analysis will serve as a starting point to redesign some business processes in 2018.

KEY FIGURES

59 people involved 3 people and 3 scenarios the result of the project

12 insights to improve internal processes

OBJECTIVE

Understand and map, through an analysis of employee experience, the needs of Fastweb people and identify the business processes to work on in order to improve the collaborators’ experience.

In December 2017 the new Agorà, was launched as the company Intranet where news and initiatives concerning Fastweb are published to allow direct interaction between the company and its collaborators. The new site is the result

of co-planning among employees in a voluntary workshop and consists of a homepage withampleroomforpersonalconfiguration,allowingusers to customize the interface with the features they use the most.

24types of events

4,626people partecipated

20campaigns

8,328enrollment initiatives

ONLINE OFFLINE

Social events

and formats

ChannelsIntranet; live meetings; surveys; newsletters;

digital totems; flyers.

1,054 contents5,355,585 views

222 Authors3,790 Comments

60 Video2 Blogs

8,041 Likes7,994 “It’s useful”

3 Surveys

Agorà

Internal Communication in 2017


Fastweb’s Welfare system, Fast for me, is based on a model designed to support every employee.Fastweb takes care of its population through work-life balance services, reconciliation between work and private life, extensive insurance and health coverage, initiatives for education, sport, culture and leisure and multiple agreements, aimed at increasing purchasing power.

All the welfare initiatives can be consulted by Fastweb employees on the Fast for me online platform, web based and accessible from any device.

During the year many initiatives were launched that focus on sport: for employees of the Milan, Rome andBarioffices,therewasaninitiativetoencourageemployees’ interest in running.

The project, called Run Happy Crew, aims to create a transversal movement within the organization and to generate well-being, energy, motivation and emotion in people. The initiative involved about 250 runners and was developed through weekly training sessions carried out after working hours and guided by professional trainers, made available free of charge by Fastweb for its runners.

Thefinalphaseoftheprojectwasthefreeparticipationin sports events sponsored by Fastweb, such as the San Nicola Half Marathon in Bari, the Dj Ten in several Italian cities and the Milan Half Marathon.

Other sports and cultural initiatives have been put in place, offering the opportunity to participate for free in sports events, theatres and concerts.Regarding assistance, health and welfare, Fastweb has always shown attention to all employees, offering a wide range of insurance policies such as coverage of extra-professional risk.

The introduction of a life and permanent disability from illness policy was very important, granted for free to employees and mid-level managers.

Compared to 2016, the deductibles were halved of the “Unisalute” health insurance policy, which employees can access directly (no cash disbursements - without prejudice to the exemptions provided for in the plan) or indirectly (pay and be reimbursed - without prejudice to the deductibles provided for in the plan), with the possibility of extending the policy to family members.

RegardingHealth,afterthegreatsuccessofthefirst

edition, the well-being Program was re-proposed withfreemedicalvisitsofferedattheFastweboffice. At the end of the visits, which involved more than 1,300 colleagues, a clinical folder was also issued with the result of the medical examination andacertificateofnon-competitivesportsfitness.

Other projects have been consolidated such as MaamU, maternity as a master, which was launched as a pilot project in 2016 and has been extended to all future mothers and mothers of children up to 3 years of age. It is a digital program for the mothers of Fastweb, which accompanies them in the 3 key phases: before maternity leave, 2 months after delivery, before returning to work.Another welfare aspect that deserves attention isthatofaffiliations:throughastructuredsystem,Fastweb offers discounts to its employees, thus increasing their purchasing power. Some examples include the subscriptions to the TPL (local public transport) offered at discounted prices with the further facilitation of payroll installments, or discounts on car sharing services in large urban centers.

Fastweb employees can also purchase discounted school books with installment payments deducted from their payslip and access support services in the search for caregivers and baby sitters thanks to a network of selected and guaranteed providers.

With reference to the TFR (employee severance indemnity) reform and in agreement with the National Collective Bargaining Agreement, employees pay monthly contributions to the State Treasury managed by the INPS, or they can adhere, in whole or in part, to the category fund (Telemaco). As required by the relevant legislation, if the employee (officestafformanager)adherestotheTelemacocategory fund and pays, in addition to the TFR, an additional contribution (minimum of 1%), thecompanywillinturnpayafixedcontribution of 1.20% on the remuneration used to determine the TFR. For executives, however, the current choice is between 2 funds (Insieme or Previndai, until 2007 Previras was the fund proposed to Executives) and the minimum contribution is 4% to which thecompanyaddsafixedcontributionof4% on the remuneration used to determine the TFR. The enrollment to these category funds is possible for employees with a permanent contract or with an apprenticeship contract. In 2017, 38.3% of employees and managers (959 people) were registered in Telemaco and 82.8% of managers (82 persons) were enrolled in dedicated supplementary funds.

KEY PROJECTS SMART WORKING

Smart Working is an innovative and extremely flexible work model, which allows the employee to decide, in accordance with the guidelines set forth by the company, which work space they want to work from.

Launched in 2015 with a pilot program, starting from 2016, the project has been extended to the entire company and today is fully integrated in business processes.

This way of working allows employees to carry out their activities in any suitable place, having the technological tools necessary available to guarantee the full performance of work, contributing to the goal of balancing private life-work at the base of corporate welfare initiatives.

Everybody who uses the Smart Working must complete a mandatory Safety and Security

course with which advice is given on how to protect physical well-being by adopting the best habits in terms, for example, of posture, monitor placement and breaks. Whereas a part of the course is dedicated to the precautions for the protection of data and information, mandatory for all employees, in order to guarantee the same levels of security within the company.

KEY FIGURES

Number of employees authorized: 1,760 % of employees involved: 68% Days/month available: 4 Days/month used on average: 2,9 Adhesion: 82%

OBJECTIVE

To adopt a new managerial philosophy founded on giving people back flexibility and autonomy in their choice of spaces in which to work and the tools used vis-à-vis taking more personal responsibility for results.

Creating a work environment that is increasingly closer to the needs of its employees is a priority for Fastweb. The reconciliation between private and professional life is one of the key elements not only of people’s

satisfactionbutalsooftheirefficiencyasworkers. In this context is the Smart Working project, launched in 2015 and fully operational in 2016, now fully integrated in the business reality.

4.4 WELFARE AND PROFESSIONAL WELL-BEING 4.5 FROM “SMART WORKING” TO “WORKING SMART”

http://www.fastweb.it/corporate/lavorare-in-fastweb/smartworking/?lng=EN


In the perspective of an ever more enriching and less exhausting daily life, last year, Fastweb initiated a transformation, with the aim of redesigning and restructuring, starting from the same work spaces, the ways of conducting professional experience, moving from “Smart Working” to “Working Smart”, understood as a new approach centered

on well-being, responsibility and professional effectiveness. This strategy, which will culminate withtheopeningofanewofficeinMilanentirely co-designed with the employees, includes the project ofthenewBariofficebuiltin2017,withtheinvolvementof employees to design together a workplace to meet the needs of the future.

The new Bari office

In 2017, approximately 450 employees who worked in two locations in the city of Bari were transferred to a new location. The design of the new spaces was set up, in continuity with the path already started, with a view to creating more comfortable but also more functional environments, able to respond better to the new digital needs of the company.

Theidentificationofthesolutionsintroduced in the new premises was also thanks to the participatory planning (co-design) that involved the employees of the headquarters who were askedtoimaginethenewofficesandtopresenttheir suggestions and contributions.

The interior spaces were therefore designed completely overcoming the traditional concept of the working environment. Alongside “open” spaces created to facilitate collaboration and the exchange of ideas among colleagues, the headquarters also has quiet areas to concentrate. On each floor there are Focus Rooms for individual and team work and so-called Quiet Rooms, panoramic rooms with chaise longues to extend legs and for individual relaxation.

The new headquarters of Fastweb also have work

stations designed to stimulate not only utmost collaboration but also creativity. In fact, new types of workstations have been introduced, such as desks with an exercise bike and height-adjustable workstations to make the working day more enjoyable. On each floor there are also several “break” rooms with kitchenettes, next to actual play areas available to employees in moments of relaxation, as well as showers and changing rooms.

Numerousenergyefficiencyinterventions havealsobeencarriedout:firstofall,thebuildingisinenergyclassA,confirmingtheparticularattention of the project to the environmental impact. The characteristics of the external structureandtheadoptionofhighlyefficienttechnological systems have also allowed a drastic reduction in energy consumption per unit of area. Toincreaseenergyefficiency,Fastwebhasalsobuilt its own photovoltaic system that covers about 10%oftheenergyconsumedbyitsoffices.

Particular attention was paid to the acoustic design that guided the choice of materials with theaimofmaximizingthesoundproofingoftherooms by limiting the reverberation of noises in the areas intended for open space, meeting rooms, as well as the relaxation areas.

In accordance with the Code of Ethics, Fastweb is committed to enhancing and protecting diversity, rejecting any form of discrimination based on political or union opinions, ethnic background, religion, gender, sexual preferences, marital status, physical or mental disability, nationality, language or social and economic condition. Fastweb does not tolerate intimidating and bullying attitudes and sanctions any attempt to condition the conduct and work activities of individuals or groups of people. In line with this approach, also in 2017, the company did not receive any report of incidents related to discriminatory practices.

In 2017, 63% of the workforce is male. The male prevalence is linked to the peculiarities of the business, strongly characterized by technological elements, which is also reflected in the composition ofemployeesbyqualification:92%ofexecutives, 75%ofmanagersand60%ofofficestaffaremen. The Board of Directors of Fastweb is made up entirely of men; of these, 5 are over the age of 50 and 1 is between 30 and 50 years-old. All members of the Management Board are men; of these, 6 are between 30 and 50 years old and 4 are over the age of 50.

About 80% of employees are between 30 and 50yearsold.Thisagegroupincludes86%ofofficestaff, 54% of managers and 41% of executives.

Equal conditions, non-discrimination, meritocracy and transparency are the principles that guide the management and remuneration system of employees throughout the country. The Fastweb rewarding model, which regulates the assignment of awards in terms of remuneration and career advancement, is guided by individual performance, merit and professional skills.

In 2017, the average annual gross salary of women and men was about 90% for executives, 95% formid-levelmanagersand84%forofficestaff, a slight increase compared to 2016 for executives and managers. Analyzing instead the ratio between total remuneration of women and that of men, thus considering the basic salary plus increases related toseniority,benefits,overtimepaid,compensation for holidays not taken and all other forms of indemnity, the percentage is equal to 86% for executives, 92% formanagersand81%forofficestaff18.

Executives Managers Office staff

92%

8%

25%

75%

40%

60%

Male Female

Percentage of employees per contract level and per gender 2017

< 30 years 30-50 years > 50 years

41%

59%

46%

12%

54%

86%

2%

Percentage of employees per contract level and per age group 2017

4.6 DIVERSITY AND EQUAL OPPORTUNITY

18. To improve the quality and reliability of data comparison, Top Managers (= CEO and 6 members of the Management Board) were not included in the calculation of the ratio between male executives and female executives remuneration.

Executives Managers Office staff


The annual remuneration for new graduates hired in 2017, at the same entry level, is instead identical for both genders. The ratio between entry level salary and minimum salary is approximately 108%.

As foreseen by the CCNL, all Fastweb employees can takeparentalleave.In2017,298employeesbenefitedfrom parental leave (of which 215 women and 83 men) with a 100% return rate (in 2017, 298 people returned) and a retention rate, i.e. workers who are still in force 12 months after parental leave, equal to 99%.

Fastweb has become part of Valore D,

one of the best-known associations of companies in Italy for its commitment to promoting diversity, talent and female leadership. Founded in 2009, the association now has more than150membersandhasidentifiedfourareasof action on which to focus its activities: corporate welfare, inclusion policies, leadership and governance models and social innovation and sustainability. TheactivitiesofValoreDfocusonfiveareasofwork(Mentorship, Skill Building, Work-Life Balance, Role Model and Social Innovation) and are developed by working groups composed of people from the associated companies expert on the issue in which employees participate.

Fastweb is constantly committed to minimizing risk and developing activities aimed at improving the safety and health of its employees and external suppliers operatinginoffices,equipmentrooms,storesandconstruction sites.

The company’s health and safety are managed by a dedicated structure, overseen by the RSPP (Head of the Prevention and Protection Service), whichisresponsibleformonitoringanddefiningtheguidelines on health and safety issues in employment. Its range of action covers the whole company and all its facilities where staff is located.

Since 2010, Fastweb has adopted an Occupational HealthandSafetyManagementSystemcertifiedaccording to the OHSAS 18001 standard. All company activities are conducted in the full respect of the regulations in force and of company directives with regards to health and safety, through preventative measures and risk protection. Internally, the Safety organizational structure of Fastweb has the task of ensuring regulations are respected, by overseeing themonitoringandthedefiningoftheguidelines onhealthandsafetyissuesinthefieldofemployment,valid for the entire company and for all facilities where Fastweb staff is located.

As regards the health of workers, in 2017 a survey was carried out on the organizational well-being of employees aimed at mapping the risk

of work-related stress, which showed improvements inthecriticalareasidentifiedbytheanalysiscarriedoutin previous years.

During the year, compulsory training activities on health and safety continued for a total of 3,486 hours of training (1.3 hours per employee). For some employees considered “at risk”, stress management courses have been planned, which will continue during 2018.

With a view to simplifying and digitizing processes, all the health records of employees have been transferred from paper format to digital format. Finally, an instrumental analysis of the levels oftheelectromagneticfield,fromwhichnohealth risks have emerged, was carried out for the Via Caracciolo site in Milan.

The entire corporate population is represented in the health and safety committees by RLS (Workers’ Safety Representatives), 16 employees distributedacrossallheadquartersandoffices.The latter, together with the ASPP (Prevention and Protection Service Staff), carry out health and safety activitiesattheheadquarters,officesandsingle-brandstores distributed in the territorial area of competence.

In 2017 the rate of absenteeism recorded was 2.2% (1.6% for men, 3.3% for women), a slight decrease compared to the previous year (2.3%)19.

4.7 COMMITMENT FOR WORKPLACE SAFETY

19. Parameters considered to calculate the absentee rate have been reviewed in 2017: to make the data comparison possible, the indicator has been recalculated for 2015 and 2016.

http://valored.it/en


Employee injury indexes 2015 2016 2017

Total number of injuries at work

Men 16 10 14Women 18 21 20

Total 34 31 34Of which fatal 0 0 1

Of which commuting or for transfers from/to customers Total 30 26 30

Injury rate Excluding commuting and travelling to/from clients

0.17 0.20 0.16

Men 1.02 0.63 0.85Women 2.15 2.43 2.28

Total 1.42 1.26 1.35

Severity Index Excluding commuting and travelling to/from clients

5.33 5.61 3.22

Men 21.41 23.91 31.41

Women 36.35 75.14 65.74

Total 26.68 42.04 43.49

Absentee rate: hours of absence/workable hours expected * 100

4.0%

20162015 2017

3.3%3.6%

3.0%

2.2%2.5% 2.3%

1.6%

1.9% 1.9%

3.0%

2.0%

1.0%

Male Female Total

During the year, Fastweb recorded 34 job accidents, of which 1 still open at the end of 2017. During the year, a fatal accident occurred during thereturnjourneyfromaclient’soffice.

82% of injuries (28) occurred while commuting, i.e. accidents, for example, on the way to

or from the workplace. Injuries at Fastweb sites are attributable to inattention or small accidents not attributable to company defects in the protection of workers’ safety.

At Fastweb, no workers are involved in activities withhighincidenceorhighriskofspecificdiseases.

Responsibility and environmental sustainability 9190 Responsibility and environmental sustainability

Responsibility and environmental sustainability

Through the research and implementation of energy saving initiatives, the use of energy from renewable sources and the monitoring of climate change emissions, Fastweb is committed to safeguarding the environment and mitigating its impact on climate change, thus contributing to the objectives 7 – Clean and accessible energy and 13 – Combating climate change.


ENERGY EFFICIENCY AND CLIMATE CHANGE


Improvetheenergyefficiencyof Data Centers, through technological renewal measures for estimated savings of over 2.5 million kWh/year between 2017 and 2019

Efficiencymeasureswereinitiated at one of the company data centers, through the complete replacement of the air conditioning system used for cooling the data rooms and retrofitoperationsonexistingplants

Extension to the second company data center of the intervention on the air conditioning system

Extend the use of free cooling in about 10 additional equipment rooms with estimated energy savings of around 800,000 kWh/year by 2019

Thefirstinterventionshavebeenidentifiedfor the introduction of free cooling in three equipment rooms

Completion in 2018 of the 3 interventions initiated and implementation of further interventions in 5 equipment rooms in 2019

Estimated energy saving of around 800,000 kWh/year by 2019

Introduce a system for monitoring energy consumption and environmental conditions in equipment rooms

A sub-monitoring system was activated at the main equipment room and started theinstallationatthefirstData Center subject of the intervention

Introduction of the energy consumption monitoring system of the subsystems at the second main Data Center and at the main equipment rooms

Implementation of a multi-yearenergyefficiencyplan of around 10 equipment rooms with an estimated energy saving of around 1 million kWh/year by 2020

Continue the path of internal training and awareness in terms of environmental management

Training courses were provided for personnel directly involved in the application of environmental procedures

The sharing of Environmental Management System elements was continued with the company Environmental Delegates

Completion of training and sharing activities foreseen by the plan

Complete the integration of the carbon footprint calculation model with the “Enabling effects” of digitalization

The integration of the carbon footprint calculation model was completed with the “Enabling effects” of digitalization

Detailed analysis of the environmental aspects related to the services provided to customers

HELP AND SUPPORT TO LOCAL COMMUNITIES


Realization of initiatives intheterritoryforthebenefit of local communities

Support for the population hit by the earthquake in Central Italy

Relaunch of the campaign in favor of the LILT 24h pediatric availability project

Donation of furniture to non-profitorganizations

Classroom donation and provision of information literacy courses for asylum seekers in the City of Milan

Participation in the “Una vita da Social” campaign

Continue the commitment for the realization of initiatives intheterritoryforthebenefit of local communities



Fastweb promotes the environmental sustainability of its activities through programs aimed at reducing environmental impacts essentially in two areas: energy consumption related to the operation of the network infrastructure and data centers and climate-altering emissions generated by all the activities carried out by the company.

Ataggregatelevel,thegrowthofdatatraffic and the networks necessary to support it poses numerous challenges for telecommunications on the management of these issues, now at the center of the Italian and international agenda.

Through an Environmental Management System certifiedaccordingtotheISO14001internationalstandard, Fastweb guarantees the management ofallthesignificantimpactsgeneratedbyitsactivities,in a logic of continuous improvement. Periodic internal audits and meetings with the managers of the operating structures that manage the environmental aspects, ensure the correct application of the procedures of the System.

In 2017, 29 internal audits were carried out on the correct application of the Environmental Management System within the company. These checks concerned both controls on the application of processes, and controls atheadquarters,offices,equipmentroomsandstores.Allthefindingsandsuggestionsforimprovementwere addressed with the involvement of the operating structures concerned.

European and national policies on energy and the fight against climate change: 2017 additions

The Five-Year Work Plan (2017-2022) for the Efficient and Sustainable Use of Resources of G7 is focused on the development of common actionsintermsofresourceefficiency and circular economy, adopted on the promotion of the Italian Presidency.

The Strategic Energy Technology (SET) plan is the EU program, launched in 2007 but updated in 2017 and focused on research and innovation inthefieldofenergyandclimate,whichaimstoacceleratetheadoptionoflow-carbonefficientand innovative technologies, focusing, in particular, on a general reduction of development costs by sharing research and best practices and facilitatingaccesstofinance.

The National Climate Change Adaptation Plan is the tool developed to contribute to the implementation of the National Strategy of Adaptation to Climate Change, providing support

to national, regional and local institutions for theidentification,choiceandplanningofthemost effective actions in the different climatic areas in relation to the critical factors that most characterize it.

The 2017 National Energy Strategy (SEN) is the set of actions to be achieved in 2030 aimed at reducing the price gap and the cost of energy with respect to Europe, achieving and exceeding theenvironmentalobjectivesdefinedatEuropeanlevel, improvement of security of supply and flexibility of energy systems and infrastructures.

The National Strategy for Sustainable Developmentprovidesasetofspecificstrategicobjectives for Italy aimed at creating a new economic model with low CO2, emissions, resilient to climate change and other global changes due to local crises.

Fastweb’s energy consumption amounted to 521,494 GJ20 in 2017. In particular, this value affects the consumption of electricity (indirect energy consumption) and, with a residual weight,

the consumption of fuel and natural gas (direct energy consumption). Compared to 2016, consumption increased by about 4%, mainly due to the development of the network infrastructure.

Indirect energy consumption amounts to 491,543 GJ and is mainly attributable to the electricity consumed by the network infrastructure, while the electricity consumption of the

headquarters and stores contributes about 6% of the total. Compared to 2016, an increase of around 7% was recorded, due to the expansion of the network during the year.

20. 1 MWh = 3,6 GJ

% energy consumption by source

Electric energy consumption (GJ) 2015 2016 2017

Sites Offices GJ 28,688 25,688 26,984kWh 7,968,933 7,135,636 7,495,566

Stores GJ 2,630 2,275 2,340kWh 730,689 632,020 650,012

Equipment rooms and cabinets GJ 400,263 431,209 462,219kWh 111,184,055 119,780,214 128,394,078

Total GJ 431,694 459,273 491,543kWh 119,883,677 127,547,870 136,539,656

600,000

500,000

400,000

300,000

200,000

100,000

02015 2016 2017

Cons

umi e

nerg

etic

i (GJ

)

473,552521,494

431,581 459,172 491,543

41,970 41,716

500,888

Fastweb’s energy consumption

Direct energy consumptionIndirect energy consumptionTotal energy consumption

29,951

Diesel 3.4%

Gasoline 0.3%Natural gas 2.1%Electric Energy 94.2%

5.1 ENVIRONMENTAL IMPACT MANAGEMENT AND MONITORING

5.2 ENERGY CONSUMPTION AND ENERGY EFFICIENCY INITIATIVES


By comparing the energy consumption of technological sitesandcabinetswithdatatrafficoverthelast5years,theenergyefficiencyoftheFastwebnetwork can be measured. The trend, calculated as follows, shows a progressive

reduction in the energy intensity of the network, with a decrease of almost 70% of the kWh consumed perGigabyteoftraffic.Inparticular,2017recorded a decrease of over 16% compared to 2016.

These results highlight the effectiveness oftheinterventionsrealizedtoimprovetheefficiencyof technological systems, especially in relation to the numerous upgrades, extension and strengthening of the infrastructure realized in recent yearsandtheincreaseinthevolumeofdatatraffic (up 36% only in 2016).

During the year, the commitment to procurement

from renewable sources continued: 100% of the electricity purchased directly derives from renewable sources. Furthermore, thanks to the photovoltaic systems installed by the main Data Centers in 2016, 153,604 kWh were produced and used for self-consumption, with an increase of 48.6% compared to the previous year21.

Distribution of energy consumption

Technological sites and cabinets94.0%

Energy intensity

0

0.05

0.1

0.15

kWh/

Gbyt

e

0.2

2013

0.09 0.08 0.060.04

0.12

2014 2015 2016 2017

21. The increase is mainly due to the fact that the systems were activated in May 2016, while in 2017 they were operating throughout the period.

Flagship stores0.5%

Officesites5.5%

Electric energy produced in photovoltaic plants (kWh)

Direct energy consumption is mainly due to the consumption of diesel and natural gas. Natural gas is used in the heating systems of the headquarters22, while diesel fuel is used for the operation of the generators in the equipment rooms to ensure continuity of the network and for motor vehicles. For executives and employees who have regular contacts with external bodies,

vehicles mainly powered by diesel are assigned.

When calculating direct energy consumption, the consumption of petrol is also considered linked to the use of a fleet of cars in a pool, consisting entirely of electric/petrol hybrid cars, made available to all staff for travel or occasional trips.

22. Monitoring of natural gas consumption is only available for headquarters where a direct contract has been stipulated with the gas supplier.

0 10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

2016 2017

52,060

79,910Photovoltaic plant 1

51,315Photovoltaic plant 2

73,694


In order to reduce consumption deriving from mobility, asourceonwhichthecompanycansignificantlyintervene, Fastweb has implemented a Policy on sustainable mobility that promotes the reduction of travel, favoring the use of videoconferencing services.

The decrease in direct energy consumption in 2017, equal to about 28% compared to the previous year, is due to a sharp reduction in the consumption of diesel obtained thanks to an intervention aimed at limiting consumption23.

Also this year, Fastweb has carried out a plan of projects aimed at reducing energy consumption.

The interventions activated in 2017 will enable total energy savings of over 1 GWh (about 3.6 thousand GJ).

0 5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

10,470 28,995 2,5062015

10,724 29,603 1,3902016

10,915 1,3532017

Natural gas GasolineDiesel

23. For conversions of volumes of energy consumed, for primary source, in GJ, the coefficients indicated by the international GRI 3.1 standard have been used. In particular 1MWh = 3.6 GJ; 1000 Nmc methane gas = 39.01 GJ; 1 kg petrol = 44.80 MJ; 1 kg diesel = 43.33 MJ. The conversion from litres to kg of gas and diesel was carried out considering the conversion factors indicated by the GHG protocol document - Stationary Combustion Tool - ver. 4.0, in particular: 1 l petrol = 0.74 kg petrol; 1 l diesel = 0.84 kg petrol (http://www.ghgprotocol.org/calculation-tools/all-tools).

Direct energy consumption 2015 2016 2017

Petrol GJ 2,506 1,390 1,353l 75,581 41,917 40,801

Diesel GJ 28,995 29,603 17,684l 796,632 813,319 485,863

Natural Gas GJ 10,470 10,724 10,915l 283,115 288,974 295,137

Direct energy consumption (GJ)

KEY PROJECTS ENERGY SAVING INITIATIVES

KEY FIGURES

3 million kWh saved every years thanks totheenergyrequalificationofoneofthemain Data Centers

154,000 kWh produced in 2017 through the two photovoltaic systems

installed on the premises owned by Fastweb

540 Energy Efficiency Certificates accounted for 2017

OBJECTIVE

Continue the development and implementation of measures to reduce energy consumption, including the use of new technologies, in order to reduce the environmental impact of Fastweb activities and improve the company’s performance

Among the main energy saving initiatives of the year, Fastweb carried out the energy requalification of one of the main Data Centers, by replacing air conditioners and retrofitting the systems. It is estimated that the investment of about euro 1 million, will lead to an energy saving of about 3 million kWh in three years once completed and “up to speed”.

The company has continued to work on the use of free-cooling, which cools equipment rooms without using refrigerators but using the air at room temperature when the external temperatures allow it. In 2017, 3 interventions were identified at the technology sites, which are estimated to achieve an energy saving of 400,000 kWh/year. Other 5 interventions were

planned for the two-year period 2018-2019 through specific assessments on equipment rooms, aimed at assessing their environmental and economic feasibility. With the completion of the free cooling plan, starting from 2020 total energy savings of around 1 million kWh/year are expected.

In 2017 Fastweb defined specific guidelines for the introduction of solutions with high energy efficiency in the realization and/or renovation of equipment rooms. These provisions have already been adopted on the occasion of the realization of six new facilities during the year.

Finally, the installation of a system for monitoring the energy consumption and temperature and humidity values of the premises was completed at a first

Data Center, which allows constant monitoring of the site’s energy performance in order to optimize operating conditions, with the consequent optimization of consumption. A similar monitoring system will be installed at a second Data Center by the end of 2018.

Thanks to the energy efficiency measures implemented, Fastweb has reported 540 Energy Efficiency Certificates (TEE) for 2017.

Furthermore, during the two-year period 2018-2019, a retrofit of the air conditioning system of a Data Center is planned, with an expected energy saving of about 1 million kWh/year.

17,684

http://www.ghgprotocol.org/calculation-tools/all-tools


Since 2015, Fastweb has monitored its own greenhouse gas emissions through the calculation of the Carbon Footprint Every year the company records the emissions of greenhouse gases deriving from all its activities, on the basis of internationally recognized guidelines, in particular the “Corporate Accounting and Reporting Standard” of the Global Greenhouse Gas Protocol (the reference standard for monitoring climate-altering emissions) and the “ICT Footprint - Pilot testing on methodologies for energy consumptions and carbon footprint of the ICT - sector” developed by the European Commission.

Themodelconsidersalltheimpactsrelatedtooffices,network infrastructure, owned and franchised stores, supply chain, distribution and collection of equipment,

use of services by customers, management of product end-of-life24, considering:

direct emissions, due to activities of Fastweb or controlled by it (for example for the use of fuels for heating/cooling and for transport by company car and car pool) – Scope 1;

indirect energy emissions, deriving from the purchase of electricity – Scope 2;

other indirect emissions, deriving from the purchase of goods and services, business travel, travel home-work of employees, transport of equipment, customer consumption due to the use of products supplied by Fastweb, equipment end-of-life - Scope 3.

Greenhouse gas emissions (tCO2 eq) 2015 2016 2017

Direct (Scope 1) 6,453 6,405 4,884Indirect (Scope 2) 7,709 7,087 0Other indirect emissions (Scope 3) 126,276 174,434 172,691Total 140,438 187,926 177,575

24. Impacts mapping excludes only multi-brand outlets, whose contributions are negligible.25. The consumption of electricity not purchased directly but within a leasing contract of areas was considered within Scope 3 emissions.26. Value of emissions with location-based calculation, obtained considering the national energy mix.

5.3 THE COMMITMENT TO MONITORING CLIMATE IMPACT

The study shows that during the year Fastweb reduced its emissions by about 6% compared to 2016. This is the result of numerous initiatives put in place by the company, from smart working, the use of video conferencing for internal meetings and in general the reduction of employee trips, to the activities to raise awarenessonthedecreaseofprintinginoffices.

In particular, direct emissions (Scope 1) went from 6,405 to 4,884 tons of CO2 equivalent (-24%), due to a decrease of about 39% in fuel consumption.

With regard to Scope 2 emissions, Fastweb changed its calculation methodology for alignment with the model adopted by the Parent Company Swisscom25: the value of Scope 2 emissions recorded was equal to zero in 2017, since 100% of the electricity purchased directly by the company is produced from renewable sources. Applying the same calculation model to the consumption recorded in 2015 and in 2016, this would also result in a zeroing of Scope 2 emissions.

If Fastweb had purchased electricity from non-renewable sources, emissions from energy consumption recorded in 2017 would be 84,738 tCO2 eq26, this is the amount of emissions that every year Fastweb avoids emitting into the atmosphere thanks to its procurement policy from renewable sources.

With regard to other indirect emissions (Scope 3), Fastweb recorded a reduction from 174,434 to 172,691 tonnes of CO2 equivalent (-1%) in 2017, mainly due to the reduction in the types of devices sold and the consequent decrease in consumption related to the use of products by customers (-35%) and the reduction of interventions by technical staff at customers.

By calculating the emission intensity it is possible toevaluatetheefficiencyofFastwebintermsofclimate-altering emissions, as the ratio between total emissions (expressed in kilograms of CO2 equivalent) andthevolumeoftrafficrecordedonthenetwork(expressed in TByte). For 2017, this index is equal to 60, a decrease of 31% compared to 2016.

Other indirect emissions (Scope 3)

2015

2016

2017

Direct emissions (Scope 1) Other indirect emissions (Scope 3)Indirect emissions (Scope 2)

3.4% 92.8%

97.2%

3.8%

2.8%

4.6% 5.5% 89.9%

Fastweb’s GHG emissions - 2017

Purchase of goods and services74.9%

Use of products and services by customers 14.2%

Other emissions 10.9%


In 2017 Fastweb implemented the calculation of Enabling Effects (Scope 4) that represent the emissions avoided by customers thanks to the use of services provided by Fastweb. The model, developed on the basis of the guidelines of the Global e-Sustainability Initiative (GeSI) “Evaluating the carbon-reducing impacts of ICT” and the framework adopted by Swisscom, considers video-conferencing, housing and hosting services, remote working, services that allow customers to avoid printing documents and using online services. Thanks to the activities in these areas, on the basis of the calculation model used, it has been estimated that Fastweb allowed its customers

to avoid a total of 185,032 tCO2 eq of climate-changing emissions in 2017.

The analysis of Enabling Effects made it possible to assess the net impact in terms of climate change, by calculating the ratio between the emissions avoided and the emissions deriving from Fastweb activities, for a value of 1.04. Thisresulthighlightshowalreadytodaythebenefitsin terms of impacts on climate change deriving from the services offered by Fastweb are greater than the impacts generated by its activities.

2015

2016

2017

0 10 20 30 40 50 60 70 80 90 100

kg C

O 2eq /T

byte

89

87

60

Carbon emission intensity

Close to the population hit by the earthquake in Central Italy

Since August 2016, Fastweb has been at the forefront in supporting the people of central Italyhitbytheearthquake,fieldingvariousinitiatives in favor of Civil Protection, citizens and customers living in the affected areas. Alreadyinthefirstdaysaftertheearthquake, the company provided up to 600 smartphones and SIM cards that were distributed directly to the territory to those who need it. It has also promptly activated a series of measures in favor of affected customers, such as the suspension of billing for 6 months, the donation of 6 months of calls and free mobiledatatraffic,theactivationofadedicatedcustomer care group and the cancellation of all costs for closing the subscription and returning the equipment. Many of these measures have been extended in subsequent periods and extended to other municipalities affected by disasters in the following months, in accordance with the provisions issued by AGCOM.

Fundraising has been set up within the company: each employee has had the opportunity to donate from 1 to 4 hours of work, “doubled” through an equivalent corporate economic contribution. Thanks to this initiative, Fastweb donated euro 154,674, of which 77,337 donated by 1,110 employees. The sum collected was intended for the construction of two “houses” that will be donated to the municipalities of Accumoli and Arquata del Tronto.

LILT: pediatric telephone availability 24h

Fastweb, in collaboration with its customers, supports the 24-hour Pediatric Telephone Availability Project created by LILT (Italian League for the Fight against Cancer). For every euro donated by customers on their subscription, Fastweb donates another, doubling the value of the donation.

The project, created in 2014, aims to offer practicalhelptofamilieswhofacedifficultiesresulting from treatment in the period following

hospitalization, thanks to remote assistance offered by doctors of the Department of Pediatrics Oncology of the National Institute of Tumors of Milan, which guarantee telephone availability 24 hours a day.

Fundraising calls

The initiatives supported by Fastweb in 2017 focused on various social and humanitarian issues:scientificresearch,childhood,supporttodeveloping countries, violence against women, socially weak categories, nature and the environment, emergencies. In 2017 Fastweb customers donated a total of euro 695,735 to 104 associations.

Digital competences for asylum seekers

From November 2016 to December 2017, Milano’s Montello barrack located near aFastweboffice,wasdestinedbytheMunicipalityas a space to welcome all asylum seekers present in the city. Fastweb decided to activate a project dedicated to the guests of the barracks.

In particular, the project involved the preparation of two classrooms with PCs and furnishings,

Fastweb supports the territory in which it operates byfinancinglocalprojectsandinitiatives,alsothroughthe involvement of its employees and customers.

5.4 PROXIMITY TO THE TERRITORY AND COMMUNITY

http://www.fastweb.it/adsl-fibra-ottica/dettagli/lilt-e-fastweb/

http://www.fastweb.it/adsl-fibra-ottica/dettagli/lilt-e-fastweb/


theactivationofafixedfiberopticlineand awi-ficonnectionnetwork.

Following the preparation of the classrooms, some computer literacy courses were organized. Some volunteers, chosen among the employees, participated as teachers to teach the rudiments of computing to people of different nationalities, with the hope that these bases can contribute to improving the life and the future of the people involved.

Fastweb supports Dynamo Camp

Dynamo Team Challenge is a two-day sporting event held at Dynamo Camp,thefirstrecreationaltherapy camp in Italy that welcomes children aged 6 to 17, suffering from serious and chronic diseases, mainly onco-haematological, neurological and diabetes, for vacation and leisure periods. Each test faced by the teams in the competition is equivalent to one hour of recreational therapy given to a guest of Dynamo Camp.

Fastweb participated in the Dynamo Team Challenge not only as a sponsor, but also bringing two Teams of employees, one for the Bike race and one for the Running race, who “donated” their energy and physical effort to support this important project.

A second life to the furnishings of the Fastweb offices

Following the process of renewing the spaces oftheFastweboffices,thecompanyhasactivated an initiative that has provided for the donation of furniture no longer used, butstillingoodcondition,tonon-profit

organizations operating in the local area.

The project was carried out in Turin, Milan and Bari and involved a total of 10 associations that were able to renew the spaces in which they operate thanks to the donation received.

Una vita da social

Fastweb supported the fourth edition of Una vita da social, the itinerant educational campaign promoted by the Postal and Telecommunications Police, focusing on the themes of social networks, cyberbullying, online grooming and the importance of privacy security. This initiative is aimed at young people, the main users of the network, and aims to prevent the occurrence of incidents of violence, abuse, defamation and online harassment, to ensure that the Internet is seen as an opportunity and not a danger.

In 2017 some Fastweb employees actively participated in two stages of the tour, in Brescia and Florence, bringing the company experience on issues related to the project and assisting the Police with interventions during meetings with the young people.

Fastweb supports Parole O_Stili

With the aim of improving the way of networking andsocialnetworking,fightingexclusion and cyberbullying, Fastweb supported “Parole O_Stili”, an initiative to raise awareness against verbal violence supported by over 500 journalists, managers, politicians, teachers, communicators and influencers, in partnership with the Ministry of Education, University and Research (MIUR).

As part of this initiative, a free event was held in May for teachers and high school students, at the same time in the cities of Milan, Trieste, Matera and Cagliari, where the non-hostile communication manifesto, was presented, apaperthatcollects10principlestoredefine

the style to be adopted for the Internet. The manifesto, developed by a community of over 300 communicators, bloggers and influencers, aimstostemandfightthenegativelanguagesthat are disseminated on the Internet with the aim of creating a respectful, civil and safe place.

The Manifestoof Non-Hostile Communication

paroleostili.it

Virtual is realOn the Internet, I only write or saywhat I would dare to say in person.

1.

You are what you communicateThe words I choose define who I am.They represent me.

2.

Words are bridgesI choose words to understand, make myselfunderstood and get close to others.

5.

Words shape the way I thinkI take all the time I need to expressmy views in the best possible way.

3.

Listen before you speakNo one can always be right,and nor am I. I listen, with an honestand open-minded attitude.

4.An insult is not an argumentI accept no offensive and aggressive words,even if they support my point of view.

9.

Silence says something tooWhen it’s better to keep quiet... I do.

10.

Words have consequencesI am aware that what I say or writecan have consequences, small or serious.

6.

Share with careI share texts and image only afterI have read, assessed and understood them.

7.

Ideas can be discussed. People must be respectedThose whose views and opinions differfrom mine are not enemies to be destroyed.

8.

https://www.dynamocamp.org/en/

http://paroleostili.com/?lang=en

Supplementary informationSupplementary information 107106

Supplementary information

109108

Employees

Customers

METHODOLOGICAL NOTEperformance; in particular, this document covers the period between 1 January and 31 December 2017. For further information and suggestions or to request a copy of the Sustainability Report please write to: [email protected].

SCOPE OF THE REPORT

In line with the previous year, the Sustainability Report only refers to Fastweb S.p.A., single-member company managed and coordinated by Swisscom AG, exercised through the subsidiary, Swisscom Italia S.r.l.

DATA COLLECTION AND REPORT VALIDATION PROCESS

The data and information reported in this document was collected through interviews with representatives and data collection forms. The processes of approval and sharing of information are the basis of the editorial principles of the Sustainability Report of Fastweb: the structure of the document and the topics on which to focus reporting (material issues) are approved by the CEO and the text of the Report is validated bythefunctionsinvolved.ThefinalversionoftheSustainability Report is presented to and approved by the Board of Directors.

REPORT ASSURANCE Once again this year, Fastweb decided to submit the report for revision to an independent third party whoseverificationstatementisinthe“Declaration of Assurance” annex.

SwisscomGroup

Community

Public Administration and Regulator

Media

Suppliers Vision meeting Communication and continuous dialogue on the company intranet Agorà Periodic conventions (Road Shows, Canvass, etc.) Tools for making proposals, sharing ideas or for asking for information (World café, group Mailboxes, surveys, etc.) Annual internal survey Periodic internal staff meetings for each of the functions Annual performance reviews

Internet channels (website, monthly newsletters, MyFASTPage, MyFastweb) Social Media Forums Net Promoter Score survey quarterly or annually, depending on the cluster of customers ADR (Alternative Dispute Resolution) Portal

Meetings of the Board of Directors Annual and periodic management reports Periodic meetings and exchanges between operational units

Continuousmanagementofpartnershipswithorganizationsandnonprofitentitiesto implement initiatives of digital, social and territorial development

Research on corporate reputation (ex. Reputation Institute surveys on monthly to annual basis)

Work groups Industry technical workshops Public consultation procedures Contributionindefiningnewstandardsandcorrespondingbindingprovisions

Press releases Press review Website Social Media

Online Platform Periodic meetings between suppliers representatives and operational units

THE APPROACH TO REPORTING AND THE PRINCIPLES FOR DEFINING THE QUALITY OF THE REPORT

The Sustainability Report of Fastweb reached its 6th edition and was prepared in compliance with the “GRI Sustainability Reporting Standards” definedin2016bytheGlobal Reporting Initiative (GRI) according to the “in accordance - comprehensive” option.The document was drawn up according to the principlesfordefiningthecontentsoftheGRIreport:

completeness: the material issues that guide the contents of this Report are treated in their entirety and represent the most relevant environmental, social and economic aspects for Fastweb activities, allowing a complete assessment of the company’s performance in the reporting year;

context of sustainability: Fastweb’s performance is included in the broader context of sustainability and business, including numerous scenario information in relation to the main material issues dealt with;

inclusion of stakeholders: the contents of this document have been designed starting from the stakeholders’ requests collected by the company itself,asacentralelementforthedefinition of the materiality analysis;

materiality: the issues to be reported have been identifiedthroughanassessmentoftheirinfluenceon the decisions and assessments of stakeholders andonthebasisofthesignificanceofthecompanyimpacts in social, economic and environmental aspects.

To ensure the quality of the information reported, the GRI quality principles were followed in the preparation of the Report:

accuracy: the level of detail of the contents reported is adequate for understanding and assessing the sustainability performance of Fastweb in the reporting year;

reliability: the data presented in the document was collected, processed and validated by the managers of each department with the collaboration of a consulting company. The economic data is consistentwiththedatainthefinancialreport;

clarity: the choice of a clear and accessible language and the use of graphs and tables to represent the performances make this Report usable and easy to understand for stakeholders;

comparability: the indicators presented in the Report are shown for the three-year period 2015-2017 and accompanied by a comment on their performance in order to allow the comparison and comparability of Fastweb’s performance over time;

balance: the contents of this document show the company’s performance in a balanced manner during the reporting period;

timeliness: the Report takes into consideration events occurring after 31 December 2017 that maybesignificantfortheassessmentoftheGroup’sperformance by stakeholders.

Fastweb publishes the Sustainability Report on an annual basis to ensure constant reporting of its

STAKEHOLDER ENGAGEMENT ACTIVITIES

Dialogue with stakeholders is essential for Fastweb, which operates to make communication with stakeholders as continuous and bidirectional as possible, with the aim of disseminating its initiatives and strategies and receiving feedback on environmental, social and economic aspects of reference.

Fastweb’sstakeholdersareidentifiedfollowing the International Standard, AA1000SES, which analyzes the reliability, responsibility, focus, influence and theconceptofdiversifiedpointsofview.The Sustainability Report, published both on the company website and in print, is widely used as an engagement tool. In particular, it is shared with the main customers and conveyed to some municipal administrations. From the link http://www.fastweb.it/corporate/sostenibilita/strategia-obiettivi-e-report/ it is possible to consult and download the entire document, whose publication is communicated to all users and suppliers.

Furthermore, Fastweb carries out numerous initiatives of listening, dialogue and communication with its internal and external stakeholders. The tools used are many: from events and meetings dedicated to communication, to the implementation of targeted listening initiatives, to interaction through Internet channels (website, Intranet, social media, pages dedicated to communication).

Supplementary informationSupplementary information

https://www.globalreporting.org/Pages/default.aspx

http://www.fastweb.it/corporate/sostenibilita/strategia-obiettivi-e-report

http://www.fastweb.it/corporate/sostenibilita/strategia-obiettivi-e-report


Materiality analysis is the tool used by Fastweb to defineandupdate,onanannualbasis,theuniverseof relevant topics and the list of topics on which to concentrate the reporting. During 2017, the company reviewed the list of material issues, starting from a scenario analysis, aimed at identifying sustainability trends and pressures for the telecommunications sector, through the study of 34 Italian and European policies, 20 sustainability studies regarding the telecommunications and ICT world, and a benchmark

analysis on 14 peers and national and international competitors.Theissuesthusidentifiedhavebeenpre-evaluated based on the parameter “Influence on decisions and stakeholder evaluations”, starting from the aforementioned analyzes. This pre-evaluation, was the subject of a workshop with 13 managers of theorganizationwithkeyrolesintheissuesidentified,who were asked to prioritize the issues proposed basedonthesignificanceofthesocialandeconomicenvironmental impact of the company.

ThematerialissuesidentifiedbyFastwebareattributable to the relevant issues indicated in the GRI Standards as shown in the table below.

The table also indicates the perimeter of each aspect and any limitations related to the failure to extend reporting to the external perimeter.


partner

Responsibility and

environmental sustainability


enabler

Digital infrastructure for the Country Technological and services innovation Digital literacy in schools and the workplace Value generation and support to entrepreneurship Impacts of technology on people’s lives

Listening to customers and quality of service Transparency and trust Privacy and cyber security

Energy efficiency and climate change Help and support to local communities

Diversity, equal opportunities and meritocracy Attracting and training talents Health and safety in the workplace Welfare and professional well-being

Work and inclusion

Economic and business performance Ethics and compliance

Material issues

Material aspects GRI Standard

Internal/external impact

Stakeholders impacted

Description of the issue, scope of the aspect and limitations on reporting

Digital infrastructure for the country

GRI 203 - Indirect Economic ImpactsGRI 413 -Local Communities

External Customers, Public Administration, Regulator, Communities

The fundamental point of the company strategy is the strengthening and development of infrastructures to facilitate the advanced digitalization of the country. Fastweb’s action has wide-ranging impacts on stakeholders, representing a contribution to the achievement of national and European objectives and allowing access to increasingly fast and convergent connection services to customers and the community.

Competenze digitali nella scuola e nel lavoro

GRI 203 - Indirect Economic ImpactsGRI 413 - Local Communities

Internal and external

Communities, Customers, Employees

The theme is linked to the contribution of Fastweb to the promotion of digital skills and attitudes at school and work. With its projects, Fastweb intends to contribute to the community by supporting communities and the Public Administration in one of the fundamental challenges for digital transition in the country.

Technological and services innovation

- External Customers and Community

The company is constantly committed to developing and adopting new technologies aimed at providing connectivity that enhances the accessibility and usability of information and services. With its experiments and innovations, from 5G to WOW FI, Fastweb has an impact on the modernization of the country, on the institutional objectives and on the community contributing to the digital technological evolution on a national scale.

Impacts of technology on people’s lives

- External Customers Digitaltechnologiesbringtransversalbenefitsfor the life of users and communities, but their dissemination is also linked to risks in terms of incorrect use of the Internet. The potential impacts therefore affect customers and Fastweb undertakes toconstantlymonitortheevolutionofscientificstudies and regulatory provisions on these aspects.

Creation of value and support for entrepreneu-rship

- External Community The digital world represents an engine of the new business development of the country. Fastweb’s impacts on this issue are now linked to some activities related to digital skills, but this is an area regarding which the company wants to strengthen its activities in the future.

Attracting and training talents

GRI 202 - Market PresenceGRI 404 - Training and Education

Internal Employees For an innovative company, attracting the best resources on the market and working on internal skills are fundamental aspects. Through the management of this issue, Fastweb has an impact on the lives of its employees and their professional development, with the aim of ensuring the necessary basis for a lasting business success and to support people in their personal and professional journey.

MATERIALITY ANALYSIS


Material issues





Occupational health & safety

GRI 403 - Occupational Health and Safety


Employees and Suppliers

Promoting health and safety means actively monitoring current and potential risks, to mitigate and prevent - in line with international standards - workplace accidents and possible health impacts of Fastweb’s activities. The issue primarily concerns workers who work on behalf of the company and the activities contracted externally throughspecificsafeguardsinthephaseofqualificationandmanagementofsuppliers.Thequantitative accounting on this issue is limited to the internal dimension.

Welfare and professional well-being

GRI 401 - Employment

Internal Employees Guaranteeing the well-being of employees is, for Fastweb, a fundamental part of the approach to the management of human resources. This means taking action to create a positive work environment through work-life balance initiatives and monitoring and improving the company climate.

Diversity, equal opportunities and meritocracy

GRI 405 - Diversity and Equal Opportunity


EmployeesCommunity

Protecting employees by valuing merit and diversity for Fastweb means actively promoting the creation of an inclusive and effective work environment. The company impact on this issue concerns employees and, potentially, the community, for example through participation in initiatives to promote diversity and valorize female talent.

Listening to customers and quality of service

GRI 417 - Marketing and Labeling

External Customers In line with the “Customer First” corporate value, the issue refers to Fastweb’s commitment to providing its customers with a quality service able to meet their needs and expectations. This means activating listening channels aimed at monitoring needs and ensuring a quality experience at all points of contact with the company, from stores to digital channels.

Privacy and cyber security

GRI 418 - Customer Privacy


Employees Customers Suppliers

Protecting privacy and promoting cyber security for Fastweb means activating internal controls in line with current regulations and national and international best practices regarding management of the network, IT systems and internal processes. Furthermore, through dedicated products and services, Fastweb intends to support its Enterprise customers in managing these issues.

Material issues





Transparency and trust

GRI 417 - Marketing and LabelingGRI 419 - Socioeconomic Compliance

External Customers For Fastweb, promoting transparency and trust means promoting an open relationship with its customers based on the clarity of business conditions, the freedom of consumer choice and the elimination of restrictions. Through innovative and unique initiatives on the market, the company intends to promote a new approach with impacts not only on its customers but also on the market as a whole.

Ethics & Compliance

GRI 205 - Anti-corruptionGRI 206 - Anti-competitive behaviorGRI 419 - Socioeconomic ComplianceGRI 406 - Non-discriminationGRI 417 - Marketing and Labeling


All categories of stakeholders

Fastweb considers integrity, professional ethics and transparency in relations with stakeholders essential principles of company conduct. With this issue, we therefore refer to the set of internal safeguards aimed at ensuring the correct management of all company activities.

Economic and business performance

GRI 201 - Economic Performance


SwisscomEmployees

Economic sustainability and business growth are key objectives and factors that enable corporate activities as a whole. The business impact in this primarily concerns Swisscom and its employees, but is indirectly reflected on all company stakeholders.

Energy efficiencyand climate change

GRI 302 - EnergyGRI 305 - Emissions


CommunityCustomersSuppliers

With this issue, Fastweb refers to the management and progressive mitigation of its main environmental impacts. Most energy consumption and related climate change emissions are attributable to the electricity consumption of the network infrastructure. Fastweb undertakes to monitor the impacts of its products and services even outside the company, as far as suppliers and customers are concerned.

Proximity to the territory and to the communities

- External Community Through the creation and support of projects for local communities, Fastweb intends to positively affect the social fabric in all the territories in which the company operates.

115Supplementary information114 Supplementary information

CALCULATION METHODOLOGY

The methodological indications for some of the indicators shown in this Sustainability Report are outlined below.

Indicators related to personnelAll personnel indicators, with the exception of 102-8 and 403-2, which consider the total workforce including trainees and temporary workers, refer to employees with permanent contracts, employeeswithfixed-termcontractsandapprenticesin force at 31/12 of the reference year.

Turnover rateThe incoming turnover rate is calculated as the number of hires during the year compared to the number of people at the company on 31 December of the same year.The outgoing turnover rate is calculated as the number of terminations during the year compared to the number of people at the company on 31 December of the same year.The total turnover rate is calculated as the number of hires and terminations during the year compared to the number of people at the company on 31 December of the same year.

Retention rate after parental leaveThe retention rate after parental leave is calculated as the number of employees (with permanent contract,fixed-termcontractandapprentices) still in force after 12 months from returning from maternity/paternity leave with respect to the number of employees who took parental leave during the year.

Injury indexes and absenteeismThe injury indexes were calculated as follows:

Severity index: number of days lost due to injury/workable hours * 200,000

Injury index (frequency index): number of injuries/hours worked * 200,000

Absenteeism rate: number of absenteeism days/workable days * 100

Only employees are included in the calculation of the indexes over the three-year period,

while the personnel on stage or hired with a project contract are excluded from the severity and accident rate index for workers with permanent contracts, determined and apprenticeships, while personnel on internships and temporary workers are excluded. Thefirstdayconsideredisthedateonwhichtheaccident is opened; registered injuries are those that have a prognosis of at least 3 days. The hours worked were calculated by subtracting the hours lost during the year by the hours lost due to absenteeism in the same year.The absenteeism rate refers to the days of absence from work related to illness, accident, unpaid leave andallothercausesofnon-justifiableabsenceon the basis of the provisions of the national reference contracts. The indicator is calculated onlyonemployees(permanent,fixed-termandapprenticeships).

Energy consumptionFor conversions of volumes of energy consumed, forprimarysource,inGJ,thecoefficientsindicated by the international GRI 3.1 standard have been used. In particular 1MWh = 3.6 GJ; 1000 Nmc methane gas = 39.01 GJ; 1 kg petrol = 44.80 MJ; 1 kg diesel = 43.33 MJ. The conversion from liters to kg of gas and diesel was carried out considering the conversion factors indicated by the GHG protocol document - Stationary Combustion Tool - ver. 4.0, in particular: 1 l petrol = 0.74 kg petrol; 1 l diesel = 0.84 kg petrol (http://www.ghgprotocol.org/calculation-tools/all-tools).

Greenhouse gas emissionsThe calculation of emissions was carried out on the basis of internationally recognized guidelines, in particular the “Corporate Accounting and Reporting Standard” of the Global Greenhouse Gas Protocol (the reference standard for monitoring climate-altering emissions) and the “ICT Footprint - Pilot testing on methodologies for energy consumptions and carbon footprint of the ICT - sector” developed by the European Commission. For the calculation of Scope 2 emissions with location-based method, account has been taken of the factors included in the international Ecoinvent database.

ASSURANCE STATEMENT ADDRESSED TO FASTWEB STAKEHOLDERSINTRODUCTION

Fastweb S.p.A. (“Fastweb”) has commissioned Bureau Veritas Italia S.p.A. (“Bureau Veritas”) an independent assurance of its 2017 Sustainability Report (“Report”), forthepurposeofprovidingfindingsover:

the accuracy and quality of published information concerning its sustainability performance;

the correct application of those reporting principles outlined in the Report’s methodology, in particular Global Reporting Initiative Sustainability Reporting Standards (GRI Standards).

RESPONSIBILITY, METHODOLOGY AND LIMITATIONS

Fastweb alone had the responsibility of collecting, analyzing, collating and presenting information and data included in its Report. Bureau Veritas responsibility has been to perform an independent assurance against definedobjectivesandtoreachtheconclusionsreported in this Statement.

The assurance performed has been a Limited Assurance in accordance to the ISAE 3000 standard, through sample application of audit techniques, including:

review of Fastweb’s policy, mission, values, commitments;

review of records, data, procedures and information-gathering systems;

interviews to members of the working group responsible for drafting the Report;

interviews to company representatives from various functions and levels, including top management; overallverificationofinformationandgeneralcontentof the 2017 Sustainability Report.

The assurance activities have been performed at the company’s site in Via Caracciolo (Milan - Italy), and webelievewehaveobtainedsufficientandadequateevidence to support our conclusions.

The assurance has covered the whole 2017 Sustainability Report, with the following limitations: for economicandfinancialinformation,BureauVeritasonlyverifiedtheirconsistencywiththecompany’sannualreport and accounts; for activities outside the reference period (1 January 2017 – 31 December 2017) and for statements of policy, intent and objective, Bureau Veritasverifiedtheirconsistencyagainsttheoutlinedreporting methodology.

CONCLUSIONS

Following the assurance activities described above, nothing has come to our attention to indicate that information and data in the Report are inaccurate, incorrect or unreliable. In our opinion, the Report provides a trustworthy representation of Fastweb activities conducted during the year 2017 and of main results achieved.Information is reported generally in a clear, comprehensible and balanced manner.In the illustration of activities and results, in particular, Fastweb has paid attention to adopt a neutral language, avoiding as far as possible the self-referentiality.

With regards to the reporting methodology outlined by the organization in its Report, it is our opinion that principles from the GRI Standards (Stakeholder Inclusiveness, Sustainability Context, Materiality, Completeness, Accuracy, Balance, Clarity, Comparability, Reliability, Timelines) were duly implemented. Based on our assurance activities, a “Comprehensive” level of implementationhasbeenachieved.Wealsoconfirmthat our activities met the GRI requirements for external assurance.

DECLARATION OF INDEPENDENCE, IMPARTIALITY AND COMPETENCE

Bureau Veritas is a global organization specialized in independentassurance,inspectionandcertificationactivities, with over 180 years history, 69.000 employees and an annual turnover of 4,55 billion euro in 2016.

Bureau Veritas applies internally a Code of Ethics and we believe there were no conflicts of interest between members of the assurance team and Fastweb at the time of the assurance.

Bureau Veritas Italia S.p.A.Milan, March 19th 2018

http://www.ghgprotocol.org/calculation-tools/all-tools


GRI Standard Disclosure Page number Notes Omissions

Governance

102-18 Governance structure of the organization, including committees that report directly to the highest governance body. Committees involved in decisions on economic, environmental and social issues

13-16

102-19 Processes of delegating of the authority with respect to economic, social and environmental issues from the governance body to top management and other employees

- Mandates were formalized on safety and environmental responsibility to personnel with a power to spend and who assumed criminal and civil liability

102-20 Executive responsibilities for economic, social and environmental issues

- Within the Marketing & Customer Experience department, a structure has been identified dedicated to Corporate Responsibility with the aim of overseeing existing business initiatives, planning targeted actions and interventions, and periodically reporting to Management

102-21 Description of the consultation process between stakeholders and the highest governance body

17-18

102-22 Composition of the highest governance body of the organization and its committees

13-15

102-23 Information on the President of the highest governance body of the organization

- The Chairman of the Board belongs to the parent company Swisscom and has no executive role in the implementation of Fastweb’s CSR strategy

102-24 Description of the selection processes and appointment of the members of the highest governance body

13-15

102-25 Description of the processes used to ensure the absence of conflicts of interest

14-18

102-26 Role of the highest governance body in the definition of objectives, values and strategy of the organization

13-15

102-27 Development of the knowledge of economic, environmental and social aspects by the highest governance body

13-15

102-28 Evaluating the highest governance body’s performance

13-15

102-29 Identification and management of economic, social and environmental impacts

13-15

102-30 Role of the highest governance body in verifying the effectiveness of the risk management system for economic, environmental and social aspects

13-15

102-31 Frequency of checks by the highest governance body of the effectiveness of the risk management system for economic, environmental and social aspects

13-15

102-32 Body approving the financial statements - The Board of Directors approves the document every year before its publication

102-33 Description of the communication process with the highest governance body

13-15


GRI 102: General Disclosures 2017

Organizational Profile

102-1 Name of the organization 6

102-2 Activities, brands, products and services 6

102-3 Location of headquarters - Via Caracciolo 51 Milano

102-4 Location of operations 6

102-5 Ownership and legal form 6

102-6 Markets served 6

102-7 Scale of the organization 6-9 In addition to the information contained in paragraph 1.1 Fastweb has 15 offices in Italy: Milan Caracciolo, Milan Valcalva, Milan Fulvio Testi, Padua, Bologna, Turin, Genoa, Sesto Fiorentino, Rome, Pescara, Naples, Bari, Palermo, Catania and Cagliari and a garrison in Brussels

102-8 Information on employees and other workers 72-74 The subdivision by “region” of employees has not been reported as not significant for the reality of Fastweb, which operates only in Italy

102-9 Description of the supply chain (no. suppliers, volumes and procurement markets)

24-25

102-10 Significant changes in size, structure, ownership structure and supply chain during the reporting period

- During the year there were no significant changes

102-11 Explanation of whether and how the precautionary approach or principle is addressed

17-18

102-12 External initiatives - Today there are no external initiatives to which the company participates

102-13 Memberships in national and/or international industry associations

61,74

Strategy

102-14 Statement from the most senior decision maker of the organization about the relevance of sustainability to the organization and its strategy

2-3

102-15 Key impacts, risks, and opportunities 25-29, 34-47, 62-67, 94, 110-113

Ethics & Integrity

102-16 Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental, and social performance and the status of their implementation

12, 17-19

102-17 Mechanisms for finding suggestions and for reporting concerns and recommendations on conduct or issues related to ethics and integrity

17-20 It is possible to send reports to the Supervisory Body using the reporting tool available on Agorà

GRI CONTENT INDEX



102-46 Definition of the contents of the Report and the boundaries of the issues

108-109, 111-113

102-47 List of material issues 110

102-48 Explanation of the effects of any modification of information provided in earlier reports, and the reasons for such modifications

- Any restatements are reported directly in the text

102-49 Significant changes in objective and scope - There were no significant changes during the reference year

102-50 Period to which the social responsibility report refers

108-109

102-51 Date of publication of the most recent social responsibility report

108-109

102-52 Frequency of reporting 108-109

102-53 Contact details and useful addresses to request information regarding the social responsibility report and its contents

108-109

102-54 Choice of the option “in accordance” 108

102-55 Explanatory table of the contents of the report 116-125

102-56 Policies and practices for external verification of the social responsibility report

115


Material Topics

Economic Performance Indicators

Economic Performance

GRI 103: Management Approach 2017

103-1 Explanation of material aspects and related perimeters

110-113

103-2 General information on the management approach and related characteristics

21-23

103-3 Evaluation of the management approach 15

GRI 201: Economic Performance 2017

201-1 Economic value directly generated and distributed

22-23

201-2 Financial implications and other risks and opportunities for the organization’s activities due to climate change

- As part of the analysis of business continuity risks, the risks related to climate change are not assessed as relevant, consequently no in-depth impact analyzes are carried out

201-3 Coverage of pension plans defined by the organization

82

201-4 Loans received from the public administration - Not present

Market Presence



110-113


102-34 Number and description of communications received from the highest governance body

- No critical concerns related to CSR issues were communicated to the BoD in 2017

102-35 Description of remuneration policies 13-15, 85-86

102-36 Process of determining remuneration policies 13-15, 85-86

102-37 Description of how the opinions of the stakeholders are taken into account in the process for determining remuneration

13-15, 85-86

The only stakeholder involved in the remuneration process is the shareholder

102-38 Ratio between employee remuneration with highest salary and median salary

- The indicator cannot be disclosed for confidentiality reasons. This is information that is guarded and managed by the Human Capital Division, which has classified it as being “Strictly Confidential”. Said information if published without the proper and complex comments, could be incorrectly or misleadingly interpreted by readers

102-39 Ratio between the percentage increase in the salary of the employee with highest salary compared to the median increase

- The indicator cannot be disclosed for confidentiality reasons. This is information that is guarded and managed by the Human Capital Division, which has classified it as being “Strictly Confidential”. Said information if published without the proper and complex comments, could be incorrectly or misleadingly interpreted by readers

Stakeholder Engagement

102-40 List of stakeholder groups engaged by the organization

108-109

102-41 Percentage of employees covered by collective bargaining agreements

74

102-42 Basis for identification and selection of stakeholders with whom to engage

108-109

102-43 Approach to stakeholder engagement activities

60, 79, 108-109

102-44 Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting

108-109

Reporting practice

102-45 List of entities included in the consolidated financial statements and those not included in the social responsibility report

109



Environmental Performance Indicators

Energy



110-113


94-99

103-3 Evaluation of the management approach 16, 92-94

GRI 302: Energy 2017

302-1 Energy consumption within the organization 95-99

302-2 Energy consumption outside the organization 100-102 In the calculation of the company’s carbon footprint the electric energy consumption related to the use of ICT equipment by customers is considered, for a total of 2,563,611 kWh / year for residential customers and 5,092,568 kWh / year for business customers

302-3 Energy intensity 96

302-4 Reduction of energy consumption 95-99

302-5 Reduction in energy consumption of products and services

56, 95-99

Emissions



110-113


94, 100-102

103-3 Evaluation of the management approach 16, 92-93, 100-102

GRI 305: Emissions 2017

305-1 Direct greenhouse gas emissions (Scope 1) 100-102 The calculation model adopted includes all greenhouse gases

305-2 Indirect greenhouse gas emissions (Scope 2) 100-102

305-3 Other indirect greenhouse gas emissions 100-102

305-4 Intensity of greenhouse gas emissions 102

305-5 Reduction of greenhouse gases 100-102

305-6 Emissions of ODS (Ozone-depleting substances)

- Not applicable

305-7 Nitrogen oxides (NOx), sulfur oxides (SOx) and other significant emissions

- Not significant for Fastweb, whose emissions depend on the car fleet



85-86


GRI 202: Market Presence 2017

202-1 Ratio of standard entry level salary of new hires by gender and the local minimum salary at significant operating sites

86

202-2 Percentage of senior executives hired in the most significant operational offices by the local community

- Not applicable to Fastweb as it only operates in Italy

Indirect Economic Impacts



110-113


16, 36-42, 43-47


GRI 203: Indirect Economic Impacts 2017

203-1 Development and impact of investments in infrastructure and services provided for “public utility”

36-42

203-2 Main indirect economic impacts, including the extent of the impacts

36-47

Anti-Corruption



110-113


16-18

103-3 Evaluation of the management approach 16-17

GRI 205: Anti-Corruption 2017

205-1 Percentage and total number of areas of operation analyzed with respect to risks related to corruption

18

205-2 Communication and training on anti-corruption policies and procedures

17

205-3 Corruption incidents and actions taken - No corruption incidents were recorded during 2017

Anti-Competitive Behaviour



110-113


16-18


GRI 206: Anti-competitive behaviour 2017

206-1 Legal actions for anti-competitive conduct, anti-trust and monopolistic practices

20



403-3 Workers with high incidence or high risk of injury or occupational disease

87

403-4 Topics of health and safety included in formal agreements with the trade unions

87

Training and Education



110-113


16, 75-78


GRI 404: Training and Education 2017

404-1 Average hours of training per year per employee by gender, and by employee category.

76-77

404-2 Programs for skills management and continuous learning that support the continuous employability of employees and assist them in the management of career end

76-78 The management of the career has not been assessed as a relevant issue for Fastweb and therefore it is not the subject of specific business plans

404-3 Percentage of employees receiving regular performance assessment and career development reviews

78

Diversity and Equal Opportunity



110-113


16, 85-86


GRI 405: Diversity and Equal Opportunity 2017

405-1 Composition of governance bodies and breakdown of employees according to gender, age group, minority group membership, and other indicators of diversity

85

405-2 Ratio between male and female basic salary by category and by operational qualification

86

Non-discrimination



110-113


16, 85-86


GRI 406: Non-discrimination 2017

406-1 Accidents of discrimination and corrective actions taken

85


Social Performance Indicators

Employment



110-113


16, 18-19, 25-29, 72-74


GRI 401: Employment 2017

401-1 New hires and employee turnover 73 The figure relating to hires and terminations has not been specified by “region” as it is not relevant (the figure only involved Italian employees)

401-2 Benefits provided to full-time employees that are not provided to temporary or part-time employees for principal activities

- There are no differences in benefits between full-time and part-time employees. With reference to the differences between indeterminate time and fixed term, it is noted that the existing insurance policies are provided for permanent employees only. The company health plan is applicable only for workers with a minimum contract of 12 months

401-3 Parental leave 86

Occupational Health and Safety



110-113


16, 18-19, 87-88


GRI 403: Occupational Health and safety 2017

403-1 Percentage of total workers represented in the company-worker formal committees for health and safety that allow monitoring and reporting on occupational health and safety programs

87

403-2 Rates of injury, occupational diseases, lost days, and absenteeism, and total number of work-related fatalities, by geographical area and by gender.

87-88 The indicator was not reported by region as it is not relevant to Fastweb which operates entirely in Italy

Quantitative information requested by the indicator is not available with reference to suppliers. The company manages the aspect through structured procedures and controls, and believes that data collection on these indicators can not be carried out in the short and medium term



Local Communities


103-1 Explanation of material aspects and related boundaries

110-113


16, 36-47


GRI 413: Local communities 2017

413-1 Percentage of areas of operation with implementation of local community involvement programs, impact assessment and development

36-47

413-2 Areas of operation with significant current and potential negative impacts on local communities

- There were no significant negative impacts on the communities due to Fastweb

Marketing and Labeling



110-113


16, 57-59


GRI 417: Marketing and labeling 2017

417-1 Requirements for product information and labeling

- Fastweb verifies that all the ICT products produced by third parties and supplied to the customers comply with the current regulations regarding labeling, technical standards of the sector and safety of the equipment during use, maintenance and disposal. Modems launched on the market in 2017 are equipped with the energy saving function and comply with the energy efficiency requirements set by the “European Commission’s Code of Conduct on Energy Consumption of Broadband Equipment”.The commercial information related to the customer services is contained and from time to time updated in the map of the services available together with the quality of network connection objectives at http://www.fastweb.it/adsl-fibra-ottica/qualita-e-cards-services/

417-2 Total number of incidents (by type) of non-compliance with regulations and voluntary codes concerning product/service information and labeling

- There have been no incidents caused by non-compliance of the services offered or due to failure to provide product information


417-3 Total number of incidents (by type) of non-compliance with regulations and voluntary codes concerning marketing activities, including advertising, promotion, and sponsorship

- During the reporting period, 3 judgments were received from the Jury of Advertising, made against Fastweb as a consequence of appeals from competitors. In particular, with the rulings n. 4-4bis/ 2017 of 14/02/2017, 66/2017 of 10/10/2017 and 72-73/2017 of 19/12/2017, considered commercial communications regarding the characteristics of the service provided or the proposition as not completely correct of the commercial offer. The commercial communications subject to the rulings have been promptly adapted

Customer Privacy



110-113


16, 64-66

103-3 Evaluation of the management approach 16, 50

GRI 418: Customer privacy 2017

418-1 Justified complaints about breaches in customer privacy or loss of customer data

65

Socioeconomic Compliance



110-113


16-20


GRI 419: Socioeconomic compliance 2017

419-1 Value of fines and number of significant sanctions for violation of economic and social laws and regulations.

17-20 In 2017, the legal dispute was definitively closed, which in 2006 had involved the management of Fastweb and Telecom Italia Sparkle in the investigation into the so-called “carousel fraud”. On 27 September 2017, in fact, the Court of Appeal of Rome, Section I of the Criminal Court, upheld the sentence of acquittal with ample formula from all the crimes alleged against the defendants involved. It should be noted that since the first levels of judgment there has not been a direct involvement of the company, since the responsibilities have been attributed only to individual executives and managers

http://www.fastweb.it/adsl-fibra-ottica/qualita-e-cards-services

http://www.fastweb.it/adsl-fibra-ottica/qualita-e-cards-services


Administrative bodies In this document, the term “Administrative Bodies” shall mean the Management Board and the Board of Directors.

Alternative operator Alternative telecommunications provider to TIM, the former incumbent carrier in Italy.

Broadband services Services provided with a transmission speed of at least 2 Mbit/s. According to international standards, these services are broken down into two categories:

Interactive services, including video-phoning/ video-conferencing (point-to-point and multipoint), video- monitoring, interconnection of local networks; filetransfer,CAD,high-speedfaxtransfer,e-mailwithmoving images or shared documents, broadband video- text, on-demand videos, recovery of audio programmesoroffixedandmovingimages;

Broadband services, such as audio programs, television programs (including high-resolution TV and pay-TV) and selective acquisition of documents.

CPE Customer Premises Equipment, i.e. electronic device used as a user terminal (ex. MODEM), which allowsconnectiontothelocalvoiceanddatatrafficnetwork.

Digital This is a mode of representing a physical variable with a language that uses only the digits 0 and 1. The digits are transmitted in binary form as a series of pulses. Digital networks are rapidly replacing the outdated analogue networks; they enable increased capacity and more flexibility through the use of computer-based technology for transmitting and handling calls. Digital systems offer less noise interference and can also incorporate encryption as security against external interference.

Direct emissions Emissions generated by sources that the organization owns or controls (ex. emissions from mobilityandofficeheating).

Direct energy consumption Consumption of primary energy sources (natural gas, fuel etc.) in areas that the organization owns or controls. An example of this is the consumption of natural gas to operate heating systems installed in the organization’s facilities.

Fiber OpticsThinstrands(fiber)ofglassorplasticforming the infrastructure base for data transmission. Afibercablecontainsanumberofindividualfibers,each one of which can transmit the signal (light waves) at a practically unlimited bandwidth. They are mainly used for long-distance transmissions to transfer large amounts of data, because signals travel along them with less loss and are also immune to

electromagnetic interference. Fiber optic cables can carry a lot more data than traditional cables and copper wires. They come in the form of flexible cables and are immune to electrical interference as well as extreme weather conditions; they are also not over-sensitive to temperature variations. The diameter of the cladding is usually 125 micrometers (about the size of a human hair), and they are very light: one kilometer of optical fiberweighslessthan2kg,withoutconsideringthesheathprotectingit.Fiberopticsareclassifiedasdielectric waveguides. In other words, they can transfer andconductanelectromagneticfieldofsufficientlyhigh frequency (in general, close to infrared) with extremely limited loss. They are commonly used in telecommunications to transmit optic signals also over long distances, on transport network, and in the supply of cabled broadband access (from 100 Mbit/s to Tbit/s usingthemostrefinedWDMtechnologies).

GPON (Gigabit Passive Optical Network) FTTH network architectureinwhichfiberopticsarrivesinsidethe customer’s home. It allows for extremely high performance, superior to 1 Gbit/s. The GPON network usespassive“splitters”tosubdividethefiberrepeatedlyand to direct it towards various buildings, thus reducing theamountoffiberandnecessaryapparatuswithrespect to other FTTH architecture used in the past. The passive nature of the GPON network allows for the elimination of “active” network elements in the access network (which are therefore limited to the base and in the customers’ homes), reducing the use of electricity andincreasingefficiencyforanenergystandpoint.

ICT (Information and Communication(s) Technology) Set of methods and technologies used for manufacturing the transmission, reception and processing of information and data.

Indirect emissions Emissions that are the result of the organization’s activities, but that are generated by sources owned or controlled by other organizations (ex. emissions originating from the generation of energy consumed).

Indirect energy consumption Consumption of primary energy sources (coal, natural gas, fossil fuels etc.) in areas that the organization does not own or control. An example of this is the consumption of electricity purchased from a supplier company, which uses primary energy sources in its own facilities in order to generate electricity.

IP (Internet Protocol) Set of communication standards used to exchange data on the Internet. This network interconnection protocol (Inter-Networking Protocol) is classifiedatnetworklayer(3)ofISO/OSImodel,createdto interconnect heterogeneous networks for technology, performance, management, therefore implemented

GLOSSARYabove other connection protocols, like Ethernet or ATM. It is a connectionless and best-effort delivery service and therefore does not guarantee reliability of communication in terms of error control, flow control and congestion control, which are handled by the higher transport layer (level 4) transfer protocols, such as TCP. The currently adopted version of the IP protocol is also called IPv4 to distinguish it from the more recent IPv6, developed to deal with the growing number of computers.

Local Loop Pair of twisted copper wires that physically connects a customer’s premises to the telephone company’s exchange; it is the traditional basis of telephone lines and is also referred to as the “last mile”.

Mobile Virtual Network Operator (MVNO) A Mobile Virtual Network Operator (MVNO) is a mobile telephone services provider that uses the network infrastructure of another operator to provide services to its customers. An MVNO is a telephone services provider (with its own SIM cards, prepaid and/or subscription promotions, customer care and management) that does not have its own network infrastructure.

Multimedia Service involving two or more communications media (e.g. voice, video, text etc.) and hybrid products generated through their interaction.

Network A set of connected elements. In a telephone network, these elements consist of switches connected to one another and to the customer’s equipment. The transmissionequipmentmaybeformedoffiberopticor metal cables or by point-to-point radio connections.

NGN (Next Generation Network) A packet-based network created to meet the needs of industry, public administration and the general public.

Platform The whole set of input, including hardware, software, operating equipment and procedures, used to produce (production platform) or manage (management platform) a particular service (service platform).

SOHO Small Office / Home office (SOHO) Market consisting of small businesses that use telephone lines for Internet connections instead of dedicated lines. They consist of small businesses, generally with one or two employees, and businesses run from home.

Ultra-fast broadband The term “broadband” refers to a transmission scheme where multiple signals share thebandwidthofasinglemedium(usuallyfiberoptics,more rarely over the air or metal cable), allowing more information to be transmitted simultaneously and more rapidly. Ultra-fast broadband is the term used when the transmission speed exceeds 30 Mbps.

UMTS (Universal Mobile Telecommunications System) The third generation mobile communications standard. It consists of a broadband transmission system which supports data transfer rates over a bandwidth of 2Mb/s, ensuring faster, better quality telecommunications, and multimedia transfer.

User Experience User experience refers to a person’s behaviors, attitudes and emotions about using a particular product, system or service. User experience includes the practical, experiential, affective meaningful and valuable aspects of human-product interaction and product ownership. Additionally, it includes a person’s perceptions of system aspects such asutility,easeofuseandefficiency.Itmaybeconsidered subjective in nature to the degree that it is about individual perception and thought with the respect to the system, user experience is also dynamic asitisconstantlymodifiedovertimeduetochangingusage circumstances.

VDSL (Very - high – data – rate Digital Subscriber Line) Access technology that can be used to provide the customer voice and TV services on the traditional copper telephone lines at downstream speeds of up to 50Mbpsusingaspecifichome-installeddevice.

VoIP (Voice Over IP) A technology for the delivery of voice communications over the public Internet or other dedicated Internet Protocol networks, rather than via the public switched telephone network (PSTN). The termVoIPspecificallyreferstothesetofapplicationlayer communication protocols that make that kind of communication possible. Numerous VoIP providers mean it is also possible to make telephone calls to the traditional PSTN. In actual fact, more generally VoIP enables real-time, unicast or multicast audiovisual communications on network packets (e.g. video-telephony, videophone service and video-conferences). The main advantage of this technology is that it eliminates the need to reserve bandwidth for each phone call (circuit-switching), exploiting the dynamic resource allocation typical of IP protocols (packet switching). The voice signals are digitized, encoded and routed on data packets only when needed, i.e. when one of the connected users is talking.

Fastweb S.p.A.Via Caracciolo, 51 - 20155 Milano – (ITALIA)

www.fastweb.it/corporateFeedback, queries or comments:

[email protected]

Pubblication: march 2018

Thanks to all the colleagues who have taken part in the realization of this Sustainability Report, contributing to Fastweb’s effort to make digitalization and the spread of digital skills a real driver of change, of

economic growth of the Country and of social inclusion.

sustainability report - fastweb.it · smart working initiative, the new paradigm is that o working...

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