Procedure for compiling information

The report contains information on Corporate Responsibility economic, environmental and social development of 17 different countries.

Telefónica introduced an online system for the coordination of corporate information. This system stores the information from each of the corporate systems and allows analysis for each of the countries in which the activities. The launch of this corporate system helps to meet the recommendation for improving the verification of the Report; "strengthen the systems in place to manage the traceability of data." Following this recommendation, all of our operations during 2008 from Spain, Europe and Latin America have reported the information required for this report through this system.

To the source of information for each chapter of this report online RC 2008:

• Economic and financial. It comes from the same sources that produce the information included in the Annual Report to shareholders and investors. With this information, the scope for all members of the group, as reflected in financial reporting.


• Corporate governance and shareholders comes from the same sources that produce the information included in the Annual Report to shareholders and investors. With this information, the perimeter for the Telefónica Group.


• Innovation is consolidated through the corporate area of Innovation in Telefónica SA, in collaboration with Telefónica I + D. The data source of investment in innovation comes from the systems are consolidated and purchases without applying any criteria of proportionality. As economic data, the perimeter corresponding to the information economy.


• Customers come from their own quality control systems and operations of Telefónica España, Telefónica Latinoamérica and Telefónica Europe. The information is presented for each individual transaction, and if the event occurs at some consolidation is performed using income as a factor of proportionality.


• Employees of appropriate management systems, Human Resources, and in this report uses the concept of people, rather than the employee's equivalent most often used in financial reporting. In cases where information is consolidated using the number of employees as a factor of proportionality. This chapter includes the entire economics of the Telefónica Group.


• Environment is from the areas of environmental or quality of each of the countries. Such information is received via online questionnaires that are available for different companies and countries through a tool and is consolidated by simple sum. This chapter includes all fixed and mobile operators the perimeter of the Telefónica Group. Does not include T-handles and Atento.


• Supplier comes directly from the system of awarding contracts through the shopping areas. The consolidation of information is performed without applying any criteria of proportionality as a factor, presenting information by country or business lines. This chapter includes the entire economics of the Telefónica Group.


• EInclusion comes from the quality control systems, operations and regulation of Telefónica España, Telefónica Latinoamérica and Telefónica Europe. Also included in the perimeter and Telefonica R & D initiatives that promote Fundación Telefónica inclusion in society.


• Social action comes from Fundación Telefónica, ATAM units and sponsorships of Telefónica Spain, Telefónica Europe and Telefónica Latinoamérica. The only consolidated data are economic, that are added by simple addition.


• In preparing the report are published in the news media inside the company. It is believed that all information could be communicated in the reports of corporate responsibility must have been communicated to employees, ensuring that the information is relevant.