strategy 2010 annual general meeting 4 march 2010 henrik poulsen

Strategy 2010

Annual General Meeting4 March 2010

Henrik Poulsen

TDC Annual General Meeting

2

TDC has a clear ambition

Ambition

TDC aspires to become the best performing incumbent telecom player in Europe measured on customer satisfaction, value creation and employee pride


3

TDC has 7 priorities for 2010

1. Customer experienceand retention

2. Profitable growth pockets

3. Go-to-marketefficiency

Strategy2010

5. World-classoperations

6. Cost & cash discipline

7. Winning culture

4. Brand & technology platforms


4

1. Customer experience and retention• 8,6m customer relations in Denmark

• Fullrate and Telmore have the highest customer satisfaction score compared to peers

• TDC is performing well, yet there is room for improvement

• Considerable transformation program have been initiated

• Improved customer communication• New IT tools• Reduce number of faults• Expand customer culture

• Unacceptable customer experience shall be considerably reduced – and progress is made


5

2. Profitable growth pockets

• Price decrease within telephony and broadband, reduced termination rates and migration away from traditional landline telephony

• 10 specific growth pockets shall stabilize the Nordic revenue, e.g.:

• Mobile data• Digital TV• Nordic business segment• Fullrate and Telmore

• Open towards smaller acquisitions that fit well into the existing business and create value

• We expect stabilization of the Nordic revenue in 2010 already - an important milestone for TDC


6

3. Go-to-market efficiency

• Strong sales channels within both consumer and business market

• Fullrate and Telmore are among Europe’s best online based telecommunication businesses

• Improve sales and service via TDC online

• Strengthen distribution to small and medium-size companies

• Improve sales efficiency in the Business division


7

4. Brand- and technology platforms

• From ”single brand” to ”multi brand”

• Non-TDC brands represent an increasing share of the revenue

• Expand infrastructure and technology platforms

• 50 Mbit/s on copper infrastructure via VDSL

• 100 Mbit/s on cable infrastructure via Docsis 3.0

• Fiber-to-the-home• Turbo 3G mobile infrastructure and

LTE license• Nordic fiber infrastructure

• TDC remains the backbone in a Danish communication society in international top class


8

5. World-class operations

• Continuously improve efficiency and quality of processes, products and IT systems

• Reduce product fault rates

• Upgrade IT platforms with a focus on improved customer experience

• Reduce the number of products

• Freeze and phase out IT systems

• Next wave of procurement savings


9

6. Cost & cash discipline

• Costs in the Nordic business have been reduced by DKK 2+bn within the last 2 years

• Working capital has been improved by DKK 2+ bn

• Continue efficiency programs and cost savings

• Maintain strong cash flow control

• Attractive return to shareholders


10

7. Winning Culture

• 13,000 dedicated and talented employees

• Invest in talent development

• Focus on quality of management

• Programs for talents and experts

• Continued focus on diversity management

• Employee satisfaction score increased from 73 in 2008 to 76 in 2009

strategy 2010 annual general meeting 4 march 2010 henrik poulsen

Documents