TDC Group Annual Report 2011(6,4MB) - TDC Annual Report 2011

During 2011, numerous initiatives were carried out,
including:
• Four potential outsourcing activities were identified
during H1 2011. By the end of 2011, three external
initiatives had been carried out or decided on –
outsourcing of shared services in Finance to India,
outsourcing of mobile repair activities in Supply &
Logistics to Danish partners, and in early October 2011,
Operations also announced that activities regarding the
building of fibre networks will be outsourced to the
consortium ‘Fiber & Anlæg’, which will take over
operation of TDC´s fibre network in February 2012.
These initiatives will affect approximately 260
employees. The fourth initiative resulted in building a
strong in-house case in the Run division of Operations
following negotiations with the unions, leveraging on
productivity gains and cost reductions.
• A project was carried out in order to optimise the fibre
delivery process by reducing the order lead time and
delivery precision. In addition to this, delivery times have
been differentiated in order to reflect the varying
complexity and scale of orders. These efforts have
produced positive results, as delivery times have
improved by 23% from 2010 to 2011 while delivery
precision has increased from an average of 80% to 85%.
• Operations continued the work on simplifying the
product portfolio to reduce complexity in processes,
systems and platforms.
• Through TPM (Technical Product Management), all new
product development projects are monitored and
optimised throughout TDC’s organisation to secure
effective production when launched.
TDC 2.0
As a means of continually improving profitability, customer
satisfaction and employee satisfaction, TDC is rolling out a
major transformation programme, TDC 2.0, across the
Company. TDC 2.0 addresses the daily work routines of
each team with a focus on better operational planning,
more effective performance management, building a lean
culture, and making management more visible to
employees.
TDC Group Annual Report 2011
Financial highlights
Operations & HQ 2011 2010 Change in %
DKKm
Revenue
Transmission costs and
287 323 (11.1)
cost of goods sold (66) (83) 20.5
Gross profit 221 240 (7.9)
External expenses
Wages, salaries and
(2,061) (2,232) 7.7
pension costs
Operating expenses
allocated to other
(1,480) (1,619) 8.6
business divisions
Other income and
2,852 3,144 (9.3)
expenses
EBITDA before pension
174 193 (9.8)
income (294) (274) (7.3)
Pension income 438 435 0.7
EBITDA 144 161 (10.6)
Organic revenue DKKm 287 323 (11.1)
Organic EBITDA¹ DKKm 143 163 (12.3)
¹ Reported EBITDA excluding impact from sale of property, plant and equipment
as well as acquisitions and divestments.
Selected operational data
Operations & HQ
31 Dec.
2011
31 Dec.
2010 Change in %
KPI
Faults correction time
Hours
('000) 727 748 (2.8)
Active IT applications # 486 553 (12.1)
Image (ECSI) 2 Customer Satisfaction
Index 66 65 -
(KundeBarometer) 2 Unacceptable customer
Index 72 71 -
experiences 2,3 Index 64 75 -
FTEs
Number of FTEs (EoY) 3,596 4,113 (12.6)
Average number of FTEs 3,860 4,369 (11.7)
² KPI includes TDC Group
³ Q1 2009 = Index 100, A lower index equals a more positive customer
experience.
In 2011, the programme was introduced in Operations,
where altogether approximately 900 employees were
included in the transformation by year end. Initial results of
the transformation in Operations confirmed that full
implementation of TDC 2.0 holds significant potential for
efficiency improvement and will be an important lever for
future efficiency improvements.
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