Danske Bank Winter Seminar

Transcription

1 Danske Bank Winter Seminar TDC Business and the ICT business market December 2nd 2014 Jens Munch-Hansen, CEO TDC Business 1

2 TDC Business consists of three strong brands The operator Communication solutions: Landline and mobile telephony Internet Integrated communication solutions (unified communication) The hosting specialist IT outsourcing and hosting: Managed hosting Cloud hosting Consultant services Software as a Service (SaaS) The integrator Customer-specific communication solutions: Networks and security Data centre Integrated communication solutions (unified communication) 2

3 together covering the full needs for IT and telecom solutions as the only Danish ICT provider Traditional telecom services Traditional IT services Connectivity Communication IT services Applications LAN WAN Voice UCC Call transfer Call centre Data centre Desktop Applications 3

4 TDC Business strategy is focused on seamlessly integrated business solutions Call transfer, call centre and call management Telephony and mobility IaaS, access, network, security One single supplier for a complete solution that covers the company s telecom and IT needs TDC takes end-to-end responsibility for the solution 100% cloud-based Unified communication & collaboration LAN, Desktop, CPE Predictable costs Scalable solutions with payment per user/location Online configuration and selfservice Web collaboration and self-service SaaS/applications 4

5 and the solution build for Transcom is a good example of this: Transcom, the largest debt collection company in Denmark, has chosen to outsource all IT, telephony and network to TDC Business creating one integrated solution managed by TDC Outsourcing of all Transcom s servers to TDC Hosting Run on a private cloud solution TDC Hosting manages ongoing update and maintenance of the hardware Telephony solution for call center with 80 employees Based on new Cisco solution, with possibilities for queue programming, surveys, call switching, chat with more Hosting of internal wireless network Wireless-as-a-Service (WaaS) Mobile telephony integrated with call center solution Internet connection with MPLS, via 250Mbit fiber 5

6 TDC Business is dominating the market 73% of all Danish companies are customers at TDC Business TDC Business share of Danish companies and TDC Business are the market leader within all main operator product areas Operator market size 1 (# of subs., 000); TDC Business market position; Sep 14 # % #1 478 #1 366 #1 451 #1 309 #1 32 % of Danish companies that are customers at TDC Business Landline VoIP Mobile Mobile Broadband Broadband Fiber 1) TDC estimates of market size 6

7 but as other telcos, TDC Business is under price pressure leading to declining revenue Fierce competition and price pressure has led to falling revenue for TDC Business TDC Business revenue, DKKm but a strict focus on efficiency and cost savings have sustained a high EBITDA margin TDC Business EBITDA margin, % -7,2% +2,6%pt ,2% 69,8% ,1% -0,3%pt ,8% 69,5% Q1-Q3 13 Q1-Q3 14 Q1-Q3 13 Q1-Q3 14 7

8 The growth is in the integrator and hosting markets as the operator market continues the decline Submarkets of Danish ICT market (DKKm) 1 CAGR Integrator market +4,2% 2012A 2013A 2014E 2015E 2016E 2017E ,1% +25,7% Hosting market ,1% 2012A 2013A 2014E 2015E 2016E 2017E Cloud (SaaS & IaaS) Outsourcing Operator market -1,3% 2012A 2013A 2014E 2015E 2016E 2017E 1) Source IDC Integrator market: Enterprise network and comm. Equipment, Collaboration & CRM applications, Security products, Network Lifecycle Services Hosting market: ud (SaaS & IaaS), Outsourcing Operator market: Fixed voice and data, Mobile voice and data 8

9 The competitor landscape is becoming more and more fragmented with new players entering Market Business unit Traditional competitors New players Integrator market Hosting market Operator market 9

10 TDC Business is working with five customer segments in the market Entrepreneurs Business Corporate Enterprise Public Number of companies in segment Total number of employees per segment Share of TDC Business revenue on segments TDC Business revenue pr. segment October 2014 YTD Public Enterprise Entrepreneurs Business Corporate Typically contract length and price adjustments Typically on 3 year standard contracts with 2 options for renewal 1 year each Yearly index regulation 2 on selected products Typically on 3 year standard contracts with 2 options for renewal 1 year each Yearly index regulation 2 on selected products (some customers are exempted) Some customers have fixed prices that cant be adjusted, pre-defined yearly price adjustments or yearly adjustments according to a benchmark 1) Excluding SOHO segment (small office/home office) 2) Based on consumer price index, minimum 2% 10

11 TDC Business have recently introduced a new GTM-model, optimizing the handling of the five customer segments New go-tomarket model with focus on future potential Adapted organization to fit the customers needs Optimized channel strategy Focus on growth areas going forward Focus on all of TDC s market potential as well as how to realize the potential Focus on the customers needs both in terms of demand and buying behavior Streamlined organization with joint goals Use of TDC Channels New setup for TDC Partner and full utilization of TDC Butik Strategic acquisitions close to core Focus on unified communication, IT security and cloud outsourcing 11

12 We see some risks in the market that we are addressing Price pressure Intense price pressure in all segments Roaming regulation Roaming prices in EU have continuously been lowered the last couple of years, driving down roaming revenues SKI contracts Increasing price pressure on SKI 1 contracts Lost two SKI tenders (broadband and part of mobile and fixed line tender) Small niche players Competition from small specialized IP telephony players, especially in lower segments 1) Statens og Kommunernes Indkøbs Service 12

13 but also a range of interesting possibilities and trends Integrated IT and communication solutions Unified communication IT security Customers expecting complete business solutions covering communication, network and IT solutions Migration from fragmented legacy systems to IP based communications systems enabling unified communication Increasing focus on the need for IT security as more and more critical systems become integrated and online Cloud outsourcing Migration from company placed servers to placed in the cloud Open networks Increasing openness of networks via partnerships across internet providers 13