AT THE SPEED OF IDEAS

Transcription

1 AT THE SPEED OF IDEAS Shareholders Newsletter Edition # 6 September 2012 One flew over the cornfield Distance record for a drone piloted using a smartphone 4G/LTE innovative applications for civil drones. Since the beginning of time, man has never stopped dreaming of being able to fly like a bird. After realizing this was impossible, he took to creating ever-more outlandish inventions to make his dream come true. [ ] The drone was initially used for civil and military applications, but fewer consumer versions toys for adults could be found on the market. Parrot, the French company famed for its automotive and multimedia products, launched into action with its AR.Drone in The concept was simple: a drone quadricopter equipped with two cameras and controlled using Wi-Fi from your smartphone. Over 250,000 models of this toy have been sold worldwide. It s a great toy and is easy to pilot, albeit within a certain range. In fact, Wi-Fi has a limited range (less than 100 meters), and depending on the environment, can stop working. All it took was the Alcatel-Lucent engineers, the prototypers of the Bell Labs Acceleration Platform and the engineers from Parrot to get together to discuss a proof of concept for piloting an AR.Drone using 4G/LTE. Our goal? To be able to fly further than the limited Wi-Fi range of 100 meters and to enjoy the high speeds of the 4G/LTE network for transmitting HD video streams from the AR.Drone to your smartphone. Large distances can mean that the pilot may lose sight of the drone. If this happens, the live video link on the smartphone s screen will help the pilot to guide the AR.Drone back home. It s easy to understand why the 4G/LTE network is used its excellent latency means the response time of the drone is practically immediate. More about AR.Drone New Operating Model Alcatel-Lucent executes Performance Program with focus on core products Company strengthens operating model, unveiling new Business Group, global sales organization and leadership team to deliver corporate turnaround. Page 3 FINANCIAL RESULTS Company launches The Performance Program to achieve additional Euro 750 million in cost reductions, bringing total savings to Euro 1.25 billion by the end of Page 2 HIGHLIGHTS Sprint to leverage Alcatel- Lucent s lightradio to bring high-capacity 4G LTE mobile broadband coverage and speeds to busy public locations. Page 2 DJSI ranks Alcatel-Lucent leader of Technology Supersector INNOVATION New First Responder Video solution using lightning-fast 4G LTE. Page 4 SHAREHOLDER S CORNER All usefull information related to your company Page 5 For the 2 nd year in a row, Alcatel-Lucent is recognized in Dow Jones Sustainability Index, ranking 1 st among Technology Supersector companies for Read the press release

2 SECOND QUARTER 2012 RESULTS Key Figures 2 nd Quarter 2012 Company launches The Performance Program to achieve additional Euro 750 million in cost reductions, bringing total Total Revenue savings to Euro 1.25 billion by the end of ,545 M Additional global headcount reductions of around The second quarter performance confirms our strong positions in Adjusted (2) operating loss (1) 31 M Operating cash-flow (3) (184) M many attractive market Net cash segments including IP, Next- 236 M Generation Optics and Broadband Access, all of which are key investment areas that support our High Leverage Network Strategy. However, despite having demonstrated our ability to deliver operational profitability, it is clear from the deteriorating macro environment and the competitive pricing environment in certain regions challenging profitability that we must embark on a more aggressive transformation. We are therefore launching today The Performance Program to accelerate our transformation and reduce costs by Euro 1.25 billion by the end of next year in order to keep ahead of market realities. These times demand firm actions. Since 2009, we have focused on building some very good and profitable businesses aligned with many of the largest carriers in the world. These customers not only depend upon us for critical infrastructure today but have aligned with our future vision of the network. We will continue to invest in these core areas and geographies aggressively. [ ] These times demand firm actions, but as this will involve shrinking our employee base and exiting certain non-profitable contracts we will use The Performance Program to executeinameasuredfashion.however we are taking aggressive action that will improve our agility in the marketplace while remaining fully committed to both our customers and continuing to deliver world-class innovation. > Link: read all information on Second Quarter 2012 Results HIGHLIGHTS Ben Verwaayen Chief Executive Officer (1) (2) (3) Please refer to the 2 nd Quarter press release Q Revenues Geographical Breakdown ~16% Asia Pacific ~18% ~14% North America ~39% Europe ~27% Q Revenues Geographical Breakdown Asia Pacific ~17% Europe ~29% North America ~40% Paris, September 18, 2012 Alcatel-Lucent ensures safe, efficient travel on high-speed Spanish rail line. Paris, September 13, 2012 Telefónica awards Alcatel-Lucent landmark contract to transform its global network management systems. Paris, August 6, 2012 Sprint to leverage Alcatel-Lucent s lightradio to bring highcapacity 4G LTE mobile broadband coverage and speeds to busy public locations. Paris, July 24, 2012 Alcatel-Lucent and the Technip Samsung Consortium help ensure efficiency and safety on the world s first floating liquefied natural gas facility. Paris, July 3, 2012 Alcatel-Lucent enables Belgacom to deliver personalized mobile broadband service plans, giving customers more control over their spending. 2 Shareholders Newsletter Edition # 6 September 2012

3 ? On September 10, 2012 Alcatel-Lucent unveiled a new operating model focused on core products, a strengthened sales organization and reshaped corporate functions to deliver the Company s Performance Program; the strategic initiative announced on July 26 to generate Euro 1.25 billion of cost savings by the end of Ben Verwaayen, Chief Executive Officer, said: In today's markets it makes sense to play to your strengths. Alcatel-Lucent s leadership in core networking, reflects our innovation excellence and long-standing customer relationships. The objective of the new operating structure is to strengthen Alcatel-Lucent s presence in key telecommunications products and services through a unified business group. A streamlined ExecutiveCommitteewilloverseethesimplified business model, with a newly-appointed Chief Operating Officer focused on executing operational improvements. This announcement simplifies our operating model and puts our Performance Program at the forefront of our 2013 objectives." Benefits of the program and new operating structure will enable Alcatel-Lucent to: Focus on profitable markets and customers around the world Optimize tendering and sales in a single global sales organization Accelerate pace of transformation Maintain strong innovation engine with continued R&D investment Manage patent portfolio as a dedicated profit center Concentrate on higher value-added contracts in Managed Services Simplify management layers across the company To achieve these outcomes, the following changes will come into effect from January 1, 2013: Paul Tufano becomes Chief Operating Officer, with worldwide responsibility for Supply Chain, Procurement and three individual focused businesses (Enterprise, Strategic Industries and Submarine), in addition to his current role as Chief Financial Officer. Robert Vrij becomes President Global Sales & Marketing, leading a single global sales organization to oversee and manage all customerfacing commercial relationships. Stephen A. Carter becomes President Managed Services & EVP Corporate Restructuring; overseeing the Performance Program and Corporate Marketing & Corporate Communications. Philippe Keryer becomes President of Networks & Platforms. This worldwide business group will replace the existing regional operating structure with four global product & services business units, each with full P&L responsibility, comprising: i. Core Networks, leveraging global leadership in IP and Optics; IP and Optics will be placed under the management of Basil Alwan leveraging Alcatel-Lucent s leadership position in both of these fast growing markets. ii. Fixed Networks, investing further in the Company s leadership position in this market and the synergies with Small Cell deployment. iii. Wireless, focusingonservingourexistingcustomerbaseinnorth America, China and EMEA. iv. Platforms, evolving the Company s High Leverage Network capabilities into unified software platforms for control, optimization and network analytics. George Nazi remains President of the previously created Global Customer Delivery division. Jeong Kim remains President of Bell Labs and Chief Strategy Officer and will be responsible for the Company s patents assets/portfolio. In addition to the above, due to the Company s unique position in the Chinese market through the Alcatel-Lucent Shanghai Bell (ASB) joint venture, Rajeev Singh-Molares, working with the chairman of ASB, will take on a dedicated role focusing on the transformation and development of our commercial operations in China. All back-office and business support functions will be part of a new central administrative system for greater efficiency. Commenting on the new operating model, Ben Verwaayen added: The Performance Program announced on July 26 is the spearhead of these changes. We are putting in place a simple, robust delivery mechanism for the company to ensure that Alcatel-Lucent meets its target of a total cost saving of Euro 1.25 billion by the end of next year. We will engage with our employee representatives wherever required by law, through discussions or consultations, before we finalize and then implement this new operating model. Subject to the completion of this process, our new organization will become effective on January 1, > Link: more information on 3 Shareholders Newsletter Edition # 6 September 2012

4 INNOVATION New First Responder Video solution using lightning-fast 4G LTE. New First Responder Video solution provides mission-critical information on handheld devices to fire, police and ambulance services to strengthen responsiveness, safety, teamwork and cost efficiency. Alcatel-Lucent is to provide first response emergency teams the ability to view and rapidly share multiple video and data feeds simultaneously on mobile devices. For the first time, fire, ambulance and police teams will be able to share critical emergency situation information with operation controllers via video and data streams - thanks to Alcatel-Lucent s First Responder Video solution. Building on Bell Labs research in multimedia and cloud, the First Responder Video utilises 4G LTE mobile broadband networks to convey real-time video and information rapidly and cost-efficiently. As urban populations continue to grow, adding new pressures to first responders as well as extra budgetary challenges, public or privately owned 4G LTE networks have become highly viable in delivering video and data capabilities to emergency services. Teamwork and safety can be improved, as LTE communication offers improved situational awareness in responding to an event. However, greater urbanization alsomeansmorepeopleinanurban environment using smartphones and other high-bandwidth devices and applications, stretching the capacity of a mobile broadband network. Alcatel-Lucent s First Responder Video solves this issue by optimizing bandwidth use and integrating multiple video feeds and other operational data into one single stream to transmit to situation commanders. This enables the fast delivery of bandwidthhungry gyvideo and data among teams, allowing them to intelligently assess and respond to a situation more effectively, without compromising the overall delivery speed or quality of the LTE network. Philippe Agard, Vice President of Public Safety, Alcatel-Lucent said: Alcatel-Lucent s First Responder Video capitalizes on our leading capabilities and expertise in mobile broadband solutions to deliver real efficiencies for public safety agencies. The solution has seen great results in a live end-to-end trial with the Polícia Militar do Estado de São Paulo, Brazil, allowing teams to be sent views from in-car cameras. Easy-to-use screens enhance operations in the toughest environments and the ability to maximize available bandwidth to share multiple high-quality video images on a variety of mobile devices maximizes cost of ownership at a time when budgets are being stretched. First Responder Video employs a thin client strategy, which ensures that data processing takes place at the powerful control centers to free up the device itself to focus on receiving and sending images and data. It works seamlessly with existing control center dispatch applications and allowsteamstosendvideoand data to many different types of smart mobile devices at the same time. This gives agencies the freedom to adopt a mobile device suitable to them or use existing compatible devices to maximise investments. Teams can adjust the number of video and data views as well as the screen layout, so information is delivered in a way that is appropriate to the situation as well as meaningful in relation to the size of the device. Agencies can also allow first responder staff to share their own videos of a situation and team members can further customize their views by panning or zooming the video views to find out more about a situation. Alcatel-Lucent and Public safety To meet the needs of first responders, Alcatel-Lucent acts as the end-to-end system integrator to design, integrate, deploy, operate and maintain robust, resilient communication solutions. Alcatel-Lucent understands public safety requirements and brings to each project its accumulated expertise in the customization of mission-critical communications systems. A broad product portfolio provides mission-critical network solutions that reliably and efficiently interconnects all types of fixed and mobile communication networks, and provides LTE for public safety mobile broadband. Alcatel-Lucent s solutions are effectively running in multiple mission-critical Public Safety networks around the world. An example of First Responder Video in use: the state police (Polícia Militar do Estado) in São Paulo, Brazil, have conducted an end-to-end field trial with the system installed in their vehicles. Click here to see the video. 4 Shareholders Newsletter Edition # 6 September 2012

5 SHAREHOLDER S CORNER STOCK MARKET Share price from April 2, 2012 to September 28, 2012 (on a comparative basis) SHAREHOLDER PROFILE BREAKDOWN OF THE CAPITAL BY TYPE OF SHAREHOLDER Company-related holding 4 % Alcatel-Lucent CAC , Institutional 65 % Retail 31 % Source : Alcatel-Lucent 2011 Annual Report on Form 20-F 50 BREAKDOWN OF THE CAPITAL BY LOCATION OF RECORD OWNER 40 02/04/ /04/ /04/ /04/ /04/ /05/ /05/ /05/ /05/ /06/ /06/ /06/ /06/ /07/ /07/ /07/ /07/ /07/2012 COMPANY FACT SHEET Capital: 4,653,127,652 Traded on: Euronext Paris et New York Stock Exchange (NYSE) Index: CAC 40 ISIN Code: FR Shares Outstanding: 2.3 billion 06/08/ /08/ /08/ /08/ /09/ /09/ /09/ /09/2012 Employees: 76,000 Revenues (2011) : 15.3 billion North America (USA & Canada) 43% 5 % UK & Ireland 8 % France 30 % Continentale Europe (excl. France) 14 % Source : Alcatel-Lucent 2011 Annual Report on Form 20-F EVENTS November 2, 2012: Third Quarter 2012 Results February 8, 2013: Fourth Quarter and Full Year 2012 Results April 26, 2013: First Quarter 2013 Results May 7, 2013: Annual General Meeting DEPOSITARY BANK FOR REGISTERED ORDINARY SHARES If you have questions about your Alcatel-Lucent ordinary shares, please contact our representative BNP Paribas Securities Services (located in Pantin, France) either by: Internet website Planetshares (former GISnomi) Phone, via our call center BNP Paribas: (fax) CONTACT US Call Center From France: From other countries : +33 (0) Alcatel-Lucent website Design & production: emjipe Writing Alcatel-Lucent Picture credits: Alcatel-Lucent Data as of September 28, COPYRIGHT 2012 ALCATEL-LUCENT finance@alcatel-lucent.com Postal Address Alcatel-Lucent l t Investor Relations 3, avenue Octave Gréard Paris France Shareholders Newsletter Edition # 6 September