A further milestone on the road to One Company: Shareholders have approved the creation of the new Germany company by transferring fixed-network business in Germany to T-Mobile Deutschland GmbH.
After about six hours, the result of the extraordinary shareholders meeting in Hanover was clear, with 99.95 percent approving the Spin-off and Take-over Agreement with which DT transfers the business area T-Home to T-Mobile Deutschland GmbH.
The vote is an important precondition for the launch of the new Germany company next year. The meeting in the TUI Arena was opened by Ulrich Lehner as Chairman of the Supervisory Board at 10.00 am. Obermann stressed the advantages of the planned German company: "We will be reinforcing customer service, we will be safeguarding jobs, and we will be tapping the potential for additional revenue and cost synergies. We expect the spin-off to have a positive impact on earnings of around 600 million euros per year in the medium term." Obermann added: "At the same time, we will be avoiding unnecessary duplication in our work and overcoming the damaging silo mentality thanks to the shared responsibility for business in Germany."
The aim of the restructuring is to bring together the Group's domestic fixed-network business and its domestic mobile business within a new Germany company. Obermann explained: "The merger of the two business areas is not the only element, but certainly a key element in our response to the most important challenge facing our industry: How can we operate effectively in our fiercely competitive domestic market while developing growth initiatives at the same time? I am sure of the answer: Only with a better customer service, more innovation and at the same time more efficiency."
An important One Company milestone
Integration of fixed-network and mobile business in Germany is a significant part of the One Company project, which is to create the foundation for DT's future development. "For three years we have been pursuing our successful 'Focus, fix and grow' strategy - One Company is a crucial interim stage in this", said Obermann. "We are taking this milestone as an opportunity to review how we are going to develop our strategy further. We intend to complete this review by the end of the first quarter 2010."
To illustrate the dimension of the move, Obermann gave the audience a few figures regarding to the new Germany company: "We are talking about a total revenue of about 26 billion euros and EBITDA of about ten billion euros in 2008. The new company would be responsible for what at present are almost 27 million fixed-network lines of which some 13 million support DSL and more than 39 million mobile lines. In total, just under 85,000 employees work in this segment."