A1 Telekom Austria Controlling (Learning-) Transformation 13th May 2019, Helmut Hotter A1 Controlling Learning Transformation AGENDA A1 Group & Austria A1 Controlling Austria Why? Who we are The right context Our core beliefs How? What? Discussion & Questions Empowering Constant Learning #CoLeCo, Workplace, Chatbot Your turn! Austria │ Helmut Hotter │ A1 Controlling Learning Transformation 2 Group Overview Group Overview Shareholder Structure Listed on the Vienna Stock Exchange since Shareholder Structure* November 2000. América Móvil (direct and indirect) 51 % Free Float . ÖBAG (Republic of Austria) 28.42 % 21% . Free Float 20.58 % América Móvil 51% ÖBIB 28% América Móvil ÖBIB Free Float * as of 31 December 2017 Austria │ Helmut Hotter │ A1 Controlling Learning Transformation 4 Group Overview Since July 2014. Strong Major Shareholder América Móvil* is the leading provider of integrated telecommunications services in Latin America 25 countries in America and Europe. 363 million access lines including: 280 million wireless subscribers, 33 million landlines, 28 million broadband accesses 22 million PayTV units In Latin America, América Móvil operates under the brands: Telmex, Telcel and Claro. Austria │ Helmut Hotter │ A1 Controlling Learning Transformation * Figures as of 30 September 2017 5 Group Overview A1 Telekom Austria Group* Who We Are One of the leading convergent communication providers in Central and Eastern Europe. Our more than 18,000 employees deliver . Products and services of voice telephony, broadband Internet, multimedia services, data and IT solutions, wholesale as well BLR as m-payment solutions . For more than 24 million customers across GER our markets of operations. We are convergent in 6 out of 7 countries AUT and offer cloud and ICT-services in CHE SLO Germany and Switzerland. CRO SRB BUL MKD * Short: A1 Group Austria │ Helmut Hotter │ A1 Controlling Learning Transformation 6 A1 Group FY 2018 (reported) Revenue growth in 6 countries Austria Slovenia Belarus Total revenues Total revenues Total revenues > 2,658 (YoY +1.4%) > 214 (YoY -0.9%) > 389 (YoY -0.3% | +9.9% BYN) EBITDA* EBITDA EBITDA > 928 (YoY +3.5%) > 38 (YoY -6.1%) > 164 (YoY -9.6% | -0.4% BYN) Croatia Bulgaria Total revenues Total revenues > 445 (YoY +2.2%) > 446 (YoY +3.5%) EBITDA EBITDA > 114 (YoY +5.7%) > 138 (YoY +6.1%) Republic of Serbia Republic of Macedonia Total revenues Total revenues > 249 (YoY +8.0%) > 119 (YoY +4.5%) EBITDA EBITDA > 47 (YoY +22.5%) > 35 (YoY +17.7%) Austria │ Helmut Hotter │ A1 Controlling Learning Transformation *excl. restructuring charges Markets Austria – Market FY 2018 A1 Austria Market Main competitors: T-Mobile, Hutchison Mobile penetration: 160.5 % Brands A1, bob, Yesss!, Red Bull Mobile Mobile market share: 37.8 % AUT Mobile customers: 5.4 (mn) Fixed access lines: 2,048 (in ‘000) Austria │ Helmut Hotter │ A1 Controlling Learning Transformation 8 Controlling Team A1 CONTROLLING Austria - AT a GLANCE Area Controlling 3 : 2 Central Controlling BUC, TMC 1 : 1 Strategic BUE 2 : 2 Operative 60+ €2.5 bn €0.5 bn 3:2 TEC, FIN, HR 3 : 2 FTE Service Revenues CAPEX Setup 7 €2.3 bn €0.3 bn 2016 2-3y nationalities Ingresos Propios Free Cash Flow BICC Job Rotation 40% €1.3 bn 8.000 SAP Career female Costos y Gastos FTE R3 national BW international Oracle €0.9 bn 4+2 Teradata 40y Excel Subsidiaries average EBITDA Robotics Economics Austria │ Helmut Hotter │ A1 Controlling Learning Transformation A1 CONTROLLING Austria - AT a GLANCE Impact 9+3 NPV abc digitalize growth 22% target dec. making SEM chatbot 59% 19% skills + organ. budget process S4S robotics transformation estimate customer proj. S4G analytics a+p resources Planning fc 5+7 products TWC focus Reporting & Closing fc 9+3 technology DIO Business Partnering Execution Excellence Dashboard closing margin market #CoLeCo c. improvements self service comp. 4wd c. value competitors c. learning re-think+design QlikView group 5wd SCM market model SABA standardize IFRS enh. con- peers Workplace automate AMX view tribution benchmarking academy (F)CF cost rates shares b&b Austria │ Helmut Hotter │ A1 Controlling Learning Transformation The reason “Why”: Unsere Glaubenssätze (our doctrines) A1 Controlling Learning Transformation What we see as challenge for the future – A1 & Controlling #Digitalization #Agile #T-Shape − Skills/competences of − Empowering people − Ability to work outside the digital world of the core area − − Customer centric Selfdriving teams − Functional area, working − Trust/diversity discipline Austria │ Helmut Hotter │ A1 Controlling Learning Transformation 13 A1 Controlling Learning Transformation What we – exemplary - see as future topics for Controlling #Advanced Analytics #Business Partnering #Perfect -> good enough − Business Scientist − Management skills − Change of paradigm − Predictive Analytics − Business models − Culture − Pro-active Austria │ Helmut Hotter │ A1 Controlling Learning Transformation 14 Austria │ Helmut Hotter │ A1 Controlling Learning Transformation HOW? How will it get done? How are things connected? from our One Company - One Strategy strategy Excel in the Core Continuous Improvements Expand the Portfolio EmpoweringTransformation Constant Learning We want to create an environment Targeted M&A that encourages curiosity andOne2All where all of us learn & teach, share & connect knowledge. Austria │ Helmut Hotter │ A1 Controlling Learning Transformation 17 Empowering Digital Life – Strategy Enablers 2012 2017 2022 Business School Blended Learning Fluid Network Learning Focus: Management & Talents Focus: Digital competence Individualized & & new ways of working team/peer driven Learning Performance Management Development focus Selfdriving teams Focus: 9-box model Employees in charge of Peer-to-peer „feed forward“ Austria > International own development Transparent. Project based Culture Fixed Structure Flexible Structure Segmented Structure Management boards. Leadership teams. Project & task based. Platform model. Top down Team & competence Realtime 1-2-many focus Organization Manager Leader Sponsor Lead, delegate Coach, drive Orchestrate, facilitate and follow-up and support and remove hurdles Leadership 5 1 Transformation from HR Why ROAD - Ausgangspunkt Austria │ Helmut Hotter │ A1 Controlling Learning Transformation 19 Transformation from HR ROAD – Es geht um Eigenverantwortung Austria │ Helmut Hotter │ A1 Controlling Learning Transformation 20 Start-Ups STARTUPS www.a1startup.net Empowering Ideas The A1 intrapreneurship program A1 Controlling Learning Transformation Unfortunately only stolen - but still true What we try to establish – the “big 5” . Acknowledge That Every Employee Knows Best In Which Direction To Take Their Learning Treat employees as customers instead of pushing through standard classes . Reject Top-Down Education In Favor Of Bottom-Up Relinquish total control over the educational content, schedule, and the choice of learning platforms . Use Technology To Direct Your Employees’ Self-Learning Mobile, social, and cloud platforms . Adopt The Continuous Education Model Foster a corporate culture . Choose The Learning Paradigm That Supports An Extended Development Vision Consider the meaning of the word “development” and create a vision 4 your employees Austria │ Helmut Hotter │ A1 Controlling Learning Transformation 23 A1 Controlling Learning Transformation New (Controlling) Learning Paradigm . Help employees “learn how to learn”. Organize events and programs in order to stimulate knowledge sharing among staff. Develop user-friendly, easy to use learning portals and video sharing services. Promote collaboration between employees, enabling continuous learning and knowledge sharing. Austria │ Helmut Hotter │ A1 Controlling Learning Transformation 24 WHAT? What to you do? The result of why. A1 Controlling Learning Transformation extract #CoLeCo: Constant Learning Controlling Swimming – Snorkelling - Diving #Swimming #Snorkeling #Diving Austria │ Helmut Hotter │ A1 Controlling Learning Transformation 26 A1 Controlling Learning Transformation Learning „just in time“ vs. „on stock“ #on stock #just in time #encourage #20% - 80% Austria │ Helmut Hotter │ A1 Controlling Learning Transformation 27 A1 Controlling Learning Transformation Technology & Learning Environment Austria │ Helmut Hotter │ A1 Controlling Learning Transformation 28 Austria │ Helmut Hotter │ A1 Controlling Learning Transformation 29 A1 Controlling Learning Transformation Live demo COnni Dein Controlling-Bot 30 Austria │ Helmut Hotter │ A1 Controlling Learning Transformation Ende! Discussion? Your Controlling Strategie Fragen? turn! Thank You! Austria │ Helmut Hotter │ A1 Controlling Learning Transformation.