TDE.L Regulatory News (TDE)

21 Dec 2005 16:02

Telefonica SA21 December 2005 Press Release Julio Linares, new General Director of Coordination, Business Development andSynergies TELEFONICA CHANGES ITS MANAGEMENT STRUCTURE TO MEET ITS NEW PROJECTS ANDTARGETS • Luis Lada, new Chairman of Telefonica de Espana Madrid, 21 December 2005 - At today's ordinary board meeting, Telefonica S.A.'sBoard of Directors has approved the restructuring of the Company's seniormanagement in accordance with its projects and targets. In recent months Telefonica has taken on a new multinational scope and has setitself clear integration and cultural targets. Both goals are based both on theperformance of its businesses in Spain and Latin America and on recentoperations carried out by the Group: the successful integration of the mobileoperations acquired from BellSouth, the acquisition of Cesky Telecom and theprojected incorporation of the British company O2 into the Group, with asignificant presence in the UK, Germany and Ireland. Cooperation agreementssigned with China Netcom also form part of this new approach. Given the greater international projection and integrated business of the newTelefonica, the Group's Chairman, Cesar Alierta, has proposed a series ofmanagement mechanisms to the Board to address the company's requirements in aglobal, integrated and competitive environment. There are two basic targets behind this management reorganisation. First,obtaining positive results is a priority in each and every one of the businesslines, whilst the second target is to maximise the leverage obtained from theGroup's scale, positioning and leadership. On the basis of these premises,Telefonica could maximise the value of its integrated management and continue tooffer the best combination of growth and cash return in the sector the short-,medium- and long-term. The changes to the organisational structure approved today are primarily basedon the creation of a new General Management for Coordination, BusinessDevelopment and Synergies, which will be in charge of carrying the TelefonicaGroup forward as a unique and integrated company with Julio Linares, as Chairmanof Telefonica de Espana, at the helm. The main objectives of this new division are as follows: • Leverage all the possible benefits from Group synergies. • Continue to transform the Group in an orderly and consistent manner, with the customer, commercial initiatives, operational excellence, innovation and talent management at the forefront. • Group performance will be anticipated proactively by offering digital integrated communications solutions, and information and entertainment to all market segments. In his new role Julio Linares will be in charge of the following areas:Strategy, Budgeting and Control (Alfonso Alonso), Commercial (Adrian GarciaNevado), Infrastructure and Information Systems (Vicente San Miguel),Purchasing, which includes Real Estate, Logistics and T-Gestiona (AlbertoHorcajo) and Human Resources Oscar Maraver). Elsewhere in the company, the General Finances and Corporate Developmentdivision will be strengthened, headed by Santiago Fernandez Valbuena, who fromnow on will oversee the General Finances division, Corporate Development (AngelVila) and Subsidiaries and Associated Companies (Luis Blasco). The latter alsoincludes TPI, Endemol, Atento, TSA, Telefe and Affiliated Companies Luis Lada, who has been General Manager for Development, Planning and Regulationup until now, will become Chairman of Telefoncia de Espana. AntonioViana-Baptista will remain at Telefonica Moviles and Jose Maria Alvarez Palleteat Telefonica Latinoamerica. Once the acquisition of O2 has been finalised, thecompany's CEO, Peter Erskine, will retain his position at this division whichwill also include Cesky Telecom and Telefonica Deustchland. All of these four units will continue to report to the Chairman along with theGeneral Finances and Corporate Development unit and the newly created GeneralManagement for Coordination, Business Development and Synergies. Legal Services (Juan Carlos Ros), Corporate Communications (Luis Abril),Internal Audit (Calixto Rios) and Institutional Relations and Foundation (JavierNadal), which includes Regulation and the Department for External Relations,will also report directly to the Chairman, as will the General Secretariat(Ramiro Sanchez de Lerin), who is also Secretary of the Board of Directors. Lastly, the contribution from the General Manager for Commercial Development,Guillermo Fernandez Vidal, will be modified. Instead of playing an executiverole he will take on a professional and active function as Board Member ofvarious Group business lines; Telefonica de Espana, TPI and Telefonica Moviles,amongst others. The chart with the new Telefonica's management structure is available on theCompany's website (www.telefonica.es) Para mas informacion / For further information Direccion de Comunicacion Corporativa Tel: +34 91 584 09 20 Press Office Fax: +34 91 532 71 18Gran Via, 28 - 3a Planta e-mail: prensa@telefonica.es 28013-MADRID http://www.telefonica.es/saladeprensa This information is provided by RNS The company news service from the London Stock Exchange