N.V. Holdingmaatschappij De Telegraaf is organising today a meeting for institutional investors and analysts at which the strategy for the years ahead will be set out. A strategy memorandum has been sent to all staff members. This memorandum has been presented to the company's Works Councils. The strategy memorandum bears the motto: ‘Optimising, renewing and internationalising’.
Optimising the existing activities will bring about an improvement of the operating profit. One of the measures involves a medium-term reduction by at least 5% in the number of staff, the starting point being that this is achieved without compulsory redundancies insofar as permitted by the company's performance.
Renewal should result in higher turnover from new activities and publishing concepts based on our core competences, whether or not as an extension of our current strong brands. This week a new glossy monthly, ‘Starstyle’, targeting younger women, will be on sale in the shops.
Internationalisation is designed to increase the turnover of foreign activities, particularly in countries that are close to the Netherlands both geographically and culturally. The target is to generate 5% to 10% of total group turnover abroad by 2005.
The Internet activities will certainly be continued but further integrated with the current printing activities so as to realise maximum synergy and mutual reinforcement. The strategy will increasingly be aimed at generating turnover. The Internet activities, both the in-house developments and the participating interests, are being constantly assessed for costs and potential turnover. Another important factor is the value created through the mutual reinforcement of our products and the resulting stronger bond with our consumers.
The strategy is aimed at long-term independence, continuity and profitability with an average net return on equity of 12%. The dividend policy will be continued with a pay-out ratio of 35%.