Tuesday 19 June 2012
For Immediate Release
TalkTalk Telecom Group PLC ("Company")
Publication of Annual Report 2012
The following documents have today been posted or otherwise made available to shareholders:
· Annual Report 2012
· Notice of 2012 Annual General Meeting
· Form of Proxy for the 2012 Annual General Meeting
In accordance with Listing Rule 9.6.1 a copy of each of these documents has been uploaded to the National Storage Mechanism and will be available for viewing shortly at www.hemscott.com/nsm.do.
These documents are also available to view and download from the Company's website at www.talktalkgroup.com.
Copies of the Annual Report 2012 and Notice of 2012 Annual General Meeting may also be obtained from:
The Company Secretary's Office
11 Evesham Street
Compliance with the Disclosure and Transparency Rule 6.3.5 ('DTR 6.3.5') - Extracts from the Annual Report 2012
The information below, which is extracted from the Annual Report 2012, is included solely for the purpose of complying with DTR 6.3.5. It should be read in conjunction with the Company's Preliminary results announcement for the 12 months to 31 March 2012 issued on 17 May 2012 (available at http://www.talktalkgroup.com/press/press-releases/2012/17-05-2012.aspx). Together these constitute the material required by DTR 6.3.5 to be communicated to the media in unedited full text through a Regulatory Information Service. This material is not a substitute for reading the full Annual Report 2012. All page numbers and cross-references in the extracted information below refer to page numbers in the Annual Report 2012.
For further information please contact:
Tim Morris +44 (0) 208 753 8243
For media enquiries:
Mark Schmid +44 (0) 7515 034 676
The Director's responsibility statement below has been prepared in conjunction with the Annual Report 2012 whereas this dissemination document contains extracts from the Annual Report 2012 to comply with DTR 6.3.5.
Charles Dunstone - Chairman
Dido Harding - Chief Executive Officer
Amy Stirling - Chief Financial Officer
David Goldie - Group Commercial Director
Roger Taylor - Deputy Chairman
John Gildersleeve - Non-Executive Director
Ian West - Non-Executive Director
John Allwood - Non-Executive Director
Brent Hoberman - Non-Executive Director
We confirm to the best of our knowledge:
1. The financial statements, prepared in accordance with the relevant financial reporting framework, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company and the undertakings included in the consolidation taken as a whole; and
2. The management report includes a fair review of the development and performance of the business and the position of the Company and the undertakings included in the consolidation taken as a whole, together with a description of the principal risks and uncertainties that they face
Principle risks and uncertainties
In common with other organisations, we are affected by a number of risks, not all of which are in our control. Some risks, such as UK macroeconomic factors, are likely to affect the performance of UK businesses generally, while others are particular to our operations. This section sets out the material risks to the Group and how we seek to mitigate them in the day to day running of our business.
1. Competitive environment
Potential impact: Increased competition in the UK broadband market may impact financial performance.
Mitigation: We regularly monitor the product offerings of key competitors in the market. This results in an ongoing review of the customer proposition and the overall value of our products.
2. Regulatory environment
Potential impact: Changes in regulated prices can significantly impact the Group's performance. In particular, demand for fibre access could grow significantly before a wholesale product with acceptable economics is available for the Group to market to customers.
Mitigation: We actively participate in pricing consultations by Ofcom, including the use of independent experts to provide assistance and evidence as required. The Group is working with Openreach to develop fibre products that incur lower set up and provisioning costs. There is close liaison with Ofcom to ensure there is regulatory support for development of fibre products suitable for mass-market adoption.
3. Regulatory compliance
Potential impact: Failure to operate effective processes across the Group may lead to customer churn, and non-compliance with regulatory requirements. Disruption to business operations and back office functions may impact financial performance and our customers.
Mitigation: The Group's Compliance Committee regularly monitors the level and reason for customer complaints.
4. Network stability and reliability
Potential impact: Failure to provide a stable and reliable service causes customer churn.
Mitigation: We focus continually on improving network resilience and performance, and continue to invest to ensure we keep pace with customers' growing demands.
5. Change management
Potential impact: We are undertaking a strategic review of our IT structure and systems in the next financial year. Disruption to business operations and back office functions may impact financial performance and our customers.
Mitigation: We have a Group Change Forum comprised of senior managers that is responsible for centrally monitoring Group wide change. Teams are established to run the component projects of the overall change, with clear plans in place for each area. Regular progress reports are provided to ensure key dates are met.
6. Data integrity and security
Potential impact: Failure to accurately capture and securely store customer data could lead to data protection breaches causing damage to our reputation and fines.
Mitigation: The Group continually reviews its data security and implements new solutions as they become available.
Potential impact: Provision of television services could become a more important driver of competitive advantage in the broadband market.
Mitigation: The Group is part of the YouView joint venture, along with the BBC and other parties, which is developing a television service that includes internet-based catch-up and video-on-demand services.
8. Key suppliers
Potential impact: Failure of key suppliers could affect the Group's ability to operate its business.
Mitigation: We manage these risks by ensuring we have a strong supplier selection process