DELIVERING OUR £0.7 BILLION ANNUAL COST & CAPEX TARGET Year 1 Year 2 Year 3 Year 4 Year 5 Organisation c.25% Plans fully in place Rest completed post IT migration 50% delivered by Year 2 B
• Fast start and continued momentum • Fourth layer of organisation now complete • Many functions at end state, ahead of IT migration • Consolidating footprint with >200 overlapping sites to close • c.30% reduction in pre-merger cost base • Rationalisation of the combined marketing, sales, distribution and logistics activities • Rationalisation & upgrade of radio sites • Consolidation of operating centres and in-the-field resources • Consolidation of IT systems. Benefit delivered after data migration and systems rationalisation complete
Plans fully in place
Retail
Well underway
c.10%
Plans fully in place
Ahead of plans
Commercial
c.10%
>80% of marketing and >50% of logistics synergies achieved by Yr2
Cost synergies building from Year 2 onwards
Network
c.30%
On-track
Capex savings from Yr5 following investment phase (Yr1-4)
Design complete, build underway
IT
c.15%
On-track
Test & business readiness activities in planning
• Leveraging scale efficiency • Eliminating duplication of contracts
Procurement c.10%
On-track
£0.7bn
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