Strategic Brand Management

COLT Telecom Transformation

Group Members
Amit Rustagi: 09 Ankur Agarwal: 12 Anubhav Mishra: 14 K Venkat Subramaniyan: 50 Karan Bhasin: 55

Background: COLT Telecom Transformation Rebranded Colt is building its wholesale business in the managed services sector, selling products to telecoms companies to sell on to enterprise customers. Co-sponsored feature: Colt Technology Services. Colt has rebranded itself and it is telling the industry that it is now more than a telco. The new Colt provides the same level of telecoms services to its customers, but the company has strengthened its offering by combining its telecoms solutions with a wide portfolio of managed services. Our customers expect us to provide telecoms services and now they are looking for managed services, says Franois Eloy, the companys managing director of wholesale. We are managing business critical applications on our network. Our platform is not only our network but our expertise and our 19 data centres in ten countries. Managed services already represent a significant part of Colts business but the company has developed a business plan that sees this sector expand considerably. We want to be growing this business for the next 10 years, adds Eloy. The initiative coincides with a rebranding of Colt to Colt Technology Services. We are the information delivery platform for Europe.

Colt is approaching the market via three sales channels major enterprises, including finance and media; midsize, serve through partners and wholesale. Data is a substantial part of the wholesale offering, but many telecoms service providers are looking for more. Many operators are reviewing their entire portfolio of products, says Max Munro, Colts head of wholesale sales for managed services. Carriers are starting to behave like enterprises, and they want bespoke managed solutions. And they want to reduce costs.

White labels Even when carriers offer managed services in their home countries, they may want to offer them outside their own market and thats where Colt can help. Where they are looking to improve their offer at an European level, we can provide them with white-labelled products, says Munro. This offers carriers the opportunity to sell managed solutions in new areas. Well sell our managed services portfolio to other telecoms firms as to any other vertical. Typical telecoms customers of Colts managed services are competitive players in a region or country. It means they can reduce their cost, and it means they have solutions they can upsell to their customers. Carriers do want to offer a larger range of products. Sometimes carriers have their own extensive offering of services, but enterprises want dual sourcing and we then provide the diverse technical solution, says Munro. Geographical range is another of Colts advantages, especially for wholesale customers looking for what Eloy calls portfolio landfill when they are looking for global coverage. They want to offer the missing elements in areas they dont serve themselves. Offerings can vary from a specific service to fill a gap in a portfolio to a complete range, provided under a white-label arrangement.

Customisation For example, one of the large operators provides a standard solution right across Europe except in two countries. In those we infill that part of the offer, says Munro. For others we can supply a complete range of managed services, customised for these operators, so that they can offer them to their customers. This market has opportunities for all sizes of customers. But doesnt this mean that in some cases Colts wholesale customers in the telecoms industry are competing directly with Colts own directly sold managed service offer? Yes, agrees Munro, but in Colt our Chinese walls are well established. Otherwise wed lose our credibility. We are used to run a dedicated wholesale business in its own right. Among the range of services that Colt Technology Services is offering is cloud computing. Were doing infrastructure as a service, software as a service and platform as a service. Software as a service requires us to arrange licensing with the software companies. As Colt, we have a high profile with them. In other words, some telecoms providers are too small for that process to be economical, and they can benefit from reselling software via Colt.

Software as a service is very much a sell-through play, says Munro. It is something we are working on hard with carriers. On the other two as-a-service variants infrastructure and platform Colt has its own Europe-wide infrastructure to enable it to sell managed services on a wholesale basis to telecoms operators. We sell directly to them, says Eloy. We also sell services to telcos for their own use. Telecoms operators are like just another vertical market sector, he notes. On the wholesale side a much more bespoke approach is required, says Munro. Perhaps an operator wants just one component, or perhaps a range of services bundled into an overall offering. We have to bespoke the offer. It requires Colt to work with telecoms operators on a very different level, he notes. In order to cater for this different approach, Colt has appointed a specialist senior team, says Eloy. Weve created a team of experts, some very senior people who can address this approach. Its a new strategy from Colt taken as part of its rebranding and repositioning moves. The decisions were taken in the middle of 2009 but have become public only in the early months of 2010. Its a five-year plan with a three-year business case for our return on investment, notes Eloy. It is still early days, but Munro says: Were very pleased with the response from customers. The company did not expect a quick response from established players in the market, at least at the start of the programme, but were surprised at the response from national players. As a result, Colt has expanded its consulting services to include IT platforms. We are changing quite dramatically as a business, says Munro. You can see us using the infrastructure weve always had in a different way. Were concentrating on the strength we have across Europe. And Colt is applying its own lessons to its own operations, he adds. Its a difficult sell unless you can prove the returns. Colt has to be able to demonstrate that it can make equivalent savings in its own business, by using its own managed services.

Cost savings Look at your own organisation to see where you can successfully make cost savings, says Munro. Look at the power, at the rack space, at the cooling. A reduction in capex is one of the great sales pitches. So what has been the result in Colts own operations? Weve saved millions, he says. Weve achieved a 50% reduction in rack space, a 20% better cooling efficiency and a reduction in power of 40%. Those are the sort of figures that Colt can show its potential customers in the industry. The other side to that is changing working practices, to demonstrate how a company that is distributed across Europe can work effectively. We are changing our working practices, says Munro and thats bringing extra benefits, such as the added security when documents are stored in the network not on laptops. Colt is the information delivery platform for European businesses, says Eloy. And we are serving customers via 3 different channels including wholesale. About the Company Colt was founded in 1992 by Jim Hynes with funds provided by Fidelity Investments as City Of London Telecommunications. The company began to construct a telecoms network in London. In 1993 it was awarded a licence to compete with British Telecom and Cable and Wireless in voice and data transmission. It was first listed on the London Stock Exchange in 1996. The group later expanded into Europe, building networks in major European cities over the next 10 years. In 2001 Fidelity Investments helped the Company to raise a further 400m to finance its future activities. Colt is an Europes information delivery platform, enabling its customers to share, process and store their vital business information. Colt provides major organisations; midsize businesses and wholesale customers with a powerful resource that combines network and IT infrastructure with expertise in IT managed services, networking and communication solutions. Colt operates in a 13-country, 25,000km network that includes metropolitan area networks in 34 major European cities with direct fibre connections into 16,000 buildings and 19 Colt data centres. Colt has invested over 4.5 bn of its shareholders money, is still re-investing 95% of its EBITDA, and has never paid a dividend. The majority (70%) shareholder of COLT still is its founder, Fidelity. Colt have an employee strength of 10,000 across the globe. And expanded and established in the itself in the telecom field. In the year 2004 Colt Telecom unveiled its latest business reorganisation on Monday and announced a number of additions to its senior management. The reshuffle, which comes less than a month after the arrival of the telco's new president and CEO Jean-Yves Charlier, will see Colt reorganised into four geographic areas. The first three will be the company's three largest individual country markets the U.K., France and Germany while the fourth, to be known as Strategic Markets, will comprise Colt's

operations in a further 10 European markets. In a statement the telco said the new structure will enable it to focus better on its key large markets, while also providing increased support to its fast-growing smaller markets. In addition, Colt has integrated its sales and marketing operations into a single entity, under one leadership team, and has created a new unit Innovation & Products through which it will coordinate product development. Former Equant executive Detlaf Spang has been appointed managing director of Sales & Marketing, while Paul David has been named MD of Innovation & Products; Spang held the post of senior vice president for the EMEA region at Equant.The telco has also named the heads of its new geographic divisions. Tim Wort, formerly general manager EMEA at Vignette, has been named as Colt's managing director U.K. The same post at the German division has been filled by Wolfgang Essig, while Richard Blaustein, vice president of global transformation at BT Global Services, has been appointed as MD of the French division. Lakh Jemmett will head Strategic Markets. These changes are designed to provide the company with a world class leadership team and strongly position COLT for long term revenue growth, said Jean-Yves Carlier in a statement.All the new appointees will report directly to the CEO and have been named as members of the telco's senior management team. Product Line Colt have the product line in all the segments i.e. Voice Service Data Service Managed services Cloud Computing(Moved to this area recently) There are many customised service which Colt offer to their client n their need basis. This helps Colt as well as their client ti grow further. Story Telling Colt has won many client over the years on years. One of the which significantly helped Collt to grow further is Bird & Bird. Basically Bird & Bird, a rapidly growing international law firm, decided to centralise its IT systems, it needed a low latency hosting and network infrastructure to support them. COLTs combined data centre and Ethernet solution has delivered minimal latency and maximum flexibility for Bird & Bird. Today, Bird & Bird has 21 offices in 15 countries, employing around 1,300 people. To meet this rapid growth, Bird & Birds IT Services team needs to be able to move very quickly to integrate either new

offices or merged offices to the centralised infrastructure to provide staff fast access to all the systems and communication tools they need to work effectively. Clifford Chance Partners with Colt for Disaster Recovery Clifford Chance selected COLT to provide Ethernet connections between its four hub sites and manage the equipment at each location. As COLT owns and operates its own network across Europe, with deep fibre networks in all of the cities where the Clifford Chance data centres are located it was able to directly connect each site and offer an end-to-end service with very low latency and high bandwidth. Clifford Chance is one of the worlds leading law firms. Its 3,800 advisers provide domestic and international legal advice across the Americas, Asia and Europe. Clifford Chances ambition is to be the worlds premier law firm and investing in managing knowledge and information is a key part of its strategy for achieving that goal. As Jean-Luc Levy, IT Director, Western Europe at Clifford Chance says, Information and Communications Technology (ICT) is part of its core business. Five years ago, Clifford Chance decided to consolidate its telecom suppliers across Europe to simplify management and reduce costs. Clifford Chance selected Colt to supply its voice and internet access services to a number of its European offices, as well as metropolitan data connectivity, because of Colts pan-European network coverage and competitive pricing. Today, Colt is one of Clifford Chances strategic telecom partners for Europe. Business challenge One of the top IT priorities for any firm is providing its teams with an efficient management information system & reliable network connectivity. As a part of this many companies decided to centralise its information system to a single store rather than each office using its own separate systems. The move would make it easier to connect new users to the system, as the firm expanded, and make more efficient use of the firms IT infrastructure. Whilst centralising information management system, clients needed to guarantee that its users would have instant access to their files and system at all times. As its primary network and data centre provider, COLT proposed a new, ultra low latency solution to meet the requirements to many clients. Innovative solution COLT designed a completely new Ethernet-based solution for many clients that has since been developed into a standard COLT product, Ethernet Private Network (E-PN). By hosting the information management system in one of COLTs London data centres and then using E-PN to provide high speed access from all offices, COLT was able to guarantee the performance as they needed. E-PN is a very cost-effective any to any network solution that allows the firm to run all their sites as

though they were a single, unified entity. Bandwidth can be bought in small increments and the technology is simple to use as Ethernet networking skills are already widespread within IT departments. As the early adopter of any to any Ethernet, Bird & Bird has helped to refine the solution with COLT. According to account manager Rod Faul, Working with Bird & Bird has been invaluable in helping us refine our solution into something that meets the needs of the legal sector very effectively. Client Benefits & comments Many clients has found that COLTs combined E-PN and data centre solution has solved its latency issue completely and given the firm the flexibility to add new bandwidth and new offices easily as it grows. With the E-PN network in place, our latency issues were resolved and we were able to realise the full benefit of our information management system, said Tim Collinson, Network Manager at Bird & Bird. Its simple to plug new sites into the network because of the any-to-any network design, which is crucial for us as the partners expect us to move quickly when they acquire new offices. We are finding that our bandwidth needs are increasing all the time, not only because we are expanding but also because our people are using more email, IP telephony, video conferencing and other applications. With E-PN, it is very easy to upgrade bandwidth, said Collinson. Partnership relationship Colt believe in building relationship with their client. Similarly also client values the strong and stable working relationship it has built up with COLT. COLTs network reach and data centres are an excellent fit for our business as both organisations operate in the major economic centres. But its effectively people who deliver the solutions we need we have built a very strong partnership relationship with COLT. Looking to the future, many Colts client has set its sights on further expansion in the Far East. We have found the right infrastructure solution to support our centralised IT strategy and we will be extending it around the world as the business grows, concluded Jacks. On the similar front clients are highly satisfied with the service and customer centric approach of the organisation. And this intern helps colt to build the relationship with the client which helped Colt to grow further. New CEO & Current issue In the last of 2006 Rakesh Bhasin has taken the charge of CEO for Colt. He has a very good background and strategic management skills. Mr. Bhasin served as President of COLT Telecom Group SA since

December 13, 2006. Prior to joining COLT, Mr. Bhasin served as President and Chief Executive at KVH Co. Ltd., a Fidelity Asia-focused telecom and network solutions provider headquartered in Tokyo. Prior to joining KVH, he served in senior positions within AT&T, including head of AT&T Asia Pacific's managed network services business from 1993 to 1997 and President, AT&T Japan, Ltd. He was also Senior Managing Director, Japan Telecom Company Limited. His roles with AT&T included Vice President of new business services for the AT&T joint venture World Partners Company, and Regional Managing Director of AT&T Managed Network Solutions for Asia Pacific. From 1990 to 1993, he served as Global Product Manager, developing custom solutions for global corporate customers at AT&T, primarily in the area of data networks. He has been Chairman of KVH Co. Ltd., since February 2001. He has been Executive Director of COLT Telecom Group SA since December 13, 2006. He received a Bachelor of Science degree in Electronic Engineering from George Washington University in 1985. Mr. Bhasin also attended the Berkley Executive Program at the University of California at Berkeley in 1994 and the Advanced Management Program at the Wharton School at the University of Pennsylvania in 1997. Rakeshs main area of focus is making Colt a market lucrative for investor and a profitable entity. In order to move forward on this strategy, in the year 2008, again the internal structure and the environment in the organisation start changing. The rationale behind changing the organisation structure is due to confusing role level and designation. During that period in Colt there are more than 250 role titles. To simplify these role titles Colt has worked with the outside agency and finally came up with the seven levels across the organisation (worldwide). Due to these seven levels all employee have been divided in the band which results in unhappiness among the employee? As first impact of any change is rejection and this change leads to think that their current empowerment will be taken away by the organisation. This also in turn into high employee turnover. After this change Colt have started moving into the direction of re-branding. As an Organisation they have spend lots of million euros in the re-branding. During this wave the Colt enabling strategic action has been dicided. Similarlly logo and Colt is heading towards new strategy. But one thing which has been observed that the lower level employees are confused about why it is getting changed? Even though when question has been raised in the forum there is no solid and concrete answer to this to their supervisor. Even though several levels of new vibes are flowing but no one is sure whether it is flowing the right direction or not. The state of confusion have been carried for near about 6 months to 1 year. After that period of dilemma employee across the Colt got some new vibes of re-branding. Under this re-branding process several changes at the management level has been done. Along with that the customer segment has been merged with the vision that Colt can and will provide better service to their client.

Previous Colt has following customer segment i.e. Major Division SME Division Whole sale division Cloud customer Colt Communication Service Colt Enterprise Service

During this process of restructuring Colt get rid of many redundant employees. They have given pink slip to 20% of their European & UK employee. From the business strategy point of view main concentration of Colt is on Cloud services as profit margin on the voice service is declining. As a part of strategic action Colt want to slow down the sales of Voice services. Instead of this as a Telecom organisation the main focus is on Data service. The margin in the data service is higher and good for the overall growth of the organisation. From the year 2010 onwards the main focus is on Cloud computing. As it is the buzzing word of the industry. There are many substitute and threats to Colt as there are bigger and biggest company have also started entering in the same domain (i.e. company like: Google, Microsoft, etc.). But the main strength of Colt is the wide spread network across UK and the European countries. Which gives more reliability & security than the other provider as it is maintaining its own network. Market Value & strategy During this period i.e. 2008-10 the share and market value of the Colt has increased significantly and cash balance in the account has been shown after a long years. To increase the market value Colt has reduced the expenditure significantly & bought new service to the market faster. They have developed new strategy of bringing right service together. Analysis COLT's last set of full results showed voice revenues declining at approx 11% against an overall market decrease of approx 6%. The last interim statement in March 2010 confirmed that the drop in COLT's voice revenues is not yet being offset by increases in data and managed services. However, COLT remains upbeat about its chances of securing the growth it wants. This confidence is justified up to a point but COLT has some tough operational challenges ahead if it is to pull off this rebrand successfully.

Before looking at the operational challenges, it is worthwhile touching on the strategy first. COLT's new

strategy is "spot on". The larger end of the Enterprise mid-market has been under-served for 3 years (a full analysis of this can be found at www.larato.co.uk on the insights page). Customers are keen to invest in solutions that will give them competitive edge. COLT has focussed itself well onto this market sector, exploiting the strengths in its network and marketing a reasonable set of managed services and consultancy to complement it. In my view, this is the best market move COLT has made in the last 5-6 years.

However, delivering this strategy is going to be tough. The strategy presents challenges right across COLT's operating divisions;

1. Selling the new ICT proposition is very different. One of COLT's core strengths is its ability to sell connectivity. Its sales resources now need refocusing from a reasonably straightforward sale of pipes and minutes to a highly complex consultative sell of Enterprise solutions that need to deliver against business objectives. It took BT and C&W years to address this issue and that is time that COLT does not have now because this market is moving fast.

2. Designing and delivering the ICT proposition is different. Whilst selling connectivity solutions, COLT has been able to fall back on strong reference designs that can be customised to suit their clients. Customers looking for ICT solutions want complex mixes of "off-the-shelf" and "tailor made" solutions. They are also seeking much stronger performance guarantees linked to business performance metrics and not just QoS. COLT's customer focus will stand it in good stead to address this issue. However, delivering this kind of change which touches almost every department in COLT to produce a flexible and timely service to prospects and customers is hard. Again, BT has spent 3-4 years addressing these issues. COLT needs to learn to be nimble.

3. The competition is different and fierce. COLT hasn't had to worry too much about competition to date. Its network footprint and Telco services have meant that any Enterprise serious about their connectivity would consider COLT. Now that the sale is being made at the application layers and not the network layers, the competition is broader and much more challenging. BT's wholesale strength means that Integrators and New Entrants are able to compete for business that would have been considered core to COLT and almost un-winnable for a competitor. This has changed. Integrators like Logicalis are winning core business away from Telco's trying to rebrand. New companies like STAR are nimble, focussed and hungry for success. This dynamic market landscape presents an important operational challenge to COLT - what is your competitive position? Why should customers choose you instead of another provider? There is practically no competitive positioning in COLT's new go-to-market. This is not only an operational mistake but probably a strategic one as well. Buyers are maturing and becoming highly competent at competitive sourcing. COLT needs to focus on this area quickly.

In summary, COLT has made a strong start strategically but the operational challenges ahead of it should not be underestimated. The management needs to lead the organisation to be nimble and differentiated in its new market context. This operational change needs to be bedded in within 12 months for COLT to be able to exploit the fast moving Enterprise mid-market

ANNEXURES: BUSINESS REVIEW Major Enterprise Division Data and Voice revenue in the Major Enterprise Division continued to decline at similar rates to those in 2009 although the decline, particularly in Voice, slowed over the second half of the year. We saw stronger business growth in the UK, led by the recovery in the financial services sector and there was an improvement in our performance in Germany.

Managed Services revenue continued to grow strongly in 2010 though overall growth was held back by a deliberate strategy to bring certain customer contracts to an early termination to free up space particularly at premium locations for higher value opportunities. New contracts were signed to deliver services to a range of large corporate customers from different industry sectors including an agreement with the London Stock Exchange Group (LSEG) to provide financial institutions with proximity hosting services linked to the LSEG trading platform.

Data revenue from Major Enterprise customers decreased by 9.1m (2.2%) to 404.4m (2009: 413.5m) with increased Ethernet revenue offset by reduced revenue from other Data products and customer churn reflecting the challenging economic climate. Our focus on Managed Services revenue resulted in growth of 12.3m (9.5%) to 141.9m (2009: 129.6m) with growth across the product portfolio. Looking forward Managed Services revenue should benefit from our new enterprise cloud services that are based on agreements with Unisys, VMware and TIBCO.

Voice revenue declined by 19.1m (12.1%) to 138.2m (2009: 157.3m) due to continuing competitive pressures and reductions in mobile termination rates. Of the decline, seven percentage points arose in Germany with the remainder spread across other markets. EBITDA for the Major Enterprise Division increased by 0.1m to 152.6m (2009: 152.5m) with the reduction in total revenue offset by the improved mix of higher margin Managed Services revenue.

Midsize Business Division Data revenue from Midsize Business Division customers increased by 4.2m (2.6%) to 165.1m (2009: 160.9m) with growth in Ethernet partially offset by a decline in older Data products such as bandwidth. Managed Services revenue grew by 3.0m (14.9%) to 23.1m (2009: 20.1m) despite some pricing pressures experienced at the start of the year. Sales of Voice products continued to decrease, falling by 18.4m (8.1%) to 207.8m (2009: 226.2m). However, the rate of decline was lower than in 2009, with growth from Intelligent Network products, such

as premium rate calls, helping to offset a decline in Reseller and Voice line business, particularly in Germany, Austria and Italy. Overall sales growth rates were also supported by a more efficient sales model and a new European Telesales centre located in Barcelona. The reduction in total revenue was offset by a change in product mix to higher margin Data and Managed Services revenue. These changes along with a reduction in selling, general and administrative expenses due to lower headcount resulted in an increase in EBITDA of 6.5m to 50.6m (2009: 44.1m).

Wholesale Division 2010 saw continued growth in Data and Managed Services revenues for the Wholesale Division. The 11.1m (5.0%) increase in Data revenue to 231.6m (2009: 220.5m) was attributable to new business wins resulting from a successful launch of Colts off-net product which extends Colts wholesale offering beyond the Colt network. This significantly extends our reach and allows customers to use Colt for all their communications needs rather than just those served by our network. Managed Services revenue saw significant growth in 2010 of 1.2m (18.8%) to 7.6m (2009: 6.4m), albeit from a small base, due to contract wins during the year particularly for co-location services. Carrier revenue continued to decrease, down 18.2m (8.6%) to 194.2m (2009: 212.4m) owing to regulatory and market-led price declines and a deliberate strategy of exiting low margin traffic. The Wholesale white label voice offering, which provides resellers with a pan-European Voice product for their corporate customers, saw continued growth in 2010. This has helped to offset the longer term decline in legacy Voice products. As a result, Corporate and Reseller Voice declined by 5.9m (7.8%) to 69.7m (2009: 75.6m) overall. Wholesale Division EBITDA increased by 4.9m to 127.0m (2009: 122.1m) with the reduction in total revenue offset by the improved mix of higher margin Data revenue and the benefits of operating efficiencies including lower bad debt provisions. Asset Development Capital expenditure relating to Data revenue is primarily expenditure on new equipment both on customer premises and elsewhere in the network to support the acquisition of new Data revenue customer contracts. These contracts are typically medium to long term in nature. Capital expenditure for these purposes grew by 4.9m to 140.7m (2009: 135.8m) during 2010 after particularly low customer capital spend in 2009.

There was an increase in capital expenditure related to Managed Services revenue of 9.0m to 41.7m (2009: 32.7m) during the year largely due to the completion of a modular data centre build in the UK. Colts strategy is to invest in data centres and to build out those data centres in response to customer demand.

Wherever possible Colt tries to manage the initial Data and Managed Services cash investment through up-front customer payments. An exception to this is the wholesale data centre market where up-front customer payments are no longer the market norm. Other capital expenditure, representing core network development, office infrastructure, IT projects, and network inventory, increased in 2010 by 1.6m to 49.4m (2009: 47.8m). There was an increase in spending on internal IT projects in 2010, mainly to support our new vCloud data centre services.

Acquisitions The Group made two acquisitions during the year totalling 63.5m (2009: nil): In May 2010 Colt acquired a company which owned the freehold of its existing partially developed data centre site just outside London, for a cash consideration of 57.1m plus transaction costs. This investment increased Colts capacity at the site from 4,500 square metres to in excess of 10,500 square metres. The facility has been operating successfully for over two years, providing Colt customers with top quality data centre space, excellent resilience and high levels of security.

In November 2010 Colt acquired the assets including the intellectual property of TDN for a cash consideration of 6.4m plus transaction costs. TDN was a German supplier to Colt of Utility Computing Services, a cloud computing application. Colt has been selling services delivered from this platform since 2006.

Preparing for the future In October we announced plans to simplify our organisation in a move designed to drive growth, increase efficiency and improve service effectiveness. We have simplified our approach to the market by organising ourselves into three customer serving units, these comprise: Colt Enterprise Services, which focuses on direct sales primarily to large enterprises; Colt Communication Services, which focuses on indirect channels selling transactional services to other enterprises principally carriers and to smaller customers via channel partners; and Colt Data Centre Services, which focuses on selling large scale data centre space to large enterprises and providers through a small specialised direct sales team. These are supported by two service units formed by rationalising six former support divisions. As a result of these changes we have taken a 30.1m exceptional charge in 2010 and we expect to generate 35.0 million of savings in a full year. We plan to invest around 15.0 million of these savings in new customer facing roles to drive revenue growth, delivering net annualised savings of 20.0m. In 2011 we expect to deliver net savings of approximately 10.0m.