Verizon's Annual Shareholder Meeting
Ivan G. Seidenberg
Louisville, KY
May 7, 2009
Report to Shareowners
Before we get to the question-and-answer portion of the meeting, I would like to take this opportunity to say just a few words about our company.
By now, you have had the chance to read our 2008 Annual Report, which details another year of strategic gains and operational excellence. The bottom line is that, in a tumultuous year, Verizon delivered solid earnings growth, raised your dividend and provided a degree of stability in an uncertain market.
You may also have seen our first quarter earnings, which we announced just over a week ago. Verizon was one of a very small group of companies that was able to deliver year-over-year growth in earnings, revenue and cash flow.
As I said in my letter in the Annual Report, we run our business based on a few core beliefs.
The first leg of the stool is our belief in investment in networks as the key to growth. We’ve made superior networks a hallmark of our company. Verizon’s great wireless, fiber-optic and global Internet networks allow us to innovate and provide the products, services and applications that earn customer loyalty, make us competitive in the marketplace, and expand our position in the growth markets of the future.
The second leg is our focus on the fundamentals of running a high-performance business. Our commitment to operating excellence and profitable growth gives us a strong balance sheet and good cash flow, which in turn allows us to invest for the future, pay a great dividend and still have the flexibility to adapt to changing economic conditions. This prudent financial management has been crucial to our ability to weather the current economic downturn.
Our third core principle is that we conduct our business in accordance with our values. We firmly believe that what we do is good for society. We have strong roots in communities all over America. We have nearly a quarter of a million employees who last year contributed more than 600,000 volunteer hours and millions of dollars to improve the quality of life for their customers and their neighbors. In addition, in 2008 our retirees volunteered 1.5 million hours through the Verizon Pioneers and accounted for more than $4 million in donations through our matching gift program.
To the Verizon employees and retirees who are here with us today, we thank you very much for your efforts.
The broadband, wireless and global Internet networks that are so vital to Verizon’s growth play a unique role in connecting individuals and communities to the economic opportunities of the digital world. And, as we unleash its full innovative power, communications technology will be an increasingly important part of the solution to some of the major social challenges of our time.
Later this month, we’ll be publishing our annual Corporate Responsibility Report, which you’ll be able to read on our website. It will give you a full account of how Verizon’s philanthropy and corporate responsibility programs are using technology to drive positive change in our communities. We are very proud of the depth and breadth of our activities, of which the following list is just a sample.
We have an award-winning website called Thinkfinity.org, which provides educators with free access to more than 55,000 lesson plans and interactive resources from educational and cultural organizations like National Geographic and the Smithsonian Institution.
We operate a domestic-violence prevention program called Hopeline, which over the years has collected more than 5.6 million used cell phones, donated some $6.3 million to shelters and agencies, and contributed over a quarter of a billion free wireless minutes to help the victims of domestic violence take control of their lives.
We’re using adaptive technologies such as videophones and text-to-speech translators to extend the benefits of broadband and wireless to people with disabilities, and we’re working with our suppliers to make cell phones easier for senior citizens to use.
In the area of health care, we’ve led the charge to use information technology to reduce costs and improve the quality of America’s health care system.
We’re helping our customers “go green” by using videoconferencing and telecommuting in place of business travel. The even bigger payoff will come as broadband technology becomes part of a new “smart” infrastructure for our country, helping to regulate traffic, use energy efficiently and improve public safety.
These are just a few of the ways we’re using technology to be a positive force in society. I share them with you not just because we’re proud of them, but because they go to the core of who we are as a company.
Whatever we commit ourselves to – for customers, for communities or for shareowners -- we’re in it for the long haul. Our people demonstrate their dedication to our customers and their adherence to our values -- year-in and year-out, in good times and bad. And at the end of the day, we have a passion for performance and a consistent track record of delivering results, no matter what challenges lie in our path.
We’re confident about the future. We will continue to invest in the future, focus on the fundamentals, and live our values. We thank you for your support and, on behalf of our employees and Board of Directors, I assure you that we will keep our customers, our communities and our shareowners at the center of what we do.
