Verizon Wireless 2012 Annual Report Download - page 7

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Just as Verizon’s Innovation Program has become an incubator for new business
solutions in the marketplace, the Verizon Foundation aims to become an incubator for
new social solutions.
CREATING SHAREOWNER VALUE
As focused as we are on using our technology to transform the world, we are equally
driven to transform our own business from the inside out. We have implemented Verizon
Lean Six Sigma, a rigorous process improvement model, to identify areas where we can
streamline how we work and eliminate internal barriers that impede productivity and service
excellence. In just the last 18 months, we have removed $4 billion from our cost structure.
Our 2012 results reect our fundamental nancial strength, our commitment to growing
shareowner value and our success in seizing opportunities in our key strategic growth
areas. Revenues totaled $115.8 billion, up 4.5 percent. We generated $31.5 billion in cash ow
from operating activities, an increase of 5.7 percent. With these healthy cash ows,
we invested $16.2 billion in our networks and paid $5.2 billion in dividends, which included
our 6th dividend increase in as many years. Earnings per common share increased 4.2
percent to $2.24 on an adjusted basis. Overall, Verizon’s total return to shareowners for 2012
was 13.2 percent, as compared with 10.2 percent for the Dow Jones Industrial Average
and 16 percent for the S&P 500.
EMPLOYEE DEDICATION
Being a responsible citizen is at the heart of our business, and can be seen in the
commitment of our employees to providing customers with the best possible
service. Nowhere was that dedication more apparent than in the wake of Superstorm
Sandy, which wreaked havoc on the East Coast of the United States. For months,
our employees worked nearly non-stop to restore communications services, rebuild badly
damaged infrastructure and upgrade our networks against future disasters.
The Verizon Credo says “we run to a crisis.” As usual, Verizon employees came through.
I thank each and every one of them for their dedication to our customers and communities.
I am grateful to our Board of Directors for their strategic guidance and support
in helping us build Verizon to be successful for decades to come. I’m condent about
the trajectory of our business and inspired by our potential for making a dierence
in the world. Verizon is in the center of a powerful transformation, and is well
positioned to create long-term value for our customers, shareowners and communities.
Lowell McAdam
Chairman and Chief Executive Ocer
Verizon Communications Inc.
VERIZON COMMUNICATIONS INC. 2012 ANNUAL REPORT
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