ALCATEL-LUCENT TO FOCUS ON IP NETWORKS AND BROADBAND ACCESS

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·         The Shift Plan to reposition Alcatel-Lucent from a telecommunications 
equipment generalist to an industrial specialist in IP Networking  and 
Ultra-Broadband Access (mobile and fixed) at the heart of next-generation 
networks 
·         The Shift Plan to refocus Group innovation, with IP Networking and 
Ultra-Broadband Access representing 85% of R&D investment in 2015 
·         The Shift Plan to apply a clearly differentiated management approach 
to Core Networking segment (IP routing, IP  transport, IP  platforms and 
associated services) businesses managed for growth, and Access segment- 
including wireless and fixed access – and “other “ segment, managed for cash 
and focused on Ultra-Broadband Access
-         Core Networking segment: more than 15% increase in revenues targeted 
to over Euro 7 billion in 2015 (2012: Euro 6.1 billion); more than 12.5% (2012: 
2.4%) targeted operating margin in 2015 
-         Access and “other” segment: over Euro 250 million targeted segment 
operating cash flow in 2015 (2012: Euro 115 million cash negative)  
·         The Shift Plan targets Euro 1 billion in fixed cost savings and asset 
sales of more than Euro 1 billion over 2013-2015 
·         The Shift Plan targets Euro 2 billion in debt reprofiling over 
2013-2015 and future debt reduction of Euro 2 billion  
New Delhi, June 19, 2013 - Alcatel-Lucent (Euronext Paris and NYSE: ALU) today 
announces ‘The Shift Plan’, a detailed three-year plan to reposition the 
Company as a specialist provider of IP Networking and Ultra-Broadband Access, 
the high-value equipment and services that lie at the heart of the 
high-performance networks of tomorrow.  
The Shift Plan will mobilize the full range of Alcatel-Lucent’s assets and 
resources to achieve a decisive shift in the Group’s industrial focus that will 
concentrate the Company on the priorities of its telecommunications customers 
as they deploy next-generation networks to address the explosive growth in 
bandwidth-hungry data traffic. This new focus on the fast-growing business 
segments of IP Networking, cloud technologies and Ultra-Broadband Access will 
be delivered by a management team organized around full profit-and-loss (P&L) 
and cash accountability. 
Importantly, The Shift Plan entails a clearly differentiated approach to the 
management of high-growth businesses – Core Networking – as opposed to those 
that will be managed with cash generation as the clear priority. The ‘managed 
for cash’ businesses will include key wireless, fixed access and other 
businesses that will play an important role in the Company’s medium and 
long-term development. Specifically, the Company expects that this will create 
enhanced opportunities for its LTE and ‘FTTx’ businesses. 
The Shift Plan will capitalize on Alcatel-Lucent’s recognized innovation 
assets, particularly its research laboratories, Bell Labs, while equipping the 
Company with the appropriate means to fulfill its ambitions. 
The key components of The Shift Plan include: 
·         A refocusing of the Group’s R&D spending on IP Networking and 
Ultra-Broadband Access with an increased emphasis on co-development with major 
customers and partners, while at the same time significantly reducing spend on 
legacy technologies
·         Euro 1 billion in targeted reductions in the Group’s fixed cost 
structure concentrated on actions to reduce sales, general and administrative 
(SG&A) expenses, refocus  R&D and improve operational efficiencies
·         Selective asset sales intended to generate at least Euro 1 billion 
over the period of the plan
·         Aiming at reprofiling the Group’s debt (Euro 2 billion) and, once the 
Company has clearly demonstrated the successful execution of The Shift Plan, a 
future reduction in debt (Euro 2 billion), to guarantee over the long-term 
financial sustainability. 
Commenting on The Shift Plan, Alcatel-Lucent CEO Michel Combes said: “Today we 
are taking comprehensive action to position Alcatel-Lucent at the heart of the 
digital ecosystem, a place from which we will be able properly to capitalize on 
our many strengths. The Shift Plan is fundamentally an industrial plan that 
also addresses the Group’s operational and financial challenges by putting in 
place a strong and fully accountable leadership team with clear goals and the 
appropriate levers to deliver on these goals and on our commitments to all 
stakeholders.” 
Michel Combes added: “With The Shift Plan, which is designed to be 
self-funding, we are aligning realistic and deliverable ambitions with our core 
competencies. Over the next three years we are targeting Euro 1 billion of 
fixed costs savings, and carefully defined and timed asset sales expected to 
generate at least an additional Euro 1 billion.” 
Under The Shift Plan, Alcatel-Lucent is planning to grow its revenues in Core 
Networking by more than 15%, from Euro 6.1 billion in 2012 to over Euro 7 
billion in 2015, while lifting its operating margins in this segment from 2.4% 
in 2012 to more than 12.5% in 2015. 
Over the same period, a strategic focus on cash management in wireless, fixed 
access and other businesses – emphasizing investment in 4G LTE, vectoring and 
fiber-based access systems while significantly reducing R&D spending on legacy 
technologies – is expected to deliver positive segment operating cash flow of 
more than Euro 250 million in 2015.  
Michel Combes, who was appointed CEO on April 2, 2013, also announced that 
effective July 1, Philippe Guillemot is joining Alcatel-Lucent’s Leadership 
team as Senior Executive Vice President, Operations. Philippe Guillemot is a 
highly-regarded professional who has worked for a number of major, global 
businesses including Michelin and Valeo, where he held senior executive roles. 
He was also Chairman and CEO of Areva T&D.  
Pending the appropriate information and consultation processes in a number of 
countries, Alcatel-Lucent’s management structure will be reorganized into four 
main business lines: IP Routing & Transport, IP Platforms, Wireless and Fixed 
Networks. These businesses will be supported by group-wide functions focused on 
Operations, Sales and Strategy & Innovation.  
The Shift Plan in detail: 
An IP Networking and ultra-broadband specialist 
Alcatel-Lucent aims to refocus to manage for growth its IP Routing, IP 
Transport and IP Platforms businesses and associated services. Alcatel-Lucent 
also plans to focus its Wireless and Fixed Access businesses on Ultra-Broadband 
access and manage these businesses – as well as its Other Businesses Segment – 
for their ability to generate cash under the plan. 
The Shift Plan reflects fast-changing trends in the telecommunications 
industry, where service providers and large-scale Internet concerns handle 
ever-expanding volumes of data as the market migrates from networks built 
largely for voice communications. Under the Plan, Alcatel-Lucent is adapting to 
the evolving market by placing its IP, cloud and ultra-broadband portfolio at 
the center of its operations. This will include WDM, 100G, IMS and customer 
experience product lines, as well as the ‘FTTx’ group of fiber-based 
connectivity technologies serving homes, businesses and other types of 
premises, vectoring, the 4G LTE mobile wireless access and small-cells. 
Alcatel-Lucent’s Bell Labs will serve as the innovation engine to facilitate 
growth in these key areas. Research and Development (R&D) will be concentrated 
on IP Networking and Ultra-Broadband Access, with an 8% increase in R&D from 
2013 through 2015, these areas representing 85% of R&D investment in 2015. 
Exits from legacy technologies are to be accelerated in close cooperation with 
the relevant customers. The Company also plans to focus on in-house start-ups, 
as well as on partnerships and co-developments (such those as in 
cyber-security).   
Customer focus 
Alcatel-Lucent’s new product and platform emphasis is expected to enable it to 
target a wider range of customers beyond its traditional base of large 
telecommunications operators. 
The Company plans to redesign its sales and marketing strategy to take 
advantage of the new portfolio focus, identifying new and profitable market 
segments where Alcatel-Lucent’s leading-edge innovations in IP and cloud will 
allow it to better address Tier 2 to Tier 4 service providers, benefit from 
all-IP networks transformation with MSOs (Mobile Service Operators), and 
address the telecommunications needs of web-scale customers and extra-large 
enterprises.  
The Company expects that successful implementation of The Shift Plan will 
improve Alcatel-Lucent’s go-to-market approach, resulting in a business that is 
better leveraged.  Targeted improvements will be made in key metrics, such as 
the number of sites and an increased ratio of sales through channels. 
Path to financial sustainability 
By refocusing on Core Networking, Alcatel-Lucent aims to deliver - in 2015 - 
revenues of more than Euro 7 billion from these businesses with an operating 
margin exceeding 12.5%. The Access segment (including patent licensing and 
managed services) and Other businesses segment (including Enterprise) are 
expected to generate a positive segment operating cash flow of more than Euro 
250 million by 2015.  
Alcatel-Lucent aims at reducing its fixed-cost base by Euro 1 billion between 
2013 and 2015 through the adoption of direct-channel operations, additional 
consolidation of SG&A (sales, general and administration) functions, and by 
refocusing its R&D capacity.  Other actions will be undertaken to reduce the 
Company’s real estate footprint, and drive efficiencies in project delivery, 
back-office IT systems, supply chain management, manufacturing and procurement. 
Further exceptional cash inflows of at least Euro 1 billion are expected from 
the selective monetization of assets, including potential disposals, over the 
period of The Shift Plan. 
Following the establishment of a dedicated profit center for Alcatel-Lucent’s 
intellectual property portfolio, the Company also plans to adopt an 
entrepreneurial approach to licensing in order to develop a solid revenue 
stream from its library of more than 30,000 patents and 16,000 applications. 
On a cash basis, The Shift Plan is expected to be self-funding over the 
2013-2015 period. 
The Plan also includes a Euro 2 billion reprofiling of the Company’s debt over 
2013-2015 by actively capitalizing on attractive international debt market 
opportunities. Once the Company has clearly demonstrated the successful 
execution of the Shift plan, it plans to seek a reduction of its debt by 
approximately Euro 2 billion including through further asset disposals or 
through access to the equity markets in order to support its long-term 
strategic goals. 
The outlook and objectives for Alcatel-Lucent included in The Shift Plan 
replace the outlook referenced in the section 6.8 of the Company’s 2012 
Document de Référence. 
New Management and Operational structure 
The Shift Plan implementation entails the reorganization of Alcatel-Lucent, 
subject to relevant information and consultation processes applicable in 
certain countries.  
As part of this new organization, the Company will be managed by a new 
Leadership Team headed by CEO Michel Combes. The team will be organized as 
follows: 
Business Lines
-       Basil Alwan, IP Routing & IP Transport 
-       Andrew Mcdonald, IP Platforms
-       David Geary, Wireless
-       Federico Guillen, Fixed Networks  
Transversal functions
-       Philippe Guillemot, Operations
-       Philippe Keryer, Strategy & Innovation
-       Robert Vrij, Sales 
Corporate functions
-       Nicole Gionet, Human Resources 
-       Tim Keller, Legal 
-       Paul Tufano, CFO of Alcatel-Lucent, will step down from his role once 
implementation of The Shift Plan is under way. 
Michel Combes said: "Paul has played a pivotal role in the Company's financial 
stabilization. We are extremely grateful for his dedication as CFO over close 
to five years. Paul has chosen to move on for personal reasons, and we wish him 
the success he deserves in doing so. In the meantime, we will work closely 
together to ensure a smooth succession to a new CFO."
Michel Combes concluded: “The Shift Plan redefines Alcatel-Lucent’s industrial 
identity and clarifies its role in the technology ecosystem. The goal is now 
set, and we can focus, with all the Alcatel-Lucent employees, on its delivery 
and on finally fulfilling the Company’s potential to create substantial and 
enduring industrial, social and financial value for all stakeholders.” 
Editorial note : Implementation of a number of initiatives included in The 
Shift Plan is subject to the relevant information and consultation processes 
applicable in various geographies 
About Alcatel-Lucent (Euronext Paris and NYSE: ALU)                    
The long-trusted partner of service providers, enterprises and governments 
around the world, Alcatel-Lucent is a leading innovator in the field of 
networking and communications technology, products and services. The company is 
home to Bell Labs, one of the world's foremost research centers, responsible 
for breakthroughs that have shaped the networking and communications industry.   
Alcatel-Lucent innovations are regularly recognized by international 
institutions for their positive impact on society. In 2012 and for the second 
year running, Alcatel-Lucent was named one of the Thomson Reuters Top 100 
Global Innovators, recognition for the company’s continued addition to its 
world-class patent portfolio, one of the largest in the telecom industry. 
Alcatel-Lucent has also been recognized for its sustainability performance.  In 
2012 the company was ranked Technology Super sector Leader by the Dow Jones 
Sustainability Index. Through its innovations, Alcatel-Lucent is making 
communications more sustainable, more affordable and more accessible as we 
pursue our mission of Realizing the Potential of a Connected World.              
With operations throughout the world, Alcatel-Lucent is a local partner with 
global reach. The Company achieved revenues of Euro 14.4 billion in 2012 and is 
incorporated in France and headquartered in Paris.                        
 
 
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