Material Information | Porto | November 28, 2011
Strategic Plan Update
The deep aggravation of the economic and sector context and
the deterioration of the financing availability and
conditions in Portugal created the necessity for an update/
adaptation of Soares da Costa Group's (SDC) strategic
plan.
The adequacy of the strategic plan presented on September
2010 is, in general, based on a strong focus on the
construction activity and on the Group's core markets or
geographies. Therefore, strategic guidelines are
now mainly orientated to INTERNACIONALIZATION, CONSTRUCTION
business area and FINANCIAL SUSTAINABILITY of our
activities:
Maintain growth in Africa
The Group maintains as target to establish a partnership in
the Angolan market which will leverage SDC's experience in a
market with a solid growth potential. We also maintain the
diversification to the infra-structures and to other regions
beyond Luanda goals, which in fact are already in place.
Concerning other African markets, the Group is investing in a
sustainable growth in Mozambique, taking into consideration
our position in the market and this economy's positive growth
prospects, and in an opportunistic presence in other African
markets.
Organic Growth in the Brazilian market, with and acquisition
planned in the medium term
In accordance with the strategy presented last year, SDC has
already been awarded two works in Brazil, which are being
developed, but simultaneously continuing to search for
additional opportunities in a market with high growth
potential and attractive margins. This initial activity, and
its future organic growth, will allow the Group to gather
experience and operational knowledge of the market and its
players. As previously highlighted, the entrance in the
Brazilian market creates an additional geographical platform
to the Group, enhancing diversification from risk exposure to
the African markets, which will be intensified with an
acquisition, in the medium term, of a local company.
Continue Operating in the U.S., with a focus on
profitability
The Group will continue to invest in its activity growth in
the North American market, namely in the infra-structures
segment, for which there are good prospects, based on the
public/ government
spending plans. Strategy for this market will continue to be
based on geographical expansion of Prince's
1
activity beyond the Florida: Georgia State, in which the
company is already operating with several works, and Texas,
in which commercial activity was already initiated.
Nevertheless, management's focus is now on the improvement of
the operational activity profitability. Additionally to the
good opportunities foreseen, SDC considers that the exposure
to this more developed and mature market is a positive
feature to the constitution of a more balance business
portfolio.
Postponement of new investments in Energy and Environment
The investment in new business in the energy and environment
areas was one of the strategic guidelines announced in 2010,
with some achievements since then: acquisition of a majority
position in a ESCO (Energy Service COmpany), Selfenergy, and
the award of four mini-hydraulic dams exploitation
concessions in Portugal. However, further investments in
these areas are for now postponed. Investments in the waste
and building materials should not also be realised by the
Group.
Alienation of Assets
SDC maintains as a strategic guideline the alienation of non
strategic/ core and/ or nature assets, already initiated in
2010 and from which resulted, inter alia, the sale of a
minority stake in BAI.
Minimization of capital needs in Concession projects
Although recognising the role on this business area as a
contributor to the construction, and leveraging of the
technical skills developed by the Group, management wants to
have an active presence in the infra-structure concessions
market. Nonetheless, will be given priority to the
development of alternative financing models for concession
projects: search for financial partners, preference for
projects with a structure that allow a limited equity
investment from the Group.
Reduction of Structure Costs
Although implicit to the strategic plan previously announced,
taking into consideration its current strategic nature,
management decided to include the reduction of structure
costs explicitly as a guideline. Given the rapid
deterioration of the domestic construction market, the Group
will intensify the reduction of structure costs/ fixed costs
in the construction business area, also including shared and
corporate services areas, reduction/ reallocation of workers
and cutback of other operational costs (external supplies,
etc.)
With these updated strategic guidelines, management expects
to assure a growth pace to the Group's activity compatible
with the external conditions, namely financial conditions,
protecting profitability level and allowing, by the end of
the implementation period of the plan, to attain an
expressive
indebtness level reduction.
2
The Group's turnover evolution show reflect these strategic
choices, being expected by 2015 a turnover with a dominantly
international profile (more than 80% of the consolidated
turnover), based on the construction activity and with a
growth prospect expressed in a CAGR 2010-15E slightly above
5%.
Is also management's explicit goal to reduce net debt (namely
through the reduction of the recourse net debt), currently
above the sector's reference figures, and to extend its
maturity profile. This reduction should be more expressive
from 2013 onwards, targeting a net debt to EBITDA ratio of
5.6x by 2015.
Grupo Soares da Costa, SGPS, SA
3
distribué par | Ce noodl a été diffusé par Soares da Costa SGPS SA et initialement mise en ligne sur le site http://www.soaresdacosta.pt. La version originale est disponible ici. Ce noodl a été distribué par noodls dans son format d'origine et sans modification sur 2011-11-28 10:12:25 AM et restera accessible depuis ce lien permanent. Cette annonce est protégée par les règles du droit d'auteur et toute autre loi applicable, et son propriétaire est seul responsable de sa véracité et de son originalité. |
Documents associés | |
Grupo Soares da Costa, SGPS, SA informs on Strategic Plan Update |