Mota-Engil presents New Strategic Plan “AMBITION 2.0”
Mota-Engil presented a Strategic Plan taking into account new challenges based on internationalization as the main support to growth, which is expected to exceed 3 billion euros in 2015.
As all phases of the work promoted internally for strategic reflection have been implemented, Mota-Engil presented its new Strategic Plan “Ambition 2.0” which will be in force until the year 2015.
THE REASONS FOR HAVING PREPARED A NEW PLAN
Jorge Coelho justified the development of a new Strategic Plan with “the fulfilment of the great majority of objectives of the Plan in effect, the change in the economic environment with strong repercussions in financial markets and the actual change to the profile of the organization with the recently implemented organizational model.” Jorge Coelho said that “with the knowledge that only thinking about the future in a timely manner can we ensure that we continue to follow an appropriate strategy to meet the new challenges”.
THE NEW CHALLENGES
The update of the strategic guidelines promoted through the implementation of Plan “Ambition 2.0” seeks to address the major challenges resulting from its strategy, including:
1. To establish a single and global financial policy based on sustainability and value creation;
2. To expand internationalisation based on the new organisational model;
3. To consolidate the “non construction” business areas in each region according to a logic off diversification;
4. Efficiency in the Organisation and excellence in the management of people;
THE STRATEGIC PILLARS OF PLAN “AMBITION 2.0”
In relation to the strategy pillars, the following guidelines are included in the document:
I. International expansion
1. International expansion in priority areas of action: SADC area, Latin America and Central Europe, fostering growth in each country where the Group is present as a priority, taking advantage of the knowledge and operating experience.
2. Organic growth rather than acquisitions, by promoting prospecting activities in peripheral markets and within regions defined as strategic, in which we can benefit from the level achieved, with more emphasis on Africa and America.
3. To replicate the Group’s business model in Portugal to each international market depending on the opportunities, fostering business growth and global profitability in each market.
4. To promote constant strategic reflection in
1. Maintenance and consolidation of the current portfolio of the Environment and Services area as a process of marking its leadership in all areas in which the Group operates in Portugal.
2. To continue to support Ascendi in its consolidation process as global operator and manager of transport concessions.
3. Growth in each region of the Environment and Services, Energy, Mining and Transport Infrastructures Concessions business areas to expand the value chain in each market and increase global profitability depending on the opportunities and financing capability in each region.
4. To strengthen partnerships thus lending an impetus to the diversification process and reinforcing the financial capacity of international growth in each area of priority action.
III. ORGANISATION AND MANAGEMENT OF HUMAN CAPITAL
1. To consolidate the new organisational model as mainstay of the development of a structure capable of meeting the challenges of a growing internationalisation.
2. The Group’s transversal and single management model with the financial area responsible for monitoring performance and for the process of technical and operational harmonisation of management processes and the assessment of the risk matrix to be established together with the entities responsible for each region.
3. Centralised human resources management as support to the universalisation of models and policies, and each region being responsible for adapting and customising procedures according to the Holding’s guidelines.
4. Focus on people via a human resources development management to promote talent, foster meritocracy and ensure geographical and functional mobility of staff as fundamental support in the international expansion process.
GOALS AND GUIDELINES FOR 2015
As a result of the strategic guidelines, the goals that establish a growth of 45% by 2015 are set, supported by a strong international expansion complemented by the ongoing diversification of various business areas in each region. It is expected that Mota-Engil hight achieve a turnover of over 3,150 billion euros and an EBITDA of around450 million euros in that year.
According to Jorge Coelho, “we want to continue our international expansion strategy as it is the only way to achieve these goals and we are examining new markets, with a focus on Africa and Latin America”.
› To maintain the current portfolio whilst a diversified Group
› To be a leader in the sectors in which it operates as the basis for the creation of scale for the internationalisation process of the various segments
› To cooperate with the other geographies rendering technical support to new markets or projects
› To expand activity within the regional scope of the SADC area
› To focus on dimension projects for private multinational groups associated to mining
› To expand activity in Angola, Mozambique and Malawi to areas such as Environment, Logistics and Energy as support to the construction and management of infrastructures
› To maintain a leading position in Poland whilst regional market and platform
› To analyse diversification opportunities in Construction and related segments
› To extend the analysis of the activity in the region to neighbouring markets, a process limited to profitability and financing guarantees
› To increase the Group’s activity in line with the region’s economic potential
› To maintain for the cycle till 2015 the operating sphere for the current markets
› Infrastructures (road and rail) and Mining works as the main focus of the activity
Strategic Plan “Ambition 2.0” has been presented internally to different levels of the organization through meetings and encounters within the scope of the “Entre Nós” programme. At institutional level, the Group secured meetings with journalists, financial analysts and through meetings with investors in London, New York, London, Paris and Cape Town.