PARIS, October 19, 2011 /PRNewswire/ --
Philippe Salle, the Chairman and Chief Executive of the Altran Group, has presented his strategic plan for 2012-2015, targeting a return to profitable growth and the launch of twelve major projects.
The strategic revue carried out since Philippe Salle's arrival at the head of the Group in June confirms the high level of Altran's consulting expertise with regards technological innovation and advanced engineering and underscores the significant growth potential in the Group's field of activity. This revue has enabled management to identify numerous sources of potential performance improvement and prompted the launch of an ambitious growth and profitability action plan.
Boost sales - Revenue: more than €2.0bn in 2015
Enhance margins - EBITA: 11-12% of sales (at peak of cycle)
Cash generation - Free cash flow: 2-4% of sales
Sales will be driven initially by organic growth and, thereafter, by strategic acquisitions.
Altran will focus on six European regions (Germany, Belgium, Spain, France, Italy and the UK) and four industries (Automotive & Transportation, Aerospace & Defence, Energy & Healthcare, and Telecoms). The Group will also push the global development of its Product Life-cycle Management and Embedded & Critical Systems solutions.
Strategic refocusing will enable Altran to capitalise on its strengths and consolidate its position as European leader in engineering and innovation consulting.
Sales growth will also be driven by the growing momentum of technological innovation in the most advanced emerging markets, notably in China (via partnerships), and in India (where the Group plans to reinforce its existing offshore platform).
Margin enhancement and cash-flow optimisation will be underpinned by greater added value, tight control of operating costs, as well as a reduction in sales volatility (rendered possible by the geographic and sectoral redeployment of its activities). Measures will be undertaken to boost the gross margin, lower indirect costs as a percentage of sales and reduce the number of days of sales outstanding (DSO).
Cash thus generated will enable the Group to maintain debt at a limited level and cover future investments and acquisitions.
The implementation of this strategy will require the setting up of a new and more functional organisational structure centred around twelve major projects, focused on efficient research, client-based services and staff loyalty.
Link to original PR: http://www.altran.com/finance/strategic-plan.html