PROHA GROUP’S NEW GROWTH STRATEGY FOR 2011 - 2014
New Strategy in Nutshell - Presentation <PDF>
View Ilkka Toivola's presentation at the strategy briefing on February 17th <PDF>
Proha has defined its new growth strategy and long-term objectives. The Group has gained a solid market position as the provider of project personnel for major oil and gas companies’ large investment projects. The Group will expand its capabilities and know-how to serve the energy industry at large, with a special focus on nuclear and renewable energy sectors. The Group will expand its international operations by entering into new market areas during 2011 - 2014. Consulting units currently operating in several countries will be combined into one division in order to create strategic openings and to enable the planned growth. In accordance with the strategy, the name of the Group will be changed. The new name proposed by the Board is Dovre Group Plc. A worldwide unified brand for the Group will be developed.
To achieve the strategic objectives the Group has established three strategic development programs: Expansion of its services to the energy industry; Expansion of its international operations; and Development of its service portfolio.
Expansion to the Energy Industry
Investments in the energy industry will significantly increase in the future. This development will generate considerable growth opportunities for project management service providers.
The fastest growing sectors – renewable and nuclear energy – will be Dovre Group’s target markets in addition to the oil and gas industry. The Group already has assignments in both sectors, and our objective is to invest systematically in the growth within these sectors. Dovre Group has previously been commissioned as a consultant in wind and hydro power projects and has delivered its first assignments within nuclear energy. The energy industry presents a significant growth opportunity for Dovre Group, and the Group will broaden its service portfolio and capabilities in the industry to capture the opportunities.
Expansion of International Operations
International expansion is one of the Group’s core strategic programs. The target is to establish operations in the Middle East in 2011 and to serve customers on all the continents by 2014. The Group’s global expansion will be supported by acquisitions.
The management consulting unit in Norway and the project management consulting units in Finland and Sweden will be merged. In this way, we can offer a broader service portfolio to our customers in all Scandinavian countries as well as in other target markets.
The Group continues the development of its project management software. Safran is recognized in the oil and gas, and shipbuilding industries as a key partner for planning and managing large investment projects. Safran’s customer base includes major Norwegian corporations, and the company has succeeded in receiving orders also in North America. The aim is further international growth.
Previously started strategic initiative to become a global corporation will be strengthened with a unified corporate name and brand. The Board will propose to the Annual General Meeting to change the name from Proha Plc to Dovre Group Plc. If the meeting approves the name change, the new name will be implemented during the second quarter.
Global processes and ICT solutions will be further developed for efficient international operations. During 2011 financial processes of the Group will be standardized and the specific financial systems will be implemented during 2012.
Organization and Development of the Service Portfolio
The Group’s organization will be changed so as to consist of three divisions: Project Personnel, Consulting, and Software (previously two divisions: Oil & Gas Services and Software Solutions). The reorganization involves dividing the Group’s existing Oil & Gas Services division into two new divisions that will focus on project personnel services (Project Personnel division) and management consulting services (Consulting division). Camako Oy and Camako Data AB, both previously part of the Group’s Software Solutions division, will be integrated into the Consulting division. Safran Software Solutions AS continues under the Group’s new Software division. The reorganization will be implemented in early 2011.
Developing the service portfolio is aimed at providing a broader service offering based on the customer needs in each target market. The new consulting division is able to offer an expanded service portfolio to our customers in all Scandinavian countries. The broadened service portfolio will create a distinct competitive advantage and bring added value to our clients. This will deepen and widen our customer relations and enable long-term customer relationships. We will concentrate on the quality of the service as well as on the continuing improvement of customer satisfaction.
Long-term Objectives
The Group’s long-term objectives are an annual revenue growth of more than 10% in operations and a continuous improvement in the operating result to the level of 5-10% of net sales. In addition, we aim to achieve highest mark in customer and staff satisfaction in the field.
Proha Board of Directors
February 16, 2011