Investors

Electrica’s Board of Directors presented during the Extraordinary General Meeting of Shareholders (EGMS) in 9 July a document with the main elements of the Strategic Plan for the period 2015 – 2018.

This document reflects the Board’s vision concerning managing the activities in the stakeholders’ best interest, both on a long-term and a short-term basis.

This document details the goals and objectives of Electrica SA itself and with respect to its subsidiaries (together referred to as “the Group” or “Electrica Group”), its corporate strategic directions and the action plan (“the Action Plan”) that the Board intends to follow to achieve them.

The Strategic Plan has been formulated following an investigation of the following areas:

• The external environment, to determine the main environmental factors affecting this industry and the key drivers that can shape the future of the electricity market;
• Industry analysis, in order to identify future trends in the energy market, assess the market attractiveness and determine the critical success factors for competing and surviving in this market;
• Internal analysis of the Group, to assess its past and current performance (relative to other market players).

Based on the above analysis, the Board has formulated the corporate and business strategies of Electrica with respect to the Group, and has set out the strategic objectives and the action plan with measures that the Board intends to undertake.

Electrica’s corporate strategic directions with respect to the Group are presented below, and detailed in Section 6.1. Electrica aims with respect to the Group to:

• Preserve and enlarge the distribution and supply segments in Romania.
• Explore potential opportunities to expand the distribution and supply segments in the region.
• Enlarge the portfolio of the business, by developing “value-added services” related to distribution and supply activities, which can be offered to customers.
• Divest the unprofitable business segments and activities.

Electrica Group`s business strategy addresses three major strategic themes: operational excellence for efficiency and quality, ensuring a committed and qualified workforce as well as the highest standards in corporate governance. More details are presented in Section 6.2
The corporate level strategic directions and the strategic goals of Electrica with respect to the Group have been cascaded into strategic objectives. For each strategic objective, an action plan has been framed, alongside with Key Performance Indicators (KPIs). Electrica envisages the following strategic objectives with respect to the Group:

• Objective 1: To enhance the overall financial performance of the Group
• Objective 2: To achieve excellence in financial processes management
• Objective 3: To enhance the overall operational performance of the Group
• Objective 4: To increase the quality of services provided
• Objective 5: To improve employees’ productivity and support their development
• Objective 6: To support and provide the necessary means for implementation by the subsidiaries of the distribution segment investment programme
• Objective 7: Corporate Governance progress and enhancement of our sustainability profile

Some of these measures are presented below, while the detailed Action Plan can be found in Section 6.3 of this document. Under the Action Plan, Electrica aims to:

• Divest unprofitable business segments and activities and ensure implementation by the subsidiaries of the restructuring programme for the distribution and supply segments.
• Create a Shared Service Centre to centralise and optimise common support activities of the Group companies, within the legal framework.
• Ensure implementation by the subsidiaries of the distribution investment plan.
• Integrate various services and capabilities in the Groups’ operations to create new “value-added” services.
• Increase transparency and communication with all stakeholders.
• Implement an Information Security Policy at Group level.
• Identify and implement measures aimed at reducing headcount to achieve peers’ performance.
• Train the personnel and capitalise on their potential, expertise and capabilities to increase labor productivity.
• Continue the implementation of the Corporate Governance Action Plan agreed with EBRD.

You can read here the entire document named “Electrica’s Board of Directors’ Strategic Plan for the period 2015 – 2018”.