Identity

Company Name: Grupo Soares da Costa, SGPS, SA
Turnover in 2011: 873.5 million Euros

Corporate Description and Strategy
Grupo Soares da Costa, SGPS, SA is a corporation of equity capital, the majority of which is Portuguese, which manages a portfolio of companies in the sector of construction and public works.  The intent is to develop as an economical group of construction and services/concessions of international proportions, with levels of profitability and generation of stockholder wealth in line with the best global references worldwide.

The corporate structure is separated in three sub-holdings, corresponding to the following areas of business: Construction, Concessions and Real Estate.  With its permanent objective for profitability transaction by transaction, its success is based on sustainable growth, supported by a highly qualified professional team focused on diversification and innovation in every project. The corporation is proud to be the generator of economic, social, and intellectual value exploring for this synergies found within the Group in order to improve the operational efficiency and minimize operating costs.

The company currently develops the largest part of its activities internationally, with a permanent presence in the markets of Angola, Romenia and the United States of America (in the state of Florida). However, the search for new business opportunities in other locations is a constant, in civil construction or concessions where the values and engineering capabilities of Soares da Costa can constitute a competitive advantage.


Corporate Profile
- Grupo Soares da Costa, SGPS SA is one of the first three largest groups from the field of constructions and public works in Portugal.

- The Group has a strong internacional component (more than 60% of turnover is originated in non-domestic market), maintaing a permanent presence in the US (Florida) and Angola. In European terms, Soares da Costa is among the first 100 largest groups of construction, classifying itself in 2011 on the 48th place, according to the Europeans Power of Construction Publication.  

- The Group corporate structure is based on three sub-holdings, acording to three business areas: Construction, Concessions and Real Estate.

- Strong technical skills and orientation to the international market, as well as highly qualified human resources, have been key success of the Group.

Vision and Strategic Objectives
To be an economical group providing construction and services/concessions of international proportion, at levels of profitability and generation of stockholder wealth in line with the best worldwide references in the sector.

Mission
To correspond to market and client demands through a sustained business model, and through qualified and motivated personnel that generate economical, social, and environmental value, thus provisioning an attractive return on the stockholders’ investments.

Values
Group Soares da Costa is guided by the following values:
- Permanent focus on market and client satisfaction
- Management efficiency and efficacy
- Integrity and ethics
- Socially responsible behavior
- Respect for the environment

Business Portfolio
- Soares da Costa Construção, SGPS, SA – Construction and Civil Engineering.
- Soares da Costa Concessões SGPS, SA – Exploration of infrastructure of public works concessions.
- Soares da Costa Imobiliária, SGPS, SA – Real estate management and promotion.

Strategy
In general, Soares da Costa Group's strategy us 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 INTERNATIONALIZATION, CONSTRUCTION business area and FINANCIAL SUSTAINABILITY of our activities.

The strategic guidelines are the following:

- Maintain growth in Africa

- Organic growth in the Brazilian market, with an acquisition planned in the medium term

- Continue operating in the US, with a focus on profitability

- Postponementof new investments in Energy and Environment

- Alienation of non core/strategic and/or mature assets

- Minimization of capital needs in the Concession projects

- Reduction of structure costs

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.

The Group's turnover evolution show reflect these strategic choices, being expected by 2015 a turnover with dominantly international profile (more than 80% of the consolidated turnover), based on the construction activity. Is also an explicit goal of the current management team 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.