MILAN, March 25 (Class Editori) — Rationalizing the geographical presence by focusing on markets that ensure growth and profitability in the medium and long term. This is what was established in the counter-plan "Awakening the Lion", developed by Caltagirone Group for Generali Group. It was underlined that the current "highly fragmented geographical presence creates great managerial complexity in terms of costs".
The in-depth revision of the geographical presence, as it was explained, is aimed at freeing up resources to reinvest in organic growth (and not just this) in high potential markets with a strong financial attractiveness. Consolidating the leadership in Italy, France and Germany, growing in Eastern Europe, China and India as well as developing the presence in the US, especially in the asset management sector, are also expected.
The plan devised by the Roman manufacturer for the Lion of Trieste leverages on five lines of action and aims in particular at reaching about 4.2 billion euros in profits in 2024, with a compound annual growth rate (CAGR) of earnings per share (EPS) in the period 2021-2024 estimated at over 14% through organic and non-organic interventions (organic EPS CAGR 2021-2024 over 11%); cumulative available cash generation of approximately 9.5-10.5 billion euros over the 2022-2024 period; approximately 1.5-1.6 billion euros in digital and technology transformation investments. There is also the target of annual cost reduction up to about 0.6 billion euros with a cost/income ratio of 55%. The dividends envisaged on Investor Day on December 15 for the three-year period 2022-2024 were confirmed, as well as the share buyback.
The plan aims at a central and administrative cost efficiency, with the immediate activation of a crash program based on the simplification of the holding structure and the organizational structure, the streamlining of "non-business" functions, the consolidation of IT processes and the retention of talent. The objective is to bring the cost/income ratio from the current 64% to about 55%, making Generali Group a benchmark in cost management.
Source:Class Editori
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