Following completion of the first efficiency improvement program which brought PLN 1bn OPEX reduction over 2010-2012 the TAURON Group is launching another one. Its execution over 2013-2015 should bring approx. PLN 860m OPEX reduction.
The efficiency improvement program for 2010-2012 covered all segments and referred to many aspects of the Group’s operation, including the very popular Voluntary Redundancy Program. These actions had a significant impact on good financial results recorded by the TAURON Group.
“The results achieved by the TAURON Group from the introduction of the program confirm that such actions are effective. It is enough to say that during the past three years our EBITDA increased and net profit for 9M 2012 was 8% higher compared to net profit for the entire 2011 and almost 50% higher than net profit for the entire 2009. Next to acquisition of GZE assets, it was the cost reducing actions that contributed to our results’ increase”, said Dariusz Lubera, President of the Management Board at TAURON Polska Energia.
“Efficiency improvement is one of our priorities; it is also a significant element of our strategy. We are aware that the overall objective, which is increase of our company’s value for shareholders, cannot be achieved in such difficult economic circumstances without firm actions”, added Krzysztof Zawadzki, Vice-President of the Management Board, CFO at TAURON Polska Energia. “We keep on taking new actions aimed at further increase of the Group’s competitive edge and becoming the leader in terms of OPEX efficiency”, he added.
In line with the new efficiency improvement program for all lines of business within the Group, we will further optimize processes related to operating activities and aimed at OPEX reduction, also shared processes will be centralized. Thanks to the effect of the scale, the above actions will help achieve synergies in the form of additional savings. This refers to such processes as procurement, IT, financial and accounting services, as well as management of non-production assets. In addition, internal restructuring actions are continued in the Group, whose aim is to achieve optimum asset base in particular lines of business and additional synergies in the coming years.
The TAURON Group estimates that the scale of savings under the new efficiency improvement program will increase every year. In 2013 it should amount to approx. PLN 240 million, in 2014 to over PLN 290 million and in 2015 to over 330 million. Total estimated reductions should amount to approx. PLN 860 million. Similar to the already completed program for 2010-2012, the Group expects to reduce operating expenses in most segments – the largest reductions to be achieved in Distribution and Generation.
One of the elements allowing to achieve savings will be continuation of Voluntary Redundancy Program.