Today, however, the company is in a different phase, marked by the transformation and enhancement of our assets.
Often, the true value of a company can be temporarily hidden by current circumstances, valuation difficulties or market perceptions.
In the current market context, marked by volatility and dispersion in the valuations of different sectors, the ability to identify and value solid and resilient companies is essential as a measure of coverage and balance in investment portfolios. This premise fits with Dominion’s current moment.
He Strategic Plan 2023-2026 was conceived as a transformation process aimed at strengthening the foundations for future growth and
to adjust the risk and profitability profile of the group. This is a plan aimed at improving the visibility of the business value, optimizing capital allocation and reinforcing cash generation, key elements to guarantee solidity and the ability to generate sustainable value in different market scenarios.
The central axis of this plan is simplification.
Throughout recent years, decisions have been made in line with this objective, such as the divestment in non-strategic activitiesspecifically those with margins lower than the average of the group’s businesses as a whole and with a lower contribution to the overall value. The presence and our strategy in renewable infrastructures has also been reorganized, a segment where the
Asset valuation is especially complex, due to its heterogeneity in geographies and long maturation horizons, and has sometimes contributed to undervaluation.
A recent example is the renewable parks in Italy or in the Dominican Republicalready divested, which have allowed value to emerge for the company, and relevant learning to be extracted about the management and rotation of assets in this type of business.
In parallel, the presence in activities aligned with the circular economy and decarbonization. In these areas, both the fragmented structure of the European market and the strength of demand open an opportunity for consolidation and improved margins. The potential for growth in new geographies and the contribution to industrial sustainability are also relevant in the strategic redefinition.
Another important aspect of this simplification process is the improvement in the presentation and transparency of the business. The organizational redesign, which the company articulates in of the major strategic areasseeks to facilitate the valuation of each segment and the understanding of the different growth drivers and comparables in the market, and by external investors and analysts.
In multi-service and multi-geography companies like Dominionpart of the value may be diluted or not appreciated in its full dimension, making it difficult to adequately analyze or understand the business model. Therefore, efficient grouping and clear reporting have been prioritized, so that all assets, including minority stakes in sectors such as hospitals or infrastructure, are duly reflected in the group’s overall valuation.
At the level of corporate governance, the alignment of interests between management and shareholders constitutes one of the premises that value investors usually seek. In the case of Dominion, both the president and the CEO They are among the company’s main shareholders, which ensures a long-term vision and direct commitment to strategic decisions. This factor, together with the rigor
financial and recurring cash generation, provides solidity to the company in the face of the challenges posed by the current transformation cycle.
Therefore, beyond short-term volatility, our priority is to make the true value of Dominion visible, the result of solid assets, committed teams, talent retention and a vision aligned with the shareholder, to be fully reflected to our investors.