EuroBusiness Media (EBM): Altran, the world’s leader on the engineering and R&D market, is launching its strategic plan for the coming years, “Altran 2020. Ignition”. I have the pleasure of discussing it with the company’s Chairman and CEO today. Dominique Cerutti, hello. Could you tell us, first of all, how you see the market evolving over the coming years?
Dominique Cerutti: Actually, our industry, which we call Engineering and R&D Services, is just fascinating. It is fascinating for a couple of reasons. The first reason is, of course, the expected growth. We think our market will double in the next five years and that is driven by the absolute need that clients have to go faster, innovate better, differentiate themselves and bring the best of the planet in their own R&D. So that’s one side.
There is another interesting side, which is the level of value that the clients want us to deliver. They, of course, want us to be global, since they want to bring the best of the planet in their own R&D. They also expect us to be able to bring best practices from one industry to their own industry to accelerate the time to market. And they want us to focus aggressively on their business issues for solutions that are effective.
EBM: Now, it’s a very ambitious plan. Could you give us an idea of some of its key components?
Dominique Cerutti: Knowing what clients expect from us, we are going to focus on three key things. First, we are going to augment the value of what we deliver to the clients. To get that done, we are regrouping all the expertise, assets and intellectual property that we have at Altran, to rationalise, reinvest, so that we can then rechannel back to all clients when they need it, where they need it – augmenting the value.
Second, clients expect us to be more and more industrial and they want the best of the planet, so we are going to build the premier offshore capabilities of the planet that will take us a few years, but we will get that done.
And three, of course, is that we cannot be global without changing our size significantly in the key market, namely the USA, where we want to be significantly bigger, in the eyes of the key markets globally, and we will continue to press on in other strategic markets like Germany in Europe.
So, augmenting value, global offshoring and geographical expansion. Of course, we cannot do that without having our people motivated and even enthused, so we will continue to work on the way we motivate our people.
EBM: What about your commitments in terms of financial KPIs?
Dominique Cerutti: If we do what we have put in the plan the right way – and we will, because we will focus on operational excellence – we think we’re going to bring the level of offshore premier value creation to the next level. We will grow the revenue by 50% at least, directionally, taking the group to €3 billion by 2020, but we will do that by expanding the EBIT margin to a level which is unprecedented in this industry – I think we will target 13% EBIT.
EBM: Finally, could you tell us how you believe the plan is going to change Altran’s position on the market?
Dominique Cerutti: Interesting question. In two ways, I would say. First, this industry is remarkably fragmented. If we execute the right way – and we will – we will position Altran as the undisputed global leader in the Engineering and R&D Services. So that’s one.
Two, and maybe more importantly, we will position Altran as a real co-innovator, or joint innovator with the clients, again, bringing the best of the planet in their R&D, being able to transform part of their R&D when it is core but non-strategic, and bringing our assets and IP into solutions that can crack the core of their business issues. And that would be something different from what the industry has done for two decades in the past.
EBM: Dominique Cerutti, Chairman and CEO of Altran, thank you.
Dominique Cerutti: Thank you.
