Business Model

From designing to operating large-scale projects: Astaldi’s integrated supply makes the most of its internationally renowned abilities.

In a fast-evolving world, Astaldi Group addresses the market today with a business model able to exploit the Group’s skills and to promote geographical diversification, with a philosophy of contract acquisition which guarantees a growing reward profile.

Astaldi offers its customers a totally integrated supply, from design to financing, development, maintenance, and operation, with internationally recognised skills and expertise, for every segment of intervention. This approach allows the Group to pursue sustainable levels of profitability, by acquiring contracts awarded according to a variety of elements.

Making the most of the Group’s abilities with EPC contracts

The new Strategy Plan aims to gradually shift the backlog to EPC (Engineering, Procurement, Construction) contracts which, by their nature, better lend themselves to make the most of the Group’s construction ability.

Managing a project in a complete and integrated way, from construction to maintenance, allows the Group to protect, over time, the value of the work it performs.

To get the most out of its strategic skills, the Group has brought together different procedures for its operation, usually implemented separately in the construction and concession business.

This integration makes it possible to provide continuity for the projects already started and to exploit interdisciplinary skills – with regards tobuilding infrastructure, and around structured finance, risk management and operative management – that are translated into offers increasingly integrated with the Constructions area.

Diversification as value creator

Balanced geographical business diversification is yet another growth driver. Along with the already established segment diversification, geographical diversification has the purpose of positioning the Group in areas and segments marked by different development cycles and capable of being compensated on an aggregate basis, with consequent benefits in terms of the activities’ overall risk profile.

The Group thus aims to get the most out of its current geographical presence and its expertise in order to focus its commercial effort on areas and segments with a high growth potential. The Group will, on the whole, maintain a dual approach to the market: this calls for, on the one hand, consolidating its presence in countries with stable economies and well-defined investment programmes, while on the other hand seeking opportunities in emerging markets that offer significant growth potential. These are currently identified as Iran, Vietnam, Indonesia, and Cuba. Geographical diversification will allow the Group to reap the benefits of the interesting risk/performance dynamics in the countries where it operates, in order to create a balanced order backlog that can guarantee a growing performance profile.

Operating revenue by geographical area at 31 December 2017

EUR/millions% of total revenue
Italy 700 24.3%
International 2,188 75.7%
  Europe 1,032 35.7%
  Americas 1,060 36.7%
  Asia (Middle East) 3 0.1%
  Africa (Algeria) 93 3.2%
Operating revenue 2,888 100.0%

Operating revenue by business segment at 31 December 2017 

EUR/millions% of total revenue
Construction 2,802 97.0%
  Transport Infrastructures 1,705 59.0%
  Hydraulic and Energy Production Plants 458 15.9%
  Civil and Industrial Construction 286 9.9%
  Industrial plants 353 12.2%
O&M 86 3.0%
Operating revenue 2,888 100.0%

Last updated: Jul 11 2018