Strategy for 2009: From Growth to Liquidity

In view of the impact of the financial crisis, we have significantly revised our strategy for 2009 to shift our priorities from business growth to provision of the company’s liquidity.

The key priorities of our strategy in 2009 include:

maximisation of operating cash flows;
cost reduction;
effective working capital management.

Building Materials, Aggregates and Construction Services:

to retain, as much as possible, the sales volume and the market share through, inter alia, a flexible pricing policy;
to reduce the capex programme. However, we are planning to go on with our strategic investment project - the construction of a cement plant, with its long-term financing fully ensured;
to focus our marketing efforts on the infrastructure construction segment least affected by the crisis.

Real Estate Development and Commercial Real Estate:

to continue the implementation of all residential real estate construction projects started by the beginning of the crisis;
to temporarily suspend the implementation of housing projects currently at the design stage. We are planning not to proceed with construction work on such projects but will go on with design work, which does not require substantial costs. It will allow us to prepare the pipeline of the new development projects in a “sleep mode” ready to hit the market as soon as the economy start recovering and the demand increases;
to temporarily suspend the implementation of commercial property projects, which require substantial long-term investment;
to take part in tenders for the sale of mass market properties conducted by public authorities in the framework of social housing programmes.

Construction

Our housebuilding companies have a number of governmental orders for prefabricated housing construction. To increase the capacity utilization of our panel factories, we are planning to take an active part in panel housing construction tenders conducted by public authorities.