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Importante

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Future challenges

The business actions of the EPM Group will be developed more and more in changing and dynamic environments and settings.

Among the main topics identified that will have an impact on the development of the Group’s future businesses, perhaps the most important is the fact that, in every market, there is a regulatory activity and stakeholders that become more and more demanding in terms of service quality, value proposals and efficiency levels. The expectation of our Users is to have more competitive public utility fees as an enabling factor of the development of the markets in which the organization operates.

From the geopolitical viewpoint, the following topics will be equally relevant: the evolution of the Peace Process and the elections of governors and mayors in Colombia, which will necessarily bring adjustments to the local and regional politics; as well as the reforms that are being conducted in important countries for the future growth of the Group, as it is the case of Mexico, Chile and Brazil.

The economy adjustments, the impact of the exchange rate volatility, the decrease in the oil prices and the deceleration of the world demand due to the low growth level in China and Europe are aspects that must be taken into account, along with an increase of the tax requirements, in the organization’s operations.

Despite the foregoing, the most important challenge that the EPM Group will face in future years is the change dynamics in its main businesses. The technological evolution will stimulate the advance in its global trend markets, as it is the case of the distributed generation, the energy efficiency and the broader use of clean energies, with an increasingly growing trend of the environmental demands. This will bring important challenges and opportunities to two representative businesses of the Group: energy distribution and generation.

This outlook presents huge challenges and opportunities for making the Group more sustainable. Some of the strategic imperative aspects for 2015 are the crystallization of business diversification opportunities, the consolidation of the organization as a business group, the increase of the participation in the energy generation business in Central America, the incursion into new geographies, and the incorporation of businesses with non-conventional renewable energies.

The organization will strengthen the teamwork culture as a key element of its target culture, and it will set the foundations for a new talent management model (which will be necessary for achieving the expected growth) in matters of career design and follow-up, training plans, succession plans and compensation plans, all of which are key elements for the process of strengthening our organizational environment.