Romania’s UTI Grup brings core values to wider region

21 years since its foundation, UTI is one of Romania’s most important companies and is ready to become a powerful player across Central and Eastern Europe

 

Founded in 1990, UTI is one of the greatest and most innovative companies in Romania. Innovation and investment in research and development (R&D) have been the engines that led to the constant and organic growth of the company. Focused on four industrial segments, UTI’s growth has been fast, well-structured and palpable.

Transparency and integrity have always been core values with UTI, a company that sells more than just technology. It also sells constancy – its own – and trust, the capital all UTI clients invest into the company. UTI’s partners and clients can always count on the company to provide reliable and sound services as well as state-of-the art products and solutions. UTI is now mature enough to get involved in complex and challenging projects, agile enough to quickly adapt itself to the changes of the market and entrepreneurial enough to continue to innovate and develop.

In 2005, the company welcomed a foreign investor, AIG Investment Fund – currently PineBridge Investment – which took over 27.02 percent of the UTI shares, providing not only financing, but also significant support in helping UTI grow at a much faster pace and participate in Central and Eastern Europe’s regional expansion and consolidation. Also, in 2005, UTI developed a bold business strategy that at the beginning of 2011 was adapted and improved. Among its objectives, the most important are to continue its international development and to go public with a regional stock exchange.

Moving into new territories
Although not listed yet, UTI has adapted its business management to the principles of effective corporate governance. Since 2005, it has implemented the appropriate business management rules to sustain transparency, integrity, ethics and responsibility.

UTI ensures transparency of the activity results by providing complete and timely financial reporting. The financial results of the holding are periodically reported by the management team. Since 2005, UTI has implemented a strong audit process by adopting both internal and external audit procedures, which aim to sustain the transparency of the financial reporting and the transparency of the management act. UTI invested in an ERP System provided by Oracle in order to ensure the interconnectivity of the various processes and to secure reliable reporting over the performance of its activity.

UTI has implemented a ‘Code of Ethics’ that attests the integrity and ethical behavior of its companies and executives towards those affected by the groups’ results: clients, suppliers, shareholders, management and employees. Compliance with the code is reviewed every year. As of 2006, UTI has implemented a stock-option plan which enables management and key people to access the group’s results.

Responsibility is ensured during the management selection process, where competence and commitments are taken into account when appointing management bodies. Tasks and responsibilities of the executives are well defined in the companies’ deeds, resolutions, management contracts and internal rules.

The management bodies of UTI companies have a clear annual agenda and a meetings schedule that shows wide activity, covering reporting, monitoring of the operational activity, control and compliance with the business management rules. Control of the executives is performed by the representatives of the shareholders and internal audit bodies.

The departments involved in the corporate governance of UTI are now setting the grounds for going public by improving the business management system, improving the organisation of management, risk assessment and control bodies and improving organisation of the public reporting.

Determined to consolidate its position as a regional player, UTI has been developing several projects abroad over the last two years that complete the existing portfolio. Thus, it significantly increased its portfolio and its vertical operations, which are divided into several market segments and are capable of serving any client of any size.

The key to successful activity abroad is to replicate projects already implemented in Romania, while adjusting them to the needs of the client. The traffic management solutions implemented successfully in several cities in Romania will be replicated in the Polish city of Szczecin. The telephone number portability solution has already been implemented in Albania after its successful implementation in Romania and electronic identity security solutions will also be implemented in Albania at a later date.

Another acknowledged project in Romania, digital tachograph personalisation solutions, have been developed for the authorities in Moldavia, Bulgaria, Uzbekistan, Ukraine and Serbia. The locally-proved competencies in airport solutions have been replicated for Varna Airport in Bulgaria. Also, in line with the objective of international development, UTI has opened two international offices in two regions of great interest: Poland and Azerbaijan. The company currently has operations in 10 countries and a portfolio made up of diversified clients and projects.

Robust through recession
UTI’s goal is to expand its operations in specialised markets and invest more in R&D. A R&D work group has been developed and it has been charged with elaborating the operational strategy and maintaining the relationship with the market, identifying strategic partnerships and commercialisation opportunities. The group functions as an idea-exchange hub, where employees from different areas evaluate ideas, products and selling strategies.

This activity, coupled with the activities conducted by the Strategic Business Development Department, (business farming, key accounts relationship management, cross-selling and supply chain management) is meant to consolidate the clients’ trust in UTI’s capabilities, generate and maintain long-term relationships with major accounts and expand UTI business worldwide, by an integrated approach, using UTI’s synergies and technological potential.

The most profitable year in UTI’s history was 2010, despite the deep economic crisis. The outstanding results were maintained for 2011 as well: The total turnover amounted to €153m, while EBITDA amounted to €19.5m, the EBITDA margin reaching 13 percent.

UTI’s core values
Because UTI is aware that no company is successful without active social involvement, it makes a great effort to address the community needs and improve its quality of life. UTI does not see corporate social responsibility as an obligation, but as a way to help others and to earn the respect of the communities it operates in.

This is the reason why the company founded the UTI Foundation – the legal vehicle for UTI’s social responsibility campaign in various fields: Education, art, health, community partnerships and giving campaigns. To make the world a better place, not only through technology, but also through caring and support, UTI attracts partners and clients in socially responsible areas. Entrepreneurship, visionary management and leadership, initiative and integrity are core values of UTI, a company that opened new markets in Romania and contributes to the consolidation of various markets both in its home country and abroad. Its diversified business portfolio, leadership and discipline, resilience and audacity are the factors behind the company’s growth and the clients and partners’ trust.

International development priorities
– Middle East countries
– Central European countries – through UTI Poland
– CSI countries – through UTI Moldova
– Balkan area countries – through UTI Romania

UTI business lines
UTI is a holding of powerful and flexible companies, capable of offering a wide and complex range of customised products and services. UTI has 20 years of experience on the national and international markets and its competencies in various fields are covered by its four business lines: Homeland and defence security, information technology and communications, traffic management and construction and facility management.

Homeland and defence security
Represents UTI’s core business, providing security systems for critical infrastructures based on its proprietary equipments, software applications and signal processing technologies. UTI is also the contractor of choice for any defence project, as its engineering capabilities are unique and long-standing. In addition, UTI provides physical security solutions for retail and industrial areas.

Information technology and communications (IT&C)
This business line adopts a challenge-oriented attitude and pushes the limits of IT&C from software development and systems integration to underground telecoms infrastructure. With an excellent track record of the successful implementation of complex IT&C projects, UTI is a major IT&C regional player.

Traffic management
Mobility, safety and a clean environment are essential components of any intelligent traffic management solution. To balance these three aspects, UTI provides adapted urban and inter-urban traffic control and management solutions that address the growing need for innovative and efficiency in traffic solutions.

Construction and facility management
Thanks to this business line, UTI has become an important name on the building installations market and is about to become a well-known player on the construction market as well. The customised solutions are enhanced by the facility management services provided for all UTI projects.