In 2022, the Company expects revenue from sale of products and services to reach HRK 3.78bn (c. +8% YoY)

Končar’s Supervisory Board accepted the consolidated business plan of the Group for 2022.

The business plan for 2022 is based on the substantial number of contracts concluded by Končar by the end of the business year 2021. The value of contracted projects (backlog) at the end of 2021 is estimated at approximately HRK 5bn, which represents a significant increase compared to the balance at the beginning of the year.

Končar Group is expected to end the business year 2021 with historically highest revenue from sales in the amount exceeding HRK 3.5bn. We do note that this is above our initial estimates for 2021.

In 2022, the Company expects revenue from sale of products and services to reach HRK 3.78bn (c. +8% YoY).  A further 5.4% growth in export revenue is projected, with export accounting for 60% of the planned revenue from sales. The EU market is expected to contribute the majority of 2022 income, with a planned share of HRK 1.5bn.

In terms of other markets, the Group plans to generate more income than predicted for 2021, with the greatest rise expected in neighbouring countries and on Asian and African markets. In 2022, the value of newly contracted transactions is expected to be HRK 4.4bn. The value of contracted transactions (backlog) at the end of 2022 is expected to reach HRK 5.6bn. The expected backlog provides a solid basis for achieving the Group’s strategic objectives until 2024

CAPEX

In accordance with the adopted Integrated Strategy of Končar Group, investments planned for 2022 amount to HRK 209m. We note that this is also quite above our initial estimates. The planned CAPEX pertains primarily to investments in plant and equipment, increased production capacities in several Group companies, continued digitalization, and further development of environmentally friendly products.

The majority of the planned investments will be financed using the Group’s own resources. The substantial number of contracts concluded, ensured liquidity and a stable balance sheet enable further growth and development of the Group in the next business year.

Priorities will remain the same in 2022 – organisation and continuation of production, compliance with the agreed-upon delivery deadlines, efficient cost management, reduction of carbon footprint, and, most importantly, protection of health and safety of employees and business partners if the pandemic continues in the coming year.