The year in which we celebrated our century of excellence ended with double-digit growth in all key performance indicators. Record-breaking revenue growth, combined with significantly greater profit compared to 2020, not only met but also exceeded our planned targets. KONČAR Group 2020+ Integral Strategy set a clear direction for the company’s future business performance.

KONČAR Group’s operations in 2021 showed great resilience and stability, achieving the best results in the history of the company. Complex macroeconomic environment is still under the great impact of the COVID-19 pandemic, which has reflected primarily in the supply chains disruptions and in soaring prices of key raw materials and commodities. Nevertheless, timely measures and activities have mitigated the negative effects on performance. A strong financial position, great order intake, adaptability to customers and suppliers, allowed us to meet our deadlines and regularly fulfil payment obligations, contributing to growth in the number of new orders and positive performance trend in 2022.

Total revenue generated in 2021 amounted to HRK 3,625.7 million, representing an increase of HRK 540.7 million (17.5%) compared to 2020. Revenue generated from sale of products and services in foreign markets amounted to HRK 2,063.0 million, representing an increase of 11.5% year-on-year. Share of export in revenue from sale of products and services amounted to 60%, two thirds of which pertained to EU countries. This is a good indicator of the fact that KONČAR Group’s products and solutions are certainly competitive in the area of power engineering and rail solutions. The company generated operating income (EBIT) in the amount of HRK 193.9 million, which was double than the 2020 EBIT. EBITDA amounted to HRK 291.2 million, representing an increase of HRK 109 million year-on-year. EBITDA margin is 8.4%. Order intake amounts to HRK 4,238.5 million. Book-to-bill ratio is 1.22. Backlog at the end of 2021 amounted to HRK 5,008.1 million, which represents an HRK 760.5 million (22.8%) increase compared to the value at the start of the year.

Numerous contracts were performed and concluded in 2021, both in the domestic and international markets. An HRK 330 million contract was signed with Hrvatska elektroprivreda for replacement of primary equipment in HPP Senj. KONČAR’s trams started running on the tracks of the city of Liepāja, commencing the performance of a contract for supply of a total of 14 trams for this Latvian city – 10 of which were supplied by end of 2021. A contract for supply of three generators for two small hydro power plants in Japan marked the company’s further step forward in the Asian market. An HRK 57.2 million project was contracted for the future production and R&D facilities of Rimac Automobili. The contract involves construction of a substation, relocation of existing overhead power line Rakitje – Tumbri 3 and construction of a new overhead connection line. Works also commenced in North Macedonia on the construction of a 400/110 kV substation in Ohrid. The substation will enable international connection with neighbouring Albania, which will further strengthen the region’s power system.  An HRK 63 million contract was signed with Vattenfall Eldistribution, the Swedish distribution system operator. The contract involves a very complex reconstruction of a facility at the Finnslätten substation in Västerås. Long-standing cooperation with ZET continued with the signing of a two-year framework agreement for maintenance of low-floor trams. The signed framework agreement is in line with KONČAR’s business strategy to build long-term relationships with its customers, important to ensure the best performance of KONČAR products during their useful life.

The excellent results achieved in 2021 are proof that even in the face of challenging and unpredictable circumstances, KONČAR – and this primarily means our employees – has the necessary knowledge, competence, professionalism and quality.

Investments in new technologies, new manufacturing processes and in people is the path that we will continue to take in our business activities, to the satisfaction of all our stakeholders.