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Končar: Next year business growth and investments exceeding 60 million euros

The Supervisory Board of Končar – Elektroindustrija adopted the consolidated business plan for the company for 2023 at the proposal of the Management Board. As stated in the announcement, the plan for the next year has been developed in complex global circumstances and uncertainties such as the speed of the industry’s recovery from the effects of the coronavirus, the duration of the Russian aggression against Ukraine, and consequently the energy crisis and inflation trends. Despite this, further growth and development are anticipated in the coming year.

Revenue in 2023 is planned to exceed 760 million euros and is based on good contract coverage with which the company concludes the business year 2022.

The state of contracted jobs (backlog) at the end of 2022 is estimated at around one billion euros, and contracted jobs for realization in 2023 are estimated to exceed 610 million euros, indicating that contracted jobs account for more than 80 percent of planned revenue from the sale of products and services.

They state that exports continue to dominate total revenues, primarily to European Union countries. The countries where the largest part of the planned 434 million euros in foreign revenue is expected are Sweden, Germany, Spain, and Austria. Compared to previous years, the export plan for the Norwegian market has significantly increased, primarily due to the integration of Dalekovod into the Group.

In addition to revenue growth, one of the four strategic goals in the adopted strategy is investment in product development, technology development, and production capacities as a prerequisite for achieving the set sales plans.

The investment cycle continues in 2023, with a focus on investments in new equipment and machinery. The energy transition and green CAPEX result in investments aimed at improving energy efficiency and working conditions, including investments in photovoltaic power plants and the use of renewable energy sources. The importance of investing in research and development is recognized as a long-term investment in planned areas with the goal of sustainable and profitable business and ensuring new competencies, which will contribute to the stability and further growth of the group.

Among significant projects, the continuation of the development of environmentally friendly products in the field of electrical engineering, the development of equipment and components for battery and hybrid trains, and projects in the field of digital technologies are planned. Investments in the coming year are planned to exceed 60 million euros.

Investments in human resources, lifelong learning, and professional development, as well as acquiring professional and specialized knowledge, remain key factors in strategic thinking. In 2023, education costs are also projected at 1.2 million euros, and the hiring of 205 new employees, predominantly with higher education qualifications, is planned, which would result in a total of 4,885 employees by the end of 2023.

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