Koncar - Elektroindustrija D.d. · ZSE:KOEI
Koncar - Elektroindustrija D.d — KONČAR - Elektroindustrija d.d. — The Finest CEElection Investors Conference ONLINE DAYS 2022
39 slides from Koncar - Elektroindustrija D.d's conference presentation, October 2022
Slide 1: Inspired by challenge
Inspired by challenge The Finest CEElection Investors Conference ONLINE DAYS October 2022
Slide 2: Company overview
1 Company overview KONCAR Inspired by challenge
Slide 3: A century of excellence
A century of excellence • Since 1921 • Exporter to 130 markets worldwide • Synergy of knowledge, expertise and experience 1921 1946 2021 KONČAR – Electrical ELEKTRA Inc. Siemens Inc. Rade Končar Inc. Industry Inc. 1921 1991
Slide 4: Company at a glance
Company at a glance KONČAR GROUP 14 companies and TOTAL REVENUES 2 affiliated companies EUR 483 million (2021) 2 joint ventures EXPORT EMPLOYEES 60% of the total sales 3,640 revenues (2021)
Slide 5: Business segments
Business segments POWER RAIL POWER DIGITAL SOLUTIONS TRANSMISSION AND SOLUTIONS AND GENERATION AND PLATFORMS DISTRIBUTION INFRASTRUCTURE
Slide 6: Power generation
Power generation • Hydro power plants • Solar power plants • Wind power plants • Thermal power plants • Equipment manufacturing • Turnkey projects, maintenance, refurbishment, reconstruction and overhaul
Slide 7: Power transmission and distribution
Power transmission and distribution • Transformer substations • Equipment manufacturing • Customer-specific solutions • Construction, reconstruction, refurbishment and retrofitting of transmission and distribution power facilities • Turnkey projects, engineering, maintenance, training and 24/7 techn
Slide 8: Rail solutions and infrastructure
Rail solutions and infrastructure • Low-floor electric and diesel- electric multiple units • Low-floor trams • Equipment and components • Traction and station equipment • Rail infrastructure engineering
Slide 9: Digital solutions and platforms
Digital solutions and platforms • Dispatching centers • Monitoring and control for remote critical and urban infrastructure • SCADA • Communication systems and computer networks • UPS devices and systems • Smart city solutions
Slide 10: Key performance indicators H1 2022
2 Key performance indicators H12022 Further income and order intake growth
Slide 11: Key performance indicators
Key performance indicators Export Sales income +23.0% +20,2% Results strongly Backlog EBITDA impacted by one-off +14.2% +119.5% items Book-to-bill ratio Net profit 1.37 +205.5% Compared to 2021 Backlog as at 31 December 2021 * Excluding the impact of Dalekovod Group
Slide 12: Key performance indicators
Key performance indicators EBITDA EBITDA margin Normalized data: +20,2% 7.3% Excluding income from: • Sale of assets • Loss compensation income • Other provisions Net profit Net profit margin • Dalekovod transaction effects +20,8% 4.1% a total of EUR 19.3 million Compared to 2021 * Excluding the imp
Slide 13: EBITDA and EBITDA margin
EBITDA and EBITDA margin CAGR 44.7% CAGR 36.3% 40.0 EBITDA 20.0 Normalized EBITDA 35.0 mln EUR 30.0 15.0 25.0 mln EUR 20.0 Q1 - Q2 2022 10.0 15.0 excluding 10.0 5.0 Dalekovod Group 5.0 0.0 0.0 Q I-II 2019. Q I-II 2020. Q I-II 2021. Q I -II 2022. Q I-II 2019. Q I-II 2020. Q I-II 2021. Q I -II 2022. E
Slide 14: Key performance indicators
Key performance indicators KONČAR Index Dalekovod KONČAR Group Indeks in EUR 000 Q I-II 2021 Q I-II 2022 2022/2021 Q II 2022. Q I- II 2022 ∆ 2022/2021 • Strong growth trends sustained Operating income 216.806 277.951 128,2 34.971 312.922 96.116 144,3 despite volatile macro environment Sales income -
Slide 15: H1 highlights
H1 highlights 6.0% Year-on-year the share of costs of raw 70.0% Share of operating expenses materials and commodities in sales income 60.0% 4.0% is 5.1 pp higher 50.0% 40.0% Q1 - Q2 2021 Q1 - Q2 2022 2.0% 30.0% 0.0% 20.0% Costs of raw Cost of goods sold Other external Staff costs materials and costs
Slide 16: H1 highlights
H1 highlights • In June, an agreement worth EUR 65 million was signed with Iraqi Ministry of Electricity for the revitalization of Haditha hydropower plant. • Haditha is the largest hydropower facility in terms of installed power and was built by KONČAR in the mid- 1980s. • The agreement marks a ret
Slide 17: H1 highlights
H1 highlights • Integration of Dalekovod Group into KONČAR Group launched • Further organizational developments - the digital segment of KONČAR - INEM (development and sales of software solutions) has spun off into a new subsidiary KONČAR - Digital • General Assembly of KONČAR - Electrical Industry
Slide 18: CROBEX and KOEI-R-A trajectories
CROBEX and KOEI-R-A trajectories 130 120 116 110 101 100 90 80 70 60 50 2021-06-29 2021-07-29 2021-08-29 2021-09-29 2021-10-29 2021-11-29 2021-12-29 2022-01-29 2022-02-28 2022-03-31 2022-04-30 2022-05-31 2022-06-30 KOEI index CROBEX index
Slide 19: Markets overview
3 Markets overview KONCAR Inspired by challenge
Slide 20: Markets overview
Markets overview Zagreb Market presence
Slide 21: Order intake growth continues
Order intake growth continues… 400.0 350.0 Order intake Book-to-bill ratio 300.0 250.0 CAGR 11.5% 1.37 mln EUR 200.0 Following the 150.0 integration of 100.0 Dalekovod, income 50.0 increased by an 0.0 additional EUR 34.9 Q I-II 2019. Q I-II 2020. Q I-II 2021. Q I -II 2022. million with a rise in Inc
Slide 22: KONČAR Group backlog grew 33.9%
KONČAR Group backlog grew 33.9% 900.0 800.0 CAGR 11% 700.0 With the integration 600.0 428.2 of Dalekovod Group, 500.0 278.3 backlog increased by mln EUR 400.0 approximately 264.7 254.9 EUR 133.4 million 300.0 200.0 363.5 334.1 100.0 237.9 212.2 0.0 30.6.2019. 30.6.2020. 30.6.2021. 30.6.2022. Croatia
Slide 23: New order intake by countries and regions
New order intake by countries and regions EU countries +56.0 EUR million % growth/decline Germany 48.5 +76% Sweden 27.1 +30% Spain 21.8 +465% Non-EU countries +12.4 EUR million % growth/decline Great Britain 16.1 +159% Export share 61.5% Norway 4.1 +164% Switzerland 3.7 +76% Neighbouring countries +
Slide 24: Export growth across all markets
Export growth across all markets • Export accounts for 61.5 percent of the total 140 +13.9% product and service sales income. 120 Export by continents • The most significant export volume realised in the 100 German market, amounting to EUR 26.6 million or 16.9% of total export. 80 mln EUR • The most
Slide 25: Sales income by segments
Sales income by segments 000 EUR Realised Share Realised Share • Power transmission and distribution - Segment Q I - II 2021. in total Q I - II 2022. in total great results in income and order intake Power generation 28.728 12,2 28.020 8,8 Power transmission and distribution 154.601 65,8 204.536 64,
Slide 26: Sales income by segments
Sales income by segments 000 EUR • The transformer segment achieved excellent results with EUR 49.9 million Power transmission and distribution income growth, despite surging prices of commodities and raw materials (copper, Power generation aluminium, transformer sheet, transformer oil, steel), soar
Slide 27: Dalekovod integration
4 =a Dalekovod integration KONCAR Inspired by challenge
Slide 28: Dalekovod
Dalekovod Initial recognition and one-off effects • Following the session of the General Assembly of Dalekovod d.d., the conditions for acquiring control over Dalekovod Group companies and integration into KONČAR were met as at 1 April 2022. The Supervisory Board and the Management Board were consti
Slide 29: Dalekovod
Dalekovod Dalekovod results for Q2 2022 only were integrated into KONČAR Group financial statements • Income in the amount of EUR 35.0 million • EBITDA amounting to EUR 1,7 million • Net profit stands at EUR 0.1 million • Dalekovod boosted exports to Sweden (by EUR 9.0 million) and Norway by EUR 8.5
Slide 30: Future outlook
5 Future outlook KONCAR Inspired by challenge
Slide 31: Research and strategic development
Research and strategic development KONČAR Group 2020+ Integral Strategy has introduced the initiative Advancement of research, development and innovation (RDI) capabilities. KONČAR - Electrical Industry Inc. as the parent company is dedicated to investments in strategic research projects which will
Slide 32: Sustainability
Sustainability as the core of our business continuity Decarbonizing Decarbonized products, Climate neutral Decarbonized servises and solutions for own operations supply chain our business our customers • Inclusion & diversity • Training & education • Human rights Responsible • Conservation of • Heal
Slide 33: Sustainability
Sustainability as the core of our business continuity • As the regional leader in technological development and a company where social responsibility is deeply rooted in day-to-day operations, we are constantly developing new advanced solutions and business models that benefit of the community and t
Slide 34: Sustainability
Sustainability as a business opportunity • KONČAR – Electrical Industry Inc. and all Group companies pursue sustainability strategy in their operations. • Transition to a clean circular economy and active participation in responding to climate change, constitute an integral part of the vision and st
Slide 35: Sustainability
Sustainability as a business opportunity • KONČAR – Electrical Industry Inc. and all Group companies pursue sustainability strategy in their operations. • Transition to a clean circular economy and active participation in responding to climate change, constitute an integral part of the vision and st
Slide 36: New product development for the green transition
New product development for the green transition • Hybrid trains • Battery-powered trains • Trams with increased battery autonomy • Railway battery chargers for hybrid and battery-powered trains • Resonant power converters for renewable energy applications • Submersible aggregate with generators • N
Slide 37: Sustainability
Sustainability EU Taxonomy • In accordance with Taxonomy Regulation, KONČAR Group, publishes key performance indicators of the KONČAR Group for 2021 in connection with services linked to economic activities that are deemed sustainable. Income CAPEX OPEX 23% 29% 44% 56% 71% Eligible Eligible Eligible
Slide 38: Future outlook
Future outlook • The priorities of KONČAR Group in the period ahead remain the same • Strong income growth with a further focus on export markets, profitability growth and the launch of a new investment and development cycle with a focus on sustainable development • By integrating Dalekovod into the
Slide 39: Thank you for your time!
Thank you for your time! KONČAR - ELECTRICAL INDUSTRY Inc. Fallerovo šetalište 22, 10000 Zagreb Tel: +385 1 3655 555 e-mail: ir@koncar.hr www.koncar.hr
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