KONČAR ELECTRICAL INDUSTRIES Inc.Zagreb, Croatia

CONTENTS:

Basic data

Ownership structure

Management Board and organisational chart

Production programme and areas of implementation

Sales of products and services

Corporate values

References

Major current contracts

Contact

BASIC DATA

• 1921 Founded as ELEKTRA Inc., Zagreb• Until 1946 SIEMENS• 1946 - 1990 RADE KONČAR• Since 1991 KONČAR – ELECTRICAL INDUSTRIES Inc.

• Today:– 21 subsidiaries and 4 affiliated companies in Croatia– Companies and representative offices abroad in:

Bosnia and Herzegovina, the Czech Republic, Switzerland,Russia, Serbia and Montenegro and Bulgaria

– 4,000 employees

OWNERSHIP STRUCTURE

€ 131,3 mil

€ 10,6 mil

€ 77,9 mil

€ 7,4 milKONČAR

Electrical Industries Inc.

Shareholders:

As per 31.12.2005.

SUBSIDIARYCOMPANIES

AFFILIATEDCOMPANIES

Domestic investors 80%

Foreign investors 20%

Capital Fund (PBZ ) 29%

Croatian PrivatisationFund 9%

HZMO 15%

Other shareholders 47%

MANAGEMENT BOARD

Darinko Bago President of the Management Board

Marina Kralj Miliša Legal Affairs and Human Resources

Jozo Miloloža Financial Affairs

Davor Mladina Business Area Industry and Trade

Božidar Piller Business Area Energy and Transport

Vladimir Plečko Corporate Development and ICT

KONČAR Electrical Industries Inc.

ENG. FOR PLANTINSTALLATION&COMMISS.

ELECTRIC VEHICLES

METAL STRUCTURES

ELECTRONICS ANDINFORMATICS

INSTRUMENTTRANSFORMERS

DISTRIBUTION ANDSPECIAL TRANSFORMERS

SWITCHGEAR

MEDIUM VOLTAGEAPPARATUS

HIGH VOLTAGESWITCHGEAR

GENERATORS ANDMOTORS

POWER PLANT AND EL.TRACTION ENGINEERING

ENERGY ANDTRANSPORT

LOW VOLTAGE SWITCH.AND CIRCUIT BREAKERS

SMALL ELECTRICALMACHINES

ELEVATORS ANDSERVICES

TOOLS

CATERING EQUIPMENT

HOUSEHOLDAPPLIANCES

INDUSTRY ANDTRADE

INFRASTRUCTUREAND SERVICES

INSTITUTE FORELECTRICAL ENG.

DEVELOPMENTAND SERVICES

SWITZERLAND

THE CZECH REPUBLIC

BULGARIA

COMPANIESABROAD

RUSSIAN FEDERATION

BOSNIA ANDHERZEGOVINA

SERBIA ANDMONTENEGRO

REPRESENTATIVEOFFICES

TERMOTEHNICS

EX- PROOFEQUIPMENT

POWERTRANSFORMERS

ASSOCIATEDCOMPANIES

AREAS OF IMPLEMENTATION

• Energy and transport

• Industry

• Households and public facilities (hotels, hospitals, schools, etc.)

• Other

PRODUCTION PROGRAMME

• PLANTS

• ROTATING MACHINES

• TRANSFORMERS

• SWITCHGEAR

• ELECTRIC TRACTION

• IT AND COMMUNICATION

• HOUSEHOLD APPLIANCES AND CATERING EQUIPMENT

• OTHER PRODUCTS

PLANTS

• Hydropower plants

• Transformer substations

• Thermal power plants

• Pumping stations

• Dispatching centres

• Servicing, refurbishment, reconstructionand overhaul of plants

ROTATING MACHINES

• Generators and motors

• Medium electric machines

• Small electric machines

• Excitation systems and voltage regulatorsfor synchronous generators

• Metal constructions

• Servicing, refurbishment, reconstructionand overhaul

TRANSFORMERS

• Power

• Distribution

• Special

• Instrument

• Maintenance and services

SWITCHGEAR

• High voltage switchgear and assemblies

• Medium voltage switchgear and assemblies

• Low voltage devices and assemblies

• Maintenance and services

ELECTRIC TRACTION

• Vehicles

• Vehicle equipment

• Contact network power supply plants

• Equipping of railway tracks and stations

IT AND COMMUNICATIONS

• SCADA systems, dispatching centres, localand remote plant control systems

• Microcomputer control devices• Remote stations• Electrical values measurement devices and systems• Distribution microcomputer safety• Uninterruptible power supply devices and systems• Communication devices and computer networks• Business IT systems and integration• Servers• Personal and portable computers• IT related training

HOUSEHOLD APPLIANCESAND CATERING EQUIPMENT

• Household appliances manufactured in ourfactories

• KONČAR brand household appliances

• Catering equipment

SALES OF PRODUCTS AND SERVICES

0

50.000

100.000

150.000

200.000

250.000

300.000

2001 2002 2003 2004 2005 plan 2006

Energy and transport Other

In 000 EURO

EXPORTS

0

20.000

40.000

60.000

80.000

100.000

120.000

140.000

2001 2002 2003 2004 2005 plan 2006

In 000 EURO

EXPORT SALES IN 2005

39%

15%

9%37%

EU Neighbouring countries Arabic countries Other countries

Other countries 35%

Saudi Arabia 3%

Czech3%

Sweden 3%Nigeria 3%

Bulgaria 3%

U.A.E 3%Macedonia4%

France 4%

Serbia&Montenegro 7%

Slovenia 8%

B&H 17%

Germany 7%

MOST IMPORTANT EXPORT MARKETSFOR THE PERIOD 2001-200565% of total sales is marketed to 12 countries

CORPORATE VALUES

• Research and development

• Highly educated and experienced staff

• Production:- “tailor made”products– complex solutions– creativity– based on individuals

• Individual approach to buyers

• Social responsibility

RESEARCH AND DEVELOPMENT

• Research and development institute

• Scientific-research projects in cooperationwith University and other institutions

• 90% of the products – resulting from KONČARresearch and development

• “Know-how”

• Production technologies

PEOPLE – THE GREATEST POTENTIAL

• Staff comprising more than 4,000 employees

• 1,150 employees with university and higherdegrees (7 Dr.Sc., 47 M.Sc., 470 B.Sc.Eng, etc.)

• 120 scholarship holders

• Permanent professional improvementin language skills, IT literacy, managerialand other professional and specialisedknowledge and skills, creativityencouragement

• Objective: a company of knowledge- company’s success is reflected in asuccessfulperformance and satisfaction of staff

SOCIAL RESPONSIBILITY

• Sustainable development (achievement of economic objectives inoptimal environmental conditions, coupled with a permanenttechnological advancement)

• Care about people at their working places and during working hours,as well as during their leisure time

• Activities in the environment in which the production processtakes place (community)

• 14 companies within KONČAR possess ISO 14001 certificates, thusstanding as a proof of meeting the highest world norms in the field ofpreserving and protecting human environment

QUALITY MANAGEMENT

• Meeting clients’ requirements through the delivery of products andservices in keeping with the contracted price, delivery time and quality

• Permanent improvement of products and processes

» Production and delivery of products and services,which exclude unacceptable risks for theenvironment, health and safety

» Involvement and motivation of all employees

» Each company of the Concern is individuallyresponsible for maintaining its quality (ISO 9001)and environment (ISO 14001) management systems

ISO CERTIFICATES

+KONČAR-Electrical Industries

+KONČAR-Catering Equipment

++KONČAR-Switchgear

++KONČAR-Low Voltage Switches and Circuit Breakers – Location Zlatar

+KONČAR-Low Voltage Switches and Circuit Breakers

+KONČAR-Engineering for Plant installation Commissioning

++KONČAR-Instrument Transformers

++KONČAR-Metal Structures

++KONČAR-Small Electrical Machines

+KONČAR-Household Appliances

++KONČAR-Power Plant and Electric Traction Engineering

++KONČAR-Institute for Electrical Engineering

++KONČAR-Generators and Motors

+KONČAR-Infrastructure and Services

++KONČAR-Electronics and Informatics

+KONČAR-High Voltage Switchgear

++KONČAR-Medium Voltage Apparatus

+KONČAR-Electrical vehicles

+KONČAR-Elevators and Services

++KONČAR-Distribution and Special Transformers

++KONČAR-Tools

ISO 14001ISO 9001

REFERENCES - HYDROPOWER PLANTS

• More than 145 references in the field of hydropower plants in Croatiaand abroad, as well as 385 synchronous generators delivered withinstalled rated power of 12,370 MVA

• Some more significant references:

HPP HADITHA, 6 x 128 MVAIraq

HPP ĐERDAP, 3 x 190 MVA,Serbia and Montenegro

HPP SHIRORO, 4 x 176,5 MVANigeria

HPP MESSOCHORA, 2 x 90 MVAGreece

REFERENCES - THERMAL POWER PLANTS

• 175 turbo generators with installed power of 5720 MVA• More significant references:

TPP DRMNO, 1 x 410 MVASerbia and Montenegro

TPP UGLJEVIK, 1 x 353 MVABosnia and Herzegovina

TPP PLOMIN 2, 1 x 247 MVACroatia

TPP-TO NOVI SAD, 1 x 194 MVASerbia and Montenegro

REFERENCES - TRANSFORMER SUBSTATIONS

• 420 kV– TS FASSA IRAN– TS ELBASAN ALBANIA– TS ERNESTINOVO CROATIA– TS ŽERJAVINEC CROATIA

• 245 kV– TS GURUN MALASYA– TS GERGA EGYPT– TS KALUBIA EGYPT– TS MRACLIN CROATIA

• 132 kV– TS SONG SONG MALAYSIA– TS TALATA MAFARA NIGERIA– TS KHAJEH RABE IRAN

REFERENCES TRANSPORT – VEHICLES

• LOCOMOTIVES:– 333 diode type 120 - 160 kph– 16 thyristor type 160 kph

• OVERHAUL, RECONSTRUCTION ANDREFURBISHMENT– 370 locomotives, of which thyristorisation of:– 60 BoBo locomotives– 6 CoCo locomotives

• TRAMCARS16 pcs (with DC traction and chopper)9 pcs low floor (with asynchronous induction drivers)

• ELECTROMOTOR TRAINS 28 pcs(overhaul, reconstruction and refurbishment)

REFERENCES - INDUSTRY

• More than 100 references regarding:- pumping stations- shipbuilding and construction industries- petrochemical industry- compressor substations- oil production and processing

oil pipelines and gas plants- quarries and mining

• in Russia, Egypt, Iraq, Algeria, Croatia,Serbia and Montenegro, etc.

MAJOR CURRENT CONTRACTS - ENERGY

• HPP CARIBLANCO COSTA RICA

• HPP BOŠTANJ SLOVENIA

• HPP KOZHNER KOSOVO

• RHPP VELEBIT CROATIA

• S/S LUSHNJA & UZNOVA ALBANIA

• S/S VAU & DEJES ALBANIA

• S/S DUJMOVAČA (GIS 123kV) CROATIA

• HPP MOSTARSKO BLATO B&H

MAJOR CURRENT CONTRACTS - TRANSPORT

• 70 pcs LOW FLOOR TRAMCARS CROATIA

• THYRISTORISATION OF 34 pcs, 4-AXLELOCOMOTIVES SERBIA AND MONTENEGRO

• REFURBISHMENT OF 8 pcs, 6-AXLELOCOMOTIVES SERBIA AND MONTENEGRO

• REFURBISHMENT OF 6-AXLELOCOMOTIVES BULGARIA

• REFURBISHMENT OF ELECTRIC MOTORTRAINS CROATIA

• LEVEL CROSSING SAFETY EQUIPMENTCROATIA

MAJOR CURRENT CONTRACTS - INDUSTRY

• PUMPING STATIONS (electrical equipment):- 15TH OF MAY WTP EGYPT- ABU AUKEL AND ZAHRAA EL MAADI EGYPT- NORTH HELWAN WTP EGYPT- BEJAIA 2 MARINE ALGERIA

• WATER TREATMENT PLANT- KOZALA 1 (RIJEKA) CROATIA

• MOTORWAY EQUIPMENT CROATIA

• INDUSTRIAL PLANT ELECTRICAL EQUIPMENT

• PUBLIC FACILITIES

TELEPHONE SET 1947 PC 2003

CIRCUIT BREAKER 123 kV, 1954

CIRCUIT BREAKER 420 kV, 2003

TRANSFORMER 35 kV, 10 MVA, 1954

TRANSFORMER 400 kV, 300 MVA, 2003

HPP MARIBORSKI OTOK, 1948

HPP UNA, 2002

HEAD OFFICE

KONČAR – ELECTRICAL INDUSTRIES Inc.Fallerovo šetalište 22, 10000 Zagreb, Croatia

Phone: +385 (0)1 3667 188Fax: +385 (0)1 3667 196E-mail: koncar.head@koncar.hrWeb: www.koncar.hr