Financial Data

Financial Data

Transparency comes through our numbers

                                                

We faced many challenges in the year just ended. Our Group was operating in a complex economic environment, with the first part of the year still affected by the consequences of the spread of the global Covid-19 pandemic and, from February 2022, by events related to Russia’s invasion of Ukraine. On one hand, we experienced complexities particularly in the supply chain, on the other we saw inflationary dynamics increase.

This economic context aggravated an already difficult global situation related to the scarcity of materials, their general increase in cost and that of energy. All of these factors required significant effort and impacted on our ability to improve on our already strong financial and operating results.

Despite this scenario, the Group continued to grow in 2022, reaching the volume forecasts of the 2021-2025 Strategic Plan ahead of schedule. This was possible thanks to the strength of our target markets, agriculture and construction equipment first and foremost, but above all thanks to our ability to offer our customers solutions that are increasingly technological and capable of improving the efficiency of the vehicles to which they are applied.

Turning to the numbers, 2022 saw revenues exceed 760 million euros, up 18.3% from 2021, with Ebitda of 59 million euros, up 7%. These results could have been even better if the supply chain had been in a position to support the increased production capacity of our factories.

The most significant events of last year included the new INEOS Grenadier off-road axles production start-up in Maniago (Siap) and the simultaneous start-up in Rovigo (Agritalia) of John Deere, Massey Ferguson, Claas and Valtra brand specialised tractors with engines meeting the new European Stage V diesel engine emission standard.

To support this new development phase, we invested nearly 42 million euros last year, a marked increase from 31 million in 2021. A key strategic choice to ensure production capacity and technological development to meet market demands.

Carraro’s industrial activities are currently being expanded with the utmost consideration for a sustainable approach, with a particular focus on our ecological-environmental impact. This is why the Campodarsego plant has invested in technologically advanced and highly efficient systems that optimise energy consumption and significantly improve the flexibility of the production area. Take, for example, the new low-impact robotic painting system recently commissioned here at our headquarters. Most importantly, the new Group Energy Plan, which aims to enable new self-generation systems and supply solutions, significant improvements in reducing the impact of our processes and reductions in plant-level consumption. Today, as always, the focus is on the strong relationships we have with our customers around the world. This is made possible by the Group’s ability to continually invest in research and innovation.

In 2022, moreover, we committed more than 4% of our turnover to R&D, focusing on the development of technologically advanced transmission systems and specialised tractors for markets with significant development potential.

No fewer than 30 projects were carried out last year by our 220 employees in R&D centres around the world. Examples include low power agricultural transmissions (up to 75 HP) dedicated to electric tractors or transmissions for tractors with higher power (up to 130 HP) and continuously variable transmissions (CVT). And also the new ranges of axles for combine harvesters, medium-power tractors, or portal axles, predominantly used in the transition from two-wheel drive (2WD) to four-wheel drive (4WD) tractors in India or other emerging markets. In addition, the same effort has been made in the construction equipment sector, for example with the new compact transmissions for aerial work platforms, a sector with significant potential, or the new axles for telescopic forklifts intended for both the North American and European markets.

In this context, the new modular transmission concept “THE” (Transmission Hydrostatic Electric), which was developed during 2022 and unveiled at international trade fairs with excellent feedback, deserves special mention. A truly innovative solution that allows manufacturers (OEMs) to be able to configure their vehicles in either hydrostatic or electric versions without having to make changes to the chassis. And it is precisely in the area of electrification that our expertise is growing, step by step. Just consider the special components we are making for new ranges of high-tech electric trucks, or the development of transmissions intended for zero-impact agricultural tractors.

In line with this process, in December 2022 we signed a 32 million euros loan agreement with the European Investment Bank (EIB) to support R&D projects with a focus on ecological transition, on one hand, and the Group’s digital transformation, on the other. But then, alongside product development, we must also highlight the evolution of our internal processes, which are in the midst of an important phase of change. I am not just referring to the dematerialisation of certain analogue activities, but to a real evolution that is taking place within our Group on a daily basis. Because it is no longer, as it might have been in the past, a subject that is only related to the Information Technology area. Here we are really in the midst of a huge process of mindset change.

Change has always been part of Carraro’s Values and DNA. Our human capital has always made the difference. This has led to extensive training courses for both production workers and office staff. And this is why we have launched a number of initiatives dedicated to people, in line with our sustainable growth strategy. I am thinking, for example, of the inclusion awareness programmes. Among them, I would like to mention the small project launched with the Down Dadi Association of Padua, a very interesting organisation working with people with disabilities. It began with an intense and interactive theatrical performance for our employees, in which actors with Down’s syndrome took to the stage.

An opportunity for first-hand experience and understanding of the value of diversity through a truly meaningful event. And this was just a first step because soon a number of Carraro people will be involved in an experiential training programme together with young people from Down Dadi. A powerful experience that I am sure will leave its mark.

As on other occasions, I would like to close this new letter with a thought for the Group’s employees, who are at the centre of an important phase of evolution. Every day I see a new awareness growing among our people. An awareness that is essential if we are to take a step forward together, ready to face the changes necessary to best deal with any eventuality that may come our way. Ready to build the future of the Carraro together.

Enrico Carraro
Chairman