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Subtitle: Revenue in the first three quarters of 2014/15 slightly below the
EBIT significantly increased despite the lack of new large projects//
Agenda 2020 already in implementation, initial successes apparent//
Improved earnings and dividend distribution planned for the full 2014/15 fiscal
|2014/15 Q1-Q3: 1 | 2013/14 Q1-Q3 | +/- % | 2014/15 Q1-Q3 |
|April-31 December | | | |
|Revenues (in | 355.0| -2 %| 349.5|
|EBIT (in million | 8.6| +178 %| 23.7|
|Profit for the | | | |
|period (in million| -1.3| -| 1.0|
Vienna, February 25, 2015 - Kapsch TrafficCom AG (ISIN AT000KAPSCH9), listed in
the Prime Market of the Vienna Stock Exchange, experienced stable business
developments in the first three quarters with existing installation and
operation projects. The Kapsch TrafficCom Group was also able to obtain a number
of new orders in Australia during the third quarter, although new major orders -
upon which the innovation and growth plans are based - remained elusive due to
the lack of corresponding invitations to tender. The group-wide Agenda 2020,
which lays out the organizational and strategic plans for a future growth
course, has already contributed to an EBIT improvement during the current
Subtitle: Financial position
The revenue of the Kapsch TrafficCom Group during the first three quarters of
the 2014/15 fiscal year was EUR 349.5 million, slightly below the previous
year's value of EUR 355.0 million. In the segment Services, System Extensions,
Components Sales (SEC), the operation projects in Belarus and South Africa that
began in the previous year were instrumental in enabling an increase of 12.1 %.
In the segment Road Solution Projects (RSP), however, the decline in revenue by
43.1 % reflects the advanced stage of the existing large installation projects
and the lack of new major projects.
For this reason, the EBIT of the segment RSP remained negative at EUR -37.4
million, and it was not possible to cover the expenses for development work and
preparations for potential tenders. The fact that the EBIT at the Group level
nevertheless increased by an impressive 177.5 % to EUR 23.7 million is due - in
addition to the one-time effects at mid-year - to the two additional operation
projects as well as the initial successes of the realized cost reductions.
As in the first two quarters of the fiscal year, Kapsch TrafficCom Group was
forced again in the third quarter to record an impairment of the stake in Q-Free
ASA. The total impairments in the first three quarters of 2014/15 amounted to
EUR 18.5 million. The profit for the period, which was negative in the
comparison period of the previous year at EUR -1.3 million, only improved to EUR
1.0 million as a result. Due to this circumstance, the profit per share remains
negative at EUR -0.36.
Overall, the balance sheet of the Kapsch TrafficCom Group reflects a continual
improvement in the reporting period. The equity ratio rose from 37.6 % to 41.0
%, the net debt has been halved since the start of the current fiscal year and
cash and cash equivalents reached EUR 94.8 million at the end of the third
quarter. The net working capital declined significantly, and Kapsch TrafficCom
Group recorded a free cash flow of EUR 59.4 million for the reporting period.
These figures also reflect that there are currently no new large installation
projects to be financed.
Subtitle: Agenda 2020
In consideration of the changed market conditions, the Kapsch TrafficCom Group
has developed an intensive, group-wide agenda. This Agenda 2020 is intended to
quickly improve the profitability of the existing business while also laying out
a long-term growth strategy for the Kapsch TrafficCom Group. All associated
measures were identified in recent months and immediately put into action. The
key pillars consist of cost savings realized from both material and staff costs
alongside a further focusing of the portfolio in the area of intelligent
transportation systems (ITS). The initial successes can already be seen in the
EBIT for the first three quarters.
Agenda 2020 will also be reflected in the results for the full 2014/15 fiscal
year. On this basis, the executive board hopes to once again distribute
dividends, in contrast to the previous year.
In the coming 2015/16 fiscal year, Agenda 2020 should enable an EBIT margin of
roughly 10 %. The Kapsch TrafficCom Group views a cost structure corresponding
to the current revenue as the basis for this calculation, although the Group
will strive for growth even beyond this level.
The next months will be characterized by the continuation of existing projects.
The Kapsch TrafficCom Group also expects a further expansion of existing toll
systems, such as those in Belarus and Poland. In addition, several new ITS
systems are approaching their decision phases, including one large project.
The company also looks positively on the increasing attention being given to
toll systems within Europe. "Among other indications, the discussion in Germany
demonstrates the continued existence of the major trend of financing the
maintenance and expansion of infrastructure - an important market driver,"
explains Georg Kapsch, CEO of Kapsch TrafficCom AG. Kapsch TrafficCom also
remains engaged in active discussions with potential toll system customers and
expects these efforts to lead to successes as well.
The report on the first three quarters of fiscal year 2014/15 can be found under
Kapsch TrafficComis a provider of intelligent transportation systems (ITS) in
the application fields of road user charging, urban access and parking, road
safety enforcement, commercial vehicle operations, electronic vehicle
registration, traffic management and V2X cooperative systems. Kapsch TrafficCom
covers with end-to-end solutions the entire value creation chain of its
customers as a one-stop shop, from components and design to the installation and
operation of systems. The solutions of Kapsch TrafficCom help to finance
infrastructure, to increase traffic safety, to optimize traffic flow, and to
reduce environmental pollution from traffic. The core business is to design,
build and operate electronic toll collection systems for multi-lane free flow
References in 44 countries on all continents make Kapsch TrafficCom a recognized
supplier of electronic toll collection systems worldwide. As part of the Kapsch
Group, a family-owned Austrian technology group founded in 1892, Kapsch
TrafficCom, headquartered in Vienna, Austria, has subsidiaries and
representative offices in 33 countries, has been listed on the Vienna Stock
Exchange (KTCG) since 2007, and generated with more than 3,300 employees
revenues of EUR 487.0 million in fiscal year 2013/14.
For additional information: www.kapsch.net and www.kapschtraffic.com
Follow us on Twitter: twitter.com/kapschnet.
Further inquiry note:
Mag. Marcus Handl
Investor Relations Officer
Kapsch TrafficCom AG
Am Europlatz 2
1120 Vienna, Austria
Phone: +43 50 811 1120
Am Europlatz 2
1120 Vienna, Austria
Phone: +43 50 811 1705
end of announcement euro adhoc
company: Kapsch TrafficCom AG
Am Europlatz 2
phone: +43 1 50811 1122
FAX: +43 1 50811 99 1122
indexes: Prime Market
stockmarkets: official market: Wien