EQS-News: Kapsch TrafficCom AG: Result for the first half of 2023/24.
EQS-News: Kapsch TrafficCom AG / Key word(s): Half Year Results
Kapsch TrafficCom AG: Result for the first half of 2023/24.
15.11.2023 / 07:15 CET/CEST
The issuer is solely responsible for the content of this announcement.
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Kapsch TrafficCom – Result for the first half of 2023/24.
Highlights.
• Cash inflow from settlement in Germany significantly improves financial position.
• Revenues of EUR 266 million at previous year’s level.
• Operating result (EBIT) increased to EUR 73 million.
• Outlook financial year 2023/24: Revenue growth in single-digit percentage range and
significant improvement in operating result (EBIT); further project tenders about to
be awarded.
“The settlement in Germany is highly encouraging, it improves our key financial
indicators and significantly reduces our debt. However, we are aware that this is only a
one-time effect. We will therefore continue to work consistently on improving the
profitability of our operating business in order to achieve sustainable appropriate
profits, which will require further efficiency improvements and, in particular, an
increase in revenues“, says Georg Kapsch, CEO of Kapsch TrafficCom.
Unless otherwise stated, all values in EUR million. H1 2022/23 H1 2023/24 +/-
Revenues 264.8 266.4 +0.6%
EBIT 4.7 73.1 >+500%
EBIT margin 1.8% 27.5% +25,7pp
Result for the period attributable to equity holders 0.3 46.6 >+500%
Earnings per share (EUR) 0.02 3.59 >+500%
Vienna, November 15, 2023 – The Kapsch TrafficCom Group reached a decisive milestone in
the first half of 2023/24: The settlement of the arbitration proceedings with the Federal
Republic of Germany led to an inflow of cash, the effects of which significantly improved
the key financial indicators as of September 30, 2023. In addition, the projects that
Kapsch TrafficCom has recently won and is still expecting will strengthen the business in
the coming years.
Milestone: settlement agreement in Germany.
At the beginning of July, the arbitration proceedings conducted due to the termination of
the operations contract for the collection of the infrastructure charge, the passenger
car toll in Germany, were concluded with a settlement agreement. Accordingly, autoTicket
GmbH, a joint venture between Kapsch TrafficCom and CTS Eventim, received an amount of
EUR 243 million from the Federal Republic of Germany.
The cash inflow of EUR 79 million already received is reflected in the EBIT with EUR 72
million and was predominantly used to repay financial liabilities. The company continues
to expect a total net cash inflow of at least around EUR 100 million, of which the
portion not yet received will have no further effect on earnings.
Positive operating performance in the first half of the financial year 2023/24.
Revenues in the first half of the year amounted to EUR 266 million, which is 1% higher
than in the same period of the previous year. The increasing market momentum is not
reflected in revenues due to a customer credit of EUR 6 million in the first quarter;
without this credit, revenues would have increased by 4% to EUR 272 million compared to
the previous year.
The result from operating activities before depreciation, amortization and impairment
(EBITDA) grew from EUR 15 million to EUR 82 million, and the result from operating
activities (EBIT) increased from EUR 5 million to EUR 73 million. The EBIT margin was
therefore 28%, compared to 2% in the first half of the previous year.
EBITDA and EBIT were influenced in particular by the following special effects:
• The cash inflow from Germany led to an increase in EBIT of EUR 72 million.
• After an agreement was reached with a customer regarding overdue receivables, a
credit note was issued (reduction in revenues of EUR 6 million) and, conversely, the
allowance for these receivables was reversed in the amount of EUR 10 million. This
led to a positive effect on earnings of EUR 4 million.
• Some implementation projects in the USA were confronted with a margin deterioration
due to increased costs. As a result, EBIT was negatively impacted in the amount of
EUR 9 million (previous year: EUR 8 million).
• The operating currency effects had a positive impact of EUR 3 million in the
reporting period (previous year: EUR 9 million).
The reduction in personnel expenses and other operating expenses by EUR 6 million and EUR
4 million respectively already shows the effects of the systematic restructuring.
However, the cost of materials and other production services increased by EUR 11 million
compared to the previous year, in particular due to unfavorable exchange rate
developments and inflation adjustments.
After a negative result in the first quarter, the second quarter was thus significantly
better. Excluding the effects of the settlement in Germany, Kapsch TrafficCom recorded a
slightly positive business development in the first half of the year with an EBIT of EUR
1 million. With an EBIT of EUR 5 million, the second quarter performed significantly
better than the first quarter (EUR -3 million) and also better than the second quarter of
the previous year (EUR 4 million).
The financial result was influenced in particular by higher interest expenses and
one-time costs due to the restructuring of financing and amounted to EUR -14 million
(previous year: EUR -1 million). Of this amount, EUR -9 million are attributable to a
one-time interest surcharge and processing fees. Positive and negative effects from
exchange rate changes largely counterbalanced each other. Income taxes increased to EUR
11 million.
The result for the period attributable to equity holders amounted to EUR 47 million after
EUR 0.3 million in the first half of the previous year. This corresponds to earnings per
share of EUR 3.59 after EUR 0.02.
Segment performance.
The tolling segment contributed 71% to total revenues, the traffic management segment
29%. At EUR 189 million, revenues in the tolling segment were 3% lower than the previous
year’s figure of EUR 195 million. The decline resulted primarily from the Americas region
(North, Central and South America). The segment EBIT recorded extraordinary growth to EUR
64 million after EUR 3 million in the previous year in connection with the cash inflow
from Germany, although margin adjustments and higher costs in implementation projects in
the USA dampened profitability.
In the traffic management segment, revenues increased by 12% from EUR 69 million to EUR
78 million. This growth was primarily due to implementation and operations projects in
the EMEA region (Europe, Middle East, Africa). The segment EBIT increased from EUR 2
million to EUR 9 million.
In regional terms, Kapsch TrafficCom recorded business growth of 6% to EUR 133 million in
the EMEA region and further growth of 3% to EUR 16 million in the APAC (Asia-Pacific)
region. In the Americas region, revenues decreased by 5% to EUR 118 million in the
reporting period.
Financial and asset position.
Free cash flow amounted to EUR 49 million in the first half of 2023/24 and was, due to
the effect from Germany, significantly higher than in the same period of the previous
year (EUR -11 million). However, net working capital changed by EUR -13 million (previous
year: EUR -8 million).
In terms of the balance sheet, two developments in particular led to significant changes
in the first half of 2023/24: Firstly, the restructuring of the financing arrangements
agreed at the end of May, and secondly, the cash inflow from Germany.
Accordingly, equity increased from EUR 51 million as of the balance sheet date on March
31, 2023, to EUR 93 million as of September 30, 2023, and the equity ratio grew to 19%
(March 31, 2023: 11%). Following the repayment of financial liabilities, net debt
decreased from EUR 186 million to EUR 142 million and the gearing ratio declined from
363% to 153%.
Corporate development.
The settlement in Germany improved the key financial indicators and significantly reduced
debt. Kapsch TrafficCom is now focusing on its future corporate development and will
therefore also conduct a review of its Strategy 2027, with numerous new projects
confirming the expected connectivity of infrastructure and vehicles for the road of the
future. In addition, Kapsch TrafficCom’s “Green Vision” is becoming more precise with the
further expansion of sustainability management.
The goal is to achieve the longer-term targeted minimum level of net debt to EBITDA of
3.0x, as set before the settlement in Germany, now promptly. This means increasing the
EBITDA, which requires further efficiency improvements and, in particular, an increase in
revenues, and further reducing net debt.
In the first half of 2023/24, Kapsch TrafficCom recorded an enormous order intake, which
at EUR 480 million was almost doubled compared to the same period of the previous year
and led to a high order backlog at EUR 1.4 billion, 2.5 times the previous year´s
revenues. In addition, further projects are about to be awarded. This forms a solid basis
for the required increase in revenues.
The company is aiming for cash inflows of at least EUR 30 million to further reduce the
gearing ratio. Together with the expected remaining cash inflow of at least about EUR 20
million from the settlement in Germany and a reduction in net working capital, which
increased in the first half of the year, this should once again significantly reduce net
debt.
Outlook.
In addition to the new projects that Kapsch TrafficCom has already won in the first half
of the year, several more project tenders are about to be awarded. Kapsch TrafficCom sees
this as confirmation of the increase in market dynamics.
The settlement concluded in Germany led to a significant improvement in the operating
result and key financial indicators. Building on this, the focus remains on consistent
cost and liquidity management, improving key financial indicators and new business.
For the financial year 2023/24, the Executive Board continues to expect revenue growth in
the single-digit percentage range and a significant improvement in the operating result
(EBIT).
The report on the first half of 2023/24 as well as further materials on the results are
scheduled to be available today, from 7:35 a.m. (CET), at: [1] www.kapsch.net/ir
Kapsch TrafficCom is a globally renowned provider of transportation solutions for
sustainable mobility with successful projects in more than 50 countries. Innovative
solutions in the application fields of tolling, tolling services, traffic management and
demand management contribute to a healthy world without congestion.
With one-stop-shop-solutions, the company covers the entire value chain of customers,
from components to design and implementation to the operation of systems.
Kapsch TrafficCom, headquartered in Vienna, has subsidiaries and branches in more than 25
countries and is listed in the Prime Market segment of the Vienna Stock Exchange (ticker
symbol: KTCG). In its 2022/23 financial year, about 4,000 employees generated revenues of
EUR 553 million.
Press contacts: Investor contact:
Sandra Bijelic
Carolin Treichl Head of Corporate Marcus Handl, Valerie Riegler
Executive Vice President Communications Investor Relations team
Marketing & Communications Kapsch TrafficCom AG Kapsch TrafficCom AG
Kapsch AG Am Europlatz 2 Am Europlatz 2
Am Europlatz 2 1120 Vienna, Austria 1120 Vienna, Austria
1120 Vienna, Austria T +43 50 811 1720 T +43 50 811 1122
T +43 50 811 1710 [3]sandra.bijelic@kapsch.net [4]IR.kapschtraffic@kapsch.net
[2]carolin.treichl@kapsch.net
Further information: [5] www.kapsch.net Follow us on Twitter and LinkedIn
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15.11.2023 CET/CEST This Corporate News was distributed by EQS Group AG. www.eqs.com
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Language: English
Company: Kapsch TrafficCom AG
Am Europlatz 2
1120 Vienna
Austria
Phone: +43 50811 1122
Fax: +43 50811 99 1122
E-mail: ir.kapschtraffic@kapsch.net
Internet: www.kapschtraffic.com
ISIN: AT000KAPSCH9
WKN: A0MUZU
Listed: Vienna Stock Exchange (Official Market)
EQS News ID: 1773397
End of News EQS News Service
1773397 15.11.2023 CET/CEST
References
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2. carolin.treichl@kapsch.net
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