Interim / Quarterly Report • Nov 15, 2023
Interim / Quarterly Report
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Kapsch TrafficCom
EN
Half-year financial report pursuant to Sec. 125 Austrian Stock Exchange Act (BörseG) 2018.
2023/24 and 2022/23: refers to the respective financial year (April 1 until March 31) H1: first half of a financial year (April 1 until September 30) PP: percentage points
Unless otherwise stated, all values in EUR million.
| Earnings data | 2022/23 | H1 2022/23 | H1 2023/24 | +/- |
|---|---|---|---|---|
| Revenues | 553.4 | 264.8 | 266.4 | 0.6% |
| Share of tolling segment | 72.9% | 73.8% | 70.9% | -2.9 PP |
| Share of traffic management segment | 27.1% | 26.2% | 29.1% | 2.9 PP |
| EBITDA1) | 29.4 | 15.0 | 82.4 | >100% |
| EBITDA margin | 5.3% | 5.7% | 30.9% | 25.3 PP |
| EBIT | 7.6 | 4.7 | 73.1 | >500% |
| EBIT margin | 1.4% | 1.8% | 27.5% | 25.7 PP |
| Result before income tax | -9.9 | 2.9 | 58.2 | >500% |
| Result for the period | -24.2 | 1.8 | 47.1 | >500% |
| Result for the period attributable to equity holders | -24.8 | 0.3 | 46.6 | >500% |
| Earnings per share in EUR | -1.91 | 0.02 | 3.59 | >500% |
| Business segments | 2022/23 | H1 2022/23 | H1 2023/24 | +/- |
| Tolling | ||||
| Revenues | 403.4 | 195.3 | 188.9 | -3.3% |
| EBIT | -7.6 | 2.5 | 64.4 | >500% |
| EBIT margin | -1.9% | 1.3% | 34.1% | 32.8 PP |
| Traffic management | ||||
| Revenues | 150.0 | 69.4 | 77.5 | 11.6% |
| EBIT | 15.2 | 2.3 | 8.7 | >100% |
| EBIT margin | 10.1% | 3.3% | 11.2% | 8.0 PP |
| Revenues by region | 2022/23 | H1 2022/23 | H1 2023/24 | +/- |
| EMEA | 49.3% | 47.5% | 49.9% | 2.4 PP |
| Americas | 45.0% | 46.6% | 44.1% | -2.5 PP |
| APAC | 5.7% | 5.9% | 6.1% | 0.2 PP |
| Balance sheet data | March 31, 2023 | Sept. 30, 2023 | +/- | |
| Total assets | 480.1 | 482.5 | 0.5% | |
| Total equity2) | 51.3 | 92.7 | 80.6% | |
| Equity ratio2) | 10.7% | 19.2% | 8.5 PP | |
| Net debt3) | 186.3 | 141.7 | -23.9% | |
| Gearing4) | 363.1% | 152.9% | >-100 PP | |
| Net working capital5) | 79.4 | 91.6 | 15.4% | |
| Cash flow | 2022/23 | H1 2022/23 | H1 2023/24 | +/- |
| Net CAPEX6) | 3.3 | 1.6 | 3.2 | 95.3% |
| Free cash flow7) | -6.0 | -11.4 | 48.5 | – |
| Other information | 2022/23 | H1 2022/23 | H1 2023/24 | +/- |
| Employees, end of period | 4,039 | 4,195 | 3,939 | -6.1% |
| On-board units, in million units8) | 9.23 | 4.57 | 5.00 | 9.4% |
1) Operating result before amortization, depreciation and impairment
2) Including non-controlling interests
3) Cash and cash equivalents + other current financial assets – financial liabilities – lease liabilities
4) Net debt/equity
5) Inventories + trade receivables and other current assets + current contract assets + current tax receivables – trade payables
– current contract liabilities – current tax liabilities – current provisions – current other liabilities and deferred income
6) Capital expenditure and proceeds from the disposal of property, plant and equipment and intangible assets
7) Cash flow from operating activities + cash flow from investing activities
8) Starting with Q4 2022/23 excl. sticker tags. Adjusting previous year's figures H1 2022/23 to allow comparability
EUR 266.4 million +0.6%
EUR 73.1 million >+500%
Revenues H1 EBIT H1 Earnings per share H1
EUR 3.59 >+500%
The Kapsch TrafficCom Group reached a decisive milestone in the first half of financial year 2023/24, which gives us again a more solid basis for the future. The settlement of the arbitration proceedings with the Federal Republic of Germany led to an inflow of cash, the effects of which are clearly visible in this half-year report. In addition, the projects that we have recently won and are still expecting will strengthen our business in the coming years.
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 full effect for Kapsch TrafficCom is included in our interim financial statements as of September 30, 2023. The cash inflow of EUR 79 million is reflected in the EBIT with EUR 72 million. We continue to expect a total net cash inflow of at least around EUR 100 million, of which the remaining net cash inflow of at least around EUR 20 million will not lead to any further effect on earnings.
At EUR 63 million, the majority of the cash inflow already received was used immediately to repay financial liabilities – we had committed to this as part of the financing restructuring with our main financial creditors. The associated interest surcharge and processing fees had a negative impact of EUR 9 million on the financial result in the reporting period, whereby half of the interest surcharge was settled with the repayment; the remainder was accrued. We have thus repaid the loans with the highest interest rates and the last half of the deferred installment of the promissory note loan, which will noticeably reduce interest expenses in the future.
The settlement in Germany is highly encouraging, it improves our key financial indicators and significantly reduces 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 profits and reach our target minimum level of net debt to EBITDA of 3.0x. This means further reducing net debt as quickly as possible and increasing EBITDA, which requires further efficiency improvements and, in particular, an increase in revenues.
Excluding the effects from the settlement in Germany described above, we recorded a slight positive business performance in the reporting period with an EBIT of EUR 1 million. In terms of revenues, the first quarter was impacted by a customer credit note of EUR 6 million. Without this factor, revenues in the first half of the year would have amounted to EUR 272 million, which is 4% higher than in the previous year. The result in the first quarter was EUR 3
million negative due to special effects. With an EBIT of EUR 5 million, the second quarter performed significantly better than the first quarter and also better than the second quarter of the previous year (EUR 4 million), nevertheless it was still unsatisfactory and continued to be impacted by value adjustments on projects to be completed in the USA.
Our systematic restructuring is proving effective and is particularly evident in personnel expenses and other operating expenses, which were down EUR 6 million and EUR 4 million respectively on the previous year. However, in view of the continuing inflation-related cost increases and unfavorable currency developments, we need to work on further measures for the EUR 11 million increase in costs of materials and other production services. After all, this additional expense has overshadowed the effects of the restructuring for the time being.
One-time effect from settlement in Germany improves financial position significantly.
First half of 2023/24:
Revenues: EUR 266 million (+0.6%) EBIT: EUR 73 million (>+500%)
Kapsch TrafficCom recorded an enormous order intake in the first half of the year; at EUR 480 million, it was almost twice as high as in the same period of the previous year. Our order backlog currently amounts to around EUR 1.4 billion, which corresponds to 2.5 times the previous year's revenues. In addition, further projects are about to be awarded. This means we have a well-filled pipeline for the future and a solid basis for achieving the targeted increase in revenues, which is expected to take effect in the second half of the year.
I would like to highlight some of our successes in recent months that demonstrate our path into the future: In Spain, we will be equipping a highway near Bilbao next year for the interconnection of infrastructure and vehicles – a first step towards the road of the future. In Castelló, we will contribute to the establishment of another urban low emission zone – proof of the urban traffic management of the future. Our "tolltickets" network was expanded to include France in August. With the purchase of a single toll box, drivers can now seamlessly use the road network in France, Italy, Spain and Portugal – an important step towards building our new tolling services business segment in Europe, the future of toll collection. In October, we were commissioned to implement a Cooperative Intelligent Transport System (C-ITS) with hardware and software for construction site areas in a highway project in Germany and to subsequently operate it for up to 12 years – a next step in connected mobility.
In order to meet future demand for our hardware, we have expanded production capacity by more than 30% at our largest production site in Vienna, Austria. In this context, net investments have doubled to EUR 3 million compared to the previous year. This investment will enable us to produce around two million additional on-board units per year – a sign that our components business is maintaining its momentum.
Both our restructuring progress and the new projects prove that we have set a lot in motion in recent months and years. Looking ahead, we are also focusing on the continuous corporate development of Kapsch TrafficCom and will conduct a review of our Strategy 2027 in this context. As a first step, we decided in October to discontinue our tolling services app "Uproad" in the USA, which resulted in a negative EBIT of EUR 5 million in the previous financial year. This will help us to increase EBITDA to EUR 35 million as quickly as possible.
With a view to further reduce our gearing ratio, we are targeting cash inflows of at least EUR 30 million, which we are confident to generate from pending proceedings and other measures. Together with the expected remaining net cash inflow of at least around EUR 20 million from the settlement in Germany and a reduction in net working capital – which increased by 15.4% in the first half of the year – this should again significantly reduce net debt from its current level of EUR 142 million. This gives us a healthy balance sheet structure for the future and enables us to promptly achieve the longer-term target of a minimum level of net debt to EBITDA of 3.0x.
Our "Green Vision" is also becoming more precise. After creating a central data hub for ESG (environment, social, governance) data last year to ensure standardized and expandable data management, we launched a comprehensive project in spring to take our overarching sustainability management to a new level and make it fit for the future.
Strategy review and expansion of sustainability management.
In recent months, the entire value chain of Kapsch TrafficCom has been analyzed with regard to material sustainability topics under the leadership of our ESG task force, and both the financial impact on our company and the company's impact on environment and society have been assessed. Representatives of all relevant stakeholder groups were involved in the process. Based on this information, we are now defining the material topics that we – and you – can use to measure our future development going forward. As a result, we are preparing to issue our Annual Financial Statements starting from the 2024/25 financial year in accordance with the Corporate Sustainability Reporting Directive (CSRD) in line with the EU-wide Sustainability Reporting Standards.
In addition to the new projects that we have already won in the first half of the year, several other project tenders are about to be awarded. This also reflects the expected market recovery. Our successes are reflected in the order intake and order backlog; they form a solid basis for further growth, which in the medium term should at least enable us to return to the pre-crisis revenue level of almost EUR 740 million recorded in the financial year 2018/19.
The settlement reached in Germany led to a significant improvement in the operating result and key financial indicators. We will continue to build on this by focusing on consistent cost and liquidity management, improving key financial indicators and new business.
For the financial year 2023/24, we continue to expect revenue growth in the single-digit percentage range and a significant improvement in the operating result (EBIT).
Outlook 2023/24: Revenue growth and significant improvement in operating result (EBIT).
Sincerely,
Georg Kapsch Chief Executive Officer
In the first half of financial year 2023/24, the Kapsch TrafficCom share performed significantly weaker than the stock market environment. After strong fluctuations, both downwards and upwards, the share closed the first half of the year 20.5% below its initial value. The benchmark index ATX Prime moved sideways during this period and closed 1.5% lower on September 29, 2023.
Starting from an opening price of EUR 12.50 on April 3, the share price reached a low (intraday) of EUR 8.84 on June 2 and closed at EUR 10.00. This was followed by a rapid recovery. On July 5, after publication of Market cap at the end of H1 2023/24: EUR 129.2 million
the settlement in Germany, the share reached its highest value (intraday) of the reporting period and closed at EUR 13.65. However, with high share turnover, the price fell again significantly in the following days. Following a continued slight downward trend, particularly after the Annual General Meeting on September 6, the share closed at EUR 9.94 at the end of the quarter.
| In EUR, unless otherwise stated | H1 2022/23 | H1 2023/24 |
|---|---|---|
| Earnings per share | 0.02 | 3.59 |
| High (intraday) | 14.40 | 13.65 |
| Low (intraday) | 10.80 | 8.84 |
| Closing price on September 30 | 10.90 | 9.94 |
| Share performance | -23.8% | -20.5% |
| Ø trading volume (shares, double counting) | 6,535 | 21,744 |
In the last twelve months, the following financial institutions published reports on the share (in alphabetical order):
Kapsch TrafficCom's Investor Relations team continued to be available for investor inquiries and actively took opportunities to intensify contact with capital market participants. In particular, the following activities took place in the first half of 2023/24:
The Annual General Meeting of Kapsch TrafficCom AG took place on September 6, 2023. The following resolutions were adopted:
Valid votes: 9,504,683 (73.11%) Approved by: 9,504,683 votes (no votes against, abstentions: 1,494 votes)
Following the Annual General Meeting, the constituent meeting of the Supervisory Board took place with the following elections:
Chairman: Franz Semmernegg Deputy Chairman: Harald Sommerer
Chairman: Harald Sommerer (financial expert) Deputy Chairman: Monika Brodey Member: Christian Windisch
Chairman: Franz Semmernegg Member: Sonja Hammerschmid
The changes in the composition of the committees were also made with respect to corporate governance.
In relation to the negative results of recent years, the dividend policy was suspended in 2020 and no dividend has been paid since then. For the previous financial year 2022/23, the profit of Kapsch TrafficCom was fully subject to the distribution ban pursuant to Section 235 (2) of the Austrian Commercial Code (UGB), thus no resolution was required at the Annual General Meeting.
Based on the resolution of the Annual General Meeting, Kapsch TrafficCom is considering the utilization of the authorized capital subject to a positive capital market environment until the end of the calendar year 2023 by way of a cash capital increase through private placement of new shares with institutional investors and by way of a non-cash capital increase through the participation of KAPSCH-Group Beteiligungs GmbH. The shareholders' subscription rights were excluded by the Annual General Meeting.
| Investor Relations team | Marcus Handl, Valerie Riegler |
|---|---|
| Shareholders' telephone line | +43 50 811 1122 |
| [email protected] | |
| Website | www.kapsch.net |
Kapsch TrafficCom is a globally recognized provider of transportation solutions for sustainable mobility. Innovative solutions in the application areas of tolling and tolling services as well as traffic management and demand management contribute to a healthier world without congestion.
Kapsch TrafficCom is a globally recognized provider of transportation solutions for sustainable mobility.
Kapsch TrafficCom's mission is to create innovative transportation solutions for sustainable mobility to enable users to arrive at their destination conveniently, on time, safely, efficiently, on time and with minimal environmental impact.
In this context, Kapsch TrafficCom addresses the market for Intelligent Transportation Systems (ITS). These support and optimize traffic (including infrastructure, vehicles, users and industry). They use information and communication technologies for this purpose. Within the ITS market, Kapsch TrafficCom focuses on tolling and tolling services as well as traffic management and demand management. Core regions of business activity are EMEA (Europe, Middle East, Africa), Americas (North, Central and South America) and APAC (Asia-Pacific).
Grand View Research places the market size for ITS globally at EUR 26.3 billion in 2022 (USD 28.25 billion, converted at an exchange rate of 0.93 as of December 31, 2022), and expects it to grow at a compound annual growth rate (CAGR) of 8.3% from 2023 to 2030.
The addressable market for the company had a volume of EUR 5.3 billion in the financial year 2022/23 according to internal calculations. The market is expected to grow at an average annual rate of 8.8% to EUR 8.0 billion until financial year 2027/28.
Kapsch TrafficCom has identified the following drivers in the markets currently addressed:
Further information can be found in the Consolidated Management Report 2022/23.
The previously mentioned market drivers have already sparked the following trends:
Revenues of Kapsch TrafficCom reached EUR 266.4 million in the first half of the current financial year, up 0.6% on the same period of the previous year. Geographically, the breakdown of revenues was as follows:
EBITDA and EBIT. The earnings before depreciation and amortization (EBITDA) amounted to EUR 82.4 million (previous year: EUR 15.0 million). The operating result (earnings before interest and taxes, EBIT) was again positive at EUR 73.1 million (previous year: EUR 4.7 million). The EBIT margin thus amounted to 27.5% (previous year: 1.8%).
In the first half of 2023/24 EBITDA and EBIT were impacted by the following effects:
The financial result was influenced in particular by higher interest expenses due to a higher financing volume, increased interest rates and one-off costs due to the restructuring of financing and amounted to EUR -14.4 million in the first half of 2023/24 (previous year: EUR -1.2 million). Of this amount, EUR -9.3 million is attributable to one-off interest premiums and one-off processing fees. Positive and negative effects from exchange rate changes largely balanced each other out.
For the calculation of income taxes, the Group applied a theoretical income tax rate of 23% in the first half of 2023/24. The basis for the calculation of income taxes was the consolidated result before income tax, without factoring in the (already taxed) proportional result from associated companies and joint ventures. This and the change in deferred taxes on loss carry forwards resulted in income tax expenses of EUR 11.2 million (previous year: EUR 1.1 million).
The result for the period in the first half of the financial year was EUR 47.1 million (previous year: EUR 1.8 million).
Revenues in the tolling segment fell by 3.3% to EUR 188.9 million, contributing 70.9% (previous year: 73.8%) to total revenues.
The Americas region continued to make the largest contribution in the first half of 2023/24 with sales totalling EUR 88.2 million. The 6.4% decline in revenues compared to the previous year was primarily due to the slower business in the USA and affected all business areas: implementation, operations and components business. In addition, some construction projects in the USA were confronted with increased costs and a resulting deterioration in margins. A decline in sales was also recorded in some Latin American countries such as Chile, Costa Rica and Argentina. In Mexico, on the other hand, a new construction project in Veracruz and several new operating projects led to an increase in revenues.
In the EMEA region, revenues in the first half of 2023/24 remained almost at
the previous year's level at EUR 86.6 million (-1.6%). While sales from the nationwide toll project in South Africa fell slightly due to fluctuations in the local currency as well as from operation projects in Poland and Bulgaria, sales increases in Spain, France, Belarus and Sweden partially offset this.
Sales in the APAC region rose by 7.4% to EUR 14.1 million in the first half of 2023/24. Following the enormous relative growth of 45.8% (EUR +4.1 million) in the previous year, there were further increases in sales in Australia and Singapore in the first half of 2023/24, but a decline in New Zealand. While the components business increased, delays in construction projects reduced the contribution to earnings.
In the first half of 2023/24, 5.0 million on-board units were sold (previous year: 4.6 million)1). The increase is mainly due to the development in Australia (+0.6 million), but also due to increased deliveries to Morocco. In the previous year, fewer on-board units were delivered due to delivery difficulties caused by component shortages. In North America, on the other hand, there was a decline in on-board unit sales in the reporting period.
| in EUR million | H1 2022/23 | H1 2023/24 | +/- |
|---|---|---|---|
| Revenues | 195.3 | 188.9 | -3.3% |
| Implementation | 54.2 | 50.6 | -6.5% |
| Operations | 102.0 | 99.9 | -2.1% |
| Components | 39.2 | 38.4 | -2.1% |
| EBIT | 2.5 | 64.4 | 2,512.1% |
EBIT. The operating result (EBIT) in the tolling segment recorded extraordinary growth to EUR 64.4 million (previous year: EUR 2.5 million). The main reason for this was the comparative agreement in Germany regarding the termination of the operation agreement for the collection of the infrastructure charge, which had a positive effect of
EUR 72.0 million. After court of arbitration confirmed a claim for damages and reimbursement of costs for autoTicket GmbH in March 2022, Kapsch TrafficCom was able to recognize proportional income of over EUR 66 million in September 2023.
Tolling EBIT: EUR 64.4 million (>+ 500%)
In contrast, adjustments to project margins and higher costs in installation projects in the US dampened profitability, while the cost of materials and other purchased services increased by 10.2% compared to the previous year. Personnel expenses fell by 5.2% in the reporting period due to favorable currency developments and cost savings mainly in the USA, but also in Austria, France and Chile. The operating currency result amounted to EUR 2.5 million (previous year: EUR 8.0 million).
Revenues in the traffic management (TM) segment increased by 11.6 % to EUR 77.5 million, contributing 29.1% (previous year: 26.2%) to total revenues.
In the EMEA region, operation projects in the Netherlands and the UK and construction projects in Spain were the main contributors to this positive development. In the Americas region, sales remained at the previous year's level, with the increase in operation projects compensating for the decline in construction projects and the completion of several projects in Colombia. In the
APAC region, both lower construction and operation sales, particularly in New Zealand, led to a decline in sales from EUR 2.5 million to EUR 2.0 million.
| in EUR million | H1 2022/23 | H1 2023/24 | +/- |
|---|---|---|---|
| Revenues | 69.4 | 77.5 | 11.6% |
| Implementation | 20.5 | 26.6 | 30.0% |
| Operations | 46.5 | 46.6 | 0.3% |
| Components | 2.5 | 4.3 | 71.1% |
| EBIT | 2.3 | 8.7 | 284.7% |
EBIT. EBIT in the traffic management segment amounted to EUR 8.7 million in the first half of 2023/24 (previous year: EUR 2.3 million). Construction projects in the EMEA region, particularly in the Netherlands and the UK, contributed to this increase. The cost of materials and other purchased
production services rose by 10.5%. Personnel expenses fell by 2.5% due to the sale of the Spanish public transport division, a positive exchange rate trend and cost savings.
TM EBIT: EUR 8.7 million (>+100 %)
The balance sheet total as of September 30, 2023 amounted to EUR 482.5 million (March 31, 2023: EUR 480.1 million).
Non-current assets decreased to EUR 169.5 million as of September 30, 2023 (March 31, 2023: EUR 182.8 million). The decrease was mainly due to other non-current financial assets and investments, which include loan repayment by autoTicket GmbH, Germany, to Kapsch TrafficCom AG in the amount of EUR 12.9 million. In contrast, shares in associates and joint ventures increased by EUR 7.8 million, mainly due to the revaluation of the shares in autoTicket GmbH. Furthermore, deferred tax assets decreased by EUR 7.7 million to EUR 42.1 million, mainly due to the utilization of loss carry forwards.
Current assets increased by EUR 15.7 million to EUR 313.0 million (March 31, 2023: EUR 297.3 million). The largest changes related to trade receivables and other current assets with an increase of EUR 16.6 million and current contract assets from customer contracts with an increase of EUR 3.0 million. Cash and cash equivalents decreased by EUR 4.0 million to EUR 41.3 million compared to March 31, 2023.
Equity increased significantly to EUR 92.7 million as of September 30, 2023. This increase of EUR 41.4 million compared to the balance sheet date of March 31, 2023 is due to the positive effects in connection with the settlement in Germany in the first half of 2023/24, as described above. The equity ratio as of September 30, 2023 improved to 19.2% (March 31, 2023: 10.7%).
At the end of May, Kapsch TrafficCom agreed with its main financial creditors to restructure its financing by May 2025. The aim was to significantly reduce net debt by at least EUR 60 million and, in the longer term, to a level of net debt to EBITDA of 3.0x. In order to achieve this, Kapsch TrafficCom undertook to make early repayments, to suspend dividend payments and to utilize the entire existing authorized capital (10% of the share capital). This agreement is clearly reflected in a shift in the structure of liabilities as of September 30, 2023. In addition, financing was successfully concluded in North America.
Non-current financial liabilities increased by a total of EUR 57.5 million in the first half of 2023/24, mainly due to the reclassification of current financial liabilities in line with the planned repayments and remaining maturities (EUR 59.0 million).
Current financial liabilities fell by a total of EUR -103.1 million. The main changes resulted from the reclassification due to maturities (EUR -59.0 million), repayments of EUR 83.7 million and additions of EUR 37.5 million (see note 10).
Cash flow from operating activities was clearly positive in the first half of the current financial year at EUR 53.2 million (previous year: EUR -9.0 million) due to the increase in other operating income in connection with the settlement with Germany. The change in net working capital amounted to EUR -11.4 million (previous year: EUR -8.2 million). This was due to the following effects: inventories fell by EUR 0.2 million (previous year: increase of EUR 12.2 million), while the sum of "Trade receivables and other assets" and "Contract assets from customer contracts" rose by EUR 19.4 million (previous year: increase of EUR 6.7 million). The sum of "Trade payables and other current liabilities" and "Contract liabilities from customer contracts" increased by EUR 10.0 million (previous year: increase of EUR 14.8 million). Current provisions fell by EUR 2.2 million (previous year: decrease of EUR 4.1 million), which also had a negative impact on cash flow from operating activities.
Cash flow from investing activities amounted to EUR 6.6 million in the first half of 2023/24 (previous year: EUR -2.4 million). Investments in property, plant and equipment increased to EUR 4.8 million, while proceeds from the sale of property, plant and equipment amounted to EUR 1.7 million. Payments for the purchase of securities, investments and other non-current financial assets included financing of the associated company Traffic Technology Services, Inc, USA, in the amount of EUR 0.7 million.
Proceeds from the sale of securities, investments and other non-current financial assets mainly comprised the repayment of the financing of the joint venture autoTicket GmbH, Germany, in the amount of EUR 12.9 million.
The free cash flow is the sum of cash flow from operating activities and cash flow from investing activities and amounted to EUR 48.5 million in the first half of 2023/24 and was significantly higher than in the same period of the previous year (EUR -11.4 million) due to the effect of the settlement of the arbitration proceedings in Germany.
Cash flow from financing activities amounted to EUR -51.4 million in the first half of the year (previous year: EUR -17.4 million). The change was mainly due to the repayment of current financial liabilities amounting to EUR -83.7 million, the raising of new financing amounting to EUR 38.4 million (of which EUR 1.0 million was non-current) and the ongoing repayment of lease liabilities amounting to EUR -6.1 million, partly as a result of the restructuring of financing.
Cash and cash equivalents as of September 30, 2023 totaled EUR 41.3 million (March 31, 2023: EUR 45.2 million).
Net debt amounted to EUR 141.7 million (March 31, 2023: EUR 186.3 million), which corresponds to a gearing ratio of 152.9 % (March 31, 2023: 363.1 %). The decrease in net debt was mainly due to the change in financial liabilities (EUR -43.9 million). The increase in lease liabilities (EUR 5.0 million) was partially offset by the lower level of cash and cash equivalents (EUR -4.0 million).
Apart from the details included in the consolidated financial statements 2022/23 and the information included in note 13, there were no other transactions with related parties that had a significant impact on the financial position or operating result during the first half of the financial year.
In October, Kapsch TrafficCom AG won a notable project. A highway project in Germany also involves networked mobility: the company was commissioned to implement a Cooperative Intelligent Transport Intelligent Transport System (C-ITS) with hardware and software for construction site areas and to subsequently operate it for up to 12 years.
In October, the decision was made to discontinue the tolling services app "Uproad" in the USA.
Enterprise Risk Management (ERM), which is part of Group Risk & Internal Audit, aims to identify, evaluate and control risks at an early stage that have a significant impact on the company's success in achieving its strategic and operational objectives. However, the primary objective is not risk avoidance, but rather the controlled and conscious handling of risks as well as the timely identification and realization of opportunities. Thus, ERM makes a valuable contribution to corporate management. As part of ERM, major risks are identified, quantified, and globally aggregated on a quarterly basis. The risk report derived from this enables the concise assessment and monitoring of the major business risks. The report is sent to the Executive Board and the Audit Committee of the Supervisory Board.
Project-oriented risk management includes customer projects as well as internal development projects. All relevant risks and opportunities are analyzed during the preparation of the offer on the basis of institutionalized processes. As a result, decisions and the timely planning and implementation of control measures is thereby ensured.
The material risks of Kapsch TrafficCom are as follows:
The major risks faced by the Group are addressed in Section 2.2 of the Consolidated Management Report 2022/23.
The consequences of the COVID-19 pandemic and the associated implications for the economy as well as the conflict in Ukraine and the related sanctions against Russia continue to be felt by Kapsch TrafficCom. The Group continued to face bottlenecks and delays in the supply chain for component sales. The management expects that the aforementioned risks for the Group will remain in place in the second half of 2023/24 but will slowly decrease.
An internal control system (ICS) exists within the Group to document the internal control processes implemented in the accounting context. Responsibility for the implementation, design and monitoring of the ICS with a view to ensuring compliance with group-wide guidelines and regulations is incumbent upon the competent local management bodies in each case. Detailed Information of the internal control system is presented in section 2.3 of the Group Management Report 2022/23.
In addition to the new projects that Kapsch TrafficCom has already won in the first half of the year, several other project tenders are about to be awarded. Kapsch TrafficCom considers this to be a confirmation of the increase in market dynamics.
The settlement reached in Germany led to a significant improvement in the operating result and key financial indicators. On this basis, 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).
We confirm to the best of our knowledge that the condensed consolidated interim financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group as required by the applicable accounting standards and that the Group management report gives a true and fair view of important events that have occurred during the first six months of the financial year and their impact on the condensed consolidated interim financial statements and of the principal risks and uncertainties for the remaining six months of the financial year.
Vienna, November 14, 2023
The Executive Board
Georg Kapsch Chief Executive Officer
Alfredo Escribá Gallego Executive Board Member
as of September 30, 2023.*)
| in k EUR | Note | H1 2022/23 | H1 2023/24 |
|---|---|---|---|
| Revenues | (2) | 264,752 | 266,385 |
| Other operating income | (3) | 15,419 | 72,407 |
| Changes in finished and unfinished goods | 915 | 1,868 | |
| Cost of materials and other production services | -104,005 | -114,696 | |
| Personnel expenses | (4) | -125,610 | -119,999 |
| Other operating expenses | (5) | -35,515 | -31,715 |
| Proportional result of associates and joint ventures | (8) | -979 | 8,116 |
| Operating result before amortization, depreciation and impairment (EBITDA) | 14,978 | 82,366 | |
| Amortization and depreciation | -10,246 | -9,232 | |
| Operating result (EBIT) | 4,732 | 73,134 | |
| Finance income | 2,940 | 2,789 | |
| Finance costs | -4,168 | -17,144 | |
| Financial result | -1,228 | -14,355 | |
| Proportional results from associates and joint ventures from financial investments | -620 | -558 | |
| Result before income taxes | 2,884 | 58,221 | |
| Income tax | (6) | -1,121 | -11,166 |
| Result for the period | 1,763 | 47,055 | |
| Equity holders of the company | 295 | 46,632 | |
| Non-controlling interests | 1,468 | 423 | |
| Earnings per share from the result for the period attributable to the equity holders of the company (in EUR)1) |
0.02 | 3.59 | |
| Other comprehensive income for the period | |||
| Currency translation differences | -21,725 | -6,343 | |
| Currency translation differences from net investments in foreign operations | 7,268 | 868 | |
| Income tax relating to items subsequently to be reclassified to the result for the period | -1,817 | -217 | |
| Total items subsequently to be reclassified to the result for the period | -16,275 | -5,692 | |
| Total items subsequently not to be reclassified to the result for the period | 0 | 0 | |
| Other comprehensive income for the period net of tax | -16,275 | -5,692 | |
| Total comprehensive income for the period | -14,511 | 41,362 | |
| Equity holders of the company | -13,693 | 42,051 | |
| Non-controlling interests | -818 | -688 |
1) Earnings per share diluted = undiluted and relating to 13.0 million shares.
*) The condensed consolidated interim financial information has neither been audited nor been reviewed by an auditor.
| in k EUR Note |
March 31, 2023 |
Sept. 30, 2023 |
|---|---|---|
| ASSETS | ||
| Property, plant and equipment (7) |
52,130 | 49,588 |
| Intangible assets (7) |
31,756 | 29,805 |
| Interests in associates and joint ventures (8) |
24,736 | 32,584 |
| Other non-current financial assets and investments (9) |
16,217 | 4,782 |
| Non-current contract assets | 3,867 | 3,561 |
| Other non-current assets1) (9) |
4,311 | 7,100 |
| Deferred tax assets | 49,777 | 42,058 |
| Non-current assets | 182,795 | 169,478 |
| Inventories | 45,103 | 44,925 |
| Trade receivables and other current assets1) (9) |
118,005 | 134,603 |
| Current contract assets (9) |
82,213 | 85,168 |
| Current tax receivables | 4,873 | 5,560 |
| Other current financial assets (9) |
1,909 | 1,508 |
| Cash and cash equivalents (9) |
45,228 | 41,277 |
| Current assets | 297,331 | 313,041 |
| TOTAL ASSETS | 480,126 | 482,519 |
| EQUITY | ||
| Share capital | 13,000 | 13,000 |
| Capital reserve | 117,509 | 117,509 |
| Retained earnings and other reserves | -74,209 | -32,158 |
| Capital and reserves attributable to equity holders of the company | 56,300 | 98,350 |
| Non-controlling interests | -4,994 | -5,688 |
| TOTAL EQUITY | 51,306 | 92,662 |
| LIABILITIES | ||
| Non-current financial liabilities (9,10) |
58,472 | 117,705 |
| Non-current lease liabilities (9) |
32,199 | 28,306 |
| Liabilities from post-employment benefits to employees | 20,602 | 19,757 |
| Non-current provisions (11) |
1,454 | 1,621 |
| Non-current contract liabilities | 450 | 2,926 |
| Other non-current liabilities (9) |
430 | 421 |
| Deferred tax liabilities | 1,651 | 2,002 |
| Non-current liabilities | 115,258 | 172,739 |
| Current financial liabilities (9,10) |
131,170 | 28,043 |
| Current lease liabilities (9) |
11,595 | 10,447 |
| Trade payables (9) |
75,051 | 79,343 |
| Current contract liabilities | 31,062 | 29,440 |
| Current provisions (11) |
18,880 | 16,679 |
| Current tax liabilities | 2,139 | 2,171 |
| Other liabilities and deferred income (9) |
43,664 | 50,996 |
| Current liabilities | 313,561 | 217,118 |
| TOTAL LIABILITIES | 428,820 | 389,856 |
| TOTAL EQUITY AND LIABILITIES | 480,126 | 482,519 |
1) Non-current and current lease receivables were reclassified and are not shown separately anymore due to immateriality but are included in other non-current assets and trade receivables and other current assets.
| in k EUR | Share capital |
Capital reserve |
Other reserves |
Consoli dated retained earnings |
Attributable to equity holders of the company |
Non controlling interests |
Total equity |
|---|---|---|---|---|---|---|---|
| Carrying amount as of March 31, 2023 | 13,000 | 117,509 | -45,087 | -29,122 | 56,300 | -4,994 | 51,306 |
| Effects from sale of shares in subsidiaries | -6 | -6 | |||||
| Dividend | 0 | 0 | 0 | 0 | |||
| Result for the period | 46,632 | 46,632 | 423 | 47,055 | |||
| Other comprehensive income for the period: | |||||||
| Currency translation differences | -4,581 | -4,581 | -1,111 | -5,692 | |||
| Carrying amount as of | |||||||
| September 30, 2023 | 13,000 | 117,509 | -49,668 | 17,510 | 98,351 | -5,688 | 92,662 |
| Carrying amount as of March 31, 2022 | 13,000 | 117,509 | -42,994 | -4,319 | 83,196 | -5,294 | 77,902 |
| Dividend | 0 | 0 | -270 | -270 | |||
| Result for the period | 295 | 295 | 1,468 | 1,763 | |||
| Other comprehensive income for the period: | |||||||
| Currency translation differences | -13,988 | -13,988 | -2,286 | -16,275 | |||
| Carrying amount as of September 30, 2022 |
13,000 | 117,509 | -56,982 | -4,024 | 69,503 | -6,382 | 63,121 |
The registered share capital of Kapsch TrafficCom AG amounts to EUR 13,000,000. The share capital is fully paid in. The total number of ordinary shares issued is 13,000,000. The shares are ordinary bearer shares and have no par value. Each share entitles the holder to one vote. At the reporting date of September 30, 2023 Kapsch TrafficCom AG does not hold any treasury shares.
| in k EUR | Note | H1 2022/23 | H1 2023/24 |
|---|---|---|---|
| Operating result | 4,732 | 73,134 | |
| Scheduled depreciation and amortization | 10,246 | 9,232 | |
| Change in obligations for post-employment benefits | -1,180 | -845 | |
| Change in non-current receivables, non-current contract assets and other non-current assets | -1,757 | -2,639 | |
| Change in non-current trade payables, non-current contract liabilities and other non-current liabilities | |||
| and provisions | -800 | 2,630 | |
| Net payments of income taxes | 249 | -3,751 | |
| Interest received | 492 | 870 | |
| Interest payments | -3,028 | -12,380 | |
| Other (net) | -9,801 | -13,029 | |
| Cash flow from earnings | -848 | 53,222 | |
| Change in net working capital: | |||
| Change in trade receivables, current contract assets and other current assets | -6,720 | -19,355 | |
| Change in inventories | -12,171 | 178 | |
| Change in trade payables, current contract liabilities and other current payables | 14,792 | 10,008 | |
| Change in current provisions | -4,088 | -2,201 | |
| Change in net working capital | -8,187 | -11,370 | |
| Cash flow from operating activities | -9,035 | 41,852 | |
| Purchase of property, plant and equipment | (7) | -1,706 | -4,753 |
| Purchase of intangible assets | (7) | -509 | -163 |
| Purchase of securities, investments and other non-current financial assets | -903 | -2,027 | |
| Payments for the acquisition of entities (less cash and cash equivalents of these entities) | 0 | 3 | |
| Payments for the acquisition of shares in at-equity-consolidated entities | 0 | -161 | |
| Proceeds from the disposal of shares in subsidiaries | 0 | -5 | |
| Proceeds from the disposal of property, plant and equipment | 365 | 1,704 | |
| Proceeds from the disposal of intangible assets | 206 | 0 | |
| Proceeds from the disposal of securities and other financial assets | 177 | 12,003 | |
| Cash flow from investing activities | -2,370 | 6,602 | |
| Free cash flow1) | -11,405 | 48,454 | |
| Dividends paid to non-controlling interests | -270 | 0 | |
| Increase in non-current financial liabilities | (10) | 1,600 | 914 |
| Increase in current financial liabilities | (10) | 4,484 | 37,527 |
| Decrease in current financial liabilities | (10) | -16,728 | -83,681 |
| Lease payments | -6,469 | -6,147 | |
| Cash flow from financing activities | -17,383 | -51,388 | |
| Cash and cash equivalents at beginning of year | 59,751 | 45,228 | |
| Changes in cash and cash equivalents2) | -28,788 | -2,934 | |
| Exchange gains/losses | -130 | -1,016 | |
| Cash and cash equivalents at end of year | 30,833 | 41,277 |
1) Cash flow from operating activities + cash flow from investing activities
2) Free cash flow + cash flow from financing activities
Outline.
| General information | 23–24 |
|---|---|
| 1 – General information | 23 |
| Consolidated statement of comprehensive income | 24–25 |
| 2 – Segment information 3 – Other operating income 4 – Personnel expenses 5 – Other operating expenses 6 – Income tax |
24 24 24 25 25 |
| Consolidated balance sheet | 25–30 |
| 7 – Property, plant and equipment and intangible assets 8 – Interests in associates and joint ventures 9 – Financial instruments by category 10 – Financial liabilities 11 – Provisions 12 – Contingent liabilities and other commitments |
25 26 27 28 29 30 |
| Other information | 30–32 |
| 13 – Related party transactions 14 – Risk and capital management 15 – New and amended standards and interpretations 16 – Significant events after September 30, 2023 |
30 31 31 32 |
Kapsch TrafficCom is a global supplier of superior technologies, solutions and services in the ITS market (Intelligent Transportation Systems). Intelligent Transportation Systems support and optimize traffic, so they use information and communication solutions.
Kapsch TrafficCom Group operates in two segments: tolling and traffic management.
This segment comprises activities relating to the implementation and the technical and commercial operation of toll collection systems. Projects are generally awarded by public agencies or private concessionaires as part of tender procedures. Toll collection systems may comprise both individual road sections and nation-wide road networks. The manufacture and procurement of components both for the expansion and adaptation of the systems installed by Kapsch TrafficCom and on behalf of third parties complement the portfolio of Kapsch TrafficCom; toll services for business customers and private customers further enhance it.
This segment primarily comprises activities relating to the implementation and operation of systems and solutions for controlling traffic and mobility behavior as well as the associated components business. The strategic focus is on the areas of traffic optimization, decision intelligence (analysis, simulation and prediction of traffic) and the operation of mobility platforms and services. One basis for this is the use of increasing amounts of data for analysis, simulation and intelligent control of traffic flows and mobility behavior. Although public authorities are the main customers in the traffic management segment, private companies are also involved.
The parent company (reporting entity) of this Group is Kapsch TrafficCom AG. The company is a joint stock corporation incorporated and domiciled in Vienna, Austria. The address of its registered office is 1120 Vienna, Am Europlatz 2.
Further information on the Group structure and the scope of consolidation can be found in the consolidated financial statements as of March 31, 2023.
This condensed interim financial statements for the first half of the financial year ended September 30, 2023 has been prepared in accordance with the International Financial Reporting Standards (IFRS) issued by the IASB, as adopted by the EU, in accordance with IAS 34 Interim Financial Statements, and should only be read in conjunction with the annual financial statements for the year ended March 31, 2023.
The condensed interim financial statements has not been audited or reviewed by an auditor.
For ease of presentation, amounts have been rounded off and, unless indicated otherwise, are presented in thousands of Euro (k EUR). However, calculations are made using exact amounts, including the digits not shown, which may lead to rounding differences.
The accounting and valuation principles used in this condensed interim financial statements for the first half of the financial year ending September 30, 2023 are generally consistent with those applied in the consolidated financial statements as of March 31, 2023 (see note 35). An exemption is the new or amended IFRS and IFRIC disclosed in note 15.
The Group makes judgments, estimates, and assumptions regarding the application of accounting principles and the reported quantities of assets, liabilities, income, and expenses to prepare the condensed consolidated interim financial statements. These predictions may not match the final results. All estimates and judgments are continually re-evaluated and are based on historical experience and other factors, including expectations regarding future events that appear reasonable under the given circumstances.
The estimates and assumptions made by the Management are in line with those adopted in the consolidated financial statements for the year ended March 31, 2023 (note 1.4) and described therein. These have also been applied to the financial statements for the first half of 2023/24.
The segment results by business type, which also correspond to performance obligations pursuant to IFRS 15, are as follows:
| H1 2022/23 | H1 2023/24 | |||||
|---|---|---|---|---|---|---|
| Tolling | Traffic Management |
Total | Tolling | Traffic Management |
Total | |
| Revenues | 195,320 | 69,432 | 264,752 | 188,890 | 77,495 | 266,385 |
| Implementation | 54,154 | 20,460 | 74,613 | 50,640 | 26,605 | 77,245 |
| Operations | 101,979 | 46,469 | 148,448 | 99,878 | 46,607 | 146,486 |
| Components | 39,187 | 2,503 | 41,690 | 38,372 | 4,282 | 42,654 |
| Operating result | 2,466 | 2,266 | 4,732 | 64,417 | 8,717 | 73,134 |
| EBIT margin | 1.3% | 3.3% | 1.8% | 34.1% | 11.2% | 27.5% |
As in the previous year, no customer contributed more than 10% of revenues in the first half of 2023/24.
| H1 2022/23 | H1 2023/24 | |
|---|---|---|
| Compensation claims from Germany | 0 | 66,291 |
| Exchange rate gains from operating activities | 13,316 | 5,264 |
| Gains from early termination of a leasing contract | 3,143 | 0 |
| Sundry operating income | -1,040 | 852 |
| Total | 15,419 | 72,407 |
The highest amount of other operating income relates to compensation for autoTicket from the Federal Republic of Germany. Operating foreign currency gains in the first half of 2023/24 were mainly due to exchange rate fluctuations of the Argentine peso and US dollar (USD) against the Euro (EUR).
Personnel expenses decreased by 4.5% to k EUR -119,999 in the first half of 2023/24, mainly due to the decrease in the number of employees. As of September 30, 2023, there were 3,939 employees, 6.1% fewer than in the previous year (March 31, 2023: 4,039).
| H1 2022/23 | H1 2023/24 | |
|---|---|---|
| Legal and consulting fees | -5,393 | -8,369 |
| Communication and IT expenses | -7,272 | -7,507 |
| Travel expenses | -2,799 | -3,587 |
| Maintenance | -3,646 | -3,131 |
| Exchange rate losses from operating activities | -4,137 | -2,353 |
| Rental and other building expenses | -1,817 | -2,322 |
| License and patent expenses | -1,623 | -2,312 |
| Automobile expenses | -2,355 | -1,819 |
| Insurance costs | -1,508 | -1,720 |
| Marketing and advertising expenses | -1,573 | -1,480 |
| Taxes and charges | -1,217 | -1,292 |
| Allowances on trade and other receivables | 1,132 | 10,072 |
| Other | -3,306 | -5,894 |
| Total | -35,515 | -31,715 |
Legal and consulting expenses increased by k EUR 2,977 in the first half of the year due to consulting costs for the restructuring. Operating foreign currency losses fell by k EUR 1,784 in the first half of 2022/23, primarily in connection with the US dollar (USD) against the Euro (EUR). Valuation allowances on receivables were reversed in the amount of k EUR 8,940. Other operating expenses include various expense items, each less than m EUR 1 in the current reporting period and in the same period of the previous year.
Income tax relates to current taxes and to deferred tax assets and liabilities. The effective tax expense is not determined until the end of the financial year. During the financial year, Kapsch TrafficCom uses a theoretical tax rate. This rate is applied to Group earnings before taxes adjusted for the already taxed proportional results from associates and joint ventures and before impairment of goodwill. At year-end, the effective tax rate may differ from the (theoretical) tax rate during the year. This may result from differences in taxation in various countries, the recognition or impairment of tax loss carry forwards, tax allowances and permanent tax differences.
In the first half of 2023/24 a theoretical tax rate of 23% was applied to the Group's pre-tax result (previous year: 25%). This tax rate is based on a revenue-weighted analysis of the nominal tax rates of the individual countries in which Kapsch TrafficCom operates.
| H1 2022/23 | H1 2023/24 | |
|---|---|---|
| Carrying amount as of March 31 of financial year | 84,741 | 83,886 |
| Additions | 2,215 | 4,916 |
| Additions of right-of-use assets from leases | 15,598 | 2,653 |
| Disposals | -506 | -1,713 |
| Disposals of right-of-use assets from leases | -2,549 | -1,086 |
| Depreciation, amortization and other movements | -4,412 | -4,138 |
| Depreciation on right-of-use assets from leases | -5,834 | -5,090 |
| Currency translation differences | 2,416 | -36 |
| Carrying amount as of September 30 of financial year | 91,670 | 79,393 |
The additions in the first half of 2023/24 largly concern the expansion of production capacity in Austria. The additions to rights of use from leases in the first half of 2022/23 mainly relate to the extension of the lease for the office building of the headquarters in Vienna until 2032.
As of September 30, 2023 property, plant and equipment included right-of-use assets from leases in the amount of k EUR 38,169 (September 30, 2022: k EUR 45,572).
Details of associates and joint ventures are shown in the consolidated financial statements of 2022/23.
| H1 2022/23 | H1 2023/24 | |
|---|---|---|
| Carrying amount as of March 31 of financial year | 27,832 | 24,736 |
| Additions | 0 | 161 |
| Proportional result of the period from core business | -979 | 8,116 |
| Proportional result of the period from financial investments | -620 | -558 |
| Currency translation differences | -56 | 129 |
| Carrying amount as of September 30 of financial year | 26,178 | 32,584 |
| thereof interests in associates | 7,924 | 6,720 |
| thereof interests in joint ventures | 18,254 | 25,863 |
As of September 30, 2023 as well as of September 30, 2022 and March 31, 2023, shares in associates relate to Traffic Technology Services Inc., USA.
The interests in joint ventures as of September 30, 2023 as well as of September 30, 2022 and March 31, 2023, mainly relate to the joint venture autoTicket GmbH, Germany.
Proportional results from associates and joint ventures are split in the presentation in the income statement and are individually valued. Results from associates and joint ventures whose activities and strategic directions are part of the core business of Kapsch TrafficCom are reported in the operating result. Results from other associates and joint ventures are reported in the result before income tax.
| Financial instruments by category | March 31, 2023 | Sept. 30, 2023 | |||
|---|---|---|---|---|---|
| Fair Value Level |
Carrying amount |
Fair value | Carrying amount |
Fair value | |
| Trade receivables and other current and | |||||
| non-current assets | 122,317 | — | 141,703 | — | |
| At amortized cost | 88,270 | — | 105,600 | — | |
| Trade receivables (current and non-current) | Level 3 | 88,270 | — | 105,600 | — |
| At fair value through profit or loss | 1,234 | 1,234 | 505 | 505 | |
| Derivative financial instruments | Level 2 | 1,234 | 1,234 | 505 | 505 |
| Other non-financial assets2) | 32,813 | — | 35,598 | — | |
| Contract assets (non-current and current) at amortized cost1) |
Level 3 | 86,079 | — | 88,729 | — |
| Other financial assets and investments (non-current and current) |
18,126 | — | 6,290 | — | |
| At fair value through profit or loss | 3,030 | 3,030 | 3,018 | 3,018 | |
| Securities | Level 1 | 2,931 | 2,931 | 2,913 | 2,913 |
| Investments | Level 3 | 98 | 98 | 105 | 105 |
| Investments (with option to fair value through OCI) | Level 3 | 0 | 0 | 0 | 0 |
| At amortized cost1) | 15,097 | — | 3,272 | — | |
| Other financial assets and loans (non-current) | Level 3 | 13,188 | — | 1,764 | — |
| Other financial assets and loans (current) | Level 3 | 1,909 | — | 1,508 | — |
| Cash and cash equivalents at amortized cost1) | Level 3 | 45,228 | — | 41,277 | — |
| Financial liabilities (non-current and current) at amortized cost |
189,642 | 185,788 | 145,748 | 145,273 | |
| Promissory note bond | Level 2 | 31,257 | 30,782 | 8,493 | 7,566 |
| Project financing | Level 2 | 44,052 | 44,097 | 17,662 | 17,719 |
| Operating loans | Level 2 | 92,483 | 89,211 | 99,107 | 99,394 |
| Other financial liabilities | Level 2 | 21,849 | 21,697 | 20,487 | 20,593 |
| Lease liabilities (non-current and current) at amortized cost |
43,794 | — | 38,753 | — | |
| Lease liabilities (non-current and current)3) | — | 43,794 | — | 38,753 | — |
| Trade payables at amortized cost1) | Level 3 | 75,051 | — | 79,343 | — |
| Other liabilities and deferred income (non-current and current) |
44,095 | — | 51,417 | — | |
| At amortized cost1) | 430 | — | 421 | — | |
| Other financial liabilities | Level 3 | 430 | — | 421 | — |
| At fair value through profit or loss | 74 | 74 | 74 | 74 | |
| Derivative financial instruments | Level 2 | 74 | 74 | 74 | 74 |
| Other non-financial liabilities2) | 43,590 | — | 50,922 | — |
1) No disclosure of fair value, as the carrying value of this item measured at amortized cost is a reasonable approximation in accordance with IFRS 7.29 a).
2) Non-financial receivables and liabilities are only included for reconciliation with the respective balance sheet item.
3) Lease liabilities belong to financial liabilities, but do not underly the disclosure requirements of IFRS 7.
Details on the fair value-hierarchies can be found in the consolidated financial statements of 2022/23. No reclassifications between fair value hierarchy levels have been made since then. The introductory table in this note shows the carrying amounts.
As in the previous year, securities as of September 30, 2023 related to government bonds, bank bonds and shares in investment funds. Kapsch TrafficCom made use of the option to recognize a debt instrument at fair value that would have to be recognized at amortized cost under IFRS 9.
There were no adjustments in the first half of 2023/24 for investments measured according to Level 3.
| March 31, 2022 |
Sept. 30, 2022 |
March 31, 2023 |
Sept. 30, 2023 |
|
|---|---|---|---|---|
| Non-current financial liabilities | 136,051 | 64,652 | 58,472 | 117,705 |
| Current financial liabilities | 44,013 | 110,453 | 131,170 | 28,043 |
| 180,065 | 175,105 | 189,642 | 145,748 |
Movements in financial liabilities are as follows:
| H1 2022/23 | ||||||
|---|---|---|---|---|---|---|
| Non current |
Current | Total | Non current |
Current | Total | |
| Carrying amount as of | ||||||
| March 31 of financial year | 136,051 | 44,013 | 180,065 | 58,472 | 131,170 | 189,642 |
| Reclassification | -73,982 | 73,982 | 0 | 58,952 | -58,952 | 0 |
| Additions | 1,600 | 4,484 | 6,084 | 914 | 37,527 | 38,441 |
| Repayments | 0 | -16,728 | -16,728 | 0 | -83,681 | -83,681 |
| Currency translation differences and | ||||||
| other non-cash movements | 982 | 4,702 | 5,684 | -633 | 1,980 | 1,347 |
| Carrying amount as of | ||||||
| September 30 of financial year | 64,652 | 110,453 | 175,105 | 117,705 | 28,043 | 145,748 |
Additions and repayments are cash effective. Reclassifications between non-current and current financial liabilities are non-cash movements and relate to reclassifications due to repayment scheduled and remaining maturities.
The fair values and gross cash flows (including interest) of financial liabilities are as follows:
| Sept. 30, 2022 | Sept. 30, 2023 | |
|---|---|---|
| In the next 6 months | 20,793 | 19,219 |
| In the next 7 to 12 months | 92,478 | 5,111 |
| Gross cash flows up to one year | 113,271 | 24,330 |
| Between 1 and 2 years | 22,599 | 128,288 |
| Between 2 and 3 years | 18,550 | 8,551 |
| Between 3 and 4 years | 10,030 | 0 |
| Between 4 and 5 years | 5,017 | 0 |
| Gross cash flows 2-5 years | 56,196 | 136,839 |
| Gross cash flows more than 5 years | 9,100 | 0 |
| Total | 178,567 | 161,168 |
| March 31, 2022 |
Sept. 30, 2022 |
March 31, 2023 |
Sept. 30, 2023 |
|
|---|---|---|---|---|
| Non-current provisions | 1,685 | 1,510 | 1,454 | 1,621 |
| Current provisions | 28,630 | 24,542 | 18,880 | 16,679 |
| 30,315 | 26,053 | 20,334 | 18,300 |
| March 31, 2023 |
Addition | Utilization | Disposal | Reclassi fication |
Currency translation differences |
Sept. 30, 2023 |
|
|---|---|---|---|---|---|---|---|
| Warranties | 271 | 0 | 0 | 0 | 25 | 0 | 296 |
| Projects (excl. impending losses) | 50 | 0 | 0 | 0 | -25 | 0 | 25 |
| Provision for restructuring costs | 6 | 0 | 0 | 0 | -6 | 0 | -0 |
| Other non-current provisions | 1,127 | 15 | 0 | -4 | 131 | 32 | 1,300 |
| Non-current provisions | 1,454 | 15 | 0 | -4 | 125 | 32 | 1,621 |
| Warranties | 1,517 | 0 | 0 | 0 | -25 | 11 | 1,503 |
| Provision for losses from | |||||||
| onerous contracts | 12,586 | 1,410 | -106 | -2,443 | 0 | 176 | 11,624 |
| Projects (excl. impending losses) | 897 | 0 | -75 | -97 | 25 | -10 | 740 |
| Legal fees, costs of litigation and contract risks |
615 | 0 | -195 | -379 | 0 | -3 | 38 |
| Provision for restructuring costs | 204 | 0 | -155 | 0 | 6 | 0 | 55 |
| Other current provisions | 3,063 | 1,499 | -244 | -1,305 | -131 | -163 | 2,719 |
| Current provisions | 18,880 | 2,909 | -774 | -4,223 | -125 | 11 | 16,679 |
| Total | 20,334 | 2,924 | -774 | -4,227 | 0 | 43 | 18,300 |
Provision for losses from onerous contracts as of September 30, 2023 as of March 31, 2023, mainly relates to implementation projects of an American subsidiary that cannot be completed profitably.
| March 31, 2022 |
Addition | Utilization | Disposal | Reclassi fication |
Currency translation differences |
Sept. 30, 2022 |
|
|---|---|---|---|---|---|---|---|
| Warranties | 512 | 0 | 0 | 0 | -127 | 0 | 306 |
| Projects (excl. impending losses) | 75 | 0 | 0 | 0 | -25 | 0 | 50 |
| Provision for restructuring costs | 22 | 0 | -20 | 0 | 2 | ||
| Other non-current provisions | 1,076 | 0 | 0 | -15 | 0 | 11 | 1,072 |
| Non-current provisions | 1,685 | 0 | 0 | -15 | -172 | 11 | 1,510 |
| 0 | |||||||
| Warranties | 1,772 | 0 | 0 | -195 | 127 | 27 | 1,730 |
| Provision for losses from | |||||||
| onerous contracts | 20,976 | 727 | -653 | -6,376 | 0 | 1,996 | 16,670 |
| Projects (excl. impending losses) | 4,457 | 0 | -25 | 0 | 25 | -2 | 4,455 |
| Legal fees, costs of litigation and contract risks |
305 | 0 | -63 | -37 | 0 | 8 | 213 |
| Provision for restructuring costs | 155 | 0 | -85 | 0 | 20 | -2 | 87 |
| Other current provisions | 965 | 1,632 | -292 | -856 | 0 | -62 | 1,387 |
| Current provisions | 28,630 | 2,359 | -1,118 | -7,465 | 172 | 1,965 | 24,542 |
| Total | 30,315 | 2,359 | -1,118 | -7,480 | 0 | 1,976 | 26,053 |
The contingent liabilities primarily result from large-scale projects. Major projects frequently call for the issuance of bid bonds or performance bonds, which are issued by financial institutions and insurance firms. There is the possibility of a claim, which could lead to a right of recourse on the part of the financial institution or insurance company against the Group if the contractual duties cannot be met.
The contingent liabilities and other commitments solely comprise obligations owed to third parties and are in line with standard industry practice. They detail as follows:
| March 31, 2023 | Sept. 30, 2023 | |
|---|---|---|
| North America (toll collection systems) | 26,595 | 27,301 |
| Australia (toll collection systems) | 14,568 | 14,505 |
| Total | 41,164 | 41,806 |
Further performance and bid bonds from financial institutes or insurance companies, where an outflow of resources is deemed unlikely, amount to k EUR 207,554 (March 31, 2023: k EUR 248,347) and are not included in the balance sheet or in the contingent liabilities.
Assets of Kapsch TrafficCom AB, Sweden, in the amount of k EUR 10,405 (March 31, 2023: k EUR 10,638) were pledged as collateral for contingent liabilities in favor of a Swedish bank.
The related entities and persons of Kapsch TrafficCom include, in particular, Kapsch Group companies, including their subsidiaries, joint ventures and associated companies, their executive bodies (Executive Board and Supervisory Board, if present) and close affiliates of the bodies and companies over which they have control or significant influence.
The direct parent company of the reporting entity is KAPSCH-Group Beteiligungs GmbH, Vienna. This company is a 100% subsidiary of DATAX HandelsgmbH, Vienna, which is the controlling entity of Kapsch TrafficCom AG and the ultimate parent of Kapsch Group. Subsidiaries of KAPSCH Group are referred to as affiliated companies if they are not part of the Kapsch TrafficCom Group.
The following tables provide an overview of revenues and expenses as well as receivables and liabilities for related parties.
| H1 2022/23 | H1 2023/24 | |
|---|---|---|
| Parent company | ||
| Revenues | 30 | 32 |
| Expenses | -39 | -157 |
| Income (+) / Expense (-) from tax allocation | 0 | 0 |
| Affiliated companies | ||
| Revenues | 69 | 129 |
| Expenses | -2,970 | -3,092 |
| Associated companies | ||
| Revenues | 0 | 94 |
| Expenses | 0 | -4,259 |
| Joint ventures | ||
| Revenues | 76 | 53 |
| Expenses | -1,554 | -771 |
| Other related parties | ||
| Revenues | 0 | 0 |
| Expenses | -28 | -771 |
| March 31, 2023 | Sept. 30, 2023 | |
|---|---|---|
| Parent company | ||
| Trade receivables and other assets | 72 | 111 |
| Trade payables and other liabilities | -5,371 | -5,528 |
| Receivables (+) / Liabilities (-) from tax allocation | -26 | -26 |
| Affiliated companies | ||
| Trade receivables and other non-current and current assets | 241 | 389 |
| Trade payables and other liabilities | -8,774 | -10,203 |
| Associated companies | ||
| Trade receivables and other non-current and current assets | 0 | 842 |
| Trade payables and other liabilities | 0 | 0 |
| Joint ventures | ||
| Trade receivables and other non-current and current assets | 12,295 | 8 |
| Trade payables and other liabilities | -417 | -102 |
| Other related parties | ||
| Trade receivables and other non-current and current assets | 0 | 0 |
| Trade payables and other payables including pension benefits | -8,900 | -8,477 |
Trade receivables and other non-current and current assets with joint ventures mainly related to a loan to autoTicket GmbH, Germany. A comprehensive presentation of the relationships with related parties is shown in note 31 of the consolidated financial statements 2022/23.
The financial risks to which Kapsch TrafficCom is exposed are described in the consolidated financial statements as of March 31, 2023 (note 32) as well as the management report on the first half of 2023/24.
| New/amended IFRS | Published by the IASB and adopted by the EU |
Applicable to financial years beginning on or after |
Material impact on Group's consolidated financial statement |
|
|---|---|---|---|---|
| IFRS 17 | Insurance Contracts | November 2021 | January 1, 2023 | None |
| IAS 1, | Amendments to IAS 1 Presentation of | |||
| IFRS | Financial Statements and IFRS Practice | |||
| Practice | Statement 2: Disclosure of Accounting | |||
| Statement 2 | policies | March 2022 | January 1, 2023 | None |
| IAS 8 | Definition of Accounting Estimates | March 2022 | January 1, 2023 | None |
The application of the new/amended standards has not had any impact on the condensed consolidated interim statements.
In October, Kapsch TrafficCom AG won a notable project. A highway project in Germany also involves networked mobility: the company was commissioned to implement a Cooperative Intelligent Transport Intelligent Transport System (C-ITS) with hardware and software for construction site areas and to subsequently operate it for up to 12 years.
In October, the decision was made to discontinue the Tolling-Services-App "Uproad" in the USA.
Vienna, November 14, 2023
The Executive Board
Georg Kapsch Chief Executive Officer
Alfredo Escribá Gallego Executive Board Member
| February 21, 2024 | Results Q1–Q3 2023/24 |
|---|---|
| June 19, 2024 | Results FY 2023/24 |
| August 21, 2024 | Results Q1 2024/25 |
| August 25, 2024 | Record date: Annual General Meeting |
| September 4, 2024 | Annual General Meeting |
| November 20, 2024 | Results H1 2024/25 |
| February 19, 2025 | Results Q1–Q3 2024/25 |
| Investor Relations team | Marcus Handl, Valerie Riegler |
|---|---|
| Shareholders' telephone line | +43 50 811 1122 |
| [email protected] | |
| Website | www.kapsch.net |
Certain statements in this report are forward-looking statements. They contain the words "believe," "intend," "expect," "plan," "assume," and terms of a similar meaning. Forward-looking statements reflect the beliefs and expectations of the company. Actual events may deviate significantly from the expected developments, due to a range of factors. As a result, readers are cautioned not to place undue reliance on such forward-looking statements. Kapsch TrafficCom AG is under no obligation to update forward-looking statements made herein, except as required by applicable law.
This report was created with care and all data has been checked conscientiously. Nevertheless, the possibility of layout and printing errors cannot be excluded. Differences in calculations may arise due to the rounding of individual items and percentages. The English translation is for convenience; only the German version is authentic.
When referring to people, the authors strive to use both the male and female forms as far as possible (for example: he or she). For readability reasons, occasionally only the masculine form is used. However, it always refers to people of all gender categories.
This report does not constitute a recommendation or invitation to purchase or sell securities of Kapsch TrafficCom.
Media owner and publisher: Kapsch TrafficCom AG Place of publishing: Vienna, Austria Editorial deadline: November 14, 2023
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.
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