Quarterly Report • Aug 30, 2017
Quarterly Report
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Kapsch TrafficCom
2017/18 and 2016/17: Refers to the respective fiscal year (April 1 – March 31) Q1: first quarter (April 1 – June 30) All figures presented in EUR million unless otherwise stated
Earnings Data 2016/17 Q1 2016/17 Q1 2017/18 +/- Revenues 648.5 152.3 164.3 7.9% Share of ETC segment 72.2% 73.8% 75.1% 1.3%p Share of IMS segment 27.8% 26.2% 24.9% -1.3%p EBITDA 77.8 21.8 15.7 -27.7% EBITDA margin 12.0% 14.3% 9.6% -4.7%p EBIT 60.1 17.6 11.7 -33.4% EBIT margin 9.3% 11.6% 7.1% -4.4%p Profit before tax 60.6 17.3 9.3 -46.6% Profit for the period 42.7 12.4 6.6 -46.7% Profit for the period attributable to equity holders 43.6 12.7 6.8 -46.2% Earnings per share in EUR 3.35 0.97 0.52 -46.2% Business segments 2016/17 Q1 2016/17 Q1 2017/18 +/- Electronic Toll Collection (ETC) Revenues 468.4 112.4 123.4 9.7% EBIT 65.5 18.1 14.6 -19.3% EBIT margin 14.0% 16.1% 11.9% -4.3%p Intelligent Mobility Solutions (IMS) Revenues 180.0 39.8 40.9 2.7% EBIT -5.4 -0.5 -2.9 -440.6% EBIT margin -3.0% -1.4% -7.1% -5.8%p Revenues by region 2016/17 Q1 2016/17 Q1 2017/18 +/- EMEA 62.9% 66.0% 64.9% -1.2%p Americas 30.1% 26.0% 29.6% 3.6%p APAC 7.0% 8.0% 5.5% -2.5%p Balance sheet data March 31, 2017 June 30, 2017 +/- Total assets 648.8 643.0 -0.9%
| Total equity 1) | 227.3 | 232.6 | 2.3% | |
|---|---|---|---|---|
| Equity ratio 1) | 35.0% | 36.2% | 1.1%p | |
| Net credit (+)/debt (-) 2) | 19.6 | 13.4 | -31.5% | |
| Gearing 3) | — | — | ||
| Capital employed 4) | 422.7 | 427.1 | 1.0% | |
| Net working capital 5) | 247.9 | 256.5 | 3.4% | |
| Cash flow | 2016/17 | Q1 2016/17 | Q1 2017/18 | +/- |
| Net investments 6) | 12.3 | 6.5 | 1.3 | -79.8% |
| Free cash flow 7) | 42.6 | 13.9 | -4.3 | -130.7% |
| Other information | 2016/17 | Q1 2016/17 | Q1 2017/18 | +/- |
| Employees, end of period | 4,823 | 4,659 | 4,829 | 3.6% |
| On-board units, in million units | 11.67 | 2.84 | 2.94 | 3.5% |
1) Incl. non-controlling interests
2) Cash and cash equivalents + other current financial assets - financial liabilities
3) Net debt/equity
4) Total equity + financial liabilities
5) Inventories + current tax receivables + trade receivables - trade payables - current tax payables
6) Investments for purchase and payments from the disposal of property, plant and equipment and intangible assets
7) Net cash flow from operating activities - net investments
Large new business opportunities are being evaluated or already worked on.
Takeover of the remaining 67% of Mexican ITS company SIMEX.
Revenues +7.9%
be a challenge.
Strategy is being advanced.
EBIT -33.4%
Kapsch TrafficCom has had to accept a so-so start in the new fiscal year. On the one hand, we were able to continue our growth course and increase revenues by 7.9% to EUR 164.3 million. On the other hand, we recorded a decline in operating result (EBIT) of EUR 5.9 million (-33.4%) down to EUR 11.7 million. There were several reasons for this:
When adjusted by the last two points – i.e. the known one-time effect and the effects of exchange rate fluctuations, which can only be influenced to a limited extent – we have nearly achieved a stable EBIT development in the normal course of business. Nevertheless, I had been hoping for a better result. Based on this first quarter, I believe it will be a challenge in 2017/18 to achieve the EBIT that we had in the last fiscal year. This is all the more so if the effects of exchange rate fluctuations will continue to work against us. Fiscal year 2017/18: Achieving last year's EBIT will
However, I am still confident. During this first quarter, important foundations for our continued success were laid that are in harmony with our strategy.
In our South African subsidiary TMT, 17.1% of the shares were handed over indirectly to a trust, and – linked to this – an "Employee Participation Scheme Trust" was introduced that enables all group employees in South Africa to voluntarily participate in TMT's company success. The goal of this measure was to increase both the motivation of the local colleagues as well as the competitiveness of the company within the context of the BBBEE assessment (Broad-Based Black Economic Empowerment: a program in South Africa to achieve equal economic opportunities for previously disadvantaged citizens).
| Securing the core business | In Poland and the Czech Republic, we installed and are currently operating the nation-wide truck tolling system. |
|---|---|
| in Poland and the Czech | The new tendering process for an eight-year contract in Poland began already at the end of 2016. In the Czech |
| Republic. | Republic, the new tendering for a ten-year contract was announced before summer. We will be striving to be awarded the new contract in both markets. |
Moreover, there is a series of large new business opportunities that our teams are looking at or are already working on intensively. As an example, I would like to mention the still ongoing tendering process in Bulgaria for setting up a nation-wide truck tolling system (eVignette) and technical maintenance for three additional years. In Germany and the US, opportunities have come up that we will hopefully be able to report on within the next twelve months. Expanding the core business.
At this point, I am happy to announce that, following the quarterly closing date, we have taken over the remaining 67% of Mexican intelligent transportation systems (ITS) company SIMEX. Kapsch TrafficCom was already in possession of 33% of the company since 2012. With more than 30 years on the market and 255 employees, SIMEX is an important player in the Mexican ITS market.
Net credit: EUR 13.4 million. The free cash flow of the first quarter was negative at EUR -4,3 million. Consequently, the net credit of EUR 19.6 million on March 31, 2017, also sank to a still rock-solid EUR 13.4 million on June 30, 2017. In the same period, the equity ratio rose from 35.0% to 36.2%.
Even though the results of the first quarter of 2017/18 were not satisfactory from my point of view, I am convinced that we are on the right path. Potential improvements have been recognized and are being implemented. And promising new business opportunities are being processed by our teams with their full commitment.
Sincerely,
Georg Kapsch Chief Executive Officer
In the first quarter of the current fiscal year 2017/18, revenues of Kapsch TrafficCom amounted to EUR 164.3 million and as such were 7.9% higher than in the equivalent period of the previous year (Q1 2016/17: EUR 152.3 million). Fortunately, both the Electronic Toll Collection (ETC) and the Intelligent Mobility Solutions (IMS) segments recorded an increase in revenues.
The EMEA region (Europe, the Middle East and Africa) generated 64.9% of the overall revenues. The Americas region (North and South America) experienced growth primarily as a result of the acquisition of the KTT business in the previous year, generating 29.6% of the Group's revenues. The APAC region (Asia-Pacific) contributed 5.5% towards the overall total.
The operating result (EBIT), at EUR 11.7 million, was below the previous year's figure of EUR 17.6 million. This corresponds to an EBIT margin of 7.1% (Q1 2016/17: 11.6%). Negative currency effects, primarily from the EUR/USD and EUR/ZAR currency bundles, impacted the EBIT in the amount of EUR -3.8 million compared to EUR -1.4 million in the equivalent period of the previous year. In the first quarter 2016/17, a onetime effect ("badwill") had a positive effect in the amount of EUR 3.0 million (the difference between the purchase price for KTT and the value of the acquired net assets, on the basis of a purchase price allocation).
The financial result deteriorated from EUR -0.3 million to EUR -2.3 million in the first quarter of the current fiscal year compared to the previous year. This was mainly due to higher currency losses and lower currency gains of EUR -1.5 million in total. The currency differences are mainly due to the South African rand (ZAR) and the US dollar (USD) compared to the euro (EUR).
The profit for the period in the first quarter 2017/18 amounted to EUR 6.6 million (first quarter 2016/17: EUR 12.4 million). This reduction of -46.7% compared to the same period of the previous year is due to the lower EBIT as well as the worse financial results.
The segments' performance in the first quarter was as follows:
The largest share of the revenues (EUR 86.0 million, Q1 2016/17: EUR 75.9 million) was once more attributable to the EMEA region with the nationwide road toll collection projects in the Czech Republic, Poland, Belarus and Austria. Additionally, the volume of design & build projects significantly increased compared to the equivalent period of the previous year, in particular through expansion and renewal projects in Poland and Austria.
Revenues in the Americas region increased over the first quarter to EUR 29.9 million (Q1 2016/17: EUR 26.0 million), with this positive development primarily being attributable to the US projects previously acquired in conjunction with KTT. The volume of design & build projects rose compared to the equivalent period of the previous year.
In the APAC region, revenues declined (EUR -3.0 million) during the equivalent period of the previous year, mainly due to the comparatively high level of revenues generated due to construction projects in Australia in the last fiscal year.
The number of on-board units sold in the first quarter of the fiscal year amounted to 2.94 million (Q1 2016/17: 2.84 million units). Increases were recorded above all in the US, Australia, Morocco and Norway, while the sales figures of Spain, Russia and Chile fell as compared to the equivalent period of the previous year. Overall, revenues of on-board units increased compared to the first quarter of the previous year (+3.5%).
ETC revenues by region.
The breakdown of the revenues generated by this segment according to business type is as follows:
| in EUR million | Q1 2016/17 | Q1 2017/18 | +/- |
|---|---|---|---|
| Revenue | 112.4 | 123.4 | 9.7% |
| Design & Build | 19.8 | 27.1 | 37.2% |
| Operations | 68.7 | 69.8 | 1.7% |
| Components | 24.0 | 26.4 | 10.1% |
| EBIT | 18.1 | 14.6 | -19.3% |
The EBIT of the ETC segment decreased by -19.3% from the comparative period and reached a value of EUR 14.6 million. In particular, other operating income decreased by EUR -6.0 million compared to the equivalent period of the previous year, which included proceeds from a legal dispute in the amount of EUR 1.5 million in the previous year and a badwill of EUR 0.9 million. Cost of materials and other production services, staff costs and other operating expenses increased in the first quarter of fiscal year 2017/18 to the comparable period, reflecting EUR 14.6 million (-19.3%).
higher sales.
The revenues generated by the IMS segment increased slightly to EUR 40.9 million (Q1 2016/17: EUR 39.8 million, +2.7%). While revenues in the EMEA region decreased (-16.5%), revenues in the Americas region rose sharply (+37.7%). Revenues in the APAC region remained at the previous year's level.
The breakdown of the revenues generated by this segment according to business type is as follows:
| in EUR million | Q1 2016/17 | Q1 2017/18 | +/- |
|---|---|---|---|
| Revenue | 39.8 | 40.9 | 2.7% |
| Design & Build | 14.6 | 18.6 | 27.0% |
| Operations | 22.3 | 20.1 | -9.9% |
| Components | 2.9 | 2.2 | -23.3% |
| EBIT | -0.5 | -2.9 | -440.6% |
The EBIT in the IMS segment amounted to EUR -2.9 million and was well below the previous year's figure (Q1 2016/17: EUR -0.5 million). In particular, the negative results in South Africa and from the smart parking business in the US impact the profitability of the segment. In the previous year, the badwill from the KTT acquisition had a positive effect of EUR 2.1 million on the segment. Cost of materials and other production services, staff costs and other operating expenses increased in the first quarter of fiscal year 2017/18 to the comparable period, reflecting higher sales.
The total assets of Kapsch TrafficCom amounted to EUR 643.0 million as of the balance sheet date, June 30, 2017 (March 31, 2017: EUR 648.8 million).
The item "trade receivables and other current assets" increased by EUR +4.6 million, mainly due to higher receivables from orders in progress in Austria and the Czech Republic. The increase in trade receivables in Poland and South Africa more than compensated for the decline in Belarus. The item "cash and cash equivalents" deteriorated (EUR -6.5 million) and the positions of "property, plant and equipment" and "intangible assets" (EUR -3.6 million) declined slightly due to lower investments.
On the liabilities side of the balance sheet, "current provisions" fell by EUR 4.0 million as well as "other non-current liabilities" by EUR 4.1 million. "Trade payables" declined slightly (EUR -3.5 million). On the other hand, "equity" rose to EUR 232.6 million (EUR +5.3 million) according to the "total comprehensive income for the period" (EUR 5.3 million). The equity ratio also increased from 35.0% in the first quarter of the previous year to 36.2% in the first quarter of 2017/18.
Net working capital increased from EUR 247.9 million as at March 31, 2017 to EUR 256.5 million as at June 30, 2017. "Current tax payables" were now included in the calculation of the net working capital in line with "current tax receivables".
ETC-EBIT:
IMS revenues:
EUR 40.9 million (+2.7%). IMS revenues by region.
IMS-EBIT: EUR -2.9 million (-440.6%). Net credit provided by cash and cash equivalents plus other current financial assets and less financial liabilities, amounted to EUR 13.4 million as at June 30, 2017 (EUR -6.2 million compared to March 31, 2017).
Net cash flow from operating activities in the first quarter of the fiscal year amounted to EUR -3.0 million (first quarter 2016/17: EUR 20.4 million). The decline compared to the previous year is due to the lower results in the reporting period (EUR -5.9 million) and the increase in "trade receivables and other current assets" (EUR 4.6 million) as well as the decline in "current provisions" (EUR 4.0 million). "Net payments of income taxes" also rose by EUR 7.0 million compared to the previous year.
Net cash flow from investing activities amounted to EUR -1.3 million in the first quarter of 2017/18, which is significantly more positive than in the first quarter of 2016/17. In the equivalent period of the previous year, net cash flow from investing activities amounted to EUR -25.4 million, while EUR -16.6 million were attributable to the acquisitions of the first quarter. As a result of the acquisition and integration of KTT, net investments in property, plant and equipment and intangible assets of EUR -7.2 million were above the value of the current fiscal year.
Free cash flow (net cash flow from operating activities minus net investments) was negative at EUR -4.3 million and was well below the previous year's figure of EUR 13.9 million, mainly due to the development of the result, the increase in receivables as well as the decrease in provisions and higher tax payments. The lower investments on the other hand relieve the free cash flow.
Net cash flow from financing activities as at June 30, 2017 amounted to EUR 0.4 million. In the previous year this position was influenced by the achieved funds from the issuance of the promissory note bond. In the first quarter of the previous year, net cash flow from financing activities amounted to EUR 55.5 million, which included a paid purchase price component for the remaining shares in the Czech Kapsch Telematic Services (EUR -14.0 million) in addition to the issuance of the promissory note bond.
Cash and cash equivalents amounted to EUR 204.8 million as of June 30, 2017 (March 31, 2017: EUR 211.3 million).
On July 18, 2017, Kapsch TrafficCom AG purchased the remaining 67% of the Mexican company SIMEX Integración de Sistemas S.A.P.I. De C.V., Mexico. Up to now, Kapsch TrafficCom held 33% of the shares and recorded the company as an associated company using the equity method. The purchase price for the remaining 67% of the shares was MXN 43 million (approximately EUR 2.1 million).
Vienna, August 30, 2017
The Executive Board
Mag. Georg Kapsch André Laux Dr.-Ing. Alexander Lewald Chief Executive Officer Executive Board member Executive Board member
as of June 30, 2017*)
| All amounts in TEUR | Note | Q1 2016/17 | Q1 2017/18 |
|---|---|---|---|
| Revenues | (6) | 152,259 | 164,260 |
| Other operating income | 9,219 | 1,292 | |
| Changes in finished and unfinished goods and work in progress | 1,053 | 326 | |
| Other own work capitalized | 439 | 141 | |
| Cost of materials and other production services | -59,603 | -58,464 | |
| Staff costs | -53,531 | -59,922 | |
| Amortization and depreciation | -4,179 | -4,024 | |
| Other operating expenses | (7) | -28,054 | -31,893 |
| Operating result | 17,604 | 11,717 | |
| Finance income | 2,605 | 1,043 | |
| Finance costs | -2,930 | -3,377 | |
| Financial result | -324 | -2,334 | |
| Results from associates and joint ventures | (11) | 57 | -124 |
| Result before income taxes | 17,337 | 9,259 | |
| Income taxes | (8) | -4,918 | -2,644 |
| Result for the period | 12,419 | 6,615 | |
| Result attributable to: | |||
| Equity holders of the company | 12,663 | 6,815 | |
| Non-controlling interests | -244 | -200 | |
| 12,419 | 6,615 | ||
| Earnings per share from the result for the period attributable to the equity holders of the company (in EUR) | |||
| diluted | 0.97 | 0.52 | |
| undiluted | 0.97 | 0.52 | |
| Other comprehensive income | |||
| Items subsequently be reclassified to the result for the period: | |||
| Currency translation differences | -526 | 798 | |
| Currency translation differences from net investments in foreign operations | 1,044 | -2,833 | |
| Available-for-sale financial assets: | |||
| Fair value gains/losses recognized in other comprehensive income | -773 | -20 | |
| Reclassification of cumulated net losses to the result for the period (impairment) | 773 | -0 | |
| Fair value adjustments of cash flow hedges | 0 | 50 | |
| Income tax relating to items subsequently reclassified to the result for the period | -276 | 713 | |
| Total items subsequently be reclassified to the result for the period | -564 | -1,292 | |
| Items subsequently not be reclassified to the result for the period: | |||
| Remeasurements of liabilities from post-employment benefits | 0 | 0 | |
| Income tax relating to items subsequently reclassified to the result for the period | 0 | 0 | |
| Total items subsequently not be reclassified to the result for the period | 0 | 0 | |
| Other comprehensive income for the period net of tax | (9) | -564 | -1,292 |
| Total comprehensive income for the period | 11,855 | 5,323 | |
| Total comprehensive income attributable to: | |||
| Equity holders of the company | 12,182 | 5,471 | |
| Non-controlling interests | -327 | -148 | |
| 11,855 | 5,323 |
Earnings per share relate to 13.0 million shares.
The notes on the following pages form an integral part of this interim financial information.
*) The condensed consolidated interim report has neither been audited nor been reviewed by an auditor.
| All amounts in TEUR Note |
March 31, 2017 | June 30, 2017 |
|---|---|---|
| ASSETS | ||
| Non-current assets | ||
| Property, plant and equipment (10) |
23,141 | 21,498 |
| Intangible assets (10) |
71,985 | 70,067 |
| Interests in associates and joint ventures (11) |
2,131 | 1,932 |
| Other non-current financial assets and investments (12) |
18,364 | 18,157 |
| Other non-current assets | 611 | 896 |
| Deferred tax assets | 11,938 | 11,930 |
| 128,169 | 124,480 | |
| Current assets | ||
| Inventories | 39,255 | 39,495 |
| Current tax receivables | 4,490 | 4,672 |
| Trade receivables and other current assets | 261,935 | 266,538 |
| Other current financial assets (12) |
3,638 | 3,039 |
| Cash and cash equivalents | 211,299 | 204,788 |
| 520,616 | 518,532 | |
| Total assets | 648,785 | 643,012 |
| EQUITY | ||
| Capital and reserves attributable to equity holders of the company | ||
| Share capital (13) |
13,000 | 13,000 |
| Capital reserve | 117,509 | 117,509 |
| Retained earnings and other reserves | 97,849 | 103,678 |
| 228,358 | 234,186 | |
| Non-controlling interests | -1,052 | -1,557 |
| Total equity | 227,306 | 232,630 |
| LIABILITIES | ||
| Non-current liabilities | ||
| Non-current financial liabilities (14) |
97,482 | 96,637 |
| Liabilities from post-employment benefits to employees (15) |
23,946 | 23,697 |
| Non-current provisions (16) |
9,993 | 9,582 |
| Other non-current liabilities | 10,536 | 6,400 |
| Deferred tax liabilities | 2,745 | 2,836 |
| 144,702 | 139,153 | |
| Current liabilities | ||
| Trade payables | 55,950 | 52,439 |
| Other liabilities and deferred income | 103,478 | 105,520 |
| Current tax payables | 1,807 | 1,813 |
| Current financial liabilities (14) |
97,902 | 97,803 |
| Current provisions (16) |
17,640 | 13,655 |
| 276,778 | 271,230 | |
| Total liabilities | 421,479 | 410,382 |
| Total equity and liabilities | 648,785 | 643,012 |
The notes on the following pages form an integral part of this interim financial information.
| All amounts in TEUR Attributable to equity holder of the company |
Non controlling interests |
Total equity | |||||
|---|---|---|---|---|---|---|---|
| Share capital |
Capital reserve |
Other reserves |
Consolidated retained earnings |
||||
| Carrying amount as of March 31, 2016 | 13,000 | 117,509 | -21,887 | 114,225 | 7,811 | 230,658 | |
| Effects from increase in shares of subsidiaries | -13,062 | -8,772 | -21,834 | ||||
| Dividend | 0 | 0 | 0 | ||||
| Result for the period | 12,663 | -244 | 12,419 | ||||
| Other comprehensive income for the period: | |||||||
| Currency translation differences | 266 | -9 | 257 | ||||
| Fair value gains/losses on available-for-sale | |||||||
| financial assets | -821 | -821 | |||||
| Carrying amount as of June 30, 2016 | 13,000 | 117,509 | -35,504 | 126,888 | -1,213 | 220,679 | |
| Carrying amount as of March 31, 2017 | 13,000 | 117,509 | -40,486 | 138,335 | -1,052 | 227,306 | |
| Effects from decrease in shares of subsidiaries | 357 | -357 | 0 | ||||
| Dividend | 0 | ||||||
| Result for the period | 6,815 | -200 | 6,615 | ||||
| Other comprehensive income for the period: | |||||||
| Currency translation differences | -1,379 | 52 | -1,327 | ||||
| Fair value gains/losses on available-for-sale | |||||||
| financial assets | -15 | -15 | |||||
| Fair value adjustments of cash flow hedges | 50 | 50 | |||||
| Carrying amount as of June 30, 2017 | 13,000 | 117,509 | -41,830 | 145,508 | -1,557 | 232,630 |
The effects from the decrease of shares in subsidiaries in the first quarter of the fiscal year 2017/18 relate to TMT Services and Supplies (Pty) Ltd., South Africa, MobiServe Pty Ltd., South Africa, as well as to Electronic Toll Collection (PTY) Ltd, South Africa. A total of 17.1% of the shares of TMT Services and Supplies (Pty) Ltd., South Africa, was distributed indirectly via MobiServe Pty Ltd., South Africa, to an "Employee Participation Scheme Trust", in which all group employees in South Africa on a voluntary basis can participate in the company success of the TMT. This measure aimed at increasing the motivation of the employees as well as the competitiveness of the company within the framework of the BBBEE evaluation in South Africa. This indirectly also reduced the share of Electronic Toll Collection (PTY) Ltd, South Africa.
The effects from increase in shares of subsidiaries in the first quarter of the fiscal year 2016/17 result from the acquisition of the remaining 48% in Kapsch Telematic Services spol. s r.o., Czech Republic.
The notes on the following pages form an integral part of this interim financial information.
| Cash flow from operating activities Operating result 17,604 11,717 Adjustments for non-cash items and other reconciliations: Scheduled depreciation and amortization 4,179 4,024 Increase/decrease in obligations for post-employment benefits 76 -249 Increase/decrease in other non-current liabilities and provisions -4,822 -1,069 Increase/decrease in other non-current receivables and assets -2,335 -300 Increase/decrease in trade receivables (non-current) 9,478 319 Increase/decrease in trade payables (non-current) -99 -100 Other (net) 823 -885 24,905 13,456 Changes in net current assets: Increase/decrease in trade receivables and other assets -4,708 -3,920 Increase/decrease in inventories -1,557 -240 Increase/decrease in trade payables and other current payables 2,422 1,308 Increase/decrease in current provisions 767 -3,986 -3,076 -6,838 Cash flow from operations 21,829 6,618 Interest received 823 209 Interest payments -1,123 -1,577 Net payments of income taxes -1,175 -8,209 Net cash flow from operating activities 20,354 -2,960 Cash flow from investment activities Purchase of property, plant and equipment -1,046 -1,102 Purchase of intangible assets -6,225 -248 Purchase of securities, investments and other non-current financial assets (12) -2,419 -39 Payments for the acquisition of entities (less cash and cash equivalents of these entities) -16,554 0 Proceeds from the disposal of property, plant and equipment and intangible assets 803 46 Proceeds from the disposal of securities and other financial assets 0 0 Net cash flow from investment activities -25,441 -1,343 Cash flow from financing activities Dividends paid to parent company's shareholders 0 0 Dividends paid to non-controlling interests 0 0 Payments for the acquisition of non-controlling interests -14,000 -750 Increase in non-current financial liabilities (14) 75,376 8 Increase in current financial liabilities (14) 205 2,091 Decrease in current financial liabilities (14) -6,054 -962 Net cash flow from financing activities 55,527 388 Net increase/decrease in cash and cash equivalents 50,440 -3,915 Change in cash and cash equivalents Cash and cash equivalents at beginning of year 140,782 211,299 Net increase/decrease in cash and cash equivalents 50,440 -3,915 Exchange gains/losses on cash and cash equivalents 309 -2,596 |
All amounts in TEUR | Note | Q1 2016/17 | Q1 2017/18 |
|---|---|---|---|---|
| Cash and cash equivalents at the end of the period | 191,531 | 204,788 |
The notes on the following pages form an integral part of this interim financial information.
Kapsch TrafficCom, headquartered in Austria, is a global supplier of superior Intelligent Transportation Systems (ITS).
The Group operates in 2 segments:
The ETC segment comprises activities relating to the installation and the technical and commercial operation of toll collection systems. Projects are generally awarded by public agencies or private concessionaires in the context of tender procedures. Toll collection systems may comprise both individual road sections and nationwide 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 complete the portfolio of ETC services offered by Kapsch TrafficCom.
The IMS segment comprises activities relating to the installation and the technical and commercial operation of systems for traffic monitoring, traffic control and traffic safety. Projects for the monitoring of utility vehicles and for electronic vehicle registration, as well as intelligent parking solutions and systems for intermodal mobility (networked modes of transport), are also allocated to this segment, as are systems and services for operational surveillance of public transportation and environmental installations. Components-related business also rounds off the range of IMS services offered by Kapsch TrafficCom.
This condensed interim financial information for the quarter ended June 30, 2017 has been prepared in accordance with the International Financial Reporting Standards (IFRS) issued by the IASB, as adopted by the EU, according to IAS 34 Interim Financial Statements, and should only be read in conjunction with the annual financial statemtents for the year ended March 31, 2017.
The interim report was neither subject to an audit nor to a review by an auditor.
For ease of presentation, amounts have been rounded and, unless indicated otherwise, are presented in thousand euro (TEUR). However, calculations are done using exact amounts, including the digits not shown, which may lead to rounding differences.
The accounting policies adopted are consistent with those of the annual financial statements for the year ended March 31, 2017, and described therein.
In the condensed interim financial information for the first quarter of the current fiscal year 2017/18 the following new or amended IFRS and IFRIC have been adopted:
| New/adopted 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 |
|
|---|---|---|---|---|
| IAS 12 | Income Tax (Amended by Recognition of Deferred Tax Assets for Unrealised Losses) |
January 2016 | January 1, 2017 | none |
| IAS 7 | Cash Flow (Amendment) | January 2016 | January 1, 2017 | none |
| IFRS 12 | Annual improvement to IFRS (Cycle 2014-2016): Disclosure of Interests in Other Entities (clarified the scope of the standard) |
December 2016 | January 1, 2017 | none |
Adoption of the new/amended standards did not result in any significant effects on the condensed consolidated interim financial information.
In the context of its preparation of the report on the first quarter of the year, the Group has made judgements, estimates and assumptions in relation to the application of accounting methods and the reported amounts of assets, liabilities, income and expenses. The actual results may differ from these estimates. All estimates and judgments are continually re-evaluated and are based on historical experience and other factors, including expectations as to future events which are believed to be reasonable under the given circumstances.
The estimates made by the Management are in line with those adopted in the consolidated financial statements as of March 31, 2017 and described therein.
The Group bases its fair value measurement of assets and liabilities on observable market data to the greatest extent possible. The fair value can be assigned to one of various levels within a fair value hierarchy using a number of evaluation techniques. Further information on the fair value measurement of assets and liabilities can be found in note 12.
The financial risks to which Kapsch TrafficCom is exposed are generally consistent with those of the consolidated financial statements for the year ended March 31, 2017 and are described therein.
| Q1 2017/18 in TEUR |
ETC | IMS | Total |
|---|---|---|---|
| Revenues | 123,363 | 40,898 | 164,260 |
| Operating result | 14,637 | -2,921 | 11,717 |
| Q1 2016/17 in TEUR |
ETC | IMS | Total |
|---|---|---|---|
| Revenues | 112,436 | 39,823 | 152,259 |
| Operating result | 18,144 | -540 | 17,604 |
The following table contains all single external customers which contributed more than 10% to the total revenues of the first quarter of the fiscal year 2017/18 and 2016/17.
| in TEUR | Q1 2016/17 | Q1 2017/18 | ||||
|---|---|---|---|---|---|---|
| Revenue | ETC | IMS | Revenue | ETC | IMS | |
| Customer 1 | 12,840 | x | 19,452 | x | ||
| Customer 2 | 19,986 | x | x | 19,349 | x | x |
| Customer 3 | 15,440 | x | 14,884 | x |
| in TEUR | Q1 2016/17 | Q1 2017/18 |
|---|---|---|
| Rental expenses | 4,451 | 4,556 |
| Communication and IT expenses | 6,116 | 4,230 |
| Exchange rate losses from operating activities | 1,360 | 3,821 |
| Legal and consulting fees | 4,663 | 3,620 |
| Travel expenses | 3,072 | 2,814 |
| Maintenance | 1,013 | 2,182 |
| Marketing and advertising expenses | 1,713 | 1,958 |
| Automobile expenses | 1,101 | 1,701 |
| License and patent expenses | 1,102 | 1,402 |
| Insurance costs | 1,011 | 1,189 |
| Office expenses | 1,220 | 1,095 |
| Taxes and charges | 388 | 669 |
| Bank charges | 293 | 546 |
| Training costs | 497 | 537 |
| Allowance and write-off of receivables | -1,361 | -361 |
| Transport costs | 363 | 358 |
| Adjustment of provision for warranties | 213 | 311 |
| Operating losses from fair value change from derivative financial instruments and earn-out liabilities | 0 | 233 |
| Membership fees | 189 | 188 |
| Warranty costs and project financing | 123 | 81 |
| Damages | 14 | 43 |
| Commissions and other fees | 249 | 14 |
| Losses on disposal of non-current assets | 25 | 12 |
| Other | 238 | 693 |
| 28,054 | 31,893 |
Income taxes relate to current taxes and to deferred tax assets and deferred tax liabilities. Applying the Austrian corporate tax rate of 25% to the Group's pre-tax result gives rise to the theoretical value for the tax expense/income. The effective tax expense/income differs from the above due to, among others, different tax regimes in the various countries, the treatment of tax losses, tax allowances and permanent differences.
| Q1 2017/18 in TEUR |
Before taxes |
Tax expense/ income |
After taxes |
|---|---|---|---|
| Fair value gains/losses on available-for-sale financial assets: | |||
| Unrealized gains/losses in the current period | -20 | 5 | -15 |
| Gains/losses recognized in the result for the period | 0 | 0 | 0 |
| Currency translation differences | 798 | 0 | 798 |
| Currency translation differences from net investments | |||
| in foreign operations | -2,833 | 708 | -2,125 |
| Fair value adjustments of cash flow hedges | 50 | 0 | 50 |
| Fair value changes recognized in equity | -2,005 | 713 | -1,292 |
The unrealized gains/losses on available-for-sale financial assets recognized in the first quarter of the fiscal year 2017/18 amounting to TEUR -20 relate to fair value changes of available-for-sale securities, that have been recognized through other comprehensive income in equity.
| Q1 2016/17 in TEUR |
Before taxes |
Tax expense/ income |
After taxes |
|---|---|---|---|
| Fair value gains/losses on available-for-sale financial assets: | |||
| Unrealized gains/losses in the current period | -773 | -15 | -787 |
| Gains/losses recognized in the result for the period | 773 | 0 | 773 |
| Currency translation differences | -526 | 0 | -526 |
| Currency translation differences from net investments | |||
| in foreign operations | 1,044 | -261 | 783 |
| Fair value changes recognized in equity | 518 | -276 | 242 |
The unrealized gains/losses on available-for-sale financial assets recognized in the first quarter of the fiscal year 2016/17 amounting to TEUR -1,637 relate to fair value changes on the investment in Q-Free ASA, Norway. Due to the ongoing unfavorable development of the share price up to the first quarter of the fiscal year 2016/17 the contained net gains, together with net losses that have been recognized through other comprehensive income in equity in the amount of TEUR 865 up to June 30, 2016, were recognized as impairment in the result for the period (TEUR -773; reclassification from other comprehensive income to the result for the period).
| in TEUR | Q1 2016/17 | Q1 2017/18 |
|---|---|---|
| Carrying amount as of March 31 of prior year | 85,778 | 95,126 |
| Additions | 7,271 | 1,350 |
| Additions resulting from company acquisition | 5,891 | 0 |
| Disposals | -811 | -51 |
| Impairment | 0 | 0 |
| Depreciation, amortization and other movements | -4,179 | -4,030 |
| Currency translation differences | 295 | -830 |
| Carrying amount as of June 30 of fiscal year | 94,245 | 91,564 |
| in TEUR Q1 2016/17 |
Q1 2017/18 | |
|---|---|---|
| Carrying amount as of March 31 of prior year 1,917 |
2,131 | |
| Currency translation differences 48 |
-75 | |
| Additions resulting from company acquisition | 0 | 0 |
| Disposal | 0 | 0 |
| Share in result 57 |
-124 | |
| Carrying amount as of June 30 of fiscal year 2,022 |
1,932 | |
| thereof shares in associates 2,022 |
1,931 | |
| thereof interests in joint ventures | 0 | 1 |
On December 3, 2015, together with a partner, the Group founded the Russian company LLC National operator of telematics services and holds an interest of 49%. The company is classified as an associated company. Therefore the investment is accounted for using the equity method. As of June 30, 2017, the book value of the interest amounts to TEUR 0 (June 30, 2016: TEUR 0).
On July 31, 2012, the Group acquired 33% of the shares in SIMEX, Integración de Sistemas, S.A.P.I. de C.V., Mexico. Taking potential voting rights into account (options for purchase of the remaining shares) the Group has the majority of the shares. As the potential voting rights are not assessed to be substantial the presumption of control was rebutted. As significant influence over the financial and business policies exists, the investment is accounted for using the equity method. As of June 30, 2017, the book value of the interest amounts to TEUR 1,931 (June 30, 2016: TEUR 2,022).
On 18 July, 2017, the Group acquired the remaining 67% of the shares (see note 19).
The position interests in joint ventures relates to the Italian consortium Consorzio 4trucks and MyConsorzio, which were acquired in the course of the company acquisition of tolltickets GmbH, Germany, on July 1, 2016. Both investments are accounted for using the equity method. As of June 30, 2017, the book value of the interest amounts to TEUR 1 (June 30, 2016: TEUR 0).
| in TEUR | March 31, 2016 | June 30, 2016 | March 31, 2017 | June 30, 2017 |
|---|---|---|---|---|
| Other non-current financial assets and investments | 18,651 | 19,573 | 18,364 | 18,157 |
| Other current financial assets | 97 | 1,495 | 3,638 | 3,039 |
| 18,748 | 21,068 | 22,002 | 21,196 |
| Other non-current financial assets and investments in TEUR |
Available for-sale securities |
Available for-sale investments |
Other investments |
Other non current financial assets |
Total |
|---|---|---|---|---|---|
| Carrying amount as of March 31, 2017 | 3,602 | 11,683 | 2,785 | 293 | 18,364 |
| Currency translation differences | 0 | 0 | -170 | -8 | -179 |
| Additions | 0 | 0 | 0 | 39 | 39 |
| Disposals | 0 | 0 | 0 | 0 | 0 |
| Impairments | 0 | -47 | 0 | 0 | -47 |
| Change in fair value | -20 | 0 | 0 | 0 | -20 |
| Carrying amount as of June 30, 2017 | 3,582 | 11,637 | 2,615 | 324 | 18,157 |
| Other non-current financial assets and investments in TEUR |
Available for-sale securities |
Available for-sale investments |
Other investments |
Other non current financial assets |
Total |
|---|---|---|---|---|---|
| Carrying amount as of March 31, 2016 | 3,723 | 14,825 | 4 | 99 | 18,651 |
| Currency translation differences | 0 | 0 | 36 | -1 | 35 |
| Addition resulting from company acquisition | 0 | 0 | 0 | 0 | 0 |
| Additions | 0 | 0 | 2,419 | 46 | 2,466 |
| Disposals | 0 | 0 | 0 | 0 | 0 |
| Change in fair value | 58 | -1,637 | 0 | 0 | -1,579 |
| Carrying amount as of June 30, 2016 | 3,782 | 13,187 | 2,459 | 144 | 19,573 |
As of June 30, 2017, as prior year, available-for-sale securities relate to government and bank bonds as well as to shares in investment funds.
As of June 30, 2017, as prior year, investments classified as available-for-sale mainly relate to a 15.4% investment in the listed company Q-Free ASA, Norway.
The addition in other investments in the first quarter of fiscal year 2016/17 relates to the acquisition of non-controlling interests in ParkJockey Global, Inc., U.S.A.
| Other current financial assets in TEUR |
Available for-sale securities |
Current loans |
Other | Total |
|---|---|---|---|---|
| Carrying amount as of March 31, 2017 | 0 | 1,477 | 2,161 | 3,638 |
| Currency translation differences | 0 | -18 | -99 | -117 |
| Additions | 0 | 19 | 38 | 57 |
| Disposals | 0 | -539 | 0 | -539 |
| Change in fair value | 0 | 0 | 0 | 0 |
| Carrying amount as of June 30, 2017 | 0 | 939 | 2,100 | 3,039 |
| Other current financial assets in TEUR |
Available for-sale securities |
Current loans |
Other | Total |
|---|---|---|---|---|
| Carrying amount as of March 31, 2016 | 0 | 97 | 0 | 97 |
| Currency translation differences | 0 | 8 | 0 | 8 |
| Additions | 0 | 1,391 | 0 | 1,391 |
| Disposals | 0 | 0 | 0 | 0 |
| Change in fair value | 0 | 0 | 0 | 0 |
| Carrying amount as of June 30, 2016 | 0 | 1,495 | 0 | 1,495 |
In the first quarter of the fiscal year 2017/18, the disposals of the current loans mainly relate to the repayment of current loans in Spain.
In the first quarter of the fiscal year 2016/17, the additions of the current loans mainly relate to the acquisition of the entities of Kapsch TrafficCom Transportation.
Financial assets and liabilities have to be classified in one of the three following fair value hierarchies:
Level 1: There are quoted prices in active markets for identical assets and liabilities. In the Group, the investment in Q-Free ASA, Norway, as well as listed equity instruments are attributed to Level 1.
Level 2: The fair value of financial instruments that are not traded in an active market is determined by using valuation techniques based on observable direct or indirect market data. This category comprises available-for-sale securities, such as mortgage bonds and government bonds, which are quoted, however not regularly traded on a stock market.
Specific valuation techniques used to value financial instruments include:
Level 3: Financial instruments are included in Level 3 if the valuation information is not based on observable market data.
The classification of current and non-current financial assets is as follows:
| Current and non-current financial assets in TEUR |
Level 1 Quoted prices |
Level 2 Observable market data |
Level 3 Not based on observable market data |
June 30, 2017 |
|---|---|---|---|---|
| Non-current financial assets | ||||
| Available-for-sale securities | 2,921 | 661 | 0 | 3,582 |
| Available-for-sale investments | 11,637 | 0 | 0 | 11,637 |
| 14,558 | 661 | 0 | 15,219 | |
| Current financial assets | ||||
| Available-for-sale securities | 0 | 0 | 0 | 0 |
| 0 | 0 | 0 | 0 | |
| Total | 14,558 | 661 | 0 | 15,219 |
As of June 30, 2017, other non-current financial assets amounting to TEUR 324, other investments amounting to TEUR 2,615 as well as other current financial assets amounting to TEUR 3,039 were recognized at amortized cost.
| Level 1 Quoted prices |
Level 2 Observable market data |
Level 3 Not based on observable market data |
June 30, 2016 |
|---|---|---|---|
| 3,082 | 699 | 0 | 3,782 |
| 13,187 | 0 | 0 | 13,187 |
| 16,270 | 699 | 0 | 16,969 |
| 0 | 0 | 0 | 0 |
| 0 | 0 | 0 | 0 |
| 16,270 | 699 | 0 | 16,969 |
As of June 30, 2016, other non-current financial assets amounting to TEUR 144, other investments amounting to TEUR 2,459 as well as other current financial assets amounting to TEUR 1,495 were recognized at amortized cost.
As of June 30, 2017, trade receivables and other current assets include derivative financial instruments that are measured at fair value through profit or loss amounting to TEUR 86 (June 30, 2016: TEUR 54) and derivative financial instruments designated as cash flow hedges amounting to TEUR 27 (June 30, 2016: TEUR 0).
As of June 30, 2017, other current liabilities and accruals include derivative financial instruments that are measured at fair value through profit or loss amounting to TEUR -139 (June 30, 2016: TEUR -704) and derivative financial instruments designated as cash flow hedges amounting to TEUR -1 (June 30, 2016: TEUR 0).
The change in financial instruments designated as cash flow hedges has been reported in other comprehensive income. The derivative financial instruments are classified under Level 2 in the fair value hierarchy.
The registered share capital of the company 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.
| in TEUR | March 31, 2016 | June 30, 2016 | March 31, 2017 | June 30, 2017 |
|---|---|---|---|---|
| Non-current financial liabilities | 85,734 | 146,190 | 97,482 | 96,637 |
| Current financial liabilities | 21,349 | 31,606 | 97,902 | 97,803 |
| 107,083 | 177,796 | 195,384 | 194,440 |
Movements in borrowings are analyzed as follows:
| Non-current in TEUR financial liabilities |
Current financial liabilities |
Total |
|---|---|---|
| Carrying amount as of March 31, 2017 97,482 |
97,902 | 195,384 |
| Additions 8 |
2,091 | 2,099 |
| Repayments 0 |
-962 | -962 |
| Currency translation differences -853 |
-1,229 | -2,081 |
| Carrying amount as of June 30, 2017 96,637 |
97,803 | 194,440 |
Non-current financial liabilities mainly relate to the promissory note bond ("Schuldscheindarlehen"). Details to tranches, maturity periods and interest rates are shown in the table below:
| Tranche Interest rate |
Interest fixing and interest payment |
Repayment |
|---|---|---|
| EUR 26 mn 1.22% |
yearly | June 16, 2021 |
| EUR 4.5 mn 6M EURIBOR + 120 Bp |
semi-annual | June 16, 2021 |
| USD 14.5 mn 3M LIBOR + 170 Bp |
quarterly | June 16, 2021 |
| EUR 23 mn 6M EURIBOR + 150 Bp |
semi-annual | June 16, 2023 |
| EUR 8.5 mn 2.26% |
yearly | June 16, 2026 |
| Non-current in TEUR financial liabilities |
Current financial liabilities |
Total |
|---|---|---|
| Carrying amount as of March 31, 2016 85,734 |
21,349 | 107,083 |
| Reclassification -15,096 |
15,096 | 0 |
| Additions 75,376 |
205 | 75,581 |
| Repayments 0 |
-6,054 | -6,054 |
| Currency translation differences 177 |
1,009 | 1,186 |
| Carrying amount as of June 30, 2016 146,190 |
31,606 | 177,796 |
Fair values and gross cash flows (including interests) of financial liabilities are as follows:
| in TEUR | Q1 2016/17 | Q1 2017/18 |
|---|---|---|
| Carrying amount | 177,796 | 194,440 |
| Fair value | 179,324 | 192,252 |
| Gross cash flows | ||
| In the next 6 months | 12,866 | 78,103 |
| In the next 7 to 12 months | 22,722 | 22,682 |
| Total up to 1 year | 35,588 | 100,785 |
| Between 1 and 2 years | 76,470 | 5,639 |
| Between 2 and 3 years | 553 | 4,938 |
| Between 3 and 4 years | 553 | 47,753 |
| Between 4 and 5 years | 43,813 | 4,156 |
| More than 5 years | 32,688 | 39,328 |
| 189,665 | 202,598 |
The classification of financial liabilities is as follows:
| in TEUR | Level 1 Quoted prices |
Level 2 Observable market data |
June 30, 2017 |
|---|---|---|---|
| Corporate bond | 71,597 | 0 | 71,597 |
| Promissory note bond | 0 | 72,176 | 72,176 |
| Other financial liabilities | 0 | 48,479 | 48,479 |
| Total | 71,597 | 120,655 | 192,252 |
| in TEUR | Level 1 Quoted prices |
Level 2 Observable market data |
June 30, 2016 |
|---|---|---|---|
| Corporate bond | 73,913 | 0 | 73,913 |
| Other financial liabilities | 0 | 105,412 | 105,412 |
| Total | 73,913 | 105,412 | 179,324 |
The fair value of the other financial liabilities (Level 2) was derived through discounting the gross cash flows over the contracted term at a risk-adjusted interest rate.
| in TEUR | March 31, 2016 | June 30, 2016 | March 31, 2017 | June 30, 2017 |
|---|---|---|---|---|
| Termination benefits | 9,505 | 9,494 | 9,858 | 9,857 |
| Pension benefits | 14,603 | 14,689 | 14,088 | 13,840 |
| 24,107 | 24,183 | 23,946 | 23,697 |
This item primarily comprises legal and contractual claims for the payment of one-off termination benefits on the part of employees in Austria or their dependents, with such claims arising, in particular, upon the termination by the employer of an employee's employment, an amicable termination of an employee's employment, or the retirement or death of an employee. Where any such obligations to make such termination payments exist, the Group will bear the risk of inflation associated with salary adjustments resulting in larger amounts of such termination benefits. In the case of employees having entered the employ of Kapsch TrafficCom in Austria after December 31, 2002, contributions are made into an external employee pension fund on a monthly basis, with the result that the Group will not generally be subject to any obligations to make termination payments with regard to such employees.
The reported pension obligations relate solely to retired employees. All pension arrangements are based on the final salary, take the form of monthly pension benefits and are not covered by any external plan assets (funds). The Group bears the risk of longevity and rising pensions in this connection. Furthermore, contributions are paid into an external pension fund by way of voluntary social benefits on behalf of active employees of the Group.
| in TEUR | March 31, 2016 | June 30, 2016 | March 31, 2017 | June 30, 2017 |
|---|---|---|---|---|
| Non-current provisions | 1,396 | 8,378 | 9,993 | 9,582 |
| Current provisions | 8,946 | 9,712 | 17,640 | 13,655 |
| 10,341 | 18,091 | 27,633 | 23,237 |
| in TEUR | March 31, 2017 |
Addition from the acquisition of companies |
Addition from accumu lation |
Addition | Utilization | Disposal | Reclassi fication |
Currency translation differences |
June 30, 2017 |
|---|---|---|---|---|---|---|---|---|---|
| Obligations from anniversary | |||||||||
| bonuses | 1,249 | 0 | 4 | 0 | 0 | -4 | 0 | 0 | 1,249 |
| Warranties | 1,516 | 0 | 0 | 0 | 0 | 0 | -162 | 0 | 1,353 |
| Projects (excl. impending losses) |
872 | 0 | 0 | 0 | 0 | 0 | -131 | 0 | 741 |
| Legal fees, costs of litigation and contract risks |
61 | 0 | 0 | 0 | 0 | 0 | -34 | 0 | 26 |
| Costs of dismantling, remov ing and restoring assets |
137 | 0 | 0 | 0 | 0 | 0 | -26 | 0 | 111 |
| Other non-current provisions | 6,158 | 0 | 0 | 19 | 0 | -0 | 557 | -633 | 6,101 |
| Non-current provisions, | |||||||||
| total | 9,993 | 0 | 4 | 19 | 0 | -4 | 204 | -633 | 9,582 |
| Warranties | 1,371 | 0 | 0 | 75 | -1 | -39 | 162 | -63 | 1,506 |
| Projects (excl. impending losses) |
10,430 | 0 | 0 | 9 | -3,388 | 0 | 131 | -166 | 7,016 |
| Legal fees, costs of litigation | |||||||||
| and contract risks | 4,645 | 0 | 0 | 6 | -92 | -3 | 34 | -280 | 4,311 |
| Costs of dismantling, remov | |||||||||
| ing and restoring assets | 19 | 0 | 0 | 0 | 0 | 0 | 26 | -10 | 35 |
| Other current provisions | 1,176 | 0 | 0 | 389 | -85 | 0 | -557 | -136 | 787 |
| Current provisions, total | 17,640 | 0 | 0 | 479 | -3,566 | -41 | -204 | -654 | 13,655 |
| Total | 27,633 | 0 | 4 | 498 | -3,566 | -45 | 0 | -1,287 | 23,237 |
| in TEUR | March 31, 2016 |
Addition from the acquisition of companies |
Addition from accumu lation |
Addition | Utilization | Disposal | Reclassi fication |
Currency translation differences |
June 30, 2016 |
|---|---|---|---|---|---|---|---|---|---|
| Obligations from anniversary | |||||||||
| bonuses | 1,186 | 0 | 0 | 0 | 0 | -135 | 0 | 0 | 1,051 |
| Warranties | 0 | 0 | 0 | 0 | 0 | 0 | 1,509 | 0 | 1,509 |
| Projects (excl. impending | |||||||||
| losses) | 0 | 1,881 | 0 | 0 | 0 | 0 | 39 | 276 | 2,197 |
| Legal fees, costs of litigation | |||||||||
| and contract risks | 0 | 2,551 | 0 | 0 | 0 | 0 | 104 | 375 | 3,029 |
| Costs of dismantling, remov | |||||||||
| ing and restoring assets | 0 | 0 | 0 | 0 | 0 | 0 | 142 | 0 | 142 |
| Other non-current provisions | 210 | 125 | 0 | 9 | 0 | -8 | 95 | 19 | 450 |
| Non-current provisions, | |||||||||
| total | 1,396 | 4,557 | 0 | 9 | 0 | -143 | 1,890 | 671 | 8,378 |
| Warranties | 2,113 | 0 | 0 | 5 | -1 | -40 | -1,509 | 4 | 571 |
| Projects (excl. impending | |||||||||
| losses) | 3,196 | 5,554 | 0 | 57 | -390 | -1,824 | -39 | 470 | 7,023 |
| Legal fees, costs of litigation | |||||||||
| and contract risks | 3,349 | 142 | 0 | 1,213 | -3,322 | 0 | -104 | 48 | 1,325 |
| Costs of dismantling, remov | |||||||||
| ing and restoring assets | 156 | 0 | 0 | 0 | 0 | 0 | -142 | 4 | 18 |
| Other current provisions | 132 | 670 | 0 | 121 | -76 | -22 | -95 | 47 | 776 |
| Current provisions, total | 8,946 | 6,366 | 0 | 1,395 | -3,789 | -1,887 | -1,890 | 572 | 9,712 |
| Total | 10,341 | 10,922 | 0 | 1,404 | -3,789 | -2,030 | 0 | 1,243 | 18,091 |
Most of the contingent liabilities of Kapsch TrafficCom result from largescale projects, with the remainder relating to both performance guarantees and warranty obligations, sureties and performance bonds issued by Kapsch TrafficCom, as well as guarantees and bid bonds issued by third parties (usually banks or loan insurance companies). Where contractual obligations are not complied with, there will be a risk of corresponding claims being brought by the customer in question, and the bank or insurance company will have a right of recourse against the Group in such a case.
The contingent and other liabilities, in line with standard industry practice, solely comprise obligations owed to third parties as follows:
| in TEUR March 31, 2017 |
June 30, 2017 |
|---|---|
| Contract, warranty, performance and bid bonds | |
| South Africa (toll collection system) 42,134 |
40,214 |
| Australia (toll collection system) 22,428 |
21,136 |
| Other 416 |
4,457 |
| Total 64,978 |
65,807 |
Outflows of resources in connection with other liabilities amounting to TEUR 377,598 (March 31, 2017: TEUR 369,605), the actual occurrence of which is considered to be unlikely, are not reported on the balance sheet or under contingent liabilities.
The following tables provide an overview of revenues and expenses in the respective fiscal years as well as receivables from and payables due to related parties at the respective balance sheet dates.
| in TEUR Q1 2016/17 |
Q1 2017/18 |
|---|---|
| Affiliated companies outside the Kapsch TrafficCom | |
| Revenues 2,368 |
1,096 |
| Expenses 7,361 |
6,188 |
| Other related parties | |
| Revenues 40 |
41 |
| Expenses 26 |
23 |
| in TEUR Q1 2016/17 |
Q1 2017/18 |
|---|---|
| Affiliated companies outside the Kapsch TrafficCom | |
| Trade receivables and other assets 1,419 |
1,812 |
| Trade payables and other payables 9,844 |
6,502 |
| Liabilities from share purchase 2,077 |
3,473 |
| Other related parties | |
| Trade receivables and other assets 31 |
0 |
| Trade payables and other payables 12,326 |
11,830 |
The members of the Executive and Supervisory Boards have management functions or are members in Supervisory Boards of other companies of Kapsch Group.
A comprehensive presentation of the different relationships with related parties is represented in note 34 of the annual financial statements for 2016/17.
On July 18, 2017, Kapsch TrafficCom AG purchased the remaining 67% of the Mexican company SIMEX Integración de Sistemas S.A.P.I. De C.V., Mexico. Up to now, Kapsch TrafficCom held 33% of the shares and recorded the company as an associated company using the equity method. The purchase price for the remaining 67% of the shares was MXN 43 million (approximately EUR 2.1 million). In reference to IFRS 3.B66, the disclosures of the assets and liabilities resulting from the acquisition which are not yet finalized are not included in these financial statements as of June 30, 2017.
Vienna, August 30, 2017
The Executive Board
Chief Executive Officer Executive Board member Executive Board member
Mag. Georg Kapsch André Laux Dr.-Ing. Alexander Lewald
| September 6, 2017 | Annual General Meeting |
|---|---|
| September 13, 2017 | Dividend Ex Date |
| September 14, 2017 | Dividend Record Date |
| September 21, 2017 | Dividend Payment Date |
| November 29, 2017 | Results H1 2017/18 |
| February 28, 2018 | Results Q1-Q3 2017/18 |
| Investor Relations Officer | Hans Lang |
|---|---|
| Shareholders' telephone line | +43 50 811 1122 |
| [email protected] | |
| Website | www.kapschtraffic.com |
Certain statements contained in this report constitute "forward-looking statements". These statements, which contain the words "believe", "intend", "expect" and words of similar meaning, reflect the management's beliefs and expectations and are subject to risks and uncertainties that may cause actual results to differ materially. As a result, readers are cautioned not to place undue reliance on such forward-looking statements. Kapsch TrafficCom AG disclaims any obligation to publicly announce the result of any revisions to the forward-looking statements made herein, except where it would be required to do so under applicable law.
This report was created with the greatest possible care, and all data has been checked conscientiously. Nevertheless, the possibility of layout and printing errors cannot be completely excluded. Slight differences in calculations may arise due to the rounding of individual items and percentages. The English translation is for convenience; only the German text is binding.
Media owner and publisher: Kapsch TrafficCom AG Place of publishing: Vienna, Austria
Kapsch TrafficCom is a provider of intelligent transportation systems in the fields of tolling, traffic management, smart urban mobility, traffic safety and security, and connected vehicles. As a one-stop solutions provider, Kapsch TrafficCom offers end-to-end solutions covering the entire value creation chain of its customers, from components and design to the implementation and operation of systems. The mobility solutions supplied by Kapsch TrafficCom help make road traffic safer and more reliable, efficient, and comfortable in urban areas and on highways alike while helping to reduce pollution.
Kapsch TrafficCom is an internationally renowned provider of intelligent transportation systems thanks to the many projects it has brought to successful fruition in more than 50 countries around the globe. The family-owned company is headquartered in Vienna, Austria and in 2017 celebrated 125 years of successfully developing and implementing new technologies for the benefit of its customers. As part of the Kapsch Group, Kapsch TrafficCom has subsidiaries and branches in more than 30 countries. It has been listed in the Prime Market of the Vienna Stock Exchange since 2007 (ticker symbol: KTCG). Kapsch TrafficCom currently has more than 4,800 employees, and generated revenue of EUR 648.5 million in fiscal year 2016/17.
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