Interim / Quarterly Report • Nov 17, 2016
Interim / Quarterly Report
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Kapsch TrafficCom
Report on the first half 2016/17.
2015/16 (fiscal year 2015/16): April 1, 2015 – March 31, 2016 H1 2016/17 (first half of fiscal year 2016/17): April 1 – September 30, 2016 Q2 2016/17 (second quarter of fiscal year 2016/17): July 1 – September 30, 2016 All figures presented in EUR million unless otherwise stated.
| Earnings Data | H1 2016/17 | +/- | H1 2015/16 | Q2 2016/17 | +/- Q2 2015/16 | 2015/16 | |
|---|---|---|---|---|---|---|---|
| Revenues | 311.7 | 27% | 245.0 | 159.4 | 25% | 127.8 | 526.1 |
| Share of ETC segment | 74.2% | -10.2%p | 84.3% | 74.5% | -10.5%p | 85.0% | 84.0% |
| Share of IMS segment | 25.8% | 10.2%p | 15.7% | 25.5% | 10.5%p | 15.0% | 16.0% |
| EBITDA | 37.4 | 5% | 35.7 | 15.6 | -17% | 18.8 | 76.9 |
| EBITDA margin | 12.0% | -2.6%p | 14.6% | 9.8% | -5.0%p | 14.7% | 14.6% |
| EBIT | 28.7 | 5% | 27.4 | 11.1 | -24% | 14.6 | 62.3 |
| EBIT margin | 9.2% | -2.0%p | 11.2% | 7.0% | -4.4%p | 11.4% | 11.9% |
| Profit before tax | 28.7 | 16% | 24.8 | 11.3 | 17% | 9.7 | 54.8 |
| Profit for the period | 20.1 | 5% | 19.2 | 7.7 | 0% | 7.8 | 36.5 |
| Profit for the period attributable to equity holders |
20.6 | 23% | 16.7 | 7.9 | 14% | 6.9 | 31.1 |
| Business segments | H1 2016/17 | +/- | H1 2015/16 | Q2 2016/17 | +/- Q2 2015/16 | 2015/16 | |
| Electronic Toll Collection (ETC) | |||||||
| Revenues | 231.2 | 12% | 206.6 | 118.8 | 9% | 108.6 | 442.1 |
| EBIT | 34.2 | 17% | 29.1 | 16.0 | 3% | 15.5 | 63.7 |
| EBIT margin | 14.8% | 0.7%p | 14.1% | 13.5% | -0.8%p | 14.3% | 14.4% |
| Intelligent Mobility Solutions (IMS) | |||||||
| Revenues | 80.5 | 110% | 38.3 | 40.6 | 112% | 19.2 | 84.0 |
| EBIT | -5.4 | -214% | -1.7 | -4.9 | -449% | -0.9 | -1.3 |
| EBIT margin | -6.8% | -2.2%p | -4.5% | -12.0% | -7.4%p | -4.6% | -1.6% |
| Revenues by region | H1 2016/17 | +/- | H1 2015/16 | Q2 2016/17 | +/- Q2 2015/16 | 2015/16 | |
| Austria | 5.2% | -2.5%p | 7.7% | 4.8% | -2.9%p | 7.7% | 7.6% |
| EMEA (excl. Austria) | 59.8% | -4.0%p | 63.8% | 59.2% | -6.4%p | 65.5% | 63.1% |
| Americas | 28.1% | 6.7%p | 21.4% | 30.2% | 9.6%p | 20.6% | 22.5% |
| APAC | 6.9% | -0.2%p | 7.1% | 5.9% | -0.3%p | 6.2% | 6.8% |
| Balance sheet data | 9/30/2016 | +/- | 3/31/2016 | ||||
| Total assets | 609.5 | 19% | 513.7 | ||||
| Total equity 1 | 207.3 | -10% | 230.7 | ||||
| Equity ratio 1 | 34.0% | -10.9%p | 44.9% | ||||
| Net assets (+)/debt (-) 2 | -0.5 | — | 33.8 | ||||
| Gearing 3 | 0.2% | — | |||||
| Capital employed 4 | 382.1 | 13% | 337.7 | ||||
| Net working capital 5 | 226.4 | 23% | 183.6 | ||||
| Cash flow | H1 2016/17 | +/- | H1 2015/16 | 2015/16 | |||
| Net investments 6 | 10.4 | 283% | 2.7 | 7.2 | |||
| Free cash flow 7 | 17.0 | -44% | 30.3 | 90.7 | |||
| Other information | H1 2016/17 | +/- | H1 2015/16 | 2015/16 | |||
| Employees, end of period | 4,836 | 40% | 3,447 | 3,716 | |||
| On-board units, in million units | 5.64 | 23% | 4.60 | 9.55 |
1 Incl. non-controlling interests
2 Cash and cash equivalents + other current assets – financial liabilities
3 Net debt/equity
4 Total equity + financial liabilities
5 Inventories + current tax receivables + trade receivables – trade payables
6 Capital expenditure less proceeds from the disposal of property, plant and equipment and intangible assets; see cash flow statement
7 Net cash flow from operating activities – net investments
Solid results ¾ Revenues: EUR 311.7 million (+27%) ¾ EBIT: EUR 28.7 million (+5%) ¾ Net debt: EUR -0.5 million Distribution of dividend in the amount of EUR 1.50 per share Acquisition of Kapsch TrafficCom Transportation (transportation business of Schneider Electric) ¾ Strengthening of our "Intelligent Mobility Solutions" segment ¾ EBIT for the first half of the year still negative, plus integration costs ¾ Expected share of revenues for 2016/17: approx. EUR 120 million Acquisition of the remaining 48% of the shares of the Czech company Kapsch Telematic Systems ¾ Rise in the profit for the period attributable to equity holders Czech Republic: Contract for the operation of the nationwide truck toll collection system extended by up to three years
Issuance of promissory note bond to refinance the bond falling due in the fall of 2017
2015/16 (fiscal year 2015/16): April 1, 2015 – March 31, 2016 H1 2016/17 (first half of fiscal year 2016/17): April 1 – September 30, 2016 All figures presented in EUR million unless otherwise stated.
A stronger operational business as well as the initial consolidation of Kapsch TrafficCom Transportation led to a jump in revenues, as compared to the first half of 2015/16, to EUR 311.7 million (+27%).
Despite a still negative EBIT contribution from KTT, expenses relating to its integration and the ongoing losses incurred by Streetline, EBIT increased by 5% to EUR 28.7 million.
The profit for the period rose by 5% to EUR 20.1 million. The value for the equivalent period of the previous year comprised a positive onetime effect on the financial result. The income tax expenses for this year also increased as a result of the higher pre-tax result.
The increase in net investments to EUR 10.4 million was due to the acquisition of Kapsch TrafficCom Transportation, and primarily related to intangible assets.
Free cash flow decreased to EUR 17.0 million (-44%), mainly as a result of the higher amount of net investments in the wake of the KTT acquisition.
Despite the acquisition of KTT, the purchase of the remaining 48% of the shares of Kapsch Telematic Systems and the payment of the dividend, the net debt amounted to only EUR 0.5 million.
The assumption of a promissory note bond (increase in balance sheet total), an acquisition (effect in equity) and the dividend payment resulted in a reduction of the equity ratio to 34%.
KTT revenues: EUR 53 million EBIT: EUR -0.9 million.
in the first six months of 2016/17, Kapsch TrafficCom increased its revenues by 27% to EUR 311.7 million. The operating result (EBIT) rose by 5% to EUR 28.7 million, commensurate with an EBIT margin of 9.2%. The profit for the period increased by 5% to EUR 20.1 million, with the portion thereof attributable to equity holders being, at EUR 20.6 million, 23% higher than in the equivalent period of the previous year.
One of our main focal points in the current fiscal year is the integration of KTT (Kapsch TrafficCom Transportation), the global transportation division of Schneider Electric acquired on April 1, 2016, which generated EUR 53.0 million in revenues in the first half of the year, while recording a low negative EBIT of EUR -0.9 million. This amount comprises a positive one-time effect in the amount of EUR 3 million as a result of the purchase price for KTT being lower than the value of the acquired net assets (on the basis of a preliminary purchase price allocation). KTT's share of the EBIT generated by the Intelligent Mobility Solutions segment amounted EUR 1.9 million, but its EBIT contribution with regard to the toll collection business was in a negative amount of EUR -2.8 million.
Although KTT's performance in the second quarter was already considerably better than in the first three months of this fiscal year, much still needs to be done to ensure its successful integration within the Group. I expect that this process will be completed by no later than the fall of 2017, with the resultant synergies then being reflected in our results. In the current fiscal year, the results of KTT as well as the integration costs will weigh on the profitability of Kapsch TrafficCom Group.
The acquisition of Kapsch TrafficCom Transportation, together with its approximately 900 employees, represents a broadening of the Group's portfolio and a significant strengthening of our competitive position, above all in growth markets such as Spain, Latin America, North America and the Middle East. We are now within the top segment of toll solution providers in the US. In addition, this acquisition has finally enabled us to make the leap forward from the highway into the city itself: Where previously our product offering comprised solutions for highways and individual applications for urban areas, we are now a leading, globally active, full service provider.
As Streetline has continued to incur losses, I would like to take the opportunity here to briefly elaborate on this US subsidiary. More than 30% of traffic volume in cities can be attributed to vehicles searching for a parking space. Reducing this traffic not only makes life easier for drivers, it also lowers the risk of accidents, the traffic-related costs faced by city administrations, and the amount of exhaust gas emissions, which is why we consider the provision of intelligent parking solutions to be a core element of modern systems of mobility management. This is precisely where Streetline comes into play, using its own specially developed data analysis tools to process large quantities of data from various sources to locate the nearest available onstreet parking space. Although the company has already generated revenues, these currently continue to be exceeded by expenses for sales and the further development of technology. Our shareholding in the US company Parkjockey rounds off our portfolio of intelligent parking solutions for parking garages and other off-street parking spaces.
| North America, the most | In the US, we have been contracted to undertake the modernization of the Integrated Transportation |
|---|---|
| important growth market. | Management System of the Highway Operations Center of the Massachusetts Department of |
| Transportation. This four-year contract has a value of EUR 10.3 million. In addition, we have been | |
| awarded a contract for the renewal of the toll collection system for all the bridges and tunnels of | |
| the Port Authority of New York and New Jersey (PANYNJ). Following the completion of this project, | |
| which is scheduled for the end of our fiscal year 2020/21, Kapsch TrafficCom will undertake the | |
| ongoing maintenance work on the new toll collection system over a period of six years – with the | |
| option of extending this contract for up to a further six years. North America certainly represents | |
| the most important growth market for Kapsch TrafficCom Group, and we expect to acquire a | |
| growing number of smaller contracts as well as several larger projects in this region. | |
In the Czech Republic, the existing contract for the operation of the nationwide toll collection system for road haulage was to have expired at the end of this year; however, it has now been extended by up to three years pending the launch of the tender procedure for a new system. Assuming we remain contracted for the full three-year period, the volume of this project could amount to as much as EUR 196.2 million. Extension of contract in the Czech Republic.
In Austria, we are awaiting a decision regarding the installation and technical operation of a nationwide toll collection system for vehicles weighing 3.5 or more tons. Kapsch TrafficCom's Austria operations accounted for approximately 5% of its worldwide revenues in the first half of 2016/17.
A further highlight of the first six months of this year was no doubt our Shareholders' Meeting, at which the mandates of three members of the Supervisory Board up for re-election, including its Chairman, were extended. In addition, the Shareholders' Meeting adopted the proposal put forward by the Executive Board in favor of the payment of a dividend of EUR 1.50 per share. Dividend: EUR 1.50/share.
A distribution in such an amount (EUR 19.5 million in total) will only be possible where there are sufficient capital resources in place. Despite the acquisition of KTT (EUR 16.6 million) and the remaining 48% of the shares of the Czech company Kapsch Telematic Services (EUR 14.0 million), our net debt as of the end of the first six months of the year was just EUR -0.5 million. Net debt: EUR -0.5 million.
With a view to optimizing our financing structure and refinancing the bond falling due in November 2017 (EUR 70.8 million are outstanding), we issued our first ever promissory note bond in the amount of EUR 62 million plus USD 14.5 million in the first quarter of 2016/17. This loan bears interest in a partially fixed and a partially variable amount, and it comprises three tranches with terms of five, seven and ten years, respectively. One advantage of promissory note bonds as compared to bonds is that the former may, where necessary, be repaid prior to their maturity, making them a considerably more flexible source of financing. Bond refinanced.
However, this course of action does have one downside, in terms of increasing the balance sheet total as a result of our having temporarily invested the funds generated. In addition, the acquisition of the remaining 48% of the shares of the Czech company Kapsch Telematic Services spol. s r.o. has resulted in a reduction of our equity. Both measures together are the primary reason for the fall in the equity ratio to 34%.
I consider Kapsch TrafficCom's position to be a strong one, and we will continue to work on developing our business and our internal structures in order to ensure that this remains the case and that we are able to exploit our resources to the fullest possible extent.
Sincerely,
Georg Kapsch Chief Executive Officer
Included in the VÖNIX Sustainability Index since 2009.
The shares of Kapsch TrafficCom have been listed in the prime market segment of the Vienna Stock Exchange since the company's initial public offering on June 26, 2007. The major shareholder of the company, with a shareholding of 63.3%, is KAPSCH-Group Beteiligungs GmbH. The shares in free float (36.7%) are held by institutional investors (~23%), private investors (~11%) and other investors (~3%). The weighted average number of shares amounts to 13 million.
ISIN: AT000KAPSCH9 Ticker symbol: KTCG Reuters: KTCG.VI Bloomberg: KTCG AV
The share's performance in the first half of the year was very positive, even as compared to the benchmark, the ATX Prime Index: The share price opened at EUR 30.01 on April 1, 2016 and – similar to the benchmark – underwent fluctuations of a mostly lateral nature until May 11. While the ATX Prime remained relatively stable, the Kapsch TrafficCom share fell to an (intraday) low of EUR 27.20 on May 23, thereafter recovering on a continuous basis and outperforming the Index from June 7 until the end of the period. The share price continued to rise consistently from its closing value of EUR 31.51 on July 6, exceeding EUR 39.00 for the first time on August 18 and then EUR 41.00 on August 24, when it reached an (intraday) high for the first half of the year of EUR 41.20. The share price then once more experienced lateral fluctuations until the end of H1 2016/17, undergoing an adjustment on September 14 (ex-dividend date) to reflect the dividend payment of EUR 1.50 per share. The Kapsch TrafficCom share closed at EUR 39.75 at the end of the first half of the year, having outperformed the ATX Prime by 28.7 percentage points.
Share clearly outperformed the ATX Prime.
Closing price on March 31, 2016, indexed to 100 in each case.
| Key share data, all amounts in EUR | H1 2016/17 | H1 2015/16 | |||
|---|---|---|---|---|---|
| Profit/share | 1.58 | 1.28 | |||
| Dividend for the previous year | 1.50 | 0.50 | |||
| Closing price on March 31 | 29.8 | 23.85 | |||
| Closing price on September 30 | 39.75 | 29.29 | |||
| Market capitalization (in EUR million) | 516.8 | 380.8 | |||
| High (intraday) | 41.2 | 30.85 | |||
| Low (intraday) | 27.2 | 20.01 | |||
| Ø trading volume (share, double counting) | 11,937 | 23,832 | |||
| Selected dates | |||||
| February 22, 2017 | Interim report Q1-Q3 2016/17 | ||||
| June 20, 2017 | Profit for the fiscal year 2016/17 | ||||
| September 6, 2017 | Ordinary Shareholders' Meeting for the fiscal year 2016/17 |
Investor Relations Officer: Hans Lang Shareholders' telephone line:
+43 50 811 1122 ir.kapschtraffic@ kapsch.net
www.kapschtraffic.com
Update.
Supervisory Board members re-elected.
At the ordinary Shareholders' Meeting held on September 7, 2016, Dr. Franz Semmernegg, Dr. Kari Kapsch and Dr. Harald Sommerer were re-elected to the Supervisory Board. Their terms of office will expire upon the end of the Shareholders' Meeting resolving upon the formal approval of the actions of the Supervisory Board with regard to the fiscal year 2018/19. Each of these individuals has issued a declaration in accordance with Section 87(2) of the Austrian Stock Corporation Act (Aktiengesetz – AktG).
At the subsequent meeting of the Supervisory Board, Dr. Franz Semmernegg was re-elected Chairman, and Dr. Kari Kapsch Vice Chairman, of the Supervisory Board. Dr. Semmernegg and Dr. Harald Sommerer were re-elected to the Audit Committee and the Committee for Executive Board Matters. Mr Christian Windisch (Ing.) was once more delegated to the Audit Committee by the Works Council.
The Supervisory Board of Kapsch TrafficCom AG is thus composed of the following members:
| Name | Position | Year of birth |
Initial appointment |
Appointed until |
|---|---|---|---|---|
| Dr. Franz Semmernegg | Chairman | 1968 | 2002 | 2019 |
| Dr. Kari Kapsch | Vice Chairman | 1964 | 2002 | 2019 |
| Dipl.-BW(FH) Sabine Kauper | 1968 | 2011 | 2018 | |
| Dr. Harald Sommerer | 1967 | 2013 | 2019 | |
| Ing. Christian Windisch 1) | 1963 | 2002 | — | |
| Martin Gartler 1) | 1970 | 2015 | — | |
1) Delegated by the Works Council.
Auditor re-elected.
The Shareholders' Meeting once more appointed PwC Wirtschaftsprüfung GmbH, Wirtschaftsprüfungs- und Steuerberatungsgesellschaft, Vienna, as auditor of the financial statements and the consolidated financial statements for the fiscal year 2016/17.
Since the coming into force of Article 19 of Regulation (EU) No 596/2014 (the "Market Abuse Regulation" – MAR), transactions previously referred to as "directors' dealings" are now referred to as "managers' transactions".
One such transaction occurred in H1 2016/17: On September 6, 2016, KAPSCH-Group Beteiligungs GmbH acquired 228 shares of Kapsch TrafficCom AG at a price of EUR 36.83 per share. As a result, KAPSCH-Group Beteiligungs GmbH now holds a total of 8,226,527 shares (63.3%) in that company.
Kapsch TrafficCom services the market for intelligent transportation systems (ITS), which involves the use of information and communication technologies to support and optimize aspects of transportation activities, including infrastructure, vehicles, users and industry. Thus, the market comprises the following three product segments:
Electronic toll collection (ETC): enables drivers to pay toll fees without stopping at toll stations.
Traffic management systems (TMS): monitor traffic, optimize signal timing and regulate the flow of traffic.
Other intelligent transportation systems (OTH): comprise in particular:
In the first half of the current fiscal year 2016/17, the revenues of Kapsch TrafficCom Group amounted to EUR 311.7 million and as such were 27.2% higher than in the equivalent period of the previous year (H1 2015/16: EUR 245.0 million). Fortunately, both the Electronic Toll Collection (ETC) and the Intelligent Mobility Solutions (IMS) segments recorded an increase in revenues, with the major driver of this growth being the first-time consolidation of Kapsch TrafficCom Transportation (KTT), the global transportation division of Schneider Electric acquired on April 1, 2016. KTT contributed revenues in the amount of EUR 53.0 million (ETC: EUR 11.4 million; IMS: EUR 41.6 million), with its performance in the second quarter being stronger than in the first three months of the fiscal year.
The operating result (EBIT) increased by 4.9% to EUR 28.7 million (H1 2015/16: EUR 27.4 million), commensurate with an EBIT margin of 9.2% (H1 2015/16: 11.2%). The fall in the margin was due to the strong contribution made by KTT towards overall revenues while generating EBIT in a low negative amount (EUR -0.9 million). Integration expenses also had an adverse impact on the overall profit, in contrast to the positive effect of a one-time effect ("bad will") in the amount
of EUR 3 million due to the purchase price for KTT being lower than the value of the acquired net assets (on the basis of a preliminary purchase price allocation). The persistently negative results of the smart parking subsidiary, Streetline Inc., USA, also had an adverse impact on the Group's results.
The financial result improved to EUR -0.1 million, as compared to EUR -2.7 million in the equivalent period of the previous year, the primary reason for this development being a fall in the expenses due to exchange rate losses. Finance costs thus decreased from EUR -10.7 million to EUR -4.8 million – despite an increase in financial liabilities in the wake of the issuance of the promissory note bond. Finance income was EUR 3.3 million lower than the figure for the equivalent period of the previous year, which comprised gains from the sale of securities in the amount of EUR 3.4 million.
The profit for the period increased by 4.7% as compared to the equivalent period of the previous year. As a result of the acquisition of the remaining non-controlling 48% interest in Kapsch Telematic Services spol. s r.o., Czech Republic, the profit for the period attributable to equity holders rose to EUR 20.6 million (H1 2015/16: EUR 16.7 million), which corresponds to a profit per share in the amount of EUR 1.58 (H1 2015/16: EUR 1.28).
The segments' performance in the first half of the year was as follows:
ETC revenues: EUR 231.2 million (+11.9%).
ETC revenues by region
The largest share of the revenues (EUR 156.2 million) was once more attributable to the EMEA region (Europe, the Middle East and Africa), specifically the nationwide toll collection projects in the Czech Republic, Poland, Belarus and Austria. The scheduled replacement of the IT structure in South Africa resulted in a considerable rise in the revenues generated there. The performance of the newly acquired tolltickets GmbH, Germany, also had a positive impact on revenues. The volume of design & build projects was lower than in the equivalent period of the previous year due to the slower progress, in line with expectations, of the expansion of the existing systems in Belarus and Poland. Components-related revenues in the EMEA region fell by -11.8% as a result of lower sales of on-board units in France and the Czech Republic.
In the Americas region (North America and Latin America), the projects in the US and Chile acquired over the course of the KTT acquisition contributed greatly towards the positive performance in terms of revenues. The components business grew slightly, by 3.3%.
In the APAC region (Asia Pacific), the increase in revenues was primarily attributable to the design & build projects newly acquired this year, such as the contract awarded to Kapsch TrafficCom for the renewal of the existing toll collection system for the Sydney Harbor Bridge and the Sydney Harbor Tunnel. Component sales decreased as compared to the previous year.
The number of on-board units sold in the first half of the year amounted to 5.6 million (H1 2015/16: 4.6 million units). Increases were recorded above all in North America, Russia and Chile, while the sales figures for Thailand, France and the Czech Republic fell as compared to the equivalent period of the previous year.
In the ETC segment, Kapsch TrafficCom realized EBIT in the amount of EUR 34.2 million in the reporting period, as compared to EUR 29.1 million in the first half of the previous year. This improvement in the result was largely due to the positive developments regarding the operation projects in the EMEA region in particular, which were able to counterbalance the negative performance of KTT. The provisional bad will arising out of the KTT acquisition had a positive effect in the amount of EUR 0.9 million.
| in EUR million | H1 2016/17 | H1 2015/16 | +/- |
|---|---|---|---|
| Revenues | 231.2 | 206.6 | 11.9% |
| Design & Build | 44.9 | 38.1 | 18.0% |
| Operations | 138.0 | 119.8 | 15.1% |
| Components | 48.3 | 48.7 | 0.8% |
| EBIT | 34.2 | 29.1 | 17.3% |
In the EMEA region, the operation projects in Spain newly acquired together with KTT and design & build projects in Spain and Saudi Arabia contributed towards this jump in revenues. In addition, the cross-border program "CHARM", for which the advanced traffic management System DYNAC is being implemented both in England and in the Netherlands, contributed significantly towards the improved revenues situation.
The revenues generated in the Americas region were also considerably higher than in the equivalent period of the previous year, largely as a result of the assumption of the projects of KTT in the US and Brazil.
In the APAC region, a slight increase in revenues was recorded regarding the design & build projects in New Zealand and Vietnam, while the revenues generated by the operation projects in Australia remained largely unchanged.
The IMS segment realized EBIT in the amount of EUR -5.4 million, as compared to EUR -1.7 million in the first half of the previous year. While KTT's overall EBIT contribution was a positive one in the amount of EUR 1.9 million, the negative results of Streetline Inc., USA, in particular, and the lower contributions of the North American operation projects adversely impacted the profitability of the Kapsch TrafficCom Group in this segment. The provisional bad will arising from the KTT acquisition had a positive effect on the segment in the amount of EUR 2.1 million.
| in EUR million | H1 2016/17 | H1 2015/16 | +/- |
|---|---|---|---|
| Revenues | 80.5 | 38.3 | 109.8% |
| Design & Build | 29.7 | 13.8 | 114.7% |
| Operations | 45.4 | 16.2 | 179.8% |
| Components | 5.3 | 8.3 | -35.6% |
| EBIT | -5.4 | -1.7 | -213.6% |
The total assets of the KapschTrafficCom Group increased to EUR 609.5 million as of the cutoff date, September 30, 2016 (March 31, 2016: EUR 513.7 million).
The greatest change in the assets reported on the balance sheet related to "trade receivables and other current assets", which increased by EUR 55.7 million to EUR 251.9 million in the period from March 31, 2016 onwards. This increase was primarily due to the assumption, in the context of the KTT acquisition, of outstanding receivables amounting to EUR 62.2 million as of September 30, 2016. Cash and cash equivalents also increased significantly by EUR 32.5 million to EUR 173.3 million as of September 30, 2016, largely as a result of the issuance of the promissory note bond.
The issuance of the promissory note bond caused the most significant change on the liabilities side of the balance sheet. Non-current financial liabilities increased by EUR 62.5 million in the period from March 31, 2016 onwards and amounted to EUR 148.2 million as of September 30, 2016. Other liabilities increased by EUR 20.3 million to EUR 99.7 million, and trade payables by EUR 15.6 million to EUR 67.7 million, over the same period. These developments were also largely attributable to the acquisition of KTT. As of September 30, 2016, KTT had other liabilities in the amount of EUR 26.6 million and trade payables in the amount of EUR 15.4 million.
The net working capital thus rose significantly from EUR 183.6 million as of March 31, 2016 to EUR 226.4 million as of the end of H1 2016/17.
Equity amounted to EUR 207.3 million, and as such was EUR 23.3 million lower than at the end of the previous fiscal year (EUR 230.7 million). The equity ratio fell from 44.9% to 34.0% over this period, the main reasons for this being:
In spite of the payment of the dividend, the acquisition of KTT and the purchase of the noncontrolling 48% interest in the Czech Republic, the net debt amounted to only EUR -0.5 million at the end of the reporting period (March 31, 2016: net assets in the amount of EUR 33.8 million).
Net cash flow from operating activities amounted to EUR 27.3 million in the reporting period. This was primarily due to the good result, as well as due to a decline of current and non-current receivables (EUR 13.6 million).
Net cash flow from investing activities amounted to EUR -29.8 million in H1 2016/17, EUR -16.6 million of which (net, after deduction of the cash and cash equivalents of the acquired companies) related to the acquisition of KTT. In addition, EUR -2.5 million were attributable to the stake in Park Jockey Global, Inc., USA, and EUR -0.3 million (net) to the acquisition of a 65% interest in tolltickets GmbH, Germany. Net investments in property, plant and equipment and intangible assets, at EUR -10.4 million, were significantly higher than in the equivalent period of the previous year (EUR -2.7 million), as a result of the acquisition and integration of KTT. In H1 2015/16, it was above all the sale of securities and an inflow of cash and cash equivalents from the acquisition of the shares of Streetline, Inc., USA, which led to net cash flow from investing activities in the positive amount of EUR 5.2 million.
A positive amount of free cash flow (cash flow from operating activities minus net investments) was recorded, however, at EUR 17.0 million; this was significantly lower than the figure for the equivalent period of the previous year (EUR 30.3 million).
Net cash flow from financing activities amounted to EUR 33.6 million as of September 30, 2016. On the one hand, non-current financial liabilities increased by EUR 77.3 million (which was largely attributable to the issuance of the promissory note bond). On the other hand, the Group distributed a dividend (EUR 19.5 million) and paid the purchase price for the non-controlling interest of 48% of the shares of Kapsch Telematic Services spol. s r.o., Czech Republic (EUR 14.0 million).
Cash and cash equivalents amounted to EUR 173.3 million as of September 30, 2016 (March 31, 2016: EUR 140.8 million).
No transactions involving related parties and having a significant effect on the Group's financial position or operating results were entered into during the first half of the year. Details of any transactions involving related parties can be found in Note 19 to the condensed consolidated interim financial information as of September 30, 2016.
On April 1, 2016, Kapsch TrafficCom completed its acquisition of the global transportation business of Schneider Electric S.E. This division, henceforth to be known as Kapsch TrafficCom Transportation (KTT), is a provider of real-time IT solutions and intelligent traffic systems for use in cities, on highways and in tunnels. Its product offering also comprises toll collection and transit solutions.
On April 21, 2016, Kapsch TrafficCom acquired a minority interest in ParkJockey Global, Inc., USA, thereby rounding off the Group's portfolio of intelligent parking solutions with parking garages and other off-street parking spaces.
In the first quarter of 2016, Kapsch TrafficCom acquired the remaining 48% of the shares in Kapsch Telematic Services spol. s r.o., Czech Republic, the company which is responsible for the operation of the nationwide toll collection system in the Czech Republic.
On July 1, 2016, Kapsch TrafficCom acquired 65% of the shares in tolltickets GmbH, Germany, a provider of toll collection services for passenger cars to end customers.
The Group has initiated a number of processes with a view to increasing the effectiveness of its risk management activities and upholding best practice standards. Risk management has been designated a discrete function within the finance department of Kapsch TrafficCom AG. An internal control system (ICS) has been established within the Group to document the existing 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.
No risks which could pose a threat to the continued operation of Kapsch TrafficCom Group can be identified at the present time. Ever greater geographical diversification and the continuous expansion of its portfolio of products and solutions to include selected new IMS solutions have enabled Kapsch TrafficCom Group to the broaden the scope of its business model while keeping its focus on its core business, thereby reducing the concentration of risks within individual regions or individual major projects.
The major risks faced by the Group are addressed in Section 3.3 of the Group Management Report 2015/16. No material changes were observed in this connection in the first half of 2016/17, nor are any significant new risks or uncertainties expected to emerge over the remainder of the fiscal year 2016/17.
Kapsch TrafficCom Group intends to develop its existing and newly acquired projects in a targeted manner in H2 2016/17. In Austria, the company is awaiting a decision regarding the installation and technical operation of a nationwide toll collection system for vehicles weighing 3.5 or more tons. Kapsch TrafficCom's Austria operations accounted for approximately 5% of its worldwide revenues in the first half of 2016/17.
A primary objective over the remaining course of the current fiscal year will be to drive forward the integration of KTT, with a view to minimizing costs and realizing synergies as quickly as possible, while also helping the approximately 900 new employees to become acquainted with and a part of the corporate culture of the Kapsch TrafficCom Group.
The management is confident, based on the results for the first six months of the year, that Kapsch TrafficCom Group will increase its annual revenues by more than EUR 100 million, in line with expectations. The EBIT margin for the toll collection business is set to significantly exceed 10%, while the margin for the IMS business will be adversely impacted by the integration and the lower EBIT contribution of KTT, as well as the negative EBIT performance of Streetline Inc., USA.
No material events occurred after September 30, 2016.
We declare to the best of our knowledge that the condensed interim 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 the development and performance of the business and the position of the Group, together with a description of the principal risks and uncertainties faced by the Group.
Vienna, November 17, 2016
The Managing Board
Mag. Georg Kapsch André Laux Dr.-Ing. Alexander Lewald Chief Executive Officer Executive Board member Executive Board member
| Q2 | H1 | |||||
|---|---|---|---|---|---|---|
| in TEUR | Note | 2016/17 | 2015/16 | 2016/17 | 2015/16 | |
| Revenues | (6) | 159,412 | 127,839 | 311,671 | 244,964 | |
| Other operating income | 4,638 | 3,175 | 13,857 | 6,481 | ||
| Changes in finished and unfinished goods and work in progress | 1,379 | 2,990 | 2,432 | -371 | ||
| Own work capitalized | 952 | 187 | 1,391 | 408 | ||
| Cost of materials and other production services | -73,033 | -54,867 | -132,636 | -93,458 | ||
| Staff costs | -51,818 | -35,612 | -105,349 | -74,620 | ||
| Amortization and depreciation | -4,439 | -4,210 | -8,618 | -8,339 | ||
| Impairment charge | 0 | 0 | 0 | 0 | ||
| Other operating expenses | (7) | -25,957 | -24,893 | -54,011 | -47,665 | |
| Operating result | (6) | 11,134 | 14,609 | 28,738 | 27,400 | |
| Finance income | 2,126 | 2,620 | 4,732 | 8,011 | ||
| Finance costs | -1,883 | -7,572 | -4,813 | -10,698 | ||
| Financial result | 243 | -4,951 | -81 | -2,687 | ||
| Result from associates and joint ventures | -28 | 83 | 29 | 45 | ||
| Result before income taxes | 11,349 | 9,741 | 28,685 | 24,758 | ||
| Income taxes | (15) | -3,632 | -1,987 | -8,550 | -5,532 | |
| Result for the period | 7,716 | 7,754 | 20,135 | 19,226 | ||
| Result attributable to: | ||||||
| Equity holders of the company | 7,906 | 6,918 | 20,569 | 16,675 | ||
| Non-controlling interests | -190 | 837 | -434 | 2,551 | ||
| Earnings per share from the result for the period attributable to the equity holders of the company (in EUR) |
0.61 | 0.53 | 1.58 | 1.28 | ||
| Other comprehensive income: | ||||||
| Items subsequently reclassified to the result for the period: | ||||||
| Currency translation differences | -1,485 | -1,121 | -2,011 | -1,335 | ||
| Currency translation differences from net investments in foreign operations | -219 | 51 | 825 | 1,653 | ||
| Available-for-sale financial assets: | ||||||
| Fair value gains/losses recognized in other comprehensive income | -811 | -5,085 | -2,390 | -4,474 | ||
| Reclassification of cumulated net losses to the result for the period (impairment) | 824 | 192 | 1,597 | 192 | ||
| Reclassification of cumulated net gains to the result for the period (sale of | ||||||
| available-for-sale financial assets) | 0 | 0 | 0 | -3,318 | ||
| Income tax relating to items subsequently reclassified to the result for the period | 52 | -23 | -224 | 438 | ||
| Total items subsequently reclassified to the result for the period | -1,640 | -5,986 | -2,204 | -6,844 | ||
| Items subsequently not reclassified to the result for the period: | ||||||
| Remeasurements of liabilities from post-employment benefits | 0 | 0 | 0 | 0 | ||
| Income tax relating to items subsequently not reclassified to the result for the period | 0 | 0 | 0 | 0 | ||
| Total items subsequently not reclassified to the result for the period | 0 | 0 | 0 | 0 | ||
| Other comprehensive income for the period net of tax | (16) | -1,640 | -5,986 | -2,204 | -6,844 | |
| Total comprehensive income for the period | 6,077 | 1,768 | 17,932 | 12,382 | ||
| Total comprehensive income attributable to: | ||||||
| Equity holders of the company | 6,188 | 1,098 | 18,370 | 9,970 | ||
| Non-controlling interests | -112 | 669 | -438 | 2,412 |
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.
| in TEUR | Note | Sep. 30, 2016 | March 31, 2016 |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Property, plant and equipment | (8) | 21,224 | 20,867 |
| Intangible assets | (8) | 74,131 | 64,911 |
| Interests in associates and joint ventures | (9) | 1,954 | 1,917 |
| Other non-current financial assests and investments | (10) | 18,837 | 18,651 |
| Other non-current assets | 13,163 | 18,877 | |
| Deferred tax assets | 11,841 | 11,895 | |
| 141,151 | 137,119 | ||
| Current assets | |||
| Inventories | 37,814 | 35,757 | |
| Current tax receivables | 4,334 | 3,754 | |
| Trade receivables and other non current assets | 251,905 | 196,158 | |
| Other current financial assets | (10) | 956 | 97 |
| Cash and cash equivalents | 173,310 | 140,782 | |
| 468,319 | 376,549 | ||
| Total assets | 609,470 | 513,667 | |
| EQUITY | |||
| Capital and reserves attributable to equity holders of the company | |||
| Share capital | (11) | 13,000 | 13,000 |
| Capital reserve | 117,509 | 117,509 | |
| Retained earnings and other reserves | 78,009 | 92,338 | |
| 208,517 | 222,847 | ||
| Non-controlling interests | -1,189 | 7,811 | |
| Total equity | 207,328 | 230,658 | |
| LIABILITIES | |||
| Non-current liabilities | |||
| Non-current financial liabilities | (12) | 148,201 | 85,734 |
| Liabilities from post-employment benefits to employees | (13) | 23,771 | 24,107 |
| Non-current provisions | (14) | 8,868 | 1,396 |
| Other non-current liabilities | 10,480 | 3,333 | |
| Deferred tax liabilities | 5,343 | 3,190 | |
| 196,664 | 117,760 | ||
| Current liabilities | |||
| Trade payables | 67,642 | 52,041 | |
| Other liabilities and deferred income | 99,684 | 79,342 | |
| Current tax payables | 2,852 | 3,573 | |
| Current financial liabilities | (12) | 26,523 | 21,349 |
| Current provisions | (14) | 8,776 | 8,946 |
| 205,478 | 165,250 | ||
| Total liabilities | 402,141 | 283,010 | |
| Total equity and liabilities | 609,470 | 513,667 |
The notes on the following pages form an integral part of this interim financial information.
| Q2 | H1 | ||||
|---|---|---|---|---|---|
| in TEUR | 2016/17 | 2015/16 | 2016/17 | 2015/16 | |
| Cash flow from operating activities | |||||
| Operating result | 11,134 | 14,609 | 28,738 | 27,400 | |
| Adjustments for non-cash items and other reconciliations: | |||||
| Scheduled depreciation and amortization | 4,439 | 4,210 | 8,618 | 8,339 | |
| Impairment charge | 0 | 0 | 0 | 0 | |
| Increase/decrease in liabilities from post-employment benefits | -412 | -316 | -336 | -422 | |
| Increase/decrease in other non-current liabilities and provisions | 152 | -445 | -4,670 | -470 | |
| Increase/decrease in other non-current receivables | -1,746 | -983 | -4,080 | -2,005 | |
| Increase/decrease in trade receivables (non-current) | 547 | 6,174 | 10,025 | 19,179 | |
| Increase/decrease in trade payables (non-current) | -110 | -256 | -209 | -470 | |
| Other (net) | -1,015 | -2,515 | -192 | 1,707 | |
| 12,989 | 20,478 | 37,893 | 53,259 | ||
| Changes in net current assets: | |||||
| Increase/decrease in trade receivables and other assets | 8,255 | 1,898 | 3,548 | -1,062 | |
| Increase/decrease in inventories | 320 | -880 | -1,237 | 281 | |
| Increase/decrease in trade payables and other current payables | -1,703 | 3,281 | 719 | -5,324 | |
| Increase/decrease in current provisions | -936 | -318 | -169 | -801 | |
| 5,937 | 3,981 | 2,861 | -6,906 | ||
| Cash flow from operations | 18,925 | 24,459 | 40,754 | 46,353 | |
| Interest received | -32 | 253 | 791 | 567 | |
| Interest payments | -1,515 | -1,240 | -2,638 | -2,571 | |
| Net payments of income taxes | -10,392 | -6,429 | -11,567 | -11,299 | |
| Net cash flow from operating activities | 6,986 | 17,043 | 27,340 | 33,050 | |
| Cash flow from investing activities | |||||
| Purchase of property, plant and equipment | -3,264 | -1,295 | -4,310 | -2,844 | |
| Purchase of intangible assets | -751 | -79 | -6,977 | -98 | |
| Purchase of securities, investments and other non-current financial assets | -132 | 0 | -2,551 | 0 | |
| Increase/decrease in cash from the acquisition of entities (less cash and cash equivalents of these entities) |
-322 | 0 | -16,876 | 2,543 | |
| Proceeds from the disposal of property, plant and equipment and intangible assets | 106 | -58 | 909 | 233 | |
| Proceeds from the disposal of securities and investments | 0 | 40 | 0 | 5,375 | |
| Net cash flow from investing activities | -4,364 | -1,392 | -29,806 | 5,210 | |
| Cash flow from financing activities | |||||
| Contribution from shareholders | 0 | 0 | 0 | 0 | |
| Dividends paid to parent company's shareholders | -19,500 | -6,500 | -19,500 | -6,500 | |
| Dividends paid to non-controlling interests | -8 | -34 | -8 | -6,697 | |
| Payments for the acquisition of non-controlling interests | 0 | 0 | -14,000 | 0 | |
| Increase in non-current financial liabilities | 1,910 | 427 | 77,285 | 471 | |
| Decrease in non-current financial liabilities | 0 | 0 | 0 | 0 | |
| Increase in current financial liabilities | 1,610 | 983 | 1,816 | 1,875 | |
| Decrease in current financial liabilities | -5,910 | -6,164 | -11,963 | -17,891 | |
| Net cash flow from financing activities | -21,897 | -11,287 | 33,630 | -28,741 | |
| Net increase/decrease in cash and cash equivalents | -19,275 | 4,364 | 31,165 | 9,518 | |
| Change in cash and cash equivalents | |||||
| Cash and cash equivalents at beginning of period | 191,531 | 100,415 | 140,782 | 96,765 | |
| Net increase/decrease in cash and cash equivalents | -19,275 | 4,364 | 31,165 | 9,518 | |
| Exchange gains/losses on cash and cash equivalents | 1,055 | -2,441 | 1,364 | -3,945 | |
| Cash and cash equivalents at end of period | 173,310 | 102,339 | 173,310 | 102,339 |
The notes on the following pages form an integral part of this interim financial information.
| in TEUR | Attributable to equity holders of the company |
Non controlling interests |
Total equity |
|||
|---|---|---|---|---|---|---|
| Share capital |
Capital reserve |
Other reserves |
Consolidated retained earnings |
|||
| Carrying amount as of March 31, 2015 | 13,000 | 117,509 | -12,184 | 89,634 | 11,403 | 219,361 |
| Dividend | -6,500 | -6,697 | -13,197 | |||
| Effects from acquisition of shares in subsidiaries | 0 | 21 | 21 | |||
| Effects from acquisition and sale of non-controlling interests |
-19 | 19 | 0 | |||
| Result for the period | 16,675 | 2,551 | 19,226 | |||
| Other comprehensive income for the period: | ||||||
| Currency translation differences | 44 | -139 | -95 | |||
| Fair value gains/losses on available-for-sale financial assets |
-6,749 | 0 | -6,749 | |||
| Carrying amount as of September 30, 2015 | 13,000 | 117,509 | -18,889 | 99,791 | 7,157 | 218,567 |
| Carrying amount as of March 31, 2016 | 13,000 | 117,509 | -21,887 | 114,225 | 7,811 | 230,658 |
| Dividend | -19,500 | -8 | -19,508 | |||
| Effects from acquisition of shares in subsidiaries | -13,062 | -8,692 | -21,754 | |||
| Effects of changes in the investment interest | ||||||
| held in subsidiaries | -137 | 137 | 0 | |||
| Result for the period | 20,569 | -434 | 20,135 | |||
| Other comprehensive income for the period: | ||||||
| Currency translation differences | -1,388 | -5 | -1,392 | |||
| Fair value gains/losses on available-for-sale financial assets |
-811 | 0 | -811 | |||
| Carrying amount as of September 30, 2016 | 13,000 | 117,509 | -37,286 | 115,294 | -1,189 | 207,328 |
The effects from the acquisition of shares in subsidiaries in the first half year of the fiscal year 2016/17 result from the acquisition of the remaining 48% shares in Kapsch Telematic Services spol. s r.o., Czech Republic – an amount of TEUR 14,000 has already been paid – as well as from the acquisition of tolltickets GmbH, Germany.
The notes on the following pages form an integral part of this interim financial information.
Kapsch TrafficCom Group 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 Group.
The IMS segment comprises activities relating to the installation and the technical and commercial operation of 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 Group.
This condensed interim financial information for the first half of the current fiscal year 2016/17 ended September 30, 2016 has been prepared in accordance with IAS 34 "Interim financial reporting". The interim condensed financial report should be read in conjunction with the annual financial statemtents for the year ended March 31, 2016.
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, 2016, as described in the annual financial statements for the year ended March 31, 2016.
In the condensed interim financial information for the first half of the current fiscal year 2016/17 the following new or amended IFRS and IFRIC have been adopted:
| New/adopted IFRS | Applicable to financial years beginning on or after |
|
|---|---|---|
| IFRS 14 | Regulatory Deferral Accounts | January 1, 2016 |
| IFRS 11 | Joint Arrangements (Amendment) | January 1, 2016 |
| IAS 16 IAS 38 |
Property, Plant and Equipment and Intangible Assets (Amendment) | January 1, 2016 |
| IAS 16 IAS 41 |
Property, Plant and Equipment and Agriculture (Amendment) | January 1, 2016 |
| IAS 27 | Separate Financial Statements (Amendment) | January 1, 2016 |
| IAS 1 | Presentation of Financial Statements (Amendment) | January 1, 2016 |
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 half of the year, the Group has made discretionary decisions, 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, 2016 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 10.
The financial risks to which Kapsch TrafficCom Group is exposed are generally consistent with those of the consolidated financial statements for the year ended March 31, 2016 and are described therein.
| H1 2016/17 in TEUR |
ETC | IMS | Consolidated group |
|---|---|---|---|
| Revenues | 231,204 | 80,468 | 311,671 |
| Operating result | 34,170 | -5,432 | 28,738 |
| H1 2015/16 in TEUR |
ETC | IMS | Consolidated group |
|---|---|---|---|
| Revenues | 206,616 | 38,348 | 244,964 |
| Operating result | 29,133 | -1,732 | 27,400 |
The following table shows the four major customers of Kapsch TrafficCom, whereas each of the first two contributed more than 10% to the total revenues in H1 2016/17.
| in TEUR | H1 2016/17 | H1 2015/16 | |||||
|---|---|---|---|---|---|---|---|
| Revenues | ETC | IMS | Revenues | ETC | IMS | ||
| Customer 1 | 42,031 | x | x | 41,222 | x | x | |
| Customer 2 | 31,613 | x | 39,103 | x | |||
| Customer 3 | 22,148 | x | 21,144 | x | |||
| Customer 4 | 20,596 | x | 25,451 | x |
| in TEUR | H1 2016/17 | H1 2015/16 |
|---|---|---|
| Legal and consulting fees | -10,255 | -4,697 |
| Rental expenses | -8,969 | -6,815 |
| Communication and IT expenses | -7,692 | -10,044 |
| Travel expenses | -5,847 | -3,513 |
| Marketing and advertising expenses | -3,514 | -3,399 |
| Office expenses | -2,529 | -1,613 |
| Automobile expenses | -2,480 | -2,043 |
| License and patent expenses | -2,384 | -1,982 |
| Allowance and write-off of receivables | 2,101 | 14 |
| Maintenance | -2,004 | -1,610 |
| Exchange rate losses from operating activities | -1,936 | -5,759 |
| Insurance costs | -1,779 | -1,602 |
| Taxes and charges | -1,295 | -901 |
| Training costs | -949 | -728 |
| Bank charges | -801 | -983 |
| Transport costs | -779 | -418 |
| Warranty costs and project financing | -555 | -441 |
| Adjustment of provision for warranties | -439 | -278 |
| Other operating expenses | -1,905 | -853 |
| -54,011 | -47,665 |
The rise in legal and consulting expenses was due to the increased focus on the US market, where the costs associated with the enforcement of legal rights and legal redress are higher than in other jurisdictions.
The item "Other operating expenses" includes membership fees, commissions and other fees, losses on disposal of non-current assets, remuneration to Supervisory Board and damages.
| in TEUR | H1 2016/17 | H1 2015/16 |
|---|---|---|
| Carrying amount as of March 31 of prior year | 85,778 | 93,644 |
| Additions | 11,287 | 2,941 |
| Addition resulting from company acquisition | 7,513 | 1,297 |
| Disposals | -884 | -233 |
| Impairment | 0 | 0 |
| Depreciation, amortization and other movements | -8,618 | -8,339 |
| Currency translation differences | 279 | -1,231 |
| Carrying amount as of September 30 of fiscal year | 95,356 | 88,078 |
| in TEUR | H1 2016/17 | H1 2015/16 |
|---|---|---|
| Carrying amount as of March 31 of prior year | 1,917 | 2,014 |
| Currency translation differences | 6 | -176 |
| Addition resulting from company acquisition | 2 | 0 |
| Addition resulting from foundation | 0 | 0 |
| Disposal | 0 | 0 |
| Share in result | 29 | 45 |
| Carrying amount as of September 30 of fiscal year | 1,954 | 1,882 |
| thereof shares in associates | 1,953 | 1,882 |
| thereof interests in joint ventures | 1 | 0 |
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 September 30, 2016, the book value of the interest amounts to TEUR 0 (September 30, 2015: n/a).
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 September 30, 2016, the book value of the interest amounts to TEUR 1,953 (September 30, 2015: TEUR 1,882).
The addition resulting from company acquisition relate to the Italian consortium Consorzio 4trucks and MyConsorzio, each amounting to TEUR 1. They were acquired in the course of the company acquisition of tolltickets GmbH, Germany, on July 1, 2016 (see note 17). Both investments are accounted for using the equity method.
As of September 30, 2016, the book value of the interest amounts to TEUR 1 (September 30, 2015: n/a).
As of September 30, 2016, the book value of the interest amounts to TEUR 0 (September 30, 2015: n/a).
| in TEUR | Sep. 30, 2016 | March 31, 2016 | Sep. 30, 2015 | March 31, 2015 |
|---|---|---|---|---|
| Other non-current financial assets and investments | 18,837 | 18,651 | 18,675 | 23,099 |
| Other current financial assets | 956 | 97 | 0 | 5,291 |
| 19,793 | 18,748 | 18,675 | 28,390 |
| H1 2016/17 in TEUR |
Available for-sale securities |
Available for-sale investments |
Other investments |
Loans and 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 | 10 | 1 | 11 |
| Addition resulting from company acquisition | 0 | 0 | 0 | 14 | 14 |
| Additions | 0 | 0 | 2,422 | 130 | 2,551 |
| Disposals | 0 | 0 | 0 | 0 | 0 |
| Change in fair value | 71 | -2,461 | 0 | 0 | -2,390 |
| Carrying amount as of Sep. 30, 2016 | 3,794 | 12,363 | 2,436 | 243 | 18,837 |
| H1 2015/16 in TEUR |
Available for-sale securities |
Available for-sale investments |
Other investments |
Loans and other non-current financial assets |
Total |
|---|---|---|---|---|---|
| Carrying amount as of March 31, 2015 | 3,803 | 19,291 | 5 | 0 | 23,099 |
| Currency translation differences | 0 | 0 | 0 | -7 | -7 |
| Additions | 0 | 0 | 0 | 97 | 97 |
| Disposals | -40 | 0 | 0 | 0 | -40 |
| Change in fair value | -88 | -4,386 | 0 | 0 | -4,474 |
| Carrying amount as of Sep. 30, 2015 | 3,675 | 14,905 | 5 | 90 | 18,675 |
As of September 30, 2016, as prior year, available-for-sale securities relate to government and bank bonds as well as shares in investment funds.
As of September 30, 2016, as prior year, investments classified as available-for-sale mainly relate to a 19.26% investment in the listed company Q-Free ASA, Norway.
The addition in other investments in the first half year of financial year 2016/17 relates to the acquisition of non-controlling interests in ParkJockey Global, Inc., USA.
| H1 2016/17 in TEUR |
Available for-sale securities |
Current loans |
Other current financial assets |
Total |
|---|---|---|---|---|
| Carrying amount as of March 31, 2016 | 0 | 97 | 0 | 97 |
| Currency translation differences | 0 | 568 | 0 | 568 |
| Addition resulting from company acquisition | 0 | 1,270 | 0 | 1,270 |
| Additions | 0 | 95 | 0 | 95 |
| Disposals | 0 | -1,075 | 0 | -1,075 |
| Change in fair value | 0 | 0 | 0 | 0 |
| Carrying amount as of September 30, 2016 | 0 | 956 | 0 | 956 |
In the first half year of the fiscal year 2016/17, the additions of the current loans relate mainly to the acquisition of the entities of Kapsch TrafficCom Transportation, see note 17.
| H1 2015/16 in TEUR |
Available for-sale securities |
Current loans |
Other current financial assets |
Total |
|---|---|---|---|---|
| Carrying amount as of March 31, 2015 | 5,291 | 0 | 0 | 5,291 |
| Currency translation differences | 0 | 0 | 0 | 0 |
| Additions | 0 | 0 | 0 | 0 |
| Disposals | -5,291 | 0 | 0 | -5,291 |
| Change in fair value | 0 | 0 | 0 | 0 |
| Carrying amount as of September 30, 2015 | 0 | 0 | 0 | 0 |
In the first half year of the fiscal year 2015/16, the disposal of the available-for-sale securities relate to the sale of a mutual fund (ESPA Cash Asset-Backed) and led to a gain amounting to TEUR 3,363 (effect in the result for the period) and TEUR 44 (effect in total comprehensive income for the period).
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:
| in TEUR | Level 1 Quoted prices |
Level 2 Observable market data |
Level 3 Not based on observable market data |
Sep. 30, 2016 |
|---|---|---|---|---|
| Non-current financial assets | ||||
| Available-for-sale securities | 3,068 | 726 | 0 | 3,794 |
| Available-for-sale investments | 12,363 | 0 | 0 | 12,363 |
| 15,432 | 726 | 0 | 16,158 | |
| Current financial assets | ||||
| Available-for-sale securities | 0 | 0 | 0 | 0 |
| 0 | 0 | 0 | 0 | |
| Total | 15,432 | 726 | 0 | 16,158 |
As of September 30, 2016, other non-current financial assets amounting to TEUR 235, other investments amounting to TEUR 2,447 as well as other current financial assets amounting to TEUR 956 were recognized at amortized cost.
| in TEUR | Level 1 Quoted prices |
Level 2 Observable market data |
Level 3 Not based on observable market data |
Sep. 30, 2015 |
|---|---|---|---|---|
| Non-current financial assets | ||||
| Available-for-sale securities | 2,998 | 677 | 0 | 3,675 |
| Available-for-sale investments | 14,905 | 0 | 0 | 14,905 |
| 17,903 | 677 | 0 | 18,580 | |
| Current financial assets | ||||
| Available-for-sale securities | 0 | 0 | 0 | 0 |
| 0 | 0 | 0 | 0 | |
| Total | 17,903 | 677 | 0 | 18,580 |
As of September 30, 2015, other non-current financial assets amounting to TEUR 95 were recognized at amortized cost.
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 | Sep. 30, 2016 | March 31, 2016 | Sep. 30, 2015 | March 31, 2015 |
|---|---|---|---|---|
| Non-current financial liabilities | 148,201 | 85,734 | 75,131 | 88,985 |
| Current financial liabilities | 26,523 | 21,349 | 46,290 | 48,969 |
| Total | 174,724 | 107,083 | 121,421 | 137,954 |
Movements in borrowings are analyzed as follows:
| H1 2016/17 in TEUR |
Non-current financial liabilities |
Current financial liabilities |
Total |
|---|---|---|---|
| Carrying amount as of March 31, 2016 | 85,734 | 21,349 | 107,083 |
| Reclassification | -15,169 | 15,169 | 0 |
| Additions | 77,285 | 1,816 | 79,101 |
| Repayments of borrowings | 0 | -11,963 | -11,963 |
| Currency translation differences | 351 | 153 | 504 |
| Carrying amount as of September 30, 2016 | 148,201 | 26,523 | 174,724 |
The addition in non-current financial assets mainly relates to a promissory note bond ("Schuldscheindarlehen"). Details to tranches, maturity periods and interest rates are shown in the table below:
| Tranche | Interest rate | Repayment |
|---|---|---|
| EUR 26 mn | 1.22% | June 16, 2021 |
| EUR 4.5 mn | 6M EURIBOR + 120 bps | June 16, 2021 |
| USD 14.5 mn | 3M LIBOR + 170 bps | June 16, 2021 |
| EUR 23 mn | 6M EURIBOR + 150 bps | June 16, 2023 |
| EUR 8.5 mn | 2.26% | June 16, 2026 |
| H1 2015/16 in TEUR |
Non-current financial liabilities |
Current financial liabilities |
Total |
|---|---|---|---|
| Carrying amount as of March 31, 2015 | 88,985 | 48,969 | 137,954 |
| Reclassification | -14,320 | 14,320 | 0 |
| Additions | 471 | 1,875 | 2,347 |
| Repayments of borrowings | 0 | -17,891 | -17,891 |
| Currency translation differences | -4 | -984 | -989 |
| Carrying amount as of September 30, 2015 | 75,131 | 46,290 | 121,421 |
The fair values and the gross cash flows (including interests) of financial liabilities are as follows:
| in TEUR | Sep. 30, 2016 | Sep. 30, 2015 |
|---|---|---|
| Carrying amount | 174,724 | 121,421 |
| Fair value | 177,216 | 133,806 |
| Gross cash flows: | ||
| Up to 6 months | 9,897 | 15,036 |
| Between 6 months and 1 year | 21,171 | 34,527 |
| Between 1 and 2 years | 78,562 | 7,946 |
| Between 2 and 3 years | 1,218 | 74,015 |
| Between 3 and 4 years | 1,218 | 0 |
| Between 4 and 5 years | 44,249 | 0 |
| More than 5 years | 31,036 | 0 |
| 187,353 | 131,525 |
The classification of financial liabilities is as follows:
| in TEUR | Level 1 Quoted prices |
Level 2 Observable market data |
Level 3 Not based on observable market data |
Sep. 30, 2016 |
|---|---|---|---|---|
| Corporate bond | 73,297 | 0 | 0 | 73,297 |
| Promissory note bond ("Schuldscheindarlehen") | 0 | 70,466 | 0 | 70,466 |
| Other financial liabilities | 0 | 33,453 | 0 | 33,453 |
| Total | 73,297 | 103,919 | 0 | 177,216 |
| in TEUR | Level 1 Quoted prices |
Level 2 Observable market data |
Level 3 Not based on observable market data |
Sep. 30, 2015 |
|---|---|---|---|---|
| Corporate bond | 73,828 | 0 | 0 | 73,828 |
| Other financial liabilities | 0 | 59,979 | 0 | 59,979 |
| Total | 73,828 | 59,979 | 0 | 133,806 |
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 | Sep. 30, 2016 | March 31, 2016 | Sep. 30, 2015 | March 31, 2015 |
|---|---|---|---|---|
| Termination benefits | 9,419 | 9,505 | 9,549 | 9,690 |
| Retirement benefits | 14,352 | 14,603 | 15,240 | 15,520 |
| Total | 23,771 | 24,107 | 24,788 | 25,210 |
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). Furthermore, contributions are paid into an external pension fund by way of voluntary social benefits on behalf of active employees of the Group. The Group bears the risk of longevity and rising pensions in this connection.
| in TEUR | Sep. 30, 2016 | March 31, 2016 | Sep. 30, 2015 | March 31, 2015 |
|---|---|---|---|---|
| Non-current provisions | 8,868 | 1,396 | 1,360 | 1,661 |
| Current provisions | 8,776 | 8,946 | 8,424 | 9,225 |
| Total | 17,644 | 10,341 | 9,783 | 10,886 |
| H1 2016/17 in TEUR |
March 31, 2016 |
Addition re sulting from company acquisition |
Addition | Utilization | Disposal | Reclassi fication |
Currency translation differences |
Sep. 30, 2016 |
|---|---|---|---|---|---|---|---|---|
| Obligations from anniversary | ||||||||
| bonuses | 1,186 | 0 | 0 | 0 | 0 | 0 | 0 | 1,186 |
| Warranties | 0 | 0 | 0 | 0 | 0 | 1,632 | 0 | 1,632 |
| Projects (excl. impending losses) | 0 | 1,881 | 0 | 0 | 0 | 46 | 258 | 2,185 |
| Legal fees, costs of litigation and contract risks |
0 | 2,551 | 0 | 0 | 0 | 374 | 350 | 3,274 |
| Costs of dismantling, removing and restoring assets |
0 | 0 | 0 | 0 | 0 | 141 | 0 | 141 |
| Other non-current provisions | 210 | 125 | 90 | 0 | -24 | 37 | 11 | 449 |
| Non-current provisions, total | 1,396 | 4,557 | 90 | 0 | -24 | 2,230 | 619 | 8,868 |
| Warranties | 2,113 | 0 | 84 | -9 | -85 | -1,632 | -22 | 449 |
| Losses from pending trans actions and rework |
0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Projects (excl. impending losses) | 3,196 | 5,554 | 152 | -590 | -1,906 | -46 | 535 | 6,894 |
| Legal fees, costs of litigation and contract risks |
3,349 | 142 | 4,006 | -6,440 | 0 | -374 | 61 | 743 |
| Costs of dismantling, | ||||||||
| removing and restoring assets | 156 | 0 | 0 | 0 | 0 | -141 | 3 | 18 |
| Other | 132 | 676 | 222 | -167 | -191 | -37 | 37 | 672 |
| Current provisions, total | 8,946 | 6,372 | 4,464 | -7,206 | -2,182 | -2,230 | 613 | 8,776 |
| Total | 10,341 | 10,928 | 4,554 | -7,206 | -2,205 | 0 | 1,232 | 17,644 |
| H1 2015/16 in TEUR |
March 31, 2015 |
Addition re sulting from company acquisition |
Addition | Utilization | Disposal | Reclassi fication |
Currency translation differences |
Sep. 30, 2015 |
|---|---|---|---|---|---|---|---|---|
| Obligations from anniversary | ||||||||
| bonuses | 1,189 | 0 | 13 | 0 | -42 | 0 | 0 | 1,160 |
| Other | 472 | 0 | 5 | -205 | -42 | 0 | -31 | 199 |
| Non-current provisions, total | 1,661 | 0 | 19 | -205 | -84 | 0 | -31 | 1,360 |
| Warranties | 1,611 | 711 | 3 | -1 | -137 | 0 | -79 | 2,109 |
| Losses from pending trans actions and rework |
1 | 0 | 0 | 0 | 0 | 0 | 0 | 1 |
| Projects (excl. impending losses) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Legal fees, costs of litigation and contract risks |
402 | 0 | 2,279 | -30 | -1,751 | 0 | -5 | 896 |
| Costs of dismantling, removing and restoring assets |
0 | 183 | 0 | 0 | -7 | 0 | -10 | 166 |
| Other | 7,211 | 0 | 2,372 | -2,895 | -1,295 | 0 | -140 | 5,253 |
| Current provisions, total | 9,225 | 894 | 4,654 | -2,926 | -3,191 | 0 | -233 | 8,424 |
| Total | 10,886 | 894 | 4,673 | -3,130 | -3,275 | 0 | -264 | 9,783 |
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.
| H1 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 | -2,390 | -18 | -2,408 |
| Gains/losses recognized in the result for the period | 1,597 | 1,597 | |
| Currency translation differences | -2,011 | -2,011 | |
| Currency translation differences from net investments in foreign business | 825 | -206 | 619 |
| Fair value changes recognized in equity | -1,980 | -224 | -2,204 |
The unrealized gains/losses on available-for-sale financial assets recognized in the fiscal year 2016/17 amounting to TEUR -2,461 relate to fair value changes on the investment in Q-Free ASA, Norway, which are tax neutral. Due to the ongoing unfavorable development of the share price up to the first half year 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 September 30, 2016, were recognized as impairment in the result for the period (TEUR -1,597; reclassification from other comprehensive income to the result for the period).
| H1 2015/16 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 | -4,474 | 22 | -4,452 |
| Gains/losses recognized in the result for the period | -3,126 | 829 | -2,297 |
| Currency translation differences | -1,335 | 0 | -1,335 |
| Currency translation differences from net investments in foreign business | 1,653 | -413 | 1,240 |
| Fair value changes recognized in equity | -7,282 | 438 | -6,844 |
In the first half year of the fiscal year 2015/16 the unrealized gains/losses on available-for-sale financial assets amounting to TEUR -4,386 related to fair value changes on the investment in Q-Free ASA, Norway, which are tax neutral.
In the first half year of the fiscal year 2015/16, the gains/losses recognized in the result for the period related to the disposal of current available-for-sale financial assets (see note 10).
On December 14, 2015, Kapsch TrafficCom concluded an agreement with Schneider Electric S.E. concerning an acquisition of its global transportation business. The Closing was on April 1, 2016. The transportation segment, which previously operated under the name Telvent Tráfico y Transporte, is a provider of real-time IT solutions and intelligent traffic systems for use in cities, on highways and in tunnels. The portfolio also includes tolling and transit solutions. The acquisition will enable Kapsch TrafficCom to offer existing and future customers an integrated portfolio of intelligent transportation solutions from the highway into the city.
| in TEUR | |
|---|---|
| Consideration paid | 26,096 |
| Conditional adjustment of purchase price (provisionally determined) | 1,346 |
| Purchase price total (provisionally determined) | 27,441 |
| Less fair value of net assets acquired (provisionally determined) | 30,432 |
| Difference between purchase price and net assets acquired (provisionally determined) | -2,991 |
Assets and liabilities resulting from the acquisition are shown as follows (provisionally determined):
| in TEUR | Fair value |
|---|---|
| Property, plant and equipment | 721 |
| Intangible assets | 5,170 |
| Other non-current assets | 157 |
| Inventories | 656 |
| Receivables and other current assets | 57,013 |
| Cash and cash equivalents | 9,542 |
| Liabilities, other liabilities and deferred income | -42,827 |
| Net assets acquired (provisionally determined) | 30,432 |
The above presentation is based on a preliminary purchase price allocation. The values may change subject to the audit to be performed on the opening balances as well as any contractually stipulated purchase price adjustments.
The acquired company contributed revenue of TEUR 52,971 and a net loss of TEUR -1,315 to the Group's result for the period from April 1, 2016 to September 30, 2016.
On July 1, 2016 Kapsch TrafficCom AG, Vienna, acquired 65% of shares in tolltickets GmbH, Germany. The purchase price was EUR 1.5 million. Furthermore an option for purchase of another 20% of shares exists.
| in TEUR | |
|---|---|
| Purchase price total | 1,524 |
| Less fair value of net assets acquired (provisionally determined) | 148 |
| Goodwill (provisionally determined) | 1,376 |
| Non-controlling interests (provisionally determined) | 80 |
Assets and liabilities resulting from the acquisition are shown as follows (provisionally determined):
| in TEUR | Fair value |
|---|---|
| Property, plant and equipment | 174 |
| Intangible assets | 72 |
| Other non-current assets | 14 |
| Joint Ventures | 2 |
| Inventories | 164 |
| Receivables and other current assets | 2,100 |
| Cash and cash equivalents | 1,202 |
| Liabilities, other liabilities and deferred income | -3,500 |
| Net assets acquired (provisionally determined) | 228 |
The acquired company contributed revenue of TEUR 7,001 and a net profit of TEUR 84 to the Group's result for the period from July 1, 2016 to September 30, 2016.
Most of the contingent liabilities of the Kapsch TrafficCom Group result from largescale projects, with the remainder relating to both performance guarantees and warranty obligations, sureties and performance bonds issued by the Kapsch TrafficCom Group, 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 have been adjusted in line with standard industry practice and solely comprise obligations owed to third parties as follows:
| in TEUR | Sep. 30, 2016 | March 31, 2016 |
|---|---|---|
| Contract, warranty and performance bonds | ||
| South Africa (Toll collection system) | 38,650 | 47,029 |
| Australia (Toll collection systems) | 21,045 | 20,832 |
| Other | 150 | 241 |
| Total | 59,846 | 68,102 |
Outflows of resources in connection with other liabilities amounting to TEUR 257,126 (previous year: TEUR 178,598), 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 | H1 2016/17 | H1 2015/16 |
|---|---|---|
| Affiliated companies outside the Kapsch TrafficCom Group | ||
| Revenues | 3,919 | 6,091 |
| Expenses | 14,712 | 14,776 |
| Other related parties | ||
| Revenues | 83 | 0 |
| Expenses | 49 | 49 |
| in TEUR | Sep. 30, 2016 | Sep. 30, 2015 |
|---|---|---|
| Affiliated companies outside the Kapsch TrafficCom Group | ||
| Trade receivables and other current assets | 868 | 2,990 |
| Trade payables and other liabilities | 6,114 | 8,097 |
| Liabilities from share purchase | 2,098 | 2,057 |
| Other related parties | ||
| Trade receivables and other current assets | 33 | 127 |
| Trade payables and other liabilities incl. retirement obligations | 12,578 | 13,177 |
The members of the Executive and Supervisory Boards have management functions or are members in Supervisory Boards of other companies of the Kapsch Group.
A comprehensive presentation of the different relationships with related parties are represented in note 31 of the annual financial statements for the year ended March 31, 2016.
No material events have occurred after September 30, 2016.
Vienna, November 17, 2016
The Managing Board
Georg Kapsch André Laux Alexander Lewald
Chief Executive Officer Executive Board member Executive Board member
Disclaimer. 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 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. The company 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. 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.
Kapsch TrafficCom is a provider of Intelligent Transpotation Systems (ITS) in the segments of toll collection, traffic management, safety and security, smart urban mobility and connected cars.
The end-to-end solutions of Kapsch TrafficCom cover the entire value creation chain of its customers as a one-stop shop, from components and design to the installation and operation of systems. The core business comprises the development, installation and operation of electronic toll collection and traffic management systems.
References in more than 50 countries on all continents have made Kapsch TrafficCom a globally recognized ITS provider. As part of the Kapsch Group, an Austrian family-owned technology group founded in 1892, Kapsch TrafficCom with over 4,600 employees is headquartered in Vienna, Austria, and subsidiaries and branches in 33 countries.
For more information:
www.kapsch.net
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