Quarterly Report • Feb 29, 2016
Quarterly Report
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2014/15 (fiscal year 2014/15): 1 April 2014–31 March 2015 2015/16 Q1-Q3 (first three quarters of fiscal year 2015/16): 1 April–31 December 2015 2015/16 Q3 (third quarter of fiscal year 2015/16): 1 October–31 December 2015
The free cash flow of EUR 74.8 million signals the potential for new projects and growth.
The capital expenditure of EUR 6.9 million was at the same level as the previous year.
The net debt shifted into positive territory for a net asset of EUR 24.5 million.
Total assets (in million EUR) and equity ratio (in %)
The balance sheet total declined by 2%, while the equity ratio increased to 45.2%.
All figures presented in million EUR unless otherwise stated
| Earnings Data | 2015/16 Q1-Q3 | 2014/15 Q1-Q3 | +/- | 2015/16 Q3 | 2014/15 Q3 | +/- | 2014/15 |
|---|---|---|---|---|---|---|---|
| Revenues | 379.2 | 349.5 | 8% | 134.3 | 112.1 | 20% | 456.4 |
| EBITDA | 55.4 | 48.3 | 15% | 19.6 | 10.3 | 91% | 61.5 |
| EBITDA margin (in %) | 14.6 | 13.8 | 14.6 | 9.2 | 13.5 | ||
| EBIT | 43.3 | 23.7 | 82% | 15.9 | 6.2 | 157% | 32.7 |
| EBIT margin (in %) | 11.4 | 6.8 | 11.8 | 5.5 | 7.2 | ||
| Profit before tax | 34.1 | 9.8 | 249% | 9.4 | 0.3 | >500% | 19.9 |
| Profit for the period | 25.3 | 1.0 | >500% | 6.1 | 0.0 | >500% | 11.4 |
| Profit for the period attributable | |||||||
| to equity holders | 21.3 | -4.6 | — | 4.7 | -1.1 | — | 3.6 |
| Earnings per share 1 (in EUR) | 1.64 | -0.36 | — | 0.36 | -0.09 | — | 0.28 |
| Free cash flow 2 | 74.8 | 59.4 | 26% | 44.5 | 34.0 | 31% | 68.2 |
| Capital expenditure 3 | 6.9 | 6.0 | 15% | 4.0 | 2.0 | 97% | 8.4 |
| Employees 4 | 3,461 | 3,685 | -6% | 3,461 | 3,685 | -6% | 3,545 |
| On-board units delivered (in million units) | 6.69 | 5.61 | 19% | 2.09 | 2.36 | -11% | 7.42 |
| Business Segments | 2015/16 Q1-Q3 | 2014/15 Q1-Q3 | +/- | 2015/16 Q3 | 2014/15 Q3 | +/- | 2014/15 |
| Road Solution Projects (RSP) | |||||||
| Revenues (share in revenues) | 69.7 (18.4%) |
51.3 (14.7%) |
36% | 31.5 (23.5%) |
13.5 (12.0%) |
134% | 60.2 (13.2%) |
| EBIT (EBIT margin) | -12.9 (-18.5%) | -37.4 (-72.9%) | 66% | -3.7 (-11.8%) | -13.7(-102.0%) | 73% | -50.7 (-84.4%) |
| Services, System Extensions, | |||||||
| Components Sales (SEC) | |||||||
| Revenues (share in revenues) | 292.2 (77.0%) |
280.6 (80.3%) |
4% | 98.0 (73.0%) |
93.4 (83.3%) |
5% | 372.6 (81.6%) |
| EBIT (EBIT margin) | 54.6 (18.7%) |
60.0 (21.4%) |
-9% | 19.1 (19.5%) |
19.7 (21.1%) |
-3% | 82.2 (22.1%) |
| Others (OTH) | |||||||
| Revenues (share in revenues) | 17.3 (4.6%) |
17.6 (5.0%) |
-1% | 4.8 (3.6%) |
5.2 (4.7%) |
-8% | 23.6 (5.2%) |
| EBIT (EBIT margin) | 1.5 (8.9%) |
1.2 (6.8%) |
28% | 0.5 (11.2%) |
0.2 (3.0%) |
244% | 1.3 (5.4%) |
| Regions | 2015/16 Q1-Q3 | 2014/15 Q1-Q3 | +/- | 2015/16 Q3 | 2014/15 Q3 | +/- | 2014/15 |
| Austria 5 | 29.6 (8%) |
29.0 (8%) |
2% | 10.8 (8%) |
11.0 (10%) |
-2% | 38.2 (8%) |
| Europe 5 | 194.9 (51%) |
183.5 (52%) |
6% | 66.6 (50%) |
57.8 (52%) |
15% | 234.0 (51%) |
| Americas 5 | 85.0 (22%) |
67.2 (19%) |
27% | 32.6 (24%) |
24.1 (22%) |
35% | 92.6 (20%) |
| Rest of World5 | 69.7 (18%) |
69.9 (20%) |
0% | 24.2 (18%) |
19.2 (17%) |
26% | 91.6 (20%) |
| Balance Sheet Data | 31 Dec. 2015 | 31 Dec. 2014 | +/- | 31 March 2015 | |||
| Total assets | 497.7 | 509.5 | -2% | 515.6 | |||
| Total equity 6 | 225.0 | 209.0 | 8% | 219.4 | |||
| Equity ratio6 (in %) |
45.2 | 41.0 | 42.5 | ||||
| Net asset (+)/debt (-) | 24.5 | -43.5 | — | -35.9 | |||
| Capital employed | 338.5 | 352.6 | -4% | 357.3 | |||
| Net working capital | 174.7 | 183.0 | -5% | 209.9 | |||
| Stock Exchange Data | 2015/16 Q3 | 2015/16 Q2 | +/- | 2014/15 | |||
| Number of shares 7 (in million) | 13.0 | 13.0 | 0% | 13.0 | |||
| Free float 7 (in %) | 36.7 | 36.7 | 0% | 36.9 | |||
| Ø daily trading volume 8 (in shares) | 23,559 | 23,757 | 0% | 27,574 | |||
| Closing price 7 (in EUR) | 37.40 | 29.29 | 28% | 23.85 | |||
| Market capitalization 7 | 486.14 | 380.77 | 28% | 309.99 | |||
| Share performance (in %) | 27.7 | 32.0 | -40.4 |
1 Earnings per share relate to 13.0 million shares, calculated from the result for the period attributable to the equity holders of the company
2 Operating cash flow minus capital expenditure from operations (excl. payments for acquisition of companies and purchases of securities and investments) plus proceeds from the disposal of property, plant and equipment and intangible assets
3 Capital expenditure from operations (excl. payments for acquisition of companies and purchases of securities and investments)
4 Q3 as of 31 December; 2014/15 as of 31 March 2015
5 Revenues (share on total revenues in %); Europe excl. Austria 6 Incl. non-controlling interests
7 Q3 as of 31 December 2015, Q2 as of 30 September 2015;
for additional information on the share see page 6
8 Average daily trading volume (double counting)
Kapsch TrafficCom
4
In the first three quarters of the 2015/16 fiscal year, the effects and results of Program 2020 were already clearly visible in the Kapsch TrafficCom Group. In the past year, we implemented comprehensive measures for cost reduction and improved earnings with the project "Top Fit" and also adapted our strategy with respect to future developments and growth potential.
Projects and markets. Our existing operation projects continued to represent a stable foundation, and the expansion of the systems in Belarus and Poland contributed to revenue and earnings as expected. In the U.S.A., we have now positioned ourselves as an end-to-end provider, and we obtained new orders there as well as in Chile, Australia and New Zealand. In Italy, we successfully put a city solution into operation, and in the Czech Republic, our V2X technology will be utilized in the capital of Prague. Not least, Kapsch TrafficCom was able to win an important
order in late summer: the delivery and installation of the traffic management systems within the framework of the cross-border program "CHARM" of the road authorities of the Netherlands and Great Britain. This advanced traffic management system will be the largest and most modern system in Europe and will secure for us a globally recognized position in traffic management systems to match the position we have enjoyed for many years in the area of electronic toll collection. All of these developments contribute immensely to strengthening and securing the core business of the Kapsch TrafficCom Group in addition to demonstrating the demand for city solutions. They are also reflected in our financial figures.
Asset, financial and earnings situation. The revenue in the first three quarters of 2015/16 of EUR 379.2 million was 8% above the previous year. The EBIT increased disproportionately by 82 %
to EUR 43.3 million. This growth is all the more impressive since the comparison value of the previous year was significantly elevated due to one-time effects. The current results also include our investment in a majority stake in the smart parking provider Streetline. The successes of the project "Top Fit" as well as the newly launched projects and the significant increase in our on-board unit sales contributed positively. The EBIT margin has remained in the double digits for the last three quarters and is currently 11.4%.
The profit for the period rose to EUR 25.3 million and enabled earnings per share of EUR 1.64, while the free cash flow increased to EUR 74.8 million. The balance sheet figures also reflect a continuous improvement over the first three quarters of the fiscal year. Cash and cash equivalents increased to EUR 138.0 million as at the end of December and helped ensure that the Kapsch TrafficCom Group has no net debt but rather a net credit of EUR 24.5 million.
Program 2020 and strategy. The cost savings and organizational changes contributed significantly to our operational excellence, and the measures implemented will become fully apparent over the course of this fiscal year. It can be stated already today that the savings were realized more effectively and more rapidly than originally expected.
Our Strategy 2020, which was introduced in April, will secure our future growth. The initial priorities that we have set are: 1. Operational excellence, which we have been able to improve in the meantime; 2. Strengthening and securing the core business, which is reflected in the new projects we have obtained; and 3. Establishment of the intelligent mobility solutions (IMS) business.
In December, we also concluded an agreement to take over the global transportation business of Schneider Electric, which encompasses integrated advanced traffic management solutions for cities, highways and transit solutions. This will enable Kapsch TrafficCom to offer integrated intelligent transportation solutions from the highway into the city. Furthermore, we will expand our presence in the growth markets of Spain, Latin America, the U.S.A. and the Middle East. The acquisition should be concluded in the coming weeks – subject to all agreed conditions.
The current fiscal year 2015/16 is now almost finished. We have accomplished much in the past months and laid a strong foundation for the future. On this basis, we expect the EBIT margin for the entire fiscal year 2015/16 to be above the 10% mark that we set as an initial minimum target for our core business.
From an operational perspective, we take an optimistic view of the development of our existing projects, including for the coming fiscal year 2016/17. There are also several invitations to tender that we are watching: We are waiting for a decision in Slovenia, and the new invitation to tender for the existing toll system in Austria is currently under way. In addition, we continue to expect additional potential projects.
Our activities will continue to focus on the implementation of our strategy. In accordance with the changes in our business, our internal structures – and therefore our reporting as well – have followed a modified segmentation since the fourth quarter of the current fiscal year. A detailed explanation of this will be provided together with our annual figures, which will still be presented in a way that allows for easy comparison. We are also planning additional strategic steps to shape our future.
Sincerely,
Georg Kapsch Chief Executive Officer
The Kapsch TrafficCom shares are listed on the Vienna Stock Exchange and are included in the Austrian indexes ATX Prime, ATX Global Players and the sustainability index VÖNIX.
After the share price exhibited a heavy decline in the previous fiscal year, it was able to recover significant value in the first three quarters of the fiscal year 2015/16. A lasting upward trend has been observed in particular since May, contrary to the developments on the international stock exchanges. At the end of the third quarter, on 31 December 2015, the shares closed at EUR 37.40, which is 57% above the price at the start of the fiscal year. The international comparison indexes all declined
during the reporting period due to global economic and political developments. The ATX Prime index lost roughly 3% in value, the German DAX and the European share index Euro Stoxx 50 lost somewhat more than 10%.
The number of shares is 13 million. KAPSCH-Group Beteiligungs GmbH holds 63.3% of the shares. The remaining 36.7% are in free float, of which approximately 5.4% have been held according to the company's information by The Bank of New York Mellon Corporation as well as its affiliated companies since the start of July 2015. On 31 December 2015, the market capitalization with respect to the closing share price of EUR 37.40 was EUR 486.1 million.
Share price development in the first three quarters of fiscal year 2015/16 (Kapsch TrafficCom and ATX Prime Index)
The final price of the Kapsch TrafficCom shares and final value of the ATX Prime Index on 31 March 2015, both indexed to 100
| Investor Relations Officer | Marcus Handl | ||
|---|---|---|---|
| Information on the Shares | Shareholders' Telephone | +43 50 811 1120 | |
| [email protected] | |||
| Website | www.kapschtraffic.com | ||
| Stock Exchange | Vienna, Prime Market | ||
| ISIN | AT000KAPSCH9 | ||
| Trading Symbol | KTCG | ||
| Reuters | KTCG.VI | ||
| Bloomberg | KTCG:AV | ||
| Financial Calendar | 22 June 2016 | Results of fiscal year (FY) 2015/16 | |
| 24 August 2016 | Interim report for FY 2016/17 Q1 | ||
| 07 September 2016 | Annual General Meeting for FY 2015/16 | ||
| 14 September 2016 | Ex date for dividends for FY 2015/16 | ||
| 16 September 2016 | Record Date | ||
| 21 September 2016 | 1st payment date for dividends for FY 2015/16 | ||
| 17 November 2016 | Interim report for FY 2016/17 Q2 | ||
| 22 February 2017 | Interim report for FY 2016/17 Q3 | ||
| 21 June 2017 | Results of FY 2016/17 | ||
| 06 September 2017 | Annual General Meeting for FY 2016/17 |
The revenues of the Kapsch TrafficCom Group were EUR 379.2 million in the first three quarters of the current fiscal year 2015/16 (2015/16 Q1-Q3), up by 8.5% from the same period of the previous fiscal year (2014/15 Q1-Q3: EUR 349.5 million). Revenues increased in the Road Solution Projects (RSP) segment and the Services, System Extensions, Components Sales (SEC) segment, while revenues in the segment Others (OTH) were slightly below those of the previous year.
Revenues by segment in the first three quarters were as follows:
The number of on-board units sold amounted to 6.69 million units (2014/15 Q1-Q3: 5.61 million units), an increase of 1.08 million units. Increases were observed in particular in Thailand, North America and Australia, while the sales figures in Chile lagged behind those of the comparison period.
¾ In the segment Others (OTH), revenue amounted in the first three quarters of fiscal year 2015/16 to EUR 17.3 million (2014/15 Q1-Q3: EUR 17.6 million). A positive contribution to segment revenue was made by the non-ITS-related business of KTC USA Inc., largely due to the operational monitoring of environmental facilities in the U.S.A. The production and supply for the GSM-R project of Kapsch CarrierCom declined compared with the same period in the previous year.
In the first three quarters of the current fiscal year, the Kapsch TrafficCom Group reported an operating result (EBIT) of EUR 43.3 million, which was significantly higher than the comparison period of the previous year (2014/15 Q1-Q3: EUR 23.7 million). The operating results by segment were as follows:
¾The segment RSP recorded an EBIT of EUR -12.9 million during the reporting period after EUR -37.4 million in the first three quarters of the previous year. The new projects obtained since the previous year contributed to this improvement as did the successful implementation of the project "Top Fit", which contains measures for cost reduction and improved earnings. In the comparison period of the previous year, two mutually opposing one-time effects were taken into account: While a goodwill impairment in the cash-generating unit "Road Solution Projects, Electronic Toll Collection" in the amount of EUR 12.3 million weighed down the EBIT of the segment, the release of a provision for losses from pending transactions and follow-up work in the amount of EUR 16.1 million had a positive effect on earnings. Despite the improvement, it was not possible during the reporting period to fully cover the expenditures for development and preparatory work for potential tenders as well as expenditures for ongoing tenders attributed to this segment.
¾The segment SEC achieved an EBIT of EUR 54.6 million (2014/15 Q1-Q3: EUR 60.0 million). The decline in comparison to the same period of the previous year results from the one-time revenue effect from the South African project. In addition, the costs of Streetline, Inc., U.S.A., which was acquired in April, negatively impact the result in this segment during the current fiscal year. On the other hand, growth in the component business had a positive impact.
¾The segment OTH exhibited an EBIT of EUR 1.5 million (2014/15 Q1-Q3: EUR 1.2 million).
The financial result improved from EUR -14.1 million in the comparison period of the previous year to EUR -9.1 million. The finance income increased from EUR 8.8 million to EUR 9.4 million, largely due to the profit from the sale of securities in the amount of EUR 3.4 million (2014/15 H1: EUR 0.0 million). In contrast to this, the effect from the compounding of the receivables from the installation of the Belorussian toll system was lower than the previous year at EUR 2.6 million (2014/15 Q1-Q3: EUR 4.5 million). The finance costs declined from EUR -22.9 million to EUR -18.6 million, although the as yet unrealized foreign currency losses increased to EUR -10.6 million (2014/15 Q1-Q3: EUR 0.0 million). A goodwill impairment of Q-Free ASA in the amount of EUR 18.5 million was recorded under finance costs in the comparison period of the previous year in connection with the continued poor share price performance.
The profit for the period increased significantly from EUR 1.0 million in the comparison period of the previous year to EUR 25.3 million. The share attributable to the equity holders of the company also presents a positive picture at EUR 21.3 million (2014/15 Q1-Q3: EUR -4.6 million). The Kapsch TrafficCom Group can therefore report significantly positive earnings per share in the amount of EUR 1.64 (2014/15 Q1-Q3: EUR -0.36).
The balance sheet total on 31 December 2015 of EUR 497.7 million was lower than at the end of the 2014/15 fiscal year (31 March 2015: EUR 515.6 million). The total equity of EUR 225.0 million was above the comparison value on 31 March 2015 of EUR 219.4 million. The equity ratio of the Kapsch TrafficCom Group improved as a result from 42.5% on 31 March 2015 to 45.2% on 31 December 2015.
The greatest change in non-current assets took place under other non-current assets. These declined by EUR 16.9 million due to the contractual repayment from the Belorussian installation project. Under current assets, the trade receivables and other current assets were down by EUR 21.1 million on 31 December 2015 due to date-related fluctuations in accounts receivable.
On the liabilities side of the balance sheet, the largest changes occurred in non-current financial liabilities, which declined by EUR 16.4 million, and in the current financial liabilities, which fell by EUR 8.0 million. This is related largely to the buyback of corporate bonds in the amount of EUR 4.2 million as well as the ongoing repayment of the financing for the installation of the nationwide electronic truck toll system in Belarus.
The net cash flow from operating activities amounted to EUR 79.9 million in the first three quarters of the fiscal year after EUR 64.6 million in the comparison period of the previous year and can be attributed to the positive profit from operating activities as well as the decline in the non-current receivables. In addition, the net cash flow from operating activities was affected in the previous year by the release of a provision with an impact on earnings in the amount of EUR 16.1 million as well as a goodwill impairment in the amount of EUR 12.3 million.
The cash flow from investing activities was positive at EUR 2.8 million in the first three quarters of the fiscal year 2015/16 due to the sale of securities as well as the cash inflow from the purchase of the shares in Streetline, Inc., U.S.A. The free cash flow was also positive at EUR 74.8 million (2014/15 Q1-Q3: EUR 59.4 million). The decrease in the current and non-current financial liabilities due to the buyback of corporate bonds and the repayment of project financing as well as the dividends paid out for the previous fiscal year in the amount of EUR 13.2 million resulted in a negative net cash flow from financing activities of EUR -37.1 million. Cash and cash equivalents increased from EUR 96.8 million on 31 March 2015 to EUR 138.0 million on 31 December 2015. The decrease in non-current financial liabilities and the increase in cash and cash equivalents led to a surplus in net debt of EUR 24.5 million on 31 December 2015, which is reported as a net credit (31 March 2015: EUR -35.9 million).
On 14 December 2015, Kapsch TrafficCom AG announced that an agreement was reached with Schneider Electric S.E. concerning an acquisition of its global transportation business. Schneider's transportation business, previously active under the brand Telvent Tráfico y Transporte, is a provider of integrated advanced traffic management software (ATMS) solutions for applications in cities, on highways and in tunnels as well as toll 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.
The acquisition is taking place based on a purchase price of EUR 35 million, free of cash and liabilities and subject to the existence of agreed conditions, which are currently being evaluated. The conclusion of the transaction is expected in the coming weeks.
Vienna, 24 February 2016
The Executive Board
Georg Kapsch Chief Executive Officer
André Laux Executive board member
Alexander Lewald Executive board member
| 2015/16 | 2014/15 | 2015/16 | 2014/15 | ||
|---|---|---|---|---|---|
| All amounts in TEUR | Notes | Q3 | Q3 | Q1-Q3 | Q1-Q3 |
| Revenues | (5) | 134,262 | 112,106 | 379,226 | 349,526 |
| Other operating income | 6,250 | 5,080 | 12,731 | 11,378 | |
| Changes in finished and unfinished goods and work in progress | -4,222 | -2,400 | -4,593 | -1,533 | |
| Own work capitalized | 139 | 0 | 547 | 0 | |
| Cost of materials and other production services | -50,747 | -40,792 | -144,204 | -131,440 | |
| Staff costs | -39,237 | -39,772 | -113,857 | -110,214 | |
| Amortization and depreciation | -3,755 | -4,093 | -12,095 | -12,211 | |
| Impairment charge | 0 | 0 | 0 | -12,342 | |
| Other operating expenses | -26,814 | -23,955 | -74,479 | -69,415 | |
| Operating result | (5) | 15,875 | 6,173 | 43,276 | 23,750 |
| Finance income | 1,432 | 2,848 | 9,442 | 8,796 | |
| Finance costs | -7,882 | -8,728 | -18,580 | -22,892 | |
| Financial result | -6,450 | -5,880 | -9,137 | -14,096 | |
| Result from associates | -39 | 2 | 6 | 141 | |
| Result before income taxes | 9,386 | 295 | 34,144 | 9,795 | |
| Income taxes | (13) | -3,321 | -251 | -8,852 | -8,830 |
| Result for the period | 6,065 | 44 | 25,292 | 966 | |
| Result attributable to: | |||||
| Equity holders of the company | 4,669 | -1,122 | 21,344 | -4,635 | |
| Non-controlling interests | 1,396 | 1,166 | 3,947 | 5,600 | |
| 6,065 | 44 | 25,292 | 966 | ||
| Earnings per share from the result for the period attributable | |||||
| to the equity holders of the company (in EUR) | 0.36 | -0.09 | 1.64 | -0.36 | |
| Other comprehensive income for the period | |||||
| Items subsequently reclassified to the result for the period: | |||||
| Currency translation differences | 1,975 | -2,820 | 640 | -7,228 | |
| Currency translation differences from net investments in foreign operations | -2,123 | 1,282 | -469 | 4,321 | |
| Available-for-sale financial assets: | |||||
| Fair value gains/losses recognized in other comprehensive income | -1,093 | 45 | -5,567 | -2,224 | |
| Reclassification of cumulated net losses to the result for the period (impairment) | 1,046 | 0 | 1,237 | 12,185 | |
| Reclassification of cumulated net gains to the result for the period | |||||
| (sale of available-for-sale financial assets) | 0 | 0 | -3,318 | 0 | |
| Income tax relating to items subsequently reclassified to the result for the period | 543 | -332 | 981 | -1,194 | |
| Total items subsequently reclassified to the result for the period | 347 | -1,825 | -6,497 | 5,860 | |
| 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 | (14) | 347 | -1,825 | -6,497 | 5,860 |
| Total comprehensive income for the period | 6,412 | -1,781 | 18,795 | 6,826 | |
| Total comprehensive income attributable to: | |||||
| Equity holders of the company | 5,090 | -2,930 | 15,060 | 1,219 | |
| Non-controlling interests | 1,323 | 1,150 | 3,735 | 5,607 | |
| 6,412 | -1,781 | 18,795 | 6,826 |
Earnings per share relate to 13.0 million shares.
The notes on the following pages form an integral part of this condensed interim financial information.
*) The condensed consolidated interim report has neither been audited nor been reviewed by an auditor.
| All amounts in TEUR | Notes | 31 Dec. 2015 | 31 March 2015 |
|---|---|---|---|
| ASSE TS |
|||
| Non-current assets | |||
| Property, plant and equipment | (6) | 20,476 | 22,393 |
| Intangible assets | (6) | 66,210 | 71,250 |
| Interests in associates | (7) | 1,836 | 2,014 |
| Other non-current financial assets and investments | (8) | 17,588 | 23,099 |
| Other non-current assets | 11,187 | 28,138 | |
| Deferred tax assets | 14,986 | 13,590 | |
| 132,282 | 160,485 | ||
| Current assets | |||
| Inventories | 43,044 | 47,670 | |
| Trade receivables and other current assets | 184,310 | 205,387 | |
| Other current financial assets | (8) | 0 | 5,291 |
| Cash and cash equivalents | 138,034 | 96,765 | |
| 365,388 | 355,113 | ||
| Total assets | 497,670 | 515,597 | |
| EQUI TY |
|||
| Capital and reserves attributable to equity holders of the company | |||
| Share capital | (9) | 13,000 | 13,000 |
| Capital reserve | 117,509 | 117,509 | |
| Retained earnings and other reserves | 85,991 | 77,449 | |
| 216,499 | 207,958 | ||
| Non-controlling interests | 8,469 | 11,403 | |
| Total equity | 224,969 | 219,361 | |
| LIA BILITIES |
|||
| Non-current liabilities | |||
| Non-current financial liabilities | (10) | 72,634 | 88,985 |
| Liabilities from post-employment benefits to employees | (11) | 24,690 | 25,210 |
| Non-current provisions | (12) | 1,369 | 1,661 |
| Other non-current liabilities | 4,484 | 4,657 | |
| Deferred income tax liabilities | 794 | 2,380 | |
| 103,971 | 122,892 | ||
| Current liabilities | |||
| Trade payables | 52,701 | 48,441 | |
| Other liabilities and deferred income | 63,306 | 65,535 | |
| Current tax payables | 2,904 | 1,174 | |
| Current financial liabilities | (10) | 40,930 | 48,969 |
| Current provisions | (12) | 8,890 | 9,225 |
| 168,731 | 173,344 | ||
| Total liabilities | 272,702 | 296,236 | |
| Total equity and liabilities | 497,670 | 515,597 |
The notes on the following pages form an integral part of this interim financial information.
| Non | ||||||
|---|---|---|---|---|---|---|
| controlling | Total | |||||
| Attributable to equity holders of the company | interests | equity | ||||
| Consolidated | ||||||
| Share | Capital | Other | retained | |||
| capital | reserve | reserves | earnings | |||
| Carrying amount as of 31 March 2014 | 13,000 | 117,509 | -13,713 | 86,004 | 10,310 | 213,110 |
| Dividend | 0 | -6,935 | -6,935 | |||
| Effects from increase in shares of subsidiaries | -4,821 | 795 | -4,026 | |||
| Non-controlling interests arising on foundation | ||||||
| of a subsidiary | 5 | 5 | ||||
| Result for the period | -4,635 | 5,600 | 966 | |||
| Other comprehensive income for the period: | ||||||
| Currency translation differences | -3,993 | 6 | -3,988 | |||
| Fair value gains/losses on available-for-sale | ||||||
| financial assets | 9,848 | 0 | 9,848 | |||
| Carrying amount as of 31 December 2014 | 13,000 | 117,509 | -12,679 | 81,369 | 9,781 | 208,979 |
| Carrying amount as of 31 March 2015 | 13,000 | 117,509 | -12,184 | 89,634 | 11,403 | 219,361 |
| Dividend | -6,500 | -6,709 | -13,209 | |||
| Effects from acquisition of shares in subsidiaries | 0 | 21 | 21 | |||
| Effects from the acquisition and sale of | ||||||
| non-controlling interests | -19 | 19 | 0 | |||
| Result for the period | 21,344 | 3,947 | 25,292 | |||
| Other comprehensive income for the period: | ||||||
| Currency translation differences | 500 | -212 | 288 | |||
| Fair value gains/losses on available-for-sale | ||||||
| financial assets | -6,785 | 0 | -6,785 | |||
| Carrying amount as of 31 December 2015 | 13,000 | 117,509 | -18,469 | 104,460 | 8,469 | 224,969 |
The effects from the acquisition of shares in subsidiaries in the third quarter of the fiscal year 2015/16 result from the acquisition of shares in Streetline, Inc., California (see note 15). The notes on the following pages form an integral part of this interim financial information.
| 2015/16 | 2014/15 | 2015/16 | 2014/15 | |
|---|---|---|---|---|
| All amounts in TEUR | Q3 | Q3 | Q1-Q3 | Q1-Q3 |
| Cash flow from operating activities | ||||
| Operating result | 15,875 | 6,173 | 43,276 | 23,750 |
| Adjustments for non-cash items and other reconciliations: | ||||
| Scheduled amortization and depreciation | 3,755 | 4,093 | 12,095 | 12,211 |
| Impairment charge | 0 | 0 | 0 | 12,342 |
| Increase/decrease in obligations for post-employment benefits | -98 | -218 | -520 | -377 |
| Increase/decrease in other non-current liabilities and provisions | 429 | 92 | -41 | 58 |
| Increase/decrease in other non-current receivables and assets | -782 | -164 | -2,787 | -3,387 |
| Increase/decrease in trade receivables (non-current) | 3,257 | 14,620 | 22,436 | 33,639 |
| Increase/decrease in trade payables (non-current) | -156 | -211 | -626 | -662 |
| Other (net) | -3,834 | 41 | -2,126 | 243 |
| 18,447 | 24,427 | 71,706 | 77,817 | |
| Changes in net current assets: | ||||
| Increase/decrease in trade receivables and other assets | 21,964 | 22,905 | 20,902 | 29,025 |
| Increase/decrease in inventories | 4,345 | 2,316 | 4,626 | 7,651 |
| Increase/decrease in trade payables and other current payables | 4,103 | -7,870 | -1,221 | -18,546 |
| Increase/decrease in current provisions | 466 | -3,759 | -335 | -19,680 |
| 30,878 | 13,592 | 23,972 | -1,549 | |
| Cash flow from operating activities | 49,326 | 38,019 | 95,678 | 76,267 |
| Interest received | 256 | 491 | 823 | 1,399 |
| Interest payments | -1,235 | -1,900 | -3,806 | -4,327 |
| Net payments of income taxes | -1,494 | -1,214 | -12,793 | -8,714 |
| Net cash flow from operating activities | 46,853 | 35,395 | 79,903 | 64,625 |
| Cash flow from investing activities | ||||
| Purchase of property, plant and equipment | -1,890 | -1,912 | -4,733 | -5,403 |
| Purchase of intangible assets | -2,115 | -121 | -2,212 | -614 |
| Purchase of securities and investments | 0 | 0 | 0 | -362 |
| Payments received from the acquisition of entities (less payment for the acquisition | ||||
| of the entity) | 0 | 0 | 2,543 | 0 |
| Payments received from the disposal of property, plant and equipment and intangible assets | 1,622 | 594 | 1,855 | 832 |
| Payments received from the disposal of securities and investments | 0 | 0 | 5,375 | 0 |
| Net cash flow from investing activities | -2,383 | -1,439 | 2,827 | -5,546 |
| Cash flow from financing activities | ||||
| Contributions from shareholders | 0 | 5 | 0 | 5 |
| Dividends paid to company shareholder | 0 | 0 | -6,500 | 0 |
| Dividends paid to non-controlling interests | -11 | 0 | -6,709 | -6,935 |
| Increase in non-current financial liabilities | 12 | 56 | 483 | 147 |
| Decrease in non-current financial liabilities | -2,514 | -5,083 | -16,834 | -15,610 |
| Increase in current financial liabilities | 698 | 4,109 | 2,573 | 6,342 |
| Decrease in current financial liabilities | -6,570 | -3,078 | -10,141 | -5,678 |
| Net cash flow from financing activities | -8,386 | -3,991 | -37,127 | -21,730 |
| Net increase/decrease in cash and cash equivalents | 36,083 | 29,965 | 45,602 | 37,349 |
| Change in cash and cash equivalents | ||||
| Cash and cash equivalents at beginning of period | 102,339 | 65,592 | 96,765 | 57,731 |
| Net increase/decrease in cash and cash equivalents | 36,083 | 29,965 | 45,602 | 37,349 |
| Exchange gains/losses on cash and cash equivalents | -388 | -716 | -4,333 | -239 |
| Cash and cash equivalents at end of period | 138,034 | 94,842 | 138,034 | 94,842 |
The notes on the following pages form an integral part of this interim financial information.
Kapsch TrafficCom Group is an international supplier of superior intelligent transportation systems (ITS).
The business activities of the Kapsch TrafficCom Group are subdivided into the following three segments: ¾Road Solution Projects (RSP)
The segment Road Solution Projects relates to the installation of ITS solutions.
The segment Services, System Extensions, Components Sales relates to the sale of services (maintenance and operation) and components in the area of ITS solutions.
The segment Others relates to non-core business activities conducted by Kapsch Components GmbH & CoKG. In this segment, Kapsch TrafficCom Group offers engineering solutions, electronic manufacturing and logistics services to affiliated entities and third parties. Furthermore, the non-ITS relevant business of KTC USA Inc. is allocated to this segment, including solutions, systems and services for operational monitoring of public transportation and environmental infrastructure.
This condensed interim financial information for the third quarter of the current fiscal year 2015/16 ended 31 December 2015 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 31 March 2015.
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 31 March 2015, as described in the annual financial statements for the year ended 31 March 2015.
In the condensed interim financial information for the third quarter of the current fiscal year 2015/16 the following new or amended IFRS and IFRIC have been adopted.
| Applicable to financial years beginning on or after |
|---|
| 1 January 2015 |
| 1 January 2015 |
| 1 January 2015 |
| 1 January 2015 |
| 1 January 2015 |
| 1 January 2015 |
| 1 January 2015 |
| 1 January 2015 |
| Employee Benefits (Amendment) Annual improvement to IFRS, 2010–2012 Share-based Payment Business Combinations Operating Segments Fair Value Measurement Property, Plant and Equipment Related Party Disclosures Intangible Assets |
| New/adopted IFRSs | Applicable to financial years beginning on or after | |||
|---|---|---|---|---|
| Annual improvement to IFRS, 2011–2013 | ||||
| IFRS 1 | First-time Adoption of International Financial Reporting Standards | 1 January 2015 | ||
| IFRS 3 | Business Combinations | 1 January 2015 | ||
| IFRS 13 | Fair Value Measurement | 1 January 2015 | ||
| IAS 40 | Investment Property | 1 January 2015 |
Adoption of the new/amended standards did not result in any significant effects on the condensed consolidated interim financial information.
The financial risks to which Kapsch TrafficCom Group is exposed are generally consistent with those of the consolidated financial statements for the year ended 31 March 2015 and are described therein.
| Services, | ||||
|---|---|---|---|---|
| 2015/16 Q1-Q3 | Road Solution | System Extensions, | Consolidated | |
| All amounts in TEUR | Projects | Components Sales | Others | group |
| Revenues | 69,740 | 292,160 | 17,325 | 379,226 |
| Operating result | -12,875 | 54,616 | 1,534 | 43,276 |
| 2014/15 Q1-Q3 | Road Solution | Services, System Extensions, |
Consolidated | |
| All amounts in TEUR | Projects | Components Sales | Others | group |
| Revenues | 51,342 | 280,621 | 17,563 | 349,526 |
The following table contains all single external customers which contributed more than 10% to the total revenues of the period and additionally shows the information of the respective operating segment.
| All amounts in TEUR | 2015/16 Q1-Q3 | 2014/15 Q1-Q3 | ||||
|---|---|---|---|---|---|---|
| Services, | Services, | |||||
| Road Solution | System Extensions, | Road Solution | System Extensions, | |||
| Revenues | Projects | Components Sales | Revenues | Projects | Components Sales | |
| Customer 1 | 61,811 | x | 60,057 | x | ||
| Customer 2 | 53,993 | x | 51,649 | x | ||
| Customer 3 | 37,185 | x | x | 32,344 | x | x |
| Customer 4 | 32,605 | x | x | 40,801 | x | x |
| All amounts in TEUR | 2015/16 | 2014/15 |
|---|---|---|
| Carrying amount as of 31 March of prior year | 93,644 | 113,014 |
| Additions | 6,946 | 6,017 |
| Additions from the acquisition | 1,297 | 0 |
| Disposals | -1,855 | -832 |
| Impairment charge | 0 | -12,342 |
| Depreciation, amortization and other movements | -12,095 | -12,211 |
| Currency translation differences | -1,251 | 1,178 |
| Carrying amount as of 31 December of fiscal year | 86,686 | 94,824 |
In the third quarter of the fiscal year 2014/15, the position "Impairment charge" includes an impairment of the goodwill of the cash generating unit "Road Solution Projects, Electronic Toll Collection" amounting to TEUR 12,342.
| All amounts in TEUR | 2015/16 | 2014/15 |
|---|---|---|
| Carrying amount as of 31 March of prior year | 2,014 | 1,596 |
| Currency translation differences | -184 | 136 |
| Additions from foundations and acquisitions | 0 | 0 |
| Disposals | 0 | 0 |
| Share in result | 6 | 141 |
| Carrying amount as of 31 December of fiscal year | 1,836 | 1,874 |
On 31 July 2012 the group acquired 33% of the shares in Simex, Integración de Sistemas, S.A.P.I. de C.V., Mexico City, 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.
| All amounts in TEUR | 31 Dec. 2015 | 31 March 2015 | 31 Dec. 2014 | 31 March 2014 |
|---|---|---|---|---|
| Other non-current financial assets and investments | 17,588 | 23,099 | 18,843 | 28,506 |
| Other current financial assets | 0 | 5,291 | 5,293 | 4,924 |
| 17,588 | 28,390 | 24,136 | 33,430 | |
| Other non-current financial assets and investments | Available | Available | Other | |
| 2015/16 Q1-Q3 | for-sale | for-sale | non-current | |
| All amounts in TEUR | securities | investments | financial assets | Total |
| Carrying amount as of 31 March 2015 | 3,803 | 19,296 | 0 | 23,099 |
| Currency translation differences | 0 | 0 | 0 | 0 |
| Additions | 0 | 0 | 96 | 96 |
| Disposals | -40 | 0 | 0 | -40 |
| Change in fair value | -136 | -5,432 | 0 | -5,567 |
| Carrying amount as of 31 December 2015 | 3,627 | 13,864 | 96 | 17,588 |
| Other non-current financial assets and investments | Available | Available | Other | |
|---|---|---|---|---|
| 2014/15 Q1-Q3 | for-sale | for-sale | non-current | |
| All amounts in TEUR | securities | investments | financial assets | Total |
| Carrying amount as of 31 March 2014 | 3,655 | 23,758 | 1,093 | 28,506 |
| Currency translation differences | 0 | 0 | 56 | 56 |
| Additions | 0 | 362 | 1,148 | 1,510 |
| Disposals | 0 | 0 | -2,296 | -2,296 |
| Change in fair value | 86 | -9,018 | 0 | -8,932 |
| Carrying amount as of 31 December 2014 | 3,741 | 15,102 | 0 | 18,843 |
| Other current financial assets | Available | ||
|---|---|---|---|
| 2015/16 Q1-Q3 | for-sale | Other current | |
| All amounts in TEUR | securities | financial assets | Total |
| Carrying amount as of 31 March 2015 | 5,291 | 0 | 5,291 |
| Currency translation differences | 0 | 0 | 0 |
| Additions | 0 | 0 | 0 |
| Disposals | -5,291 | 0 | -5,291 |
| Change in fair value | 0 | 0 | 0 |
| Carrying amount as of 31 December 2015 | 0 | 0 | 0 |
| Other current financial assets | Available | ||
|---|---|---|---|
| 2014/15 Q1-Q3 | for-sale | Other current | |
| All amounts in TEUR | securities | financial assets | Total |
| Carrying amount as of 31 March 2014 | 4,924 | 0 | 4,924 |
| Currency translation differences | 0 | 0 | 0 |
| Additions | 0 | 0 | 0 |
| Disposals | 0 | 0 | 0 |
| Change in fair value | 369 | 0 | 369 |
| Carrying amount as of 31 December 2014 | 5,293 | 0 | 5,293 |
As of 31 December 2015, available-for-sale securities relate to government and bank bonds as well as shares in investment funds. As of 31 December 2015, investments classified as available-for-sale mainly relate to a 19.48% investment in the listed company Q-Free ASA, Trondheim, Norway.
In the first three quarters 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).
As of 31 December 2014, other non-current financial assets mainly related to a loan from the group to Simex, Integración de Sistemas, S.A.P.I. de C.V., Mexico, which was repaid in full in the third quarter of fiscal year 2014/15.
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, Trondheim, 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 availablefor-sale securities, such as government and other 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:
| Level 3 | ||||
|---|---|---|---|---|
| Level 2 | Not based on | |||
| Level 1 | Observable | observable | 2015/16 | |
| All amounts in TEUR | Quoted prices | market data | market data | Q1-Q3 |
| Non-current financial assets | ||||
| Available-for-sale securities | 2,945 | 682 | 0 | 3,627 |
| Available-for-sale investments | 13,859 | 0 | 0 | 13,859 |
| 16,805 | 682 | 0 | 17,487 | |
| Current financial assets | ||||
| Available-for-sale securities | 0 | 0 | 0 | 0 |
| 0 | 0 | 0 | 0 | |
| Total | 16,805 | 682 | 0 | 17,487 |
As of 31 December 2015, other non-current financial assets amounting to TEUR 101 are recognized at amortized cost.
| Level 3 | ||||
|---|---|---|---|---|
| Level 2 | Not based on | |||
| Level 1 | Observable | observable | 2014/15 | |
| All amounts in TEUR | Quoted prices | market data | market data | Q1-Q3 |
| Non-current financial assets | ||||
| Available-for-sale securities | 3,013 | 728 | 0 | 3,741 |
| Available-for-sale investments | 15,097 | 0 | 0 | 15,097 |
| 18,110 | 728 | 0 | 18,838 | |
| Current financial assets | ||||
| Available-for-sale securities | 5,293 | 0 | 0 | 5,293 |
| 5,293 | 0 | 0 | 5,293 | |
| Total | 23,402 | 728 | 0 | 24,131 |
As of 31 December 2014, available-for-sale investments amounting to TEUR 5 are 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.
| All amounts in TEUR | 31 Dec. 2015 | 31 March 2015 | 31 Dec. 2014 | 31 March 2014 |
|---|---|---|---|---|
| Non-current financial liabilities | 72,634 | 88,985 | 94,032 | 109,494 |
| Current financial liabilities | 40,930 | 48,969 | 49,619 | 46,560 |
| Total | 113,563 | 137,954 | 143,651 | 156,054 |
Movements in borrowings are analyzed as follows:
| Non-current | Current | ||
|---|---|---|---|
| 2015/16 Q1-Q3 | financial | financial | |
| All amounts in TEUR | liabilities | liabilities | Total |
| Carrying amount as of 31 March 2015 | 88,985 | 48,969 | 137,954 |
| Additions | 483 | 2,573 | 3,056 |
| Repayments of borrowings | -16,834 | -10,141 | -26,975 |
| Reclassification | 0 | 0 | 0 |
| Currency translation differences | 0 | -472 | -472 |
| Carrying amount as of 31 December 2015 | 72,634 | 40,930 | 113,563 |
| Non-current | Current | ||
|---|---|---|---|
| 2014/15 Q1-Q3 | financial | financial | |
| All amounts in TEUR | liabilities | liabilities | Total |
| Carrying amount as of 31 March 2014 | 109,494 | 46,560 | 156,054 |
| Additions | 147 | 6,342 | 6,489 |
| Repayments of borrowings | -15,610 | -5,678 | -21,288 |
| Reclassification | 0 | 0 | 0 |
| Currency translation differences | 1 | 2,396 | 2,397 |
| Carrying amount as of 31 December 2014 | 94,032 | 49,619 | 143,651 |
On 28 April 2015, Kapsch TrafficCom made holders of the corporate bond a buyback offer at a rate of 105.75%, valid until 19 May 2015. This offer was utilized at a nominal value of TEUR 4,182. The purchased debt instruments were submitted to the Oesterreichische Kontrollbank (OeKB) for redemption on 22 May 2015, leaving the corporate bond with an outstanding volume of TEUR 70,818 with maturity on 3 November 2017.
The fair values and the gross cash flows (including interests) of current and non-current financial liabilities are as follows:
| All amounts in TEUR | 31 Dec. 2015 | 31 Dec. 2014 |
|---|---|---|
| Carrying amount | 113,563 | 143,651 |
| Fair value | 125,992 | 147,963 |
| Gross cash flows: | ||
| Up to 1 year | 44,162 | 50,448 |
| Between 1 and 3 years | 79,400 | 20,406 |
| Between 3 and 5 years | 0 | 78,488 |
| 123,562 | 149,341 |
| Level 2 | Level 3 | |||
|---|---|---|---|---|
| Level 1 | Observable | Not based on observ | ||
| All amounts in TEUR | Quoted prices | market data | able market data | 31 Dec. 2015 |
| Corporate bond | 73,828 | 0 | 0 | 73,828 |
| Other financial liabilities | 0 | 52,165 | 0 | 52,165 |
| Total | 73,828 | 52,165 | 0 | 125,992 |
| Level 2 | Level 3 | ||||
|---|---|---|---|---|---|
| Level 1 | Observable | Not based on observ | |||
| All amounts in TEUR | Quoted prices | market data | able market data | 31 Dec. 2014 | |
| Corporate bond | 78,488 | 0 | 0 | 78,488 | |
| Other financial liabilities | 0 | 69,475 | 0 | 69,475 | |
| Total | 78,488 | 69,475 | 0 | 147,963 |
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.
| All amounts in TEUR | 31 Dec. 2015 | 31 March 2015 | 31 Dec. 2014 | 31 March 2014 |
|---|---|---|---|---|
| Termination benefits | 9,490 | 9,690 | 8,578 | 8,790 |
| Retirement benefits | 15,201 | 15,520 | 13,197 | 13,363 |
| Total | 24,690 | 25,210 | 21,776 | 22,153 |
Termination benefits include legal and contractual entitlements to one-off payments to employees of the group which result from events such as dismissal by the employer, amicable termination of the employment, retirement or death of the employee. For termination benefits the group bears the risk of inflation due to compensation increases. The obligations from termination benefits mainly result from the Austrian entities of the group.
Liabilities for retirement benefits recognized at the balance sheet date relate to retirees only. All pension agreements are based on the final salary, are granted as fixed monthly pension payments and are not covered by external plan assets (funds). In addition, contributions are paid to an external pension fund for employees of the group. For retirement benefits the group bears the risk of longevity and inflation due to pension increases.
| All amounts in TEUR | 31 Dec. 2015 | 31 March 2015 | 31 Dec. 2014 | 31 March 2014 |
|---|---|---|---|---|
| Non-current provisions | 1,369 | 1,661 | 1,823 | 1,303 |
| Current provisions | 8,890 | 9,225 | 8,698 | 28,378 |
| Total | 10,259 | 10,886 | 10,521 | 29,680 |
| Addition re | |||||||
|---|---|---|---|---|---|---|---|
| sulting from | Currency | ||||||
| 2015/16 Q1-Q3 | company | translation | |||||
| All amounts in TEUR | 31 March 2015 | acquisition | Addition | Utilization | Disposal | differences | 31 Dec. 2015 |
| Obligations from anniversary bonuses | 1,189 | 0 | 20 | 0 | -63 | 0 | 1,146 |
| Other | 472 | 0 | 105 | -5 | -245 | -103 | 223 |
| Non-current provisions, total | 1,661 | 0 | 124 | -5 | -308 | -103 | 1,369 |
| Warranties | 1,611 | 711 | 5 | -1 | -162 | -42 | 2,123 |
| Losses from pending transactions and rework | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
| Legal fees, costs of litigation and contract risks | 402 | 0 | 2,964 | -30 | -79 | 33 | 3,290 |
| Costs of dismantling, removing and | |||||||
| restoring assets | 0 | 183 | 0 | 0 | -15 | -5 | 163 |
| Other | 7,211 | 0 | 732 | -3,243 | -1,270 | -121 | 3,308 |
| Current provisions, total | 9,225 | 894 | 3,701 | -3,274 | -1,526 | -135 | 8,890 |
| Total | 10,886 | 894 | 3,825 | -3,279 | -1,834 | -239 | 10,259 |
| Addition re | |||||||
|---|---|---|---|---|---|---|---|
| sulting from | Currency | ||||||
| 2014/15 Q1-Q3 | company | translation | |||||
| All amounts in TEUR | 31 March 2014 | acquisition | Addition | Utilization | Disposal | differences | 31 Dec. 2014 |
| Obligations from anniversary bonuses | 1,120 | 0 | 17 | 0 | -22 | 0 | 1,115 |
| Other | 183 | 0 | 497 | 0 | 0 | 28 | 708 |
| Non-current provisions, total | 1,303 | 0 | 515 | 0 | -22 | 28 | 1,823 |
| Warranties | 1,637 | 0 | 29 | -17 | -18 | -18 | 1,614 |
| Losses from pending transactions and rework | 16,201 | 0 | 0 | 0 | -16,124 | -74 | 3 |
| Legal fees, costs of litigation and contract risks | 4,071 | 0 | 0 | -2,621 | -167 | -38 | 1,244 |
| Other | 6,468 | 0 | 2,555 | -3,215 | -22 | 50 | 5,837 |
| Current provisions, total | 28,378 | 0 | 2,584 | -5,853 | -16,331 | -80 | 8,698 |
| Total | 29,680 | 0 | 3,099 | -5,853 | -16,353 | -52 | 10,521 |
Due to a change in circumstances as of 30 September 2014 a provision for losses from pending transactions and rework in the amount of TEUR 16,124 had to be reversed in the second quarter of fiscal year 2014/15.
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.
The disproportionate high tax rate in the third quarter of the fiscal year 2014/15 is due to the non-tax effective impairments (goodwill impairment and impairment Q-Free ASA).
| 2015/16 Q1-Q3 | Tax expense/ | ||
|---|---|---|---|
| All amounts in TEUR | Before taxes | income | After taxes |
| Fair value gains/losses on available-for-sale financial assets: | |||
| Unrealized gains/losses in the current period | -5,567 | 34 | -5,533 |
| Gains/losses recognized in the result for the period | -2,081 | 829 | -1,251 |
| Currency translation differences | 640 | 640 | |
| Currency translation differences from net investments | |||
| in foreign business | -469 | 117 | -352 |
| Fair value changes recognized in equity | -7,478 | 981 | -6,497 |
The unrealized gains/losses on available-for-sale financial assets recognized in the third quarter of the fiscal year 2015/16 amounting to TEUR -5.432 relate to fair value changes on the investment in Q-Free ASA, Norway. Due to the ongoing unfavorable development of the share price in the first three quarters of fiscal year 2015/16 these net losses, together with net gains that have been recognized through other comprehensive income in equity in the amount of TEUR 4,194 up to 31 March 2015, were recognized as impairment in the result for the period (TEUR -1,238; reclassification from other comprehensive income to the result of the period).
In the third quarter of the fiscal year 2015/16, gains/losses recognized in the profit for the period from availablefor-sale financial assets also include the sale of a mutual fund (ESPA Cash Asset-Backed). Net gains that have been recognized through other comprehensive income in equity up to 31 March 2015 amounting to TEUR 3,318 have been reclassified.
| 2014/15 Q1-Q3 | Tax expense/ | ||
|---|---|---|---|
| All amounts in TEUR | Before taxes | income | After taxes |
| Fair value gains/losses on available-for-sale financial assets: | |||
| Unrealized gains/losses in the current period | -2,224 | -114 | -2,337 |
| Gains/losses recognized in the result for the period | 12,185 | 0 | 12,185 |
| Currency translation differences | -7,228 | -7,228 | |
| Currency translation differences from net investments | |||
| in foreign business | 4,321 | -1,080 | 3,241 |
| Fair value changes recognized in equity | 7,054 | -1,194 | 5,860 |
The unrealized gains/losses on available-for-sale financial assets recognized in the third quarter of the fiscal year 2014/15 amounting to TEUR -2.679 relate to fair value changes on the investment in Q-Free ASA, Trondheim, Norway. In the first half of fiscal year 2014/15 these net losses, together with net losses that have been recognized through other comprehensive income in equity in the amount of TEUR 9,506 up to 31 March 2014, were recognized as impairment in the result for the period (TEUR 12,185; reclassification from other comprehensive income to the result of the period).
On 14 April 2015 the group acquired a controlling interest in Streetline, Inc., California. Streetline is a leading smart parking company that offers intelligent data and modern analytics to solve parking space problems for end users.
| All amounts in TEUR | |
|---|---|
| Consideration paid | 189 |
| Less fair value of net assets acquired (provisionally determined) | -189 |
| Goodwill | 0 |
Assets and liabilities resulting from the acquisition are shown as follows (provisionally determined):
| All amounts in TEUR | Fair value |
|---|---|
| Property, plant and equipment | 1,251 |
| Intangible assets | 46 |
| Receivables and other assets | 580 |
| Cash and cash equivalents | 2,732 |
| Provisions | -894 |
| Liabilities, other liabilities and deferred income | -3,504 |
| Net assets acquired | 210 |
| thereof controlling interest (90%) | 189 |
| thereof non-controlling interest (10%) | 21 |
The acquired company contributed revenue of TEUR 1,911 and a net loss of TEUR -2,882 to the group's result for the period from 14 April 2015 to 31 December 2015. If the acquisition had occurred on 1 April 2015, there would not have been a significant change in revenue or profit of the group.
The Kapsch TrafficCom Group's contingent liabilities primarily result from large-scale projects. Other commitments mainly relate to contract and warranty bonds, bank guarantees, performance and bid bonds as well as sureties.
Details of contingent liabilities and other commitments are as follows:
| All amounts in TEUR | 31 Dec. 2015 | 31 March 2015 |
|---|---|---|
| Contract, warranty, performance and bid bonds | ||
| North America (toll collection systems and traffic management) | 107,123 | 79,441 |
| South Africa (toll collection system) | 68,204 | 87,578 |
| Australia (toll collection systems) | 26,633 | 20,593 |
| Austria (toll collection system) | 8,500 | 8,500 |
| Poland (toll collection system) | 6,933 | 7,236 |
| Slovenia (tender) | 5,000 | 0 |
| Czech Republic (toll collection system) | 4,641 | 4,126 |
| Chile (toll collection systems) | 2,210 | 900 |
| Other | 913 | 915 |
| 230,156 | 209,288 | |
| Bank guarantees | 1,698 | 1,664 |
| Sureties | 22 | 61 |
| Total | 231,876 | 211,014 |
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:
| All amounts in TEUR | 2015/16 Q1-Q3 | 2014/15 Q1-Q3 |
|---|---|---|
| Affiliated companies outside the Kapsch TrafficCom Group | ||
| Revenues | 8,137 | 12,502 |
| Expenses | 21,236 | 19,539 |
| Other related parties | ||
| Revenues | 111 | 113 |
| Expenses | 79 | 111 |
| All amounts in TEUR | 31 Dec. 2015 | 31 Dec. 2014 |
| Affiliated companies outside the Kapsch TrafficCom Group | ||
| Trade receivables and other current assets | 1,889 | 2,800 |
| Trade payables and other liabilities | 7,814 | 10,679 |
| Liabilities from share purchase | 2,067 | 0 |
| Other related parties | ||
| Trade receivables and other current assets | 127 | 127 |
| Trade payables and other liabilities | 13,168 | 11,785 |
The members of the executive and supervisory boards have management functions or are members in supervisory boards of other companies of the Kapsch Group.
On 14 December 2015, Kapsch TrafficCom AG announced that an agreement was reached with Schneider Electric S.E. concerning an acquisition of its global transportation business. Schneider's transportation business, previously active under the brand Telvent Tráfico y Transporte, is a provider of integrated advanced traffic management software (ATMS) solutions for applications in cities, on highways and in tunnels as well as toll 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.
The acquisition is taking place based on a purchase price of EUR 35 million, free of cash and liabilities and subject to the existence of agreed conditions, which are currently being evaluated. The conclusion of the transaction is expected in the coming weeks.
Vienna, 24 February 2016
The Executive Board
Georg Kapsch Chief Executive Officer
André Laux Executive board member
Alexander Lewald 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 transportation systems (ITS) in the segments of toll collection, city access control and parking space management, traffic management, traffic monitoring, utility vehicle monitoring, electronic vehicle registration and V2X cooperative systems. The end-to-end solutions of Kapsch TrafficCom cover the entire value creation chain of its customers, from components and design to the installation and operation of systems, all from a single source. The core business comprises the development, installation and operation of electronic toll collection and traffic management systems. Reference projects in 44 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 is headquartered in Vienna, Austria, and has subsidiaries and representational offices in 33 countries. It has also been listed since 2007 on the Vienna Stock Exchange (KTCG) and earned revenues of EUR 456 million in the 2014/15 fiscal year with over 3,500 employees.
Kapsch TrafficCom AG | Am Europlatz 2 | 1120 Vienna | Austria | www.kapschtraffic.com Investor Relations | Marcus Handl | Phone +43 50 811 1120 | Fax +43 50 811 99 1120 | E-Mail [email protected] Public Relations | Ingrid Lawicka | Phone +43 50 811 1705 | Fax +43 50 811 99 1705 | E-Mail [email protected]
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