Interim / Quarterly Report • Nov 26, 2010
Interim / Quarterly Report
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always one step ahead
| Earnings Data | FY11-H1 | FY10-H1 | +/- % | FY10 | |||||
|---|---|---|---|---|---|---|---|---|---|
| Revenues | in million EUR | 146.5 | 79.4 | 85 % | 216.0 | ||||
| EBITDA | in million EUR | 24.0 | -0.6 | <-100 % | 32.0 | ||||
| EBITDA margin | in % | 16.4 | -0.8 | 14.8 | |||||
| EBIT | in million EUR | 18.2 | -4.5 | <-100 % | 24.5 | ||||
| EBIT margin | in % | 12.5 | -5.7 | 11.4 | |||||
| Profit before tax | in million EUR | 18.9 | 1.1 | >100 % | 43.9 | ||||
| Profit after tax | in million EUR | 14.6 | 2.2 | >100 % | 36.5 | ||||
| Earnings per share 1 | in EUR | 0.92 | 0.05 | >100 % | 2.64 | ||||
| Free cash flow 2 | in million EUR | -21.2 | 18.6 | <-100 % | 41.6 | ||||
| Capital expenditure 3 | in million EUR | 2.6 | 5.9 | -57 % | 4.8 | ||||
| Employees 4 | 1,541 | 967 | 59 % | 1,023 | |||||
| On-board units delivered | in million units | 1.50 | 1.46 | 3 % | 3.54 | ||||
| Business Segments | FY11-H1 | FY10-H1 | +/- % | FY10 | |||||
| Road Solution Projects (RSP): | |||||||||
| Revenues (percentage of Revenues) | in million EUR | 52.8 | (36.0%) | 10.7 | (13.4 %) | >100 % | 45.8 (21.2 %) | ||
| EBIT (EBIT margin) | in million EUR | 0.8 | (1.5 %) | -14.4 (<-100 %) | >100 % | -20.9 (-45.6 %) | |||
| Services, System Extensions, Components Sales (SEC): | |||||||||
| Revenues (percentage of Revenues) | in million EUR | 90.3 | (61.6%) | 65.1 | (82.0 %) | 39 % | 161.9 | (75.0 %) | |
| EBIT (EBIT margin) | in million EUR | 17.3 (19.1 %) | 9.9 | (15.2 %) | 75 % | 45.3 | (28.0 %) | ||
| Others (OTH): | |||||||||
| Revenues (percentage of Revenues) | in million EUR | 3.5 | (2.4%) | 3.7 | (4.6 %) | -6 % | 8.3 | (3.8 %) | |
| EBIT (EBIT margin) | in million EUR | 0.2 | (6.0 %) | -0.0 | (-1.3 %) | >100 % | 0.2 | (1.9 %) | |
| Regions | FY11-H1 | FY10-H1 | +/- % | FY10 | |||||
| Austria – Revenues (percentage of Revenues) | in million EUR | 16.0 | (11 %) | 15.2 | (19 %) | 6 % | 42.4 | (20 %) | |
| Europe (excl. Austria) – Revenues | |||||||||
| (percentage of Revenues) | in million EUR | 74.1 | (51 %) | 46.8 | (59 %) | 58 % | 117.1 | (54 %) | |
| Americas – Revenues (percentage of Revenues) | in million EUR | 3.4 | (2 %) | 4.3 | (5 %) | -22 % | 12.1 | (5 %) | |
| Rest of World – Revenues (percentage of Revenues) | in million EUR | 53.1 | (36 %) | 13.2 | (17 %) | > 100 % | 44.5 | (21 %) | |
| Balance Sheet Data | 30 September 2010 | 30 September 2009 | +/- % | 31 March 2010 | |||||
| Total assets | in million EUR | 318.2 | 267.7 | 19 % | 295.1 | ||||
| Total equity 5 | in million EUR | 175.3 | 130.0 | 35 % | 168.2 | ||||
| Equity ratio 5 | in % | 55.1 | 48.6 | 57.0 | |||||
| Net assets | in million EUR | 5.0 | 17.6 | -72 % | 35.3 | ||||
| Capital employed | in million EUR | 197.0 | 159.0 | 24 % | 187.5 | ||||
| Net working capital | in million EUR | 130.8 | 101.8 | 28 % | 104.6 | ||||
| Stock Exchange Data 6 | |||||||||
| Number of shares 6 | in million | 12.2 | Closing price 6 | in EUR | 39.06 | ||||
| Free float 6 | in % | 31.6 | Market capitalization 6 | in million EUR | 476.53 |
1 earnings per share relate to 12.2 million shares
2 operating cashflow minus capital expenditure from operations (excl. payments for acquisition of companies and purchases of securities and investments)
3 capital expenditure from operations (excl. payments for acquisition of companies and purchases of securities and investments)
4 as of end of period
5 incl. minority interests
6 as of 30 September 2010; for additional information on the share see page 5
7 average daily trading volume (double counting)
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.
Trading volume in FY11-H1 7 in shares 12,302 Share performance in FY11-H1 in % 54.63
Georg Kapsch, Chief Executive Officer
I am delighted to report about a successful first half of fiscal year 2010/11. We are looking back to a period full of events, especially since the end of the first quarter on 30 June 2010. In the meantime, we held our Annual General Meeting, we have been awarded contracts in South Africa and Poland and we submitted the final bid of our consortium in France. In addition, we successfully placed a corporate bond with private and institutional investors and signed a contract to acquire Mark IV IVHS in North America.
In the first half of fiscal year 2010/11 (1 April 2010 to 30 September 2010), the Kapsch TrafficCom Group generated revenues of EUR 146.5 million, an increase of 85 % compared with the same period of the previous fiscal year (FY11-H1: EUR 79.4 million). While EBIT was negative at EUR -4.5 million in the first half of 2009/10, it turned back clearly positive to EUR 18.2 million in the first half of the current fiscal year, representing an EBIT margin of 12.5%. In line with our expectations, the free cash flow was negative at EUR -21.2 million, mainly due to working capital requirements during the implementation of the continent's first large electronic toll ollection (ETC) system in South Africa.
By segment, the first half of the current fiscal year showed a continuing strong performance of the segment Services, System Extensions, Components Sales (SEC), which includes the recurring part of the business of the Kapsch TrafficCom Group. At EUR 90.3 million, revenues increased by 39 % compared with the same period of the previous fiscal year. At approximately 1.5 million units delivered in the first half of fiscal year 2010/11, our on-board units (OBUs) business remained strong. The EBIT of the segment SEC increased from EUR 9.9 million by 75 % to EUR 17.3 million, representing an EBIT margin of 19.1 % (FY10-H1: 15.2 %). The second large segment Road Solution Projects (RSP), which includes the project business, more than quintupled revenues from EUR 10.2 million in the first half of the previous fiscal year to EUR 52.8 million in the first half of the current fiscal year. We are particularly pleased that the EBIT of the segment RSP was positive at EUR 0.8 million in the first half of the current fiscal year after many quarters of, in part, clearly negative earnings. The improvement of the segment RSP was largely attributable to the progress of the project in South Africa.
With an equity ratio of 55.1 % as of 30 September 2010, the balance sheet remains strong despite the payment of a dividend of EUR 9.2 million. The dividend of EUR 0.75 per share represents a payout ratio of approximately 28 % on earnings per share of EUR 2.64 in fiscal year 2009/10. In the first half of the current fiscal year, earnings per share were at EUR 0.92 (FY10-H1: 0.05). We expect that the equity ratio will decrease in the third quarter after our successful placement of a 4.25 % corporate bond with a tenor of seven years and a volume of EUR 75 million (bullet repayment at maturity) on 3 November 2010.
In South Africa, our subsidiary TMT Services and Supplies (Proprietary) Limited has been awarded a contract by the City of Johannesburg to implement and subsequently operate an Automatic Fare Collections (AFC) system on their bus fleet worth ZAR 175 million (approximately EUR 17.5 million) only a few months after Kapsch TrafficCom AG indirectly subscribed for new shares in the company representing 51.43 % of the increased share capital, which was recently increased to 56.81 %.
In Poland, the consortium led by Kapsch TrafficCom was announced as best bidder and winner of the tender for a nationwide electronic truck tolling system on a road network of up to 7,600 kilometres at an evaluated offer price of PLN 4.9 billion (approximately EUR 1.23 billion) by the Directorate for National Roads and Highways (GDDKiA) at the beginning of October 2010. On 2 November 2010, the contract for the implementation and the operation of an electronic tolling system for an existing road network of initially about 1,750 kilometres worth approximately EUR 560 million was signed.
During the first half of the current fiscal year, we also succeeded in the United States, where we agreed to acquire the businesses of MARK IV IVHS, part of MARK IV, LLC (U.S.), in the United States, Canada and Mexico for a purchase price of USD 70 million (approximately EUR 50 million), subject to certain closing conditions and subject to certain potential price adjustments based on working capital included with the acquired businesses. The transaction is structured as a stock purchase of the holding companies which own the Mark IV IVHS businesses. In addition, we won Port of Hood River as the first road operator in the United States to deploy an electronic toll collection (ETC) system based on the advanced 5.9 GHz DSRC WAVE technology platform.
The project business remains in an exciting cycle: The nationwide electronic truck tolling system in France is close to being awarded for which our consortium submitted the final bid at the end of September. Several other projects – among these the nationwide systems in Hungary, Slovenia and Denmark – are close to the final decision for a tender.
With a view to the second half of fiscal year 2010/11, the remaining six months will be shaped by the realisation of the projects in South Africa and Poland, the participation in tenders and by project awards in France, Hungary, Slovenia and Denmark as well as the closing and the integration of Mark IV IVHS.
With all best wishes
Georg Kapsch Chief Executive Officer
The Kapsch TrafficCom share closed the second quarter of the current fiscal year 2010/11 on the Vienna Stock Exchange at a share price of EUR 39.06 on 30 September 2010, up approximately 34 % from the closing price on 30 June 2010 (EUR 29.25). With the beginning of the second quarter of the current fiscal year 2010/11, the price of the Kapsch TrafficCom share continuously increased up to EUR 39.55 (closing price on 24 September 2010) and closed the second quarter at a slightly lower price of EUR 39.06 on 30 September 2010. Since the beginning of the fiscal year 2010/11 on 1 April 2010 (the closing price on 31 March 2010 was at EUR 25.26), the price of the Kapsch TrafficCom share increased by approximately 55 %. With this development, the Kapsch TrafficCom share clearly outperformed the ATX Prime which even showed a slight decrease during the same period.
Based on a closing price of EUR 39.06 per share on 30 September 2010 and the number of outstanding shares unchanged at 12.2 million, Kapsch TrafficCom's market capitalization was approximately EUR 476.5 million. As of 30 September 2010, approximately 31.6 % of the shares were in free float, whereas the remaining approximately 68.4 % were continued to be held by KAPSCH-Group Beteiligungs GmbH.
Closing price of the Kapsch TrafficCom share and closing value of the ATX Prime on 31 March 2010, each indexed to 100.
| Information on the share | Financial calendar | ||
|---|---|---|---|
| Investor Relations Officer | Marcus Handl | 28 February 2011 | Interim financial report FY11-Q3 |
| Shareholders' Telephone | +43 (0)50811 1120 | 22 June 2011 | Results FY11 |
| [email protected] | 24 August 2011 | Ordinary Shareholders' Meeting for FY11 | |
| Website | www.kapschtraffic.com | 31 August 2011 | Deduction of dividends (ex-day) for FY11 |
| Stock Exchange | Vienna, Prime Market | 7 September 2011 | First day of payment for dividends for FY11 |
| ISIN / Trading Symbol | AT000KAPSCH9 / KTCG | ||
| Reuters / Bloomberg | KTCG.VI / KTCG AV |
Global traffic volumes are constantly growing, with India, Australia, New Zealand, South Africa, China and many Latin American countries showing the fastest growth. With its electronic and manual toll collection systems, intelligent transportation systems (ITS) solutions, and electronic access and parking management systems, Kapsch TrafficCom has already established a presence in all of these high-growth markets. Kapsch TrafficCom closely monitors developments in the requirements in these regions on an ongoing basis, so that it is in a position to supply technical solutions tailored to the specific needs of the markets at any time.
Despite an easing of the tense situation on the financial, commodity and energy markets as well as the slight economic recovery Kapsch TrafficCom and its customers continue to face a challenging market environment. The management believes that investments in infrastructure will be undertaken even in this challenging economic environment. Currently, there are major projects regarding the introduction or modernization of nationwide truck tolling systems in several European countries in preparation or bid phases.
Revenues of the Kapsch TrafficCom Group were at EUR 146.5 million in the first half of the current fiscal year 2010/11 (FY11-H1), an increase by 84.6 % from EUR 79.4 million recorded during the same period of the previous fiscal year (FY10-H1). Primarily in the segment Road Solution Projects (RSP), revenues could be increased significantly, but also the segment Services, System Extensions, Components Sales (SEC) with its recurring revenues developed positively.
Revenues by segment in the first six months were as follows:
In the first six months of the current fiscal year, the Kapsch TrafficCom Group generated an operating result (EBIT) of EUR 18.2 million (FY10-H1: minus EUR 4.5 million). Operating results (EBIT) by segment were as follows:
The Kapsch TrafficCom Group recorded a financial result of EUR 0.7 million in the period under consideration (FYJ10-H1: EUR 5.1 million), mainly as a result of currency exchange profits and losses as well as lower interest effects from long-term receivables. Finance costs were mainly affected by currency exchange losses.
With total assets of EUR 318.2 million as of 30 September 2010 (31 March 2010: EUR 295.1 million) and at a total equity of EUR 175.3 million, the Kapsch TrafficCom Group's equity ratio was at 55.1 % as of 30 September 2010 (31 March 2010: 57.0 %).
The major changes in assets were attributable to current assets. The decrease in the cash position was more than offset by the increase in trade receivables in connection with the project in South Africa. In non-current assets the increase mainly resulted from the change in consolidated entities. Other non-current financial assets and investments declined due to the share price of the Norwegian Q-Free ASA. The increase in other non-current assets derived from the partial realisation of the Traffic Management System in the Czech Republic.
On the liability side, both non-current and current liabilities increased. The main changes came from trade payables and deferred income tax liabilities.
The cash flow from operating activities amounted to minus EUR 18.7 million in the first six months of the current fiscal year compared to EUR 25.8 million in the same period of the previous fiscal year. This development resulted mainly from an increase in trade receivables and other current assets which could not be offset by the positive EBIT. The cash flow from investing activities was influenced by the acquisitions of TMT Services and Supplies (Pty) Ltd., Cape Town, and Kapsch Telematic Services Solutions A/S, Copenhagen. Furthermore, the cash situation was affected by the negative cash flow from financing activities due to, among others, the dividends paid to equity holders of the company.
Against this background, cash and cash equivalents decreased from EUR 47.7 million as of 31 March 2010 to EUR 19.2 million as of 30 September 2010.
In connection with the nationwide electronic truck tolling system in the Czech Republic, a payment guarantee in the amount of EUR 40 million issued by KAPSCH-Group Beteiligungs-GmbH is still in existence. Details of transactions with related parties are discussed under note 14 to the condensed consolidated interim financial information as of 30 September 2010.
On 1 April 2010, Kapsch Telematic Services GmbH, Vienna, acquired 60 % of the shares in PayVend F&P A/S, Copenhagen, Denmark, at a price of EUR 0.75 million. Subsequently, the company was renamed Kapsch Telematic Services Solutions A/S, Copenhagen, Denmark.
Kapsch TrafficCom AG, Vienna, through a subsidiary, acquired 51.43 % of the increased share capital of TMT Services and Supplies (Pty) Ltd., Cape Town, South Africa, as part of a capital increase on 8 April 2010. The consideration paid in connection with the capital increase amounted to a total of ZAR 75 million (approximately EUR 7.5 million). This investment was increased by an additional purchase of shares on 30 August 2010 to 56.81 %.
As an international group, Kapsch TrafficCom is exposed to general and industry specific risks such as high volatility of revenues from its project business as well as risks from project realisations. A risk management system has been established at the headquarters in order to identify any such risks at early stages.
In line with the internationalisation of the Kapsch TrafficCom Group, the significance of currency exchange risks increases constantly. A considerable portion of revenues and costs are denominated in the currency of the respective foreign companies, such as CZK, SEK and ZAR and not in Euros. Although the Kapsch TrafficCom Group aims to hedge the net currency position of the individual contracts as necessary, currency fluctuations may result in exchange rate losses that are reflected in the consolidated financial statements (transaction risk). In addition, risks arise from the conversion of financial statements of subsidiaries into the Group currency, the Euro (translation risk).
With a view to the second half of fiscal year 2010/11, the remaining six months will be shaped by the realisation of the projects in South Africa and Poland, the participation in tenders and by project awards in France, Hungary, Slovenia and Denmark as well as the closing and the integration of Mark IV IVHS.
On 2 November 2010, the contract for the implementation and operation of the electronic tolling system for the existing road network of initially about 1,750 kilometres worth approximately EUR 560 million was signed with the Directorate for National Roads and Highways (GDDKiA). The consortium led by Kapsch was announced as best bidder and winner of the tender with an evaluated offer price of PLN 4.9 billion (approximately EUR 1.2 billion) for a road network of up to 7,600 kilometres in the beginning of October.
On 3 November 2010, Kapsch TrafficCom AG successfully placed a 4.25% corporate bond with a tenor of seven years and a volume of EUR 75 million (bullet repayment at maturity). The bond was sold primarily to retail investors.
Kapsch TrafficCom AG agreed on 5 November 2010 (signing) to acquire the businesses of MARK IV IVHS, part of MARK IV, LLC (U.S.), in the United States, in Canada and in Mexico for a purchase price of USD 70 million (approximately EUR 50 million), subject to certain closing conditions and subject to certain potential price adjustments based on working capital included with the acquired businesses. The closing of the acquisition is expected to occur before the end of 2010.
Vienna, 26 November 2010
Management Board
Chief Executive Officer Chief Operating Officer Executive Board member
Georg Kapsch Erwin Toplak André Laux
We confirm 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 important events that have occurred during the first six months of the financial year and their impact on the condensed interim financial statements, of the principal risks and uncertainties for the remaining six months of the financial year and of the major related party transactions to be disclosed.
Vienna, 26 November 2010
Management Board
Georg Kapsch Erwin Toplak André Laux
Chief Executive Officer Chief Operating Officer Executive Board member
Kapsch TrafficCom Group –
Consolidated statement of comprehensive income.
| All amounts in TEUR | Note | FY11-Q2 | FY10-Q2 | FY11-H1 | FY10-H1 |
|---|---|---|---|---|---|
| Revenue | (4) | 80,258 | 44,964 | 146,543 | 79,399 |
| Other operating income | 1,173 | 316 | 2,058 | 575 | |
| Changes in finished and unfinished goods and work in progress | -960 | 1,296 | 1,238 | 3,700 | |
| Cost of materials and other production services | -32,306 | -21,847 | -63,494 | -38,282 | |
| Staff costs | -18,633 | -12,908 | -37,079 | -27,225 | |
| Amortization of intangible assets and depreciation of property, | |||||
| plant and equipment | -3,165 | -2,005 | -5,716 | -3,856 | |
| Other operating expenses | -12,965 | -8,788 | -25,301 | -18,814 | |
| Operating result | (4) | 13,401 | 1,027 | 18,249 | -4,502 |
| Finance income | 717 | 2,962 | 3,341 | 6,981 | |
| Finance costs | -1,003 | -1,154 | -2,650 | -1,921 | |
| Financial result | -286 | 1,808 | 691 | 5,060 | |
| Result from associates | 0 | 406 | 0 | 549 | |
| Profit before income taxes | 13,115 | 3,241 | 18,940 | 1,107 | |
| Income taxes | (10) | -3,001 | 466 | -4,343 | 1,068 |
| Profit for the period | 10,114 | 3,707 | 14,597 | 2,176 | |
| Other comprehensive income for the period | |||||
| Gains/losses recognized directly in equity: | |||||
| Available for sale financial assets | -813 | 1,140 | -3,355 | 794 | |
| Effects from disproportionate capital increase at associates | 0 | 79 | 0 | 79 | |
| Currency translation differences | 1,418 | 1,408 | 1,943 | 1,130 | |
| Income tax relating to components of other comprehensive income | -2 | -285 | -164 | -199 | |
| Other comprehensive income for the period net of tax | (11) | 603 | 2,342 | -1,577 | 1,805 |
| Total comprehensive income for the period | 10,717 | 6,049 | 13,021 | 3,980 | |
| Profit attributable to: | |||||
| Equity holders of the Company | 8,447 | 2,856 | 11,168 | 652 | |
| Minority interests | 1,666 | 851 | 3,429 | 1,524 | |
| 10,114 | 3,707 | 14,597 | 2,176 | ||
| Total comprehensive income attributable to: | |||||
| Equity holders of the Company | 8,780 | 4,748 | 9,296 | 2,229 | |
| Minority interests | 1,937 | 1,301 | 3,725 | 1,751 | |
| 10,717 | 6,049 | 13,021 | 3,980 | ||
| Earnings per share from the profit for the period attributable | |||||
| to the equity holders of the Company (in EUR) | 0.69 | 0.23 | 0.92 | 0.05 |
Earnings per share relate to 12.2 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 | Note | 30 September 2010 | 31 March 2010 |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Property, plant and equipment | (5) | 16,951 | 15,824 |
| Intangible assets | (5) | 35,207 | 28,529 |
| Other non-current financial assets and investments | 36,209 | 38,937 | |
| Other non-current assets | 11,718 | 8,481 | |
| Deferred tax assets | 12,405 | 9,650 | |
| 112,490 | 101,420 | ||
| Current assets | |||
| Inventories | 37,453 | 37,582 | |
| Trade receivables and other current assets | 141,620 | 101,448 | |
| Other current financial assets | 7,431 | 6,898 | |
| Cash and cash equivalents | 19,240 | 47,743 | |
| 205,745 | 193,671 | ||
| Total assets | 318,235 | 295,092 | |
| EQUITY | |||
| Capital and reserves attributable to equity holders of the Company | |||
| Share capital | (6) | 12,200 | 12,200 |
| Capital reserve | 70,077 | 70,077 | |
| Retained earnings and other reserves | 83,458 | 80,937 | |
| 165,736 | 163,214 | ||
| Minority interests | 9,565 | 5,035 | |
| Total equity | 175,301 | 168,249 | |
| LIABILITIES | |||
| Non-current liabilities | |||
| Non-current financial liabilities | (7) | 10,254 | 10,060 |
| Liabilities from post-employment benefits to employees | (8) | 14,241 | 14,316 |
| Non-current provisions | (9) | 564 | 583 |
| Other non-current liabilities | 11,290 | 9,353 | |
| Deferred income tax liabilities | 9,910 | 3,284 | |
| 46,260 | 37,596 | ||
| Current liabilities | |||
| Trade and other current payables | 55,721 | 41,332 | |
| Other liabilities and deferred income | 19,032 | 25,933 | |
| Current tax payables | 5,024 | 5,900 | |
| Current financial liabilities | (7) | 11,455 | 9,237 |
| Current provisions | (9) | 5,442 | 6,845 |
| 96,675 | 89,247 | ||
| Total liabilities | 142,935 | 126,843 | |
| Total equity and liabilities | 318,235 | 295,092 |
The notes on the following pages form an integral part of this condensed interim financial information.
| All amounts in TEUR | |||||
|---|---|---|---|---|---|
| Attributable to equity holders of the Company | Minority interests |
Total equity | |||
| Share capital | Capital reserve | Consolidated retained earnings and other reserves |
|||
| Carrying amount as of 31 March 2009 | 12,200 | 70,077 | 47,769 | 4,194 | 134,240 |
| Dividend for 2008/09 | -6,100 | -2,093 | -8,193 | ||
| Total comprehensive income | 2,229 | 1,751 | 3,980 | ||
| Carrying amount as of 30 Sept. 2009 | 12,200 | 70,077 | 43,898 | 3,852 | 130,028 |
| Carrying amount as of 31 March 2010 | 12,200 | 70,077 | 80,937 | 5,035 | 168,249 |
| Dividend for 2009/10 | -9,150 | -3,206 | -12,356 | ||
| Total comprehensive income | 9,296 | 3,725 | 13,021 | ||
| Effects from business combinations | 2,376 | 4,011 | 6,387 | ||
| Carrying amount as of 30 Sept. 2010 | 12,200 | 70,077 | 83,458 | 9,565 | 175,301 |
The notes on the following pages form an integral part of this condensed interim financial information.
| All amounts in TEUR | FY11-Q2 | FY10-Q2 | FY11-H1 | FY10-H1 |
|---|---|---|---|---|
| Cash flow from operating activities | ||||
| Operating result | 13,401 | 1,027 | 18,249 | -4,502 |
| Adjustments for non-cash items and other reconciliations: | ||||
| Depreciation and amortization | 3,165 | 2,005 | 5,716 | 3,856 |
| Increase/decrease in obligations for post-employment benefits | -41 | -108 | -75 | -217 |
| Increase/decrease in other non-current liabilities and provisions | -9 | 0 | -18 | 0 |
| Increase/decrease in trade receivables (non-current) | 368 | -4,049 | 1,937 | -3,703 |
| Increase/decrease in trade payables (non-current) | -2,047 | 4,897 | -3,237 | 8,394 |
| Other (net) | -1,051 | 2,816 | 19 | 7,150 |
| 13,787 | 6,588 | 22,591 | 10,976 | |
| Changes in net current assets: | ||||
| Increase/decrease in trade receivables and other assets | -32,174 | 682 | -38,239 | 38,227 |
| Increase/decrease in inventories | 6,759 | 1,619 | 129 | -4,244 |
| Increase/decrease in trade payables and other current payables | -7,158 | -4,926 | 2,067 | -15,791 |
| Increase/decrease in current provisions | -855 | -1,129 | -1,403 | -1,374 |
| -33,428 | -3,754 | -37,446 | 16,818 | |
| Cash flow from operations | -19,641 | 2,834 | -14,856 | 27,794 |
| Interest received | 222 | 83 | 408 | 263 |
| Interest payments | -543 | -627 | -960 | -1,252 |
| Net payments of income taxes | -4,802 | -2,585 | -3,281 | -974 |
| Net cash flow from operating activities | -24,764 | -295 | -18,689 | 25,831 |
| Cash flow from investing activities | ||||
| Purchases of property, plant and equipment | -1,274 | -852 | -2,402 | -1,551 |
| Purchases of non-current intangible assets | 1,631 | -815 | -155 | -4,335 |
| Payments for acquisition of companies (net of cash acquired) | 0 | 0 | -1,262 | 0 |
| Proceeds from the sale of shares in subsidiaries | 11 | 0 | 36 | 0 |
| Proceeds from disposal of property, plant and equipment | ||||
| and intangible assets | 20 | 2 | 31 | 1 |
| Net cash flow from investing activities | 389 | -1,666 | -3,753 | -5,886 |
| Cash flow from financing activities | ||||
| Dividends paid to equity holders of the company | -9,150 | -6,100 | -9,150 | -6,100 |
| Dividends paid to minority shareholders of group companies | -54 | -2,093 | -604 | -2,093 |
| Increase in other non-current financial liabilities | 0 | 0 | 266 | 0 |
| Decrease in other non-current financial liabilities | -72 | 0 | -72 | 0 |
| Increase in current financial liabilities | 2,493 | 411 | 2,538 | 415 |
| Decrease in current financial liabilities | -20 | -10,056 | -381 | -32,112 |
| Net cash flow from financing activities | -6,803 | -17,837 | -7,402 | -39,889 |
| Change in cash and cash equivalents | -31,178 | -19,797 | -29,844 | -19,944 |
| Cash and cash equivalents at beginning of period | 49,624 | 60,558 | 47,743 | 60,230 |
| Net decrease/increase in cash and cash equivalents | -31,178 | -19,797 | -29,844 | -19,944 |
| Exchange gains/losses on cash and cash equivalents | 794 | 1,273 | 1,341 | 1,748 |
The notes on the following pages form an integral part of this condensed 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:
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 KG. In this segment, Kapsch TrafficCom Group offers engineering solutions, electronic manufacturing and logistics services to affiliated entities and third parties.
This condensed interim financial information for the first half of the current fiscal year 2010/11 ended 30 September 2010 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 statements for the year ended 31 March 2010.
Except for new or amended IFRSs and IFRICs listed below the accounting policies adopted are consistent with those of the annual financial statements for the year ended 31 March 2010, as described in the annual financial statements for the year ended 31 March 2010.
In this condensed interim financial information report for the first half of the current fiscal year 2010/11 the following new or amended IFRSs and IFRICs have been adopted:
| Amended IFRSs | Mandatory for accounting periods beginning on or after |
|
|---|---|---|
| IFRS 3 (rev) | Business Combinations | 1 July 2009 |
| FY11-H1 All amounts in TEUR |
Road Solution Projects |
Services, System Extensions, Components Sales |
Others | Consolidated Group |
|---|---|---|---|---|
| Revenue | 52,817 | 90,272 | 3,454 | 146,543 |
| Operating result | 791 | 17,251 | 207 | 18,249 |
| FY10-H1 All amounts in TEUR |
Road Solution Projects |
Services, System Extensions, Components Sales |
Others | Consolidated Group |
|---|---|---|---|---|
| Revenue | 10,658 | 65,081 | 3,660 | 79,399 |
| Operating result | -14,363 | 9,909 | -48 | -4,502 |
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 attributed operating segment.
| FY11-H1 All amounts in TEUR |
Revenue | Road Solution Projects |
Services, System Extensions, Components Sales |
|---|---|---|---|
| Customer 1 | 57,864 | x | x |
| Customer 2 | 27,944 | x | x |
| Customer 3 | 12,764 | x |
| FY10-H1 All amounts in TEUR |
Revenue | Road Solution Projects |
Services, System Extensions, Components Sales |
|---|---|---|---|
| Customer 1 | 33,465 | x | x |
| Customer 2 | 0 | ||
| Customer 3 | 11,960 | x |
| All amounts in TEUR | Tangible and intangible assets |
|---|---|
| Carrying amount as of 31 March 2010 | 44,352 |
| Additions | 3,878 |
| Disposals | -19 |
| Change in consolidated entities | 9,617 |
| Depreciation, amortization, impairments and other movements | -5,770 |
| Currency translation differences | 101 |
| Carrying amount as of 30 September 2010 | 52,158 |
| Carrying amount as of 31 March 2009 | 42,976 |
| Additions | 5,887 |
| Disposals | -3 |
| Depreciation, amortization, impairments and other movements | -3,909 |
| Currency translation differences | -926 |
| Carrying amount as of 30 September 2009 | 44,024 |
The registered share capital of the company amounts to EUR 12,200,000. The share capital is fully paid in. The total number of ordinary shares is 12,200,000. The shares are ordinary bearer shares and have no par value.
| All amounts in TEUR | 30 September 2010 | 31 March 2010 | 30 September 2009 | 31 March 2009 |
|---|---|---|---|---|
| Non-current | 10,254 | 10,060 | 10,060 | 10,060 |
| Current | 11,455 | 9,237 | 18,889 | 49,210 |
| Total | 21,710 | 19,297 | 28,949 | 59,270 |
Movements in borrowings is analysed as follows:
| All amounts in TEUR | Non-current | Current | Total |
|---|---|---|---|
| Carrying amount as of 31 March 2010 | 10,060 | 9,237 | 19,297 |
| Additions | 266 | 2,538 | 2,804 |
| Repayments of borrowings | -72 | -381 | -453 |
| Currency translation differences | 0 | 62 | 62 |
| Carrying amount as of 30 September 2010 | 10,254 | 11,455 | 21,710 |
| All amounts in TEUR | Non-current | Current | Total |
|---|---|---|---|
| Carrying amount as of 31 March 2009 | 10,060 | 49,210 | 59,270 |
| Additions | 0 | 415 | 415 |
| Repayments of borrowings | 0 | -32,112 | -32,112 |
| Currency translation differences | 0 | 1,376 | 1,376 |
| Carrying amount as of 30 September 2009 | 10,060 | 18,889 | 28,949 |
| All amounts in TEUR | 30 September 2010 | 31 March 2010 | 30 September 2009 | 31 March 2009 |
|---|---|---|---|---|
| Severance payments | 5,575 | 5,561 | 5,158 | 5,294 |
| Pension benefits | 8,666 | 8,755 | 8,840 | 8,920 |
| Total | 14,241 | 14,316 | 13,998 | 14,214 |
The obligation to set up a provision for severance payments is based on the respective labor law.
Liabilities for pension benefits recognised at the balance sheet date relate to retirees only. All pension agreements are based on past service cost and are not covered by external plan assets (funds). In addition, contributions are paid to an external pension fund for employees of the Group.
| All amounts in TEUR | 30 September 2010 | 31 March 2010 | 30 September 2009 | 31 March 2009 |
|---|---|---|---|---|
| Non-current | 564 | 583 | 524 | 524 |
| Current | 5,442 | 6,845 | 9,249 | 10,623 |
| Total | 6,006 | 7,428 | 9,773 | 11,147 |
| FY11-H1 All amounts in TEUR |
31 March 2010 | Change in consolidated entities |
Utilization/ disposal |
Addition | Currency translation differences |
30 September 2010 |
|---|---|---|---|---|---|---|
| Obligations from anniversary bonuses | 583 | 0 | -20 | 1 | 0 | 564 |
| Non-current provisions, total | 583 | 0 | -20 | 1 | 0 | 564 |
| Warranties | 2,361 | 0 | -147 | 16 | 121 | 2,351 |
| Losses from pending transactions and rework |
710 | 0 | -686 | 0 | 0 | 24 |
| Legal fees, costs of litigation and contract risks |
891 | 0 | -24 | 0 | 25 | 892 |
| Other | 2,883 | 0 | -1,206 | 472 | 25 | 2,174 |
| Current provisions, total | 6,845 | 0 | -2,062 | 488 | 171 | 5,442 |
| Total | 7,428 | 0 | -2,082 | 489 | 171 | 6,006 |
| FY10-H1 All amounts in TEUR |
31 March 2009 | Change in consolidated entities |
Utilization/ disposal |
Addition | Currency translation differences |
30 September 2009 |
|---|---|---|---|---|---|---|
| Obligations from anniversary bonuses | 524 | 0 | -13 | 13 | 0 | 524 |
| Non-current provisions, total | 524 | 0 | -13 | 13 | 0 | 524 |
| Warranties | 1,820 | 0 | -309 | 0 | 54 | 1,565 |
| Losses from pending transactions and rework |
934 | 0 | -100 | 0 | 0 | 834 |
| Legal fees, costs of litigation and contract risks |
3,228 | 0 | -1,138 | 33 | 81 | 2,205 |
| Other | 4,640 | 0 | -3,767 | 3,629 | 142 | 4,645 |
| Current provisions, total | 10,623 | 0 | -5,314 | 3,663 | 277 | 9,249 |
| Total | 11,147 | 0 | -5,327 | 3,676 | 277 | 9,773 |
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.
After the first half of FY11 the effective tax rate is approximately 23 % (first half of FY10: 28 %). As a result of the low result before tax in the first half year of FY10, tax allowances and permanent differences have a disproportional effect on the effective tax rate of the period, resulting in disclosure of a tax income despite the positive result before taxes. For the full year FY11, management expects an effective tax rate of approximately 25 %.
| FY11-H1 All amounts in TEUR |
Before tax | Tax (charge) credit | After tax |
|---|---|---|---|
| Fair value gains/losses relating to available-for-sale financial assets: | |||
| Fair value gains/losses not realized in the current period | -3,355 | -164 | -3,520 |
| Currency translation differences | 1,943 | 0 | 1,943 |
| Fair value gains/losses recognized in equity | -1,412 | -164 | -1,577 |
The fair value gains/losses not realized relate for the most part to the investment in Q-Free ASA, Norway (TEUR -4,013).
| FY10-H1 All amounts in TEUR |
Before tax | Tax (charge) credit | After tax |
|---|---|---|---|
| Fair value gains/losses relating to available-for-sale financial assets: | |||
| Fair value gains/losses not realized in the current period | 794 | -199 | 596 |
| Effects from disproportionate capital increase at associates | 79 | 0 | 79 |
| Currency translation differences | 1,130 | 0 | 1,130 |
| Fair value gains/losses recognized in equity | 2,003 | -199 | 1,805 |
Kapsch TrafficCom AG, Vienna, through a purchased subsidiary, acquired 51.43 % of the increased share capital of TMT Services and Supplies (Pty) Ltd., Cape Town, South Africa, under a capital increase on 8 April 2010. The consideration for the capital increase amounted to a total of Rand 75 million. This investment was increased to 56.81% by an additional purchase of shares on 30 August 2010.
For the remaining 43.19 % of the shares a put-option, exercisable from 2012 to 2015 (with a potential extension to 2017), was granted to the minority shareholders. The strike price is based on the fair value of shares at the date of the exercise, whereby the maximum amount is limited by a cap. As a result of the structure of the put option, the minority interest continues to be recognised and no liability for the put option is accounted for.
| All amounts in TEUR | |
|---|---|
| Purchase price | 7,682 |
| Share of fair value of net assets acquired | 6,420 |
| Goodwill | 1,262 |
The assets and liabilities arising from the acquisition are as follows:
| All amounts in TEUR | Adjusted Fair Value 1) |
Acquiree's carrying amount |
|---|---|---|
| Intangible assets | 6,683 | 359 |
| Property, plant and equipment | 1,267 | 1,267 |
| Receivables and other assets | 4,577 | 4,591 |
| Cash and cash equivalents | 7,170 | 7,170 |
| Payables, other liabilities and accruals | -7,215 | -5,357 |
| Net assets acquired | 12,483 | 8,029 |
1) Adjustment compared to the fair values identified as of 30 June 2010
On 1 April 2010, Kapsch Telematic Services GmbH, Vienna, acquired 60 % of the shares in PayVend F&P A/S, Copenhagen, Denmark, at a price of EUR 0.75 million. Subsequently, the company was renamed Kapsch Telematic Services Solutions A/S, Copenhagen, Denmark.
| All amounts in TEUR | |
|---|---|
| Purchase price | 750 |
| Share of fair value of net assets acquired | 750 |
| Goodwill | 0 |
The assets and liabilities arising from the acquisition are as follows:
| All amounts in TEUR | Fair value | Acquiree's carrying amount |
|---|---|---|
| Intangible assets | 1,667 | 1,667 |
| Payables, other liabilities and accruals | -417 | -417 |
| Net assets acquired | 1,250 | 1,250 |
The Group's contingent liabilities primarily result from large scale projects.
Other commitments mainly relate to contract and warranty bonds, bank guarantees, performance und bid bonds, sureties and acceptance of guarantees for subsidiaries vis-á-vis third parties.
Details of contingent liabilities and other commitments are as follows:
| All amounts in TEUR | 30 September 2010 | 31 March 2010 |
|---|---|---|
| Contract, warranty, performance and bid bonds: | ||
| City Highway Santiago | 279 | 263 |
| City Highway Sydney and Melbourne | 2,459 | 2,881 |
| Truck tolling system Austria | 12,500 | 12,500 |
| Truck tolling system Czech Republic | 10,468 | 10,046 |
| Tolling projects in South Africa: Gauteng, Marian Hill, Huguenot | 135,079 | 117,084 |
| Tender tolling project Poland | 4,010 | 0 |
| Other | 593 | 1,069 |
| 165,389 | 143,844 | |
| Bank guarantees | 2,067 | 2,419 |
| Sureties | 33 | 30 |
| Total | 167,489 | 146,293 |
| All amounts in TEUR | Sales to related parties H1 |
Sales from related parties H1 |
Amounts owed by related parties 30 September |
Amounts owed to related parties 30 September |
|
|---|---|---|---|---|---|
| Affiliated companies outside the | FY11 | 744 | 7,450 | 4,009 | 1,156 |
| Kapsch TrafficCom Group | FY10 | 722 | 4,721 | 4,457 | 1,469 |
| FY11 | 0 | 1,623 | 0 | 11,848 | |
| Others | FY10 | 1 | 1,789 | 0 | 9,173 |
Additionally, in connection with the nationwide electronic truck tolling system in the Czech Republic, a payment guarantee in the amount of EUR 40 million issued by KAPSCH-Group Beteiligungs-GmbH is still in existence.
Members of the executive and supervisory boards have management functions or are member in supervisory boards of other companies of the Kapsch Group.
On 2 November 2010, the contract for the implementation and operation of the electronic tolling system for the existing road network of initially about 1,750 kilometres worth approximately EUR 560 million was signed with the Directorate for National Roads and Highways (GDDKiA). The consortium led by Kapsch was announced as best bidder and winner of the tender with an evaluated offer price of PLN 4.9 billion (approximately EUR 1.2 billion) for a road network of up to 7,600 kilometres in the beginning of October.
On 3 November 2010, Kapsch TrafficCom AG successfully placed a 4.25 % corporate bond with a tenor of seven years and a volume of EUR 75 million (bullet repayment at maturity). The bond was sold primarily to retail investors.
Kapsch TrafficCom AG agreed on 5 November 2010 (signing) to acquire the businesses of MARK IV IVHS, part of MARK IV, LLC (U.S.), in the United States, in Canada and in Mexico for a purchase price of USD 70 million (approximately EUR 50 million), subject to certain closing conditions and subject to certain potential price adjustments based on working capital included with the acquired businesses. The closing of the acquisition is expected to occur before the end of 2010.
Vienna, 26 November 2010
Management Board
Georg Kapsch Erwin Toplak André Laux Chief Executive Officer Chief Operating Officer Executive Board member
Kapsch TrafficCom is an international supplier of superior intelligent transportation systems (ITS). Its principle business is the development and supply of electronic toll collection (ETC) systems, in particular for the multi-lane free-flow (MLFF) of the traffic, and the technical and commercial operation of such systems. Kapsch TrafficCom also supplies traffic management systems, with a focus on road safety and traffic control, and electronic access systems and parking management. With approximately 240 references in 39 countries on all 5 continents, and with more than 18 million on-board units (OBUs) delivered and nearly 13,000 lanes equipped, Kapsch TrafficCom has positioned itself among the leading suppliers of ETC systems worldwide. Kapsch TrafficCom is headquartered in Vienna, Austria, and has subsidiaries and representative offices in 25 countries.
Kapsch TrafficCom AG | Am Europlatz 2 | 1120 Vienna | Austria | www.kapschtraffic.com Investor Relations | Marcus Handl | Phone +43 50811 1120 | Fax +43 50811 99 1120 | E-mail [email protected] Public Relations | Brigitte Herdlicka | Phone +43 50811 1710 | Fax +43 50811 99 1710 | E-mail [email protected]
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