Interim / Quarterly Report • Nov 18, 2008
Interim / Quarterly Report
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| Operating Figures (cumulative) | FY09-Q2 | FY08-Q2 | +/- % | FY08 | ||
|---|---|---|---|---|---|---|
| Revenues | in million EUR | 108.5 | 68.8 | 58 % | 185.7 | |
| EBITDA | in million EUR | 20.3 | 9.6 | >100 % | 39.0 | |
| EBITDA margin | in % | 18.7 | 13.9 | 21.0 | ||
| EBIT | in million EUR | 18.3 | 6.7 | >100 % | 34.9 | |
| EBIT margin | in % | 16.9 | 9.8 | 18.8 | ||
| Profi t before tax | in million EUR | 22.7 | 8.6 | >100 % | 42.8 | |
| Profi t after tax | in million EUR | 17.2 | 6.3 | >100 % | 32.1 | |
| Earnings per share | in EUR | 1.29 | 0.47 | >100 % | 2.60 | |
| Free cash fl ow 1 | in million EUR | 31.1 | -21.3 | -14.8 | ||
| Capital expenditure 2 | in million EUR | 7.2 | 2.0 | >100 % | 4.0 | |
| Employees as of 30 September 2008 | 898 | 781 | 15 % | 824 | ||
| Revenues by Segment | FY09-Q2 | FY08-Q2 | +/- % | FY08 | ||
| Road Solution Projects | in million EUR | 40.2 | 13.2 | >100 % | 47.0 | |
| Services, System Extensions, Components Sales | in million EUR | 64.2 | 50.4 | 27 % | 128.8 | |
| Others | in million EUR | 4.2 | 5.2 | -20 % | 10.0 | |
| Revenues by Region | FY09-Q2 | FY08-Q2 | +/- % | FY08 | ||
| Central & Eastern Europe (incl. Austria) | in million EUR | 79.8 | 44.5 | 79 % | 124.2 | |
| Western Europe | in million EUR | 10.7 | 6.7 | 60 % | 17.6 | |
| America | in million EUR | 5.6 | 9.7 | -43 % | 18.8 | |
| Rest of World | in million EUR | 12.4 | 7.9 | 58 % | 25.2 | |
| Balance Sheet Data | 30 Sep 2008 | +/- % | 31. March 2008 | |||
| Total assets | in million EUR | 340.5 | 14 % | 298.4 | ||
| Total equity 3 | in million EUR | 138.3 | 4 % | 133.4 | ||
| Equity ratio | in % | 40.6 | 44.7 | |||
| Net assets 4 | in million EUR | 34.6 | 22 % | 28.4 | ||
| Capital employed | in million EUR | 189.6 | 18 % | 161.3 | ||
| Capital Market Data 5 | ||||||
| Offer price per share on 26 June 2007 | in EUR | 32.0 | Closing price as of 30 June 2008 | in EUR | 29.7 | |
| Number of shares as of 30 Sep 2008 | in million | 12.2 | Closing price as of 30 Sep 2008 | in EUR | 23.3 |
1 operating cash fl ow minus capital expenditure from operations (excl. acquisitions and securities)
2 capital expenditure from operations (excl. acquisitions and securities)
3 incl. minority interests
FY09-Q2 FY08-Q2
4 excl. long-term securities
5 for additional capital market data see page 5
RSP – Road Solution Projects
SEC – Services, System Extensions, Components Sales OTH – Others
Georg Kapsch, Chief Executive Offi cer
even against the background of the currently diffi cult situation on the international fi nancial markets, I am delighted to report about a successful fi rst half of the current fi scal year 2008/09, in which we continued the controlled growth of the business and the extension of our strong position in several markets. As it can be seen from this report, the Kapsch Traffi cCom Group recorded double-digit growth rates in revenues and triple-digit growth rates in earnings despite the tense situation on the fi nancial, commodity and energy markets. We also succeeded to generate a clear positive free cash fl ow and to advance our cash position. With this strengthening of the fi nancial power we regard ourselves as well prepared for further growth in the future and even in a probably more challenging economic environment.
Revenues were at EUR 108.5 million in the fi rst half of the current fi scal year, up 58 % compared to the same period of the previous fi scal year (EUR 68.8 million). EBIT increased by 173 % to EUR 18.3 million (fi rst half of previous fi scal year: EUR 6.7 million) and profi t before tax by 164 % to EUR 22.7 million (previous fi scal year: EUR 8.6 million). We thereby signifi cantly enhanced our profi tability in the fi rst six months compared to the same period of the previous fi scal year with the EBIT margin improving from 9.8 % to 16.9 %. We are also delighted to report that earnings per share increased by 174 % to EUR 1.29 (previous fi scal year: 0.47 %).
The Kapsch Traffi cCom Group also clearly advanced the free cash fl ow by EUR 52.4 million to EUR 31.1 million compared to EUR -21.3 million in the same period of the previous fi scal year.
Considerable increase in revenues and disproportionate increase in earnings
Clear positive free cash fl ow and advanced cash position
In the fi rst six months of the current fi scal year, cash and cash equivalents increased to EUR 77.5 million, as of 30 September 2008 (31 March 2008: EUR 47.4 million), even though we distributed dividends of EUR approximately EUR 11.0 million and invested EUR 10.8 million in the acquisition of the "Mobility Solutions" business of TechnoCom Corporation in the U.S. This improves our position in a diffi cult situation of the international fi nancial markets.
Both of our large segments – SEC (Services, System Extensions, Components Sales) and RSP (Road Solution Projects) – signifi cantly contributed to these positive developments. The performance of the SEC segment has remained strong in the fi rst six months and in line with the strategy to increase recurring revenues as presented during our IPO, with a 27 % increase in revenues to EUR 64.2 million (previous year: EUR 50.4 million) and a 78 % increase in EBIT to EUR 14.0 million (previous fi scal year: EUR 7.9 million). Developments in the RSP (Road Solution Projects) segment were particularly positive due to a high activity level in projects: revenues increased to EUR 40.2 million (previous fi scal year: EUR 13.2 million) and almost reached the level of the entire previous fi scal year (2007/08: EUR 47.0 million) at a signifi cantly improved EBIT of EUR 4.9 million (previous fi scal year: EUR -0.8 million).
A very pleasant addition was made to our reference list: among others, Thailand decided for a fi rst electronic tolling system with a contract volume of approximately EUR 8.5 million. In Italy, Kapsch-Busi S.p.A. achieved a fi rst-time success only a few months after the establishment of the joint venture with Busi Impianti S.p.A., and took an order for a city access control project at a contract volume of EUR 0.8 million.
The business with on-board units (OBUs) continued at a high level: among others, Kapsch Traffi cCom won orders of 500.000 OBUs in Australia and 30.000 OBUs in Ireland. The total volume of OBUs delivered in the fi rst half of the current fi scal year increased by 55 % to almost 1.4 million units compared with nearly 0.9 million units in the fi rst half of the previous fi scal year.
We take an optimistic view on the Company´s markets even in a changed economic environment. Even if the growth rates above average in the fi rst half year can presumably not be continued at the same level for the rest of the year, we take a positive view on the development of Kapsch Traffi cCom in the second half of the fi scal year.
With all best wishes
Chief Executive Offi cer Georg Kapsch
Improvements in both large segments
Addition to our reference list
Business with on-board units (OBUs) continued at a high level
Positive outlook
Certain statements contained in this report constitute "forward-looking statements." These statements, which contain the words "believe", "intend", "expect" and words of similar meaning, refl ect 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.
Developments on the international capital markets in the fi rst half of the current fi scal year 2008/09 and particularly in the second quarter were negatively infl uenced by the fi nancial crisis and the cyclical downturn of the economy. The Kapsch Traffi cCom share was also affected by the signifi cant downturn of the Vienna Stock Exchange. The share closed the fi rst half of the current fi scal year 2008/09 at a share price of EUR 23.3 on 30 September 2008, down 21.5 % from the closing price at the end of the previous quarter (30 June 2008: EUR 29.7). During the same period, the ATX Prime decreased by 31.7 %. Since the initial public offering on 26 June 2007, our share price declined by 27.2 %, as of 30 September 2008, whereas the ATX Prime decreased by 48.1 %.
Based on a closing price of EUR 23.3 per share on 30 September 2008 and the number of outstanding shares unchanged at 12.2 million, Kapsch Traffi cCom's market capitalization was EUR 283.7 million as of September 30, 2008. As of 30 September 2008, approximately 31.6 % of the shares were in free fl oat, whereas the remaining approximately 68.4 % were held by KAPSCH-Group Beteiligungs GmbH.
The fi rst ordinary shareholders' meeting on 10 July 2008 resolved to distribute a dividend of EUR 0.90 per share, representing a payout ratio of almost 35% for the previous fi scal year 2007/08. The dividend in an aggregate amount of approximately EUR 11.0 million was paid out to our shareholders on 24 July 2008.
1 Offer price on 26 June 2007 and closing value for ATX Prime on 25 June 2007, each indexed to 100.
| Information on the share | Financial calendar | |||||
|---|---|---|---|---|---|---|
| Investor Relations Offi cer | Marcus Handl | 25 February 2009 | Interim fi nancial report FY09-Q3 | |||
| ir.kapschtraffi [email protected] | 18 June 2009 | Results FY09 | ||||
| Stock exchange | Vienna, Prime Market | 10 July 2009 | Ordinary shareholders' meeting | |||
| ISIN | AT000KAPSCH9 | 17 July 2009 | Deduction of dividends (ex-day) | |||
| Trading Symbol | KTCG | 24 July 2009 | First day of payment for dividends | |||
| Reuters / Bloomberg | KTCG.VI / KTCG AV |
Global traffi c volumes are constantly growing, with Australia, India, New Zealand, South Africa, China and many Latin American countries showing the fastest growth. With its electronic and manual toll collection systems, road traffi c telematics solutions, and electronic access and parking management systems, Kapsch Traffi cCom has already established a presence in all of these high-growth markets. Kapsch Traffi cCom 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 specifi c needs of the market at any time.
Kapsch Traffi cCom and its customers are challenged by the current situation on the fi nancial, commodity and energy markets, the deceleration of the economic cycle and the fi rst indications of the consequences resulting from the fi nancial market crisis on the real economy. The management of the Company is convinced that investment in infrastructure will be made even in this challenging economic environment.
This condensed interim fi nancial report for the fi rst half of the current fi scal year 2008/09 ended 30 September 2008 has been prepared in accordance with the same accounting and valuation policies as the consolidated annual fi nancial statements for the year ended 31 March 2008 (fi scal year 2007/08) and as described therein.
Revenues of Kapsch Traffi cCom Group in the fi rst half of the current fi scal year 2008/09 amounted to EUR 108.5 million, up 58 % from EUR 68.8 million recorded in the same period of the previous fi scal year. This increase in revenues was in line with optimistic expectations.
In the fi rst half of the current fi scal year the Services, System Extensions, Components Sales (SEC) segment recorded a signifi cant increase in revenues. At EUR 64.2 million, segment revenues for the fi rst six months were up 27 % compared to the same period of the previous fi scal year (EUR 50.4 million). The successful technical and commercial operation of the nationwide electronic truck tolling system in the Czech Republic and the signifi cant increase in sales of on-board units (OBUs) in Australia, Spain, Ireland, Denmark, Turkey and Austria signifi cantly contributed to the segment's encouraging performance. The Road Solution Projects (RSP) segment also showed a positive development in revenues with an increase by EUR 33.1 million compared with the same period of the previous fi scal year to EUR 40.2 million. The share of the RSP segment in total revenues nearly doubled from 19 % in the fi rst six months of the previous fi scal year to 37 % during the fi rst half of the current fi scal year. This segment also accounted for the delivery of the interface for a future satellite-based toll collection system on 1st class, 2nd class and 3rd class roads as well as the supply of the interface for telematics applications and the implementation of a traffi c regulation system for the D1 motorway route to the Czech Republic. The Others (OTH) segment's revenues declined from EUR 5.2 million to EUR 4.2 million (down 20 %).
In the fi rst six months of the current fi scal year, Kapsch Traffi cCom Group reported an operating result (EBIT) up 173 % from EUR 6.7 million to EUR 18.3 million. This increase is also refl ected in the enhanced profi tability with the EBIT margin improving from 9.8 % to 16.9 %. Operating results (EBIT) by segment were as follows:
Total assets of EUR 340.5 million as of 30 September 2008 were up 14 % from EUR 298.4 million as of 31 March 2008. The increase in assets was particularly due to an increase in intangible assets and other non-current assets whereas the increase in equity and liabilities was attributable to an increase in current fi nancial liabilities as well as trade and other current payables. At 40.6%, the Company's equity ratio was almost at the same level as of 31 March 2008. The cash fl ow from operating activities increased from EUR -19.3 million in the fi rst six months of the previous fi scal year to EUR 38.3 million in the fi rst half of the current fi scal year. Besides the increased operating result (EBIT), a decreased level of trade receivables as well as increased trade payables positively contributed to this development. The cash fl ow used in investing activities was at EUR -20.9 million in the fi rst six months of the current fi scal year compared with EUR -31.4 million in the fi rst half of the previous fi scal year and resulted in particular from payments for acquisitions of companies and asset deals. Within the cash fl ow used in fi nancing activities an increase in current fi nancial liabilities compensated the dividends distributed to shareholders (approximately EUR 11.0 million) and therewith contributed EUR 12.5 million to the increased cash fl ow compared with EUR 59.2 million due to the initial public offering during the same period of the previous fi scal year. At EUR 77.5 million as of 30 September 2008, cash and cash equivalents increased by EUR 30.1 million compared to 31 March 2008 (EUR 47.4 million). The second instalment of 25 % from phase I of the implementation of the nationwide electronic truck tolling system in the Czech Republic (commenced operation on 1 January 2007) in the amount of EUR 35.3 million was received in line with the payment plan. Net working capital decreased from EUR 131.4 million as of 31 March 2008 to EUR 94.1 million as of 30 September 2008.
In connection with the nationwide electronic truck tolling system in the Czech Republic, KAPSCH-Group Beteiligungs-GmbH issued a payment guarantee in the amount of EUR 40 million. The payment guarantee of EUR 9 million issued by Kapsch CarrierCom AG was returned. Details of business with related parties are discussed under note 15 to the condensed consolidated interim fi nancial information as of 30 September 2008.
In May 2008, Kapsch-Busi S.p.A. with its seat in Bologna, was established as a joint venture to focus on the Italian traffi c telematics market in the urban area. In July 2008, Kapsch Traffi cCom AG acquired through its subsidiary Kapsch Traffi cCom Inc., California, 100 % of the "Mobility Solutions" business unit of TechnoCom Corporation, a corporation organized under the laws of the State of Delaware.
As an international group, Kapsch Traffi cCom is exposed to general and industry specifi c risks. A risk management system has been established at the headquarters in order to identify any such risks at early stages.
Currency exchange risks are hedged by forward exchange contracts, if necessary. The weakness of the USD played only a minor role so far, as Kapsch Traffi cCom invoices in EUR, SEK or local currencies. A translation risk exists due to the conversion of fi nancial statements of subsidiaries into EURO.
Kapsch Traffi cCom frequently provides to customers, suppliers and creditors guarantees and warranties, mainly in the form of performance guarantees.
The management takes an optimistic view on the Company´s markets even in a changed economic environment. Even if the growth rates above average in the fi rst half year can presumably not be continued at the same level for the rest of the year, the management takes a positive view on the development of Kapsch Traffi cCom in the second half of the fi scal year.
On 7 October 2008, Kapsch Traffi cCom AG established its fully-owned subsidiary Kapsch Traffi cCom d.o.o., Ljubljana, Slovenia.
We confi rm, to the best of our knowledge and belief, that according to the principles of proper interim group reporting applied, the condensed consolidated interim report prepared in accordance with the relevant accounting standards gives a true and fair view of the Group's assets and liabilities, its fi nancial position and results of operations pursuant to the requirements stipulated in the Austrian Stock Exchange Act, that the half-year management report for the Group presents the course of business including the results and position of the Group in such a way that a true and fair view pursuant to the requirements stipulated in the Austrian Stock Exchange Act is given and that the material risks and uncertainties regarding the Group's prospective development in the remainder of the fi nancial year are described.
The condensed consolidated interim report has neither been audited nor been reviewed by an auditor.
Vienna, 18 November 2008
Georg Kapsch, CEO Erwin Toplak, COO
| All amounts in TEUR | Note | FY09-Q2 | FY08-Q2 | FY09-Q2 cum. | FY08-Q2 cum. |
|---|---|---|---|---|---|
| REVENUE | (4) | 48,060 | 34,956 | 108,482 | 68,799 |
| Other operating income | 201 | 208 | 796 | 694 | |
| Changes in fi nished and unfi nished goods and work in progress |
12,280 | 5,582 | 13,005 | 10,932 | |
| Cost of material and other production services | -30,636 | -20,305 | -58,998 | -38,160 | |
| Staff costs | -12,458 | -10,298 | -25,607 | -21,478 | |
| Amortisation of intangible assets and depreciation of property, plant and equipment |
-1,034 | -1,021 | -1,952 | -1,946 | |
| Other operating expenses | -9,335 | -6,338 | -17,388 | -12,111 | |
| Operating result | (4,10) | 7,077 | 2,784 | 18,338 | 6,730 |
| Finance income | 2,396 | 2,112 | 8,170 | 4,156 | |
| Finance costs | -2,255 | -386 | -3,845 | -2,253 | |
| Financial result | 141 | 1,727 | 4,325 | 1,903 | |
| Result from associates | 0 | 101 | 0 | -31 | |
| Profi t before tax | 7,218 | 4,611 | 22,663 | 8,602 | |
| Income taxes | (11) | -1,161 | -1,207 | -5,421 | -2,308 |
| Profi t after tax for the period | 6,056 | 3,405 | 17,243 | 6,294 | |
| Attributable to: | |||||
| Equity holders of the Company | 5,426 | 2,929 | 15,752 | 5,680 | |
| Minority interest | 630 | 475 | 1,490 | 614 | |
| 6,056 | 3,405 | 17,243 | 6,294 | ||
| Earnings per share for profi t attributable to the equity holders of the company (expressed in EUR per share) |
(12) | 0.44 | 0.24 | 1.29 | 0.47 |
Earnings per share related to 12,2 million shares.
| All amounts in TEUR | Note | 30 Sep 2008 | 31 March 2008 |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Property, plant and equipment | (5) | 9,458 | 6,192 |
| Intangible assets | (5) | 24,938 | 8,593 |
| Shares in associates | 0 | 0 | |
| Other fi nancial assets | 3,714 | 3,405 | |
| Other non-current assets | 68,396 | 55,005 | |
| Deferred tax assets | 4,951 | 7,280 | |
| 111,457 | 80,475 | ||
| Current assets | |||
| Inventories | 27,766 | 25,734 | |
| Trade receivables and other assets | 115,291 | 135,837 | |
| Other current fi nancial assets | 8,402 | 8,895 | |
| Cash and cash equivalents | 77,535 | 47,429 | |
| 228,993 | 217,895 | ||
| TOTAL ASSETS | 340,450 | 298,371 | |
| EQUITY AND LIABILITIES | |||
| Equity | |||
| Share capital | (6) | 12,200 | 12,200 |
| Capital reserve | 70,077 | 70,077 | |
| Currency translation differences | -790 | 220 | |
| Fair value valuation reserve | -1,367 | -971 | |
| Consolidated retained earnings and other reserves | 54,500 | 49,728 | |
| 134,620 | 131,254 | ||
| Minority interests | 3,643 | 2,123 | |
| Total equity | 138,263 | 133,377 | |
| Non-current liabilities | |||
| Non-current fi nancial liabilities | (7) | 7,713 | 10,581 |
| Liabilities from post-employment benefi ts to employees | (8) | 13,949 | 14,089 |
| Non-current provisions | (9) | 533 | 1,694 |
| Other non-current liabilities | 27,543 | 26,150 | |
| Deferred tax liability | 2,069 | 2,055 | |
| 51,807 | 54,568 | ||
| Current liabilities | |||
| Trade and other current payables | 57,328 | 39,050 | |
| Other liabilities and deferred income | 27,024 | 29,486 | |
| Current tax payables | 6,002 | 6,259 | |
| Current fi nancial liabilities | (7) | 43,727 | 17,382 |
| Current provisions | (9) | 16,299 | 18,250 |
| 150,380 | 110,426 | ||
| Total liabilities | 202,187 | 164,994 | |
| TOTAL EQUITY AND LIABILITIES | 340,450 | 298,371 |
| All amounts in TEUR | |||||||
|---|---|---|---|---|---|---|---|
| Attributable to equity holders of the Company | Total Equity | ||||||
| Share capital | Capital reserve | Currency translation differences |
Fair Value valuation reserve |
Consolidated retained earnings & other reserves |
|||
| Carrying amount at 1 April 2008 | 12,200 | 70,077 | 220 | -971 | 49,728 | 2,123 | 133,377 |
| Currency translation differences | -1,010 | 30 | -980 | ||||
| Fair value gains/losses realised (net of tax) |
-396 | -396 | |||||
| Net income/expenses recognised directly in equity |
-1,010 | -396 | 30 | -1,376 | |||
| Dividend for 2007/08 | -10,980 | -10,980 | |||||
| Profi t for the year | 15,752 | 1,490 | 17,243 | ||||
| Carrying amount at 30 September 2008 |
12,200 | 70,077 | -790 | -1,367 | 54,500 | 3,643 | 138,263 |
| Carrying amount at 1 April 2007 | 10,000 | 5,325 | 914 | -114 | 29,130 | 340 | 45,595 |
| Currency translation differences | -137 | 23 | -114 | ||||
| Fair value gains/losses realised (net of tax) |
-231 | -231 | |||||
| Net income/expenses recognised directly in equity |
-137 | -231 | 23 | -345 | |||
| Capital increase from initial public offering |
2,200 | 2,200 | |||||
| Premium from initial public offering less expenses relating to the initial public offering |
65,379 | 65,379 | |||||
| Dividend for 2005/06 | -10,000 | 0 | -10,000 | ||||
| Profi t for the year | 5,680 | 614 | 6,294 | ||||
| Carrying amount at 30 September 2007 |
12,200 | 70,705 | 778 | -345 | 24,810 | 977 | 109,124 |
| All amounts in TEUR | FY09-Q2 | FY08-Q2 | FY09-Q2 cum. | FY08-Q2 cum. |
|---|---|---|---|---|
| Cash fl ow from operating activities | ||||
| Operating result | 7,077 | 2,784 | 18,338 | 6,730 |
| Adjustments for non-cash items and other reconciliations: | ||||
| Depreciation and amortisation | 1,034 | 1,021 | 1,952 | 1,946 |
| Increase/decrease in obligations for post-employment benefi ts | -109 | -139 | -140 | -218 |
| Change in other non-current liabilities and provisions | -1,143 | -52 | -1,160 | -51 |
| Increase/decrease in non-current trade receivables | -14,199 | 20,620 | -12,748 | 20,110 |
| Increase/decrease in non-current trade payables | 303 | 2,189 | 1,394 | 1,920 |
| Other (net) | -1,488 | 45 | 2,267 | 47 |
| -8,525 | 26,468 | 9,903 | 30,483 | |
| Changes in net current assets: | ||||
| Increase/decrease in trade receivables and other assets | 54,633 | -34,621 | 20,547 | -27,488 |
| Increase/decrease in inventories | -5,874 | -8,173 | -2,032 | -13,492 |
| Increase/decrease in trade payables and other current payables | 9,941 | 5,234 | 15,777 | -3,389 |
| Increase/decrease in current provisions | -5,013 | -68 | -1,951 | -2,944 |
| 53,687 | -37,628 | 32,341 | -47,314 | |
| Cash generated from operations: | 45,161 | -11,160 | 42,244 | -16,830 |
| Interest received | 896 | 451 | 1,282 | 607 |
| Interest payments | -986 | -1,138 | -1,924 | -1,952 |
| Net payments of income taxes | 123 | -1,203 | -3,335 | -1,153 |
| Net cash fl ow from operating activities | 45,194 | -13,050 | 38,268 | -19,329 |
| Cash fl ow used in investing activities | ||||
| Purchases of property, plant and equipment | -4,208 | -473 | -5,002 | -1,855 |
| Purchases of non-current intangible assets | -1,837 | -83 | -5,365 | -145 |
| Purchases of securities and shares | -343 | -30,000 | -343 | -30,000 |
| Payments for acquisition of companies (less cash and cash equivalents of | ||||
| these companies) and for asset deals | -10,775 | -36 | -10,775 | -36 |
| Proceeds from sale of shares in consolidated companies | 0 | 0 | 0 | 54 |
| Proceeds from disposal of property, plant and equipment and intangible | ||||
| assets Net cash fl ow used in investing activities |
502 | 96 | 571 | 553 |
| -16,661 | -30,497 | -20,914 | -31,428 | |
| Cash fl ow used in fi nancing activities | ||||
| Contribution from shareholders | 0 | -555 | 0 | 67,579 |
| Dividends paid to shareholders | -10,980 | 0 | -10,980 | -7,000 |
| Increase/decrease in other non-current fi nancial liabilities | -18,620 | 1,712 | -2,869 | 5,740 |
| Increase/decrease in current fi nancial liabilities | 19,748 | 1,393 | 26,384 | -7,091 |
| Net cash fl ow used in fi nancing activities | -9,853 | 2,550 | 12,536 | 59,228 |
| Net decrease/increase in cash and cash equivalents | 18,681 | -40,997 | 29,890 | 8,472 |
| Change in cash and cash equivalents | ||||
| Cash and cash equivalents at beginning of period | 58,654 | 69,872 | 47,429 | 20,183 |
| Net decrease/increase in cash and cash equivalents | ||||
| Exchange gains/losses on cash and cash equivalents | 18,681 200 |
-40,997 -224 |
29,890 216 |
8,472 -4 |
| Cash and cash equivalents at end of period | 77,535 | 28,651 | 77,535 | 28,651 |
The Kapsch Traffi cCom Group operates mainly in the road traffi c telematics market. It holds shares in several domestic and foreign companies. The parent company is headquartered in Vienna.
For fi nancial reporting purposes the business activities of the Kapsch Traffi cCom Group are subdivided into the following 3 segments:
The Road Solution Projects segment relates to the installation of road traffi c telematics solutions.
The Services, System Extensions, Components Sales segment relates to the sale of services (maintenance as well as technical and commercial operation) and components in the area of traffi c telematics solutions.
The Others segment represents the non-core-business. In this segment engineering solutions, electronic manufacturing and logistics services are offered to affi liated entities and third parties, including audio solutions equipment and systems for the Austrian E-Card.
This condensed interim fi nancial information for the fi rst half of the current fi scal year 2008/09 ended 30 September 2008 has been prepared in accordance with IAS 34, "Interim fi nancial reporting". The interim condensed fi nancial report should be read in conjunction with the annual fi nancial statements for the year ended 31 March 2008.
The accounting policies adopted are consistent with those of the annual fi nancial statements for the year ended 31 March 2008, as described in the annual fi nancial statements for the year ended 31 March 2008.
All amounts in TEUR
| FY09-Q2 | RSP | SEC | OTH | Consolidated Group |
|---|---|---|---|---|
| Revenues | 40,177 | 64,154 | 4,152 | 108,482 |
| Operating result | 4,932 | 14,045 | -639 | 18,338 |
| FY08-Q2 | RSP | SEC | OTH | Consolidated Group |
| Revenues | 13,223 | 50,398 | 5,178 | 68,799 |
| Operating result | -823 | 7,892 | -338 | 6,730 |
| All amounts in TEUR | Tangible and intangible assets |
|---|---|
| Opening net book amount as of 1 April 2008 | 14,785 |
| Additions | 20,974 |
| Change in consolidated entities | 480 |
| Disposals | -571 |
| Depreciation, amortisation, impairment and other movements | -1,240 |
| Currency translation differences | -32 |
| Closing net book amount as of 30 September 2008 | 34,397 |
| Opening net book amount as of 1 April 2007 | 15,417 |
| Additions | 2,182 |
| Change in consolidated entities | 6 |
| Disposals | -553 |
| Depreciation, amortisation, impairment and other movements | -1,757 |
| Currency translation differences | -271 |
| Closing net book amount as of 30 September 2007 | 15,024 |
The registered share capital of the Company amounts to EUR 12,200,000. The share capital is fully paid in. The total authorized number of ordinary shares is 12,200,000. The shares are ordinary bearer shares and have no par value.
The Company issued 2,200,000 new shares at an issue price of EUR 32 per share in the initial public offering in June 2007.
| All amounts in TEUR | 30 Sep 2008 | 31 March 2008 | 30 Sep 2007 | 31 March 2007 |
|---|---|---|---|---|
| Non-current | 7,713 | 10,581 | 16,262 | 10,523 |
| Current | 43,727 | 17,382 | 15,033 | 22,124 |
| Total | 51,440 | 27,963 | 31,295 | 32,646 |
Movements in borrowings is analysed as follows:
| Opening amount as of 1 April 2008 | 27,963 |
|---|---|
| Additions | 44,217 |
| Repayments of borrowings | -21,252 |
| Currency translation | 512 |
| Closing amount as of 30 September 2008 | 51,440 |
| Opening amount as of 1 April 2007 | 32,646 |
| Additions | 9,593 |
| Repayments of borrowings | -10,944 |
| Currency translation | 0 |
| Closing amount as of 30 September 2007 | 31,295 |
| All amounts in TEUR | 30 Sep 2008 | 31 March 2008 | 30 Sep 2007 | 31 March 2007 |
|---|---|---|---|---|
| Severance payments | 4,940 | 5,001 | 5,162 | 5,305 |
| Pension benefi ts | 9,009 | 9,088 | 9,172 | 9,247 |
| Total | 13,949 | 14,089 | 14,334 | 14,552 |
The obligation to set up a provision for severance payments is based on the respective labor law.
Liabilities for pension 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 external pension fund for employees of the Group.
| 30 Sep 2008 | 31 March 2008 | 30 Sep 2007 | 31 March 2007 |
|---|---|---|---|
| 533 | 1,694 | 1,634 | 1,684 |
| 16,299 | 18,250 | 12,517 | 15,462 |
| 16,832 | 19,943 | 14,151 | 17,146 |
| FY09-Q2 | ||||||
|---|---|---|---|---|---|---|
| All amounts in TEUR | 1 April 2008 | Change in consolidated entities |
Use/disposal | Additions | Exchange rate differences |
30 Sep 2008 |
| Obligations from anniversary bonuses | 464 | 0 | -19 | 0 | 0 | 445 |
| Costs of dismantling and removing | ||||||
| assets | 1,130 | 0 | -1,130 | 0 | 0 | 0 |
| Other | 99 | 0 | 0 | 0 | -11 | 88 |
| Non-current provisions, total | 1,694 | 0 | -1,150 | 0 | -11 | 533 |
| Warranties | 4,128 | 0 | -811 | 0 | -75 | 3,242 |
| Losses from pending transactions and | ||||||
| repairs | 910 | 0 | -364 | 0 | 0 | 545 |
| Legal fees, costs of litigation and | ||||||
| contract risks | 6,888 | 0 | -4,357 | 2,260 | 165 | 4,956 |
| Other | 6,324 | 0 | -2,507 | 3,703 | 36 | 7,555 |
| Current provisions, total | 18,250 | 0 | -8,040 | 5,963 | 126 | 16,299 |
| Total | 19,943 | 0 | -9,189 | 5,963 | 115 | 16,832 |
| All amounts in TEUR | 1 April 2007 | Change in consolidated entities |
Use/disposal | Additions | Exchange rate differences |
30 Sep 2007 |
|---|---|---|---|---|---|---|
| Obligations from anniversary bonuses | 457 | 7 | -21 | 9 | 0 | 452 |
| Costs of dismantling and removing | ||||||
| assets | 1,227 | 0 | -46 | 0 | 0 | 1,181 |
| Non-current provisions, total | 1,684 | 7 | -66 | 9 | 0 | 1,634 |
| Warranties | 4,165 | 0 | 0 | 0 | 30 | 4,194 |
| Losses from pending transactions and | ||||||
| repairs | 881 | 0 | 0 | 142 | 0 | 1,023 |
| Legal fees, costs of litigation and | ||||||
| contract risks | 2,881 | 0 | -1,607 | 2,406 | 41 | 3,721 |
| Other | 7,535 | 0 | -5,553 | 1,585 | 12 | 3,579 |
| Current provisions, total | 15,462 | 0 | -7,160 | 4,134 | 82 | 12,517 |
| Total | 17,146 | 7 | -7,227 | 4,142 | 82 | 14,151 |
The income statement for the fi rst half year of FY08 included one-off costs resulting from the IPO in the amount of TEUR 912. There were no comparable costs in the fi rst half year of FY09.
Income tax expense is recognised on management's best estimate of the weighted average annual income tax rate expected for the full fi nancial year. The estimated tax rate for the fi rst half year FY09 used is 28 % (the estimated tax rate for the fi rst half year FY08 was 28 %).
Earnings per share attributable to equity holders of the company arises from continuing and discontinued operations as follows:
| All amounts in TEUR | FY09-Q2 cum. | FY08-Q2 cum. |
|---|---|---|
| Earnings per share for profi t from continuing operations attributable to the equity holders of the company (expressed in EUR per share) |
1.29 | 0.47 |
Earnings per share is related to 12.2 millon shares.
Kapsch Traffi cCom AG and the Italian Busi Impianti Group announced their cooperation on 15 May 2008. The two companies have established Kapsch-Busi S.p.A., with its seat in Bologna, as a joint venture to focus on the Italian traffi c telematics market in the urban area. Busi Impianti has outsourced the respective business unit, including a group of about 10 employees, Kapsch Traffi cCom has complemented the team by own personnel.
The assets and liabilities arising from the aquisition:
| All amounts in TEUR | |
|---|---|
| Purchase price: | |
| paid in cash | 80 |
| fair value of the liability resulting from put-option | 3,214 |
| 3,294 | |
| Fair value of net assets acquired (on a provisional basis) | 120 |
| Goodwill | 3,174 |
The assets and liabilities arising from the acquisition:
| All amounts in TEUR | Fair value (on a provisional basis) |
|---|---|
| Intangible assets | 327 |
| Property, plant and equipment | 4 |
| Receivables and other assets | 459 |
| Cash and cash equivalents | 90 |
| Payables, other liabilites and accruals | -760 |
| Net assets acquired | 120 |
The fair value of the net assets acquired was determined on a provisional basis. In the course of the acquisition of the controlling interest, put/call options over the remaining non-controlling interest were entered into between the group and the seller. The put option was disclosed at its fair value under liabilities.
As of 4 July 2008, Kapsch Traffi cCom AG acquired through its subsidiary Kapsch Traffi cCom Inc, 100% of the Mobility Solutions business unit of TechnoCom Corporation, a corporation organized under the laws of the State of Delaware and with its primary place of business in Encino, California.
| All amounts in TEUR | |
|---|---|
| Purchase price: | |
| paid in cash | 10,775 |
| contingent considerations | 2,319 |
| 13,094 | |
| Fair value of net assets acquired (on a provisional basis) | 597 |
| Goodwill | 12,496 |
The assets and liabilities arising from the acquisition:
| All amounts in TEUR | Fair value (on a provisional basis) |
|---|---|
| Intangible assets | 101 |
| Property, plant and equipment | 48 |
| Receivables and other assets | 542 |
| Cash and cash equivalents | 0 |
| Payables, other liabilites and accruals | -94 |
| Net assets acquired | 597 |
The fair value of the net assets acquired was determined on a provisional basis. The purchase price is determined according to IFRS 3 and consists of a fi xed cash component amounting to EUR 10.8 million and contingent considerations totalling EUR 2.3 million which contain payments contingent on realisation of milestones in certain projects and expected sales. Both components were measured at their fair value (present value) and disclosed under liabilities. The third contingent element was not considered in determining total acquisition costs as it is contingent on future tax amortization benefi ts which cannot be measured reliably.
The Group's contingent liabilities primarily result from major projects. Other commitments mainly relate to contract and warranty bonds, bank guarantees, performance und bid bonds, sureties and acceptance of guarantees for subsidiaries vis-à-vis third parties.
Details of contingent liabilities and other commitments are as follows:
| All amounts in TEUR | 30 Sep 2008 | 31 March 2008 |
|---|---|---|
| Contract and warranty bonds | ||
| City highway Santiago | 825 | 860 |
| City highway Sydney and Melbourne | 2,281 | 2,377 |
| 3,106 | 3,237 | |
| Performance, bid and other bonds | ||
| Truck tolling system Austria | 12,500 | 12,500 |
| Truck tolling system Czech Republic | 60,734 | 48,899 |
| Tolling system New Zealand | 2,015 | 2,101 |
| Other | 5,226 | 4,306 |
| 80,475 | 67,806 | |
| Bank guarantees | 3,618 | 3,290 |
| Sureties | 28 | 25 |
| 3,646 | 3,315 | |
| Total | 87,227 | 74,359 |
| All amounts in TEUR | Sales to related parties Q2 (cum.) |
Sales from related parties Q2 (cum.) |
Amounts owed by related parties 30 Sep |
Amounts owed to related parties 30 Sep |
|
|---|---|---|---|---|---|
| Affi liated companies outside the Kapsch Traffi cCom Group |
FY09 | 694 | 5,837 | 574 | 1,154 |
| FY08 | 1,694 | 4,759 | 2,532 | 10,128 | |
| Others | FY09 | 27 | 757 | 0 | 10,397 |
| FY08 | 24 | 667 | 0 | 9,423 |
Additionally, the related party KAPSCH-Group Beteiligungs GmbH, Vienna, issued a payment guarantee in the amount of EUR 40 million, in relation to the nationwide electronic truck tolling system in the Czech Republic.
Members of the executive and supervisory boards have management functions or are member in supervisory boards of other companies of the Kapsch Group.
On 7 October 2008, Kapsch Traffi cCom AG established its fully-owned subsidiary Kapsch Traffi cCom d.o.o., Ljubljana, Slovenia.
Vienna, 18 November 2008
Board of Management
Georg Kapsch, CEO Erwin Toplak, COO
Kapsch Traffi cCom is an international supplier of innovative road traffi c telematics solutions. Its principle business is the development and supply of electronic toll collection (ETC) systems, in particular for the multi-lane free-fl ow (MLFF) of the traffi c, and the technical and commercial operation of such systems. Kapsch Traffi cCom also supplies traffi c management systems, with a focus on road safety and traffi c control, and electronic access systems and parking management. With more than 210 references in 33 countries in Europe, Australia, Latin America, in the Middle-East, in the Asian/Pacifi c region and in South Africa, and with almost 13 million delivered on-board units (OBUs) and nearly 11,300 equipped lanes, Kapsch Traffi cCom has positioned itself among the leading suppliers of ETC systems worldwide. Kapsch Traffi cCom is headquartered in Vienna, Austria, and has subsidiaries and representative offi ces in 22 countries.
Kapsch Traffi cCom AG I Wagenseilgasse 1 I A-1120 Vienna, Austria I www.kapschtraffi c.com Investor Relations I Marcus Handl I Phone: +43 (0)50811 1122 I Fax: +43 (0)50811 99 1120 I E-Mail: ir.kapschtraffi [email protected] Public Relations I Brigitte Herdlicka I Phone: +43 (0)50811 1705 I Fax: +43 (0)50811 99 2705 I E-Mail: [email protected]
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