Earnings Release • Nov 19, 2015
Earnings Release
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2014/15 (fiscal year 2014/15): 1 April 2014–31 March 2015 2015/16 H1 (first half of fiscal year 2015/16): 1 April–30 September 2015 2015/16 Q2 (second quarter of fiscal year 2015/16): 1 July–30 September 2015
(in million EUR)
The free cash flow of EUR 30.3 million demonstrates the continued financial strength.
EUR 2.9 million was at a low level after EUR 4.0 million in the previous year.
At EUR -19.1 million, the net debt reached the lowest value in three years. Total assets (in million EUR) and equity ratio (in %)
The total assets declined by 7%, while the equity ratio increased to 44.4%.
All figures presented in million EUR unless otherwise stated
| Earnings Data | 2015/16 H1 | 2014/15 H1 | +/- | 2015/16 Q2 | 2014/15 Q2 | +/- | 2014/15 | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenues | 245.0 | 237.4 | 3% | 127.8 | 119.5 | 7% | 456.4 | |||||
| EBITDA | 35.7 | 38.0 | -6% | 18.8 | 33.3 | -43% | 61.5 | |||||
| EBITDA margin (in %) | 14.6 | 16.0 | 14.7 | 27.9 | 13.5 | |||||||
| EBIT | 27.4 | 17.6 | 56% | 14.6 | 16.9 | -14% | 32.7 | |||||
| EBIT margin (in %) | 11.2 | 7.4 | 11.4 | 14.2 | 7.2 | |||||||
| Profit before tax | 24.8 | 9.5 | 161% | 9.7 | 6.8 | 43% | 19.9 | |||||
| Profit for the period | 19.2 | 0.9 | >500% | 7.8 | 0.6 | >500% | 11.4 | |||||
| Profit for the period attributable | ||||||||||||
| to equity holders | 16.7 | -3.5 | — | 6.9 | -2.8 | — | 3.6 | |||||
| Earnings per share 1 (in EUR) | 1.28 | -0.27 | — | 0.53 | -0.21 | — | 0.28 | |||||
| Free cash flow 2 | 30.3 | 25.5 | 19% | 15.6 | -7.4 | — | 68.2 | |||||
| Capital expenditure 3 | 2.9 | 4.0 | -26% | 1.4 | 2.9 | -53% | 8.4 | |||||
| Employees 4 | 3,447 | 3,533 | -2% | 3,447 | 3,533 | -2% | 3,545 | |||||
| On-board units delivered (in million units) | 4.60 | 3.25 | 42% | 2.27 | 1.68 | 35% | 7.42 | |||||
| Business Segments | 2015/16 H1 | 2014/15 H1 | +/- | 2015/16 Q2 | 2014/15 Q2 | +/- | 2014/15 | |||||
| Road Solution Projects (RSP) | ||||||||||||
| Revenues (share in revenues) | 38.2 | (15.6%) | 37.9 | (16.0%) | 1% | 23.3 | (18.2%) | 13.5 | (11.3%) | 73% | 60.2 | (13.2%) |
| EBIT (EBIT margin) | -9.2 (-23.9%) | -23.7 (-62.6%) | 61% | -2.0 | (-8.6%) | -11.3 (-83.7%) | 82% | -50.7 (-84.4%) | ||||
| Services, System Extensions, | ||||||||||||
| Components Sales (SEC) | ||||||||||||
| Revenues (share in revenues) | 194.2 | (79.3%) | 187.2 | (78.8%) | 4% | 97.7 | (76.4%) | 100.2 | (83.9%) | -2% | 372.6 | (81.6%) |
| EBIT (EBIT margin) | 35.6 | (18.3%) | 40.2 | (21.5%) | -12% | 16.1 | (16.5%) | 27.3 | (27.2%) | -41% | 82.2 | (22.1%) |
| Others (OTH) | ||||||||||||
| Revenues (share in revenues) | 12.5 | (5.1%) | 12.3 | (5.2%) | 2% | 6.8 | (5.3%) | 5.7 | (4.8%) | 19% | 23.6 | (5.2%) |
| EBIT (EBIT margin) | 1.0 | (8.0%) | 1.0 | (8.4%) | -4% | 0.5 | (7.9%) | 0.9 | (16.4%) | -43% | 1.3 | (5.4%) |
| Regions | 2015/16 H1 | 2014/15 H1 | +/- | 2015/16 Q2 | 2014/15 Q2 | +/- | 2014/15 | |||||
| Austria 5 | 18.8 | (8%) | 18.0 | (8%) | 5% | 9.8 | (8%) | 9.3 | (8%) | 6% | 38.2 | (8%) |
| Europe 5 | 128.3 | (52%) | 125.7 | (53%) | 2% | 68.9 | (54%) | 63.3 | (53%) | 9% | 234.0 | (51%) |
| Americas 5 | 52.4 | (21%) | 43.0 | (18%) | 22% | 26.3 | (21%) | 19.7 | (17%) | 33% | 92.6 | (20%) |
| Rest of World5 | 45.4 | (19%) | 50.7 | (21%) | -10% | 22.8 | (18%) | 27.2 | (23%) | -16% | 91.6 | (20%) |
| Balance Sheet Data | 30 Sep. 2015 | 30 Sep. 2014 | +/- | 31 March 2015 | ||||||||
| Total assets | 491.9 | 526.6 | -7% | 515.6 | ||||||||
| Total equity 6 | 218.6 | 214.8 | 2% | 219.4 | ||||||||
| Equity ratio6 (in %) |
44.4 | 40.8 | 42.5 | |||||||||
| Net debt | -19.1 | -75.9 | 75% | -35.9 | ||||||||
| Capital employed | 340.0 | 361.5 | -6% | 357.3 | ||||||||
| Net working capital | 202.4 | 204.7 | -1% | 209.9 | ||||||||
| Stock Exchange Data | 2015/16 H1 | 2015/16 Q1 | +/- | 2014/15 | ||||||||
| Number of shares 7 (in million) | 13.0 | 13.0 | 0% | 13.0 | ||||||||
| Free float 7 (in %) | 36.7 | 36.9 | 36.9 | |||||||||
| Ø daily trading volume 8 (in shares) | 23,832 | 23,917 | 0% | 27,574 | ||||||||
| Closing price 7 (in EUR) | 29.29 | 22.20 | 32% | 23.85 | ||||||||
| Market capitalization 7 | 380.77 | 288.54 | 32% | 309.99 | ||||||||
| Share performance (in %) | 22.8 | -6.9 | -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 H1 and Q2 as of 30 September; 2014/15 as of 31 March 2015
5 Revenues (share on total revenues in %); Europe excl. Austria
6 Incl. non-controlling interests
7 H1 as of 30 September 2015, Q1 as of 30 June 2015;
for additional information on the share see page 6 8 Average daily trading volume (double counting)
Kapsch TrafficCom
4
In the first half of the 2015/16 fiscal year, the Kapsch TrafficCom Group achieved a great deal both operationally and strategically. The Program 2020, or more precisely the project "Top Fit" for increasing earning power and adapting our strategy, represented significant steps toward strengthening our earning basis and preparing for future growth. The project successes in recent months reflect our strategy, and the interim results show that the project "Top Fit" is also already a success.
Projects and markets. Even as we continued working on existing installation projects, we were also able to obtain important new projects during the reporting period. One particularly pleasing development is the award for the cross-border tender of the program "CHARM", which we received in August from the road authority of the Netherlands and in October from the corresponding agency in England. For both countries, we will deliver and install an advanced traffic management system of the newest generation. This will enable the integration of existing infrastructure as well as future applications and technologies. With this system, the Kapsch TrafficCom Group attains a globally recognized position in traffic management systems (TMS) just as we already have in the area of electronic toll collection (ETC).
In Belarus, we also received an order in August for an expansion of the existing nationwide toll system. In Chile, Kapsch TrafficCom obtained multiple orders in the first half of the year, and one of the new toll sections on the famous Panamericana will also be equipped with an intelligent transportation system (ITS).
After commissioning an access system in the Italian city of Prato in July, we received an order at the end of October for a traffic management system in the Czech capital city Prague. Both systems reflect the demand for city solutions and confirm our strategy of expanding the current core business from highways to include cities as well.
During the first quarter of this year, Kapsch TrafficCom received its first order for an end-to-end solution in the U.S.A. for the Ohio River Bridges. With this order, we have succeeded in establishing ourselves as a complete provider in this market. This reference will open up new potential for us on the U.S. market.
The operation projects supplied a stable revenue contribution during the reporting period. The system in Poland, already our largest toll system, will be expanded once again. The sale of on-board units also developed well during the first half of the year. After delays in the previous year, a significant upward trend was apparent, and the sales figures once again reached the high level of two years ago.
Assets, financial and earnings situation. The revenue of the Kapsch TrafficCom Group amounted to EUR 245.0 million in the first half of the fiscal year, which is 3% above the previous year's value. The EBIT, which was very high in the previous year due to one-time effects, rose again disproportionately in the reporting period. With an EBIT growth of 56% to EUR 27.4 million, we therefore are very satisfied. We attribute this on one hand to the revenue mix with a strong on-board unit business and, on the other hand, to the successes achieved already with our cost-cutting measures. The EBIT margin for the first half of the fiscal year is 11.2%, which places us at the targeted level of profitability.
The balance sheet figures show the potential of the Kapsch TrafficCom Group for future projects and endeavors. The equity ratio rose to 44.4%, while the net debt was further reduced and cash and cash equivalents increased. The free cash flow for the first half year is EUR 30.3 million.
Program 2020 and strategy. A significant element of Program 2020, which we initiated in the previous year, was the adaptation of the Kapsch TrafficCom strategy, which we were able to present in April of this year. This strategy initially sets three priorities: The first is operational excellence, the second is the strengthening and securing of the core business and the third is the establishment of an intelligent mobility solutions (IMS) business.
In terms of both projects and results, the developments in the first half of the 2015/16 fiscal year confirm that we are on the right path.
I would like to present to you our new Chief Technology Officer, Alexander Lewald, who joined the executive board of Kapsch TrafficCom AG on 1 November 2015. Among other qualifications, Mr. Lewald brings with him considerable technical expertise, including in the IMS area. We are very pleased to be able to welcome him to the company.
Outlook. In the second half of the current fiscal year, we will pursue the concerted development of existing and newly acquired projects. The system expansions in Belarus and Poland will make an important contribution to revenue and profit. In Slovenia, we have submitted our offer and we are waiting for the decision. In addition, we expect additional invitations to tender and decisions on the awarding of orders: In Austria, the new invitation to tender for the toll system is currently under way, and an invitation to tender is also in preparation in the Czech Republic. Another major project is in the offer phase in the U.S.A. We are also in concrete talks regarding a nationwide project with a structure similar to the one we have already completed successfully in Belarus.
An emphasis will be placed on the continued implementation of our strategy, with associated organizational adjustments and specific next steps. The cost savings of the project "Top Fit" will be fully apparent by the end of the fiscal year.
On the basis of the promising results for the first half of the year, we anticipate that the Kapsch TrafficCom Group will achieve an EBIT margin of 10% in the core business, as expected, assuming a stable revenue level over the current fiscal year. This allows us sufficient leeway for additional investments in the future, such as the development of the smart parking business with Streetline.
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 severe share price decline in the previous fiscal year, the shares were able to regain significant ground and value in the first half of the 2015/16 fiscal year. A volatile first quarter was followed by a disproportional upward trend in the second quarter. At the end of the first half of the year, on 30 September 2015, the shares closed at EUR 29.29, 23% higher than at the start of the fiscal year. The developments on the international stock markets over the previous
six months were considerably weaker. The ATX Prime index, like other comparison indexes outside of Europe, fell by roughly 10%, other European indexes lost even more value in some cases.
The number of shares is 13 million. KAPSCH-Group Beteiligungs GmbH holds 63.1% 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. The market capitalization with respect to the closing share price of EUR 29.29 was EUR 380.8 million at the end of the first half of the year.
The final price of the Kapsch TrafficCom shares and final value of the ATX Prime Index on 31 March 2015, both indexed to 100
| Information on the Shares | Investor Relations Officer | Marcus Handl | |
|---|---|---|---|
| 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 | 24 February 2016 | Interim report for fiscal year (FY) 2015/16 Q3 | |
| 16 June 2016 | Preliminary results of FY 2015/16 | ||
| 07 September 2016 | Annual General Meeting for FY 2015/16 |
Kapsch TrafficCom addresses the market for intelligent transportation systems (ITS). ITS refers to systems in which information and communication technologies are employed to support and optimize transportation, including infrastructure, vehicles, users and industry. The market comprises the three product segments:
According to the study "Intelligent Transportation Systems – A global strategic business report" from Global Industry Analysts (April 2014), the ITS market will grow between 2012 and 2020 by an average of 8.7% per year and should reach a global volume of USD 26.3 billion by 2020, of which ETC will make up USD 7.8 billion or 29.5%. The strongest growth in all product segments is expected for ETC with annual growth of 11.5%. Business opportunities arise here in particular due to the following developments:
The revenues of the Kapsch TrafficCom Group were EUR 245.0 million in the first half of the current 2015/16 fiscal year (2015/16 H1), slightly above the value of EUR 237.4 million in the same period of the previous fiscal year (2014/15 H1). Revenues increased over the previous year in all three segments – Road Solution Projects (RSP) as well as Services, System Extensions, Components Sales (SEC) and Others (OTH).
Revenues by segment in the first half of the current fiscal year were as follows:
was included in the previous year for compensation of the costs incurred during the time for which it was necessary to maintain operational readiness of the system. The technical and commercial operation of the nationwide system in the Czech Republic, the operation project in Poland, the technical operation including maintenance of the nationwide system in Austria and the technical and commercial operation project in Belarus continued to provide stable revenue contributions.
The number of on-board units sold amounted to 4.60 million (2014/15 H1: 3.25 million), an increase of 1.35 million units. Increases were observed in particular in North America, France and Thailand, while the sales figures in Chile lagged behind those of the comparison period.
¾The segment Others (OTH) saw EUR 12.5 million in revenue during the first half of 2015/16 (2014/15 H1: EUR 12.3 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. and Australia. The production and supply for the GSM-R project of Kapsch CarrierCom were below that of the same period in the previous year.
In the first half of the current fiscal year, the Kapsch TrafficCom Group reported an operating result (EBIT) of EUR 27.4 million, which was significantly higher than the comparison period of the previous year (2014/15 H1: EUR 17.6 million). This placed the EBIT margin at 11.2% (2014/15 H1: 7.4%). Operating results by segment in the first half of the year were as follows:
The financial result improved from EUR -8.2 million in the comparison period of the previous year to EUR -2.7 million. The finance income increased from EUR 5.9 million to EUR 8.0 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). The finance costs declined from EUR -14.2 million to EUR -10.7 million, although the as yet unrealized foreign currency losses increased to EUR -6.1 million (2014/15 H1: EUR 0.0 million). A goodwill impairment of Q-Free ASA in the amount of EUR 12.2 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 0.9 million to EUR 19.2 million. In particular, the share attributable to the equity holders of the company increased to EUR 16.7 million (2014/15 H1: EUR -3.5 million). This resulted in a significantly positive profit per share for the Kapsch TrafficCom Group of EUR 1.28 (2014/15 H1: EUR -0.27).
The total assets on 30 September 2015 of EUR 491.9 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 218.6 million was only slightly below 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 44.4% on 30 September 2015.
The most significant changes in assets involved the non-current assets. The other non-current assets decreased by EUR 15.3 million due to the contractually agreed repayments from the Belorussian installation project, of which 25 out of 36 monthly installments have been paid by the customer in compliance with the contract. The largest change in the current assets was a decrease in the other current financial assets by EUR 5.3 million due to the sale of securities.
The largest change on the liabilities side of the balance sheet occurred in the non-current financial liabilities, which declined by EUR 13.9 million. This is related to the buyback of corporate bonds in the amount of EUR 4.2 million as well as the repayment of the financing for the installation of the nationwide electronic truck toll system in Belarus. Under current liabilities, the other liabilities and deferred income declined due to the decrease in tax payables as on the key date by EUR 6.3 million.
The net cash flow from operating activities amounted to EUR 33.1 million after EUR 29.2 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 16.2 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 5.2 million in the first half of the year 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 30.3 million (2014/15 H1: EUR 25.5 million). The decrease in the current and non-current financial liabilities due to the buyback of corporate bonds, the repayment of project financing and 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 -28.7 million. Cash and cash equivalents increased from EUR 96.8 million on 31 March 2015 to EUR 102.3 million on 30 September 2015. The decrease in noncurrent financial liabilities and the increase in cash and cash equivalents led to a decline in net debt from EUR -35.9 million on 31 March 2015 to EUR -19.1 million on 30 September 2015. This is the lowest level since the third quarter of 2012/13.
No major transactions with related parties having a considerable impact on the financial position or the operative result took place during the first half of the current fiscal year. Details of transactions with related parties are discussed under note 17 to the condensed consolidated interim report as of 30 September 2015.
On 14 April 2015, a controlling interest in the Californian company Streetline, Inc., U.S.A., was acquired through a merger with the newly founded KTC SL Merger Corp., Delaware, U.S.A. Streetline is a leading smart parking company that offers intelligent data and modern analytics to solve parking space problems for end users.
The primary risk elements of the company are industry-specific risks, such as high volatility in revenue from projects, risks in project execution and long-term contracts with public agencies, strategic risks, financial risks, personnel risks, legal risks and IT risks. The central risk management system is focused in particular on project risk management in order to identify and control the risks in project execution as well as enterprise risk management (ERM).
In the past, the revenues of the Kapsch TrafficCom Group have been heavily influenced by whether the given fiscal year had any implementation projects in the RSP segment. In this segment, the company regularly participates in tenders for the implementation and operation of large electronic toll collection and traffic management systems. In this regard, there is a risk that invitations to tender may be postponed or withdrawn or that the Kapsch TrafficCom Group may not successfully win bids for new projects. Continuing revenues from technical and commercial operations also depend on the successful participation in tenders for systems.
In the area of project execution, deadlines may be missed and/or system and product defects may arise. If the contractual services are not fulfilled or if deadlines are exceeded, penalties and damages usually have to be paid, in some cases even damages for lost toll revenue. There is also the risk that projects of the Kapsch TrafficCom Group cannot be realized at the previously calculated costs. In many cases, contracts are awarded by public agencies. Some multi-year contracts contain demanding requirements regarding the targeted performance of the implemented systems, components and processes. Failure to meet these requirements can result in considerable contractual penalties, obligations to pay damages or termination of the contract. On the other hand, in some contracts substantial bonus payments may be earned in the case of over-performance.
One of the strategic objectives of the Kapsch TrafficCom Group is to expand internationally both through organic growth and via selected acquisitions and joint ventures. In implementing this strategy, the Kapsch TrafficCom Group acquires companies around the world and integrates them into the group. However, a number of challenges remain in connection with this growth strategy in achieving the desired synergies and objectives. Impairments to the goodwill recorded on the balance sheet can also occur on the basis of impairment tests according to IAS 36.
As the Kapsch TrafficCom Group becomes more internationally active, the importance of currency exchange risks increases. A considerable portion of revenues and costs are denominated in the currency of the respective foreign companies such as CZK, PLN, SEK, USD and ZAR rather than in euros. Although the Group aims to hedge the foreign currency risks of the individual contracts, currency fluctuations may result in exchange rate losses that appear on the consolidated financial statements (transaction risk). The foreign currency risk is lower in operation projects than in installation projects since the operational revenues of the local company are typically counterbalanced by expenditures in the same currency in the case of operation projects. In addition, fluctuations arise from the conversion of separate financial statements of international companies into the group currency, the euro (translation risk).
In the second half of the current fiscal year, the Kapsch TrafficCom Group will pursue the concerted development of existing and newly acquired projects. The system expansions in Belarus and Poland will make an important contribution to revenue and profit. In Slovenia, the offer was submitted and the decision is awaited. In addition, the company expects further invitations to tender and decisions on the awarding of orders: In Austria, the new invitation to tender for the existing toll system is currently under way, and an invitation to tender is also in preparation in the Czech Republic. Another major project is in the offer phase in the U.S.A. Kapsch TrafficCom is also in concrete talks regarding a nationwide project with a structure similar to the one completed successfully in Belarus.
An emphasis will be placed on the continued implementation of the strategy, with associated organizational adjustments and specific next steps. The cost savings of the project "Top Fit" will be fully apparent by the end of the fiscal year.
On the basis of the promising results for the first half of the year, the management anticipates that the Kapsch TrafficCom Group will achieve an EBIT margin of 10% in the core business, as expected, assuming a stable revenue level over the current fiscal year. This allows sufficient leeway for additional investments in the future, such as the development of the smart parking business with Streetline.
Since 1 November 2015, Dr.-Ing. Alexander Lewald has joined the executive board of Kapsch TrafficCom AG as Chief Technology Officer (CTO). Mr. Lewald has been appointed to this position for four years.
Vienna, 19 November 2015
The Executive Board
Georg Kapsch Chief Executive Officer
André Laux Executive board member
Alexander Lewald Executive board member
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, 19 November 2015
Georg Kapsch Chief Executive Officer
André Laux Executive board member
Alexander Lewald Executive board member
| All amounts in TEUR | Notes | 2015/16 Q2 | 2014/15 Q2 | 2015/16 H1 | 2014/15 H1 |
|---|---|---|---|---|---|
| Revenues | (5) | 127,839 | 119,451 | 244,964 | 237,420 |
| Other operating income | 3,175 | 3,230 | 6,481 | 6,298 | |
| Changes in finished and unfinished goods and work in progress | 2,990 | -1,351 | -371 | 867 | |
| Own work capitalized | 187 | 0 | 408 | 0 | |
| Cost of materials and other production services | -54,867 | -32,054 | -93,458 | -90,648 | |
| Staff costs | -35,612 | -33,887 | -74,620 | -70,442 | |
| Amortization and depreciation | -4,210 | -4,009 | -8,339 | -8,117 | |
| Impairment charge | 0 | -12,342 | 0 | -12,342 | |
| Other operating expenses | -24,893 | -22,103 | -47,665 | -45,461 | |
| Operating result | (5) | 14,609 | 16,934 | 27,400 | 17,577 |
| Finance income | 2,620 | 2,507 | 8,011 | 5,948 | |
| Finance costs | -7,572 | -12,629 | -10,698 | -14,164 | |
| Financial result | -4,951 | -10,122 | -2,687 | -8,216 | |
| Result from associates | 83 | 2 | 45 | 140 | |
| Result before income taxes | 9,741 | 6,815 | 24,758 | 9,501 | |
| Income taxes | (13) | -1,987 | -6,175 | -5,532 | -8,579 |
| Result for the period | 7,754 | 640 | 19,226 | 922 | |
| Result attributable to: | |||||
| Equity holders of the company | 6,918 | -2,758 | 16,675 | -3,513 | |
| Non-controlling interests | 837 | 3,398 | 2,551 | 4,435 | |
| 7,754 | 640 | 19,226 | 922 | ||
| Earnings per share from the result for the period attributable | |||||
| to the equity holders of the company (in EUR) | 0.53 | -0.21 | 1.28 | -0.27 | |
| Other comprehensive income for the period | |||||
| Items subsequently reclassified to the result for the period: | |||||
| Currency translation differences | -1,121 | -4,146 | -1,335 | -4,408 | |
| Currency translation differences from net investments in foreign operations | 51 | 2,741 | 1,653 | 3,039 | |
| Available-for-sale financial assets: | |||||
| Fair value gains/losses recognized in other comprehensive income | -5,085 | -1,379 | -4,474 | -2,268 | |
| Reclassification of cumulated net losses to the result for the period (impairment) | 192 | 12,185 | 192 | 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 | -23 | -744 | 438 | -862 | |
| Total items subsequently reclassified to the result for the period | -5,986 | 8,658 | -6,844 | 7,685 | |
| 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) | -5,986 | 8,658 | -6,844 | 7,685 |
| Total comprehensive income for the period | 1,768 | 9,297 | 12,382 | 8,607 | |
| Total comprehensive income attributable to: | |||||
| Equity holders of the company | 1,098 | 5,890 | 9,970 | 4,149 | |
| Non-controlling interests | 669 | 3,408 | 2,412 | 4,457 | |
| 1,768 | 9,297 | 12,382 | 8,607 |
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 | 30 Sep. 2015 | 31 March 2015 |
|---|---|---|---|
| ASSE TS |
|||
| Non-current assets | |||
| Property, plant and equipment | (6) | 21,198 | 22,393 |
| Intangible assets | (6) | 66,880 | 71,250 |
| Interests in associates | (7) | 1,882 | 2,014 |
| Other non-current financial assets and investments | (8) | 18,675 | 23,099 |
| Other non-current assets | 12,881 | 28,138 | |
| Deferred tax assets | 14,188 | 13,590 | |
| 135,704 | 160,485 | ||
| Current assets | |||
| Inventories | 47,389 | 47,670 | |
| Trade receivables and other current assets | 206,437 | 205,387 | |
| Other current financial assets | (8) | 0 | 5,291 |
| Cash and cash equivalents | 102,339 | 96,765 | |
| 356,165 | 355,113 | ||
| Total assets | 491,869 | 515,597 | |
| EQUITY 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 | 80,901 | 77,449 | |
| 211,410 | 207,958 | ||
| Non-controlling interests | 7,157 | 11,403 | |
| Total equity | 218,567 | 219,361 | |
| LIA BILITIES |
|||
| Non-current liabilities | |||
| Non-current financial liabilities | (10) | 75,131 | 88,985 |
| Liabilities from post-employment benefits to employees | (11) | 24,788 | 25,210 |
| Non-current provisions | (12) | 1,360 | 1,661 |
| Other non-current liabilities | 4,156 | 4,657 | |
| Deferred income tax liabilities | 644 | 2,380 | |
| 106,079 | 122,892 | ||
| Current liabilities | |||
| Trade payables | 51,378 | 48,441 | |
| Other liabilities and deferred income | 59,285 | 65,535 | |
| Current tax payables | 1,846 | 1,174 | |
| Current financial liabilities | (10) | 46,290 | 48,969 |
| Current provisions | (12) | 8,424 | 9,225 |
| 167,222 | 173,344 | ||
| Total liabilities | 273,302 | 296,236 | |
| Total equity and liabilities | 491,869 | 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 | |||
| Non-controlling interests arising on foundation | ||||||
| of a subsidiary | 5 | 5 | ||||
| Result for the period | -3,513 | 4,435 | 922 | |||
| Other comprehensive income for the period: | ||||||
| Currency translation differences | -2,152 | 22 | -2,129 | |||
| Fair value gains/losses on available-for-sale | ||||||
| financial assets | 9,814 | 0 | 9,814 | |||
| Carrying amount as of 30 September 2014 | 13,000 | 117,509 | -6,050 | 82,491 | 7,837 | 214,786 |
| Carrying amount as of 31 March 2015 | 13,000 | 117,509 | -12,184 | 89,634 | 11,403 | 219,361 |
| Dividend | -6,500 | -6,697 | -13,197 | |||
| Effects from acquisition of shares in subsidiaries | 0 | 21 | 21 | |||
| Effects from the acquisition and sale of | ||||||
| non-controlling interests | -19 | 19 | 0 | |||
| Result for the period | 16,675 | 2,551 | 19,226 | |||
| Other comprehensive income for the period: | ||||||
| Currency translation differences | 44 | -139 | -95 | |||
| Fair value gains/losses on available-for-sale | ||||||
| financial assets | -6,749 | 0 | -6,749 | |||
| Carrying amount as of 30 September 2015 | 13,000 | 117,509 | -18,889 | 99,791 | 7,157 | 218,567 |
The effects from the acquisition of shares in subsidiaries in the first half 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.
| All amounts in TEUR | 2015/16 Q2 | 2014/15 Q2 | 2015/16 H1 | 2014/15 H1 |
|---|---|---|---|---|
| Cash flow from operating activities | ||||
| Operating result | 14,609 | 16,934 | 27,400 | 17,577 |
| Adjustments for non-cash items and other reconciliations: | ||||
| Scheduled amortization and depreciation | 4,210 | 4,009 | 8,339 | 8,117 |
| Impairment charge | 0 | 12,342 | 0 | 12,342 |
| Increase/decrease in obligations for post-employment benefits | -316 | -86 | -422 | -159 |
| Increase/decrease in other non-current liabilities and provisions | -445 | 125 | -470 | -34 |
| Increase/decrease in other non-current receivables and assets | -983 | -1,645 | -2,005 | -3,223 |
| Increase/decrease in trade receivables (non-current) | 6,174 | 10,771 | 19,179 | 19,019 |
| Increase/decrease in trade payables (non-current) | -256 | -123 | -470 | -451 |
| Other (net) | -2,515 | -294 | 1,707 | 202 |
| 20,478 | 42,033 | 53,259 | 53,390 | |
| Changes in net current assets: | ||||
| Increase/decrease in trade receivables and other assets | 1,898 | -13,625 | -1,062 | 6,120 |
| Increase/decrease in inventories | -880 | 2,179 | 281 | 5,336 |
| Increase/decrease in trade payables and other current payables | 3,281 | -12,377 | -5,324 | -10,677 |
| Increase/decrease in current provisions | -318 | -15,988 | -801 | -15,920 |
| 3,981 | -39,811 | -6,906 | -15,141 | |
| Cash flow from operations | 24,459 | 2,223 | 46,353 | 38,249 |
| Interest received | 253 | 463 | 567 | 908 |
| Interest payments | -1,240 | -1,219 | -2,571 | -2,427 |
| Net payments of income taxes | -6,429 | -6,028 | -11,299 | -7,500 |
| Net cash flow from operating activities | 17,043 | -4,561 | 33,050 | 29,230 |
| Cash flow from investing activities | ||||
| Purchase of property, plant and equipment | -1,295 | -2,480 | -2,844 | -3,490 |
| Purchase of intangible assets | -79 | -436 | -98 | -493 |
| Purchase of securities and investments | 0 | -154 | 0 | -362 |
| Increase in cash from the acquisition of entities (less payment for the acquisition of the entity) | 0 | 0 | 2,543 | 0 |
| Proceeds from the disposal of property, plant and equipment and intangible assets | -58 | 107 | 233 | 238 |
| Proceeds from the disposal of securities and investments | 40 | 0 | 5,375 | 0 |
| Net cash flow from investing activities | -1,392 | -2,963 | 5,210 | -4,107 |
| Cash flow from financing activities | ||||
| Dividends paid to parent company's shareholders | -6,500 | 0 | -6,500 | 0 |
| Dividends paid to non-controlling interests | -34 | -186 | -6,697 | -6,935 |
| Increase in non-current financial liabilities | 427 | 45 | 471 | 90 |
| Decrease in non-current financial liabilities | -5,083 | -5,263 | -14,320 | -10,527 |
| Increase in current financial liabilities | 983 | 934 | 1,875 | 2,233 |
| Decrease in current financial liabilities | -1,080 | 0 | -3,571 | -2,600 |
| Net cash flow from financing activities | -11,287 | -4,470 | -28,741 | -17,739 |
| Net increase/decrease in cash and cash equivalents | 4,364 | -11,994 | 9,518 | 7,384 |
| Change in cash and cash equivalents | ||||
| Cash and cash equivalents at beginning of period | 100,415 | 77,417 | 96,765 | 57,731 |
| Net increase/decrease in cash and cash equivalents | 4,364 | -11,994 | 9,518 | 7,384 |
| Exchange gains/losses on cash and cash equivalents | -2,441 | 169 | -3,945 | 476 |
| Cash and cash equivalents at end of period | 102,339 | 65,592 | 102,339 | 65,592 |
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 first half of the current fiscal year 2015/16 ended 30 September 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 first half of the current fiscal year 2015/16 the following new or amended IFRS and IFRIC have been adopted.
| New/adopted IFRSs | Applicable to financial years beginning on or after | |
|---|---|---|
| IAS 19 | Employee Benefits (Amendment) | 1 January 2015 |
| Annual improvement to IFRS, 2010–2012 | ||
| IFRS 2 | Share-based Payment | 1 January 2015 |
| IFRS 3 | Business Combinations | 1 January 2015 |
| IFRS 8 | Operating Segments | 1 January 2015 |
| IFRS 13 | Fair Value Measurement | 1 January 2015 |
| IAS 16 | Property, Plant and Equipment | 1 January 2015 |
| IAS 24 | Related Party Disclosures | 1 January 2015 |
| IAS 38 | Intangible Assets | 1 January 2015 |
| 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, | |||
|---|---|---|---|
| Road Solution | System Extensions, | Consolidated | |
| Projects | Components Sales | Others | group |
| 38,234 | 194,188 | 12,542 | 244,964 |
| -9,152 | 35,555 | 997 | 27,400 |
| Services, | |||
| Road Solution | System Extensions, | Consolidated | |
| Projects | Components Sales | Others | group |
| 37,887 | 187,186 | 12,347 | 237,420 |
| -23,701 | 40,238 | 1,041 | 17,577 |
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 H1 | 2014/15 H1 | |||||
|---|---|---|---|---|---|---|---|
| Services, | Services, | ||||||
| Road Solution | System Extensions, | Road Solution | System Extensions, | ||||
| Revenues | Projects | Components Sales | Revenues | Projects | Components Sales | ||
| Customer 1 | 41,222 | x | 39,843 | x | |||
| Customer 2 | 39,103 | x | 35,714 | x | |||
| Customer 3 | 25,451 | x | x | 24,513 | x | x | |
| Customer 4 | 21,144 | x | x | 30,623 | x | x |
| All amounts in TEUR | 30 Sep. 2015 | 30 Sep. 2014 |
|---|---|---|
| Carrying amount as of 31 March of prior year | 93,644 | 113,014 |
| Additions | 2,941 | 3,983 |
| Additions from the acquisition | 1,297 | 0 |
| Disposals | -233 | -224 |
| Depreciation, amortization, impairments and other movements | -8,339 | -20,459 |
| Currency translation differences | -1,231 | 899 |
| Carrying amount as of 30 September of fiscal year | 88,078 | 97,213 |
In the first half of the fiscal year 2015/16, the position "Depreciation, amortization, impairments and other movements" 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 | 30 Sep. 2015 | 30 Sep. 2014 |
|---|---|---|
| Carrying amount as of 31 March of prior year | 2,014 | 1,596 |
| Currency translation differences | -176 | 139 |
| Additions from foundations and acquisitions | 0 | 0 |
| Disposals | 0 | 0 |
| Share in result | 45 | 140 |
| Carrying amount as of 30 September of fiscal year | 1,882 | 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 | 30 Sep. 2015 | 31 March 2015 | 30 Sep. 2014 | 31 March 2014 |
|---|---|---|---|---|
| Other non-current financial assets and investments | 18,675 | 23,099 | 26,367 | 28,506 |
| Other current financial assets | 0 | 5,291 | 5,261 | 4,924 |
| 18,675 | 28,390 | 31,628 | 33,430 | |
| Other non-current financial assets and investments | Available | Available | Other | |
| 2015/16 H1 | 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 | -7 | -7 |
| Additions | 0 | 0 | 97 | 97 |
| Disposals | -40 | 0 | 0 | -40 |
| Change in fair value | -88 | -4,386 | 0 | -4,474 |
| Carrying amount as of 30 September 2015 | 3,675 | 14,910 | 90 | 18,675 |
| Other non-current financial assets and investments | Available | Available | Other | |
|---|---|---|---|---|
| 2014/15 H1 | 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 | 105 | 105 |
| Additions | 0 | 362 | 0 | 362 |
| Disposals | 0 | 0 | 0 | 0 |
| Change in fair value | 74 | -2,679 | 0 | -2,605 |
| Carrying amount as of 30 September 2014 | 3,729 | 21,441 | 1,197 | 26,367 |
| Other current financial assets | Available | ||
|---|---|---|---|
| 2015/16 H1 | 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 30 September 2015 | 0 | 0 | 0 |
| Other current financial assets | Available | ||||
|---|---|---|---|---|---|
| 2014/15 H1 | 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 | 337 | 0 | 337 | ||
| Carrying amount as of 30 September 2014 | 5,261 | 0 | 5,261 |
As of 30 September 2015, available-for-sale securities relate to government and bank bonds as well as shares in investment funds. As of 30 September 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 half 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 30 September 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:
¾Quoted market prices or dealer quotes for similar instruments;
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 | ||
| All amounts in TEUR | Quoted prices | market data | market data | 2015/16 H1 |
| Non-current financial assets | ||||
| Available-for-sale securities | 2,998 | 677 | 0 | 3,675 |
| Available-for-sale investments | 14,905 | 0 | 0 | 14,905 |
| 17,903 | 677 | 0 | 18,580 | |
| Current financial assets | ||||
| Available-for-sale securities | 0 | 0 | 0 | 0 |
| 0 | 0 | 0 | 0 | |
| Total | 17,903 | 677 | 0 | 18,580 |
As of 30 September 2015, other non-current financial assets amounting to TEUR 95 are recognized at amortized cost.
| Level 3 | ||||
|---|---|---|---|---|
| Level 2 | Not based on | |||
| Level 1 | Observable | observable | ||
| All amounts in TEUR | Quoted prices | market data | market data | 2014/15 H1 |
| Non-current financial assets | ||||
| Available-for-sale securities | 2,995 | 733 | 0 | 3,729 |
| Available-for-sale investments | 21,437 | 0 | 0 | 21,437 |
| 24,432 | 733 | 0 | 25,165 | |
| Current financial assets | ||||
| Available-for-sale securities | 5,261 | 0 | 0 | 5,261 |
| 5,261 | 0 | 0 | 5,261 | |
| Total | 29,693 | 733 | 0 | 30,426 |
As of 30 September 2014, other non-current financial assets amounting to TEUR 1,202 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 | 30 Sep. 2015 | 31 March 2015 | 30 Sep. 2014 | 31 March 2014 |
|---|---|---|---|---|
| Non-current financial liabilities | 75,131 | 88,985 | 99,058 | 109,494 |
| Current financial liabilities | 46,290 | 48,969 | 47,660 | 46,560 |
| Total | 121,421 | 137,954 | 146,718 | 156,054 |
Movements in borrowings are analyzed as follows:
| Non-current | Current | ||
|---|---|---|---|
| 2015/16 H1 | financial | financial | |
| All amounts in TEUR | liabilities | liabilities | Total |
| Carrying amount as of 31 March 2015 | 88,985 | 48,969 | 137,954 |
| Additions | 471 | 1,875 | 2,347 |
| Repayments of borrowings | -14,320 | -3,571 | -17,891 |
| Reclassification | 0 | 0 | 0 |
| Currency translation differences | -4 | -984 | -989 |
| Carrying amount as of 30 September 2015 | 75,131 | 46,290 | 121,421 |
| Non-current | Current | ||
|---|---|---|---|
| 2014/15 H1 | financial | financial | |
| All amounts in TEUR | liabilities | liabilities | Total |
| Carrying amount as of 31 March 2014 | 109,494 | 46,560 | 156,054 |
| Additions | 90 | 2,233 | 2,323 |
| Repayments of borrowings | -10,527 | -2,600 | -13,127 |
| Reclassification | 0 | 0 | 0 |
| Currency translation differences | 0 | 1,468 | 1,468 |
| Carrying amount as of 30 September 2014 | 99,058 | 47,660 | 146,718 |
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 | 30 Sep. 2015 | 30 Sep. 2014 |
|---|---|---|
| Carrying amount | 121,421 | 146,718 |
| Fair value | 133,806 | 151,360 |
| Gross cash flows: | ||
| Up to 1 year | 49,563 | 48,722 |
| Between 1 and 3 years | 81,961 | 25,822 |
| Between 3 and 5 years | 0 | 78,638 |
| 131,525 | 153,182 |
| Level 2 | Level 3 | |||
|---|---|---|---|---|
| Level 1 | Observable | Not based on observ | ||
| All amounts in TEUR | Quoted prices | market data | able market data | 2015/16 H1 |
| Corporate bond | 73,828 | 0 | 0 | 73,828 |
| Other financial liabilities | 0 | 59,979 | 0 | 59,979 |
| Total | 73,828 | 59,979 | 0 | 133,806 |
| Level 2 | Level 3 | |||
| Level 1 | Observable | Not based on observ | ||
| All amounts in TEUR | Quoted prices | market data | able market data | 2014/15 H1 |
| Corporate bond | 78,638 | 0 | 0 | 78,638 |
| Other financial liabilities | 0 | 72,723 | 0 | 72,723 |
| Total | 78,638 | 72,723 | 0 | 151,360 |
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 | 30 Sep. 2015 | 31 March 2015 | 30 Sep. 2014 | 31 March 2014 |
|---|---|---|---|---|
| Termination benefits | 9,549 | 9,690 | 8,687 | 8,790 |
| Retirement benefits | 15,240 | 15,520 | 13,306 | 13,363 |
| Total | 24,788 | 25,210 | 21,994 | 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 | 30 Sep. 2015 | 31 March 2015 | 30 Sep. 2014 | 31 March 2014 |
|---|---|---|---|---|
| Non-current provisions | 1,360 | 1,661 | 1,632 | 1,303 |
| Current provisions | 8,424 | 9,225 | 12,457 | 28,378 |
| Total | 9,783 | 10,886 | 14,089 | 29,680 |
| Addition re | |||||||
|---|---|---|---|---|---|---|---|
| sulting from | Currency | ||||||
| 2015/16 H1 | company | translation | |||||
| All amounts in TEUR | 31 March 2015 | acquisition | Addition | Utilization | Disposal | differences | 30 Sep. 2015 |
| Obligations from anniversary bonuses | 1,189 | 0 | 13 | 0 | -42 | 0 | 1,160 |
| Other | 472 | 0 | 5 | -205 | -42 | -31 | 199 |
| Non-current provisions, total | 1,661 | 0 | 19 | -205 | -84 | -31 | 1,360 |
| Warranties | 1,611 | 711 | 3 | -1 | -137 | -79 | 2,109 |
| Losses from pending transactions and rework | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
| Legal fees, costs of litigation and contract risks | 402 | 0 | 2,279 | -30 | -1,751 | -5 | 896 |
| Costs of dismantling, removing and | |||||||
| restoring assets | 0 | 183 | 0 | 0 | -7 | -10 | 166 |
| Other | 7,211 | 0 | 2,372 | -2,895 | -1,295 | -140 | 5,253 |
| Current provisions, total | 9,225 | 894 | 4,654 | -2,926 | -3,191 | -233 | 8,424 |
| Total | 10,886 | 894 | 4,673 | -3,130 | -3,275 | -264 | 9,783 |
| Addition re | |||||||
|---|---|---|---|---|---|---|---|
| sulting from | Currency | ||||||
| 2014/15 H1 | company | translation | |||||
| All amounts in TEUR | 31 March 2014 | acquisition | Addition | Utilization | Disposal | differences | 30 Sep. 2014 |
| Obligations from anniversary bonuses | 1,120 | 0 | 12 | 0 | -15 | 0 | 1,117 |
| Other | 183 | 0 | 334 | 0 | 0 | -2 | 515 |
| Non-current provisions, total | 1,303 | 0 | 346 | 0 | -15 | -2 | 1,632 |
| Warranties | 1,637 | 0 | 23 | -34 | 0 | 12 | 1,638 |
| Losses from pending transactions and rework | 16,201 | 0 | 0 | 0 | -16,180 | -18 | 3 |
| Legal fees, costs of litigation and contract risks | 4,071 | 0 | 0 | -50 | 0 | -5 | 4,015 |
| Other | 6,468 | 0 | 1,418 | -1,127 | -33 | 75 | 6,801 |
| Current provisions, total | 28,378 | 0 | 1,441 | -1,211 | -16,213 | 63 | 12,457 |
| Total | 29,680 | 0 | 1,787 | -1,211 | -16,228 | 61 | 14,089 |
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 16,180 had to be reversed.
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 first half of the fiscal year 2015/16 is due to the non-tax effective impairments (goodwill impairment and impairment Q-Free ASA).
| 2015/16 H1 | 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 | -4,474 | 22 | -4,452 |
| Gains/losses recognized in the result for the period | -3,126 | 829 | -2,297 |
| Currency translation differences | -1,335 | -1,335 | |
| Currency translation differences from net investments | |||
| in foreign business | 1,653 | -413 | 1,240 |
| Fair value changes recognized in equity | -7,282 | 438 | -6,844 |
In the first half of the fiscal year 2015/16 the unrealized gains/losses on available-for-sale financial assets amounting to TEUR -4,386 relate to fair value changes on the investment in Q-Free ASA, Norway, which are tax neutral.
In the first half of the fiscal year 2015/16, the gains/losses recognized in the result for the period relate to the disposal of current available-for-sale financial assets (see note 8).
| 2014/15 H1 | 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 | -2,268 | -103 | -2,371 |
| Gains/losses recognized in the result for the period | 12,185 | 0 | 12,185 |
| Currency translation differences | -4,408 | -4,408 | |
| Currency translation differences from net investments | |||
| in foreign business | 3,039 | -760 | 2,279 |
| Fair value changes recognized in equity | 8,547 | -862 | 7,685 |
The unrealized gains/losses on available-for-sale financial assets recognized in the first half 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 1,260 and a net loss of TEUR 1.714 to the group's result for the period from 14 April 2015 to 30 September 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 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 | 30 Sep. 2015 | 31 March 2015 |
|---|---|---|
| Contract, warranty, performance and bid bonds | ||
| North America (toll collection systems and traffic management) | 97,160 | 79,441 |
| South Africa (toll collection system) | 74,602 | 87,578 |
| Australia (toll collection systems) | 26,235 | 20,593 |
| Austria (toll collection system) | 8,500 | 8,500 |
| Poland (toll collection system) | 6,964 | 7,236 |
| Czech Republic (toll collection system) | 4,631 | 4,126 |
| Portugal (toll collection system) | 167 | 167 |
| Other | 2,058 | 1,647 |
| 220,318 | 209,288 | |
| Bank guarantees | 1,685 | 1,664 |
| Sureties | 21 | 61 |
| Total | 222,024 | 211,014 |
The following tables provides 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 H1 | 2014/15 H1 |
|---|---|---|
| Affiliated companies outside the Kapsch TrafficCom Group | ||
| Revenues | 6,091 | 8,907 |
| Expenses | 14,776 | 12,729 |
| Other related parties | ||
| Revenues | 0 | 0 |
| Expenses | 49 | 533 |
| All amounts in TEUR | 30 Sep. 2015 | 30 Sep. 2014 |
| Affiliated companies outside the Kapsch TrafficCom Group | ||
| Trade receivables and other current assets | 2,990 | 3,363 |
| Trade payables and other liabilities | 8,097 | 8,126 |
| Liabilities from share purchase | 2,057 | 0 |
| Other related parties | ||
| Trade receivables and other current assets | 127 | 127 |
| Trade payables and other liabilities | 13,177 | 11,749 |
The members of the executive and supervisory boards have management functions or are members in supervisory boards of other companies of the Kapsch Group.
Since 1 November 2015, Dr.-Ing.. Alexander Lewald has joined the executive board of Kapsch TrafficCom AG as Chief Technology Officer (CTO). Mr. Lewald has been appointed to this position for four years.
Vienna, 19 November 2015
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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