Interim / Quarterly Report • Nov 25, 2009
Interim / Quarterly Report
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FY10 (Fiscal Year 2009/10): 1 April 2009 - 31 March 2010; FY10-Q2 (First half of Fiscal Year 2009/10): 1 April 2009 - 30 September 2009
| Operating Figures (cumulative) | FY10-Q2 | FY09-Q2 | +/- % | FY09 | |
|---|---|---|---|---|---|
| Revenues | in million EUR | 79.4 | 108.5 | -27% | 200.3 |
| EBITDA | in million EUR | -0.6 | 20.3 | <-100% | 35.0 |
| EBITDA margin | in% | -0.8 | 18.7 | 17.5 | |
| EBIT | in million EUR | -4.5 | 18.3 | <-100% | 29.0 |
| EBIT margin | in% | -5.7 | 16.9 | 14.5 | |
| Profit before tax | in million EUR | 1.1 | 22.7 | -95% | 21.9 |
| Profit after tax | in million EUR | 2.2 | 17.2 | -87% | 16.4 |
| Earnings per share | in EUR | 0.05 | 1.29 | -96% | 1.06 |
| Free cash flow 1 | in million EUR | 18.6 | 31.1 | -40 % | 19.9 |
| Capital expenditure 2 | in million EUR | 5.9 | 7.2 | -18% | 22.2 |
| Employees | 967 | 898 | 8% | 946 | |
| Revenues by Segment | FY10-Q2 | FY09-Q2 | +/- % | FY09 | |
| Road Solution Projects | in million EUR | 10.7 | 40.2 | -73% | 56.8 |
| Services, System Extensions, Components Sales | in million EUR | 65.1 | 64.2 | 1% | 135.6 |
| Others | in million EUR | 3.7 | 4.2 | -12% | 8.0 |
| Revenues by Region | FY10-Q2 | FY09-Q2 | +/- % | FY09 | |
| Central & Eastern Europe (incl. Austria) | in million EUR | 51.3 | 79.8 | -36% | 139.3 |
| Western Europe | in million EUR | 10.6 | 10.7 | -1% | 21.3 |
| Americas | in million EUR | 4.3 | 5.6 | -22% | 14.0 |
| Rest of World | in million EUR | 13.2 | 12.4 | 6% | 25.6 |
| Balance Sheet Data | 30 Sep 2009 | 30 Sep 2008 | +/- % | 31 March 2009 | |
| Total assets | in million EUR | 267.7 | 340.5 | -21% | 324.5 |
| Total equity 3 | in million EUR | 130.0 | 138.3 | -6% | 134.2 |
| Equity ratio | in% | 48.6 | 40.6 | 41.4 | |
| Net assets 4 | in million EUR | 17.6 | 34.6 | -49% | 5.0 |
| Capital employed Net working capital |
in million EUR in million EUR |
159.0 101.8 |
189.6 94.1 |
-16% 8% |
193.5 122.3 |
| Stock Exchange Data 5 | |||||
| Number of shares as of 30 Sep 2009 | in million 12.2 |
Market capitalization as of 30 Sep 2009 | in EUR | 322.1 |
1 operating cash flow minus capital expenditure from operations (excl. payments for acquisition of companies and purchases of securities and investments)
2 capital expenditure from operations (excl. payments for acquisition of companies and purchases of securities and investments)
3 incl. minority interests
4 excl. long-term securities
5 for additional information on the share see page 6
FY10-Q2 FY09-Q2
RSP – Road Solution Projects SEC – Services, System Extensions, Components Sales OTH – Others
Georg Kapsch, Chief Executive Officer
with this report, the Kapsch TrafficCom Group draws a balance on the first half of the current fiscal year 2009/10 which may be compared to the same period of the previous fiscal year only to a limited degree. In the first half year of 2008/09 (FY09-Q2 cum.), Kapsch TrafficCom significantly increased revenues and earnings compared to the same period of the fiscal year 2007/08 (FY08-Q2 cum.) due to the realization of project revenues from the extension of the nationwide electronic truck tolling system in the Czech Republic (phase II) and the implementation of an electronic tolling system in New Zealand. Against this background, and due to the lack of a comparable project realization in the reporting period, revenues of the Kapsch TrafficCom Group decreased by 27% to EUR 79.4 million (FY09-Q2 cum.: EUR 108.5 million). For the second quarter, revenues at EUR 45.0 million were down by 6% compared to the same period of the previous fiscal year (FY09-Q2: EUR 48.1 million).
In contrast to the first quarter of the current fiscal year 2009/10, the Kapsch TrafficCom Group realized positive earnings despite constantly high investments in the expansion into new markets, particularly the U.S.A., and despite decreased revenues. In the second quarter, EBIT was at EUR 1.0 million (FY09-Q2: EUR 7.1 million), profit before tax at EUR 3.2 million (FY09-Q2: EUR 7.2 million) and profit after tax at EUR 3.7 million (FY09-Q2: EUR 6.1 million). Cumulated, the EBIT is still negative in the first half of the current fiscal year whereas profit before tax returned to positive.
Broken down by segments, with first half of the current fiscal year revenues of EUR 10.7 million (FY09-Q2 cum.: EUR 40.2 million) the Road Solution Projects (RSP) segment recorded a considerable decrease against the same period of the previous fiscal year. At EUR minus 14.4 million, the EBIT also clearly fell behind the first half of the previous fiscal year (FY09-Q2 cum.: EUR plus 4.9 million). The Services, System Extensions, Components
Revenues in the second quarter down by 6%, in the first half year cumulated down by 27%
Earnings in the second quarter despite decreased revenues and constantly high investments in the expansion into new markets positive again
RSP segment with a considerable negative deviation from the previous fiscal year
Sales (SEC) segment slightly exceeded the level in the first half of the previous fiscal year with revenues of EUR 65.1 million (FY09-Q2 cum.: EUR 64.2 million) and at an EBIT down by approximately 30% to EUR 9.9 million (FY09-Q2 cum.: EUR 14.0 million).
In the same period, Kapsch TrafficCom clearly improved its capital structure. With total assets of EUR 267.7 million as of 30 September 2009, down by 21% from EUR 340.5 million as of 30 September 2008, the Kapsch TrafficCom Group's equity ratio reached 48.6% as of 30 September 2009 (30 September 2008: 40.6%).
From a project perspective, the highlight in the second quarter was a large award in South Africa: The South African National Roads Agency Ltd (SANRAL) awarded the contract for the implementation and subsequent operation of a multi-lane free-flow (MLFF) tolling system to Electronic Toll Collection (ETC) Pty, a joint venture lead by Kapsch TrafficCom. The contract value for the implementation of the system is Rand 1.16 billion. The system will be installed over a period of 18 months and is scheduled to 'go live' in April 2011. The value for the subsequent operation of the system will be determined at a later stage and depends on the customer's final selection of certain modules. In any event, it will significantly exceed the contract value for the implementation of the system.
Kapsch TrafficCom successfully acquired another prestigious tolling system order in Australia in the second quarter: A subsidiary has won another tender for an electronic toll collection system in Australia, worth a total of EUR 4 million. In connection with the project, Kapsch TrafficCom will implement a multi-lane free-flow (MLFF) tolling solution on the Hale Street Link, a four-lane bridge in Brisbane.
The recent developments in the Czech Republic during the reporting period were also interesting: Through an amendment to the relevant law, the weight limit for vehicles subject to tolling will be reduced from 12 to 3.5 tonnes as of 1 January 2010, whereas today's paper vignette will be replaced by an electronic vignette as of 1 January 2011.
The project business remains in an exciting cycle: A contract in North Carolina (U.S.A.) is close to an award and Kapsch TrafficCom has prequalified for nationwide electronic truck tolling systems in France and in The Netherlands. Several other projects - among these the nationwide systems in Hungary and Slovenia - are close to the start of the tender or to the final decision for a tender.
SEC segment's revenue slightly exceeds previous fiscal year
Significantly reduced assets result in an equity ratio of 48.6%
Award in South Africa as the highlight in the second quarter
Another order in Australia
Interesting development in the Czech Republic
Project business remains in an exciting cycle
With the second half of fiscal year 2009/10 in mind, we take an optimistic view on our markets in the long term even in a changed economic environment. The second half of fiscal year 2009/10 will be shaped by participation in tenders and by project awards in Hungary, Slovenia, France, Portugal, and in the Netherlands as well as in the U.S.A.
With all best wishes
Georg Kapsch Chief Executive Officer
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.
The Kapsch TrafficCom share closed the second quarter of the current fiscal year 2009/10 on the Vienna Stock Exchange at a share price of EUR 26.4 on 30 September 2009, up approximately 78% from the closing price on 31 March 2009 (EUR 14.8). During the same period, the ATX Prime increased by approximately 63 %. With the beginning of the second quarter of the current fiscal year 2009/10, the price of the Kapsch TrafficCom share continuously increased up to EUR 27.7 (closing price on 15 September 2009) and closed the second quarter at a slightly lower price on 30 September 2009.
The Kapsch TrafficCom website, which represents an important means of communication, and provides a wide range of information on the company and the share, has been restructured and expanded in the second quarter of fiscal year 2009/10.
Based on a closing price of EUR 26.4 per share on 30 September 2009 and the number of outstanding shares unchanged at 12.2 million, Kapsch TrafficCom's market capitalization was approximately EUR 322.1 million. As of 30 September 2009, approximately 31.6% of the shares were in free float, whereas the remaining approximately 68.4% were continued to be held by KAPSCH-Group Beteiligungs GmbH.
1 Closing price of the share and closing value of the ATX Prime on 31 March 2009, each indexed to 100.
| Information on the share | Financial calendar | ||||
|---|---|---|---|---|---|
| Investor Relations Officer | Marcus Handl | 24 February 2010 | Interim financial report FY10-Q3 | ||
| [email protected] | 16 June 2010 | Results FY10 | |||
| Stock exchange | Vienna, Prime Market | 07 July 2010 | Ordinary Shareholders' Meeting | ||
| ISIN | AT000KAPSCH9 | 14 July 2010 | Deduction of dividends (ex-day) | ||
| Trading Symbol | KTCG | 21 July 2010 | First day of payments for dividends | ||
| Reuters / Bloomberg | KTCG.VI / KTCG AV |
Global traffic volumes are constantly growing, with India, Australia, New Zealand, South Africa, China and many Latin American countries showing the fastest growth. With its electronic and manual toll collection systems, road traffic telematics solutions, and electronic access and parking management systems, Kapsch TrafficCom has already established a presence in all of these high-growth markets. Kapsch TrafficCom closely monitors developments in the requirements in these regions on an ongoing basis, so that it is in a position to supply technical solutions tailored to the specific needs of the market at any time.
Despite an easing of the tense situation on the financial, commodity and energy markets as well as the slight economic recovery since the middle of the year 2009, Kapsch TrafficCom and its customers continue to face a challenging market environment. The management of the Company believes that investments in infrastructure will be undertaken even in this challenging economic environment.
Revenues of Kapsch TrafficCom Group in the first half of the current fiscal year 2009/10 (FY10-Q2 cum.) amounted to EUR 79.4 million, down 27% from EUR 108.5 million recorded in the same period of the previous fiscal year. The breakdown by segments shows that the decline in revenues resulted exclusively from the volatility of the project business in the segment Road Solution Projects (RSP) whereas the segment Services, System Extentions, Components Sales (SEC) contributed stable revenues of EUR 65.1 million (FY09-Q2 cum.: EUR 64.2 million) and thereby generated the largest share of sales.
In the first half of the current fiscal year, revenues by segment were as follows:
In the first six months of the current fiscal year, Kapsch TrafficCom Group reported an operating result (EBIT) at EUR minus 4.5 million (FY09-Q2 cum.: EUR 18.3 million). Operating results (EBIT) by segment were as follows:
• The RSP segment recorded a considerable decrease of the operating result (EBIT) in the first half of the current fiscal year compared the same period of the previous fiscal year. At EUR minus 14.4 million, the EBIT clearly fell behind the first half of the previous year (FY09-Q2 cum.: EUR plus 4.9 million). This development is attributable to the lack of project realizations in the period under consideration and constantly high investments in the expansion into new markets, particularly the U.S.A.
The Kapsch TrafficCom Group recorded a financial result of EUR 5.1 million in the first half of the current fiscal year, up by approximately EUR 0.7 million from EUR 4.3 million in the same period of the previous fiscal year. This increase was attributable to lower finance costs and to an improved foreign curreny exchange situation. At the same time, the finance income decreased - mainly due to the impact on interest of non-current receivables and to a lower interest yield.
The result from associates of EUR 0.5 million was entirely attributable to the acquisition of shares in the Norwegian Q-Free ASA.
Total assets of EUR 267.7 million as of 30 September 2009 decreased by 17.5% from EUR 324.5 million as of 31 March 2009. The decrease in assets was particularly due to a decrease in trade receivables and other current assets as well as a decrease in cash and cash equivalents. In addition, non-current assets decreased due to the scheduled payment of non-current receivables from the implementation of the nationwide electronic truck tolling system in the Czech Republic. The decrease in equity and liabilities was attributable to reduced current financial liabilities from the scheduled repayment of loans as well as to lower trade payables. The equity ratio was at 48.6% as of 30 September 2009 (31 March 2009: 41.4%).
The cash flow from operating activities was at EUR 24.5 million in the first six months of the current fiscal year, down by EUR 13.8 million compared to the first half of the previous fiscal year. Despite a still negative cumulated EBIT it remained at a similar level as in the first quarter of the current fiscal year. This development was attributable to a reduction of trade receivables and other current assets. At EUR 5.9 million, the cash flow from investing activities resulted, in particular, from payments for the acquisition of shares in Kapsch Telematic Services GmbH from BRISA Group. Despite the payments of current financial liabilities and the payment of a dividend of EUR 8.2 million which resulted in a negative cash flow from financing activities (EUR minus 38.5 million), cash and cash equivalents were at EUR 42.0 million as of 30 September 2009.
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. Details of transactions with related parties are discussed under note 14 to the condensed consolidated interim financial information as of 30 September 2009.
On 9 April 2009, Kapsch TrafficCom AG acquired 19% of the shares in Kapsch Telematic Services GmbH from Brisa Internacional, SGPS, S.A., Sao Domingos da Rana, for a purchase price of EUR 2.3 million. In addition, another 7% of the shares in Kapsch Telematic Services GmbH were acquired indirectly through acquisition of BRISA ACCESS Europe GmbH, Vienna, for a purchase price of EUR 1.9 million.
As an international group, Kapsch TrafficCom is exposed to general and industry specific 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 TrafficCom invoices in EUR, SEK or local currencies. However, a translation risk exists due to the conversion of financial statements of subsidiaries into EUR.
Kapsch TrafficCom frequently provides to customers, suppliers and creditors guarantees and warranties, mainly in the form of performance guarantees.
With the second half fiscal year 2009/10 in mind, the management takes an optimistic view on the company's markets in the long term even in a changed economic environment. The project awards in South Africa and Australia as well as the expected tender and project awards in several countries will positively influence the second half of the current fiscal year. A change in the risk situation is not visible at the moment.
There were no major events after 30 September 2009.
Vienna, 25 November 2009
Board of Management
Georg Kapsch, CEO Erwin Toplak, COO
We confirm to the best of our knowledge that the condensed interim financial 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, 25 November 2009
Board of Management
Georg Kapsch, CEO Erwin Toplak, COO
| All amounts in TEUR | Note | FY10-Q2 | FY09-Q2 | FY10-Q2 cum. | FY09-Q2 cum. |
|---|---|---|---|---|---|
| Revenue | (4) | 44,964 | 48,060 | 79,399 | 108,482 |
| Other operating income | 316 | 201 | 575 | 796 | |
| Changes in finished and unfinished goods and work in progress | 1,296 | 12,280 | 3,700 | 13,005 | |
| Cost of material and other production services | -21,847 | -30,636 | -38,282 | -58,998 | |
| Staff costs | -12,908 | -12,458 | -27,225 | -25,607 | |
| Amortization of intangible assets and depreciation of property, plant and | |||||
| equipment | -2,005 | -1,034 | -3,856 | -1,952 | |
| Other operating expenses | -8,788 | -9,335 | -18,814 | -17,388 | |
| Operating result | (4) | 1,027 | 7,077 | -4,502 | 18,338 |
| Finance income | 2,962 | 2,396 | 6,981 | 8,170 | |
| Finance costs | -1,154 | -2,255 | -1,921 | -3,845 | |
| Financial result | 1,808 | 141 | 5,060 | 4,325 | |
| Result from associates | 406 | 0 | 549 | 0 | |
| Profit before income taxes | 3,241 | 7,218 | 1,107 | 22,663 | |
| Income taxes | (11) | 466 | -1,161 | 1,068 | -5,421 |
| Profit for the period | 3,707 | 6,056 | 2,176 | 17,243 | |
| Other comprehensive income for the period | |||||
| Gains/losses recognized directly in equity: | |||||
| Available for sale financial assets | 1,140 | -607 | 794 | -528 | |
| Effects from disproportionate capital increase at associates | 79 | 0 | 79 | 0 | |
| Currency translation differences | 1,408 | -700 | 1,130 | -980 | |
| Income tax relating to components of other comprehensive income | -285 | 152 | -199 | 132 | |
| Other comprehensive income for the period net of tax | (12) | 2,342 | -1,155 | 1,805 | -1,376 |
| Total comprehensive income for the period | 6,049 | 4,901 | 3,980 | 15,866 | |
| Profit attributable to: | |||||
| Equity holders of the company | 2,856 | 5,426 | 652 | 15,752 | |
| Minority interest | 851 | 630 | 1,524 | 1,490 | |
| 3,707 | 6,056 | 2,176 | 17,243 | ||
| Total comprehensive income attributable to: | |||||
| Equity holders of the company | 4,748 | 4,351 | 2,229 | 14,346 | |
| Minority interest | 1,301 | 550 | 1,751 | 1,520 | |
| 6,049 | 4,901 | 3,980 | 15,866 | ||
| Earnings per share from the profit for the period attributable to the equity | |||||
| holders of the company (in EUR per share) | 0.23 | 0.44 | 0.05 | 1.29 |
Earnings per share related to 12.2 million shares.
The notes on the following pages form an integral part of this condensed interim financial information.
*) The condensed consolidated interim report has neither been audited nor been reviewed by an auditor.
| All amounts in TEUR | Note | 30 Sept 2009 | 31 March 2009 |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Property, plant and equipment | (5) | 15,918 | 16,887 |
| Intangible assets | (5) | 28,106 | 26,089 |
| Shares in associates | (6) | 13,537 | 12,302 |
| Other non-current financial assets and investments | 3,862 | 3,784 | |
| Other non-current assets | 10,015 | 18,423 | |
| Deferred tax assets | 9,079 | 8,242 | |
| 80,517 | 85,728 | ||
| Current assets | |||
| Inventories | 38,464 | 34,220 | |
| Trade receivables and other current assets | 102,182 | 140,409 | |
| Other current financial assets | 4,512 | 3,946 | |
| Cash and cash equivalents | 42,034 | 60,230 | |
| 187,192 | 238,804 | ||
| TOTAL ASSETS | 267,709 | 324,532 | |
| EQUITY AND LIABILITIES | |||
| Equity | |||
| Share capital | (7) | 12,200 | 12,200 |
| Capital reserve | 70,077 | 70,077 | |
| Retained earnings and other reserves | 45,765 | 47,769 | |
| 128,042 | 130,046 | ||
| Minority interests | 1,986 | 4,194 | |
| Total equity | 130,028 | 134,240 | |
| Non-current liabilities | |||
| Non-current financial liabilities | (8) | 10,060 | 10,060 |
| Liabilities from post-employment benefits to employees | (9) | 13,998 | 14,214 |
| Non-current provisions | (10) | 524 | 524 |
| Other non-current liabilities | 11,070 | 14,773 | |
| Deferred tax liability | 1,756 | 1,870 | |
| 37,408 | 41,442 | ||
| Current liabilities | |||
| Trade and other current payables | 43,372 | 56,253 | |
| Other liabilities and deferred income | 22,406 | 25,316 | |
| Current tax payables | 6,357 | 7,449 | |
| Current financial liabilities | (8) | 18,889 | 49,210 |
| Current provisions | (10) | 9,249 | 10,623 |
| 100,274 | 148,851 | ||
| Total liabilities | 137,682 | 190,293 | |
| TOTAL EQUITY AND LIABILITIES | 267,709 | 324,532 |
The notes on the following pages form an integral part of this condensed interim financial information.
| All amounts in TEUR | ||||||
|---|---|---|---|---|---|---|
| Attributable to equity holders of the company | Minority interest | Total equity | ||||
| Share capital | Capital reserve | Consolidated retained earnings & other reserves |
||||
| Carrying amount as of 31 March 2009 | 12,200 | 70,077 | 47,769 | 4,194 | 134,240 | |
| Dividend relating to 2008/09 | -6,100 | -2,093 | -8,193 | |||
| Total comprehensive income | 2,229 | 1,751 | 3,980 | |||
| Carrying amount as of 30 September 2009 |
12,200 | 70,077 | 43,898 | 3,852 | 130,028 | |
| Carrying amount as of 31 March 2008 | 12,200 | 70,077 | 48,976 | 2,123 | 133,377 | |
| Dividend relating to 2007/08 | -10,980 | 0 | -10,980 | |||
| Total comprehensive income | 14,346 | 1,520 | 15,866 | |||
| Carrying amount as of 30 September 2008 |
12,200 | 70,077 | 52,343 | 3,643 | 138,263 |
The notes on the following pages form an integral part of this condensed interim financial information.
| Cash flow from operating activities Operating result 1,027 7,077 -4,502 18,338 Adjustments for non-cash items and other reconciliations: Depreciation and amortisation 2,005 1,034 3,856 1,952 Increase/decrease in obligations for post-employment benefits -108 -109 -217 -140 Change in other non-current liabilities and provisions 0 -1,143 0 -1,160 Increase/decrease in non-current trade payables -4,049 303 -3,703 1,394 Increase/decrease in non-current trade receivables 4,897 -14,199 8,394 -12,748 Other (net) 2,585 -1,488 5,774 2,267 6,357 -8,525 9,600 9,903 Changes in net current assets: Increase/decrease in trade receivables and other assets 682 54,633 38,227 20,547 Increase/decrease in inventories 1,619 -5,874 -4,244 -2,032 Increase/decrease in trade payables and other current payables -4,926 9,941 -15,791 15,777 Increase/decrease in current provisions -1,129 -5,013 -1,374 -1,951 -3,754 53,687 16,818 32,341 Cash flow from operations 2,603 45,161 26,418 42,244 Interest received 83 896 263 1,282 Interest payments -627 -986 -1,252 -1,924 Net payments of income taxes -2,585 123 -974 -3,335 Net cash flow from operating activities -526 45,194 24,455 38,268 Cash flow from investing activities Purchases of property, plant and equipment -852 -4,208 -1,551 -5,002 Purchases of non-current intangible assets -815 -1,837 -4,335 -5,365 Purchases of securities and investments 0 -343 0 -343 Payments for acquisition of companies (net of cash acquired) 0 -10,775 0 -10,775 Proceeds from disposal of property, plant and equipment and intangible assets 2 502 1 571 Net cash flow from investing activities -1,666 -16,661 -5,886 -20,914 Cash flow from financing activities Dividends paid to equity holders of the company -6,100 -10,980 -6,100 -10,980 Dividends paid to minority shareholders of group companies -2,093 0 -2,093 0 Increase/decrease in other non-current financial liabilities 0 -18,620 0 -2,869 Increase/decrease in current financial liabilities -9,413 19,748 -30,320 26,384 Net cash flow from financing activities -17,606 -9,853 -38,513 12,536 Net decrease/increase in cash and cash equivalents -19,797 18,681 -19,944 29,890 Change in cash and cash equivalents Cash and cash equivalents at beginning of period 60,558 58,654 60,230 47,429 Net decrease/increase in cash and cash equivalents -19,797 18,681 -19,944 29,890 |
All amounts in TEUR | FY10-Q2 | FY09-Q2 | FY10-Q2 cum. | FY09-Q2 cum. |
|---|---|---|---|---|---|
| Exchange gains/losses on cash and cash equivalents 1,273 200 1,748 216 |
|||||
| Cash and cash equivalents at end of period 42,034 77,535 42,034 77,535 |
The notes on the following pages form an integral part of this condensed interim financial information.
The Kapsch TrafficCom Group is an international supplier of innovative road traffic telematics solutions.
The business activities of the Kapsch TrafficCom Group are subdivided into the following three segments:
The Road Solution Projects segment relates to the installation of road traffic telematics solutions.
The Services, System Extensions, Components Sales segment relates to the sale of services (maintenance as well as operation) and components in the area of traffic telematics solutions.
The Others segment relates to non-core business activities conducted by the subsidiary Kapsch Components KG. In this segment, Kapsch TrafficCom Group offers engineering solutions, electronic manufacturing and logistics services to affiliated entities and third parties.
This condensed interim financial information for the first half of the current fiscal year 2009/10 ended 30 September 2009 has been prepared in accordance with IAS 34 "Interim financial reporting". The interim condensed financial report should be read in conjunction with the annual financial statements for the year ended 31 March 2009.
Except for new or amended IFRSs and IFRICs listed below the accounting policies adopted are consistent with those of the annual financial statements for the year ended 31 March 2009, as described in the annual financial statements for the year ended 31 March 2009.
In this condensed interim financial information report for the first half of FY10 the following new or amended IFRSs and IFRICs have been adopted:
| New IFRSs/IFRICs | Mandatory for accounting periods beginning on or after |
|
|---|---|---|
| IFRS 8 | Operating segments | 1 January 2009 |
| IFRIC 12 | Service concession agreements (*) | 30 March 2009 |
| IFRIC 13 | Customer loyalty programs (*) | 1 January 2009 |
| Amended IFRSs | Mandatory for accounting periods beginning on or after |
|
|---|---|---|
| IAS 1 (R) | Presentation of Financial Statements | 1 January 2009 |
| IAS 23 (R) | Borrowing Costs (*) | 1 January 2009 |
| IAS 32 and 1 | Puttable Financial Instruments and Obligations Arising on Liquidation (*) | 1 January 2009 |
The standards and interpretations marked with (*) had no effect on the condensed interim financial information for the first half of fiscal year 2009/10 ending 30 September 2009.
All amounts in TEUR
| FY10-Q2 | RSP | SEC | OTH | Consolidated Group |
|---|---|---|---|---|
| Revenues | 10,658 | 65,081 | 3,660 | 79,399 |
| Operating result | -14,363 | 9,909 | -48 | -4,502 |
| 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 |
The following table contains all single external customers which contributed more than 10% to the total revenues of the period and additionally shows the information of the attributed operating segment.
| FY10-Q2 | FY09-Q2 | |||||
|---|---|---|---|---|---|---|
| All amounts in TEUR | Revenue | RSP | SEC | Revenue | RSP | SEC |
| Customer 1 | 33,465 | x | x | 51,961 | x | x |
| Customer 2 | 11,960 | x | 13,606 | x |
| All amounts in TEUR | Tangible and intangible assets |
|---|---|
| Carrying amount as of 31 March 2009 | 42,976 |
| Additions | 5,887 |
| Change in consolidated entities | 0 |
| Disposals | -3 |
| Depreciation and amortization | -3,909 |
| Currency translation differences | -926 |
| Carrying amount as of 30 September 2009 | 44,024 |
| Carrying amount as of 31 March 2008 | 14,785 |
| Additions | 20,974 |
| Change in consolidated entities | 480 |
| Disposals | -571 |
| Depreciation and amortization | -1,240 |
| Currency translation differences | -32 |
| Carrying amount as of 30 September 2008 | 34,397 |
| All amounts in TEUR | |
|---|---|
| Carrying amount as of 31 March 2009 | 12,302 |
| Share of profit for the period | 549 |
| Currency translation differences | 607 |
| Effects from disproportionate capital increase | 79 |
| Carrying amount as of 30 September 2009 | 13,537 |
In January 2009 the Group acquired a share of 20.47% in Q-Free ASA, Norway. The purchase price of TEUR 12,302 included goodwill in the amount of TEUR 4,905. In the first half of the current fiscal year ended 30 September 2009, a minor dilution of equity to 20.10% occurred.
The registered share capital of the company amounts to EUR 12,200,000. The share capital is fully paid in. The total number of ordinary shares is 12,200,000. The shares are ordinary bearer shares and have no par value.
| All amounts in TEUR | 30 Sept 2009 | 31 March 2009 | 30 Sept 2008 | 31 March 2008 |
|---|---|---|---|---|
| Non-current | 10,060 | 10,060 | 7,713 | 10,581 |
| Current | 18,889 | 49,210 | 43,727 | 17,382 |
| Total | 28,949 | 59,270 | 51,440 | 27,963 |
Movements in borrowings is analysed as follows:
| Carrying amount as of 31 March 2009 | 59,270 |
|---|---|
| Additions | 415 |
| Repayments of borrowings | -32,112 |
| Currency translation differences | 1,376 |
| Carrying amount as of 30 September 2009 | 28,949 |
| Carrying amount as of 31 March 2008 | 27,963 |
| Additions | 44,217 |
| Repayments of borrowings | -21,252 |
| Currency translation differences | 512 |
| Carrying amount as of 30 September 2008 | 51,440 |
| All amounts in TEUR | 30 Sept 2009 | 31 March 2009 | 30 Sept 2008 | 31 March 2008 |
|---|---|---|---|---|
| Severance payments | 5,158 | 5,294 | 4,940 | 5,001 |
| Pension benefits | 8,840 | 8,920 | 9,009 | 9,088 |
| Total | 13,998 | 14,214 | 13,949 | 14,089 |
The obligation to set up a provision for severance payments is based on the respective labor law.
Liabilities for pension benefits recognised at the balance sheet date relate to retirees only. All pension agreements are based on past service cost and are not covered by external plan assets (funds). In addition, contributions are paid to an external pension fund for employees of the Group.
| All amounts in TEUR | 30 Sept 2009 | 31 March 2009 | 30 Sept 2008 | 31 March 2008 |
|---|---|---|---|---|
| Non-current provisions | 524 | 524 | 533 | 1,694 |
| Current provisions | 9,249 | 10,623 | 16,299 | 18,250 |
| Total | 9,773 | 11,147 | 16,832 | 19,943 |
| All amounts in TEUR | 31 March 2009 | Change in consolidated entities |
Utilization/ disposal |
Addition | Currency translation differences |
30 Sept 2009 |
|---|---|---|---|---|---|---|
| Obligations from anniversary bonuses | 524 | 0 | -13 | 13 | 0 | 524 |
| Non-current provisions, total | 524 | 0 | -13 | 13 | 0 | 524 |
| Warranties | 1,820 | 0 | -309 | 0 | 54 | 1,565 |
| Losses from pending transactions and repairs |
934 | 0 | -100 | 0 | 0 | 834 |
| Legal fees, costs of litigation and | ||||||
| contract risks | 3,228 | 0 | -1,138 | 33 | 81 | 2,205 |
| Other | 4,640 | 0 | -3,767 | 3,629 | 142 | 4,645 |
| Current provisions, total | 10,623 | 0 | -5,314 | 3,663 | 277 | 9,249 |
| Total | 11,147 | 0 | -5,327 | 3,676 | 277 | 9,773 |
| All amounts in TEUR | 31 March 2008 | Change in consolidated entities |
Utilization/ disposal |
Addition | Currency translation differences |
30 Sept 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 |
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.
As a result of the low result before tax in the first half year of FY10, tax allowances and permanent differences have a disproportional effect on the effectice tax rate of the period, resulting in disclosure of a tax income despite the positive result before taxes. For the full year FY10, management expects an effective tax rate of app. 25% (full year FY09: 25.2 %).
| FY10-Q2 All amounts in TEUR |
Before tax | Tax (charge) credit | After tax |
|---|---|---|---|
| Fair value gains/losses relating to available-for-sale financial assets: | |||
| Fair value gains/losses not realized in the current period | 794 | -199 | 596 |
| Fair value gains/losses realized in the income statement | 0 | 0 | 0 |
| Effects from disproportionate capital increase at associates | 79 | 0 | 79 |
| Currency translation differences | 1,130 | 0 | 1,130 |
| Fair value gains/losses recognized in equity | 2,003 | -199 | 1,805 |
| FY09-Q2 All amounts in TEUR |
Before tax | Tax (charge) credit | After tax |
|---|---|---|---|
| Fair value gains/losses relating to available-for-sale financial assets: | |||
| Fair value gains/losses not realized in the current period | -528 | 132 | -396 |
| Fair value gains/losses realized in the income statement | 0 | 0 | 0 |
| Currency translation differences | -980 | 0 | -980 |
| Fair value gains/losses recognized in equity | -1,508 | 132 | -1,376 |
The Group's contingent liabilities primarily result from large scale projects. Other commitments mainly relate to contract and warranty bonds, bank guarantees, performance und bid bonds, sureties and acceptance of guarantees for subsidiaries vis-á-vis third parties.
Details of contingent liabilities and other commitments are as follows:
| All amounts in TEUR | 30 Sept 2009 | 31 March 2009 |
|---|---|---|
| Contract, warranty, performance and bid bonds: | ||
| City highway Santiago | 1,366 | 846 |
| City highway Sydney and Melbourne | 1,164 | 1,593 |
| Truck tolling system Austria | 12,500 | 12,500 |
| Truck tolling system Czech Republic | 9,688 | 19,938 |
| Tolling system New Zealand | 2,047 | 2,025 |
| Express Toll Collection System, Maryland, USA | 0 | 3,317 |
| Other | 5,055 | 5,338 |
| 31,819 | 45,557 | |
| Bank guarantees | 2,979 | 3,486 |
| Sureties | 27 | 30 |
| Total | 34,825 | 49,073 |
| All amounts in TEUR | Sales to related parties Q2 (cum.) |
Sales from related parties Q2 (cum.) |
Amounts owed by related parties 30 Sept |
Amounts owed to related parties 30 Sept |
|
|---|---|---|---|---|---|
| Affiliated companies outside the | FY10 | 722 | 4,721 | 4,457 | 1,469 |
| Kapsch TrafficCom Group | FY09 | 694 | 5,837 | 574 | 1,154 |
| Others | FY10 | 1 | 1,789 | 0 | 9,173 |
| FY09 | 27 | 757 | 0 | 10,397 |
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.
No material events occurred after 30 September 2009.
Vienna, 25 November 2009
Management Board
Georg Kapsch, CEO Erwin Toplak, COO
Kapsch TrafficCom is an international supplier of innovative road traffic telematics solutions. Its principle business is the development and supply of electronic toll collection (ETC) systems, in particular for the multi-lane free-flow (MLFF) of the traffic, and the technical and commercial operation of such systems. Kapsch TrafficCom also supplies traffic management systems, with a focus on road safety and traffic control, and electronic access systems and parking management. With more than 230 references in 38 countries in all 5 continents, and with almost 16 million delivered on-board units (OBUs) and 12,000 equipped lanes, Kapsch TrafficCom has positioned itself among the leading suppliers of ETC systems worldwide. Kapsch TrafficCom is headquartered in Vienna, Austria, and has subsidiaries and representative offices in 23 countries.
Kapsch TrafficCom AG I Am Europlatz 2 I A-1120 Vienna, Austria I www.kapschtraffic.com Investor Relations I Marcus Handl I Phone: +43 (0)50811 1120 I Fax: +43 (0)50811 99 1120 I E-Mail: [email protected] Public Relations I Brigitte Herdlicka I Phone: +43 (0)50811 1710 I Fax: +43 (0)50811 99 1710 I E-Mail: [email protected]
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