Quarterly Report • Aug 19, 2013
Quarterly Report
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always one step ahead
| Earnings Data | 2013/14 Q1 | 2012/13 Q1 (adjusted) |
+/- | 2012/13 (adjusted) |
|
|---|---|---|---|---|---|
| Revenues | in million EUR | 121.4 | 106.4 | 14% | 488.9 |
| EBITDA | in million EUR | 7.7 | -1.3 | – | 34.2 |
| EBITDA margin | in % | 6.3 | -1.3 | 7.0 | |
| EBIT | in million EUR | 3.7 | -5.2 | – | 16.5 |
| EBIT margin | in % | 3.1 | -4.9 | 3.4 | |
| Profit before tax | in million EUR | -1.5 | -5.8 | 74% | 17.0 |
| Profit for the period | in million EUR | -1.0 | -4.3 | 77% | 16.8 |
| Earnings per share 1 | in EUR | -0.23 | -0.45 | 50% | 0.74 |
| Free cash flow 2 | in million EUR | -37.2 | 74.6 | – | 48.3 |
| Capital expenditure 3 | in million EUR | 4.5 | 2.4 | 88% | 20.2 |
| Employees 4 | 3,094 | 2,643 | 17% | 3,013 | |
| On-board units delivered | in million units | 2.33 | 1.69 | 38% | 9.28 |
| Business Segments | 2013/14 Q1 | 2012/13 Q1 (adjusted) |
+/- | 2012/13 (adjusted) |
|
| Road Solution Projects (RSP): | |||||
| Revenues (share of total revenues in %) | in million EUR | 36.5 (30.1%) | 34.9 (32.8%) | 5% | 128.3 (26.2%) |
| EBIT (EBIT margin) | in million EUR | -1.6 (-4.3%) |
-7.2 (-20.6%) | 78% | -51.7 (-40.3%) |
| Services, System Extensions, Components Sales (SEC): | |||||
| Revenues (share of total revenues in %) | in million EUR | 80.8 (66.6%) | 67.7 (63.6%) | 19% | 342.3 (70.0%) |
| EBIT (EBIT margin) | in million EUR | 5.1 (6.4%) |
1.9 (2.8%) |
176% | 67.3 (20.3%) |
| Others (OTH): | |||||
| Revenues (share of total revenues in %) | in million EUR | 4.1 (3.4%) |
3.8 (3.6%) |
8% | 18.3 (3.7%) |
| EBIT (EBIT margin) | in million EUR | 0.1 (3.4%) |
0.1 (2.1%) |
76% | 0.9 (5.1%) |
| Regions | 2013/14 Q1 | 2012/13 Q1 | +/- | 2012/13 | |
| Austria 5 | in million EUR | 7.3 (6.0%) |
7.8 (7.3%) |
-6% | 38.0 (7.8%) |
| Europe 5 | in million EUR | 74.0 (61.0%) | 66.6 (62.7%) | 11% | 288.9 (59.1%) |
| Americas 5 | in million EUR | 15.8 (13.0%) | 9.4 (8.8%) |
68% | 74.8 (15.3%) |
| Rest of World5 | in million EUR | 24.3 (20.0%) | 22.5 (21.2%) | 8% | 87.2 (17.8%) |
| Balance Sheet Data | 30 June 2013 | 30 June 2012 (adjusted) |
+/- | 31 March 2013 (adjusted) |
|
| Total assets | in million EUR | 567.4 | 499.0 | 14% | 567.2 |
| Total equity 6 | in million EUR | 217.1 | 244.5 | -11% | 236.7 |
| Equity ratio 6 | in % | 38.3 | 49.0 | 41.7 | |
| Net assets (+)/debt (-) | in million EUR | -85.3 | 0.2 | – | -40.5 |
| Capital employed | in million EUR | 368.1 | 330.2 | 11% | 360.7 |
| Net working capital | in million EUR | 274.8 | 199.1 | 38% | 243.9 |
| Stock Exchange Data 7 | 2013/14 Q1 | 2012/13 Q1 | +/- | 2012/13 | |
| Number of shares 7 | in million | 13.0 | 13.0 | 0% | 13.0 |
| Free float 7 | in % | 38.1 | 38.1 | 0% | 38.1 |
| Ø daily trading volume 8 | in shares | 25,380 | 13,752 | 85% | 25,510 |
| Closing price 7 | in EUR | 36.98 | 58.89 | -37% | 37.0 |
| Market capitalization 7 | in million EUR | 480.74 | 765.57 | -37% | 481.3 |
| Share performance | in % | -0.11 | -7.26 | -41.7 |
The renewed IAS 19R were applied beginning with the fiscal year 2013/14 retrospectively according to IAS 8 with effect from 1 April 2012 to provide comparable financial information.
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 Each Q1 as of 30 June, 2012/13 as of 31 March 2013
5 Revenues (share of total revenues in %); Europe excl. Austria
6 Incl. minority interests
7 Each Q1 as of 30 June, 2012/13 as of 31 March 2013; for
additional information on the shares see page 5
8 average daily trading volume (double counting)
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.
Georg Kapsch, Chief Executive Officer
The first quarter of fiscal year 2013/14 for the Kapsch TrafficCom Group was marked by progress in existing projects. Without a doubt, one highlight was the major project in Belarus with phase 1 entering technical operation on July 1st and commercial operation on August 1st. In addition, we moved forward with the projects in France, Australia and Texas, all of which should see implementation largely completed by the end of fiscal year 2013/14.
As always, the ongoing operation of systems contributed strongly to the results. For several quarters now, this has also included the nationwide system in Poland, which – after initial difficulties arising from the short implementation time – now contributes impressively to revenue and earnings.
On this basis, the Kapsch TrafficCom Group achieved revenue in the first quarter of 2013/14 amounting to EUR 121.4 million. This increase of 14% over the same quarter of the previous year is due primarily to the installation project in Belarus and the operation and further expansion of the Polish system.
The EBIT, which was negative in the first quarter of the previous year at EUR -5.2 million was EUR 3.7 million in the reporting period. The profit before tax and the earnings per share were still negative as the financial result decreased to EUR -5.3 million due to exchange rate fluctuations that negatively impacted the conversion of the group-internal financing measures as at the key date. This result is not exceptional but it represents a significant improvement over the previous year – even despite the burden of the continued delay in commissioning of the system in South Africa.
Shortly after the end of the quarter, in the second half of July – the business developments of Kapsch TrafficCom were overshadowed by media reports of further delays and supposed difficulties in connection with the toll system we installed in the South African province of Gauteng. The fact is that the situation there has remained unchanged since the end of 2012. The conditions for commissioning of the system have been established; it remains only for the corresponding law to be signed by the President of South Africa and for the starting date to be announced. South Africa's new Minister of Transportation recently also spoke in support of the system on behalf of the government and emphasized its importance in connection with financing and maintaining infrastructure.
The toll system is completed and the installation has largely been paid for. We have also reached an agreement with our customer concerning reimbursement for the costs of maintaining operational readiness. However, the facts that we are not receiving operating revenue and that not all of our costs are being reimbursed mean that the project currently detracts significantly from the results of Kapsch TrafficCom.
In Belarus, Kapsch TrafficCom received an order for the installation and the operation over 20 years of a nationwide electronic toll collection system a little over one year ago. The first expansion phase – to an initial 815 kilometers of road – was completed within the quarter under report, and technical operation began on July 1st. A fluid transition to the 2nd expansion phase took place at the same time. Each individual phase is prefinanced by Kapsch TrafficCom and paid for within three years as of the start of operation.
In Slovenia, the tender for an electronic toll collection system for trucks, for which we were the only bidder, was annulled at the start of July. This was already the second canceled tender in the past three years. It remains to be seen how the situation will develop further, although we do expect another tender.
We have achieved yet another success in North America. After our contract with the E-ZPass Group, which operates the world's largest interoperable toll system in 14 US states, was extended in July 2011, Kapsch TrafficCom received in June 2013 a new five-year order from the Canadian toll authority Cantoll. In this project, we will be supplying the next generation of on-board units for highway 407 ETR Toronto metropolitan region. This should secure the high volume of on-board units in North America for the coming years.
In Chile, we were entrusted with a traffic management system for the access road to the world's largest copper mine. This order shows – even if only on a small scale – the increasing importance of intelligent transportation systems (ITS).
The balance sheet of the Kapsch TrafficCom Group at the end of the first quarter of 2013/14 reflected the progress and the prefinancing of the project in Belarus: Both receivables and financial liabilities increased relative to the balance sheet date of 31 March 2013, as did the net working capital. The free cash flow is again negative at EUR -37.2 million, in contrast to the previous quarters. With the conclusion of the first expansion phase, payment by our customer has now begun.
The next quarters will be characterized by the continuation of our existing orders. The next expansion phase in Belarus should go into operation toward the end of our fiscal year in spring 2014. Then phase 3 begins, which entails a further expansion of the system by 1,500 km. The implementation of our ongoing projects in France, Australia and Texas should be largely completed by the end of the fiscal year.
We look forward with great interest to the coming developments in South Africa as well as Slovenia, and we also expect additional invitations to tender. In parallel to this, we are also actively contacting possible interested parties for toll systems, an approach that already proved successful in Belarus. These efforts are also meeting with great interest in other countries. With our ITS strategy and the new company structure, we consider ourselves well-positioned for all growth opportunities.
Sincerely,
Georg Kapsch Chief Executive Officer
The Kapsch TrafficCom shares are listed on the Vienna Stock Exchange and included in the ATX Prime Index as well as the Austrian sustainability index VÖNIX. During the reporting period, they were also integrated into the ATX Global Players Index, which has been tracked by the Vienna Stock Exchange since 13 May 2013. After the share price experienced a massive decline in the previous fiscal year to EUR 37.02 as at 31 March 2013, it remained stable over the first three months of the current fiscal year – albeit with high volatility. At the end of the quarter on 30 June 2013, the price was EUR 36.98. The price of the Kapsch TrafficCom shares thereby developed during the quarter under report similarly to the international stock exchange trends and performed somewhat better than the ATX Prime Index, which fell by roughly 5%. At the end of July 2013, however, the price did fall by roughly 15% within a short time after media reports concerning South Africa until a clarification of the facts by the CEO put an end to this downward trend.
The number of shares is 13 million. KAPSCH-Group Beteiligungs GmbH holds 61.9% of the shares, and the remaining 38.1% are in free float (including the shares of Erwin Toplak, COO). On 30 June 2013, Kapsch TrafficCom had a market capitalization of EUR 480.7 million based on the final share price of EUR 36.98.
The final price of the Kapsch TrafficCom shares and final value of the ATX Prime Index on 31 March 2013, both indexed to 100.
| Information on the Shares | Financial Calendar | ||
|---|---|---|---|
| Investor Relations Officer | Marcus Handl | 12 September 2013 | Ordinary Shareholders' Meeting for Fiscal Year 2012/13 |
| Shareholders' Telephone | +43 50811 1120 | 19 September 2013 | Deduction of dividends for Fiscal Year 2012/13 (ex-day) |
| [email protected] | 26 September 2013 | First day of payment for Fiscal Year 2012/13 dividends | |
| Website | www.kapschtraffic.com | 27 November 2013 | Interim financial report Fiscal Year 2013/14 Q2 |
| Stock Exchange | Vienna, Prime Market | 26 February 2014 | Interim financial report Fiscal Year 2013/14 Q3 |
| ISIN | AT000KAPSCH9 | 25 June 2014 | Results Fiscal Year 2013/14 |
| Trading Symbol | KTCG | 10 September 2014 | Ordinary Shareholders' Meeting for Fiscal Year 2013/14 |
| Reuters | KTCG.VI | 17 September 2014 | Deduction of dividends for Fiscal Year 2013/14 (ex-day) |
| Bloomberg | KTCG AV | 24 September 2014 | First day of payment for Fiscal Year 2013/14 dividends |
The revenues of Kapsch TrafficCom Group were EUR 121.4 million in the first quarter of the current fiscal year 2013/14, up by 14.1 % from EUR 106.4 million in the same period of the previous fiscal year. Revenues increased in the Road Solution Projects (RSP) segment and the Services, System Extensions, Components Sales (SEC) segment.
Revenues by segment in the first three months were as follows:
The number of on-board units sold amounted to 2.33 million (2012/13 Q1: 1.69 million). The initial delivery of on-board units for the nationwide toll project in Belarus took place in the quarter under report. The sales in North America, Mexico and Chile also increased.
n The segment Others (OTH) recorded revenues of EUR 4.1 million (2012/13 Q1: EUR 3.8 million), an increase of 7.6%. This increase resulted from the production and deliveries for the GSM-R project of Kapsch CarrierCom.
In the first three months of the current fiscal year, the Kapsch TrafficCom Group reported an operating result (EBIT) of EUR 3.7 million (2012/13 Q1: EUR -5.2 million). Operating results by segment were as follows:
n The segment OTH exhibited an EBIT of EUR 0.1 million (2012/13 Q1: EUR 0.1 million).
The financial result decreased from EUR -0.5 million in the comparison period of the previous year to EUR -5.3 million. The finance income declined due to lower foreign exchange gains, which are to a large extent still unrealized. The finance costs experienced an increase in the as yet unrealized foreign exchange losses. In both cases, the changes can be attributed to exchange rate fluctuations that negatively impacted the conversion of the group-internal financing measures of the subsidiaries in North America and South Africa as at the key date.
The balance sheet total on 30 June 2013 of EUR 567.4 million was nearly unchanged from the total at the end of the last fiscal year 31 March 2013 (31 March 2013: EUR 567.2 million). The total equity of EUR 217.1 million was EUR 19.6 million below the comparison value at the end of the fiscal year of EUR 236.7 million. Due to the decreased total equity, the equity ratio of the Kapsch TrafficCom Group declined from 41.7% on 31 March 2013 to 38.3% on 30 June 2013.
The most significant changes in assets involved the non-current assets. The other non-current assets increased by EUR 17.0 million, largely due to the non-current share of the receivables from the Belarus installation project. On the other hand, the non-current assets were negatively impacted by the decline of EUR 12.4 million in other non-current financial assets and investments due primarily to the change in the fair value of the investment in Q-Free ASA, Norway. Under current assets, the trade receivables increased by EUR 16.2 million, primarily as a result of the project business.
On the liabilities side of the balance sheet, the largest change occurred in non-current financial liabilities, which increased by EUR 21.0 million due to financing the installation of the nationwide electronic truck toll system in Belarus.
The net cash flow from operating activities amounted to EUR -33.3 million. The operating result was therefore unable to compensate for the increase in current and non-current receivables and assets. The cash flow from investing activities was determined in the first quarter of fiscal year 2013/14 by the setup of the Belarusian company and ongoing replacement investments, leaving the free cash flow negative at EUR -37.2 million. The increase in the current and non-current financial liabilities primarily from project financing compensated for the dividends paid out to minority shareholders of group companies, leading to a positive net cash flow from financing activities of EUR 20.8 million.
Cash and cash equivalents declined from EUR 79.0 million as of 31 March 2013 to EUR 61.1 million as of 30 June 2013. The increase in non-current financial liabilities and the decline in cash and cash equivalents led to an increase in net debt from EUR 40.5 million on 31 March 2013 to EUR 85.3 million on 30 June 2013.
Kapsch TrafficCom Group – Consolidated statement of comprehensive income.
| All amounts in TEUR | Note | 2013/14 Q1 | 2012/13 Q1 (adjusted) |
2013/14 Q1 cum. |
2012/13 Q1 cum. (adjusted) |
|---|---|---|---|---|---|
| Revenues | (4) | 121,384 | 106,369 | 121,384 | 106,369 |
| Other operating income | 3,903 | 2,811 | 3,903 | 2,811 | |
| Changes in finished and unfinished goods and work in progress | 7,014 | 4,775 | 7,014 | 4,775 | |
| Cost of materials and other production services | -66,591 | -63,130 | -66,591 | -63,130 | |
| Staff costs | -34,824 | -32,427 | -34,824 | -32,427 | |
| Amortization of intangible assets and depreciation of property, plant and equipment |
-3,955 | -3,919 | -3,955 | -3,919 | |
| Other operating expenses | -23,213 | -19,729 | -23,213 | -19,729 | |
| Operating result | (4) | 3,718 | -5,249 | 3,718 | -5,249 |
| Finance income | 976 | 2,785 | 976 | 2,785 | |
| Finance costs | -6,248 | -3,314 | -6,248 | -3,314 | |
| Financial result | -5,272 | -529 | -5,272 | -529 | |
| Results from associates and joint ventures | 35 | 0 | 35 | 0 | |
| Result before income tax | -1,519 | -5,779 | -1,519 | -5,779 | |
| Income taxes | (11) | 527 | 1,449 | 527 | 1,449 |
| Result for the period | -992 | -4,330 | -992 | -4,330 |
| All amounts in TEUR | Note | 2013/14 Q1 | 2012/13 Q1 (adjusted) |
2013/14 Q1 cum. |
2012/13 Q1 cum. (adjusted) |
|---|---|---|---|---|---|
| Other comprehensive income for the period: | |||||
| Items that may be reclassified to the result for the period: | |||||
| Currency translation differences | -2,347 | -2,133 | -2,347 | -2,133 | |
| Available-for-sale financial assets | -9,986 | -2,272 | -9,986 | -2,272 | |
| Income tax relating to items that will be reclassified to the result for the period |
-11 | -93 | -11 | -93 | |
| Total items that may be reclassified to the result for the period | -12,344 | -4,498 | -12,344 | -4,498 | |
| Items that will not be reclassified to the result for the period: | |||||
| Actuarial gains/losses according to IAS 19 | 0 | -509 | 0 | -509 | |
| Income tax relating to items that will not be reclassified to the result for the period |
0 | 128 | 0 | 128 | |
| Total items that will not be reclassified to the result for the period | 0 | -380 | 0 | -380 | |
| Other comprehensive income for the period net of tax | (12) | -12,344 | -4,879 | -12,344 | -4,879 |
| Total comprehensive income for the period | -13,336 | -9,208 | -13,336 | -9,208 | |
| Result attributable to: | |||||
| Equity holders of the company | -2,976 | -5,905 | -2,976 | -5,905 | |
| Minority interests | 1,985 | 1,575 | 1,985 | 1,575 | |
| -992 | -4,330 | -992 | -4,330 | ||
| Total comprehensive income attributable to: | |||||
| Equity holders of the company | -14,596 | -10,357 | -14,596 | -10,357 | |
| Minority interests | 1,261 | 1,149 | 1,261 | 1,149 | |
| -13,336 | -9,208 | -13,336 | -9,208 | ||
| Earnings per share from the result for the period attributable to the equity holders of the company (in EUR) |
-0.23 | -0.45 | -0.23 | -0.45 |
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 | Note | 30 June 2013 | 31 March 2013 (adjusted) |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Property, plant and equipment | (5) | 25,265 | 24,676 |
| Intangible assets | (5) | 77,565 | 79,170 |
| Interests in associates and joint ventures | (5) | 1,643 | 1,694 |
| Other non-current financial assets and investments | (6) | 25,693 | 38,085 |
| Other non-current assets | 17,900 | 942 | |
| Deferred tax assets | 20,468 | 19,527 | |
| 168,534 | 164,094 | ||
| Current assets | |||
| Inventories | 63,752 | 66,428 | |
| Trade receivables and other current assets | 269,422 | 253,177 | |
| Other current financial assets | (6) | 4,575 | 4,505 |
| Cash and cash equivalents | 61,137 | 79,022 | |
| 398,887 | 403,132 | ||
| Total assets | 567,421 | 567,227 | |
| EQUITY | |||
| Capital and reserves attributable to equity holders of the company | |||
| Share capital | (7) | 13,000 | 13,000 |
| Capital reserve | 117,509 | 117,509 | |
| Retained earnings and other reserves | 79,483 | 94,080 | |
| 209,992 | 224,588 | ||
| Minority interests | 7,071 | 12,115 | |
| Total equity | 217,063 | 236,703 | |
| LIABILITIES | |||
| Non-current liabilities | |||
| Non-current financial liabilities | (8) | 125,332 | 104,372 |
| Liabilities from post-employment benefits to employees | (9) | 22,526 | 22,602 |
| Non-current provisions | (10) | 1,357 | 1,370 |
| Other non-current liabilities | 1,543 | 1,766 | |
| Deferred income tax liabilities | 11,779 162,536 |
11,752 141,861 |
|
| Current liabilities | |||
| Trade payables | 62,997 | 80,220 | |
| Other liabilities and deferred income | 70,391 | 52,520 | |
| Current tax payables | 1,538 | 8,031 | |
| Current financial liabilities | (8) | 25,720 | 19,658 |
| Current provisions | (10) | 27,175 | 28,233 |
| 187,822 | 188,663 | ||
| Total liabilities | 350,358 | 330,524 | |
| Total equity and liabilities | 567,421 | 567,227 |
The notes on the following pages form an integral part of this interim financial information.
| All amounts in TEUR | ||||||
|---|---|---|---|---|---|---|
| Attributable to equity holders of the company | Minority interests |
Total equity | ||||
| Share capital | Capital reserve |
Other reserves |
Consolidated retained earnings |
|||
| Carrying amount as of 31 March 2012 (adjusted) |
13,000 | 117,509 | 12,120 | 97,416 | 13,640 | 253,685 |
| Result for the period | -5,905 | 1,575 | -4,330 | |||
| Other comprehensive income for the period: |
||||||
| Currency translation differences | -1,707 | -426 | -2,133 | |||
| Fair value gains/losses on available-for-sale financial assets |
-2,365 | 0 | -2,365 | |||
| Actuarial gains/losses according to IAS 19 |
-380 | 0 | -380 | |||
| Carrying amount as of 30 June 2012 (adjusted) |
13,000 | 117,509 | 7,668 | 91,511 | 14,789 | 244,477 |
| Carrying amount as of 31 March 2013 (adjusted) |
13,000 | 117,509 | -1,424 | 95,503 | 12,115 | 236,703 |
| Dividend 2012/13 | 0 | -6,305 | -6,305 | |||
| Result for the period | -2,976 | 1,985 | -992 | |||
| Other comprehensive income for the period: |
||||||
| Currency translation differences | -1,623 | -724 | -2,347 | |||
| Fair value gains/losses on available-for-sale financial assets |
-9,997 | 0 | -9,997 | |||
| Carrying amount as of 30 June 2013 |
13,000 | 117,509 | -13,044 | 92,527 | 7,071 | 217,063 |
The notes on the following pages form an integral part of this interim financial information.
| All amounts in TEUR | 2013/14 Q1 | 2012/13 Q1 (adjusted) |
2013/14 Q1 cum. |
2012/13 Q1 cum. (adjusted) |
|---|---|---|---|---|
| Cash flow from operating activities | ||||
| Operating result | 3,718 | -5,249 | 3,718 | -5,249 |
| Adjustments for non-cash items and other reconciliations: | ||||
| Depreciation and amortization | 3,955 | 3,919 | 3,955 | 3,919 |
| Increase/decrease in obligations for post-employment benefits | -76 | -125 | -76 | -125 |
| Increase/decrease in other non-current liabilities and provisions | -208 | -2 | -208 | -2 |
| Increase/decrease in other non-current receivables and assets | -13,418 | -28 | -13,418 | -28 |
| Increase/decrease in trade receivables (non-current) | -1,175 | 360 | -1,175 | 360 |
| Increase/decrease in trade payables (non-current) | -87 | -418 | -87 | -418 |
| Other (net) | -3,913 | -1,693 | -3,913 | -1,693 |
| -11,205 | -3,237 | -11,205 | -3,237 | |
| Changes in net current assets: | ||||
| Increase/decrease in trade receivables and other assets | -18,917 | 90,470 | -18,917 | 90,470 |
| Increase/decrease in inventories | 2,676 | -4,316 | 2,676 | -4,316 |
| Increase/decrease in trade payables and other current payables | 648 | -12,644 | 648 | -12,644 |
| Increase/decrease in current provisions | -1,058 | 6,242 | -1,058 | 6,242 |
| -16,652 | 79,753 | -16,652 | 79,753 | |
| Cash flow from operations | -27,857 | 76,515 | -27,857 | 76,515 |
| Interest received | 393 | 354 | 393 | 354 |
| Interest payments | -1,600 | -1,451 | -1,600 | -1,451 |
| Net payments of income taxes | -4,208 | 1,559 | -4,208 | 1,559 |
| Net cash flow from operating activities | -33,271 | 76,978 | -33,271 | 76,978 |
| Cash flow from investing activities | ||||
| Purchase of property, plant and equipment | -3,786 | -1,790 | -3,786 | -1,790 |
| Purchase of intangible assets | -750 | -620 | -750 | -620 |
| Proceeds from the disposal of property, plant and equipment and intangible assets |
628 | 8 | 628 | 8 |
| Net cash flow from investing activities | -3,908 | -2,402 | -3,908 | -2,402 |
| Cash flow from financing activities | ||||
| Dividends paid to minority shareholders of group companies | -6,305 | 0 | -6,305 | 0 |
| Increase in non-current financial liabilities | 23,876 | 41 | 23,876 | 41 |
| Decrease in non-current financial liabilities | 0 | -20 | 0 | -20 |
| Increase in current financial liabilities | 3,543 | 111 | 3,543 | 111 |
| Decrease in current financial liabilities | -347 | -41,894 | -347 | -41,894 |
| Net cash flow from financing activities | 20,768 | -41,761 | 20,768 | -41,761 |
| Net increase/decrease in cash and cash equivalents | -16,411 | 32,814 | -16,411 | 32,814 |
| Change in cash and cash equivalents | ||||
| Cash and cash equivalents at beginning of period | 79,022 | 44,929 | 79,022 | 44,929 |
| Net increase/decrease in cash and cash equivalents | -16,411 | 32,814 | -16,411 | 32,814 |
| Exchange gains/losses on cash and cash equivalents | -1,474 | -387 | -1,474 | -387 |
| Cash and cash equivalents at end of period | 61,137 | 77,357 | 61,137 | 77,357 |
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:
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 & Co KG. In this segment, engineering solutions, electronic manufacturing and logistics services are offered to affiliated entities and third parties.
This condensed interim financial information for the first quarter of the current fiscal year 2013/14 ended 30 June 2013 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 2013.
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 2013, as described in the annual financial statements for the year ended 31 March 2013.
In the condensed interim financial information for the first quarter of the fiscal year 2013/14 the following new or amended IFRSs and IFRICs have been adopted.
| New/adopted IFRSs | applicable to financial years beginning on or after |
|
|---|---|---|
| IAS 19R | Employee Benefits | 1 January 2013 |
| IFRS 13 | Fair Value Measurement | 1 January 2013 |
| Amendment to IFRS 7 | Financial Instruments: Disclosures | 1 January 2013 |
| Amendment to IAS 1 | Presentation of items under other comprehensive income | 1 July 2012 |
Due to the revisions to IAS 19 the previously permissible deferral of actuarial gains and losses according to the corridor method, in which the actuarial gains were permitted to be recognized in profit or loss only if they amounted to 10% of the higher amount of the defined benefit obligation and the fair value of the plan assets, is no longer possible. Actuarial gains and losses are now fully recognized in other comprehensive income in the statement of comprehensive income. In addition, the group has adopted the new disclosure requirements.
In the course of applying IAS 19R the net interest amount is now disclosed within the financial result and no longer included in staff costs. This is the common disclosure method and facilitates comparability with other financial statements.
The adoption of IAS 19R and the change in disclosure of the interest effect were applied retrospectively according to IAS 8 with effect from 1 April 2012 to provide comparable financial information.
The impacts on the first quarter of the fiscal year 2012/13 are as follows:
| Corrections for the items of the total comprehensive income | 2012/13 Q1 | IAS 19R | 2012/13 Q1 (adjusted) |
|---|---|---|---|
| Staff costs | -32,736 | 309 | -32,427 |
| Operating result | -5,558 | 309 | -5,249 |
| Finance costs | -3,040 | -274 | -3,314 |
| Financial result | -255 | -274 | -529 |
| Result before income tax | -5,814 | 35 | -5,779 |
| Income taxes | 1,458 | -9 | 1,449 |
| Result for the period | -4,356 | 26 | -4,330 |
| Actuarial gains/losses | 0 | -509 | -509 |
| Income tax relating to items that will not be reclassified to the result for the period | -93 | 128 | 35 |
| Other comprehensive income for the period net to tax | -4,498 | -380 | -4,879 |
| Total comprehensive income for the period | -8,854 | -354 | -9,208 |
| Result attributable to equity holders of the company | -5,931 | 26 | -5,905 |
| Result attributable to minority interests | 1,575 | 0 | 1,575 |
| -4,356 | 26 | -4,330 | |
| Total comprehensive income attributable to equity holders of the company | -10,003 | -354 | -10,357 |
| Total comprehensive income attributable to minority interests | 1,149 | 0 | 1,149 |
| -8,854 | -354 | -9,208 | |
| Earnings per share from the result for the period attributable to the equity holders of the company (in EUR) |
-0.46 | 0.01 | -0.45 |
| Corrections for the items of balance sheet | 30 June 2012 | IAS 19R | 30 June 2012 |
| Corrections for the items of balance sheet | 30 June 2012 | IAS 19R | 30 June 2012 (adjusted) |
|---|---|---|---|
| Consolidated retained earnings and other reserves | 102,095 | -2,916 | 99,179 |
| Total equity | 247,393 | -2,916 | 244,477 |
| Liabilities from post-employment benefits to employees | 16,759 | 3,892 | 20,651 |
| Deferred income tax liabilities | 17,393 | -976 | 16,417 |
| Total non-current liabilities | 112,452 | 2,916 | 115,368 |
| Total equity and liabilities | 498,967 | 0 | 498,967 |
| Corrections for the items of balance sheet | 31 March 2013 | IAS 19R | 31 March 2013 (adjusted) |
|---|---|---|---|
| Consolidated retained earnings and other reserves | 98,058 | -3,979 | 94,080 |
| Total equity | 240,682 | -3,979 | 236,703 |
| Liabilities from post-employment benefits to employees | 17,289 | 5,313 | 22,602 |
| Deferred income tax liabilities | 13,086 | -1,335 | 11,752 |
| Total non-current liabilities | 137,882 | 3,979 | 141,861 |
| Total equity and liabilities | 567,227 | 0 | 567,227 |
| 2013/14 Q1 All amounts in TEUR |
Road Solution Projects |
Services, System Extensions, Components Sales |
Others | Consolidated group |
|---|---|---|---|---|
| Revenues | 36,508 | 80,792 | 4,084 | 121,384 |
| Operating result | -1,557 | 5,136 | 139 | 3,718 |
| 2012/13 Q1 (adjusted) All amounts in TEUR |
Road Solution Projects |
Services, System Extensions, Components Sales |
Others | Consolidated group |
| Revenues | 34,876 | 67,697 | 3,796 | 106,369 |
| Operating result | -7,191 | 1,862 | 79 | -5,249 |
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 contributed operating segment.
| 2013/14 Q1 All amounts in TEUR |
Revenue | Road Solution Projects |
Services, System Extensions, Components Sales |
|---|---|---|---|
| Customer 1 | 22,669 | x | |
| Customer 2 | 17,670 | x | |
| Customer 3 | 17,256 | x | |
| Customer 4 | 17,161 | x | x |
| 2012/13 Q1 All amounts in TEUR |
Revenue | Road Solution Projects |
Services, System Extensions, Components Sales |
|---|---|---|---|
| Customer 1 | 20,432 | x | x |
| Customer 2 | 31,689 | x | x |
| Customer 3 | 0 | ||
| Customer 4 | 18,567 | x | x |
| All amounts in TEUR | Tangible and intangible assets |
|---|---|
| Carrying amount as of 31 March 2013 | 103,846 |
| Additions | 4,536 |
| Disposals | -626 |
| Depreciation, amortization, impairments and other movements | -3,955 |
| Currency translation differences | -971 |
| Carrying amount as of 30 June 2013 | 102,830 |
| Carrying amount as of 31 March 2012 | 102,226 |
| Additions | 2,410 |
| Disposals | -8 |
| Depreciation, amortization, impairments and other movements | -3,919 |
| Currency translation differences | 786 |
| Carrying amount as of 30 June 2012 | 101,495 |
| 30 June 2013 | 31 March 2013 | 30 June 2012 | 31 March 2012 | |
|---|---|---|---|---|
| Other non-current financial assets and investments | 25,693 | 38,085 | 48,665 | 51,229 |
| Other current financial assets | 4,575 | 4,505 | 8,522 | 8,213 |
| 30,268 | 42,590 | 57,187 | 59,442 |
| Other non-current financial assets and investments 2013/14 Q1 |
Available-for-sale securities |
Available-for-sale investments |
Other non-current financial assets |
Total |
|---|---|---|---|---|
| Carrying amount as of 31 March 2013 | 3,684 | 32,008 | 2,394 | 38,085 |
| Currency translation differences | 0 | 0 | -60 | -60 |
| Additions | 0 | 0 | 0 | 0 |
| Disposals | 0 | 0 | -2,277 | -2,277 |
| Change in fair value | -27 | -10,029 | 0 | -10,056 |
| Carrying amount as of 30 June 2013 | 3,657 | 21,979 | 57 | 25,693 |
| Other non-current financial assets and investments 2012/13 Q1 |
Available-for-sale securities |
Available-for-sale investments |
Other non-current financial assets |
Total |
|---|---|---|---|---|
| Carrying amount as of 31 March 2012 | 3,619 | 40,981 | 6,629 | 51,229 |
| Currency translation differences | 0 | 0 | -3 | -3 |
| Additions | 0 | 0 | 19 | 19 |
| Disposals | 0 | 0 | 0 | 0 |
| Change in fair value | 64 | -2,645 | 0 | -2,581 |
| Carrying amount as of 30 June 2012 | 3,682 | 38,336 | 6,646 | 48,665 |
| Other current financial assets 2013/14 Q1 |
Available-for-sale securities |
Other | Total |
|---|---|---|---|
| Carrying amount as of 31 March 2013 | 4,505 | 0 | 4,505 |
| Currency translation differences | 0 | 0 | 0 |
| Additions | 0 | 0 | 0 |
| Disposals | 0 | 0 | 0 |
| Change in fair value | 70 | 0 | 70 |
| Carrying amount as of 30 June 2013 | 4,575 | 0 | 4,575 |
| Other current financial assets 2012/13 Q1 |
Available-for-sale securities |
Other | Total |
|---|---|---|---|
| Carrying amount as of 31 March 2012 | 8,213 | 0 | 8,213 |
| Currency translation differences | 0 | 0 | 0 |
| Additions | 0 | 0 | 0 |
| Disposals | 0 | 0 | 0 |
| Change in fair value | 309 | 0 | 309 |
| Carrying amount as of 30 June 2012 | 8,522 | 0 | 8,522 |
As of 30 June 2013, available-for-sale securities relate to government and bank bonds as well as shares in investment funds. As of 30 June 2013, investments classified as available-for-sale mainly relate to a 19.76% investment in the listed company Q-Free ASA, Trondheim, Norway.
Unrealized gains and losses are recognized in the other comprehensive income of the period (see Note 12).
Financial assets and liabilities have to be classified in one of the three following fair value-hierarchies according to IFRS 7.27 A:
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 available-for-sale securities, such as government and other bonds, which are quoted, however not regularly traded on a stock market.
Level 3. Financial instruments are included in level 3 if the valuation information is not based on observable market data.
| Fair value-hierarchies according to IFRS 7.27 A | 2013/14 Q1 | Level 1 Quoted prices |
Level 2 Observable market data |
Level 3 Not based on observable market data |
|---|---|---|---|---|
| Non-current financial assets | ||||
| Available-for-sale securities | 3,657 | 2,911 | 746 | 0 |
| Available-for-sale investments | 21,974 | 21,974 | 0 | 0 |
| 25,631 | 24,885 | 746 | 0 | |
| Current financial assets | ||||
| Available-for-sale securities | 4,575 | 4,575 | 0 | 0 |
| 4,575 | 4,575 | 0 | 0 | |
| Total | 30,206 | 29,460 | 746 | 0 |
In the first quarter of fiscal year 2013/14, other non-current financial assets amounting to TEUR 62 are recognized at amortized cost.
| Fair value-hierarchies according to IFRS 7.27 A | 2012/13 Q1 | Level 1 Quoted prices |
Level 2 Observable market data |
Level 3 Not based on observable market data |
|---|---|---|---|---|
| Non-current financial assets | ||||
| Available-for-sale securities | 3,682 | 2,995 | 687 | 0 |
| Available-for-sale investments | 38,332 | 38,332 | 0 | 0 |
| 42,014 | 41,327 | 687 | 0 | |
| Current financial assets | ||||
| Available-for-sale securities | 8,522 | 8,522 | 0 | 0 |
| 8,522 | 8,522 | 0 | 0 | |
| Total | 50,536 | 49,849 | 687 | 0 |
In the first quarter of fiscal year 2012/13, other non-current financial assets amounting to TEUR 6,650 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 June 2013 | 31 March 2013 | 30 June 2012 | 31 March 2012 |
|---|---|---|---|---|
| Non-current financial liabilities | 125,332 | 104,372 | 74,277 | 74,256 |
| Current financial liabilities | 25,720 | 19,658 | 11,443 | 53,249 |
| Total | 151,052 | 124,030 | 85,720 | 127,505 |
Movements in borrowings is analyzed as follows:
| All amounts in TEUR | Non-current financial liabilities |
Current financial liabilities |
Total |
|---|---|---|---|
| Carrying amount as of 31 March 2013 | 104,372 | 19,658 | 124,030 |
| Additions | 23,876 | 3,543 | 27,419 |
| Repayments of borrowings | 0 | -347 | -347 |
| Reclassification | -2,917 | 2,917 | 0 |
| Currency translation differences | 0 | -50 | -50 |
| Carrying amount as of 30 June 2013 | 125,332 | 25,720 | 151,052 |
| All amounts in TEUR | Non-current financial liabilities |
Current financial liabilities |
Total |
|---|---|---|---|
| Carrying amount as of 31 March 2012 | 74,256 | 53,249 | 127,505 |
| Additions | 41 | 111 | 152 |
| Repayments of borrowings | -20 | -41,894 | -41,914 |
| Currency translation differences | 0 | -23 | -23 |
| Carrying amount as of 30 June 2012 | 74,277 | 11,443 | 85,720 |
| All amounts in TEUR | 30 June 2013 | 31 March 2013 (adjusted) |
30 June 2012 (adjusted) |
31 March 2012 (adjusted) |
|---|---|---|---|---|
| Termination benefits | 9,175 | 9,064 | 8,286 | 8,220 |
| Pension benefits | 13,350 | 13,537 | 12,364 | 11,902 |
| Total | 22,526 | 22,602 | 20,651 | 20,122 |
The obligation to set up a provision for termination benefits is based on the respective labor law.
Liabilities for pension benefits recognized 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 June 2013 | 31 March 2013 | 30 June 2012 | 31 March 2012 |
|---|---|---|---|---|
| Non-current provisions | 1,357 | 1,370 | 1,115 | 1,098 |
| Current provisions | 27,175 | 28,233 | 24,773 | 18,531 |
| Total | 28,532 | 29,603 | 25,887 | 19,628 |
| 2013/14 Q1 All amounts in TEUR |
31 March 2013 | Addition | Utilization | Disposal | Currency translation differences |
30 June 2013 |
|---|---|---|---|---|---|---|
| Obligations from anniversary bonuses | 1,182 | 4 | 0 | -8 | 0 | 1,178 |
| Other | 188 | 0 | 0 | 0 | -10 | 179 |
| Non-current provisions, total | 1,370 | 4 | 0 | -8 | -10 | 1,357 |
| Warranties | 1,910 | 90 | 0 | -1 | -62 | 1,937 |
| Losses from pending transactions and rework | 18,514 | 0 | 0 | 0 | -670 | 17,844 |
| Legal fees, costs of litigation and contract risks | 2,524 | 46 | -70 | -2 | -81 | 2,417 |
| Other | 5,286 | 618 | -712 | -77 | -139 | 4,977 |
| Current provisions, total | 28,233 | 755 | -782 | -80 | -951 | 27,175 |
| Total | 29,603 | 759 | -782 | -88 | -961 | 28,532 |
| 2012/13 Q1 All amounts in TEUR |
31 March 2012 | Addition | Utilization | Disposal | Currency translation differences |
30 June 2012 |
|---|---|---|---|---|---|---|
| Obligations from anniversary bonuses | 868 | 9 | 0 | 0 | 0 | 877 |
| Other | 230 | 0 | 0 | 0 | 8 | 237 |
| Non-current provisions, total | 1,098 | 9 | 0 | 0 | 8 | 1,115 |
| Warranties | 1,229 | 8 | 0 | -3 | 10 | 1,244 |
| Losses from pending transactions and rework | 12,382 | 0 | -103 | 0 | -272 | 12,007 |
| Legal fees, costs of litigation and contract risks | 1,022 | 0 | -26 | -61 | 6 | 942 |
| Other | 3,897 | 7,853 | -1,112 | 0 | -59 | 10,580 |
| Current provisions, total | 18,531 | 7,861 | -1,241 | -64 | -314 | 24,773 |
| Total | 19,628 | 7,870 | -1,241 | -64 | -306 | 25,887 |
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.
In the first quarter of 2013/14, the effective tax rate is 35% (2012/13 Q1: 25%). For the full year 2013/14, management expects an effective tax rate of approximately 25%.
| 2013/14 Q1 All amounts in TEUR |
Before taxes | Tax expense/ income |
After taxes |
|---|---|---|---|
| Fair value gains/losses on available-for-sale financial assets: | |||
| Unrealized gains/losses in the current period | -9,986 | -11 | -9,997 |
| Actuarial gains/losses according to IAS 19 | 0 | 0 | 0 |
| Currency translation differences | -2,347 | -2,347 | |
| Fair value changes recognized in equity | -12,333 | -11 | -12,344 |
The fair value gains/losses on available-for-sale financial assets not realized amounting to TEUR -10,029 relate to the investment in Q-Free ASA, Norway (2012/13 Q1: TEUR -2,645).
| 2012/13 Q1 (adjusted) All amounts in TEUR |
Before taxes | Tax expense/ income |
After taxes |
|---|---|---|---|
| Fair value gains/losses on available-for-sale financial assets: | |||
| Unrealized gains/losses in the current period | -2,272 | -93 | -2,365 |
| Actuarial gains/losses according to IAS 19 | -509 | 128 | -380 |
| Currency translation differences | -2,133 | -2,133 | |
| Fair value changes recognized in equity | -4,914 | 35 | -4,879 |
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 and sureties.
Details of contingent liabilities and other commitments are as follows:
| All amounts in TEUR | 30 June 2013 | 31 March 2013 |
|---|---|---|
| Contract, warranty, performance and bid bonds: | ||
| Toll collection system South Africa, Gauteng | 89,127 | 98,202 |
| Toll collection system North America | 20,779 | 21,225 |
| Truck toll collection system Austria | 8,500 | 8,500 |
| Toll collection system Poland | 6,836 | 9,194 |
| City Highway Sydney and Melbourne | 2,410 | 2,775 |
| Truck toll collection system Czech Republic | 2,051 | 2,494 |
| Tender Slovenia | 2,000 | 2,000 |
| Toll collection system Portugal | 573 | 1,820 |
| Other | 2,569 | 2,842 |
| 134,846 | 149,052 | |
| Bank guarantees | 2,267 | 1,780 |
| Sureties | 63 | 64 |
| Total | 137,175 | 150,896 |
| All amounts in TEUR | Sales to related parties Q1 |
Sales from related parties Q1 |
Amounts owed by related parties 30 June |
Amounts owed to related parties 30 June (adjusted) |
|
|---|---|---|---|---|---|
| Affiliated companies outside the Kapsch TrafficCom Group |
2013/14 | 3,423 | 5,834 | 3,226 | 8,312 |
| 2012/13 | 3,120 | 5,353 | 4,575 | 5,994 | |
| Others | 2013/14 | 37 | 304 | 108 | 11,450 |
| 2012/13 | 0 | 1,142 | 0 | 11,460 | |
The members of the managing and supervisory boards have management functions or are members in supervisory boards of other companies of the Kapsch Group.
No mayor events occurred after 30 June 2013.
Vienna, 19 August 2013
The Managing Board
Georg Kapsch Erwin Toplak André Laux Chief Executive Officer Executive board member Executive board member
Kapsch TrafficCom is a provider of intelligent transportation systems (ITS) in the application fields of road user charging, urban access and parking, road safety enforcement, commercial vehicle operations, electronic vehicle registration, traffic management and V2X cooperative systems. Kapsch TrafficCom covers with end-to-end solutions the entire value creation chain of its customers as a one-stop shop, from components and subsystems to their integration and operation. The solutions of Kapsch TrafficCom help to provide funding for infrastructure projects, to increase traffic safety, to optimize traffic flow, and to reduce environmental pollution from traffic. The core business is to design, build and operate electronic toll collection systems for multi-lane free-flow traffic. References in 43 countries on all continents make Kapsch TrafficCom a recognized supplier of electronic toll collection worldwide. As part of the Kapsch Group, a family-owned Austrian technology group founded in 1892, Kapsch TrafficCom, headquartered in Vienna, Austria, has subsidiaries and representative offices in 33 countries, has been listed on the Vienna Stock Exchange (KTCG) since 2007, and generated with more than 3,000 employees revenues of EUR 488.9 million in fiscal year 2012/13. For additional information: www.kapsch.net and www.kapschtraffic.com
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 | Email [email protected] Corporate Marketing | Alf Netek | Phone +43 50 811 1700 | Fax +43 50 811 99 1700 | Email [email protected]
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