EANS-News: Kapsch TrafficCom AG Kapsch strives to achieve two-digit EBIT
margin by 2015/16 with "Program 2020"
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quarterly report
- Revenue in the first half of 2014/15 slightly above the previous year's level,
EBIT significantly improved
- Program 2020 consists of short- and long-term structural and financial
adjustments
- Goal: Initial successes in the current fiscal year, two-digit EBIT
margin in the following year
______________________________________________________________________________
|2014/15 H1: 1 | 2013/14 H1 | +/- % | 2014/15 H1 |
|April - 30 | | | |
|September_2014 | | | |
|__________________|___________________|___________________|___________________|
|Revenues (in | 235.9| +1 %| 237.4|
|million_EUR)______|___________________|___________________|___________________|
|EBIT (in million | 7.6| +132 %| 17.6|
|EUR)______________|___________________|___________________|___________________|
|Profit for the | -0.7| - | 0.9|
|period (in million| | | |
|EUR)______________|___________________|___________________|___________________|
Vienna, 20 November 2014 - Kapsch TrafficCom AG (ISIN AT000KAPSCH9), listed in
the Prime Market of the Vienna Stock Exchange, reports stable business in the
first half of the fiscal year 2014/15. With a slight increase in revenue, it was
possible to significantly improve the EBIT, which was also negatively impacted
by one-time effects. At the same time, Kapsch TrafficCom announces that it will
now quickly implement an intensive set of measures in order to improve
profitability over the long term in the face of changed market conditions. The
cancellation of the toll tender in Russia highlighted the urgency of this
action.
Subtitle: Financial position
The revenue of the Kapsch TrafficCom Group increased slightly in the first half
of the fiscal year 2014/15 to EUR 237.4 million after EUR 235.9 million in the
same period of the previous year. While an increase of 13.9 % was achieved in
the segment Services, System Extensions, Components Sales (SEC) especially due
to the toll systems in Belarus and South Africa that went into operation in the
previous year, revenue fell by 40.2 % in the segment Road Solution Projects
(RSP), which includes development services as well as the preparatory work for
and the installation of projects. This is primarily due to the advanced level of
completion of existing projects and the lack of new large projects.
In consequence, the segment RSP recorded an EBIT of EUR -23.7 million after EUR
-13.1 million in the same period of the previous year. This result includes a
goodwill impairment of EUR 12.3 million, while the release of a provision in the
amount of EUR 16.2 million had a positive impact on the profit. The EBIT of the
segment SEC increased by 97.1 % to an outstanding EUR 40.2 million. Overall, the
EBIT of the Kapsch TrafficCom Group for the first half of 2014/15 was EUR 17.6
million, placing it significantly above the same value of the previous year of
EUR 7.6 million.
A required impairment to the interest in Q-Free ASA amounting to EUR 12.2
million weighed down the profit for the period, which was nevertheless still
positive at EUR 0.9 million (2013/14 H1: EUR -0.7 million).
The balance sheet depicts the solid basis of the Kapsch TrafficCom Group. In
particular, the repayments in connection with the financing agreement for
installation of the toll system in Belarus had a positive impact. The free cash
flow, which was negative in the same period of the previous year, amounted to
EUR 25.5 million. The net working capital and capital employed were reduced in
comparison to 30 September of the previous year. The equity ratio as well as the
cash and cash equivalents increased, while the net debt declined by roughly 24%.
Subtitle: Growth strategy
Kapsch TrafficCom is a globally recognized provider of electronic toll systems
and a market leader in systems for multi-lane free-flow traffic. In addition,
the company has expanded and demonstrated its competence in the area of
intelligent transportation systems (ITS). As part of its long-term growth
strategy, Kapsch TrafficCom is striving for a two-digit EBIT margin in order to
continue innovating and growing.
In the last two years, however, new projects have been delayed due to the
prevailing economic and political conditions, and several invitations to tender
have been postponed or canceled. Furthermore, the demand for large, nationwide
toll systems has declined in favor of regional, interurban and modularly
designed solutions. The convergence of the ITS market predicted by Kapsch
TrafficCom is now already taking place. Kapsch TrafficCom refers here to future
intelligent mobility solutions, many elements of which must still be developed,
and views itself at player who will help shape this future.
Kapsch TrafficCom is now responding to market changes with the rapid
implementation of an intensive set of measures intended to quickly improve the
earning power of its existing business while also establishing a long-term
strategy to ensure a profitable and sustainable future for the Kapsch TrafficCom
Group.
A variety of measures will be initiated and implemented by the end of the fiscal
year 2014/15 under the title of "Program 2020". These include the plan to
achieve an EBIT margin of 10 % in the coming fiscal year 2015/16 on the basis of
a cost structure adapted to the current revenue level - with the goal of a
further increase in the following year. Kapsch TrafficCom views this as a basis
for calculation that is independent of the desired growth. The set of
performance improvement measures begun already in March will be continued, but
structural and financial adjustments will also be made.
During the coming weeks, the planning for the global Kapsch TrafficCom Group
will be finalized, and individual measures will be implemented immediately in
order to achieve initial results as quickly as possible. Kapsch TrafficCom
intends to remain a globally leading provider of intelligent mobility solutions
capable of covering the entire value creation chain of its customers. In
addition, the company plans to increasingly take advantage of potential
synergies within the Kapsch Group in order to offer intermodal and interoperable
solutions for individual and public transportation around the world.
Subtitle: Outlook
The second half of the fiscal year 2014/15 will be marked by strategic
adjustments to changed market conditions. On the operational side, Kapsch
TrafficCom will continue to carry out existing projects, such as the expansion
of the toll systems in Belarus and Poland. The implementation of the system in
Texas should be completed in the next two quarters, and work continues unabated
on improving the profit situation in South Africa. Furthermore, Kapsch
TrafficCom expects its business to be expanded with new projects.
The outstanding results of the first half of the year will also be felt in the
results of the entire fiscal year 2014/15, as will the initial effects of the
structural measures. For the coming fiscal year 2015/16, Kapsch TrafficCom is
striving for a level of profitability based on its Program 2020 that will enable
an EBIT margin of 10 % even at current revenue levels.
Notification
The report on the first half of fiscal year 2014/15 can be found under
www.kapsch.net/ktc/investor_relations/reports/download/Quarterly-reports/2014-15/KTC_IR_Report_FY15-H1?lang=en-US.
Kapsch TrafficComis 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 design to the installation and
operation of systems. The solutions of Kapsch TrafficCom help to finance
infrastructure, 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 44 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 3,300 employees revenues of EUR 487.0 million in
fiscal year 2013/14.
For additional information: www.kapsch.net and www.kapschtraffic.com
Follow us on Twitter: twitter.com/kapschnet.
Further inquiry note:
Investor Contact:
Marcus Handl
Investor Relations Officer
Kapsch TrafficCom AG
Am Europlatz 2
1120 Vienna, Austria
Phone.: +43 50 811 1120
E-mail: {ir.kapschtraffic@kapsch.net}
[HYPERLINK: mailto:ir.kapschtraffic@kapsch.net]
Press Contact:
Ingrid Lawicka
Spokesperson
Kapsch AG
Am Europlatz 2
1120 Vienna, Austria
Phone.: +43 50 811 1705
E-mail: ingrid.lawicka@kapsch.net
end of announcement euro adhoc
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company: Kapsch TrafficCom AG
Am Europlatz 2
A-1121 Wien
phone: +43 1 50811 1122
FAX: +43 1 50811 99 1122
mail: ir.kapschtraffic@kapsch.net
WWW: www.kapschtraffic.com
sector: Technology
ISIN: AT000KAPSCH9
indexes: Prime Market
stockmarkets: official market: Wien
language: English