EANS-News: Kapsch TrafficCom AG / Results for the first quarter 2020/21. - ATTACHMENT CNE

Wednesday, 12. August 2020 07:15
  Corporate news transmitted by euro adhoc with the aim of a Europe-wide
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Financial Figures/Balance Sheet

Vienna -

* Termination of several major projects, an ongoing personnel shortage in North
  America and additional expenses for the implementation of new software lead to
  a decline in revenues and earnings.
* No dividend for 2019/20.
* Program launched to reduce costs and increase efficiency.
* Still too many uncertainties for quantitative outlook on full year 2020/21.

"We are currently in a period of weakness. However, I am convinced that we are
taking the right steps to quickly put the company back on the road to success,"
says Georg Kapsch, CEO of Kapsch TrafficCom.

stated, all                 Q1 2019/20                 Q1 2020/21            +/-
values in
EUR million
Revenues            186.2        138.5       -25.6%
EBIT                  4.6        -11.3      > -100%
EBIT margin          2.4%        -8.2%       -10.6%
Profit for
the period
attributable          2.4        -10.0      > -100%
to equity
Earnings per         0.19        -0.77      > -100%
share (EUR)

Vienna, August 12, 2020 - The final earnings for the first quarter of financial
year 2020/21 published today by Kapsch TrafficCom hardly differ from the
anticipated revenues and operating profit (EBIT) announced on July 24, 2020.

Revenues decreased by approximately 26% to EUR 138 million in Q1. This decline
is mainly due to developments in the EMEA region (Europe, Middle East, Africa).
Last year, revenues still included projects that have been completed in the
meantime: two projects for the German infrastructure charge, the operation of
the nation-wide toll system in the Czech Republic and the implementation of the
nation-wide toll system in Bulgaria. This alone explains a drop in revenues of
around EUR 38 million. In South Africa, the COVID-19 situation in particular led
to a drop in revenues of EUR 6 million.

By contrast, revenues continued to rise in the Americas region (North, Central,
and South America). The critical factor here was the strong implementation
business. In the APAC region (Asia-Pacific), revenues fell by 7%.

The EBIT was at EUR -11 million (previous year: EUR 5 million). It has not yet
been possible to compensate for the loss of profitable major projects. At the
same time, the company has not yet been able to adapt its cost base to the new
circumstances. The implementation of new software in individual customer systems
continued to result in additional costs. The difficult situation with staff in
North America has also hurt profitability.

In Q1 2020/21, Kapsch TrafficCom achieved earnings for the period attributable
to equity holders of EUR -10 million (previous year: EUR 2 million). This
corresponds to earnings per share of EUR -0.77 (previous year: EUR 0.19). Free
cash flow was very negative at -EUR 27 million. More than EUR 20 million of this
amount resulted from changes in working capital. In particular, trade payables
were reduced, which caused the balance sheet to decline. Total assets fell to
EUR 677 million as of June 30, 2020 (March 31, 2020: EUR 727 million) and the
net debt rose to EUR 205 million (March 31, 2020: EUR 176 million). The equity
ratio increased slightly to 26% (March 31, 2020: 25%).

In anticipation of a difficult financial year, Kapsch TrafficCom has launched a
program to both define short-term cost reduction measures and to create the
basis for sustainable growth. The goals include sustainable cost reductions in
the double-digit million range and the cushioning of negative factors
influencing earnings in the current financial year. The first measures are
already being implemented and more will follow. As a sign of how seriously
management takes this program, the members of the Executive Board and the 15
executives on the Global Leadership Team are waiving 10% of their fixed salary
for at least six months.

It is not yet possible to quantify the effects of COVID-19 on the business. In
individual cases, there are delays within projects and in tenders. Moreover,
visibility for the second half of the financial year remains low. For this
reason, and due to the weak Q1 results, the Executive Board is stepping away
from the original dividend proposal (EUR 0.25 per share) and will not be
proposing a distribution at the Annual General Meeting on September 9, 2020.

From today's point of view, management expects profitability for financial year
2020/21 to be significantly better than in the previous year. Based on the
performance in Q1, achieving a positive EBIT is expected to be much more
challenging than originally anticipated, given the low visibility and
uncertainties surrounding COVID-19.

Segment Results.
In Q1 2020/21, 77% of the revenues were attributed to the ETC segment and 23% to
the IMS segment. 48% of revenues were generated in the Europe, Middle East, and
Africa (EMEA) region, 47% in the Americas region (North, Central, and South
America), and 5% in the Asia-Pacific (APAC) region.

Unless                        Q1 2019/20                Q1 2020/21           +/-
stated, all
values in EUR
Revenues              147.0        106.0       -27.9%
EBIT                    7.6         -8.9      > -100%
EBIT margin            5.2%        -8.4%       -13.6%

In Q1 2020/21, ETC revenues fell to EUR 106 million (-28%). ETC EBIT was EUR -
9 million (previous year: EUR 8 million). The EBIT margin reached -8% (previous
year: 5%).

Unless                      Q1 2019/20                 Q1 2020/21            +/-
stated, all
values in
EUR million
Revenues             39.1         32.5       -17.0%
EBIT                 -3.1         -2.5        20.1%
EBIT margin         -7.9%        -7.6%         0.3%

In Q1 2020/21, segment revenues totaled EUR 32 million (-17%). IMS EBIT was at
EUR -2 million and thus better than the figure of the previous year (EUR -
3 million).

The highlights report of the first quarter 2020/21 will be available at http://
kapsch.net/ktc/ir [http://kapsch.net/ktc/ir] from today at 7:35 am (CEST).

Kapsch TrafficCom is a globally renowned provider of transportation solutions
for sustainable mobility. Our innovative solutions in the application fields of
Tolling, Traffic Management, Demand Management and Mobility Services contribute
to a healthy world without traffic congestion.

We have brought projects to fruition in more than 50 countries around the globe.
With our one-stop solutions, we cover the entire value chain of our customers,
from components to design and implementation to operation of systems.

As part of the Kapsch Group and headquartered in Vienna, Kapsch TrafficCom has
subsidiaries and branches in more than 30 countries. It has been listed in the
Prime Market segment of the Vienna Stock Exchange since 2007 (ticker symbol:
KTCG). Kapsch TrafficCom's about 5,100 employees generated revenues of EUR 731
million in financial year 2019/20.

Further inquiry note:
Press Contacts: 
Carolin Treichl
Executive Vice President Marketing & Communications
Kapsch TrafficCom AG
Am Europlatz 2, 1120 VIENNA, AUSTRIA
T +43 50 811 1710

Markus Karner
Public Relations
Kapsch TrafficCom AG
Am Europlatz 2, 1120 VIENNA, AUSTRIA
T +43 50 811 1705

Investor Contact:
Hans Lang
Investor Relations Officer
Kapsch TrafficCom AG
Am Europlatz 2, 1120 VIENNA, AUSTRIA
T +43 50 811 1122

end of announcement                         euro adhoc

Attachments with Announcement:

issuer:       Kapsch TrafficCom AG
              Am Europlatz  2
              A-1120 Wien
phone:        +43 50811 1122
FAX:          +43 50811 99 1122
mail:         ir.kapschtraffic@kapsch.net
WWW:          www.kapschtraffic.com
ISIN:         AT000KAPSCH9
stockmarkets: Wien
language:     English

EAX0002    2020-08-12/07:15

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