EANS-News: Kapsch TrafficCom / Results for financial year 2020/21. CNE

Wednesday, 16. June 2021 07:15
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Financial Figures/Balance Sheet/Annual Result

Vienna - Highlights.

* The slightly more than 30% decline in revenues was evenly spread across all
  the regions
* EBIT of EUR -123 million
* The cost reduction and restructuring measures were effective: Despite a free
  cash flow of EUR -27 million in the first quarter, a positive value of EUR 4
  million was achieved over the financial year.
* No dividend (as in the previous year) for the financial year 2020/21

"2020/21 was a very difficult year, and not only due to the COVID-19 situation.
We had to restructure the company to be sustainably profitable again in the
future. After two negative years, the 2021/22 financial year should be a period
of stabilization and solidification," says Georg Kapsch, CEO of Kapsch
TrafficCom.

Unless otherwise stated,                             2019/20 2020/21 +/-
all values in EUR million
Revenues                                               731.2   505.2 -30.9%
EBIT                                                   -39.2  -123.2 -214.4%
EBIT margin                                            -5.4%  -24.4% -19%p
Result for the period attributable to equity holders   -48.1  -102.9 -113.7%
Earnings per share (EUR)                               -3.70   -7.91 -113.7%


In financial year 2020/21, revenues of Kapsch TrafficCom decreased to EUR 505
million, which was 31% (EUR 226 million) lower than the previous year's figure.
The slightly more than 30% decline in revenues was evenly spread across all the
regions. Consolidated revenues are broken down geographically as follows:

* EMEA region (Europe, Middle East, Africa): 55%
* Americas region (North America, Central America, South America): 41%
* APAC region (Asia-Pacific): 5%

The operating result (EBIT) was negative at EUR 123.2 million (previous year:
EUR -39.2 million). The following effects were the main drivers of this:

* Impairments of non-current assets as described (EUR -31 million).
* Adjustments of project margins and provisions for onerous contracts: for some
  projects, especially in North America, the project margins were adjusted and
  provisions for pending losses had to be set up. This had a negative impact of
  EUR 79 million on the EBIT.
* Impact of COVID-19: revenues from the profitable component segment suffered
  severely as a result of decreased transportation volume.
* Operating currency effects: the operating currency effects (net) were negative
  at EUR 8 million (previous year: EUR 0 million
* Cost provisions for lawsuits in the U.S. in the amount of EUR 8 million.
* Restructuring costs in the amount of EUR 5 million.

The financial result amounted to EUR -10 million and was EUR 14 million better
than in the previous year. Foreign currency losses fell by EUR 7 million to EUR
-2.0 million. Previous year's value included the write-down of a financial
asset, which has been sold in the meantime. Income taxes amounted to EUR +28
million (previous year: EUR +8 million).

The result for the period was very negative at EUR -105 million (previous year:
EUR -56 million). A result for the period of EUR -103 million was attributable
to the equity holders of the company. This corresponds to earnings per share of
EUR -7.91 (previous year: EUR -3.70).

Net debt reached EUR 170 million (March 31, 2020: EUR 176 million), which
equates to a gearing of 200% (March 31, 2020: 96%). The net debt was similar to
the previous year. Since equity fell significantly, however, the gearing
increased substantially. The reduction of the net working capital to EUR 110
million (March 31, 2020: EUR 168 million) was the basis for the positive free
cash flow of EUR 4 million.

The Executive Board, as already discussed, will not propose a dividend payout
for the loss year of 2020/21 at the Ordinary Annual General Meeting 2021. A
distribution also appears unlikely for the following financial year.

Segment results.

In financial year 2020/21, the Tolling segment contributed 71% to total
revenues, the Traffic Management segment 29%.

Segment Tolling
Unless otherwise stated,  2019/20 2020/21 +/-
all values in EUR million
Revenues                    563.5   358.2 -36.4%
EBIT                          1.5  -117.2 > -100%
EBIT margin                  0.3%  -32.7% -33%p


The implementation business in particular suffered from the COVID-19 situation,
collapsing by 54%. The components business lost approximately 35%, while the
operating business "only" lost 20%.

The operating result totaled EUR -117 million (previous year: EUR 1 million).
The main reasons consisted of the margin adjustment and the creation of
provisions for onerous contracts.

In financial year 2020/21, 9.9 million on-board units were sold, a decline of
3.3 million relative to the previous year.

Segment Traffic Management
Unless otherwise stated,  2019/20 2020/21 +/-
all values in EUR million
Revenues                    167.7   147.0 -12.4%
EBIT                        -40.7    -6.0 85.4%
EBIT margin                -24.2%   -4.1% 20.2%p


In financial year 2020/21 revenues in the Traffic Management segment reached EUR
147 Mio. (-12%). While revenues in the EMEA region remained at the previous
year's level, they fell by 21% in the Americas region and by 57% in the APAC
region.

The EBIT in the financial year was EUR -6 million and therefore substantially
better than in the previous year (EUR -41 million).

Outlook.

After two negative years with extensive restructuring, financial year 2021/22
should be a period of stabilization and solidification until a dynamic course of
growth is pursued again. A decent growth in revenues should be assumed despite
the ongoing low visibility in regards to new business.

The implemented measures to reduce the cost basis should show success and make
the EBIT positive again. In this context, follow-up effects and additional
expenses in connection with the restructuring must be expected in particular in
Q1 2021/22. For the full year, management expects an EBIT margin in the lower
single-digit percentage range.

The Executive Board, as already discussed, will not propose a dividend payout
for the loss year of 2020/21 at the AGM 2021. A distribution also appears
unlikely for the following financial year due to the planned investments in the
context of the implementation of the Strategy 2027.

In order to protect the company's capital base against unanticipated
developments, the Executive Board of the forthcoming AGM will propose that
authorization for a capital increase be granted. This anticipatory resolution
for a capital increase should make it possible to raise the share capital by up
to 1.3 million shares, which equates to 10%.

Various reports on the financial year 2020/21 as well as further materials will
be available at https://kapsch.net/ktc/ir from today at 7:35 am (CEST).

Further inquiry note:
Investor contact:	
Hans Lang
Investor Relations Officer
Kapsch TrafficCom AG
Am Europlatz 2, 1120 Vienna, Austria
T +43 50 811 1122
IR.kapschtraffic@kapsch.net

Press contact: 	
Carolin Treichl
Executive Vice President Marketing & Communications
Kapsch Aktiengesellschaft
Am Europlatz 2, 1120 Vienna, Austria
T +43 50 811 1710
carolin.treichl@kapsch.net

end of announcement                         euro adhoc
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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
indexes:      
stockmarkets: Wien
language:     English

EAX0002    2021-06-16/07:15

Related Links: Kapsch TrafficCom AG
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