Kapsch TrafficCom AG

EANS-News: Kapsch TrafficCom presents growth and future strategy in fiscal year 2011/12


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annual result


Wien (euro adhoc) - * Strong growth continues, revenues up 42% in reporting
period
* Earnings below previous year due to project delays
* Positive outlook on existing and new projects
* Strategy 2016 increasingly focuses on additional ITS solutions beyond toll
collection


2011/12:                                                                     
1April 2011-31 March 2012                 2011/12      +/- %       2010/11

Revenues (in million EUR)                  549.9        42%         388.6
EBIT (in million EUR)                       42.2       -14%          48.9
Profit for the period (in million EUR)      27.5        -3%          28.4
Earnings per share (in EUR) (1)              1.62      -11%           1.81
Dividend per share (in EUR)                  0.90(2)   -10%           1.00

(1) Earnings per share 2011/12 relate to average weighted number of 12.74    
million shares

(2) Proposal of the executive board subject to approval of shareholders'  
meeting on 24 August 2012

Vienna, 17 July 2012 - Kapsch TrafficCom AG (ISIN AT000KAPSCH9), listed on the
Vienna Stock Exchange, can look back at five successful years since its initial
public offering in June 2007. In the past fiscal year 2011/12, which ended on 31
March 2012, revenues increased again by 42% compared to the previous year. This
growth reflects, in particular, the progress of the two major projects in Poland
and South Africa but also the successful expansion of business in the U.S.A. The
volume of delivered on-board units significantly rose from 5.2 million units in
the previous year to 11.2 million units. However, the fiscal year proved
challenging as well.

After an implementation period of only eight months, Kapsch TrafficCom started
the operation of its major project in Poland at the beginning of the fiscal
year, the nationwide electronic toll collection system viaTOLL for all vehicles
above 3.5 tons, and completed it in stages up to the end of December. The system
acceptance finally took place on 21 February 2012. Kapsch TrafficCom covered the
ongoing expenses until this time, despite significantly reduced revenues from
the operation of the system due to the delayed system acceptance. In the first
quarter of 2012/13, for the first time, Kapsch TrafficCom will be able to
generate revenues from operating the system according to the original contract.
The net payment of EUR 103.3 million for the last milestone of the system
implementation received in April 2012 will also be reflected strongly in the
free cash flow.

In South Africa, the start of the electronic toll collection system for
multi-lane free-flow traffic in the province of Gauteng has been delayed. At the
end of April 2012 - just two days before the scheduled commissioning deadline -
the start of the fully completed system in South Africa was suspended
indefinitely by a court order due to a lawsuit. On 23 May 2012, the government
elected to appeal the court decision.

Although progress in both major projects impacted positively on revenues of the
Kapsch TrafficCom Group, the delays clearly weighed down on earnings in the
second half of the reporting period.

In fiscal year 2011/12, Kapsch TrafficCom won new projects and markets, which
shall support the continuing growth of the group: in July 2011, the investment
into expanding the U.S. business was justified with a ten-year contract from the
E-ZPass Group, operator of the world's largest interoperable toll collection
system. In Russia, the joint venture, in which Kapsch TrafficCom holds a 33%
stake, won a contract to maintain and operate an intelligent transportation
system (ITS), which encompasses a toll collection system as well as traffic
information and management systems. The implementation and operation projects
won in Belarus and Portugal also contribute to a positive outlook, as does the
agreement with the French toll service provider Axxes in the global navigation
satellite system (GNSS) technology as well as the basic understanding reached
with Asfinag Maut Service GmbH on extending the operation and maintenance
contract for the nationwide electronic truck toll collection system in Austria
until the end of 2018. 

Strategy 2016
Kapsch TrafficCom is striving to achieve further growth in the future. In the
reporting period, the strategy for the next five years was defined and
substantiated by strategic paths. Accordingly, Kapsch TrafficCom plans to grow
further in its core business of electronic toll collection and to expand both
regionally and by moving into new business fields. Expanding the business into
select ITS applications beyond toll collection is viewed as preparation for the
increasing convergence of the ITS market that Kapsch TrafficCom expects in the
next five to ten years in view of the future topic of "connected vehicles in
cooperative systems". Parallel to this, Kapsch TrafficCom will adapt the company
structure in line with strategic requirements to ensure maximum efficiency and
global synergies. 

Revenues and earnings 
In fiscal year 2011/12, the Kapsch TrafficCom Group recorded the highest revenue
since its foundation, continuing its growth from recent years. Revenues of EUR
388.6 million in the previous fiscal year 2010/11 were improved by 41.5% to
reach EUR 549.9 million in fiscal year 2011/12. The operating result (EBIT)
declined by 13.6% to EUR 42.2 million in fiscal year 2011/12, compared to EUR
48.9 million in the previous year. The EBIT margin was 7.7% in the reporting
period, thereby missing the target of a two-digit EBIT margin. System
implementation delays in Poland and South Africa made for disappointing
developments with a negative EBIT of EUR -2.7 million in the third quarter,
followed by weak but positive developments in the fourth quarter.

Revenues in the segment Road Solution Projects (RSP) reached EUR 229.9 million
in the 2011/12 fiscal year, up by 44.7% compared with the previous year (EUR
158.9 million). The most important factor in this improvement was the
contribution made by the project in Poland. 

In the segment Services, System Extensions, Components Sales (SEC), revenues
increased by 37.9% from EUR 223.3 million in the previous year to EUR 308.1
million. The 22.8% decrease in EBIT from EUR 48.3 million in the previous year
to EUR 37.3 million in 2011/12 largely reflects the delays in the two major
projects in Poland and South Africa. However, the EBIT margin in the segment SEC
was still 12.1%, though well below the 21.6% figure from the previous year. 

Profit before income taxes reached EUR 36.3 million, down by EUR 4.9 million
compared with the previous year. Lower income taxes and higher financial income
compensated for the lower operating result (EBIT) and led to an almost unchanged
profit for the period of EUR 27.5 million (2010/11: EUR 28.4 million) and to
earnings per share of EUR 1.62 (2010/11: EUR 1.81). 
The executive board will make a proposal to the shareholders' meeting on 24
August 2012 calling for the approval of a dividend of EUR 0.90 per share
(2010/11: EUR 1.00 per share) for the fiscal year 2011/12. This proposal
reflects a payout ratio of approximately 57% in relation to the profit for the
period attributable to equity holders of the company (2010/11: approximately
55%).

Financial position and cashflows
Total assets increased in the reporting period, largely as a consequence of the
augmented project business, the capital increase at the end of July 2011 and the
total comprehensive income for the period. The equity ratio of the Kapsch
TrafficCom Group thus increased to 45.9% as of 31 March 2012 (31 March 2011:
42.5%). The high project-related net working capital was instrumental in the
free cash flow declining to EUR -50.9 million after EUR -19.9 million in the
previous year. However, the payment received from the project in Poland in April
2012 - after the reporting date - will significantly reduce net working capital
and improve the free cash flow in the first quarter of 2012/13.

Outlook and targets
Despite a macroeconomic environment that remains challenging, Kapsch TrafficCom
takes an optimistic view of its markets for fiscal year 2012/13 and beyond. The
company is convinced that there are many interesting opportunities worldwide for
the delivery and operation of toll collection systems and that it is well
prepared for the increasing convergence of the ITS market. Fiscal year 2012/13
will be characterized in particular by further developments associated with the
date for the start of the electronic toll system for multi-lane free-flow
traffic in the South African province of Gauteng as well as the expected tenders
for nationwide electronic toll collection systems in Hungary, Slovenia and
Denmark. The company will also focus during fiscal year 2012/13 on implementing
the strategy up to 2016, as defined in fiscal year 2011/12, and on establishing
the corresponding corporate structure.

The Annual Report and the Annual Financial Statements on fiscal year 2011/12 can
be downloaded from
http://www.kapsch.net/en/ktc/investor_relations/financial_information/Pages/default.aspx

Kapsch TrafficCom is a provider of high-performance intelligent transportation
systems (ITS) in the application fields of toll collection, urban access
management and traffic safety and security. Kapsch TrafficCom covers the entire
value creation chain of its customers as a one-stop shop by providing products
and components as well as subsystems as open market products, by integrating
them into turnkey systems or by developing end-to-end solutions, including
services for the technical and commercial operations of systems. Within its
current core business of electronic toll collection (ETC), Kapsch TrafficCom
designs, builds and operates ETC systems, in particular for multi-lane free-flow
traffic. With 280 references in 41 countries on all 5 continents and with almost
70 million on-board units delivered and about 18,000 lanes equipped, Kapsch
TrafficCom has positioned itself among the internationally recognized suppliers
of electronic toll collection worldwide. Kapsch TrafficCom is headquartered in
Vienna, Austria, and has subsidiaries and representative offices in 30
countries.


Further inquiry note:
Marcus Handl 
Investor Relations Officer
Kapsch TrafficCom AG 
Am Europlatz 2, A-1120 Vienna, Austria 
Phone +43 50 811 1120
Email ir.kapschtraffic@kapsch.net
www.kapschtraffic.com

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
 

 

 



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