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

Corporate news transmitted by euro adhoc with the aim of a Europe-wide distribution. The issuer is responsible for the content of this announcement.

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).

end of announcement euro adhoc

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

Digital press kit: http://www.ots.at/pressemappe/411/aom

Rückfragen & Kontakt:

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

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