EANS-News: Kapsch TrafficCom - Final earnings for the first quarter of 2019/20. - ATTACHMENT CNE

Tuesday, 20. August 2019 07:15
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Financial Figures/Balance Sheet/Quarterly Report

Vienna -
Zwtl.: Highlights.

* Year-on-year revenue growth (+18%) up to EUR 186 million.
* EBIT fell to EUR 4.6 million (previous year: EUR 7.1 million).
* Outlook for 2019/20 confirmed: Revenues and EBIT (excluding one-time effects)
  are both expected to go up by at least 5%.

"In the first quarter, we were able to continue positive revenue development. In
EBIT, however, the seasonal nature was much more markedly pronounced than
anticipated, which is why the figure was below that of the first quarter of the
previous year. For the 2019/20 fiscal year, I am still optimistic that we will
achieve the given guidance," declares Georg Kapsch, CEO of Kapsch TrafficCom.

Unless otherwise
stated, all values          Q1 2018/19           Q1 2019/20                  +/-
in EUR million
Revenues                         158.2                186.2               +17.7%
EBIT                               7.1                  4.6               -36.0%
EBIT margin                       4.5%                 2.4%               -2.0%p
Profit for the                     2.5                  2.2               -11.6%
period
Earnings per                      0.21                 0.19                -9.0%
share (EUR)


The final earnings for the first quarter of the 2019/20 fiscal year published
today by Kapsch TrafficCom hardly deviate from the anticipated revenues and
operating result (EBIT) announced on July 20, 2019.

In the first quarter of 2019/20, Kapsch TrafficCom was able to increase revenues
to EUR 186.2 million (+17.7% compared to the first quarter of the previous
year). The company was characterized by strong growth rates, especially in the
Americas region (North, Central, and South America). EBIT reached EUR 4.6
million (-36.0%), corresponding to an EBIT margin of 2.4% (previous year: 4.5%).
The main reasons for lower profitability are investments in further growth,
namely in the form of

* Costs of material. The implementation business underwent a very positive
  development in the first quarter of 2019/20. However, it required a relatively
  high material investment. The newly installed systems, particularly in the ETC
  segment, will have to be operated later on. This gives Kapsch TrafficCom
  potential for further revenue.

* Staff costs. Since business in North America is growing rapidly, additional
  personnel need to follow in order to take full advantage of the available
  market potential. In the first quarter alone, the number of employees in the
  US went up by 50 people.

The greatly improved financial result of EUR -1.7 million (previous year: EUR -
3.5 million) was mainly due to beneficial changes in exchange rates. The income
tax expenses of EUR -0.4 million were also below those of the previous year (EUR
-1.1 million). In this way, the company attained profit for the period in the
amount of EUR 2.2 million (previous year: EUR 2.5 million) and earnings per
share of EUR 0.19 (previous year: EUR 0.21).

Zwtl.: Segment results.

In the first quarter of 2019/20, 79.0% of revenues were attributed to the
"Electronic Toll Collection" (ETC) segment and 21.0% to the "Intelligent
Mobility Solutions" (IMS) segment. 61.6% of revenues were generated in the
Europe, Middle East, and Africa (EMEA) region, 34.3% in the Americas region
(North, Central, and South America), and 4.1% in the Asia-Pacific (APAC) region.

ETC (ElectronicToll
Collection).
Unless otherwise             Q1 2018/19          Q1 2019/20                  +/-
stated, all values
in EUR million
Revenues                          119.6               147.0               +23.0%
EBIT                                7.0                 7.6                +9.3%
EBIT margin                        5.8%                5.2%               -0.6%p


Kapsch TrafficCom raised its revenues in the ETC segment to EUR 147.0 million in
the first quarter of 2019/20. This is an increase of 23.0% compared to the
comparative period of the previous year.

ETC EBIT were at EUR 7.6 million and thus EUR 9.3% above the figure of the
previous year. The EBIT margin reached 5.2% (previous year: 5.8%). Kapsch
TrafficCom sold 3.3 million on-board units in the first quarter of 2019/20
(+0.9%).

IMS (Intelligent
Mobility
Solutions).                 Q1 2018/19           Q1 2019/20                  +/-
Unless otherwise
stated, all values
in EUR million
Revenues                          38.7                 39.1                +1.2%
EBIT                               0.1                 -3.1                 n.m.
EBIT margin                       0.3%                -7.9%               -8.2%p


In the first quarter of 2019/20, segment revenues reached EUR 39.1 million
(+1.2%). IMS EBIT were at EUR -3.1 million and thus below the figure of the
previous year (EUR 0.1 million).

Zwtl.: Free cash flow and balance sheet.

At EUR -4.6 million, free cash flow was much better in the first quarter of
2019/20 than in the comparative period of the previous year (EUR -15.1 million).
The main reason for the positive development was the reduced - albeit continued
- increase in working capital.

One major change starting in the 2019/20 fiscal year is the initial application
of the standard IFRS 16 "Leases", which specifies the recognition, measurement,
presentation as well as disclosure requirements with regard to leases in
financial statements. Rights of use arising from leasing agreements are
capitalized (tangible assets), and lease liabilities are shown separately on the
liabilities side of the balance sheet. This changed reporting of leases
significantly increased the balance sheet total and net debt as of April 1,
2019, lowering the equity ratio.

As of June 30, 2019, net debt was therefore EUR 133.4 million. Without the new
application of IFRS 16, it would be EUR 81.7 million (March 31, 2019: EUR 73.5
million). The equity ratio on June 30, 2019, was still very strong despite the
IFRS 16 effect: 36.3% (March 31, 2019: 38.2%). The balance sheet total went up
to EUR 715.9 million. (March 31, 2019: EUR 677.7 million).

The highlights report of the first quarter 2019/20 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 provider of intelligent transportation systems in the
fields of tolling, traffic management, smart urban mobility, traffic safety and
security, and connected vehicles. As a one-stop solutions provider, Kapsch
TrafficCom offers end-to-end solutions covering the entire value creation chain
of its customers, from components and design to the implementation and operation
of systems. The mobility solutions supplied by Kapsch TrafficCom help make road
traffic safer and more reliable, efficient, and comfortable in urban areas and
on highways while helping to reduce pollution.

Kapsch TrafficCom is an internationally renowned provider of intelligent
transportation systems thanks to the many projects it has brought to successful
fruition in more than 50 countries around the globe. As part of the Kapsch
Group, Kapsch TrafficCom with headquarters in Vienna, has subsidiaries and
branches in more than 30 countries. It has been listed in the Prime Market of
the Vienna Stock Exchange since 2007 (ticker symbol: KTCG). Kapsch TrafficCom's
about 5,000 employees generated revenues of EUR 738 million in fiscal year 2018/
19.

Further inquiry note:
Alf Netek
Chief Marketing Officer & Press Officer
Kapsch Aktiengesellschaft
Am Europlatz 2
1120 Vienna
Austria
T +43 50 811 1700
alf.netek@kapsch.net

Alexandra Vieh
Head of Marketing and PR, Global
Kapsch TrafficCom AG
Am Europlatz 2
1120 Vienna
Austria
T +43 50 811 1728
alexandra.vieh@kapsch.net

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

end of announcement                         euro adhoc
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Attachments with Announcement:
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http://resources.euroadhoc.com/documents/2235/5/10344867/1/KTC_Presseaussendung_Q1_2019_20_en.pdf

issuer:       Kapsch TrafficCom AG
              Am Europlatz  2
              A-1120 Wien
phone:        +43 1 50811 1122
FAX:          +43 1 50811 99 1122
mail:         ir.kapschtraffic@kapsch.net
WWW:          www.kapschtraffic.com
ISIN:         AT000KAPSCH9
indexes:      
stockmarkets: Wien
language:     English

EAX0002    2019-08-20/07:15

Related Links: Kapsch TrafficCom AG
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