EANS-News: Kapsch TrafficCom AG - Mixed results in the first quarter, but promising new business opportunities. - ATTACHMENT CNE

Wednesday, 30. August 2017 06:55
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Quarterly Report

Vienna -
Highlights.


* Revenues increased by 7.9% to EUR 164.3 million
* EBIT is -33.4% below last year's comparison value which included a one-time
  effect
* Profit for the period has also dropped (-46.2%)
* No net debt: net credit of EUR 13.4 million
* After the end of the quarter: takeover of the remaining 67% of shares in
  SIMEX, Mexico


"Even though the results of the first quarter of 2017/18 were not satisfactory
in my opinion, I am convinced that we are on the right path. Potential
improvements have been recognized and are being implemented; promising new
business opportunities are being processed by our teams with their full
commitment," says Georg Kapsch, CEO of Kapsch TrafficCom.

 ______________________________________________________________________________
|Unless otherwise  |                   |                   |                   |
|stated, all values|         Q1 2017/18|                +/-|         Q1 2016/17|
|in_EUR_million____|___________________|___________________|___________________|
|Revenues__________|______________164.3|_______________7.9%|______________152.3|
|EBIT______________|_______________11.7|_____________-33.4%|_______________17.6|
|EBIT_margin_______|_______________7.1%|_____________-4.4%p|______________11.6%|
|Profit for the    |                6.6|             -46.7%|               12.4|
|period____________|___________________|___________________|___________________|
|Earnings per share|               0.52|             -46.2%|               0.97|
|(EUR)_____________|___________________|___________________|___________________|


Vienna, August 30, 2017 - Kapsch TrafficCom had to accept a so-so start in the
new fiscal year. On the one hand, the company was able to continue its growth
course. The revenues gained ground in both segments and went up by 7.9% to EUR
164.3 million at the Group level. On the other hand, Kapsch TrafficCom recorded
a decline in operating result (EBIT) of EUR 5.9 million (-33.4%) down to EUR
11.7 million. The EBIT margin was therefore 7.1% (Q1 2016/17: 11.6%). There
were several reasons for the lower profitability:

* In the course of extending the tolling project in the Czech Republic, it was
  necessary for the company to lower the prices. The aim is to offset the
  resulting decline in profits through profitable new business during the next
  quarters.
* After the integration of the transportation business acquired from Schneider
  Electric, the synergies were not yet fully realized in the US.
* Negative currency effects - mainly from the currency combinations EUR/USD and
  EUR/ZAR - placed a burden of EUR 3.8 million on the EBIT, i.e. EUR 2.5
  million more than in Q1 2016/17.
* Moreover, the EBIT contained a positive one-time effect in the amount of EUR
  3.0 million in the first quarter 2016/17.


When adjusted by the last two points - i.e. the known one-time effect and the
effects of exchange rate fluctuations, which can only be influenced to a
limited extent - Kapsch TrafficCom was able to achieve a fairly stable EBIT
development in the normal course of business.

The higher currency losses (of EUR 0.8 million) and lower currency gains (by
EUR -0.7 million) compared to Q1 2016/17 were the main reasons for the decline
in the financial result to EUR -2.3 million (Q1 2016/17: EUR -0.3 million).
While the realized currency losses dropped by EUR 0.2 million, the unrealized
currency losses went up by EUR 1.0 million. The profit for the period was EUR
6.6 million (Q1 2016/17: EUR 12.4 million), and the earnings per share was EUR
0.52 (Q1 2016/17: EUR 0.97).

Segment results.

In Q1 2017/18, 75.1% of the revenue fell to the ETC segment and 24.9 % to the
IMS segment.

 ______________________________________________________________________________
|ETC (Tolling      |                   |                   |                   |
|Business).        |                   |                   |                   |
|Unless otherwise  |         Q1 2017/18|        +/-        |         Q1 2016/17|
|stated, all values|                   |                   |                   |
|in_EUR_million____|___________________|___________________|___________________|
|Revenues__________|______________123.4|_______________9.7%|______________112.4|
|EBIT______________|_______________14.6|_____________-19.3%|_______________18.1|
|EBIT_margin_______|______________11.9%|_____________-4.3%p|______________16.1%|


The EBIT in Q1 2016/17 included a positive one-time effect of EUR 0.9 million.

 ______________________________________________________________________________
|IMS (Intelligent  |                   |                   |                   |
|Mobility          |                   |                   |                   |
|Solutions).       |         Q1 2017/18|        +/-        |         Q1 2016/17|
|Unless otherwise  |                   |                   |                   |
|stated, all values|                   |                   |                   |
|in_EUR_million____|___________________|___________________|___________________|
|Revenues__________|_______________40.9|_______________2.7%|_______________39.8|
|EBIT______________|_______________-2.9|____________-440.6%|_______________-0.5|
|EBIT_margin_______|______________-7.1%|_____________-5.8%p|______________-1.4%|


The EBIT in Q1 2016/17 included a positive one-time effect of EUR 2.1 million.

Balance sheet.

The free cash flow of the first quarter was negative at EUR -4,3 million.
Consequently, the net credit of EUR 19.6 million on March 31, 2017, also sank
to a still rock-solid amount of EUR 13.4 million on June 30, 2017. In the same
period, the equity ratio rose from 35.0% to 36.2%.

Event after the quarterly closing date.

After the quarterly closing date, Kapsch TrafficCom has taken over the
remaining 67% of Mexican intelligent transportation systems (ITS) company
SIMEX. Kapsch TrafficCom was already in possession of 33% of the company since
2012. With more than 30 years on the market and 255 employees, SIMEX is an
important player in the Mexican ITS market.

Outlook.

Based on the results of this first quarter, it will be a challenge in 2017/18
to achieve the EBIT that Kapsch TrafficCom had in the last fiscal year. This is
all the more so if the effects of exchange rate fluctuations - which can only
be influenced to a limited extent- will continue to work against the company.
However, the management is convinced that the company is on the right path.
Potential improvements have been recognized and are now being implemented; the
new business opportunities are very promising.

You can find the report on the first quarter of 2017/18 at:
http://kapsch.net/ktc/investor_relations/reports

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 alike 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. The family-owned company
is headquartered in Vienna, Austria and in 2017 celebrated 125 years of
successfully developing and implementing new technologies for the benefit of
its customers. As part of the Kapsch Group, Kapsch TrafficCom 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 currently has more than 4,800 employees, and generated revenue of
approximately EUR 648 million in fiscal year 2016/17.

For more information, please visit us at www.kapsch.net [http://www.kapsch.net/
] and www.kapschtraffic.com [http://www.kapschtraffic.com/]. Follow us on
Twitter: twitter.com/kapschnet [http://twitter.com/kapschnet].

Further inquiry note:
Press Contacts:
Alf Netek
Chief Marketing Officer & Press Officer
Kapsch AG
Am Europlatz 2, 1120 Vienna, Austria
Phone: +43 50811 1700 E-mail: alf.netek@kapsch.net

Investor Contact:
Hans Lang
Investor Relations Officer
Kapsch TrafficCom AG	
Am Europlatz 2, 1120 Vienna, Austria
Phone: +43 50 811 1122 E-mail: 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/2235/5/10046191/1/170830_Press_release_results_Q1_2016_17.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, AT0000A0KQ52
stockmarkets: Wien
language:     English


EAX0001    2017-08-30/06:55

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