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  Corporate news transmitted by euro adhoc with the aim of a Europe-wide 
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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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(END) Dow Jones Newswires

June 16, 2021 01:15 ET (05:15 GMT)