EANS-News: Kapsch TrafficCom AG ? Stronger second quarter: The Group continues growth.

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Mid Year Financial Report

Vienna -
Zwtl.: Highlights.

* Revenues increased by 11.3% to EUR 339.8 million
* Second quarter of 2017/18 was positive both sequentially and year-on-year
* EBIT for the first half 2017/18 is 12.1% below last year's comparison value
* Net debt of EUR -15.7 million (gearing ratio: 7.1%)
* Nation-wide road safety and traffic management concession in Zambia
* After the end of the quarter: awarded contract for a nation-wide toll system
in Bulgaria

"The second quarter was positive both sequentially and year-on-year. Revenues
continued to increase and the operating result (EBIT) rose as well. Furthermore,
I am delighted that for the first time Kapsch TrafficCom employed more than
5,000 employees worldwide as of the quarterly reporting date," says Georg
Kapsch, CEO of Kapsch TrafficCom.

______________________________________________________________________________
|Unless otherwise | | | |
|stated, all values| H1 2017/18| H1 2016/17| +/-|
|in_EUR_million____|___________________|___________________|___________________|
|Revenues__________|______________339.8|______________305.4|_____________+11.3%|
|EBIT______________|_______________25.3|_______________28.7|_____________-12.1%|
|EBIT_margin_______|_______________7.4%|_______________9.4%|_____________-2.0%p|
|Profit for the | 14.1| 20.1| -30.1%|
|period____________|___________________|___________________|___________________|
|Earnings per share| 1.12| 1.58| -29.2%|
|(EUR)_____________|___________________|___________________|___________________|

Vienna, November 29, 2017 - Kapsch TrafficCom increased revenues by 11.3% to EUR
339.8 million in the first half of 2017/18. This was due to the ETC (Electronic
Toll Collection) segment, which grew by 15.9%. The IMS (Intelligent Mobility
Solutions) segment's revenues were 1.7% lower mainly because non-core business
projects have expired which were taken over in connection with the acquisition
of the transportation business of Schneider Electric (in 2016).

The EBIT of EUR 25.3 million was EUR 3.4 million (-12.1%) lower than the
previous year due to the low value in the first quarter of this year. The
following effects influenced operating profitability in the first six months of
the current fiscal year:

* Negative currency effects, mainly from the USD, ZAR and SEK currencies, placed
a burden of EUR -5.9 million on the EBIT, i.e., EUR 8.2 million more than in
H1 2016/17.
* The EBIT in H1 2016/17 contained a positive one-time effect of EUR 3.0
million.
* In the course of extending the tolling project in the Czech Republic in 2016,
it was necessary to lower prices. This has an impact on profitability this
fiscal year. The decline in profits should be offset by profitable new
business.
* After the integration of the transportation business acquired from Schneider
Electric in 2016 the synergies have not been fully realized in the US. In
order to advance this process, a number of measures have been taken and
already implemented in some cases. Positive effects should gradually become
noticeable in the current fiscal year.
*

When adjusted by the first 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 achieved significant EBIT growth during the normal
course of business.

The higher currency losses (by EUR 4.1 million) and lower currency gains (by EUR
-1.9 million) compared to H1 2016/17 were the main reasons for the decline in
the financial result to EUR -5.8 million (H1 2016/17: EUR -0.1 million). The
profit for the period was EUR 14.1 million (H1 2016/17: EUR 20.1 million), and
the earnings per share was EUR 1.12 (H1 2016/17: EUR 1.58).

Zwtl.: Segment results.

In H1 2017/18, 76.7% of the revenue fell to the ETC segment and 23.3% to the IMS
segment.
______________________________________________________________________________
|ETC | | | |
|(ElectronicToll | | | |
|Collection). | H1 2017/18| H1 2016/17| +/-|
|Unless otherwise | | | |
|stated, all values| | | |
|in_EUR_million____|___________________|___________________|___________________|
|Revenues__________|______________260.7|______________224.9|_____________+15.9%|
|EBIT______________|_______________32.1|_______________34.2|______________-6.1%|
|EBIT_margin_______|______________12.3%|______________15.2%|_____________-2.9%p|

The EBIT in H1 2016/17 included a positive one-time effect of EUR 0.9 million.

______________________________________________________________________________
|IMS (Intelligent | | | |
|Mobility | | | |
|Solutions). | H1 2017/18| H1 2016/17| +/-|
|Unless otherwise | | | |
|stated, all values| | | |
|in_EUR_million____|___________________|___________________|___________________|
|Revenues__________|_______________79.1|_______________80.5|______________-1.7%|
|EBIT______________|_______________-6.8|_______________-5.4|_____________-25.7%|
|EBIT_margin_______|______________-8.6%|______________-6.8%|_____________-1.9%p|

The EBIT in H1 2016/17 included a positive one-time effect of EUR 2.1 million.

Zwtl.: Free cash flow and balance sheet.

In particular, the strong increase in trade receivable of EUR 13.7 million
resulted in a negative free cash flow of EUR -1.0 million in the first half of
the year. As a consequence, as well as a result of the dividend payment of EUR
19.5 million and the expenses for investments and acquisitions, the net credit
of EUR 19.6 million as of March 31, 2017 decreased to a net debt of EUR -15.7
million as of September 30, 2017 (gearing ratio of 7.1%). The equity ratio
declined slightly from 35.0% to 34.8%, mainly as a result of the dividend
payment. Nevertheless, the management believes that the balance sheet is still
solid.

Zwtl.: Outlook.

The corporate bond issued in 2010 was repaid as scheduled at the beginning of
November. In 2016, Kapsch TrafficCom obtained the funds necessary for this by
issuing a promissory note bond. The repayment of the 4.25% bond will discharge
the interest income and has a shortening effect on the balance sheet. This has a
positive effect on the equity ratio. However, it is currently examined whether
the company can use the favorable interest rate environment in the medium or
long term.

The company expects an increase in revenues of approximately 10% for the current
fiscal year. Nevertheless, it will be a challenge to again reach the EBIT of the
previous year, adjusted for the one-off effect (EUR 3.0 million) and for adverse
exchange rate fluctuations. The company does not expect to achieve a positive
EBIT contribution in the IMS segment in 2017/18.
You can find the report on the first half of 2017/18 at: http://kapsch.net/ktc/
ir

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
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:
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

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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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

Original-Content von: Kapsch TrafficCom AG, übermittelt durch news aktuell