Kapsch TrafficCom AG: Result for the first three quarters of 2023/24.

EQS-News: Kapsch TrafficCom AG / Key word(s): Quarter Results
Kapsch TrafficCom AG: Result for the first three quarters of 2023/24.

21.02.2024 / 07:15 CET/CEST
The issuer is solely responsible for the content of this announcement.

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Kapsch TrafficCom - Result for the first three quarters of 2023/24.

Highlights.

  * Reported revenues of EUR 400 million are 4% below previous year due to
    customer credit and margin adjustments for projects in progress.

  * Cash inflow from settlement agreement in Germany significantly improved
    financial position, net assets and results of operations.

* Operating result (EBIT) increased to EUR 70 million.

  * Successful completion of existing and numerous new projects should soon
    be reflected in revenues, earnings and liquidity.

  * Outlook to financial year 2023/24: Revenue growth in single-digit
    percentage range and significant improvement in operating result (EBIT);
    further major project awards expected.

"Although we still had relatively high value adjustments from old orders, we
managed to stabilize the result. Due to a significant improvement of our
organization and our processes, we expect a drastic reduction in the need
for value adjustments in the future. Both product quality and a
correspondingly lower cost base will not only improve our results, but also
further increase our competitiveness," says Georg Kapsch, CEO of Kapsch
TrafficCom.

  Unless otherwise stated, all values in      Q1-Q3      Q1-Q3        +/-
  EUR million.                              2022/23    2023/24
  Revenues                                    414.4      400.0      -3.5%
  EBIT                                          9.8       70.0     >+500%
  EBIT margin                                  2.4%      17.5%    +15.2p-
                                                                        p
  Result for the period attributable to         2.3       38.3     >+500%
  equity holders
  Earnings per share (EUR)                     0.18       2.95     >+500%

Vienna, February 21, 2024 - In the first three quarters of financial year
2023/24, a decisive course for the future was set by the Kapsch TrafficCom
Group. Although the developments are not yet fully reflected in revenues and
earnings, the management believes that a turning point has been reached that
should also be reflected in future earnings and liquidity.

Significant events and project developments.

An important milestone in July was the settlement agreement reached in the
arbitration proceedings between the joint venture autoTicket and the Federal
Republic of Germany. This has led to a cash inflow of EUR 79 million to
date, which is reflected in the EBIT in the amount of EUR 72 million and
enabled the repayment of financial liabilities in the amount of EUR 63
million.

In addition, Kapsch TrafficCom had previously reached an agreement with its
major financial creditors in May on a restructuring of the financing, which
places the financing structure on a longer-term basis. In accordance with
this agreement, Kapsch TrafficCom carried out a capital increase of 10% of
the existing share capital in November, which was successfully placed with
the pro rata participation of the main shareholder KAPSCH-Group Beteiligungs
GmbH. The 1,300,000 new shares have been traded on the Vienna Stock Exchange
since November 24, thus increasing the number of shares to 14,300,000.

After nearly three challenging and eventful years for Kapsch TrafficCom and
after completing key milestones, Andreas Hämmerle has left the Executive
Board and as CFO on the best of terms in the reporting period. "Andreas
Hämmerle has contributed to maneuvering Kapsch TrafficCom out of a
challenging situation into calmer waters and to steering the company towards
the future. I would like to thank Andreas Hämmerle for his great personal
commitment to Kapsch TrafficCom and wish him all the very best," said Franz
Semmernegg, Chairman of the Supervisory Board.

In operational terms, Kapsch TrafficCom successfully continued to develop
existing projects and transitioned several implementation projects into
operation. In South Africa, the contract for the operation of the tolling
system in the province of Gauteng was again extended until June 2024.

Numerous new orders not only confirm the increasing market dynamics, they
also point the way to the road of the future with tolling services and
connected mobility: In the area of tolling, Kapsch TrafficCom as part of a
joint venture received an order from a Swiss toll service provider for
vehicle equipment, data collection from heavy goods vehicles and customer
service for at least eight years. In the area of traffic management, Kapsch
TrafficCom was commissioned to implement a Cooperative Intelligent Transport
System (C-ITS) with hardware and software for construction site areas in a
highway project in Germany and subsequently operate it for up to 12 years.

Earnings position.

The key figures for the first three quarters of 2023/24 only partially
reflect the developments described above. At EUR 400 million, revenues were
4% below the previous year's figure of EUR 414 million. This decline was
partly due to a customer credit of EUR 6 million in the first quarter. In
the third quarter, Kapsch TrafficCom was able to achieve higher invoiced
revenues due to good project progress, which led to a corresponding cash
inflow. However, this was reduced by EUR 18 million (Q3 2022/23: EUR +3
million) due to accrued revenues from orders in progress in the past and
margin value adjustments.

The operating result (EBIT) increased from EUR 10 million in the same period
of the previous year to EUR 70 million. This significant increase includes
the following effects in particular:

  * The one-off effects from the settlement in Germany led to an increase in
    EBIT of EUR 72 million.

  * After an agreement was reached with a customer regarding overdue
    receivables, a credit note was issued (reduction in revenues), which in
    turn led to a reversal of the value adjustment for these receivables and
    a positive effect on earnings of EUR 5 million.

  * The cost of materials and other purchased production services increased
    by EUR 5 million compared to the previous year, influenced by
    unfavorable exchange rate developments and inflation adjustments.

  * Personnel costs decreased by EUR 9 million compared to the previous
    year, primarily due to the reduction in the number of employees.

  * Some implementation projects in the USA as well as in other regions
    recorded a deterioration in margins due to increased costs and the
    resulting adjustments. This had a negative impact on EBIT in the amount
    of EUR 19 million (previous year: EUR 8 million). These difficulties
    should be largely resolved over the course of the year as the relevant
    projects are gradually completed.

Adjusted for the effects of the settlement agreement in Germany, the
customer credit and the project margin adjustments, EBIT for the first three
quarters would have totaled EUR 13 million.

The financial result decreased to EUR -23 million in the first three
quarters of 2023/24 (previous year: EUR -5 million), primarily due to higher
interest expenses, one-off costs in connection with the restructuring of
financing and effects from exchange rate changes. Kapsch TrafficCom expects
significantly lower interest expenses going forward, as financial
liabilities have been significantly reduced and the high one-off costs for
refinancing can be discontinued.

The result for the period attributable to equity holders increased to EUR 38
million compared to EUR 2 million in the same period of the previous year.
Earnings per share amounted to EUR 2.95 (previous year: EUR 0.18).

Segment performance.

In the tolling segment, revenues fell from EUR 304 million in the previous
year to EUR 282 million, of which EUR 6 million was attributable to the
customer credit. The share of total revenues therefore was 70%. EBIT
amounted to EUR 58 million after EUR -2 million in the same period of the
previous year. The enormous increase reflects the effect of the settlement
agreement in Germany, however, the margin deterioration particularly in
implementation projects significantly dampened the development.

The traffic management segment recorded revenue growth from EUR 111 million
to EUR 118 million, increasing its share of total revenue to 30%. EBIT
increased from EUR 12 million to EUR 13 million.

In regional terms, revenues in the EMEA region (Europe, Middle East, Africa)
were slightly above the previous year's level in the past nine months, while
the Americas (North, Central and South America) and Asia-Pacific regions
recorded declines of 9% and 7% respectively.

Financial and asset position.

Free cash flow amounted to EUR 49 million in the first three quarters after
EUR 2 million in the same period of the previous year. This increase was
primarily due to the increase in earnings, while net working capital could
be reduced by EUR 7 million in the reporting period in connection with the
invoiced projects in progress.

On the assets side of the balance sheet, current assets increased, primarily
due to the rise in trade receivables. Current contract assets could be
reduced by EUR 11 million due to the aforementioned invoicing of projects in
progress. The liabilities side is characterized by the significant increase
in equity by 90% to EUR 97 million and a shift in the liability structure
from current to non-current liabilities, the repayment of financial
liabilities as well as an increase in trade payables.

The equity ratio thus rose to 20% as of December 31, 2023 after 11% as of
March 31, 2023. Net debt decreased from EUR 186 million to EUR 134 million.
Consequently, the gearing ratio was reduced significantly and amounted to
138% after 363% at the end of the financial year.

Outlook.

In the course of the financial year to date, Kapsch TrafficCom has won
numerous new projects that form a solid basis for further growth and are
also of strategic importance. In addition, further project tenders are to be
awarded. Kapsch TrafficCom sees this as confirmation of the increase in
market dynamics.

The settlement concluded in Germany led to a significant improvement in the
operating result and key financial indicators. Building on this, the focus
remains on consistent cost and liquidity management, improving key financial
indicators and new business.

For the financial year 2023/24, the Executive Board continues to expect
revenue growth in the single-digit percentage range and a significant
improvement in the operating result (EBIT).

The report on the first three quarters of 2023/24 as well as further
materials on the results are scheduled to be available today, from 7:35 a.m.
(CET), at: www.kapsch.net/ir

Kapsch TrafficCom is a globally renowned provider of transportation
solutions for sustainable mobility with successful projects in more than 50
countries. Innovative solutions in the application fields of tolling,
tolling services, traffic management and demand management contribute to a
healthy world without congestion.

With one-stop-shop-solutions, the company covers the entire value chain of
customers, from components to design and implementation to the operation of
systems.

Kapsch TrafficCom, headquartered in Vienna, has subsidiaries and branches in
more than 25 countries and is listed in the Prime Market segment of the
Vienna Stock Exchange (ticker symbol: KTCG). In its 2022/23 financial year,
about 4,000 employees generated revenues of EUR 553 million.

         Press contacts:           Sandra          Investor contact: Marcus
         Carolin Treichl     Bijelic Head            Handl, Valerie Riegler
          Executive Vice     of Corporate    Investor Relations team Kapsch
   President Marketing &    Communicatio-      TrafficCom AG Am Europlatz 2
   Communications Kapsch        ns Kapsch     1120 Vienna, Austria T +43 50
       AG Am Europlatz 2       TrafficCom                          811 1122
    1120 Vienna, Austria            AG Am    (1)IR.kapschtraffic@kapsch.net
       T +43 50 811 1710      Europlatz 2                                1.
   (1)carolin.treichl@ka     1120 Vienna,    mailto:ir.kapschtraffic@kapsch
            psch.net  1.        Austria T                              .net
   mailto:carolin.treich       +43 50 811
            l@kapsch.net             1720
                             (1)sandra.bi
                             jelic@kapsch
                                 .net  1.
                             mailto:sandr
                             a.bijelic@ka
                                 psch.net

Further information: www.kapsch.net Follow us on Twitter and LinkedIn


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21.02.2024 CET/CEST This Corporate News was distributed by EQS Group AG.
www.eqs.com

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   Language:       English
   Company:        Kapsch TrafficCom AG
                   Am Europlatz 2
                   1120 Vienna
                   Austria
   Phone:          +43 50811 1122
   Fax:            +43 50811 99 1122
   E-mail:         ir.kapschtraffic@kapsch.net
   Internet:       www.kapschtraffic.com
   ISIN:           AT000KAPSCH9
   WKN:            A0MUZU
   Listed:         Vienna Stock Exchange (Official Market)
   EQS News ID:    1841337

End of News EQS News Service
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1841337 21.02.2024 CET/CEST