Kapsch TrafficCom AG: Result for the financial year 2023/24.

EQS-News: Kapsch TrafficCom AG / Key word(s): Annual Results
Kapsch TrafficCom AG: Result for the financial year 2023/24.

19.06.2024 / 07:15 CET/CEST
The issuer is solely responsible for the content of this announcement.

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Kapsch TrafficCom - Result for the financial year 2023/24.

Highlights.

* Project successes strengthen future revenues and earnings.

  * Result from operating activities (EBIT) increased significantly to EUR
    70 million.

* Key financial indicators show solid basis again.

  * Settlement agreement in Germany significantly improved the financial
    position.

  * Outlook to financial year 2024/25: revenue growth over market growth and
    improvement in adjusted EBIT.

"Kapsch TrafficCom is on the right track, even if this is not yet reflected
in the operating figures. Our highly motivated team has paved the way for
the future of our company through successes in the market and in
technology," says Georg Kapsch, CEO of Kapsch TrafficCom.

  Unless otherwise stated, all values in EUR      2022/2-    2023/2-        +/-
  million.                                              3          4
  Revenues                                          553.4      538.8      -2.6%
  EBIT1)                                              5.2       70.3     >+500%
  EBIT margin1)                                      0.9%      13.0%    +12.1p-
                                                                              p
  Result for the period attributable to equity      -24.8       23.2          -
  holders
  Earnings per share (EUR)                          -1.91       1.72          -

1) Adjustment previous year: reporting of gains from derivative financial
instruments in financial income


Vienna, June 19, 2024 - The Kapsch TrafficCom Group reached key milestones
in the financial year 2023/24 that put the company back on a solid base for
the future. On the one hand, the financial and net assets position as well
as the results of operation improved significantly compared to the previous
year, while on the other hand, Kapsch TrafficCom was able to make
significant progress on projects and was awarded new orders, which will
increasingly be reflected in revenues, earnings and liquidity.

Significant events and project developments.

In July 2023, a settlement agreement was reached in the arbitration
proceedings between the autoTicket joint venture and the Federal Republic of
Germany. This led to a total cash inflow of EUR 109 million in the reporting
period, which was reflected in EBIT in the amount of
EUR 79 million and enabled the repayment of financial liabilities in the
amount of EUR 88 million.

In May 2023, Kapsch TrafficCom already agreed a financing restructuring with
its major financial creditors, which led to a longer-term financing
structure and has since been extended until March 2026. In accordance with
this agreement, a capital increase of 10% of the existing share capital was
conducted in November 2023.

In addition, Kapsch TrafficCom was able to achieve significant project
successes in the past financial year. Milestones were reached in existing
projects that will lead to incoming payments, some implementation projects
were transitioned into the operation phase, in South Africa the operation of
the tolling system in the Gauteng province was extended again and, last but
not least, we were awarded numerous new orders. Of particular strategic
importance are those that point the path to the future of roads with tolling
services and connected vehicles.

The order intake reached a remarkable EUR 734 million in the reporting
period, 53% more than in the previous year, and the order backlog amounted
to EUR 1.4 billion at the end of the year, 15% higher than in the previous
year. The key financial indicators improved significantly as a result of
these developments.

Earnings position.

At EUR 539 million, Kapsch TrafficCom's revenues in the financial year
2023/24 were 3% below the previous year's figure of EUR 553 million. The
decline in reported net revenues was primarily due to a customer credit note
in the amount of EUR 6 million, accrued revenues from orders in progress and
margin value adjustments. By contrast, the invoiced revenues in the
reporting period were higher than in the previous year, resulting in an
increase in receivables from customers and a corresponding expected cash
inflow.

In regional terms, revenues in the EMEA region (Europe, Middle East, Africa)
were 2% higher than in the previous year, while the Americas (North, Central
and South America) and Asia-Pacific regions recorded a decline of 7% and 12%
respectively following the growth of previous years.

At EUR 70 million, the result from operating activities (EBIT) significantly
exceeded the previous year's figure of EUR 5 million (adjusted). The
increase was influenced in particular by the following one-time effects:

  * The one-time effects from Germany led to an increase in EBIT of EUR 79
    million.

  * After an agreement was reached with a customer regarding overdue
    receivables, the allowances for these receivables were reversed in the
    amount of EUR 10 million. In contrast, a credit note was issued, which
    led to the reduction in revenues. The EBIT effect therefore amounted to
    EUR 5 million.

  * For some projects in the Americas region, the project margins were
    adjusted, revenue and contract assets from customer contracts were
    reduced and provisions for onerous contracts were recognized. This had a
    negative impact of EUR 25 million on EBIT.

  * Costs in connection with the restructuring are reflected in EBIT in the
    amount
    of EUR 3 million.

Adjusted for these one-time effects, EBIT for the financial year would have
amounted
to EUR 15 million.

The financial result decreased from EUR -14 million (adjusted) in the
previous year to
EUR -30 million in the 2023/24 financial year. The main deviations resulted
from the increase in interest expenses and the one-time costs recognized in
connection with the restructuring of financing.

The result for the period attributable to equity holders grew to EUR 23
million compared to
EUR -25 million in the previous year. This corresponds to earnings per share
of EUR 1.72 (previous year: EUR -1.91).

Segment results for the financial year 2023/24.

In the tolling segment, revenues decreased by 6% compared to the previous
year from
EUR 403 million to EUR 378 million, of which EUR 6 million was attributable
to the customer credit. The share of total revenues was 70% (previous year:
73%). EBIT amounted to EUR 54 million after EUR -9 million (adjusted) in the
previous year. The enormous increase reflects the effect of the settlement
agreement in Germany, but the deterioration in margins in implementation
projects as well as the adjustment and provisions for projects to be
completed in the Americas region had a significant dampening effect on
performance.

  Results tolling. Unless otherwise stated, all values    2022/-    2023/-     +/-
  in EUR million.                                             23        24
  Revenues                                                 403.4     378.3    -6.-
                                                                                2%
  EBIT1)                                                    -9.3      54.3       -
  EBIT margin1)                                            -2.3%     14.4%       -

1) Adjustment previous year: reporting of gains from derivative financial
instruments in financial income

The traffic management segment recorded revenue growth of 7% from EUR 150
million to
EUR 161 million, with its share of total revenues increasing to 30%. EBIT
increased from
EUR 15 million to EUR 16 million.

  Results traffic management. Unless otherwise stated,    2022/-    2023/-      +/-
  all values in EUR million.                                  23        24
  Revenues                                                 150.0     160.5    +7.0-
                                                                                  %
  EBIT1)                                                    14.6      15.9    +9.3-
                                                                                  %
  EBIT margin1)                                             9.7%      9.9%    +0.2-
                                                                                 pp

1) Adjustment previous year: reporting of gains from derivative financial
instruments in financial income

Financial and asset position.

Free cash flow reached EUR 106 million in the past financial year after EUR
3 million (adjusted) in the previous year. This increase was primarily due
to the effect from Germany and the sale of the shares in Traffic Technology
Services, Inc, USA.

On the assets side of the balance sheet, non-current assets decreased,
primarily in connection with the effects from Germany. Current assets
reflect the increase in trade receivables and the reduction in non-current
and current contract assets from customer contracts due to higher invoiced
revenues. The liabilities side is characterized by the significant increase
in equity by 63% to EUR 83 million and a shift in the liability structure
from current to non-current liabilities as well as the repayments of
financial liabilities.

The equity ratio thus grew to 19% after 11% on the previous year's balance
sheet date. Net debt decreased from EUR 186 million to EUR 106 million. As a
result, the gearing ratio was significantly reduced and amounted to 127%
compared to 363% at the end of the previous year.

As expected, Kapsch TrafficCom will propose to the Annual General Meeting
that no dividend be distributed for the financial year 2023/24 due to the
financing agreement reached with the banking partners.

Strategic progress.

In the reporting period, Kapsch TrafficCom started a review of Strategy
2027. As a first step, one investment that was not part of the strategic
core business was sold in March and one in April 2024.

The company also took significant steps forward in the area of
sustainability: The "Green Vision", which is based on sustainable products
and a sustainable company, was further developed. In addition, Kapsch
TrafficCom carried out a comprehensive materiality analysis in the past
financial year in order to be able to address the key sustainability matters
in a focused manner.

Outlook.

For the financial year 2024/25, the management expects revenues to grow
above the forecasted average annual market growth of 7.5% from 2024 to 2030
according to Grand View Research. The operating result (EBIT) should show a
slight improvement compared to the result adjusted for one-time effects of
EUR 15 million, whereby positive one-time effects are also possible again.
Despite the improved situation, the focus remains on costs.

The management continues to aim for further cash inflows from pending
proceedings and other measures to further reduce net debt. The aim is to
achieve a minimum level of net debt to EBITDA of less than 3.0x in the
longer term.

Global megatrends as well as growing awareness and legal requirements
regarding climate and environmental protection are increasing the demand for
comprehensive and intelligent transportation solutions. More and more, this
confirms that Kapsch TrafficCom is addressing the right issues with its
Strategy 2027, even if implementation is taking longer than originally
assumed due to the market situation.

The report on the financial year 2023/24 as well as further materials on the
results are scheduled to be available today, from 7:35 a.m. (CEST), 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 2023/24 financial year,
about 4,000 employees generated revenues of EUR 539 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 LinkedIn


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19.06.2024 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:    1928085

End of News EQS News Service
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1928085 19.06.2024 CET/CEST