Investor Presentation - January 2017 - Kapsch
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Kapsch TrafficCom Investor Presentation. January 2017.
Kapsch.
KTC: Leading Entity of the Kapsch Group.
Kapsch founded in Vienna in 1892
Electronic industry
Strong brand in Austria
Three key entities
Kapsch TrafficCom - KTC
(Intelligent Transportation Systems)
Kapsch BusinessCom
(ICT solutions for enterprises) KTC: Tradition meets Future.
Kapsch CarrierCom 125 years in the ever-changing electronic
(Telematics and telecommunications industry are a proof of the sustainable
solutions for rail and urban public transport business approach and the entrepreneurial
operators, carrier networks and energy spirit within the family-owned
supply companies) Kapsch Group.
Family owned Group (only KTC listed) This, together with the professionalism,
structures and transparency required from a
Group revenues >EUR 1bn listed company, are key success factors for
Kapsch TrafficCom.
Investor Presentation www.kapschtraffic.com
www.kapsch.net | 2
Kapsch TrafficCom.
At a glance.
Provider of Intelligent Solid financials
Transportation Systems Revenues >EUR 500mn
Tolling EBIT margin Tolling >10%
(Electronic Toll Collection – ETC)
Mobility
(Intelligent Mobility Solutions – IMS)
Global player Listed at Vienna Stock
More than 4,800 employees Exchange
Presence in >30 countries Market cap ~EUR 500mn
References in >50 countries Free float 36.7%
Jan-17 | Investor Presentation www.kapschtraffic.com
www.kapsch.net | 3
USP.
What makes Kapsch TrafficCom unique?
Ability to develop tailored solutions – proven track record.
Close to our customers.
Domain know-how.
Integrated, one-stop-shop.
Global player.
Best practice
Risk diversification
A leading position in our core business.
Size and financial stability.
Listed (transparence, access to capital).
No principal-agent-conflict as one main shareholder is the
CEO.
Long-term view; sustainable measures not sacrificed for short-
term profits.
1/10/2017 |Presentation Title www.kapsch.net | 4
Strategy.
Addressing future-defining trends.
Urbanization
Convergence Connected cars
Ecological footprint Infrastructure funding
New business models
Trends Industry consolidation
Convenience Lower barriers to market entry
Price erosion Alternative technologies
Positioning as a leading provider
Implementation of new of intelligent mobility solutions.
Increased profitability as business models.
foundation for further growth.
Short-term Medium-term Long-term
Jan-17 | Investor Presentation www.kapschtraffic.com
www.kapsch.net | 5
Strategy.
Our priorities.
Existing customers New customers
New solutions
New solutions, business models and competences
Intelligent
Mobility
Solutions
Grow the
Existing solutions
core
business
Secure
the core
business
Extend and renew long-term contracts. Broaden offering. Build up solutions portfolio.
Maintain global on-board unit business. Tap new geographical markets. Expand core business from highways
Provide solutions for smaller road in the direction of cities.
operators and concessionaries.
Jan-17 | Investor Presentation www.kapschtraffic.com
www.kapsch.net | 6
Business model.
One-stop-shop.
Components Design & Build Operations
Toll Stations,
In-Vehicle Components Consulting
Vehicle Detection and Classification
Subsystems
Integration
Integration
Roadside Enforcement Stations Turnkey Systems Technical Operations
Back office Central System Commercial Operations
End-to-End Solutions as a One-Stop Shop
In-vehicle Components Transceivers & Readers Cameras & Sensors Toll & Enforcement Station Central System
Vehicle Vehicle
On-board Units (OBUs) Transceiver Mobile Reader Detection Registration Stationary Enforcement Back Office System
Programming Station Reader Vehicle Classification Mobile Enforcement
Jan-17 | Investor Presentation www.kapschtraffic.com
www.kapsch.net | 7
Portfolio.
Integrated ITS provider
Business to Government Business to Business Business to Consumers
(B2G) Services (B2B) Services (B2C) Services
Service
Provider Mobility Apps & Services
Data Provider Data Aggregation & Analytics
Tolling Traffic Management Safety & Security Smart Urban Mobility Other Solutions
3rd Party Solutions & Data
Electronic Toll Highway Traffic Road Safety
System Access Management V2X Products
Collection Management Enforcement
Provider &
Operator Commercial Vehicle
City Tolling Managed Lanes Smart Parking
Enforcement
Tunnel & Bridges Traffic Electronic Vehicle
Plaza Tolling Intermodal Mobility
Management Enforcement
Products/Software - Back Office System - System Integration - Payment Processing - Operations/Enforcement
Integration Layer “Multi-Application Suite”
Jan-17 | Investor Presentation www.kapschtraffic.com
www.kapsch.net | 8
Mobility.
Intelligent Mobility Solutions (IMS): From highways to cities.
URBAN TRAFFIC CORRIDOR
MANAGEMENT MANAGEMENT
CONGESTION SAFETY &
CHARGING SECURITY
TRAFFIC LIGHT
CONTROL
PARKING
PUBLIC
TRANSPORT
BRIDGE URBAN
P TUNNEL
ACCESS
HIGHWAY/ HIGHWAY/
MANAGED LANES ALERT
$ MANAGED LANES
CONNECTED VEHICLES
TOLLING TRAFFIC
DATA MANAGEMENT
Traffic
Train
Tolls
Jan-17 | Investor Presentation Bus www.kapschtraffic.com
www.kapsch.net | 9
Financials.
Earnings Overview.
All figures in EUR mn H1 H1 FY Revenues by Region H1 2016/17
unless otherwise stated 2016/17 +/- 2015/16 2015/16 5%
Austria
Revenues 311.7 27% 245.0 526.1 7%
EMEA (excl. Austria)
EBITDA 37.4 5% 35.7 76.9 28%
Americas
EBITDA margin 12.0% (2.6%p) 14.6% 14.6% 60%
APAC
EBIT 28.7 5% 27.4 62.3
EBIT margin 9.2% (2.0%p) 11.2% 11.9% Revenues by Segment H1 2016/17
Profit before tax (PBT) 28.7 16% 24.8 54.8 EUR mn
400
Profit for the period 20.1 5% 19.2 36.5 300
80
Profit for the period attributable to 38 IMS
20.6 23% 16.7 31.1 200
equity holders ETC
100 207 231
00
Earnings per share (EPS) 1.58 23% 1.28 2.39 H1 2015/16 H1 2016/17
Dec. 2016 | Investor Presentation www.kapschtraffic.com
www.kapsch.net | 10Other Key Financials.
Balance sheet total
Net investments Free cash flow Net credit/debt and equity ratio
The increase in net Free cash flow decreased to Despite Promissory note bond
investments to EUR 10.4mn EUR 17.0 million (-44%), • acquisition of KTT, (extension of balance sheet), an
was due to the acquisition of mainly as a result of the higher • purchase of 48% stake in acquisition (effect in equity),
KTT, and primarily related to amount of net investments in Kapsch Telematic Systems, and dividend payment lead to a
intangible assets. the wake of the KTT • payment of the dividend, reduction of the equity ratio.
acquisition. net debt of only EUR 0.5mn.
Jan. 2017 |Investor Presentation www.kapschtraffic.com
www.kapsch.net | 11Financials.
Tolling.
All figures in EUR mn H1 H1 FY
unless otherwise stated 2016/17 +/- 2015/16 2015/16
Revenues 231.2 12% 206.6 442.1
EBIT 34.2 17% 29.1 63.7
EBIT margin 14.8% 0.7%p 14.1% 14.4%
Revenues H1 2016/17 EBIT H1 2016/17
EUR 11.4mn from KTT Growth from operations projects in
Extension of contract in the Czech EMEA
Republic by up to 3 years KTT contributed EUR -2.8mn
Includes positive effect from badwill of
Replace the toll collection system at
EUR 0.9mn
all bridges and tunnels managed by
the Port Authority of New York and
New Jersey + maintenance
5.64 million on-board units
(4.60 million last year)
Jan. 2017 |Investor Presentation www.kapschtraffic.com
www.kapsch.net | 12Financials.
Mobility.
All figures in EUR mn H1 H1 FY
unless otherwise stated 2016/17 +/- 2015/16 2015/16
Revenues 80.5 110% 38.3 84
EBIT -5.4 -214% -1.7 -1.3
EBIT margin -6.8% -2.2%p -4.5% -1.6%
Revenues H1 2016/17 EBIT H1 2016/17
EUR 41.6mn from KTT Positive development of traffic
CHARM (UK/NL) had a positive management projects in South
impact Africa
Modernize integrated transportation Negative impact from Streetline
systems of the highway operations EUR 1.9mn from KTT
center in Massachusetts, USA. Includes badwill of EUR 2.1mn
(4yrs; EUR 10.3mn)
Jan. 2017 |Investor Presentation www.kapschtraffic.com
www.kapsch.net | 13Kapsch TrafficCom Share.
ISIN: AT000KAPSCH9 Stock Ticker Symbol: KTCG Reuters: KTCG.VI Bloomberg: KTCG AV
Shareholder Structure Institutional Investors by Region
Austria
Kapsch-Group 16.9 %
Beteiligungs GmbH
63.3 % Other
U.K. and Ireland 3.2 %
Institutional 11.0 %
investors
Other investors 23.3 % North America
and shares in 18.6 %
Private trading positions
investors 2.8 % Continental Europe
10.6 % (excl. Austria)
50.3 %
Basic Information Select Events
Listed in Prime Market segment at the
Vienna Stock Exchange since 2007 Feb 22, 2017 Q1-Q3 results 2016/17
13 million shares June 20, 2017 Results for FY 2016/17
Market cap: ~EUR 500mn Sep 6, 2017 AGM
Coverage by: Erste Group, Matelan,
RCB
Jan. 2017 |Investor Presentation www.kapschtraffic.com
www.kapsch.net | 14Outlook FY 2016/17.
Focus on driving forward the integration of KTT.
Minimizing costs and realizing synergies as quickly as possible.
Helping the ~900 new employees to become acquainted with and a part of the corporate culture of the Kapsch TrafficCom Group.
Annual revenues should grow by more than EUR 100 million.
ETC: EBIT margin is set to significantly exceed 10%.
IMS: EBIT margin will be adversely impacted by the integration and the lower EBIT contribution of KTT, as well as the
negative EBIT performance of Streetline.
New dividend policy:
At least 1/3 of the profit for the period
Annual Base Dividend of EUR 1.00
Dividend payment can be higher or lower; within a reference period of 3 years, average annual dividend at least EUR 1.00
Jan. 2017 |Investor Presentation www.kapsch.net | 15Disclaimer.
This presentation is made by Kapsch TrafficCom AG (“Kapsch TrafficCom”) solely for use at this Given these risks, uncertainties and other factors, recipients of this document are cautioned not
presentation. It is furnished to you solely for your information and its content may not be copied, to place undue reliance on these forward-looking statements. Kapsch TrafficCom disclaims any
distributed, disclosed or otherwise be made available, directly or indirectly, to any other person by obligation to update these forward-looking statements to reflect future events or developments.
any recipient, or published, in whole or in part, for any purpose.
This presentation does not constitute or form part of any offer or invitation to sell or issue, or any
The facts and information contained herein are as up to date as is reasonably possible and are solicitation of any offer to purchase or subscribe for, any securities of Kapsch TrafficCom in any
subject to revision in the future. Neither Kapsch TrafficCom nor any of its respective directors, jurisdiction in which such solicitation, offer or sale would be unlawful, nor shall part, or all, of this
officers, employees or advisors nor any other person makes any representation or warranty, presentation form the basis of, or be relied on in connection with, any contract or investment
express or implied, as to the accuracy, completeness or fairness of the information or opinions decision in relation to any securities. Any such offers will only be made when a prospectus is
contained in this presentation. Neither Kapsch TrafficCom nor any of its respective directors, published.
officers, employees and advisors nor any other person shall have any liability whatsoever for loss
howsoever arising, directly or indirectly, from any use of this presentation. This document is directed only at persons (i) who are outside the United Kingdom or (ii) who
have professional experience in matters relating to investments falling within Article 19(5) of the
Whilst all reasonable care has been taken to ensure that the facts stated herein are accurate and Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) (the
that the opinions contained herein are fair and reasonable, this document is selective in nature “Order”) or (iii) who fall within Article 49(2)(a) to (d) (“high net worth companies, unincorporated
and is intended to provide an introduction to, and overview of, the business of Kapsch associations etc.") of the Order (all such persons together being referred to as “Relevant
TrafficCom. Where any information and statistics are quoted from any external source, such Persons”). Any person who is not a Relevant Person must not act or rely on this presentation or
information or statistics should not be interpreted as having been adopted or endorsed by Kapsch any of its contents. Any investment or investment activity to which this presentation relates is
TrafficCom as being accurate. We have not independently verified market data provided by third available only to Relevant Persons and will be engaged in only with Relevant Persons.
parties or industry or general publications.
The shares have not been and will not be registered under the U.S. Securities Act of 1933, as
This presentation contains forward-looking statements, based on the beliefs and assumptions amended, or any U.S. state securities law.
currently held by the management of Kapsch TrafficCom, which are expressed in good faith and
are in its opinion, reasonable. These statements may be identified by words such as The distribution of this presentation in other jurisdictions may be restricted by law and persons
“expectation” or “target” and similar expressions, or by their context. Forward-looking statements into whose possession this presentation comes should inform themselves about, and observe,
involve known and unknown risks, uncertainties and other factors, which may cause actual any such restrictions. By accepting this presentation you agree to be bound by the foregoing
results, financial condition, performance, or achievements of Kapsch TrafficCom, or results of our instructions and restrictions.
industry generally, to differ materially from the results, financial condition, performance or
achievements expressed or implied by such forward-looking statements.
Jan. 2017 |Investor Presentation www.kapschtraffic.com
www.kapsch.net | 16Thank you for your attention. Hans Lang Investor Relations Officer Kapsch TrafficCom Kapsch TrafficCom AG Am Europlatz 2 1120 Vienna, Austria Phone: +43 50 811 1122 E-Mail: hans.lang@kapsch.net www.kapsch.net Please Note: The content of this presentation is the intellectual property of Kapsch AG and all rights are reserved with respect to the copying, reproduction, alteration, utilization, disclosure or transfer of such content to third parties. The foregoing is strictly prohibited without the prior written authorization of Kapsch TrafficCom AG. Product and company names may be registered brand names or protected trademarks of third parties and are only used herein for the sake of clarification and to the advantage of the respective legal owner without the intention of infringing proprietary rights.
Appendix.
Competition.
Overview.
Tolling Traffic Management Smart Urban Mobility Safety & Security Connected Cars
ETC Smart Parking
T-Systems Worldsensing V2X Automotive
Highway Road Safety Enforcement
Autostrade Tech | Q-Free Smart Parking | IPS Group Delphi | Denso | Continental
Delcan | Q-Free | SwRI Redflex | Jenoptik | Sensys
TransCore | Sanef its Inrix | Xerox LG Electronics | Bosch
TransCore | Siemens Gatso | Vitronic | Redspeed
Siemens
Urban Traffic Commercial Vehicle
City Tolling Managed Lanes V2X Infrastructure
Management Enforcement
Q-Free | MHI | IBM Delcan | Xerox | SICE Cohda | Savari | Neavia
Eagle | ISwarco | SICE IRD | Xerox | Mettler Toledo
Cubic | Siemens Q-Free | TransCore Arada | Dynniq
Econolite | Dynniq Drivewyze (IMS) | Iteris
Plaza Tolling Tunnel & Bridges Intermodal Mobility Electronic Vehicle
Tescidel | TransCore SICE | Delcan | Dynniq HaCon | Xerox | Moovel Registration Connected Services
G.E.A. | Indra | SICE Telegra | IBI Group Cubic | Siemens 3M | UTI | Neology n.a.
TransCore | Q-Free
Jan. 2017 |Investor Presentation www.kapschtraffic.com
www.kapsch.net | 19Consolidation of Kapsch TrafficCom Transportation.
Impact on H1 results.
Impact on the P&L Impact on the balance sheet* Other
Revenues EUR +53.0mn Property, plant & equipment EUR 0.7mn
Number of KTC Group employees
thereof ETC EUR +11.4mn Intangible assets EUR 5.2mn up by approximately 900.
thereof IMS EUR +41.6mn Other non-current assets EUR 0.2mn KTC is now in the top segment of
Inventories EUR 0.7mn
toll solution providers in the U.S.A.
EBIT EUR -0.9mn Strategic jump from the highways
Receivables & other current assets EUR 57.0mn
thereof ETC EUR -2.8mn into the cities.
Cash & cash equivalents EUR 9.5mn
thereof IMS EUR +1.9mn KTC has become a leading, globally
Liabilities, other liabilities & deferred income EUR -42.8mn active full-service provider.
Net assets acquired (provisionally) EUR 30.4mn Integration costs will weigh on
KTC’s profitability.
Purchase price*: EUR 27.4mn
Difference to net assets Integration to be completed by fall
acquired (badwill): EUR 3.0mn 2017.
* Provisionally determined; preliminary purchase price allocation.
Values may change subject to audit as well as through purchase price
adjustments.
Jan. 2017 | Investor Presentation www.kapschtraffic.com
www.kapsch.net | 20Promissory Note Bond.
Successful Issue.
2016 2021
Corner Stones of the Transaction
Issue EUR 26mn
EUR 62.0mn 1.22% p.a
Volume: EUR 62mn + USD 14.5mn
USD 14.5mn EUR 4.5mn
6M EURIBOR + 120bps
3 tenors (5/7/10 years)
USD 14.5mn Partially fixed interest, partially variable
3M LIBOR + 170bps Rationale:
Diversified investor base
Optimized financing structure
Refinancing of corporate bond (EUR 70.8mn outstanding)
maturing in November 2017
2017 2023 2026
Can be repaid early; higher flexibility
Corporate bond EUR 23m EUR 8.5mn
expires Extending effect on balance sheet
6M EURIBOR 2.26% p.a.
EUR70.8mn. + 150bps. (increase in cash and cash equivalents as well as in
non-current financial liabilities)
Jan. 2017 |Investor Presentation www.kapschtraffic.com
www.kapsch.net | 21H1 results.
P&L.
Jan. 2017 | Investor Presentation www.kapschtraffic.com
www.kapsch.net | 22H1 results.
Balance sheet.
Jan. 2017 | Investor Presentation www.kapschtraffic.com
www.kapsch.net | 23H1 results.
Shareholders‘ equity.
Jan. 2017 | Investor Presentation www.kapschtraffic.com
www.kapsch.net | 24H1 results.
Cash flow statement: Cash flow from operating activities.
Jan. 2017 | Investor Presentation www.kapschtraffic.com
www.kapsch.net | 25H1 results.
Cash flow statement, cont‘d.
Jan. 2017 | Investor Presentation www.kapschtraffic.com
www.kapsch.net | 26We make mobility solutions intelligent to . enable users to arrive at their destination comfortably, on time, safely, efficiently, and with minimal environmental impact.
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