Slide 1: Investor Presentation March 2021
Challenging the Kapsch TrafficCom limits of mobility Investor Presentation. for a healthy world March 2021. without congestion.
Slide 2: Disclaimer
Disclaimer. This presentation is made by Kapsch TrafficCom AG (“Kapsch TrafficCom”) solely for use at this presentation. It is furnished to you solely for your information and its content may not be copied, distributed, disclosed or otherwise be made available, directly or indirectly, to any other p
Slide 3: Kapsch TrafficCom. At a glance.
Kapsch TrafficCom. At a glance. Provider of Intelligent Financial parameters Transportation Solutions ▪ Revenues: > EUR 500 mn ▪ Tolling ▪ Employees: ~5,000 ▪ Traffic Management ▪ Presence: >30 countries ▪ References: >50 countries Financial year: April 1 – March 31 Technological forerunner Listed a
Slide 4: Reporting segments
Reporting segments. INTELLIGENT MOBILITY SOLUTIONS (IMS) / ELECTRONIC TOLL COLLECTION (ETC) / TOLLING TRAFFIC MANAGEMENT ▪ Pioneer and technology leader in electronic toll collection. ▪ Combines conventional traffic management with smart traffic solutions, demand management and data services. ▪ Uniq
Slide 5: Regional focus markets
Regional focus markets. Regional reporting EMEA (Europe, Middle East, Africa) Americas (North, Central and South America) APAC (Asia-Pacific) Revenues EMEA Americas APAC 53% 42% 5% 0% 20% 40% 60% 80% 100% Competition Fragmented market: ▪ regionally, ▪ by solutions/applications, ▪ by technology. Many
Slide 6: Market volume
Market volume. Target market and expected market development. KTC‘s total addressable market in 2020 KTC‘s total addressable market 2020-2027 (in EUR bn) (in EUR bn) 25 8 7.2 ITS market Demand management: Advanced public transportation systems 7 0.6 EUR 23.0 bn +38% CAGR CAGR 20 Tolling services: +6
Slide 7: Business model. Overview
Business model. Overview. Cover the customers’ entire value chain as a one-stop-shop. High degree of flexibility when responding to customer needs: From components, to building complete turnkey systems, to operating them. Components Implementation Operations Operations. Tolling services Develop, pro
Slide 8: Business model. System integrator with in-house production
Business model. System integrator with in-house production of hardware and software. Key components and systems (hardware and software) are developed and produced in-house. Hardware Software In-vehicle products. Commercial back office (tolling) On-board units, transponders Traffic management (DYNAC®
Slide 9: Market drivers
Market drivers. Infrastructure demand & funding Ecological footprint ▪ Growing car park and traffic volumes. ▪ European Green Deal ▪ More e-vehicles → lower fuel tax income. ▪ US-President Biden’s focus on climate ▪ CO2, particulate matter, noise Urbanization Individualization ▪ 60% of population in
Slide 10: Major long-term industry trends
Major long-term industry trends. Trends Shift from hardware to software platforms, data and services. Increasing long-term demand for toll charging and traffic management. Scarce public funds, stricter environmental regulations, stronger user pays principles; decreasing fuel tax income due to rise o
Slide 11: Strategy 2027
Strategy 2027. Strategic goals. Tolling is projected to remain the key driver of performance. Tolling services for business partners (B2B) and – to a certain extent – end Until year-end 2027… users (B2C) will gain importance. ▪ Revenues > EUR 1 bn − Grow stronger than market Traffic management will
Slide 12: USP
USP. What makes Kapsch TrafficCom unique? Ability to develop tailored solutions – proven track record More than 125 years in the technology industry Close to our customers Deep and comprehensive domain know-how Broad variety of technologies, prime quality Integrated, one-stop-shop Only real global p
Slide 13: Financial results Q1-Q3 2020/21
Financial results. Q1-Q3 2020/21.
Slide 14: Q1-Q3 2020/21 Highlights
Q1-Q3 2020/21. Highlights. Expiry of major projects, COVID-19, special effects, internal challenges led to a decline in revenues and negative EBIT. Restructuring measures have shown the first signs of success; free cash flow is positive again. Acquisition of the remaining shares in tolltickets; sale
Slide 15: Special effects on EBIT in Q1–Q3 2020/21
Special effects on EBIT in Q1–Q3 2020/21. Adjustments of project margins and provisions for onerous contracts EUR -50 mn For projects, especially in North America, adjustments in project margins and set up of provisions for onerous contracts were necessary. Goodwill impairment EUR -21 mn Full impair
Slide 16: Current impact of COVID-19 and Brexit
Current impact of COVID-19 and Brexit. COVID-19. Significant decrease in business with on-board units. ▪ In Q1–Q3 2020/21, 7.5 million OBUs were sold (10.1 million in Q1–Q3 of the previous year) ▪ ETC component revenues fell by 34% in Q1–Q3 2020/21 Increased delays in tenders and contract awards. Vi
Slide 17: Other key financials
Q1-Q3 2020/21. Other key financials. Balance sheet total Net CAPEX Free cash flow Net debt and equity ratio 12 11.4 10 800 755.2 727.2 2.4 0 0.8 700 10 0 614.1 8.5 -50 600 8 in EUR mn in EUR mn in EUR mn in EUR mn -10 500 -100 6 400 -20 31% -150 300 4 -19.8 25% 200 1.8 -30 -200 -175.7 18% 2 -190.2 -
Slide 18: Segment results Q1-Q3 2020/21
Q1-Q3 2020/21. Segment results. ELECTRONIC TOLL COLLECTION (ETC) INTELLIGENT MOBILITY SOLUTIONS (IMS) All figures in EUR mn Q1-Q3 Q1-Q3 All figures in EUR mn Q1-Q3 Q1-Q3 unless otherw ise stated 2019/20 2019/20 2020/21 +/- unless otherw ise stated 2019/20 2019/20 2020/21 +/- Revenues 563.5 420.1 279
Slide 19: Outlook
Outlook. Outlook to FY 2020/21. ▪ Revenues: above EUR 500 mn ▪ EBIT: loss could exceed EUR -100 million ▪ No dividend for FY 2020/21 Mar 2021 | Investor Presentation www.kapschtraffic.com | 19
Slide 20: Sustainability in the DNA of Kapsch TrafficCom
Sustainability in the DNA of Kapsch TrafficCom. A brief overview. Sustainability has always been inherent in the business model and a matter of course. However, „do good and tell people about it„ was not considered to be relevant for a while. (This has changed so reporting will improve steadily.) Th
Slide 21: Impact of COVID-19 forward looking
Impact of COVID-19 Forward looking. Impact on market Consequences on market Relevance for Kapsch TrafficCom 1 Economic downturn Governments launch investment programs + Tolling systems generate income for govmt 2 Shift to individual transport Modal shift from public to individual transport + Increas
Slide 22: Kapsch TrafficCom share
Kapsch TrafficCom share. Shareholder structure Institutional investors by region Research coverage* Erste Group Under review Under review Kepler Cheuvreux Hold EUR 16.00 ODDO BHF/FMR Hold EUR 18.00 Source: Shareholder survey, participation notice, estimates Raiffeisen Centrobank by Kapsch TrafficCom
Slide 23: Share price development (last 12 months)
Share price development (last 12 months). Kapsch TrafficCom and ATX Prime. A tender, which saw KTC as best bidder, terminated 120 Profit warning: Revised outlook, no dividend for 2020/21 100 109 80 71 60 2019/20 Q1 9m H1 40 Profit warning: FY results below Profit warning: Q1 below Profit warning: Im
Slide 24: Thank you for your attention
Thank you for your attention. Kapsch TrafficCom Kapsch TrafficCom AG Am Europlatz 2 1120 Vienna, Austria P: +43 50 811 - 0 IR.kapschtraffic@kapsch.net www.kapschtraffic.com/IR Please Note: The content of this presentation is the intellectual property of Kapsch TrafficCom AG and all rights are reserv
Slide 25: Appendix
Kapsch > challenging limits Appendix.
Slide 26: Dividends
Dividends. Dividend policy* At least the higher of 1/3 of the earnings per share (EPS) and EUR 1. Depending on economic development, the market environment and capital needs for upcoming projects, the dividend payment can be higher or lower. ... ... However, within a reference period of 3 years, the
Slide 27: Promissory note bond & long-term bank loan
Promissory note bond & long-term bank loan. 2016 2021 Corner stones of the promissory note bond Promissory note bond PNB: EUR -26mn (PNB) Issued 2016 PNB: EUR -4.5mn EUR 62.0mn PNB: USD -14.5mn Volume: EUR 62mn + USD 14.5mn USD 14.5mn 3 tenors (5/7/10 years) Partially fixed interest, partially varia
Slide 28: Overview of Kapsch TrafficCom's offices
Overview of Kapsch TrafficCom‘s offices. As of March 31, 2020. Czech Republic 1 Austria 8 Sweden 3 Canada 1 Germany 3 Russia 1 Lithuania 1 Netherlands 1 Poland 1 USA 29 Kazakhstan 1 UK 1 Belarus 1 France 1 Slovenia 1 Spain 19 Italy 1 Bulgaria 1 Mexico 3 Saudi Arabia 3 Puerto Rico 1 UAE 1 Panama 1 Br
Slide 29: The emergence of Kapsch TrafficCom
The emergence of Kapsch TrafficCom. More than 125 years in the ever-changing electronic industry. 1892 Morse telegraph devices 1995 2002 2007 Telephones (fixed and mobile) Kapsch founded Capacitors and dry batteries Contract for the realization of Kapsch Aktiengesellschaft IPO of Kapsch TrafficCom R
Slide 30: We make traffic solutions intelligent
We. make traffic solutions intelligent. Why is this so important to us? ❖ Because we want you to reach your destination quickly, comfortably, and safely. ❖ Because we want to enable our customers to provide the very best service at a low cost. ❖ Because we want to protect the environment.