Slide 1: Investor Presentation May 2021
Challenging the Kapsch TrafficCom limits of mobility Investor Presentation. for a healthy world May 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 Global player Transportation Solutions ▪ Revenues: > EUR 500 mn ▪ Tolling ▪ Employees: ~4,700 ▪ Traffic Management ▪ Presence: >25 countries ▪ References: >50 countries Financial year: April 1 – March 31 Technological forerunner Listed at Vienn
Slide 4: Reporting segments
Reporting segments. TOLLING TRAFFIC MANAGEMENT ▪ Pioneer and technology leader in electronic toll collection. ▪ Combines conventional traffic management with smart traffic solutions, demand management and data services. ▪ Unique experience in nation-wide toll systems. Electronic toll collection. Tra
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
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: 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 11: 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 12: Financial results Q1-Q3 2020/21
Financial results. Q1-Q3 2020/21.
Slide 13: 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 14: 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 15: 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) ▪ Tolling component revenues fell by 34% in Q1–Q3 2020/21 Increased delays in tenders and contract awards
Slide 16: 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 10 800 755 727 2 0 1 700 10 0 614 9 -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 -20 25% 200 2 -30 -200 -176 18% 2 -190 -183 100 0 -40 -250 0 2
Slide 17: Segment results
Q1-Q3 2020/21. Segment results. Tolling Traffic Management 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 563.5 420.1 279.6 -33% Revenues 167.7 125.3 104.9 -16% Imp
Slide 18: Outlook
Outlook. Outlook to FY 2020/21. ▪ Revenues: above EUR 500 mn ▪ EBIT: about EUR -124 mn incl. negative special effects of EUR -139 mn ▪ Equity ration of about 14% ▪ Liquid funds > EUR 100 million ▪ No dividend for FY 2020/21 May 2021 | Investor Presentation www.kapschtraffic.com | 18
Slide 19: 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 20: Impact of COVID-19
Impact of COVID-19 Forward looking. Impact on market Consequences on market Relevance for Kapsch TrafficCom 1 Economic downturn Governments launch investment programs + Toll systems generate income for government 2 Shift to individual transport Modal shift from public to individual transport + Incre
Slide 21: Kapsch TrafficCom share
Kapsch TrafficCom share. Shareholder structure Institutional investors by region Research coverage* Erste Group Under review Under review ODDO BHF/FMR Hold EUR 18.00 Raiffeisen Centrobank Hold EUR 12.50 Source: Shareholder survey from April 2021, * As per May 1, 2021. Select events Basic information
Slide 22: Share price development (last 12 months)
Share price development (last 12 months). Kapsch TrafficCom and ATX Prime. 180 Profit warning: Impairments and adjusted project margins 160 165 Profit warning: Revised outlook, no dividend for 2020/21 140 120 100 88 2019/20 H1 80 Profit warning: Q1 below Preliminary results 2020/21 expectations, no
Slide 23: 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 24: Appendix
Kapsch > challenging limits Appendix.
Slide 25: 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 26: 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 27: Overview of Kapsch TrafficCom's offices
Overview of Kapsch TrafficCom‘s offices. As of March 31, 2021. Sweden (1) Germany (2) Russia (1) Poland (3) Canada (1) UK (1) Lithuania (1) Ireland (1) Belarus (2) Czechia (1) Austria (6) France (1) Bulgaria (1) Italy (1) USA (26) Spain (21) Saudi Arabia (2) Mexico (16) UAE (1) Puerto Rico (1) Panam
Slide 28: 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 29: 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.