Kapsch Group Annual Report 2017/18 Kapsch Group
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EN Kapsch Group The future is now. Annual Report 2017/18. Overview. Fiscal Year 2017/18. Highlights of the Fiscal Year from April 1, 2017 to March 31, 2018. Kapsch Group. Commercial success. The revenue record set in the prior year was broken again, reaching a new high of EUR 1,145 million in the 2017/18 fiscal year. Innovation power. Kapsch Group increased investments in research and development by 11% from EUR 125.0 million to EUR 138.8 million. Kapsch TrafficCom. Major deals won. In Bulgaria, Kapsch TrafficCom secured the contract for constructing, technically equip- ping and technically supporting the nationwide tolling system for trucks over 3.5 metric tons as well as for launching the electronic toll sticker for cars. A joint venture between Kapsch TrafficCom and the Zambian company Lamise Trading Limited received a nationwide concession from the Zambian government to improve road safety and traffic management. tolltickets certified as an EETS provider. The European Electronic Toll Service (EETS) supplements the national electronic tolling systems of the member states and simplifies cross-border mobility for road users due to the fact that a vehicle operating internationally no longer needs to be equipped with a separate on-board unit (OBU) for every country. Kapsch PublicTransportCom. Mobile ticketing. In 2017/18, Kapsch PublicTransportCom fully concentrated on implementing its numer- ous customer projects in Belgium, the Netherlands, Romania, the USA, and Africa. The mobile ticketing solution for the Metropolitan Atlanta Rapid Transit Authority (MARTA) is worth highlighting. It enables passengers to order, purchase, and validate their tickets via a mobile app or on a mobile website. This provides users with access to 38 railway stations, 565 bus services and 210 transit buses in the Greater Atlanta metropolitan area. The MARTA project is carried out in cooperation with the sister companies Kapsch TrafficCom and Kapsch CarrierCom. Kapsch CarrierCom. Railway technologies. The successful transition to a future mobile communications standard represents a major challenge for railway operators in the coming years. In June 2017, Kapsch CarrierCom became a member of the Association of the European Rail Industry (UNIFE), which aims to ensure uniform standards for railway networks throughout Europe and safeguard the interoperability of railway systems in order to facilitate the creation of a standardized European railway system. Kapsch has implemented GSM-R networks for leading railway operators around the world such as SNCF (France) and Deutsche Bahn (Germany), and continues to be successful. For example, contracts have been concluded with the national railway operators in the Czech Republic, Ireland, and India. Telecommunication solutions. Kapsch CarrierCom implemented a nationwide “Software Enabled Network Densification™” solution for Hrvatski Telekom in Croatia and therefore forged ahead with its success story with this technology. As video traffic continues to increase globally, operators can only keep up with the aid of innovative and cost-effective solutions. The solution offered by Kapsch enables existing capacity to be expanded and optimizes future investments in mobile communication base stations. Kapsch BusinessCom. Joint-Venture for IoT digitalization solutions and services. In collaboration with the ORF subsidiary ORS comm and Microtronics, Kapsch BusinessCom formed the joint venture SENS, which is focused on IoT digitalization solutions and services on the basis of the LoRaWAN™ radio standard. SENS stands for Sensor Network Services and offers services, applications, and solutions for IoT (Internet of Things) digitalization projects and IoT organizations in Austria. Protection against Internet crime. Since 2017, Kapsch BusinessCom has had its own cyber defense center (CDC) for the detection, analysis, and containment of cyber attacks. Besides prevention, the CDC also focusses on the identification and isolation of cyber attacks. In case of an emergency, customers are consequently guaranteed not only short response times but also the establishment of a close-meshed security network. 2 | Kapsch Group Annual Report 2017/18 Kapsch Group. Annual Report 2017/18. This annual report was created with the greatest possible care and all data have been checked conscientiously. Nevertheless, the possibility of layout and printing errors cannot be completely excluded. Slight differences in calculations may arise due to the rounding of individual items and percentages. In order to signalize that general references in this annual report to individuals apply equally to women and men, male and female gender forms have been used in part. For reasons of legibility, the male gender form has on occasion been used although the reference is always to both men and women. Disclaimer Certain statements contained in this annual report constitute “forward-looking statements”. These statements, which contain the words “believe”, “intend”, “expect” and words of similar meaning, reflect Management’s beliefs and expectations and are subject to risks and uncertainties that may cause actual results to differ materially. As a result, readers are cautioned not to place undue reliance on such forward- looking statements. KAPSCH-Group Beteiligungs GmbH disclaims any obligation to publicly announce the result of any revisions to the forward-looking statements made herein, except where it would be required to do so under applicable law. Imprint Media owner and publisher: KAPSCH-Group Beteiligungs GmbH. Kapsch Group Annual Report 2017/18 | 3 Contents. Selected Key Financial Data 8 Letter from the Management 10 The Future is now 13 Company Milestones 6 Corporate Profile 16 Global Presence 18 Our Identity 20 Our Values 21 Our Principles and Objectives 24 Research and Development 26 Sustainable Management 30 Portfolio 34 Kapsch TrafficCom Business Segments and Strategy 38 Kapsch PublicTransportCom Business Segments and Strategy 42 Kapsch CarrierCom Business Segments and Strategy 43 Kapsch BusinessCom Business Segments and Strategy 46 Executive Board and Supervisory Board Executive Board and Supervisory Board 50 Kapsch Group Worldwide Kapsch Group Worldwide 54 4 | Kapsch Group Annual Report 2017/18 Management Report Economic Climate 56 Development of Kapsch Group 62 Business Segments 69 Miscellaneous Company Disclosures 84 Outlook 94 Consolidated Financial Statements Consolidated Statement of Comprehensive Income 96 Consolidated Balance Sheet 97 Consolidated Statement of Changes in Equity 98 Consolidated Cash Flow Statement 100 Notes to the Consolidated Financial Statements 101 Auditor’s Report 185 Glossary 188 Addresses 189 Social Media 189 Kapsch Group Annual Report 2017/18 | 5 Milestones. Kapsch. A company history. Ever since its founding in 1892, Kapsch has been dedicated to its role as an innovator and technological pioneer. From the production of the first portable radios and the spreading of telephone technology in Austria up to ground-breaking toll projects around the world: when it comes to technological milestones in commu- nication and mobility, Kapsch has always been a major step ahead. At the same time, we remain committed to employing technological developments efficiently and responsibly in the service of our customers. We recognize and appreciate technology as an instrument for exploiting opportunities and improving numerous aspects of people’s lives. 1892 Johann Kapsch founds a 1965 precision workshop in Vienna producing Morse telegraph The company develops devices and telephones. 1930 a new low-noise dialing disk for telephones First television demonstration with 1955 that remains in use up a complete transmission and reception to the 1980s. system in Austria – a revolutionary Kapsch launches the event at the Kapsch pavilion on the first black and white Vienna Trade Fair. television on the Austrian market, the model TFS-56. 1948 1918 Equipment of telecom- munications offices with Kapsch begins manufacturing switch system 48 – the first capacitors and dry batteries. standardized, nation wide, direct-dial system. In 1950, the first automatic exchange using the system comes into service in Eferding. 1924 1958 Entry into radio manufacturing. The Capri, the first fully transistor- 1969 first Kapsch radio receiver Pionier L 1946 ized portable radio is launched. with three-tube speaker techno- Development logy. Soon afterwards, Kapsch In cooperation with Austrian of an OHS becomes a co-founder of RAVAG, Post, Kapsch plays a key role system for the Austrian company Radio Ver- in the reconstruction of the semi- electronic kehrs AG, thereby heralding tele phone network after World telephone ex- the age of radio in Austria. War II. change system operation. 1967 Presentation of the first Kapsch color television: the Chromomatic. 6 | Kapsch Group Annual Report 2017/18 1970 2016 Installation of train radio for Kapsch installs Europe’s Austrian Railways. 2003 largest integrated advanced traffic Kapsch implements the management system (ATMS) in world’s largest comprehen- England and in the Netherlands. sive electronic truck tolling system in Austria. Kapsch bolsters its global market position through the acquisition of the transportation division of 1991 Schneider Electric. First telephone call in Austria using the new digital mobile network GSM. 1972 2017 Kapsch develops batteries with a non- Highest revenues in leak guarantee. 2010 the company’s history: EUR 1,111.2 million in the Kapsch takes over the GSM/ 2016/17 fiscal year. GSM-R division of Nortel,