pressemitteilung der ivu traffic technologies ag · 1. key figures 2. letter to our shareholders 3....
TRANSCRIPT
IVU Traffic Technologies AG Report on the First Quarter of Fiscal 2003
Berlin, 16 May 2003
1. Key Figures
2. Letter to Our Shareholders
3. Management Report
4. IVU Stock
5. Quarterly Financial Statement
6. Financial Calender
1. Key figures
1st Quarter 2003
1st Quarter 2002
Change
Revenue
€ 4.3 million
€ 4.5 million
-4.4 %
Gross result
€ 5.7 million
€ 4.9 million
+16.3 %
Personnel expenses
€ 5.2 million
€ 5.8 million
-10.3 %
EBIT
€ -2.4 million
€ -4.1 million
+41.5 %
Consolidated net income
€ -2.5 million
€ -4.2 million
+40.5 %
Cash Flow
€ -1.2 million
€ -3.3 million
+ 63.6 %
Orders on hand
€ 16.3 million
€ 21.3 million
- 23.5 %
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IVU Traffic Technologies AG 2. Letter to Our Shareholders
Dear shareholders, dear friends of IVU,
The first quarter of any fiscal year has always been the weakest period for IVU. We generate
roughly half our revenues in the fourth quarter, when our public-sector customers – public
transport companies – use up their budgets.
Nevertheless, concerning revenues 2003 got off to a worse start than did 2002 - and it was
even worse than expected. Although both EBIT and our consolidated net income each rose
more than 40 percent over the previous year's figures in the period from January to March,
the first quarter nevertheless saw revenues drop 4.4 percent to € 4.3 million. The main rea-
son for this is cautious capital spending on the part of our customers in the Transport and In-
formation Logistics segments.
It is clear that we will probably not be able to meet the sales targets forecast in our 2002 An-
nual Report. Instead, we expect sales revenues for the entire 2003 to remain at roughly the
same level as the previous year. As a way to further improve IVU's earnings in spite of this
setback and pay off the existing debts of TTi Systems AG starting next year, we will unfortu-
nately have to lay off around forty employees.
This is a painful step, but one that we must take responsibly. In light of foreseeable sales
shortfalls in 2003, immediate cost cutting measures are absolutely necessary in order to se-
cure IVU's future. We strongly believe that this measure with help improve the company's
health, making it profitable and successful.
On the whole, the market situation at the beginning of 2003 varies greatly from one business
segment to the next. While Transport and Information Logistics are suffering the effects of
cautious capital spending on the part of their customers, our largest business segment, Pub-
lic Transport, is well on its way to success. Accounting for over three quarters of our reve-
nues, this segment once again managed to generate a number of highly attractive new or-
ders in the first three months of the year.
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IVU Traffic Technologies AG Combined with the gross result, which rose significantly over last year's figures and – to an
even greater extent than sales revenues – represents the company's actual value-added, this
development has put us in a generally optimistic mood.
Sincerely,
The Management Board
Prof. Dr. Ernst Denert
Dr. Olaf Schemczyk
3. Management Report 3.1. Business Segments 3.1.1. Public Transport
Public Transport, our core business segment, has a uniquely broad and harmonized range of
software and hardware products for public transport companies, one which is gaining in
popularity both in Germany and abroad. During the first quarter, we generated a number of
very attractive orders, especially in the international market. The most important single order
for this period is emblematic of our systems' strengths: for the first time, our MICROBUS
planning and scheduling system was able to overcome opposition from its strongest interna-
tional competitors. As the general contractor, Siemens AG commissioned IVU to install
MICROBUS in its new subway line in Bangkok. Measuring 20 kilometers long, the line con-
nects 18 stations in downtown Bangkok, a city that is home to eight million people. The IVU
system will be used to plan train operation and driver deployment. The main features that
convinced Siemens AG to chose MICROBUS were the system's flexibility and adaptability to
other systems. This will be the third cooperation project between Siemens and IVU in Asia.
The "Sky Train" elevated railway in Bangkok and the airport feeder line in Kuala Lumpur, Ma-
laysia, both run on the basis of IVU's most successful product.
Our Ticketing unit did especially brisk business in the first quarter, benefiting enormously
from the trend toward placing railway lines into private hands. Two of these new railway op-
erators went right ahead and invested in IVU ticketing products. Rhenus Keolis, a subsidiary
of the Rhenus Logistics Group and Keolis S.A., the largest private railway operator in France,
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IVU Traffic Technologies AG ordered additional mobile automatic ticket vending machines and the new i.box pda ticket
vending system. Based on conventional PDA computers, this system enables train conduc-
tors to print tickets and receipts for additional services right at the passenger's seat.
The Connex Group, a leading private railway operator in Germany, also selected IVU's
i.box.pda system for use in its long-distance InterConnex trains. Over the course of a two-
week trial, Connex tested the mobile ticket vending system in the InterConnex trains running
between Gera and Rostock. The company also compared them directly with the mobile ticket
printers used by Deutsche Bahn conductors. "We are happy with the IVU solution in every
respect," says Robert Kohl, sales director at Connex Verkehr GmbH. "We will continue using
the devices." Although the PDAs will be used on the Gera-Rostock line, Connex also plans to
equip additional lines with the IVU solution and integrate other software functions, including
the management of "black lists" – containing invalid or blocked credit cards – for cashless
ticket sales along with the management and automatic encryption of fare receipts.
3.1.2. Transport Logistics
This business segment, which develops systems for scheduling, controlling and monitoring
large lorry fleets, launched an innovative new product on the market in early 2003. For the
first time, a lease version of ContourWeb, a complex transport logistics system developed by
IVU, is available as an online subscription service. Known as ContourX, the new service is
aimed specifically at small and medium-sized companies who want to plan and control their
vehicle fleets or field service personnel without having to spend a lot of money on server sys-
tems, hardware and IT equipment. A cooperative distribution agreement with Blaupunkt, the
leading European supplier of car radios and navigation equipment, also appears to be quite
promising. Blaupunkt's new series of on-board computers for use in lorries and other com-
mercial vehicles has a simple interface to the ContourWeb system from IVU.
The modules for the Combitour platform of our Waste Management Logistics unit are part of
a sophisticated range of products and services for waste management companies. In March,
we were delighted to welcome the representatives of 47 waste management companies to
our fourth Combitour conference in Berlin – the largest group ever. Combitour was generally
described as user-friendly and modern, and our customer support received a great deal of
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IVU Traffic Technologies AG praise. IVU's product helps companies in the waste management business efficiently deal
with the current trend toward concentration in this market. During the first quarter, IVU was
able to attract new customers for Combitour, including the Rethmann waste management
group, Alba subsidiary Havelländische Abfallwirtschaftsgesellschaft mbH and Linz AG, our
first Combitour customer in Austria. Hamburger Stadtreinigung will begin using Combitour in
regular service for its System Waste (household waste and “Gelbe Tonne” recyclables) and
Container segments. The IVU system will organize and monitor over 400,000 weekly collec-
tions in Hamburg.
3.1.3. Information Logistics
Our new easyGovernment unit also attracted public attention in early 2003. IVU coordinated
the Berlin Mobile Citizen Services project, which won the German e-government competition
over the nearly one hundred other contenders. The world's first public office to be brought to
the citizens was awarded a prize at the CeBIT trade show in Hannover, further proof of IVU's
outstanding expertise in the forward-looking field of e-government. The Mobile Citizen Ser-
vices project, which is the only one of its kind anywhere in the world, is aimed at combining
all administrative tasks of many different Berlin agencies into a standard platform and making
them available not only online in the public offices, but also through mobile communications.
To accomplish this, agents are equipped with mobile terminals that they can use to adminis-
ter public services locally wherever the people need them. The mobile citizen services will
give the public access to housing subsidies, family and youth matters, alien legal affairs, reg-
istration procedures, identification matters and lost property. In developing the software, IVU
is able to build upon earlier work that it has performed for public agencies in Berlin over the
pas two years. Trial operation of the mobile citizen services will begin in 2004 under real-life
conditions in Berlin's Spandau and Pankow districts.
This is the second success that IVU Traffic Technologies AG has to report in the area of e-
government solutions. In February, the Brandenburg Ministry of the Interior commissioned
IVU to implement an e-government strategy for the entire state. Otto Schily, the German
Federal Minister of the Interior also got to know IVU when he visited the company's booth at
CeBIT and learned about the system used to calculate the results of the 2002 federal elec-
tions, which has generated enormous interest from the German states as well as abroad. It is
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IVU Traffic Technologies AG the intention of the Federal Election Commissioner for the IVU system to be further devel-
oped for the 2004 European Elections. In addition, the system can be customized to nearly
any election procedure without problems.
3.2. Foreign companies
Our branch office in the U.K. has a new general manager, Alistair Quigley, who is an IT ex-
pert and has a thorough understanding of the public transport market. For five years, he
worked for National Express, one of the largest British public transport companies. The pub-
lic transport market in the U.K., which anticipates heavy investment activity over the next few
years, offers IVU excellent opportunities, since our existing customers there will provide us
with outstanding references, and we already have a solid footing in this country.
3.3. Financial position
During the first three months of the year, IVU's revenues declined 4.4 percent over the previ-
ous year, from € 4.5 million to just € 4.3 million. This is roughly 12 percent of the revenues
now anticipated for the whole year, relative to the previous year's level, and represents a
typical sales trend based on the orders placed by IVU's customers. The sales slump is the
result of cautious capital spending by the private customers of our Transport and Information
Logistics divisions.
The gross result rose 16.3 percent to € 5.7 million. The gross result reflects the company's
actual value-added to a greater extent than do revenues. As a result of the 10.3 percent drop
in personnel expenses and further cutbacks in other operating expenses, earnings before in-
terest and taxes (EBIT) rose 41.5 percent over the same period in the previous year, ending
up at € -2.4 million. The € -2.5 million consolidated net income was 40.5 percent better than
the figure for the first quarter of 2002.
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IVU Traffic Technologies AG 3.4. Outlook for 2003
After the first quarter, we expect revenues for the current fiscal year to remain at roughly the
same level as last year. Due to the personnel measures introduced, we are nevertheless
confident that both EBIT and net income results will rise in 2003. These personnel measures
will have a positive effect on results, saving roughly € 0.3 million in the current year and two
million in 2004. Orders as of 31 March 2003 were worth € 16.3 million.
3.5. Personnel development
The weak sales development in the Transport and Information Logistics segments antici-
pated after the first three months of the current fiscal year will force us to make deep cuts in
our personnel capacity. For operating reasons, we will unfortunately have to lay off around
forty people, thereby reducing IVU's workforce to 285 full-time employees. A redundancy
scheme was worked out in jointly in intensive and highly constructive discussions with the
works council.
Human Resources 2003 2002 Change No. of employees as of 31st March 372 408 -9% Personnel capacity 1st Jan – 31st. March 326 364 -10% 4. IVU Stock
We are not yet happy with the price of IVU's stock, which has been valued at around 80
cents since the beginning of the year, with some upward and downward movement. How-
ever, in early May IVU's stock rose over twenty percent to just under 1 €. Since the publica-
tion of our 2002 financial statements, we have identified new interest in our stock, expressed
by a significantly higher trade volume. In general, investors are currently focusing even more
on large companies. Nevertheless, we think that IVU's stock is undervalued in light of the
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IVU Traffic Technologies AG turnaround in earnings we have achieved as well as our position in the public transport mar-
ket and our innovations. We remain optimistic that our successful efforts to consolidate IVU
will be recognized by the capital market over the medium term.
5. Quarterly Financial Statement
The consolidated financial statement was drawn up according to the stipulations of the Inter-
national Accounting Standards (IAS) of the International Accounting Standards Committee
(IASC) in effect on the closing date and taking into account the interpretations of the Stand-
ing Interpretations Committee (SIC). The stipulations of the German Commercial Code
(HGB) and the IAS diverge on certain important details.
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IVU Traffic Technologies AG 5.1. Consolidated Balance Sheet in Accordance with IAS as of March 31st 2003 Assets March 31st 2003 March 31st 2002 T€ T€ 1. Short-term Assets 1.1. Liquid funds 994 789 1.2. Trade receivables 8,607 11,432 1.3. Stocks 1.3.1. Unfinished goods 5,053 3,078 1.3.2. Finished Goods 689 835 1.3.3. Down payments made 431 696 1.4. Prepayments and accrued income and other short-term assets 4,387 7,034 Short-term assets 20,161 23,864 2. Long-term assets 2.1. Tangible assets 2.1.1. Machinery and technical equipment 851 856 2.1.2. Other equipment, factory and office equipment 1,819 1,921
2.1.3. Construction in progress and advance payments on
tangible assets 0 4 2.2. Intangible assets
2.2.1. Licences, commercial copyrights and similar rights
and values and licences to such rights and values 2,233 2,405 2.2.2. Original intangible assets 5,732 6,063 2.3. Financial assets 2.3.1. Guild shares 26 26 2.4. Goodwill 15,783 16,013 2.5. Latent taxes 3,063 3,063 Long-term assets 29,507 30,351
Assets 49,668 54,215
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IVU Traffic Technologies AG
Liabilities March 31st 2003 March 31st 2002 T€ T€ 1. Short-term liabilities 1.1. Short-term loans and short-term portion on long-term loans 1,853 3,367 1.2. Trade payables 966 2,214 1.3. Down payments retained 3,135 1,908 1.4. Provisions 1,788 1,830 1.5. Sales items of accrual and deferral 1,015 66 1.6. Short-term payables 4,564 6,069 Short-term liabilities 13,321 15,454 2. Long-term liabilities 2.1. Long-term loans 6,150 6,150 2.2. Latent taxes 3,063 3,063 2.3. Pension reserves 1,587 1,569 2.4. Other 370 725 Long-term liabilities 11,170 11,507 3. Minority interests 217 277 4. Equity 4.1. Subscribed capital 16,169 15,629 4.2. Capital reserves 46,456 46,456 4.3. Reserves 45 45 4.4. Consolidated balance sheet profit / loss -38,035 -35,499 Equitiy 24,635 26,631 5. Off-line item investment grants and investment subsidies 325 346 Liabilities 49,668 54,215
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IVU Traffic Technologies AG 5.2. Consolidated Profit and Loss Account in Accordance with IAS as of March 31st 2003
1. Quarter 2003
1. Quarter 2002
Jan 31st 2003 Jan 31st 2002 March 31st 2003 March 31st 2002
T€ T€
1.Earnings 4,274 4,5192.Increase in volume of finished and unfinished goods 1,975 1603.Other activated services on own account 400 4114.Other operating earnings 777 1,2875.Costs of material -1,705 -1,445
Gross profit 5,721 4,9326.Personnel expenses -5,226 -5,8487.Write-offs on intangible assets of the fixed
and tangible fixed assets -445 -5308.Write offs on original intangible assets -732 -4949.Write-offs on goodwill -230 -228
10.Other operating expenses -1,523 -1,971
Operating result (EBIT) -2,435 -4,13911.Earnings from securities and loans from the financial assets 0 1512.Other interest and other income 24 27113.Write-offs on financial assets and securities
from the current assets 0 814.Interest and similar expenses -183 -397
15.Result of operating activities -2,594 -4,24216.Taxes on income and earnings 0 5617.Other taxes -2 -3
18.Group net annual result before minority interests -2,596 -4,189
19.Portion of other partners on the net profit 60 -58
20.Group net annual result after minority interests -2,536 -4,247
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IVU Traffic Technologies AG
5.3. Consolidated Cash Flow Statement in Accordance with IAS as of March 31st 2003 1. Quarter 2003
1. Quarter 2002
Jan 31st 2003 March 31st 2003
T€
Jan 31st 2002March 31st 2002
T€
1.Business activity Consolidated periodical result before income tax and ex-traordinary effects
-2,594 -4,242
Write-offs on fixed assets 1,407 1,260Results from interests 159 126Net change of provisions -24 -358Earnings from special items with accrual character -21 -17Profit from sale of fixed assets 5 61 Subtotal
-1,068 -3,170
Change of items of current assets and the short-term capital
Stocks -1,564 1,876Receivables and other assets 5,472 1,661Securities 0 2,209Short-term liabilities -2,091 -2,830 Cash flow in / out from normal business activities before income tax
749 -264
Interests paid -183 -397Income taxes received / paid -2 53 Cash flow in / out from business activities
564 -608
2. Investment activities
Earnings from disposal of holdings reduced by the holding’s liquid funds 0 447Investment in intangible assets -403 -727Investments in tangible assets -165 -1,357Disposal of assets from final consolidation 0 402Interests earned 24 271 Cash flow in / out from investment activities
-544 -964
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IVU Traffic Technologies AG 3. Financial activities Deposits from capital increase 540 0Increase / decrease of middle and long-term liabilities -355 -48 Cash flow in / out from financial acitivites
185 -48
Change of liquid funds from final consolidation 0 202 Change of liquid funds
205 -1,418
Liquid funds at beginning of period
789 2,983
Liquid funds at end of period
994 1,565
5.4. Group Equity Change Account in Accordance with IAS for Financial Year 2003 as of march 31st 2003
Subscribedcapital
Capital re-serves
Other re-serves
Balance sheet loss
Total
T€ T€ T€ T€ T€ As of Jan 31st 2003 15,629 46,456 45 -35,499 26,631
Capital stock increase incorpo-rated as of Nov 9th 2003 540 0 0 0 540 Consolidated loss 1st quarter 0 0 0 -2,536 -2,536 As of March 31th 2003 16,169 46,456 45 -38,035 24,635
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IVU Traffic Technologies AG 5.5. Sales
2003million €
2002million €
Cange
Business Segment Public Transport 3.4 2.9 17,2 %Logistics 0.9 1.6 -43,8 %Countries Germany 3.6 3.0 + 20.0 %Others 0.6 1.5 - 60.0 % total 4.3 4.5 -4.4 %
6. Financial Calendar 2003
Thursday, 5 June 2003 Shareholders' Meeting
Friday, 15 August 2003 Semi-Annual Report
Friday, 14 November 2003 3rd Quarter Report
For more information, contact: Gerd Henghuber
Head of Corporate Communications
IVU Traffic Technologies AG
Bundesallee 88
12161 Berlin
Tel. +49.30.85906-800
Fax +49.30.85906-111
eMail [email protected]
Peter Kolz
Head of Finance
IVU Traffic Technologies AG
Bundesallee 88
12161 Berlin
Tel. +49.30.85906-140
Fax +49.30.85906-111
email [email protected]
Internet: www.ivu.de
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