Kapsch TrafficCom AG / Kapsch reports successful system starts - revenues and earnings for the first three quarters improved

Published: February 26, 2014; 07:30 · (FriedlNews)

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quarterly report/company

Wien (euro adhoc) - Kapsch reports successful system starts - revenues and
earnings for the first three quarters improved

* Project progress brought about another revenue increase of 14 %
* Milestone reached in South Africa: Toll collection system in operation since
* EBIT weighed down heavily in third quarter, leaving the period earnings still
* New operation projects will in future have a positive impact on
revenues and earnings

|2013/14 Q1-Q3: 1 | 2013/14 Q1-Q3 | +/- % | 2012/13 Q1-Q3 |
|April-31 December | | | |
|Revenues (in million| 355.0 | +14 % | 310.9 |
|EBIT (in million | 8.6 | - | -8.7 |
|Profit for the | | +78 % | -5.7 |
|period (in million | -1.3 | | |
|Earnings per share | -0.40 | +63 % | -1.09 |

Vienna, 26 February 2014 -Kapsch TrafficCom AG (ISIN AT000KAPSCH9), listed in
the Prime Market of the Vienna Stock Exchange, transitioned several
implementation projects into operation - including a few major ones - and also
expanded a number of existing projects. This resulted in a satisfactory increase
in revenue. The EBIT has now been positive again for four quarters, although it
was weighed down heavily in the third quarter of the current fiscal year.

Kapsch TrafficCom has achieved a milestone in South Africa: At the start of
December, the toll collection system in the province of Gauteng went into
operation after a wait of over one-and-a-half years. Roughly 1 million on-board
units have already been registered by users, and more should follow. In the
future, this project will have a positive impact on the revenues and earnings.

In Belarus, the first expansion stage of the nationwide electronic toll
collection system went into operation already in the second quarter; a portion
of the second stage was completed in the third quarter and went into operation
at the start of January. This operation project will also be reflected in the
earnings in future.

Furthermore, the toll collection system in Sydney, Australia, and a portion of
the toll project in Texas - the most complex project of its kind existing in the
U.S.A. - also went live in December. The nationwide toll collection system in
Poland was expanded further during the reporting period.

In Russia, Kapsch TrafficCom obtained four new orders, and a bid is currently
being prepared for the invitation to tender for the nationwide toll collection
system for trucks exceeding 12 tons total weight.

Subhead: Revenues and earnings
The revenues in the first three quarters increased by 14.2 % in connection with
the project progress, from EUR 310.9 million in the first three quarters of the
previous year to EUR 355.0 million in the reporting period. The EBIT, which was
negative at EUR -8.7 million in the previous year, is again firmly positive,
although it still falls below the expectations of Kapsch TrafficCom at EUR 8.6
million. "Our new business has not yet expanded to the expected volume. As a
result, we are still bearing the entire costs of our reorganization in 2012 with
relatively low revenues. The third quarter also brought with it another setback.
In South Africa, we agreed on cost reimbursement with our customer for
maintenance of the toll system's operational readiness. Unresolved issues in
this regard noticeably weighed down the third quarter earnings," explains Georg
Kapsch, CEO of Kapsch TrafficCom AG. The earnings for the first three quarters
of 2013/14 remain negative at EUR -1.3 million.

In recent months, Kapsch TrafficCom has already achieved significant cost
reductions by adapting its organizational structure to the slower market growth.
In parallel, the structures required for existing and potential major projects
had to be retained or expanded.

The segment RSP (Road Solution Projects) increased its revenues by 40.9 % thanks
to the achieved project progress, from EUR 64.0 million in the previous fiscal
year to EUR 90.2 million. The EBIT of EUR -26.0 million nevertheless shows that
the costs assigned to this segment are still not being covered. The revenues of
the segment SEC (Services, System Extensions, Components Sales) increased by
6.9 %, from EUR 234.3 million in the previous year to EUR 250.4 million, while
the EBIT in this segment rose by 61.3 % from EUR 21.0 million in the same period
of the previous year to EUR 33.9 million. Primarily the toll collection project
in Poland contributed to this increase, while the operation projects in Belarus
and South Africa will only be reflected in the results in future quarters. The
EBIT was weighed down in the third quarter by the unresolved issues in South

Subhead: Financial position and cash flows
The current status of the implementation projects consistently influences the
balance sheet of the Kapsch TrafficCom Group, and the individual stages of the
Belarus toll project were also prefinanced for three years each. In connection
with this, the non-current receivables as well as the financial liabilities
increased during the reporting period. The free cash flow was negative in the
first three quarters of the 2013/14 fiscal year at EUR -31.7 million. The net
debt increased to EUR 86.9 million as on 31 December 2013.

Subhead: Outlook
Kapsch TrafficCom takes a positive view of the full 2013/14 fiscal year, even if
the earnings outlook for the current fiscal year has been clouded somewhat by
the developments in the third quarter. In addition to the continuation of the
current implementation projects, Kapsch TrafficCom expects increasing earnings
contributions in the coming months from the systems that have recently gone into
operation. In addition, the company expects to receive in the near future new
orders from a number of regions, especially the U.S.A. In parallel to this,
Kapsch TrafficCom continues to actively contact potentially interested parties
for toll collection systems, an approach that has already proved successful in

Subhead: Notification
The report on the first three quarters of fiscal year 2013/14 can be found at

Kapsch TrafficComis a provider of intelligent transportation systems (ITS) in
the application fields of road user charging, urban access and parking, road
safety enforcement, commercial vehicle operations, electronic vehicle
registration, traffic management and V2X cooperative systems. Kapsch TrafficCom
covers with end-to-end solutions the entire value creation chain of its
customers as a one-stop shop, from components and subsystems to their
integration and operation. The solutions of Kapsch TrafficCom help to provide
funding for infrastructure projects, to increase traffic safety, to optimize
traffic flow, and to reduce environmental pollution from traffic. The core
business is to design, build and operate electronic toll collection systems for
multi-lane free-flow traffic. References in 44 countries on all continents make
Kapsch TrafficCom a recognized supplier of electronic toll collection worldwide.
As part of the Kapsch Group, a family-owned Austrian technology group founded in
1892, Kapsch TrafficCom, headquartered in Vienna, Austria, has subsidiaries and
representative offices in 33 countries, has been listed on the Vienna Stock
Exchange (KTCG) since 2007, and generated with more than 3,000 employees
revenues of EUR 488.9 million in fiscal year 2012/13. For additional
information: www.kapsch.net and www.kapschtraffic.com

Follow us on Twitter: twitter.com/kapschnet.

Investor Contact: Press Contact:
Marcus Handl Katharina Riedl
Investor Relations Officer Spokesperson
Kapsch TrafficCom AG Kapsch AG
Am Europlatz 2, 1120 Vienna, Austria Am Europlatz 2, 1120 Vienna, Austria
Phone: +43 50 811 1120 Phone: +43 50 811 1705
E-mail: ir.kapschtraffic@kapsch.net E-mail: katharina.riedl@kapsch.net

Further inquiry note:
Investor Contact:
Marcus Handl
Investor Relations Officer
Kapsch TrafficCom AG
Am Europlatz 2, 1120 Vienna, Austria
Phone: +43 50 811 1120
E-mail: ir.kapschtraffic@kapsch.net

Press Contact:
Katharina Riedl
Kapsch AG
Am Europlatz 2, 1120 Vienna, Austria
Phone: +43 50 811 1705
E-mail: katharina.riedl@kapsch.net
end of announcement euro adhoc

company: Kapsch TrafficCom AG
Am Europlatz 2
A-1121 Wien
phone: +43 1 50811 1122
FAX: +43 1 50811 99 1122
mail: ir.kapschtraffic@kapsch.net
WWW: www.kapschtraffic.com
sector: Technology
indexes: Prime Market

stockmarkets: official market: Wien
language: English

Digital press kit: http://www.ots.at/pressemappe/411/aom


OTE0006 2014-02-26/07:30

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