EANS-News: Kapsch TrafficCom presents growth and future strategy in fiscal year 2011/12

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annual result

Wien (euro adhoc) - * Strong growth continues, revenues up 42% in
reporting period * Earnings below previous year due to project delays
* Positive outlook on existing and new projects * Strategy 2016
increasingly focuses on additional ITS solutions beyond toll
collection

2011/12:
1April 2011-31 March 2012 2011/12 +/- % 2010/11

Revenues (in million EUR) 549.9 42% 388.6
EBIT (in million EUR) 42.2 -14% 48.9
Profit for the period (in million EUR) 27.5 -3% 28.4
Earnings per share (in EUR) (1) 1.62 -11% 1.81
Dividend per share (in EUR) 0.90(2) -10% 1.00

(1) Earnings per share 2011/12 relate to average weighted number of 12.74
million shares

(2) Proposal of the executive board subject to approval of
shareholders' meeting on 24 August 2012

Vienna, 17 July 2012 - Kapsch TrafficCom AG (ISIN AT000KAPSCH9),
listed on the Vienna Stock Exchange, can look back at five successful
years since its initial public offering in June 2007. In the past
fiscal year 2011/12, which ended on 31 March 2012, revenues increased
again by 42% compared to the previous year. This growth reflects, in
particular, the progress of the two major projects in Poland and
South Africa but also the successful expansion of business in the
U.S.A. The volume of delivered on-board units significantly rose from
5.2 million units in the previous year to 11.2 million units.
However, the fiscal year proved challenging as well.

After an implementation period of only eight months, Kapsch
TrafficCom started the operation of its major project in Poland at
the beginning of the fiscal year, the nationwide electronic toll
collection system viaTOLL for all vehicles above 3.5 tons, and
completed it in stages up to the end of December. The system
acceptance finally took place on 21 February 2012. Kapsch TrafficCom
covered the ongoing expenses until this time, despite significantly
reduced revenues from the operation of the system due to the delayed
system acceptance. In the first quarter of 2012/13, for the first
time, Kapsch TrafficCom will be able to generate revenues from
operating the system according to the original contract. The net
payment of EUR 103.3 million for the last milestone of the system
implementation received in April 2012 will also be reflected strongly
in the free cash flow.

In South Africa, the start of the electronic toll collection system
for multi-lane free-flow traffic in the province of Gauteng has been
delayed. At the end of April 2012 - just two days before the
scheduled commissioning deadline - the start of the fully completed
system in South Africa was suspended indefinitely by a court order
due to a lawsuit. On 23 May 2012, the government elected to appeal
the court decision.

Although progress in both major projects impacted positively on
revenues of the Kapsch TrafficCom Group, the delays clearly weighed
down on earnings in the second half of the reporting period.

In fiscal year 2011/12, Kapsch TrafficCom won new projects and
markets, which shall support the continuing growth of the group: in
July 2011, the investment into expanding the U.S. business was
justified with a ten-year contract from the E-ZPass Group, operator
of the world's largest interoperable toll collection system. In
Russia, the joint venture, in which Kapsch TrafficCom holds a 33%
stake, won a contract to maintain and operate an intelligent
transportation system (ITS), which encompasses a toll collection
system as well as traffic information and management systems. The
implementation and operation projects won in Belarus and Portugal
also contribute to a positive outlook, as does the agreement with the
French toll service provider Axxes in the global navigation satellite
system (GNSS) technology as well as the basic understanding reached
with Asfinag Maut Service GmbH on extending the operation and
maintenance contract for the nationwide electronic truck toll
collection system in Austria until the end of 2018.

Strategy 2016 Kapsch TrafficCom is striving to achieve further growth
in the future. In the reporting period, the strategy for the next
five years was defined and substantiated by strategic paths.
Accordingly, Kapsch TrafficCom plans to grow further in its core
business of electronic toll collection and to expand both regionally
and by moving into new business fields. Expanding the business into
select ITS applications beyond toll collection is viewed as
preparation for the increasing convergence of the ITS market that
Kapsch TrafficCom expects in the next five to ten years in view of
the future topic of "connected vehicles in cooperative systems".
Parallel to this, Kapsch TrafficCom will adapt the company structure
in line with strategic requirements to ensure maximum efficiency and
global synergies.

Revenues and earnings In fiscal year 2011/12, the Kapsch TrafficCom
Group recorded the highest revenue since its foundation, continuing
its growth from recent years. Revenues of EUR 388.6 million in the
previous fiscal year 2010/11 were improved by 41.5% to reach EUR
549.9 million in fiscal year 2011/12. The operating result (EBIT)
declined by 13.6% to EUR 42.2 million in fiscal year 2011/12,
compared to EUR 48.9 million in the previous year. The EBIT margin
was 7.7% in the reporting period, thereby missing the target of a
two-digit EBIT margin. System implementation delays in Poland and
South Africa made for disappointing developments with a negative EBIT
of EUR -2.7 million in the third quarter, followed by weak but
positive developments in the fourth quarter.

Revenues in the segment Road Solution Projects (RSP) reached EUR
229.9 million in the 2011/12 fiscal year, up by 44.7% compared with
the previous year (EUR 158.9 million). The most important factor in
this improvement was the contribution made by the project in Poland.

In the segment Services, System Extensions, Components Sales (SEC),
revenues increased by 37.9% from EUR 223.3 million in the previous
year to EUR 308.1 million. The 22.8% decrease in EBIT from EUR 48.3
million in the previous year to EUR 37.3 million in 2011/12 largely
reflects the delays in the two major projects in Poland and South
Africa. However, the EBIT margin in the segment SEC was still 12.1%,
though well below the 21.6% figure from the previous year.

Profit before income taxes reached EUR 36.3 million, down by EUR 4.9
million compared with the previous year. Lower income taxes and
higher financial income compensated for the lower operating result
(EBIT) and led to an almost unchanged profit for the period of EUR
27.5 million (2010/11: EUR 28.4 million) and to earnings per share of
EUR 1.62 (2010/11: EUR 1.81). The executive board will make a
proposal to the shareholders' meeting on 24 August 2012 calling for
the approval of a dividend of EUR 0.90 per share (2010/11: EUR 1.00
per share) for the fiscal year 2011/12. This proposal reflects a
payout ratio of approximately 57% in relation to the profit for the
period attributable to equity holders of the company (2010/11:
approximately 55%).

Financial position and cashflows Total assets increased in the
reporting period, largely as a consequence of the augmented project
business, the capital increase at the end of July 2011 and the total
comprehensive income for the period. The equity ratio of the Kapsch
TrafficCom Group thus increased to 45.9% as of 31 March 2012 (31
March 2011: 42.5%). The high project-related net working capital was
instrumental in the free cash flow declining to EUR -50.9 million
after EUR -19.9 million in the previous year. However, the payment
received from the project in Poland in April 2012 - after the
reporting date - will significantly reduce net working capital and
improve the free cash flow in the first quarter of 2012/13.

Outlook and targets Despite a macroeconomic environment that remains
challenging, Kapsch TrafficCom takes an optimistic view of its
markets for fiscal year 2012/13 and beyond. The company is convinced
that there are many interesting opportunities worldwide for the
delivery and operation of toll collection systems and that it is well
prepared for the increasing convergence of the ITS market. Fiscal
year 2012/13 will be characterized in particular by further
developments associated with the date for the start of the electronic
toll system for multi-lane free-flow traffic in the South African
province of Gauteng as well as the expected tenders for nationwide
electronic toll collection systems in Hungary, Slovenia and Denmark.
The company will also focus during fiscal year 2012/13 on
implementing the strategy up to 2016, as defined in fiscal year
2011/12, and on establishing the corresponding corporate structure.

The Annual Report and the Annual Financial Statements on fiscal year
2011/12 can be downloaded from http://www.kapsch.net/en/ktc/investor_
relations/financial_information/Pages/default.aspx

Kapsch TrafficCom is a provider of high-performance intelligent
transportation systems (ITS) in the application fields of toll
collection, urban access management and traffic safety and security.
Kapsch TrafficCom covers the entire value creation chain of its
customers as a one-stop shop by providing products and components as
well as subsystems as open market products, by integrating them into
turnkey systems or by developing end-to-end solutions, including
services for the technical and commercial operations of systems.
Within its current core business of electronic toll collection (ETC),
Kapsch TrafficCom designs, builds and operates ETC systems, in
particular for multi-lane free-flow traffic. With 280 references in
41 countries on all 5 continents and with almost 70 million on-board
units delivered and about 18,000 lanes equipped, Kapsch TrafficCom
has positioned itself among the internationally recognized suppliers
of electronic toll collection worldwide. Kapsch TrafficCom is
headquartered in Vienna, Austria, and has subsidiaries and
representative offices in 30 countries.

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

end of announcement euro adhoc
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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
ISIN: AT000KAPSCH9
indexes: Prime Market
stockmarkets: official market: Wien
language: English