EANS-News: Kapsch TrafficCom AG /

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quarterly report

Wien (euro adhoc) - Kapsch TrafficCom enjoys a stronger balance sheet
despite weaker results in the first quarter of 2012/13

- Decline in sales and negative result
- Balance sheet figures improved significantly due to project completion
- Focus remains on large projects in Poland and South Africa
- Growth strategy confirmed by new orders

2012/13 Q1: 1 April - 30 June 2012 2012/13 Q1 2011/12 Q1 2010/11 Q1
Revenues (in million EUR) 106.4 134.7 66.3
EBIT (in million EUR) -5.6 22.2 4.8
Profit for the period (in million EUR) -4.4 13.9 4.5
Profit per share (in EUR) -0.46 0.91 0.22
Free cash flow (in million EUR) 74.6 -9.0 3.2

Vienna, August 24, 2012 - Kapsch TrafficCom AG (ISIN AT000KAPSCH9), listed in
the Prime Market of the Vienna Stock Exchange, experienced a heterogeneous first
quarter in fiscal year 2012/13. While the developments in the two ongoing
projects in Poland and South Africa led to disappointing revenues and results
during the reporting period, the significant improvement in the key balance
sheet figures reconfirmed the financial strength of the Kapsch TrafficCom Group.

The revenues of the Kapsch TrafficCom Group amounted to EUR 106.4 million, or
21.1 % below the value of the same period in the previous year (2011/12 Q1: EUR
134.7 million). The EBIT in the first quarter of 2012/13 was negative at EUR
-5.6 million, down from EUR 22.2 million in the first quarter of 2011/12.

In South Africa, the start of the electronic toll collection system for
multi-lane free-flow traffic in the Gauteng province was suspended indefinitely
shortly before the planned commissioning at the end of April due to a lawsuit.
The government has appealed this decision, and the first hearings were held on
15 August 2012.

The nationwide electronic toll collection system in Poland went into operation
in July 2011, and the system acceptance took place on 21 February 2012. In the
first quarter of the current fiscal year, Kapsch TrafficCom was contracted with
an extension of 320 km, and additional route sections are expected to follow in
2013. The company also received payment for the final milestone of the system
installation. However, performance related issues resulted in higher operating
costs during the reporting period, which had a negative impact on the result.
The developments of both of these major projects had a pronounced effect on the
first quarter of 2012/13. At the same time, the changes to the key figures
reflect the project-related volatility in the balance sheet and results.
Comparisons between individual quarters are therefore of only limited value, and
the company itself evaluates its success based on the year-end result.

Revenues and earnings In the segment Road Solution Projects (RSP),
the two implementation projects in Poland and South Africa were
associated with high revenues in the first quarter of the previous
year. The newly begun projects were unable to compensate for this
during the reporting period, and revenues declined as a result by
36.3 % from EUR 54.8 million to EUR 34.9 million. In consequence, the
company was not able to fully cover its costs, and the EBIT in the
segment RSP was therefore negative at EUR -7.2 million.

In the segment Services, System Extensions, Components Sales (SEC),
revenues declined by 13.8 %, from EUR 78.5 million in the same
quarter of the previous year to EUR 67.7 million. The contract
negotiations with the individual authorities of the E-ZPass Group for
finalization of the ten-year agreement resulted in on-board unit
sales lagging behind the expected quantities. The competitive
pricing, which brought the margins in the U.S.A. down in line with
typical global margins, for this order also weighed on the result.
The volume of delivered on-board units in the first quarter of
2012/13 was 1.7 million, following 2.8 million in the same period of
the previous year. The suspended commissioning of the project in
South Africa also negatively impacted revenues. The operation project
in Poland, on the other hand, made a considerable revenue
contribution. The decline of the segment EBIT from EUR 18.5 million
in the previous year to EUR 1.6 million can be attributed largely to
the reduced sale of on-board units, the lost revenues from the South
African project and the performance related higher operation costs in
Poland.

Financial position and cash flows The key balance sheet figures
improved significantly in the first quarter of fiscal year 2012/13
owing to conclusion of the implementation project in Poland and the
associated payment. The total assets declined due to the reduction of
trade receivables as well as, in particular, due to the decrease in
current financial liabilities with respect to the year-end closing
date of 31 March 2012, falling from EUR 557.7 million to EUR 499.0
million. Total equity declined only slightly, producing an increase
in the equity ratio from 45.9 % to 49.6 %.

The free cash flow grew to EUR 74.6 million as a result of these
developments, whereas this figure was negative at EUR -9.0 million in
the comparison quarter of the previous year. Despite the corporate
bond due in 2017, the Kapsch TrafficCom Group had net assets of EUR
0.2 million at the end of the first quarter, while the net working
capital decreased from EUR 285.7 million as of 31 March 2012 to EUR
199.1 million on 30 June 2012. Cash and cash equivalents at the end
of the quarter had increased to EUR 77.4 million. These significant
changes demonstrate that Kapsch TrafficCom enjoys a solid balance
sheet structure that will enable the company to maintain its focus on
investments in research and development as well as new projects
despite a short-term dip in profit. Outlook At the end of July,
Kapsch TrafficCom was selected as supplier for a complete system in
Texas. In the coming years, two highways in northern Texas will see
implementation of what is called a "managed lane" system, which
encompasses a toll collection system, an intelligent transportation
system and a network communication system. It will be one of the
newest and most modern transportation systems in North America. The
executive board views this as a reinforcement of the growth strategy
as well as confirmation of the assumption that, in addition to toll
collection systems, demand for integrated systems consisting of
various ITS applications will increase in the future.

As part of a large project in Belarus, the installation of a
nationwide electronic toll collection system will begin in autumn,
and associated revenues will be reflected on the balance sheet as of
the second half of the current fiscal year. In addition, the company
expects decisions on other potential projects during the course of
the current fiscal year. In order to continue the planned growth with
regard to new projects and new markets, the Kapsch TrafficCom Group
is also working intensively on implementation of the 2016 strategy
and the new company structure this entails.

The report on the first quarter of the fiscal year 2012/13 can be
downloaded from http://www.kapsch.net/en/ktc/investor_relations/finan
cial_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. For additional information:
www.kapsch.net and www.kapschtraffic.com

Follow us on Twitter: twitter.com/kapschnet

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

Katharina Riedl
Spokesperson
Kapsch AG
Am Europlatz 2, 1120 Vienna, Austria
Phone +43 50 811 1705
Email katharina.riedl@kapsch.net

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