EANS-Adhoc: Kapsch TrafficCom AG hold firm to long-term growth strategy

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Financial Figures/Balance Sheet/quarterly report
27.02.2013

Ad hoc Release
05778400

* Revenue decline by 24 % in the first three quarters of 2012/13; new
projects contributing little so far * Updated calculation for the
order in South Africa results in negative earnings * Balance sheet
figures show the strong foundation of the company group * Investment
strategy will be continued in the future

2012/13 Q1-Q3: 1 Apr.-31 Dec. 2012 2012/13 Q1-Q3 +/- % 2011/12 Q1-Q3
Revenues (in million EUR) 310.9 -24 % 408.2
EBIT (in million EUR) -9.6 - 37.4
Profit for the period (in million EUR) -5.8 - 24.7
Earnings per share (in EUR) -1.09 - 1.40

Vienna, February 27, 2013 - Kapsch TrafficCom AG (ISIN AT000KAPSCH9), listed on
the Vienna Stock Exchange in the prime market segment, reports on three
challenging quarters of the current 2012/13 fiscal year. The new projects that
the group succeeded in obtaining in the past months have hardly yet contributed
to revenues or earnings. At the same time, the delays in existing major projects
in Poland and South Africa led to significantly lower revenues than expected.
The updated calculation for the order in South Africa further indicated a
decline in the expected project revenues by roughly 10 %, which, together with
the additional costs and standby costs, negatively impacted the project's
earnings contribution in the third quarter. The overall profitability of the
project is also lower than expected as a result.

The legal action in South Africa, which was not directed against Kapsch
TrafficCom but has delayed the commissioning of the toll collection system in
the Gauteng province, has now been dismissed. The company hopes that the system
can be put into operation at the start of the coming fiscal year - following
announcement of the starting date by the government, which had been expected by
now. In the operation project in Poland, Kapsch TrafficCom was able to clarify
key open issues regarding the system operation during the third quarter. This
can also be seen in the significant improvement of the margin in the segment
Services, System Extensions, Components Sales (SEC).

"The earnings situation is currently not satisfactory. However, our fundamental
business continues to operate solidly, and we see enormous growth potential in
our markets. In the previous year, we restructured our organization in line with
this growth, which has not yet been realized. We have decided to continue with
our previous course in order to participate in the expected future projects,
some of them quite large. Naturally, we will at the same time strive to take
advantage of potential cost reductions and analyze where we can streamline or
suspend investments," explains Georg Kapsch, CEO of Kapsch TrafficCom AG.

Revenue and earnings

In the first three quarters of 2012/13, the Kapsch TrafficCom Group
achieved revenues of EUR 310.9 million - a decline of 24% compared to
the outstanding equivalent period in the previous year. The EBIT was
negative at EUR -9.6 million, weighed down primarily by the South
African project.

The segment RSP (Road Solution Projects) recorded revenues of EUR
64.0 million after EUR 181.0 million in the same period of the
previous fiscal year, a decrease of 64.6%. While the two
implementation projects in Poland and South Africa are reflected in
the previous year's figures, the projects begun in Belarus, France,
Australia and the U.S.A. have not yet delivered comparable revenue
contributions. This situation contributed to the inability to cover
the costs assigned to this segment. Moreover, the implementation
project for the electronic toll collection system in the South
African province of Gauteng weighed down the results due to the
delay, the revenue up to commissioning that was lower than originally
expected and the additional costs and standby costs incurred. The
segment EBIT for the first three quarters of 2012/13 was therefore
EUR -30.1 million after EUR 2.0 million in the same period of the
previous year.

In the segment SEC (Services, System Extensions and Components
Sales), revenues increased by 6.3% from EUR 220.3 million to EUR
234.3 million. While the operation project in Poland delivered a
significant revenue contribution, the delay in commissioning of the
South African project had a dampening effect here as well. The delay
also meant the absence of the expected deliveries of on-board units.
The number of on-board units sold amounted to 6.7 million after 8.0
million in the previous year. The segment EBIT was EUR 20.1 after EUR
34.9 million in the same period of the previous year.

Financial position and cash flows

Despite the disappointing earnings situation, the strength of the
Kapsch TrafficCom Group can be seen in the solid balance sheet
structure. The equity ratio increased to 47.7 % as at 31 December
2012. On the balance sheet date, the company had no net debts, rather
net assets in the amount of EUR 1.0 million. The cash and cash
equivalents amounted to an impressive EUR 83.7 million. The net
working capital and capital employed were back to significantly below
the comparison values of the previous year. Not least, the free cash
flow increased to EUR 89.7 million. Kapsch TrafficCom therefore
enjoys a solid foundation, including for future projects.

Outlook

The negative influence of the South African project will still weigh
down the annual results for 2012/13, bringing them considerably lower
than previous expectations. In view of the progress that has been
made in the existing projects and the expected tenders and additional
projects, the executive board of the Kapsch TrafficCom Group is
holding firm to the growth-oriented strategy and looks forward
optimistically to the future.

The report on the first three quarters of the 2012/13 fiscal year can
be downloaded from [HYPERLINK: http://www.kapsch.net/ktc/investor_rel
ations/reports/download/Quarterly-reports/2012-13/KTC_IR_Report_FY13-
Q1-Q3?lang=en-US].

Kapsch TrafficCom is a provider of 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 five 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 30countries. For more information,
visit[HYPERLINK: http://www.kapschtraffic.com/].

Follow us on Twitter: [HYPERLINK: http://twitter.com/kapschnet].

Further inquiry note:
For more information:
Mag. Marcus Handl
Investor Relations Officer
Kapsch TrafficCom AG
Am Europlatz 2
1120 Wien, Österreich
Tel.: +43 50.811 1120
E-Mail: {ir.kapschtraffic@kapsch.net}
[HYPERLINK: mailto:ir.kapschtraffic@kapsch.net]

Pressekontakt:
Mag. Katharina Riedl
Unternehmenssprecherin
Kapsch AG
Am Europlatz 2
1120 Wien, Österreich
Tel.: +43 50.811 1705
E-Mail: {katharina.riedl@kapsch.net}
[HYPERLINK: mailto:katharina.riedl@kapsch.net]

end of announcement euro adhoc
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issuer: 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