EANS-News: Kapsch TrafficCom AG / Kapsch significantly reduces semi-annual loss and sees itself on the right path

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Financial Figures/Balance Sheet

Vienna (euro adhoc) - Kapsch significantly reduces semi-annual loss
and sees itself on the right path

* Increased revenue thanks to project progress and ongoing operation
of systems * Good performance in system operation enables a positive
EBIT * Expansion phase 2 of the Belarus project has now begun, new
projects are under way * Profit for the period remains slightly
negative, primarily due to currency fluctuations * Additional
milestones in existing projects expected in the second half of the
year _______________________________________________________________
_______________ |2013/14 H1: 1 April-30| 2013/14 H1 | +/-
% | 2012/13 H1 | |September_2013________|________________|
_____________________|________________| | |
| | |

|Revenues (in million | 235.9 | +16 % |
203.4 | |EUR)__________________|________________|_______________
______|________________| | | |
| | |EBIT_(in_million_EUR)_|______7.6_______|_________
_-__________|______-5.6______| | |
| | | |Profit for the period |
-0.7 | +91 % | -6.9 | |(in_million_EUR)_
_____|________________|_____________________|________________| |
| | | | |Earnings
per share (in| -0.36 | +57 % | -0.85
| |EUR)__________________|________________|_____________________|____
____________|

Kapsch TrafficCom AG (ISIN AT000KAPSCH9), listed in the Prime Market
of the Vienna Stock Exchange, achieved considerable progress in its
existing projects in the first half of the fiscal year 2013/14 and is
also now engaged in new projects. Together with the ongoing operation
of systems, this led to a revenue increase compared with the same
period of the previous year, and the EBIT has now also seen positive
development for three straight quarters.

In Belarus, Kapsch TrafficCom achieved the first key milestone during
the period under report, with the first stage of this major project
entering into commercial operation on August 1st. Despite changing
circumstances in some cases, the company also achieved good progress
in the ongoing projects in France, Australia and Texas, for which
implementation is expected to be largely completed by the end of the
fiscal year. In Kazakhstan, weigh-in-motion systems were installed on
two highways already in August, and a total of four projects in
Russia were obtained in September - all successes in pursuing the ITS
(intelligent transportation systems) strategy of expanding beyond
toll collection systems.

Following the successful commissioning of the first phase of the
nationwide electronic truck toll collection system in Belarus, this
system will now be further expanded in two additional phases. In
South Africa, the law enabling the commissioning of the already
completed toll collection system in the Gauteng province was signed
and entered into force at the end of September. December 3, 2013, has
now been announced as the toll commencement date.

In Russia, in addition to the four new projects already under
implementation, Kapsch TrafficCom also prequalified for participation
in the invitation to tender for a nationwide toll collection system
for heavy trucks together with the Russian telematics company JSC
NIS.

Subhead: Revenue and earnings

The project progress and the ongoing operation of systems made it
possible to increase revenue in the first half of 2013/14 by 16.0 %
compared to the same period of the previous year, from EUR 203.4
million to EUR 235.9 million. The EBIT, which was negative in the
previous year at EUR -5.6 million, amounted to EUR 7.6 million in the
reporting period. This marks three straight quarters of positive
results, even if these results still fall far short of the goal of a
two-digit EBIT margin. The profit for the period is negative at EUR
-0.7 million due to a decline in the financial results.

"Looking back, we have achieved impressive developments in the past
years despite operational volatilities. In 2011, the consistent
revenue base of the ongoing operation of systems and the on-board
units business was supported primarily by just two toll collection
systems in Austria and the Czech Republic. In the past two years, we
have expanded this base enormously. In North America, contracts with
the E-ZPass Group and the Canadian toll authority Cantoll now make up
part of this base, and in the meantime, we now also have significant
operation projects in Poland and Belarus. At this time, we already
have six projects contributing to our regular revenue base," says
Georg Kapsch, CEO of Kapsch TrafficCom AG, confirming the strategic
progress of the group.

This is also reflected in the segment Services, System Extensions,
Components Sales (SEC), where revenue rose from EUR 144.7 million in
the first half of the previous year to EUR 164.4 million in the
reporting period, an increase of 13.6 %. The EBIT increased by 110.7
% from EUR 9.7 million to EUR 20.4 million. In the segment Road
Solution Projects (RSP), revenue increased by 26.3 % from EUR 50.2
million to EUR 63.4 million, while the EBIT remained negative at EUR
-13.1 million following EUR -15.7 million in the same period of the
previous year.

This outcome shows that the project business has developed more
slowly than expected. The organizational structure of the Kapsch
TrafficCom Group, which was reorganized roughly one year ago for
further growth in the toll segment as well as other select segments
in the ITS market, has therefore been adjusted somewhat during the
period under report, particularly in terms of costs. The objective
here was to achieve cost reductions in all areas without cutting back
on the strategically essential resources for potential major projects
in the future.

Subhead: Financial position and cash flows

The balance sheet of the Kapsch TrafficCom Group at the end of the
first half of 2013/14 reflects the progress and the prefinancing of
the project in Belarus. Receivables and financial liabilities
increased relative to the balance sheet date of March 31, 2013, as
did the net working capital. In line with the project progress, the
free cash flow is negative at EUR -46.7 million, and the net debt was
EUR 100.3 million at the end of the first half of the year. With the
end of the first expansion stage, the customer will now begin making
payments, while the next phase of the project will again be
prefinanced by Kapsch TrafficCom.

Subhead: Outlook

The second half of the 2013/14 fiscal year will be marked by a
continuation of the existing projects and by new projects. The major
project in South Africa is now scheduled to enter into operation on
December 3, 2013. In Belarus, Kapsch TrafficCom expects that the
second expansion stage of the toll collection system will be able to
enter operation partly yet this year and partly at the start of the
next fiscal year. Thanks to the continued progress in the projects in
France, Australia and Texas, corresponding project implementation
revenues are expected. At the same time, the initiated cost-cutting
measures should visibly impact the results in the second half of the
year.

Moreover, the tender documents for Russia are currently being
prepared. In Slovenia, it is expected that the invitation to tender
suspended at the start of the summer will be restarted. 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 Belarus. Overall, management views the
prospects for the second half of the year positively in light of the
organizational changes and successes to date.

Subhead: Notification

The report on the first half of fiscal year 2013/14 can be found at
http:// www.kapsch.net/ktc/investor_relations/reports/download/Quarte
rly-reports/2013- 14/KTC_IR_Report_FY14-H1?lang=en-US.

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 43 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.

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

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

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