EANS-News: Kapsch TrafficCom AG / Kapsch improves earnings in the first quarter of 2015/16 and gains momentum

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quarterly report

* Revenue remained at the previous year's level, EBIT increased
significantly * Positive effects of Program 2020 are increasingly
visible in the results * Strategy developed to align the group for
future business potential * New major order for traffic management
systems (TMS) strengthens the core business

2015/16 Q1: 1 April-30 June 2015 |2015/16 Q1 | +/- % | 2014/15
Q1 ______________________________________|___________|________|______
_____

Revenues (in million EUR) | 117.1 | -1 % | 118.0
EBIT (in million EUR) | 12.8 | >500 % | 0.6
Profit for the period (in million EUR)| 11.5 | >500 % | 0.3

Vienna, 19 August 2015 - Kapsch TrafficCom AG (ISIN AT000KAPSCH9),
listed in the Prime Market of the Vienna Stock Exchange, demonstrated
significant successes in the first quarter of the fiscal year 2015/16
that lay groundwork for the future. The first positive effects of
Program 2020 for reducing costs and increasing earnings already
contributed to improving the results. Strategy 2020 was also passed
in order to align the Kapsch TrafficCom Group for future business
potential. In addition to the projects obtained in the first quarter,
the company succeeded in finalizing the agreement on the extension of
the toll system in Belarus and in winning a significant order within
the framework of cross-border traffic management systems in England
and in the Netherlands in August. The existing installation projects
and the new installation projects obtained in the previous year
contributed to revenues and earnings during the reporting period. The
projects in the U.S.A. also played a significant part, including the
order for the Ohio River Bridges obtained in May, which represents
the group's first end-to-end solution in this market. This increase
in business reflects the size and reputation achieved by Kapsch
TrafficCom in North America over the past few years. In Chile, the
company received an order in May for a system expansion, and another
ITS project was put into operation in Italy, an automated access
system in the city of Prato. The existing operation projects
exhibited a stable development. An upward trend was observed in the
sale of on-board units. After postponements in the previous year, the
sales figures for the first quarter returned to the level from before
two years ago.

Assets, financial and earnings situation

At EUR 117.1 million, the revenue in the first quarter of the fiscal
year 2015/ 16 was 0.7 % below the previous year's value of EUR 118.0
million. While a decline was once again observed in the segment Road
Solution Projects (RSP) due to the lack of new large installation
projects, the revenue in the segment Services, System Extensions,
Components Sales (SEC) increased particularly due to the strong
on-board unit business. The EBIT improved significantly from EUR 0.6
million in the first quarter of the previous year to EUR 12.8
million. The EBIT margin rose from 0.5 % in the previous year to 10.9
%, putting it above the targeted 10 % threshold for the reporting
quarter. The initial successes of Program 2020 could be seen in the
segment RSP, but the EBIT was still negative at EUR -7.1 million. The
positive effects of the implemented measures were also reflected in
the segment SEC. In addition, the business in on-board units
contributed disproportionately to the increase in the EBIT by 50.5 %
to EUR 19.5 million. The result for the period increased from EUR 0.3
million in the comparison quarter of the previous year to EUR 11.5
million. The profit per share, which represents the profit
attributable to equity holders, improved significantly from EUR -0.06
to EUR 0.75. The balance sheet figures confirm the strengthening of
the Kapsch TrafficCom Group. The net debt was reduced from EUR -67.2
million from the previous year to EUR -25.9 million, and the equity
ratio rose from 37.1 % to 44.2 %. The cash and cash equivalents in
the amount of EUR 100.4 million and the free cash flow of EUR 14.7
million also demonstrate potential for future projects.

Program 2020 and strategy

With Program 2020, which was initiated by Kapsch TrafficCom in the
previous year, measures with both short- and long-term effect are
being implemented to strengthen earnings and prepare for future
growth. The first successes made it possible to improve not only
profitability but liquidity and balance sheet strength as well. In
April, Kapsch TrafficCom passed Strategy 2020, which calls for both
operational excellence and a strengthening of the core business. In
addition, Kapsch TrafficCom will establish a business in intelligent
mobility solutions (IMS) with new business models and integrated
multi-application solutions. This will expand the portfolio from the
highway into the city, and end-users will be addressed in future
alongside public agencies. A first step took place already in April
with the acquisition of a majority stake in the Californian pioneer
for smart parking solutions, Streetline. In August, Kapsch TrafficCom
succeeded in winning a major order that will significantly strengthen
the core business. Kapsch TrafficCom has been awarded a contract by
the Dutch national road authority and has received the intention to
award a contract by the English road authority to supply a traffic
management system as part of the collaborative program CHARM. This is
Europe's first integrated advanced traffic management system. It is
not only the largest order that the group has received in the past
two years, it also has strategic significance. With this order,
Kapsch TrafficCom attains a globally recognized position in the area
of TMS (traffic management systems) alongside the position it already
enjoys in the area of ETC (electronic toll collection).

Outlook

Kapsch TrafficCom is therefore well on the way to implementing its
Strategy 2020. Development of the existing projects will continue
over the coming months. Continued system expansions in Belarus and in
Poland have been ordered, and these will also contribute
significantly to revenues and earnings in the current fiscal year
2015/16. In addition, the company expects new invitations to tender
and potential contract extensions: In Slovenia, Kapsch TrafficCom is
taking part in a new invitation to tender. In Austria, the new
invitation to tender for the existing toll system is under way, and
an invitation to tender is also in preparation in the Czech Republic.
Another major project is currently in the offer phase in the U.S.A.,
and efforts to actively contact potential customers are being
intensified like it was already successfully done in Belarus. The
executive board expects the fiscal year 2015/16 to be both
challenging and rich in opportunities. The profitability of the core
business should offer sufficient freedom for future investments.

Notification

The report on the first quarter of fiscal year 2015/16 can be found
under http:/ /kapsch.net/ktc/investor_relations/reports/download/Quar
terly-reports/2015-16/ KTC_IR_Report_FY16-Q1?lang=en-US.

Kapsch TrafficCom is a provider of intelligent transportation systems
(ITS) in the solution segments of road user charging, urban access
and parking, traffic management, road safety enforcement, commercial
vehicle operations, electronic vehicle registration and V2X
cooperative systems. With end-to-end solutions, Kapsch TrafficCom
covers the entire value creation chain of its customers as a one-stop
shop, from components and design to the installation and operation of
systems. The core business is to design, build and operate electronic
toll collection and traffic management systems. References in 44
countries on all continents make Kapsch TrafficCom a recognized ITS
provider 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 offices in 33
countries, has been listed on the Vienna Stock Exchange (KTCG) since
2007, and generated with more than 3,500 employees revenues of EUR
456 million in fiscal year 2014/15.

For additional information: www.kapsch.net and www.kapschtraffic.com

Follow us on Twitter: twitter.com/kapschnet.

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:

Ingrid Lawicka
Spokesperson
Kapsch AG
Am Europlatz 2, 1120 Vienna, Austria
Phone: +43 50 811 1705
E-mail: ingid.lawicka@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