EANS-News: Kapsch TrafficCom AG / Kapsch reports successful system starts - revenues and earnings for the first three quarters improved

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quarterly report/company

Wien (euro adhoc) - Kapsch reports successful system starts -
revenues and earnings for the first three quarters improved

* Project progress brought about another revenue increase of 14 % *
Milestone reached in South Africa: Toll collection system in
operation since December * EBIT weighed down heavily in third
quarter, leaving the period earnings still negative * New operation
projects will in future have a positive impact on revenues and
earnings

_____________________________________________________________________
____ |2013/14 Q1-Q3: 1 | 2013/14 Q1-Q3 | +/- % |
2012/13 Q1-Q3 | |April-31 December | |
| | |2013________________|___________________|_____
_______|___________________| |Revenues (in million| 355.0
| +14 % | 310.9 | |EUR)________________|____________
_______|____________|___________________| |EBIT (in million |
8.6 | - | -8.7 | |EUR)________________|__
_________________|____________|___________________| |Profit for the
| | +78 % | -5.7 | |period (in
million | -1.3 | | | |EUR)
________________|___________________|____________|___________________
| |Earnings per share | -0.40 | +63 % |
-1.09 | |(in_EUR)____________|___________________|____________|_
__________________|

Vienna, 26 February 2014 -Kapsch TrafficCom AG (ISIN AT000KAPSCH9),
listed in the Prime Market of the Vienna Stock Exchange, transitioned
several implementation projects into operation - including a few
major ones - and also expanded a number of existing projects. This
resulted in a satisfactory increase in revenue. The EBIT has now been
positive again for four quarters, although it was weighed down
heavily in the third quarter of the current fiscal year.

Kapsch TrafficCom has achieved a milestone in South Africa: At the
start of December, the toll collection system in the province of
Gauteng went into operation after a wait of over one-and-a-half
years. Roughly 1 million on-board units have already been registered
by users, and more should follow. In the future, this project will
have a positive impact on the revenues and earnings.

In Belarus, the first expansion stage of the nationwide electronic
toll collection system went into operation already in the second
quarter; a portion of the second stage was completed in the third
quarter and went into operation at the start of January. This
operation project will also be reflected in the earnings in future.

Furthermore, the toll collection system in Sydney, Australia, and a
portion of the toll project in Texas - the most complex project of
its kind existing in the U.S.A. - also went live in December. The
nationwide toll collection system in Poland was expanded further
during the reporting period.

In Russia, Kapsch TrafficCom obtained four new orders, and a bid is
currently being prepared for the invitation to tender for the
nationwide toll collection system for trucks exceeding 12 tons total
weight.

Subhead: Revenues and earnings The revenues in the first three
quarters increased by 14.2 % in connection with the project progress,
from EUR 310.9 million in the first three quarters of the previous
year to EUR 355.0 million in the reporting period. The EBIT, which
was negative at EUR -8.7 million in the previous year, is again
firmly positive, although it still falls below the expectations of
Kapsch TrafficCom at EUR 8.6 million. "Our new business has not yet
expanded to the expected volume. As a result, we are still bearing
the entire costs of our reorganization in 2012 with relatively low
revenues. The third quarter also brought with it another setback. In
South Africa, we agreed on cost reimbursement with our customer for
maintenance of the toll system's operational readiness. Unresolved
issues in this regard noticeably weighed down the third quarter
earnings," explains Georg Kapsch, CEO of Kapsch TrafficCom AG. The
earnings for the first three quarters of 2013/14 remain negative at
EUR -1.3 million.

In recent months, Kapsch TrafficCom has already achieved significant
cost reductions by adapting its organizational structure to the
slower market growth. In parallel, the structures required for
existing and potential major projects had to be retained or expanded.

The segment RSP (Road Solution Projects) increased its revenues by
40.9 % thanks to the achieved project progress, from EUR 64.0 million
in the previous fiscal year to EUR 90.2 million. The EBIT of EUR
-26.0 million nevertheless shows that the costs assigned to this
segment are still not being covered. The revenues of the segment SEC
(Services, System Extensions, Components Sales) increased by 6.9 %,
from EUR 234.3 million in the previous year to EUR 250.4 million,
while the EBIT in this segment rose by 61.3 % from EUR 21.0 million
in the same period of the previous year to EUR 33.9 million.
Primarily the toll collection project in Poland contributed to this
increase, while the operation projects in Belarus and South Africa
will only be reflected in the results in future quarters. The EBIT
was weighed down in the third quarter by the unresolved issues in
South Africa.

Subhead: Financial position and cash flows The current status of the
implementation projects consistently influences the balance sheet of
the Kapsch TrafficCom Group, and the individual stages of the Belarus
toll project were also prefinanced for three years each. In
connection with this, the non-current receivables as well as the
financial liabilities increased during the reporting period. The free
cash flow was negative in the first three quarters of the 2013/14
fiscal year at EUR -31.7 million. The net debt increased to EUR 86.9
million as on 31 December 2013.

Subhead: Outlook Kapsch TrafficCom takes a positive view of the full
2013/14 fiscal year, even if the earnings outlook for the current
fiscal year has been clouded somewhat by the developments in the
third quarter. In addition to the continuation of the current
implementation projects, Kapsch TrafficCom expects increasing
earnings contributions in the coming months from the systems that
have recently gone into operation. In addition, the company expects
to receive in the near future new orders from a number of regions,
especially the U.S.A. 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.

Subhead: Notification The report on the first three quarters of
fiscal year 2013/14 can be found at http://www.kapsch.net/ktc/investo
r_relations/reports/download/Quarterly-reports/
2013-14/KTC_IR_Report_FY14-Q1-Q3?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 44 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.

Investor Contact: Press Contact:

Marcus Handl Katharina Riedl
Investor Relations Officer Spokesperson
Kapsch TrafficCom AG Kapsch AG
Am Europlatz 2, 1120 Vienna, Austria Am Europlatz 2, 1120 Vienna, Austria
Phone: +43 50 811 1120 Phone: +43 50 811 1705
E-mail: ir.kapschtraffic@kapsch.net E-mail: katharina.riedl@kapsch.net

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:
Katharina Riedl
Spokesperson
Kapsch AG
Am Europlatz 2, 1120 Vienna, Austria
Phone: +43 50 811 1705
E-mail: 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