EANS-Adhoc: Kapsch TrafficCom AG / Kapsch TrafficCom confirms its growth potential in the first three quarters of the fiscal year 2011/12

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9-month report

29.02.2012

- Revenues and EBIT up by roughly 60% despite results in the third
quarter weighed down by delays in projects in Poland and South Africa
- Total revenues of the previous year already exceeded - Two major
orders received in Q3, decisions on additional projects expected soon

FY 12 Q1-Q3: 1 April - 31 December 2011 FY12 Q1-Q3 +/- % FY11 Q1-Q3
Revenues (in million EUR) 408.2 58 % 258.5
EBIT (in million EUR) 37.4 61 % 23.2
Profit for the period (in million EUR) 24.7 47 % 16.8
Earnings per share (in EUR) 1.40 28 % 1.09

Vienna, 29 February 2012 - Kapsch TrafficCom AG (ISIN AT000KAPSCH9),
listed in the Prime Market of the Vienna Stock Exchange, succeeded in
continuing its growth of previous years during the first three
quarters of the fiscal year 2011/12. Existing and new projects
contributed to the achieved revenue and profit growth as did the
acquisition of the Canadian and American Mark IV IVHS companies in
November 2010. In the past three quarters, Kapsch TrafficCom Group
has exceeded the total annual sales of the previous year and achieved
successes on many levels that support its future and continued
growth.

At the start of the third quarter, Kapsch TrafficCom already reached
a basic agreement with Asfinag Mautservice GmbH regarding the
extension of the current operation and maintenance contract for the
nationwide electronic truck tolling system in Austria through the end
of year 2018. At the end of December, the company was awarded the
contract for maintenance and toll-based operation of a section of the
Don highway M-4 in Russia as part of a joint venture. This major
order is also of strategic significance for Kapsch TrafficCom as the
first step into the Russian market.

The executive board is not satisfied with the developments in the
third quarter, which was characterized in particular by delays in the
ongoing major projects in Poland and South Africa. Despite the
extremely short implementation time, the nationwide electronic toll
collection system in Poland was put into operation on 3 July 2011,
just two days later than planned, and was completed in stages by the
end of December. Since then, Kapsch TrafficCom has borne the ongoing
costs for the operation of the system but is only receiving reduced
operating performance until the system acceptance by the customer is
complete. The payment of the outstanding receivables has also been
delayed accordingly as the system acceptance is a prerequisite for
these payments. The acceptance process is expected to be completed
only in the fourth quarter of the fiscal year 2011/12, significantly
later than anticipated even at the end of the second quarter.

Delays also arose in the toll project in the South African Gauteng
province, for which the mobilization phase has already been started
in view of the planned commissioning on 15 February 2012. As a result
of new rate discussions with the government, however, the customer
was forced to postpone the system start again to 30 April 2012.

The market expansion in the U.S.A. is continuing according to plan,
and in Portugal, Kapsch TrafficCom began in October 2011 with the
installation of an electronic toll collection system that should be
completed in stages by October 2013.

Revenue and earnings

In the first three quarters of the current fiscal year, the Kapsch
TrafficCom Group achieved revenues totaling EUR 408.2 million,
representing an increase of 57.9 % over the value of EUR 258.5
million from the same period of the previous year and thus already
exceeding the total annual sales of the previous year. The EBIT
increased by 61.1 % from EUR 23.2 million to EUR 37.4 million. This
raised the EBIT margin to 9.2 %.

Revenues in the third quarter amounted to EUR 129.4 million, an
increase of 15.6 % compared with EUR 111.9 million in the third
quarter of the previous year. After a value of EUR 5.0 million in the
same quarter of the previous year, the EBIT was negative at EUR -2.7
million as a result of the delays in the two projects in Poland and
South Africa as well as negative currency exchange effects not yet
realized.

In the segment Road Solution Projects (RSP), revenues grew in the
first three quarters of the fiscal year 2011/12 compared with the
same period of the previous year from EUR 105.9 million to EUR 181.0
million, an increase of 70.9 %, while the EBIT reached EUR 2.0
million after EUR -4.5 million in the comparison period. This
improvement can primarily be attributed to the project in Poland.

In the segment Services, System Extensions and Components Sales
(SEC), revenues increased by 49.0 % from EUR 147.8 million to EUR
220.3 million compared with the previous year. The EBIT increased by
27.3 % from EUR 27.4 million to EUR 34.9 million, leaving the EBIT
margin at 15.8 % compared to the previous year's value of 18.5 %.
This decline is largely due to the delays in the major projects in
Poland and South Africa.

The volume of delivered on-board units increased during the last nine
months to an all-time high of 8.0 million units, compared with 2.9
million units in the same period of the previous year.

Financial position and cash flows

The total assets grew over the reporting period as a result of the
augmented project business, and the capital increase at the end of
July 2011 combined with the previously earned profits to increase the
total equity, putting the equity ratio at 46.1 % as of 31 December
2011. The project-related increase in the net working capital
contributed significantly to reducing the free cash flow to EUR -23.8
million following on EUR 16.3 million in the same period of the
previous year.

Outlook

The fourth quarter of the fiscal year 2011/12 will be marked by the
acceptance of the Polish toll collection system and the continued
developments in South Africa as well as other existing and potential
projects. For some time, Kapsch TrafficCom has been engaged in talks
regarding another major order on which a decision is anticipated
soon.

The report on the first three quarters of the fiscal year 2011/12 can
be downloaded from http://www.kapsch.net/en/ktc/investor_relations/do
wnloads/files/reports/KTC_IR_Report_FY12-Q1-Q3.pdf.

end of ad-hoc-announcement ==========================================
====================================== Kapsch TrafficCom is an
international supplier of superior intelligent transportation systems
(ITS) and primarily supplies electronic toll collection (ETC)
systems. With its end-to-end solution portfolio, Kapsch TrafficCom
covers the entire value creation chain of its customers, from
products and systems to integration and operations, as a one-stop
shop. Kapsch TrafficCom also offers solutions for urban access
management as well as for traffic safety and security. Add-on
applications to these solutions complement the offering. With
references in 41 countries in all 5 continents, Kapsch TrafficCom has
positioned itself among the internationally recognized suppliers of
intelligent transportation systems. Kapsch TrafficCom AG is
headquartered in Vienna, Austria, and represented in 27 countries.

Further inquiry note:
Marcus Handl
Investor Relations
Kapsch TrafficCom AG
Tel: +43 50 811 1120
Am Europlatz 2, A-1120 Vienna, Austria
E-mail: ir.kapschtraffic@kapsch.net
www.kapschtraffic.com

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