EANS-News: Kapsch TrafficCom AG focusing on projects in the second half of fiscal year 2012/13

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Subtitle: * Revenues and earnings disappointing in first half of
2012/13 owing to delays with major projects * Projects recently won
will only be reflected in figures in second half-year * Balance sheet
figures reveal strong financial base after project completion in
Poland * Reorientation of Kapsch TrafficCom Group for growth in ITS
market completed

Company Information/6-month report

Wien (euro adhoc) - Press Release
05778400

2012/13 H1: 1 April - 30 September 2012 2012/13 H1 +/- % 2011/12 H1
Revenues (in EUR million) 203.4 -27% 278.8
EBIT (in EUR million) -6.2 - 40.1
Profit for the period (in EUR million) -7.0 - 22.4
Earnings per share (in EUR) -0.85 - 1.36

Vienna, 22 November 2012 - Kapsch TrafficCom AG (ISIN AT000KAPSCH9)
listed on the Prime Market of the Vienna Stock Exchange has reported
on a complex first half-year in 2012/13. Delays in implementing and
rolling out large projects had a negative impact on revenues and
earnings, while the main balance sheet figures since the first
quarter again demonstrate the solid financial foundations
underpinning the activities of the Kapsch TrafficCom Group. Moreover,
Kapsch TrafficCom managed to win some significant new contracts in
the reporting period.

Revenues of the Kapsch TrafficCom Group came in at EUR 203.4 million,
27.1% below the corresponding figure in the previous year of EUR
278.8 million. The previous year was marked by outstanding revenues
following the implementation of major projects, but the
implementation projects recently won have yet to be reflected in the
figures for the reporting period. The projects in South Africa and
Poland have not yet generated the expected levels of operation
revenue, while the sale of on-board units only registered the
expected growth in the second quarter.

The lower revenues made it more difficult to cover costs completely.
Coming in at EUR -6.2 million, EBIT was negative in the first half of
2012/13 following EUR 40.1 million in the same period in the previous
year, though a substantial improvement was achieved from the first to
the second quarter based on the higher volume of sold on-board units
and the greater contribution made by the operation project in Poland.

The nationwide electronic toll collection system in Poland has been
in operation for more than a year, and extensions have already been
ordered. However, the revenues for Kapsch TrafficCom have fallen
short of expectations. In South Africa the launch of the electronic
toll collection system for multi-lane free-flow traffic in the
province of Gauteng was delayed shortly before its roll-out at the
end of April due to a legal action filed against the road operator;
consequently there is no operation revenue to offset costs for the
time being. At the end of October a decision was made to continue the
system roll-out process, and Kapsch TrafficCom is optimistic about
the latest developments in this project.

Kapsch TrafficCom enjoyed some strategic successes in the second
quarter on the U.S. market: at the end of July and for the first time
in this region the company was chosen to supply an entire system in
Texas, comprising a toll collection system, an intelligent
transportation system and a network communications system. Just one
month later, Kapsch TrafficCom was awarded another contract, this
time for an incident detection system in a tunnel in Houston.

In Brazil - one of the fastest growing markets in the ITS industry -
Kapsch TrafficCom won its first contract for the delivery of on-board
units. And at the end of August the company won another contract for
a toll collection system in Sydney, Australia.

The contracts won in recent months have demonstrated the growing
convergence of the market for intelligent transportation systems
(ITS). The Executive Board sees this as confirmation of the recently
adopted strategy and the new corporate structure implemented from
early October. This enables greater importance to be attached to
select ITS applications, over and above toll collection. The Kapsch
TrafficCom Group now has a globally uniform organizational structure
with coordinated standards, processes and interfaces. This will
underpin the continuation of growth.

Revenues and earnings

Both of the implementation projects in the segment Road Solution
Projects (RSP) in Poland and South Africa were associated with high
revenues in the first six months of the previous fiscal year. The
newly launched projects were unable to compensate for this in the
reporting period, and so revenues posted a decline of 59.2% from EUR
122.9 million to EUR 50.2 million. This was insufficient to provide
full coverage for costs, and therefore EBIT in the segment RSP came
in at EUR -15.7 million.

In the segment Services, System Extensions, Components Sales (SEC),
revenues dropped by 5.6% from EUR 153.2 million in the previous year
to EUR 144.7 million. The operation project in Poland made a
significant contribution to revenues. However, the suspension of the
project launch in South Africa and the - now completed - contract
negotiations with individual agencies of the E-ZPass Group meant that
the volume of sold on-board units fell short of expectations in the
reporting period. The number of sold units in the first six months of
fiscal 2012/13 was 4.0 million, compared to 5.7 million in the
previous year. The competitive pricing for this contract, which has
now resulted in common global margins in the U.S.A. as well, also had
an impact on earnings. The decline in EBIT from EUR 32.4 million in
the previous year to EUR 9.1 million mainly reflects the reduced
sales of on-board units and the low or even absent contributions from
the projects in Poland and in South Africa.

Financial position and cash flows

The main balance sheet figures were significantly improved in the
first half of the 2012/13 fiscal year by the completion of the
implementation project in Poland and the associated payment. Total
assets fell from EUR 557.7 million to EUR 481.5 million compared to
the reporting date of 31 March 2012. This was caused by the reduction
of trade receivables under assets, while on the equity and
liabilities side of the balance sheet, mainly through the decline in
current financial liabilities. Equity capital dropped to almost the
same extent, thus bumping the equity capital ratio up marginally from
45.9% to 46.2%.

These developments triggered an increase in the free cash flow
compared to the first half-year of fiscal 2011/12, from EUR -44.9
million to EUR 78.7 million. At EUR 16.3 million, net debt remains at
a very low level, while net current assets and capital employed were
lowered substantially. Cash and cash equivalents at the end of the
half-year amounted to EUR 67.7 million. These significant changes
demonstrate that Kapsch TrafficCom has a solid balance sheet
structure - also in view of future projects.

Outlook

The current order book and the successes achieved will also be
reflected in the earnings of the Kapsch TrafficCom Group in the
second half of 2012/13. The major project in Belarus was launched in
September as planned. In addition to this, the coming months will be
marked by further developments in South Africa and by participation
in tenders. Kapsch TrafficCom is currently working on a bid for a
toll collection system tender in Hungary.

The report on the first half of fiscal 2012/13 can be downloaded from
{http://www.kapsch.net/ktc/investor_relations/reports/download/Quarte
rly-reports/2012-13/KTC_IR_Report_FY13-H1?lang=en-US}[HYPERLINK: http
://www.kapsch.net/ktc/investor_relations/reports/download/Quarterly-r
eports/2012-13/KTC_IR_Report_FY13-H1?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 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 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 ETC systems worldwide. Kapsch
TrafficCom is headquartered in Vienna, Austria, and has subsidiaries
and representative offices in 30 countries. For additional
information, please visit {www.kapschtraffic.com}[HYPERLINK:
http://www.kapschtraffic.com].

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

Further inquiry note:
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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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