EANS-News: Kapsch TrafficCom AG / Kapsch initiated a set of measures to secure its growth strategy in the first quarter of 2014/15

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quarterly report

· Existing projects continue to progress well, new installation
projects fail to materialize · Revenue and EBIT below the previous
year, profit for the period improved · Comprehensive set of measures
to improve profitability initiated · Growth strategy maintained with
project and technology potential ___________________________________
___________________________________________ |2014/15 Q1: 1 |
2013/14 Q1 | +/- % | 2014/15 Q1 | |April - 30
June | | | |
|2014______________|___________________|___________________|_________
__________| |Revenues (in | 121.4| -3
%| 118.0| |million_EUR)______|___________________|______
_____________|___________________| |EBIT (in million |
3.7| -83 %| 0.6| |EUR)______________|____
_______________|___________________|___________________| |Profit for
the | -1.0| -| |
|period (in million| | |
0.3| |EUR)______________|___________________|___________________|____
_______________|

Vienna, 20 August 2014 - Kapsch TrafficCom AG (ISIN AT000KAPSCH9),
listed on the Vienna Stock Exchange in the prime market segment,
reports positive project progress in the first quarter of fiscal year
2014/15 with continued success in the ongoing installation and
operation projects. However, the forecast market growth still has not
materialized, and no new projects arose. In particular, no
invitations to tender for major toll projects in Europe are in the
immediate vicinity. Kapsch TrafficCom has therefore initiated a set
of measures for adapting its growth-oriented organizational structure
to this situation.

The Kapsch TrafficCom Group continued to enjoy positive developments
in its projects during the first quarter of 2014/15. In North
America, progress was made in the installation of the toll system in
Texas, the first system integrated by Kapsch TrafficCom in this
region. In July, the company received a second system order in the
U.S.A. for an electronic toll collection system on the New York State
Thruway. Kapsch TrafficCom sees great potential for the future in
this first system order from a toll agency of the E-ZPass Group.

The first expansion stage of the nationwide electronic toll
collection system in Belarus has been in operation for one year. At
the beginning of August 2014, the system was further increased to
1,189 km. The continued expansion will also lead to another rise in
registered vehicles.

The nationwide electronic toll collection system in Poland has been
in operation for three years. With 2,653 kilometers of toll roads and
1.6 million on-board units (OBUs), it is now the largest toll system
of the Kapsch TrafficCom Group. By the year 2018, it should be
expanded to 7,000 km.

The toll system in the South African Gauteng province also went into
operation at the beginning of December 2013. The payment rate remains
very low, but the system operation has reached the break-even point
in the meantime. However, the project in its entirety is still
negative for Kapsch TrafficCom. The company plans to work with the
customer to improve the profitability.

The invitation to tender for the toll system in Russia has been
postponed several times, most recently until 22 September. The
realization of the project currently appears uncertain. In view of
the disappointed reaction on the capital market, Kapsch TrafficCom
emphasizes that this is only one of the group's potential future
projects.

Subtitle: Financial position Within this ambivalent environment,
Kapsch TrafficCom Group brought in revenue of EUR 118.0 million
during the first quarter of fiscal year 2014/15 after EUR 121.4
million in the same quarter of the previous year, a decline of 2.8 %.
The operating result (EBIT) fell from EUR 3.7 million to EUR 0.6
million. This weak result reflects the lack of additional
installation projects. At the same time, the company bears the high
costs of maintaining international structures and resources and also
invests strategically in research and development. A view of the
operating projects in isolation clearly shows positive development by
the Kapsch TrafficCom Group.

The profit for the period, which was previously negative due to
currency exchange effects is once again positive during the quarter
under report at EUR 0.3 million. The key balance sheet figures were
also noticeably improved thanks to the ongoing repayment of the
financing for the project in Belarus. The net working capital and net
debt are significantly below the comparison values of the previous
year, and the free cash flow is once again positive at EUR 32.4
million after EUR -37.2 million in the previous year.

Subtitle: Growth strategy Kapsch TrafficCom continues to expect
growth in the market for intelligent transportation systems (ITS) as
well as associated changes in the market structure and composition.
The toll collection market is currently developing more slowly than
predicted, and expected major projects have not materialized. During
the quarter under report, the company therefore initiated a
comprehensive set of measures to reduce the costs associated with
maintaining complex structures and resources in line with the current
market development. Kapsch TrafficCom continues to strive for a
two-digit EBIT margin in order to focus strongly on continuing its
growth strategy.

Cost reductions were achieved already in the previous year, and these
efforts are now being intensified. This applies in particular to
costs that have arisen due to growth related to the broad ITS
portfolio and the group's increasingly global position. The resources
maintained for potential projects and investments will also be
reevaluated even as care is taken not to restrict the project and
technology potential. At the same time, the planning and
implementation of the strategic growth paths will be intensified.

From an operational perspective, Kapsch TrafficCom will concertedly
continue its existing projects during the current fiscal year, and
the company also expects expansions in existing systems as well as
some new projects. Kapsch TrafficCom eagerly looks forward to the
outcome of the invitation to tender in Russia. In addition, the
company is actively contacting parties potentially interested in toll
systems and expects this approach to also bear fruit.

Subtitle: Notification The report on the first quarter of fiscal year
2014/15 can be found under www.kapsch.net/ktc/investor_relations/repo
rts/download/Quarterly-reports/2014-
15/KTC_IR_Report_FY15-Q1?lang=en-US.

Kapsch TrafficCom is 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 design to the installation and
operation of systems. The solutions of Kapsch TrafficCom help to
finance infrastructure, 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 3,300 employees revenues of EUR 487.0 million in
fiscal year 2013/14.

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

Follow us on Twitter: twitter.com/kapschnet.

Press Contact:

Alf Netek
Chief Marketing Officer
Kapsch AG
Am Europlatz 2, 1120 Vienna, Austria
Phone: +43 50 811 1700
E-mail: alf.netek@kapsch.net

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

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. Alf Netek
Chief Marketing Officer
Kapsch AG
Am Europlatz 2, 1120 Wien, Österreich
Tel.: +43 50811 1700
E-Mail: alf.netek@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