EANS-News: Kapsch TrafficCom AG / Kapsch strives to achieve two-digit EBIT margin by 2015/16 with "Program 2020"

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quarterly report

- Revenue in the first half of 2014/15 slightly above the previous
year's level, EBIT significantly improved - Program 2020 consists
of short- and long-term structural and financial adjustments -
Goal: Initial successes in the current fiscal year, two-digit EBIT
margin in the following year _______________________________________
_______________________________________

|2014/15 H1: 1 | 2013/14 H1 | +/- % | 2014/15 H1 |
|April - 30 | | | |
|September_2014 | | | |

|__________________|___________________|___________________|_________
__________|

|Revenues (in | 235.9| +1 %|
237.4| |million_EUR)______|___________________|___________________|__
_________________| |EBIT (in million | 7.6|
+132 %| 17.6| |EUR)______________|___________________|_
__________________|___________________| |Profit for the |
-0.7| - | 0.9| |period (in million|
| | | |EUR)______________|_______
____________|___________________|___________________|

Vienna, 20 November 2014 - Kapsch TrafficCom AG (ISIN AT000KAPSCH9),
listed in the Prime Market of the Vienna Stock Exchange, reports
stable business in the first half of the fiscal year 2014/15. With a
slight increase in revenue, it was possible to significantly improve
the EBIT, which was also negatively impacted by one-time effects. At
the same time, Kapsch TrafficCom announces that it will now quickly
implement an intensive set of measures in order to improve
profitability over the long term in the face of changed market
conditions. The cancellation of the toll tender in Russia highlighted
the urgency of this action.

Subtitle: Financial position The revenue of the Kapsch TrafficCom
Group increased slightly in the first half of the fiscal year 2014/15
to EUR 237.4 million after EUR 235.9 million in the same period of
the previous year. While an increase of 13.9 % was achieved in the
segment Services, System Extensions, Components Sales (SEC)
especially due to the toll systems in Belarus and South Africa that
went into operation in the previous year, revenue fell by 40.2 % in
the segment Road Solution Projects (RSP), which includes development
services as well as the preparatory work for and the installation of
projects. This is primarily due to the advanced level of completion
of existing projects and the lack of new large projects.

In consequence, the segment RSP recorded an EBIT of EUR -23.7 million
after EUR -13.1 million in the same period of the previous year. This
result includes a goodwill impairment of EUR 12.3 million, while the
release of a provision in the amount of EUR 16.2 million had a
positive impact on the profit. The EBIT of the segment SEC increased
by 97.1 % to an outstanding EUR 40.2 million. Overall, the EBIT of
the Kapsch TrafficCom Group for the first half of 2014/15 was EUR
17.6 million, placing it significantly above the same value of the
previous year of EUR 7.6 million.

A required impairment to the interest in Q-Free ASA amounting to EUR
12.2 million weighed down the profit for the period, which was
nevertheless still positive at EUR 0.9 million (2013/14 H1: EUR -0.7
million).

The balance sheet depicts the solid basis of the Kapsch TrafficCom
Group. In particular, the repayments in connection with the financing
agreement for installation of the toll system in Belarus had a
positive impact. The free cash flow, which was negative in the same
period of the previous year, amounted to EUR 25.5 million. The net
working capital and capital employed were reduced in comparison to 30
September of the previous year. The equity ratio as well as the cash
and cash equivalents increased, while the net debt declined by
roughly 24%.

Subtitle: Growth strategy Kapsch TrafficCom is a globally recognized
provider of electronic toll systems and a market leader in systems
for multi-lane free-flow traffic. In addition, the company has
expanded and demonstrated its competence in the area of intelligent
transportation systems (ITS). As part of its long-term growth
strategy, Kapsch TrafficCom is striving for a two-digit EBIT margin
in order to continue innovating and growing.

In the last two years, however, new projects have been delayed due to
the prevailing economic and political conditions, and several
invitations to tender have been postponed or canceled. Furthermore,
the demand for large, nationwide toll systems has declined in favor
of regional, interurban and modularly designed solutions. The
convergence of the ITS market predicted by Kapsch TrafficCom is now
already taking place. Kapsch TrafficCom refers here to future
intelligent mobility solutions, many elements of which must still be
developed, and views itself at player who will help shape this
future.

Kapsch TrafficCom is now responding to market changes with the rapid
implementation of an intensive set of measures intended to quickly
improve the earning power of its existing business while also
establishing a long-term strategy to ensure a profitable and
sustainable future for the Kapsch TrafficCom Group.

A variety of measures will be initiated and implemented by the end of
the fiscal year 2014/15 under the title of "Program 2020". These
include the plan to achieve an EBIT margin of 10 % in the coming
fiscal year 2015/16 on the basis of a cost structure adapted to the
current revenue level - with the goal of a further increase in the
following year. Kapsch TrafficCom views this as a basis for
calculation that is independent of the desired growth. The set of
performance improvement measures begun already in March will be
continued, but structural and financial adjustments will also be
made.

During the coming weeks, the planning for the global Kapsch
TrafficCom Group will be finalized, and individual measures will be
implemented immediately in order to achieve initial results as
quickly as possible. Kapsch TrafficCom intends to remain a globally
leading provider of intelligent mobility solutions capable of
covering the entire value creation chain of its customers. In
addition, the company plans to increasingly take advantage of
potential synergies within the Kapsch Group in order to offer
intermodal and interoperable solutions for individual and public
transportation around the world.

Subtitle: Outlook The second half of the fiscal year 2014/15 will be
marked by strategic adjustments to changed market conditions. On the
operational side, Kapsch TrafficCom will continue to carry out
existing projects, such as the expansion of the toll systems in
Belarus and Poland. The implementation of the system in Texas should
be completed in the next two quarters, and work continues unabated on
improving the profit situation in South Africa. Furthermore, Kapsch
TrafficCom expects its business to be expanded with new projects.

The outstanding results of the first half of the year will also be
felt in the results of the entire fiscal year 2014/15, as will the
initial effects of the structural measures. For the coming fiscal
year 2015/16, Kapsch TrafficCom is striving for a level of
profitability based on its Program 2020 that will enable an EBIT
margin of 10 % even at current revenue levels.

Notification The report on the first half of fiscal year 2014/15 can
be found under www.kapsch.net/ktc/investor_relations/reports/download
/Quarterly-reports/2014-15/KTC_IR_Report_FY15-H1?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 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.

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}
[HYPERLINK: mailto:ir.kapschtraffic@kapsch.net]

Press Contact:
Ingrid Lawicka
Spokesperson
Kapsch AG
Am Europlatz 2
1120 Vienna, Austria
Phone.: +43 50 811 1705
E-mail: ingrid.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