EANS-News: Kapsch TrafficCom AG / Kapsch sets a course for higher profitability and growth

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Subtitle: Revenue in the first three quarters of 2014/15 slightly
below the previous year// EBIT significantly increased despite the
lack of new large projects// Agenda 2020 already in implementation,
initial successes apparent// Improved earnings and dividend
distribution planned for the full 2014/15 fiscal year

quarterly report

_____________________________________________________________________
_________ |2014/15 Q1-Q3: 1 | 2013/14 Q1-Q3 | +/- %
| 2014/15 Q1-Q3 | |April-31 December | |
| | |2014______________|___________________|_______
____________|___________________| |Revenues (in |
355.0| -2 %| 349.5| |million_EUR)______|__
_________________|___________________|___________________| |EBIT (in
million | 8.6| +178 %|
23.7| |EUR)______________|___________________|___________________|___
________________| |Profit for the | |
| | |period (in million| -1.3|
-| 1.0| |EUR)______________|___________________|______
_____________|___________________|

Vienna, February 25, 2015 - Kapsch TrafficCom AG (ISIN AT000KAPSCH9),
listed in the Prime Market of the Vienna Stock Exchange, experienced
stable business developments in the first three quarters with
existing installation and operation projects. The Kapsch TrafficCom
Group was also able to obtain a number of new orders in Australia
during the third quarter, although new major orders - upon which the
innovation and growth plans are based - remained elusive due to the
lack of corresponding invitations to tender. The group-wide Agenda
2020, which lays out the organizational and strategic plans for a
future growth course, has already contributed to an EBIT improvement
during the current reporting period.

Subtitle: Financial position The revenue of the Kapsch TrafficCom
Group during the first three quarters of the 2014/15 fiscal year was
EUR 349.5 million, slightly below the previous year's value of EUR
355.0 million. In the segment Services, System Extensions, Components
Sales (SEC), the operation projects in Belarus and South Africa that
began in the previous year were instrumental in enabling an increase
of 12.1 %. In the segment Road Solution Projects (RSP), however, the
decline in revenue by 43.1 % reflects the advanced stage of the
existing large installation projects and the lack of new major
projects. For this reason, the EBIT of the segment RSP remained
negative at EUR -37.4 million, and it was not possible to cover the
expenses for development work and preparations for potential tenders.
The fact that the EBIT at the Group level nevertheless increased by
an impressive 177.5 % to EUR 23.7 million is due - in addition to the
one-time effects at mid-year - to the two additional operation
projects as well as the initial successes of the realized cost
reductions. As in the first two quarters of the fiscal year, Kapsch
TrafficCom Group was forced again in the third quarter to record an
impairment of the stake in Q-Free ASA. The total impairments in the
first three quarters of 2014/15 amounted to EUR 18.5 million. The
profit for the period, which was negative in the comparison period of
the previous year at EUR -1.3 million, only improved to EUR 1.0
million as a result. Due to this circumstance, the profit per share
remains negative at EUR -0.36. Overall, the balance sheet of the
Kapsch TrafficCom Group reflects a continual improvement in the
reporting period. The equity ratio rose from 37.6 % to 41.0 %, the
net debt has been halved since the start of the current fiscal year
and cash and cash equivalents reached EUR 94.8 million at the end of
the third quarter. The net working capital declined significantly,
and Kapsch TrafficCom Group recorded a free cash flow of EUR 59.4
million for the reporting period. These figures also reflect that
there are currently no new large installation projects to be
financed.

Subtitle: Agenda 2020 In consideration of the changed market
conditions, the Kapsch TrafficCom Group has developed an intensive,
group-wide agenda. This Agenda 2020 is intended to quickly improve
the profitability of the existing business while also laying out a
long-term growth strategy for the Kapsch TrafficCom Group. All
associated measures were identified in recent months and immediately
put into action. The key pillars consist of cost savings realized
from both material and staff costs alongside a further focusing of
the portfolio in the area of intelligent transportation systems
(ITS). The initial successes can already be seen in the EBIT for the
first three quarters.

Subtitle: Outlook Agenda 2020 will also be reflected in the results
for the full 2014/15 fiscal year. On this basis, the executive board
hopes to once again distribute dividends, in contrast to the previous
year. In the coming 2015/16 fiscal year, Agenda 2020 should enable an
EBIT margin of roughly 10 %. The Kapsch TrafficCom Group views a cost
structure corresponding to the current revenue as the basis for this
calculation, although the Group will strive for growth even beyond
this level. The next months will be characterized by the continuation
of existing projects. The Kapsch TrafficCom Group also expects a
further expansion of existing toll systems, such as those in Belarus
and Poland. In addition, several new ITS systems are approaching
their decision phases, including one large project. The company also
looks positively on the increasing attention being given to toll
systems within Europe. "Among other indications, the discussion in
Germany demonstrates the continued existence of the major trend of
financing the maintenance and expansion of infrastructure - an
important market driver," explains Georg Kapsch, CEO of Kapsch
TrafficCom AG. Kapsch TrafficCom also remains engaged in active
discussions with potential toll system customers and expects these
efforts to lead to successes as well.

Subtitle: Notification The report on the first three quarters of
fiscal year 2014/15 can be found under http://www.kapsch.net/ktc/inve
stor_relations/reports/download/Quarterly-reports/2014-15/KTC_IR_Repo
rt_FY15-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 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 systems 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:
Mag. 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:
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