EANS-News: Kapsch TrafficCom AG strengthens its earning power and strategy in the first half fiscal year

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6-month report

* Revenue up slightly, EBIT increased by 56 % despite one-time
effects in the previous year * New projects reflect the strategy *
Results demonstrate the success of cost savings * Additional orders
and tenders expected, next strategic steps planned

2015/16 H1: 1 April-30 September 2015 | 2015/16 H1 | +/- % | 2014/15 H1
______________________________________|____________|_______|___________
Revenue (in million EUR) | 245.0 | +3 % | 237.4
EBIT (in million EUR) | 27.4 | +56 % | 17.6
Profit for the period (in million EUR)| 19.2 | >500 %| 0.9

Vienna, 19 November 2015 - Kapsch TrafficCom AG (ISIN AT000KAPSCH9),
listed in the Prime Market of the Vienna Stock Exchange, achieved
both operational and strategic successes in the first half of the
fiscal year 2015/16. The Program 2020, which was initiated in the
previous year, has proven effective; the newly obtained projects
reflect the strategy, and the results of the first half year confirm
that the project "Top Fit" is also contributing to increased earning
power.

During the reporting period, Kapsch TrafficCom Group succeeded in
obtaining important new projects. Foremost among these is the award
for the cross-border tender for the "CHARM" program from the road
authorities of the Netherlands and England. Kapsch TrafficCom will
deliver and install an advanced traffic management system for both
countries that will enable the integration of existing infrastructure
as well as future applications and technologies. With this system,
the Kapsch TrafficCom Group attains a globally recognized position in
traffic management systems (TMS) just as it already has in the area
of electronic toll collection (ETC).

In Belarus, the company received the order for an expansion of the
existing nationwide toll system. In Chile, Kapsch TrafficCom obtained
multiple orders in the first half of the year, and one of the new
toll sections on the famous Panamericana will also be equipped with
an intelligent transportation system (ITS).

The demand for city solutions can be seen in the access system put
into operation in the Italian city of Prato in July as well as in the
order for a traffic management system in the Czech capital city
Prague. Both systems confirm the strategy of expanding the current
core business from highways to include cities as well.

During the first quarter of this year, Kapsch TrafficCom received its
first order for an end-to-end solution in the U.S.A. for the Ohio
River Bridges, thereby gaining recognition as a complete provider in
this market as well. This reference will open up new potential on the
U.S. market.

The existing operation projects supplied a stable revenue
contribution during the reporting period. The system in Poland,
already the largest toll system operated by Kapsch TrafficCom, will
be expanded once again. The sale of on-board units also developed
well during the first half of the year. After delays in the previous
year, a significant upward trend was apparent, and the sales figures
once again reached the high level of two years ago.

Subtitle: Assets, financial and earnings situation

The revenue of EUR 245.0 million was 3.2 % above the previous year's
value of EUR 237.4 million. The EBIT increased from EUR 17.6 million
in the comparison period of the previous year by an impressive 55.9 %
to EUR 27.4 million. This improvement is particularly pleasing since
the EBIT was very high in the previous fiscal year due to one-time
effects. In the segment Road Solution Projects (RSP), the newly
obtained projects as well as the initial successes of the project
"Top Fit" with measures for cost reduction and improved earnings
enabled a significant improvement; however, the segment EBIT was
still negative at EUR -9.2 million. In the segment Services, System
Extensions, Components Sales (SEC), the EBIT was EUR 35.6 million,
which is 11.6 % below the previous year's value. This can be
attributed to the one-time effects in the previous year and the costs
of the company Streetline acquired in April which are contained in
this segment. The EBIT margin of the Kapsch TrafficCom Group reached
11.2 %, which is within the scope of the targeted profitability.

The profit for the period also increased significantly from EUR 0.9
million in the comparison period of the previous year to EUR 19.2
million. The profit per share, which represents the profit share of
the shareholders, improved from EUR -0.27 to EUR 1.28.

The balance sheet figures show the potential of the Kapsch TrafficCom
Group for future projects and endeavors. The equity ratio rose to
44.4 %, the net debt was reduced to its lowest level since 2012/13,
amounting to EUR -19.1 million after EUR -75.9 million on the key
date of the previous year, 30 September 2014. Cash and cash
equivalents increased to EUR 102.3 million, and the free cash flow in
the first half of the year was EUR 30.3 million, after EUR 25.5
million in the same period of the previous year.

Subtitle: Program 2020 and strategy

The Program 2020, which was initiated in the previous year, comprises
important steps for strengthening the earning power and enabling
future growth in the form of the "Top Fit" project and the adaptation
of the strategy. The strategy presented in April of this year
initially sets three priorities: The first is operational excellence,
the second is the strengthening and securing of the core business and
the third is the establishment of an intelligent mobility solutions
(IMS) business.

In terms of both projects and results, the developments in the first
half of the 2015/16 fiscal year confirm that Kapsch TrafficCom is on
the right path. In addition, the executive board of Kapsch TrafficCom
AG has been reinforced since November 2015 by Dr.-Ing. Alexander
Lewald as Chief Technology Officer (CTO). He brings with him
considerable technical expertise, including in the IMS area.

Subtitle: Outlook

In the second half of the current fiscal year, the Kapsch TrafficCom
Group will pursue the concerted development of existing and newly
acquired projects. The system expansions in Belarus and Poland will
make an important contribution to revenue and profit. In addition,
the company expects additional invitations to tender and decisions on
the awarding of orders. An emphasis will be placed on the continued
implementation of the strategy, with associated organizational
adjustments and specific next steps. The cost savings of the project
"Top Fit" will be fully apparent by the end of the fiscal year.

On the basis of the promising results for the first half of the year,
the management anticipates that the Kapsch TrafficCom Group will
achieve an EBIT margin of 10 % in the core business, as expected,
assuming a stable revenue level over the current fiscal year. This
allows sufficient leeway for additional investments in the future,
such as the development of the smart parking business with
Streetline.

Subtitle: Announcement

The report on the first half of the 2015/16 fiscal year can be
downloaded from http://www.kapsch.net/ktc/investor_relations/reports/
download/Quarterly-reports/ 2015-16/KTC_IR_Report_FY16-H1?lang=en-US.

Kapsch TrafficCom is a provider of intelligent transportation systems
(ITS) in the segments of toll collection, city access control and
parking space management, traffic management, traffic monitoring,
utility vehicle monitoring, electronic vehicle registration and V2X
cooperative systems. The end-to-end solutions of Kapsch TrafficCom
cover the entire value creation chain of its customers, from
components and design to the installation and operation of systems,
all from a single source. The core business comprises the
development, installation and operation of electronic toll collection
and traffic management systems.

Reference projects in 44 countries on all continents have made Kapsch
TrafficCom a globally recognized ITS provider. As part of the Kapsch
Group, an Austrian family-owned technology group founded in 1892,
Kapsch TrafficCom is headquartered in Vienna, Austria, and has
subsidiaries and branches in 33 countries. It has also been listed
since 2007 on the Vienna Stock Exchange (KTCG) and earned revenues of
EUR 456 million in the 2014/15 fiscal year with over 3,500 employees.

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

Follow us on Twitter at twitter.com/kapschnet.

Further inquiry note:
Press contact:
Dr. Ingrid Lawicka
Spokesperson
Kapsch AG
Am Europlatz 2, 1120 Vienna, Austria
Tel.: +43 50 811 1705
E-mail: ingrid.lawicka@kapsch.net

Investor contact:
Marcus Handl
Investor Relations Officer
Kapsch TrafficCom AG
Am Europlatz 2, 1120 Vienna, Austria
Tel.: +43 50 811 1120
E-mail: ir.kapschtraffic@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