Kapsch TrafficCom AG

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

  Corporate news transmitted by euro adhoc. The issuer/originator is solely
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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

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

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
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
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 
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 

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


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