init innovation in traffic systems AG

EANS-News: init innovation in traffic systems AG / Success story at init continues

- Order volume currently at around EUR 150m - Further decisions on major projects due and set to spur growth in 2012 - Karlsruhe-based telematics system specialist increased sales by around 25 per cent to EUR 80.9m in 2010 - EBIT up by around 28 per cent to EUR 15.1m, profit for first time above EUR 10m

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Subtitle: - Order volume currently at around EUR 150m - Further decisions on major projects due and set to spur growth in 2012 - Karlsruhe-based telematics system specialist increased sales by around 25 per cent to EUR 80.9m in 2010 - EBIT up by around 28 per cent to EUR 15.1m, profit for first time above EUR 10m

Karlsruhe (euro adhoc) - Karlsruhe/Frankfurt, 30 March 2011. init innovation in traffic systems AG (ISIN DE0005759807) is in a good position to continue growing. Orders on hand at the Karlsruhe-based specialist for telematic and electronic fare collection systems currently amount to around EUR 150m, as init founder and Chairman of the Managing Board, Dr Gottfried Greschner, announced at today´s press conference on the company´s financial statements in Frankfurt. "We expect further decisions on major projects within the first half of this year, so that sales and earnings at init should grow moderately in 2011 and particularly spur growth in 2012," Dr Greschner said.

Integrated telematics and fare collection systems as growth drivers

The demand for telematics, planning and fare collection systems for buses and trams, such as developed, produced and sold by init, should rise considerably in the long term, Dr Greschner said. Although the risks for the global economy had increased again over the past few weeks, the market for init´s systems was continuing to grow irrespectively. "In many countries, billions are made available to set up and develop local public transport systems. This is added by the fact that many systems in Europe, and particularly in Germany, urgently need to be modernised. This opens up additional business opportunities for init," Dr Greschner emphasised.

A further growth driver for init is the growing interest of transport companies in integrated telematics and fare collection systems. With its electronic ticket printer with on-board computer functionality, init is very well prepared here to combine both aspects.

In the preceding 2010 financial year, init once again benefitted from its position as global leader in the supply of integrated systems and was able once more to exceed its revenues and earnings targets. At EUR 80.9m (2009: EUR 65.0m), revenues at init achieved record levels for the sixth consecutive year. Growth was most significant in North America (up from EUR 17.6m to EUR 28.0m) and in its domestic market in Germany (from EUR 17.7m to EUR 30.5m). On the whole, init as a group generated foreign revenues in the amount of EUR 50.4m in 2010 (2009: EUR 47.2m), which corresponds to 62.3 per cent (2009: 72.7 per cent) of total revenues.

Equity return over 21 per cent

Despite an unfavourable environment, currency turbulences and rising raw material and energy costs, init was able in 2010 to increase its profitability at a high level. At EUR 15.1m, earnings before interest and taxes (EBIT) topped the last record in 2009 (EUR 11.8m) by 28 per cent. The same applies to the group result, which improved from EUR 8.3m in the previous year to EUR 10.0m. This corresponds to earnings per share of EUR 1.00 (2009: EUR 0.84). As a result, the return on equity stood at 21.5 per cent (2009: 21.3 per cent), the return on total investment reached 11.9 per cent (2009: 11.6 per cent).

Shareholders at init can therefore look forward to a record dividend this year. The Managing Board and the Supervisory Board intend to propose to the shareholders´ meeting held on 24 May 2011 that the dividend be doubled to EUR 0.60 (for 2009: EUR 0.30). This amount comprises an ordinary dividend of EUR 0.45 and a bonus dividend of EUR 0.15 per share to mark the 10th anniversary of init on the stock exchange in 2011.

Japan disaster without effect on init growth

Even although growth in the global market should wane in the current financial year in light of the recent events in Japan and North Africa, the Managing Board of init remains optimistic for the further development of the company. "We are not dependent on supplies from Japan and have just as few projects there as we have in North Africa. It will not therefore stunt our growth, just as we were not significantly affected by the recent global economic crisis," Dr Greschner emphasised.

Rather, the economic stimulus packages initiated to date by the governments should have an increasingly positive effect on init, as tenders for infrastructure projects put out as a result are now due for implementation. In March, init already generated a major contract, with hopes of further contracts in the second quarter of fiscal 2011, each ranging in the double-digit millions. "We believe that this will spur our growth in 2012," Dr Greschner said on the further prospects of the company.

The annual financial statements of init innovation in traffic systems AG are available on the Internet at and on the website of Deutsche Börse AG.

end of announcement                               euro adhoc


Alexandra Wirthmann
init innovation in traffic systems AG
Investor Relations
Telefon: +49(0)721 6100-102

Branche: Semiconductors & active components
ISIN: DE0005759807
WKN: 575980
Index: CDAX, Prime All Share, Technology All Share
Börsen: Frankfurt / regulated dealing/prime standard
Berlin / free trade
Hamburg / free trade
Stuttgart / free trade
Düsseldorf / free trade
Hannover / free trade
München / free trade

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