Kapsch
Press releases

Expansion phase 1 of the major project in Belarus concluded Increased revenue thanks to project progress and operation of the toll system in Poland EBIT returns to positive territory despite strains Fiscal year 2013/14 marked by implementation projects and project decisions 2013/14 Q1: 1 April – 30 June 2013 2013/14 Q1 +/- % 2012/13 Q1 Revenues (in EUR million) 121.4 +14 % 106.4 EBIT (in EUR million)     3.7 -    -5.2 Profit for the period (in EUR million)    -1.0 +77 %    -4.3 Earnings per share (in EUR)      -0.23 +50 %      -0.45 Vienna, August 19, 2013 – Kapsch TrafficCom AG (ISIN AT000KAPSCH9), listed in the Prime Market of the Vienna Stock Exchange, achieved significant progress on its existing projects in the first quarter of the fiscal year 2013/14. Expansion phase 1 of the nationwide electronic toll collection system in Belarus was completed and went into operation after the balance sheet date. While the toll system in Poland made a significant contribution to the revenue and earnings of the Kapsch TrafficCom Group during the reporting period, the completed system in the South African province of Gauteng still did not go into operation. The revenue and earnings of the Kapsch TrafficCom Group improved significantly compared to the same period of the previous year. “The quarterly result is not exceptional, and it still leaves us far from our target EBIT margin. It does, however, demonstrate the progress in our existing installation and operation projects. It also shows that the media reports in July regarding our project in South Africa were overblown,” summarizes Georg Kapsch, CEO of Kapsch TrafficCom AG. The commissioning of the toll system in South Africa has been postponed several times over a long period. Since the end of 2012, the conditions have been established; as before, it remains only for the corresponding law to be signed by the President of South Africa and for the starting date to be announced. The installation of the system has been largely paid for, and the customer is reimbursing the costs for maintaining the operational readiness. Due to the lack of operation revenue as well as additional costs, however, this project is currently a significant drain on the earnings of Kapsch TrafficCom. In Belarus, Kapsch TrafficCom completed the first phase of the order for installation and operation of the nationwide electronic toll collection system in the quarter under report; the technical operation began on July 1st, followed by commercial operation on August 1st. A fluid transition to expansion phase 2 occurred at the same time. Each individual phase of this major project is being prefinanced by Kapsch TrafficCom, with full payment to be received within three years of the start of operations. Kapsch TrafficCom achieved yet another success in North America. After our contract with the E-ZPass Group, which operates the world’s largest interoperable toll system in 14 US states, was extended in July 2011, the company received in June 2013 a new five-year order from the Canadian toll authority Cantoll to deliver the next generation of on-board units for the Toronto metropolitan region. This should secure the high volume of on-board units in North America for the coming years. In Chile, Kapsch TrafficCom received an order for a traffic management system. This shows – if only on a small scale – the increasing importance of intelligent transportation systems (ITS), an area in which Kapsch TrafficCom has devoted increased attention for some time. Revenue and earnings. The revenue of the Kapsch TrafficCom Group reached EUR 121.4 million in the first quarter, which is 14.1 % above the previous year’s comparison value of EUR 106.4 million. The EBIT, which was negative in the first quarter of the previous year at EUR -5.2 million was EUR 3.7 million in the reporting period. The company therefore achieved a significant improvement in earnings over the previous year – even despite the burden of the continued delay in commissioning of the system in South Africa. The segment RSP (Road Solution Projects) recorded revenues of EUR 36.5 million after EUR 34.9 million in the same period of the previous fiscal year, an increase of 4.7 %. The greatest contribution was supplied by the installation project in Belarus, which is also reflected in the improved operating result. Additional revenue contributions were made by the projects in Texas, USA, and Sydney, Australia. The EBIT in the first quarter reached EUR -1.6 million after EUR -7.2 million in the previous year, whereby the expenditures attributed to this segment could not be entirely covered. In the segment SEC (Services, System Extensions and Components Sales), revenues increased by 19.3 % from EUR 67.7 million in the previous fiscal year to EUR 80.8 million in the first quarter of 2013/14. This increase was driven primarily by the operation and further expansion of the Polish system. The number of on-board units sold also increased in the quarter under report. On this basis, the EBIT reached EUR 5.1 million after EUR 1.9 million in the previous year, despite the drain on earnings due to the project in South Africa. The profit before taxes and the profit for the period are still negative. This results from the decline in the financial result to EUR -5.3 million due to exchange rate fluctuations concerning the conversion of group-internal receivables with a negative impact as at the key date. Financial position and cash flows. The balance sheet of the Kapsch TrafficCom Group at the end of the first quarter of 2013/14 reflected the progress and the prefinancing of the project in Belarus: Both receivables and financial liabilities increased relative to the balance sheet date of 31 March 2013, as did the net working capital. The free cash flow is again negative at EUR -37.2 million, in contrast to the previous quarters. With the conclusion of the first expansion phase, payment by the customer has now begun. Outlook. The next quarters will be characterized by the continuation of existing orders. The next expansion phase in Belarus should go into operation toward the end of the fiscal year in spring 2014. Then phase 3 begins, which entails a further expansion of the system by 1,500 km. The implementation of the ongoing projects in France, Australia and Texas should be largely completed by the end of the fiscal year. Kapsch TrafficCom looks forward with great interest to the coming developments in South Africa as well as Slovenia, where the tender for a toll system was recently canceled. Further invitations to tender are also expected. In parallel to this, the company is also actively contacting possible interested parties for toll systems, an approach that already proved successful in Belarus. The management can report great interest in other countries as well. With its ITS strategy and the new company structure, the Kapsch TrafficCom Group considers itself well-positioned for all growth opportunities. The report on the first quarter of fiscal year 2013/14: English , German

The company has passed through a transition period on the way to new projects and structures Revenue and earnings are below expectations, but the balance sheet demonstrates financial potential Proposed dividend of EUR 0.40 corresponds to a 54% payout ratio Strategy and organizational structure are aligned with further growth on the ITS market 1 April – 31 March 2012/13 +/- % 2011/12 Revenues (in million EUR) 488.9 -11% 549.9 EBIT (in million EUR)    15.3 -64%   42.2 Profit for the period (in million EUR)    16.7 -39%   27.5 Earnings per share (in EUR) 1        0.74 -54%       1.62 Dividend per share (in EUR)          0.40 2 -56%       0.90 *1  Earnings per share 2012/13 relate to 13.0 million shares, 2011/12 relate to a weighted average number of 12.74 million shares *2  Proposal of the executive board subject to approval of the shareholders´ meeting on 12 September 2013 Vienna, June 11, 2013 – Kapsch TrafficCom AG (ISIN AT000KAPSCH9), listed on the Vienna Stock Exchange in the prime market segment, is reporting on its fiscal year 2012/13 as a transition period in terms of projects and the company’s organizational structure, which was retooled during the reporting period for the planned continuation of growth. The Kapsch TrafficCom Group made significant progress during the past fiscal year, although the investments in the future as well as project delays led to lower revenues with simultaneously high expenditures. The earnings figures of the reporting year therefore lie clearly below the targets of the executive board. Revenue and earnings. The revenue in the fiscal year 2012/13 was EUR 488.9 million, which is 11.1 % below the previous year’s value of EUR 549.9 million. This decline reflects, on one hand, the fact that the major installation projects in Poland and South Africa were already completed but the new projects were of smaller overall volume and only began contributing revenue as of the second half of the year. On the other hand, the operation revenues in Poland and South Africa were still significantly below expectations since the completed system in South Africa did not go into operation by the end of the fiscal year and the revenues earned in Poland reached the expected levels only as of the third quarter. The number of on-board units sold also remained below that of the previous year since no initial deliveries or subsequent deliveries for new systems took place. These circumstances also led to an operating result (EBIT) that was negative in the first two quarters. In the third quarter, the continued delays in the South African project forced Kapsch TrafficCom to update the contract calculation. This resulted again in negative operational earnings. Only in the fourth quarter did the improved system operation in Poland together with progress in the project in Belarus enable a significant increase in revenue, making the quarterly earnings more than satisfactory at EUR 24.9 million. For the entire year, the EBIT was EUR 15.3 million, following EUR 42.2 million in the previous year. This puts the EBIT margin at 3.1 %, considerably below the previous year’s value of 7.7 %. The reporting year was also characterized by preparations for new projects, in other words by already recorded expenditures that were not yet offset by corresponding revenue or income. The implementation of the new organizational structure also required initial investments. The lower revenues made cost coverage more difficult here. The profit before taxes decreased from EUR 36.3 million in the previous year to EUR 16.9 million. Lower tax expenses and increased finance income were able to partially compensate for the decline in the operating result (EBIT). The profit for the period declined from EUR 27.5 million to EUR 16.7 million, putting the profit per share at EUR 0.74 compared with EUR 1.62 in the year before. The executive board will recommend to the annual shareholders' meeting on 12 September 2013, the payment of a dividend of EUR 0.40 per share (2011/12: EUR 0.90 per share) for the fiscal year 2012/13. The payout ratio (with respect to the profit for the period attributable to the equity holders of the company) is therefore roughly 54 % (2011/12: roughly 57 %). Segments. The segment RSP (Road Solution Projects) recorded revenues of EUR 128.3 million after EUR 229.9 million in the previous fiscal year, a decrease of 44.2 %. The projects begun in Belarus, France, Australia and the U.S.A. as well as the extensions to the system in Poland were not able to compensate for the revenue decline in connection with the complete or largely concluded system implementations in Poland and South Africa. The EBIT of the segment RSP was EUR -51.7 after EUR 4.1 million in the previous year. Due to the decreased revenues, it was not possible to cover the regular costs associated with this segment. The project in South Africa also further weighed down the result. In the segment SEC (Services, System Extensions and Components Sales), revenues increased by 11.1 % from EUR 308.1 million in the previous year to EUR 342.3 million. A significant revenue contribution was supplied by the project in Poland, which went into operation in July 2011 and therefore only contributed income for nine months. The operation of the nationwide systems in the Czech Republic, Austria and Switzerland continued to yield stable revenue contributions. On the other hand, the continued delay in the commissioning of the project in the South African province of Gauteng had a negative impact. The number of on-board units sold was 9.3 million compared with 11.2 million units in fiscal year 2011/12. The lower volume in the fiscal year just finished was related to the absence of additional deliveries for the project in Gauteng, South Africa. The EBIT of the segment SEC was EUR 66.1 million after EUR 37.3 million in the previous year. The EBIT margin therefore increased from 12.1 % to 19.3 %. Financial position and cash flows. The balance sheet of the Kapsch TrafficCom Group paints an extremely solid picture. The conclusion of the system implementation in Poland and the associated payment of the last milestone from construction of the system in the first quarter of the reporting year led to noticeable improvements compared with the balance sheet date of 31 March 2012. Despite the weak profit situation, the equity ratio was 42.4 % at the end of the fiscal year 2012/13. The net debt on 31 March 2013 was 46 % below the previous year’s value despite financing of the Belarus project. The net working capital and the capital employed are also far below the level of the previous year despite the rise in the fourth quarter. The cash and cash equivalents increased over the fiscal year from EUR 44.9 million to EUR 79.0 million. The free cash flow, which was negative in the comparison period, amounted to EUR 48.3 million at the end of the reporting year. This confirms that Kapsch TrafficCom has the necessary financial potential for the planned growth. Strategy. In 2012, the Kapsch TrafficCom Group defined its company strategy up to the year 2016 as well as four specific strategy paths. Since October 2012 the entire group now shares a globally standard organizational structure with coordinated standards, processes and interfaces. This should increase efficiency and support further growth. Additional growth prospects also lie in the development of complete ITS (Intelligent Transportation Systems) solutions. “We will continue our investments in the future despite the weak results of the fiscal year 2012/13. Making cuts due to the current situation would mean not having the necessary structures and capacities for the projects that are expected in the future,” says Georg Kapsch, CEO of Kapsch TrafficCom AG, in confirmation of the growth strategy. Outlook. Kapsch TrafficCom considers itself well positioned with its ITS strategy and the new company structure. The strong balance sheet structure shows that the group also has sufficient financial potential for upcoming projects both small and large – even running in parallel. The fiscal year 2013/14 will be marked by a continuation of the existing projects. In particular, the further developments in South Africa will influence the revenue and earnings situation. In addition, an invitation to tender has already begun in Slovenia. Kapsch TrafficCom expects additional tenders in Belgium and the U.S.A. Extensive toll systems are under discussion in Bulgaria, Russia and the surrounding countries as well as in Germany, and these discussions are also being followed with great interest. An overview of the fiscal year 2012/13 (key aspects and figures) can be found at www.kapsch.net/ktc/ir/downloadcenter

Revenue decline by 24% in the first three quarters of 2012/13; new projects contributing little so far Updated calculation for the order in South Africa results in negative earnings Balance sheet figures show the strong foundation of the company group Investment strategy will be continued in the future 2012/13 Q1-Q3: 1 April – 31 December 2012 2012/13 Q1-Q3 +/- % 2011/12 Q1-Q3 Revenues (in EUR million) 310.9 -24% 408.2 EBIT (in EUR million)    -9.6 -   37.4 Profit for the period (in EUR million)    -5.8 -   24.7 Earnings per share (in EUR)      -1.09 -        1.40 Vienna, February 27, 2013 – Kapsch TrafficCom AG (ISIN AT000KAPSCH9), listed on the Vienna Stock Exchange in the prime market segment, reports on three challenging quarters of the current 2012/13 fiscal year. The new projects that the group succeeded in obtaining in the past months have hardly yet contributed to revenues or earnings. At the same time, the delays in existing major projects in Poland and South Africa led to significantly lower revenues than expected. The updated calculation for the order in South Africa further indicated a decline in the expected project revenues by roughly 10%, which, together with the additional costs and standby costs, negatively impacted the project’s earnings contribution in the third quarter. The overall profitability of the project is also lower than expected as a result. The legal action in South Africa, which was not directed against Kapsch TrafficCom but has delayed the commissioning of the toll collection system in the Gauteng province, has now been dismissed. The company hopes that the system can be put into operation at the start of the coming fiscal year – following announcement of the starting date by the government, which had been expected by now. In the operation project in Poland, Kapsch TrafficCom was able to clarify key open issues regarding the system operation during the third quarter. This can also be seen in the significant improvement of the margin in the segment Services, System Extensions, Components Sales (SEC). “The earnings situation is currently not satisfactory. However, our fundamental business continues to operate solidly, and we see enormous growth potential in our markets. In the previous year, we restructured our organization in line with this growth, which has not yet been realized. We have decided to continue with our previous course in order to participate in the expected future projects, some of them quite large. Naturally, we will at the same time strive to take advantage of potential cost reductions and analyze where we can streamline or suspend investments,” explains Georg Kapsch, CEO of Kapsch TrafficCom AG. Revenue and earnings. In the first three quarters of 2012/13, the Kapsch TrafficCom Group achieved revenues of EUR 310.9 million – a decline of 24% compared to the outstanding equivalent period in the previous year. The EBIT was negative at EUR -9.6 million, weighed down primarily by the South African project. The segment RSP (Road Solution Projects) recorded revenues of EUR 64.0 million after EUR 181.0 million in the same period of the previous fiscal year, a decrease of 64.6%. While the two implementation projects in Poland and South Africa are reflected in the previous year’s figures, the projects begun in Belarus, France, Australia and the U.S.A. have not yet delivered comparable revenue contributions. This situation contributed to the inability to cover the costs assigned to this segment. Moreover, the implementation project for the electronic toll collection system in the South African province of Gauteng weighed down the results due to the delay, the revenue up to commissioning that was lower than originally expected and the additional costs and standby costs incurred. The segment EBIT for the first three quarters of 2012/13 was therefore EUR -30.1 million after EUR 2.0 million in the same period of the previous year. In the segment SEC (Services, System Extensions and Components Sales), revenues increased by 6.3% from EUR 220.3 million to EUR 234.3 million. While the operation project in Poland delivered a significant revenue contribution, the delay in commissioning of the South African project had a dampening effect here as well. The delay also meant the absence of the expected deliveries of on-board units. The number of on-board units sold amounted to 6.7 million after 8.0 million in the previous year. The segment EBIT was EUR 20.1 after EUR 34.9 million in the same period of the previous year. Financial position and cash flows. Despite the disappointing earnings situation, the strength of the Kapsch TrafficCom Group can be seen in the solid balance sheet structure. The equity ratio increased to 47.7% as at 31 December 2012. On the balance sheet date, the company had no net debts, rather net assets in the amount of EUR 1.0 million. The cash and cash equivalents amounted to an impressive EUR 83.7 million. The net working capital and capital employed were back to significantly below the comparison values of the previous year. Not least, the free cash flow increased to EUR 89.7 million. Kapsch TrafficCom therefore enjoys a solid foundation, including for future projects. Outlook. The negative influence of the South African project will still weigh down the annual results for 2012/13, bringing them considerably lower than previous expectations. In view of the progress that has been made in the existing projects and the expected tenders and additional projects, the executive board of the Kapsch TrafficCom Group is holding firm to the growth-oriented strategy and looks forward optimistically to the future. The report on the first three quarters of fiscal year 2012/13: English , German

Revenues and earnings disappointing in first half of 2012/13 owing to delays with major projects Projects recently won will only be reflected in figures in second half-year Balance sheet figures reveal strong financial base after project completion in Poland Reorientation of Kapsch TrafficCom Group for growth in ITS market completed 2012/13 H1: 1 April – 30 September 2012 2012/13 H1 +/- % 2011/12 H1 Revenues (in EUR million) 203.4 -27% 278.8 EBIT (in EUR million)    -6.2 -   40.1 Profit for the period (in EUR million)    -7.0 -   22.4 Earnings per share (in EUR)     -0.85 -        1.36 Vienna, 22 November 2012 – Kapsch TrafficCom AG (ISIN AT000KAPSCH9) listed on the Prime Market of the Vienna Stock Exchange has reported on a complex first half-year in 2012/13. Delays in implementing and rolling out large projects had a negative impact on revenues and earnings, while the main balance sheet figures since the first quarter again demonstrate the solid financial foundations underpinning the activities of the Kapsch TrafficCom Group. Moreover, Kapsch TrafficCom managed to win some significant new contracts in the reporting period. Revenues of the Kapsch TrafficCom Group came in at EUR 203.4 million, 27.1% below the corresponding figure in the previous year of EUR 278.8 million. The previous year was marked by outstanding revenues following the implementation of major projects, but the implementation projects recently won have yet to be reflected in the figures for the reporting period. The projects in South Africa and Poland have not yet generated the expected levels of operation revenue, while the sale of on-board units only registered the expected growth in the second quarter. The lower revenues made it more difficult to cover costs completely. Coming in at EUR -6.2 million, EBIT was negative in the first half of 2012/13 following EUR 40.1 million in the same period in the previous year, though a substantial improvement was achieved from the first to the second quarter based on the higher volume of sold on-board units and the greater contribution made by the operation project in Poland. The nationwide electronic toll collection system in Poland has been in operation for more than a year, and extensions have already been ordered. However, the revenues for Kapsch TrafficCom have fallen short of expectations. In South Africa the launch of the electronic toll collection system for multi-lane free-flow traffic in the province of Gauteng was delayed shortly before its roll-out at the end of April due to a legal action filed against the road operator; consequently there is no operation revenue to offset costs for the time being. At the end of October a decision was made to continue the system roll-out process, and Kapsch TrafficCom is optimistic about the latest developments in this project. Kapsch TrafficCom enjoyed some strategic successes in the second quarter on the U.S. market: at the end of July and for the first time in this region the company was chosen to supply an entire system in Texas, comprising a toll collection system, an intelligent transportation system and a network communications system. Just one month later, Kapsch TrafficCom was awarded another contract, this time for an incident detection system in a tunnel in Houston. In Brazil – one of the fastest growing markets in the ITS industry – Kapsch TrafficCom won its first contract for the delivery of on-board units. And at the end of August the company won another contract for a toll collection system in Sydney, Australia. The contracts won in recent months have demonstrated the growing convergence of the market for intelligent transportation systems (ITS). The Executive Board sees this as confirmation of the recently adopted strategy and the new corporate structure implemented from early October. This enables greater importance to be attached to select ITS applications, over and above toll collection. The Kapsch TrafficCom Group now has a globally uniform organizational structure with coordinated standards, processes and interfaces. This will underpin the continuation of growth. Revenues and earnings. Both of the implementation projects in the segment Road Solution Projects (RSP) in Poland and South Africa were associated with high revenues in the first six months of the previous fiscal year. The newly launched projects were unable to compensate for this in the reporting period, and so revenues posted a decline of 59.2% from EUR 122.9 million to EUR 50.2 million. This was insufficient to provide full coverage for costs, and therefore EBIT in the segment RSP came in at EUR -15.7 million. In the segment Services, System Extensions, Components Sales (SEC), revenues dropped by 5.6% from EUR 153.2 million in the previous year to EUR 144.7 million. The operation project in Poland made a significant contribution to revenues. However, the suspension of the project launch in South Africa and the – now completed – contract negotiations with individual agencies of the E-ZPass Group meant that the volume of sold on-board units fell short of expectations in the reporting period. The number of sold units in the first six months of fiscal 2012/13 was 4.0 million, compared to 5.7 million in the previous year. The competitive pricing for this contract, which has now resulted in common global margins in the U.S.A. as well, also had an impact on earnings. The decline in EBIT from EUR 32.4 million in the previous year to EUR 9.1 million mainly reflects the reduced sales of on-board units and the low or even absent contributions from the projects in Poland and in South Africa. Financial position and cash flows. The main balance sheet figures were significantly improved in the first half of the 2012/13 fiscal year by the completion of the implementation project in Poland and the associated payment. Total assets fell from EUR 557.7 million to EUR 481.5 million compared to the reporting date of 31 March 2012. This was caused by the reduction of trade receivables under assets, while on the equity and liabilities side of the balance sheet, mainly through the decline in current financial liabilities. Equity capital dropped to almost the same extent, thus bumping the equity capital ratio up marginally from 45.9% to 46.2%. These developments triggered an increase in the free cash flow compared to the first half-year of fiscal 2011/12, from EUR -44.9 million to EUR 78.7 million. At EUR 16.3 million, net debt remains at a very low level, while net current assets and capital employed were lowered substantially. Cash and cash equivalents at the end of the half-year amounted to EUR 67.7 million. These significant changes demonstrate that Kapsch TrafficCom has a solid balance sheet structure – also in view of future projects. Outlook. The current order book and the successes achieved will also be reflected in the earnings of the Kapsch TrafficCom Group in the second half of 2012/13. The major project in Belarus was launched in September as planned. In addition to this, the coming months will be marked by further developments in South Africa and by participation in tenders. Kapsch TrafficCom is currently working on a bid for a toll collection system tender in Hungary. The report on the first half of fiscal year 2012/13: English , German

Decline in sales and negative result Balance sheet figures improved significantly due to project completion Focus remains on large projects in Poland and South Africa Growth strategy confirmed by new orders 2012/13 Q1: 1 April – 30 June 2012 2012/13 Q1 2011/12 Q1 2010/11 Q1 Revenues (in million EUR) 106.4 134.7 66.3 EBIT (in million EUR)    -5.6   22.2  4.8 Profit for the period (in million EUR)    -4.4   13.9  4.5 Profit per share (in EUR)      -0.46       0.91    0.22 Free cash flow (in million EUR)   74.6    -9.0  3.2 Vienna, August 24, 2012 – Kapsch TrafficCom AG (ISIN AT000KAPSCH9), listed in the Prime Market of the Vienna Stock Exchange, experienced a heterogeneous first quarter in fiscal year 2012/13. While the developments in the two ongoing projects in Poland and South Africa led to disappointing revenues and results during the reporting period, the significant improvement in the key balance sheet figures reconfirmed the financial strength of the Kapsch TrafficCom Group. The revenues of the Kapsch TrafficCom Group amounted to EUR 106.4 million, or 21.1 % below the value of the same period in the previous year (2011/12 Q1: EUR 134.7 million). The EBIT in the first quarter of 2012/13 was negative at EUR -5.6 million, down from EUR 22.2 million in the first quarter of 2011/12. In South Africa, the start of the electronic toll collection system for multi-lane free-flow traffic in the Gauteng province was suspended indefinitely shortly before the planned commissioning at the end of April due to a lawsuit. The government has appealed this decision, and the first hearings were held on 15 August 2012. The nationwide electronic toll collection system in Poland went into operation in July 2011, and the system acceptance took place on 21 February 2012. In the first quarter of the current fiscal year, Kapsch TrafficCom was contracted with an extension of 320 km, and additional route sections are expected to follow in 2013. The company also received payment for the final milestone of the system installation. However, performance related issues resulted in higher operating costs during the reporting period, which had a negative impact on the result. The developments of both of these major projects had a pronounced effect on the first quarter of 2012/13. At the same time, the changes to the key figures reflect the project-related volatility in the balance sheet and results. Comparisons between individual quarters are therefore of only limited value, and the company itself evaluates its success based on the year-end result. Revenues and earnings. In the segment Road Solution Projects (RSP), the two implementation projects in Poland and South Africa were associated with high revenues in the first quarter of the previous year. The newly begun projects were unable to compensate for this during the reporting period, and revenues declined as a result by 36.3 % from EUR 54.8 million to EUR 34.9 million. In consequence, the company was not able to fully cover its costs, and the EBIT in the segment RSP was therefore negative at EUR -7.2 million. In the segment Services, System Extensions, Components Sales (SEC), revenues declined by 13.8 %, from EUR 78.5 million in the same quarter of the previous year to EUR 67.7 million. The contract negotiations with the individual authorities of the E-ZPass Group for finalization of the ten-year agreement resulted in on-board unit sales lagging behind the expected quantities. The competitive pricing, which brought the margins in the U.S.A. down in line with typical global margins, for this order also weighed on the result. The volume of delivered on-board units in the first quarter of 2012/13 was 1.7 million, following 2.8 million in the same period of the previous year. The suspended commissioning of the project in South Africa also negatively impacted revenues. The operation project in Poland, on the other hand, made a considerable revenue contribution. The decline of the segment EBIT from EUR 18.5 million in the previous year to EUR 1.6 million can be attributed largely to the reduced sale of on-board units, the lost revenues from the South African project and the performance related higher operation costs in Poland. Financial position and cash flows. The key balance sheet figures improved significantly in the first quarter of fiscal year 2012/13 owing to conclusion of the implementation project in Poland and the associated payment. The total assets declined due to the reduction of trade receivables as well as, in particular, due to the decrease in current financial liabilities with respect to the year-end closing date of 31 March 2012, falling from EUR 557.7 million to EUR 499.0 million. Total equity declined only slightly, producing an increase in the equity ratio from 45.9 % to 49.6 %. The free cash flow grew to EUR 74.6 million as a result of these developments, whereas this figure was negative at EUR -9.0 million in the comparison quarter of the previous year. Despite the corporate bond due in 2017, the Kapsch TrafficCom Group had net assets of EUR 0.2 million at the end of the first quarter, while the net working capital decreased from EUR 285.7 million as of 31 March 2012 to EUR 199.1 million on 30 June 2012. Cash and cash equivalents at the end of the quarter had increased to EUR 77.4 million. These significant changes demonstrate that Kapsch TrafficCom enjoys a solid balance sheet structure that will enable the company to maintain its focus on investments in research and development as well as new projects despite a short-term dip in profit. Outlook. At the end of July, Kapsch TrafficCom was selected as supplier for a complete system in Texas. In the coming years, two highways in northern Texas will see implementation of what is called a "managed lane" system, which encompasses a toll collection system, an intelligent transportation system and a network communication system. It will be one of the newest and most modern transportation systems in North America. The executive board views this as a reinforcement of the growth strategy as well as confirmation of the assumption that, in addition to toll collection systems, demand for integrated systems consisting of various ITS applications will increase in the future. As part of a large project in Belarus, the installation of a nationwide electronic toll collection system will begin in autumn, and associated revenues will be reflected on the balance sheet as of the second half of the current fiscal year. In addition, the company expects decisions on other potential projects during the course of the current fiscal year. In order to continue the planned growth with regard to new projects and new markets, the Kapsch TrafficCom Group is also working intensively on implementation of the 2016 strategy and the new company structure this entails. The report on the first quarter of the fiscal year 2012/13: English , German