• Revenues increased by 15.3 % to EUR 526 million thanks to new projects
• Program 2020 helped raise profits disproportionately to a record level; EBIT margin rises to 11.9 %
• Highest dividend proposal since the IPO at EUR 1.50 per share
• The future will see further development of the strategy and potential new projects
   

1) Earnings per share relate to 13.0 million shares;; calculated from the profit for the period attributable to the equity holders of the company
2) Proposal of the executive board subject to approval of the annual general meeting on 7 September 2016

Vienna, June 22, 2016 – Kapsch TrafficCom AG (ISIN AT000KAPSCH9), listed on the Vienna Stock Exchange in the prime market segment, reports a very successful fiscal year 2015/16 in which the defined goal was significantly exceeded. This was due in large part to the Program 2020, which is showing effects at many levels. On the market side, the Kapsch TrafficCom Group also achieved some important successes, some of which can already be seen reflected in the revenues.

Program 2020

Under the heading of “Program 2020”, Kapsch TrafficCom implemented comprehensive measures for cost reduction and improved earnings with the project “Top Fit” in the past fiscal year 2014/15 and also adapted the strategy with respect to future developments and growth potential up to the year 2020. Already in the third quarter of the reporting year, it was apparent that the cost savings and organizational restructuring targeted with “Top Fit” could be implemented more quickly and effectively than originally expected. As a result, not only were savings of roughly EUR 30 million achieved, but the EBIT margin of 11.9 % is also significantly above the target mark of 10 % despite investments in the future.

Strategy 2020, which was presented in April 2015, includes an adaptation and extension of the business model in the direction of intelligent mobility solutions. Kapsch TrafficCom has accordingly established three strategic priorities, and made significant progress already in the fiscal year 2015/16: The “Top Fit” project has established an outstanding basis for operational excellence. The newly obtained projects strengthen and secure the core business. In addition, the rising demand for city solutions has confirmed the expansion of the offering from the highway into the city – a key aspect for the establishment of the intelligent mobility solutions (IMS) business.

Asset, financial and earnings situation

The newly won projects and project expansions made possible a revenue increase during the fiscal year 2015/16 period of 15.3 % to EUR 526.1 million. The EBIT increased disproportionately by 90.4 % from EUR 32.7 million to EUR 62.3 million, thereby achieving the highest value in the history of Kapsch TrafficCom. This growth is especially impressive since the comparison value of the previous year was significantly elevated due to one-time effects in the segment Electronic Toll Collection (ETC). The investment in the smart parking provider Streetline is also included in the current result. The enormous improvement can primarily be attributed to the successes of the project “Top Fit”. The newly launched projects and the increase in on-board unit sales also had positive effects. The EBIT margin increased as a result from 7.2 % to 11.9 %.

The profit for the period of the Kapsch TrafficCom Group increased from EUR 11.4 million in the previous year to EUR 36.5 million in the reporting year due to the improvement in the financial result. This put the earnings per share at EUR 2.39 after EUR 0.28 in the previous year. Both are absolute record values.

Continuous improvement can also be seen in the balance sheet figures. The equity ratio increased from 42.5 % to 44.9 %. Cash and cash equivalents increased to EUR 140.8 million as at the end of the fiscal year, helping to ensure that the Kapsch TrafficCom Group has no net debt but rather a net asset of EUR 33.8 million. The capital employed and the net working capital were below the levels of the previous year. The free cash flow increased from EUR 68.2 million in the previous year to EUR 90.7 million in the reporting year and demonstrates the financing potential of Kapsch TrafficCom.

Dividend

In connection with the improved profit as well as the solid asset and financial situation, the executive board will propose to the annual general meeting the disbursement of a dividend in the amount of EUR 1.50 per share for the fiscal year 2015/16 after EUR 0.50 in the previous year. This is the highest dividend yet since flotation of the shares.

Outlook

In fiscal year 2016/17, the contribution by the acquisition of the transportation business of Schneider Electric, which will be operating under Kapsch TrafficCom Transportation, to the revenue and profit of the Kapsch TrafficCom Group will be clearly visible – even after the integration costs. The implementation of the newly obtained projects will also make increasing contributions. This applies in particular to the cross-border program “CHARM” and the ETC projects in Chile and Australia. Kapsch TrafficCom also expects several decisions concerning additional projects.

One key focal area for the coming years will be the further development of the Strategy 2020. Kapsch TrafficCom will expand the portfolio with regard to intelligent mobility solutions. Systems and data will be increasingly intermeshed, and vehicles will be networked with their environment. The acquisition of the Schneider Electric transportation business also represents a large step toward the city. Kapsch TrafficCom plans to carefully integrate this area in order to contribute to the design of the smart cities of the future.

Announcement

The annual financial statements for the fiscal year 2015/16 can be downloaded at www.kapsch.net/ktc/ir/financial/ KTC_Annual_Financial_Statements_FY15-16 and the annual report for the fiscal year 2015/16 at www.kapsch.net/ ktc/ir/reports/KTC_Annual_report_2015-16.

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