Press releases

Kapsch TrafficCom und sein Partner EVOCON erhielten bei einer Ausschreibung den Zuschlag für die Lieferung der Komplettlösung für urbanes Mobilitätsmanagement.

Das dritte Quartal 2018/19 war für Kapsch TrafficCom sehr erfolgreich. Wir erzielten den höchsten Quartalsumsatz in der Konzerngeschichte.

Highlights. “After disappointing first three months we managed to achieve a significant improvement in the second quarter of the current fiscal year. That we are heading in the right direction is also demonstrated by the various new orders that we have announced in the last few weeks. And we are working hard to report further major successes by the end of the fiscal year“, says Georg Kapsch, CEO of Kapsch TrafficCom. Unless otherwise stated, all values in EUR million Q2 2017/18 Q2 2018/19 +/- H1 2017/18 H1 2018/19 +/- Revenues 175.6 177.6   +1.2% 339.8 335.8   -1.2% EBIT   13.5   10.7 -21.1%   25.3   17.8 -29.5%     EBIT margin        7.7%        6.0%     -1.7%p        7.4%        5.3%     -2.1%p Profit for the period    7.5    5.9 -21.0%   14.1     8.4 -40.4% Earnings per share (EUR)       0.58       0.49 -15.7%       1.10       0.70 -36.8% Vienna, November 21, 2018  – In the first half of the current fiscal year, Kapsch TrafficCom’s revenues reached EUR 335.8 million, an amount slightly (-1.2%) below the previous year’s level. The EBIT amounted to EUR 17.8 million (-29.5%) and the EBIT margin decreased from 7.4% to 5.3%. Like the first quarter as a whole, the beginning of the second quarter was still influenced by deferments within existing implementation projects (ETC segment). After a traditionally calm August, a good September helped us achieve quarterly revenues 12.3% above the figure for the first three months of the fiscal year and at the level of the comparable quarter of the previous year. The result from operating activities (EBIT) rose sequentially by 50.3%, but was EUR 2.9 million lower than in the second quarter 2017/18. The financial result in the first half of 2018/19 remained stable compared with the same period of the previous year. Tax expenses fell to EUR 3.6 million (previous year: EUR 4.7 million) due to the lower pre-tax earnings. In the first half of 2018/19, the profit for the period amounted to EUR 8.4 million (previous year: EUR 14.1 million), which corresponds to earnings per share of EUR 0.70 (previous year: EUR 1.10). The free cash flow of EUR -16.9 million (previous year: EUR -1.0 million) reflected the weaker operating results and the more than double increase in working capital. As a consequence of this and due to the dividend distribution of EUR 19.5 million, net debt rose to EUR 31.7 million (March 31, 2018: net cash of EUR 16.2 million). This corresponds to a gearing ratio of 14.4%. The equity ratio remained strong at 35.9% (March 31, 2018: 37.0%). The balance sheet total amounted to EUR 614.6 million (March 31, 2018: EUR 621.1 million). Segment results. In the first half of 2018/19, 78.1% of the revenues were attributed to the ETC segment and 21.9% to the IMS segment. ETC (Electronic toll collection). Unless otherwise stated, all values in EUR million Q2 2017/18 Q2 2018/19 +/- H1 2017/18 H1 2018/19 +/- Revenues 137.4 142.6 +3.8% 260.7 262.1   +0.5% EBIT   17.4   17.8 +2.2%   32.1   24.8 -22.7%     EBIT margin      12.7%      12.5%    -0.2%p      12.3%        9.5%     -2.8%p In the second quarter 2018/19, Kapsch TrafficCom succeeded in increasing ETC-revenues by 19.2% compared with the first three months to EUR 142.6 million. The EBIT margin reached 12.5% and was at previous year’s level. In the first half of the year, ETC revenues rose by 0.5% to EUR 262.1 million. Kapsch TrafficCom managed to offset an 9.0% decline in revenues in the EMEA region by a rise in revenues in the Americas (+17.7%) and APAC (+44.0%). Primarily as a consequence of the relatively weak results of the first quarter, the ETC-EBIT of EUR 24.8 million was 22.7% lower than in the previous year. In the first half of 2018/19, Kapsch TrafficCom sold 6.77 million on-board units (previous year: 5.85 million). IMS (Intelligent mobility solutions). Unless otherwise stated, all values in EUR million Q2 2017/18 Q2 2018/19 +/- H1 2017/18 H! 2018/19 +/- Revenues 38.2 35.0   -8.2% 79.1 73.7 -6.8% EBIT  -3.9  -7.1 -83.0%  -6.8  -7.0 -2.8%     EBIT margin   -10.2%   -20.4%   -10.2%p     -8.6%     -9.5%   -0.9%p In the second quarter 2018/19, IMS-revenues fell to EUR 35.0 million (-9.3% compared to the first three months). After a slightly positive EBIT in the first quarter (EUR 0.1 million), the company had to accept an operating loss of EUR 7.1 million in this segment in the second quarter. The segment’s revenues for the first half of 2018/19 amounted to EUR 73.7 million (-6.8%). Decreases in revenues were recorded in all regions. While operations revenues increased by 0.4% the implementation revenues fell by 14.9%. IMS-EBIT in the first half of 2018/19 amounted to EUR -7.0 million (previous year: EUR -6.8 million). The investment in Intelligent Mobility Solutions Ltd. in Zambia, which is fully consolidated from September 2018, had a negative impact on EBIT, primarily due to currency losses. In addition, operating losses in the business area Smart Urban Mobility as well as adjustments to profit margins on several existing projects contributed to the result Outlook. Despite already winning numerous and in some cases substantial projects in the current financial year, Kapsch TrafficCom continues to work intensively on exciting opportunities. The management expects to reach revenues and EBIT for the current fiscal year to reach the previous year’s level. Naturally, any currency and special effects are not taken into account. The departure of the United Kingdom from the EU (Brexit) in spring 2019 should not have a significant impact on Kapsch TrafficCom’s results. The company’s local revenues there are in the single-digit million range. The report on the first half of fiscal year 2018/19 is available here .

Highlights. “Although the results of the first quarter are weaker than initially expected I remain optimistic about the future. We have not lost any significant orders, but there have been differences between the planned and current project progress in some projects for various reasons – which were sometimes beyond our control. The order situation remains positive and we also expect decisions on the awarding of a number of major projects“, said Georg Kapsch, CEO of Kapsch TrafficCom. Unless otherwise stated, all values in EUR million Q1 2017/18 Q1 2018/19 +/- Revenues 164.3 158.2   -3.7% EBIT   11.7    7.1 -39.3%     EBIT margin        7.1%        4.5%     -2.6%p Earnings for the period    6.6    2.5 -62.3% Earnings per share (EUR)       0.52       0.21 -60.3% Vienna, August 23, 2018  – The final earnings for the first quarter of fiscal year 2018/19 were published by Kapsch TrafficCom today and hardly deviate from the preliminary revenues and operating result (EBIT) announced on July 24, 2018. It was primarily delays in existing implementation projects (ETC segment) that caused revenues in the first quarter of 2018/19 to decline by 3.7% to EUR 158.2 million as compared to this period in the previous year. Since the contribution margins have also not yet been included in the results as planned, EBIT fell by 39.2% to EUR 7.1 million. This corresponds to an EBIT margin of 4.5%. The project business accounts for a significant portion of Kapsch TrafficCom’s revenues (more than 25% in Q1 2018/19). It can occasionally happen that project milestones are reached in a different quarter than planned. Sometimes even a short delay (beyond the end of the reporting period) is enough to cause shifts between quarters. Furthermore, higher currency losses in the financial result and income taxes led to a decline of more than 60% in the result for the period and to earnings per share of EUR 0.21. Segment results. In Q1 2018/19, 75.6% of the revenues were attributed to the ETC segment and 24.4% to the IMS segment. ETC (Electronic toll collection). Unless otherwise stated, all values in EUR million Q1 2017/18 Q1 2018/19 +/- Revenues 123.4 119.6   -3.1% EBIT   14.6    7.0 -52.3%     EBIT margin      11.9%       5.8%     -6.0%p Revenues in the ETC segment totaled EUR 119.6 million (-3.1%) and the EBIT reached EUR 7.0 million (52.3%). Since approximately 67% of Kapsch TrafficCom’s total revenues were generated in the EMEA region, a 7.4% drop in revenues could not be offset by revenue increases in the regions of the Americas (+3.7%) and in the APAC region (+19.7%). The 3.3 million on-board units sold in the first quarter set a new record. IMS (Intelligent mobility solutions). Unless otherwise stated, all values in EUR million Q1 2017/18 Q1 2018/19 +/- Revenues 40.9 38.6 -5.7% EBIT  -2.9   0.1 n.a.     EBIT margin     -7.1%      0.3%  +7.5%p Revenues in the IMS segment decreased by 5.7% to EUR 38.6 million. While revenues in the EMEA region increased (+8.9%), they fell in the region of the Americas (-17.8%) and in the APAC region (-46.7%). The IMS EBIT was positive for the second quarter in a row (EUR 0.1 million). Free cash flow and balance sheet. As a consequence of the lower earnings and changes in working capital, the free cash flow in the first quarter amounted to EUR -12.2 million (Q1 2017/18: EUR -4.3 million). The balance sheet continues to be strong – with an equity ratio of 37.6% as of June 31, 2018, exceeding the value as of March 31, 2018 (37.0%). A net debt of EUR 5.8 million (March 31, 2018: net cash of EUR 16.2 million) corresponds to a gearing ratio of 2.5%. Kapsch TrafficCom had total assets of EUR 614.8 million as of June 30, 2018 (March 31, 2018: EUR 621.1 million). Event after the end of the quarter. Kapsch TrafficCom increased its shareholding in Intelligent Mobility Solutions Ltd., a joint venture in Zambia, to 51% already in May 2018. In August 2018, the shareholders agreement was adapted giving Kapsch TrafficCom control over the joint venture so that it will be fully consolidated going forward. The report on the first quarter of the fiscal year 2018/19 is available here .

Highlights. “Even though the results of the first quarter of 2017/18 were not satisfactory in my opinion, I am convinced that we are on the right path. Potential improvements have been recognized and are being implemented; promising new business opportunities are being processed by our teams with their full commitment,” says Georg Kapsch, CEO of Kapsch TrafficCom. Unless otherwise stated, all values in EUR million Q1 2017/18 +/- Q1 2016/17 Revenues 164.3    7.9% 152.3 EBIT   11.7 -33.4%   17.6     EBIT margin        7.1%   -4.4%      11.6% Profit for the period     6.6 -46.7%   12.4 Earnings per share (EUR)       0.52 -46.2%       0.97 Vienna, August 30, 2017 – Kapsch TrafficCom had to accept a so-so start in the new fiscal year. On the one hand, the company was able to continue its growth course. The revenues gained ground in both segments and went up by 7.9% to EUR 164.3 million at the Group level. On the other hand, Kapsch TrafficCom recorded a decline in operating result (EBIT) of EUR 5.9 million (-33.4%) down to EUR 11.7 million. The EBIT margin was therefore 7.1% (Q1 2016/17: 11.6%). There were several reasons for the lower profitability: When adjusted by the last two points – i.e. the known one-time effect and the effects of exchange rate fluctuations, which can only be influenced to a limited extent – Kapsch TrafficCom was able to achieve a fairly stable EBIT development in the normal course of business. The higher currency losses (of EUR 0.8 million) and lower currency gains (by EUR -0.7 million) compared to Q1 2016/17 were the main reasons for the decline in the financial result to EUR -2.3 million (Q1 2016/17: EUR -0.3 million). While the realized currency losses dropped by EUR 0.2 million, the unrealized currency losses went up by EUR 1.0 million. The profit for the period was EUR 6.6 million (Q1 2016/17: EUR 12.4 million), and the earnings per share was EUR 0.52 (Q1 2016/17: EUR 0.97). Segment results. In Q1 2017/18, 75.1% of the revenue fell to the ETC segment and 24.9% to the IMS segment. ETC (Tolling Business). Unless otherwise stated, all values in EUR million Q1 2017/18 +/- Q1 2016/17 Revenues 123.4    9.7% 112.4 EBIT   14.6 -19.3%   18.1     EBIT margin       11.9%    -4.3%p       16.1% The EBIT in Q1 2016/17 included a positive one-time effect of EUR 0.9 million.   IMS (Intelligent Mobility Solutions). Unless otherwise stated, all values in EUR million Q1 2017/18 +/- Q1 2016/17 Revenues 40.9      2.7% 39.8 EBIT  -2.9 -440.6%  -0.5     EBIT margin      -7.1%       -5.8%p      -1.4% The EBIT in Q1 2016/17 included a positive one-time effect of EUR 2.1 million.   Balance sheet. The free cash flow of the first quarter was negative at EUR -4,3 million. Consequently, the net credit of EUR 19.6 million on March 31, 2017, also sank to a still rock-solid amount of EUR 13.4 million on June 30, 2017. In the same period, the equity ratio rose from 35.0% to 36.2%. Event after the quarterly closing date. After the quarterly closing date, Kapsch TrafficCom has taken over the remaining 67% of Mexican intelligent transportation systems (ITS) company SIMEX. Kapsch TrafficCom was already in possession of 33% of the company since 2012. With more than 30 years on the market and 255 employees, SIMEX is an important player in the Mexican ITS market. Outlook. Based on the results of this first quarter, it will be a challenge in 2017/18 to achieve the EBIT that Kapsch TrafficCom had in the last fiscal year. This is all the more so if the effects of exchange rate fluctuations – which can only be influenced to a limited extent – will continue to work against the company. However, the management is convinced that the company is on the right path. Potential improvements have been recognized and are now being implemented; the new business opportunities are very promising. The report on the first quarter of the fiscal year 2017/18 is available here .

2015/16 Q1-Q3: 1 April – 31 December 2015 2015/16 Q1-Q3 2014/15 Q1-Q3 +/- % Revenues (in million EUR) 379.2 349.5      +8 % EBIT (in million EUR)    43.3    23.7    +82 % Profit for the period (in million EUR)    25.3     1.0 > 500 % Vienna, February 24, 2016  – Kapsch TrafficCom AG (ISIN AT000KAPSCH9), listed in the Prime Market of the Vienna Stock Exchange, demonstrated operational and strategic progress during the first three quarters of the 2015/16 fiscal year, and the impact and results of the forward-looking Program 2020 were clearly visible here. During the reporting period, the Kapsch TrafficCom Group obtained multiple new orders in the U.S.A. (including for an end-to-end solution), Chile, Australia and New Zealand. A city solution was put into operation in Italy, and the V2X technology of Kapsch TrafficCom will be employed in future in the Czech capital of Prague. In late summer, the company obtained a significant order for the delivery and installation of the traffic management systems within the framework of the cross-border program “CHARM” of the road authorities of the Netherlands and Great Britain. This advanced traffic management system will be the largest and most modern system in Europe; in this way, Kapsch TrafficCom secures for itself a globally recognized position in traffic management systems as well. The existing operation projects continued to represent a stable foundation during the reporting period, and the expansion of the systems in Belarus and Poland also contributed to revenue and earnings as expected. Asset, financial and earnings situation. The revenue in the first three quarters of 2015/16 of EUR 379.2 million was 8.5 % above the previous year’s value of EUR 349.5 million. The segment Road Solution Projects (RSP) and the segment Services, System Extensions, Components Sales (SEC) both contributed equally to the revenue growth. The EBIT increased by 82.2 % from EUR 23.7 million to EUR 43.3 million. This disproportionate growth is all the more impressive since the comparison value of the previous year was significantly elevated due to one-time effects. In the segment RSP, the new projects and in particular the successes of the “Top Fit” project brought about a significant improvement; however, the segment EBIT remains negative at EUR -12.9 million. In the segment SEC, the EBIT of EUR 54.6 million was 8.9 % below the value of the previous year. While the significant increase in on-board unit sales had a positive effect, the investment in the majority stake in the smart parking provider Streetline weighed down the result. The EBIT margin of the Kapsch TrafficCom Group has remained in the double digits for the last three quarters and is currently 11.4 %. The profit for the period rose from EUR 1.0 million to EUR 25.3 million during the reporting period, resulting in earnings per share of EUR 1.64. The free cash flow reached EUR 74.8 million after EUR 59.4 million in the same period of the previous fiscal year. The balance sheet figures also reflect a continuous improvement over the first three quarters of the fiscal year. The equity ratio increased to 45.2 %. Cash and cash equivalents increased to EUR 138.0 million as at the end of December and helped ensure that the Kapsch TrafficCom Group has turned net debt into a net cash position of EUR 24.5 million. Program 2020 and strategy. 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 and also adapted the strategy with respect to future developments and growth potential. The cost savings and organizational adaptations have already contributed significantly to operational excellence, and the savings were realized more effectively and more quickly than originally expected. The measures implemented will become fully apparent over the course of this fiscal year. Within the framework of Strategy 2020, Kapsch TrafficCom has set three priorities that are also reflected in the project developments:    1. The first is operational excellence,    2. the second is the strengthening and securing of the core business and    3. the third is the establishment of an intelligent mobility solutions (IMS) business. In December, Kapsch TrafficCom also concluded an agreement to take over the global transportation business of Schneider Electric, which encompasses integrated advanced traffic management solutions for cities, highways and transit solutions. This will enable Kapsch TrafficCom to offer integrated intelligent transportation solutions from the highway into the city. Furthermore, this will expand the group’s presence in the growth markets of Spain, Latin America, the U.S.A. and the Middle East. The acquisition should be concluded in the coming weeks – subject to all agreed conditions. Outlook. In the first three quarters of the fiscal year, Kapsch TrafficCom established a good basis for the future. The management therefore expects that the EBIT margin for the entire fiscal year 2015/16 will be above the 10 % mark that was set as an initial minimum target for the core business. From an operational perspective, Kapsch TrafficCom takes an optimistic view of the development of the existing projects, including for the coming fiscal year 2016/17. Several invitations to tender and additional potential projects also exist. The activities will continue to focus on the implementation of the strategy. In accordance with the changes in the business, the internal structures of the Kapsch TrafficCom Group – and therefore of the group’s reporting as well – have followed a modified segmentation since the fourth quarter of the current fiscal year. This will be reported on in detail together with the annual figures, which will be back-calculated for purposes of comparability. In addition, Kapsch TrafficCom is planning further strategic steps for the future. Announcement. The report on the first three quarters of the fiscal year 2015/16 can be downloaded here . 

2014/15 Q1-Q3: 1 April – 31 December 2014 2014/15 Q1-Q3 +/- % 2013/14 Q1-Q3 Revenues (in million EUR) 349.5      -2% 355.0 EBIT (in million EUR)   23.7 +178%      8.6 Profit for the period (in million EUR)    1.0 -    -1.3 Vienna, February 25, 2015 – Kapsch TrafficCom AG (ISIN AT000KAPSCH9), listed in the Prime Market of the Vienna Stock Exchange, experienced stable business developments in the first three quarters with existing installation and operation projects. The Kapsch TrafficCom Group was also able to obtain a number of new orders in Australia during the third quarter, although new major orders – upon which the innovation and growth plans are based – remained elusive due to the lack of corresponding invitations to tender. The group-wide Agenda 2020, which lays out the organizational and strategic plans for a future growth course, has already contributed to an EBIT improvement during the current reporting period. Financial position. The revenue of the Kapsch TrafficCom Group during the first three quarters of the 2014/15 fiscal year was EUR 349.5 million, slightly below the previous year’s value of EUR 355.0 million. In the segment Services, System Extensions, Components Sales (SEC), the operation projects in Belarus and South Africa that began in the previous year were instrumental in enabling an increase of 12.1%. In the segment Road Solution Projects (RSP), however, the decline in revenue by 43.1% reflects the advanced stage of the existing large installation projects and the lack of new major projects. For this reason, the EBIT of the segment RSP remained negative at EUR -37.4 million, and it was not possible to cover the expenses for development work and preparations for potential tenders. The fact that the EBIT at the Group level nevertheless increased by an impressive 177.5% to EUR 23.7 million is due – in addition to the one-time effects at mid-year – to the two additional operation projects as well as the initial successes of the realized cost reductions. As in the first two quarters of the fiscal year, Kapsch TrafficCom Group was forced again in the third quarter to record an impairment of the stake in Q-Free ASA. The total impairments in the first three quarters of 2014/15 amounted to EUR 18.5 million. The profit for the period, which was negative in the comparison period of the previous year at EUR -1.3 million, only improved to EUR 1.0 million as a result. Due to this circumstance, the profit per share remains negative at EUR -0.36. Overall, the balance sheet of the Kapsch TrafficCom Group reflects a continual improvement in the reporting period. The equity ratio rose from 37.6% to 41.0%, the net debt has been halved since the start of the current fiscal year and cash and cash equivalents reached EUR 94.8 million at the end of the third quarter. The net working capital declined significantly, and Kapsch TrafficCom Group recorded a free cash flow of EUR 59.4 million for the reporting period. These figures also reflect that there are currently no new large installation projects to be financed. Agenda 2020. In consideration of the changed market conditions, the Kapsch TrafficCom Group has developed an intensive, group-wide agenda. This Agenda 2020 is intended to quickly improve the profitability of the existing business while also laying out a long-term growth strategy for the Kapsch TrafficCom Group. All associated measures were identified in recent months and immediately put into action. The key pillars consist of cost savings realized from both material and staff costs alongside a further focusing of the portfolio in the area of intelligent transportation systems (ITS). The initial successes can already be seen in the EBIT for the first three quarters. Outlook. Agenda 2020 will also be reflected in the results for the full 2014/15 fiscal year. On this basis, the executive board hopes to once again distribute dividends, in contrast to the previous year. In the coming 2015/16 fiscal year, Agenda 2020 should enable an EBIT margin of roughly 10%. The Kapsch TrafficCom Group views a cost structure corresponding to the current revenue as the basis for this calculation, although the Group will strive for growth even beyond this level. The next months will be characterized by the continuation of existing projects. The Kapsch TrafficCom Group also expects a further expansion of existing toll systems, such as those in Belarus and Poland. In addition, several new ITS systems are approaching their decision phases, including one large project. The company also looks positively on the increasing attention being given to toll systems within Europe. “Among other indications, the discussion in Germany demonstrates the continued existence of the major trend of financing the maintenance and expansion of infrastructure – an important market driver,” explains Georg Kapsch, CEO of Kapsch TrafficCom AG. Kapsch TrafficCom also remains engaged in active discussions with potential toll system customers and expects these efforts to lead to successes as well. Notification. The reports on the first three quarters of fiscal year 2014/15: English , German

2014/15 H1: 1 April – 30 September 2014 2014/15 Q1 2013/14 Q1 +/- % Revenues (in million EUR) 237.4 235.9    +1 % EBIT (in million EUR)     17.6     7.6 +132 % Profit for the period (in million EUR)     0.9    -0.7 - Vienna, November 20, 2014 – Kapsch TrafficCom AG (ISIN AT000KAPSCH9), listed in the Prime Market of the Vienna Stock Exchange, reports stable business in the first half of the fiscal year 2014/15. With a slight increase in revenue, it was possible to significantly improve the EBIT, which was also negatively impacted by one-time effects. At the same time, Kapsch TrafficCom announces that it will now quickly implement an intensive set of measures in order to improve profitability over the long term in the face of changed market conditions. The cancellation of the toll tender in Russia highlighted the urgency of this action. Financial position. The revenue of the Kapsch TrafficCom Group increased slightly in the first half of the fiscal year 2014/15 to EUR 237.4 million after EUR 235.9 million in the same period of the previous year. While an increase of 13.9 % was achieved in the segment Services, System Extensions, Components Sales (SEC) especially due to the toll systems in Belarus and South Africa that went into operation in the previous year, revenue fell by 40.2 % in the segment Road Solution Projects (RSP), which includes development services as well as the preparatory work for and the installation of projects. This is primarily due to the advanced level of completion of existing projects and the lack of new large projects. In consequence, the segment RSP recorded an EBIT of EUR -23.7 million after EUR -13.1 million in the same period of the previous year. This result includes a goodwill impairment of EUR 12.3 million, while the release of a provision in the amount of EUR 16.2 million had a positive impact on the profit. The EBIT of the segment SEC increased by 97.1 % to an outstanding EUR 40.2 million. Overall, the EBIT of the Kapsch TrafficCom Group for the first half of 2014/15 was EUR 17.6 million, placing it significantly above the same value of the previous year of EUR 7.6 million. A required impairment to the interest in Q-Free ASA amounting to EUR 12.2 million weighed down the profit for the period, which was nevertheless still positive at EUR 0.9 million (2013/14 H1: EUR -0.7 million). The balance sheet depicts the solid basis of the Kapsch TrafficCom Group. In particular, the repayments in connection with the financing agreement for installation of the toll system in Belarus had a positive impact. The free cash flow, which was negative in the same period of the previous year, amounted to EUR 25.5 million. The net working capital and capital employed were reduced in comparison to 30 September of the previous year. The equity ratio as well as the cash and cash equivalents increased, while the net debt declined by roughly 24 %. Growth strategy. Kapsch TrafficCom is a globally recognized provider of electronic toll systems and a market leader in systems for multi-lane free-flow traffic. In addition, the company has expanded and demonstrated its competence in the area of intelligent transportation systems (ITS). As part of its long-term growth strategy, Kapsch TrafficCom is striving for a two-digit EBIT margin in order to continue innovating and growing. In the last two years, however, new projects have been delayed due to the prevailing economic and political conditions, and several invitations to tender have been postponed or canceled. Furthermore, the demand for large, nationwide toll systems has declined in favor of regional, interurban and modularly designed solutions. The convergence of the ITS market predicted by Kapsch TrafficCom is now already taking place. Kapsch TrafficCom refers here to future intelligent mobility solutions, many elements of which must still be developed, and views itself at player who will help shape this future. Kapsch TrafficCom is now responding to market changes with the rapid implementation of an intensive set of measures intended to quickly improve the earning power of its existing business while also establishing a long-term strategy to ensure a profitable and sustainable future for the Kapsch TrafficCom Group. A variety of measures will be initiated and implemented by the end of the fiscal year 2014/15 under the title of “Program 2020”. These include the plan to achieve an EBIT margin of 10 % in the coming fiscal year 2015/16 on the basis of a cost structure adapted to the current revenue level – with the goal of a further increase in the following year. Kapsch TrafficCom views this as a basis for calculation that is independent of the desired growth. The set of performance improvement measures begun already in March will be continued, but structural and financial adjustments will also be made. During the coming weeks, the planning for the global Kapsch TrafficCom Group will be finalized, and individual measures will be implemented immediately in order to achieve initial results as quickly as possible. Kapsch TrafficCom intends to remain a globally leading provider of intelligent mobility solutions capable of covering the entire value creation chain of its customers. In addition, the company plans to increasingly take advantage of potential synergies within the Kapsch Group in order to offer intermodal and interoperable solutions for individual and public transportation around the world. Outlook. The second half of the fiscal year 2014/15 will be marked by strategic adjustments to changed market conditions. On the operational side, Kapsch TrafficCom will continue to carry out existing projects, such as the expansion of the toll systems in Belarus and Poland. The implementation of the system in Texas should be completed in the next two quarters, and work continues unabated on improving the profit situation in South Africa. Furthermore, Kapsch TrafficCom expects its business to be expanded with new projects. The outstanding results of the first half of the year will also be felt in the results of the entire fiscal year 2014/15, as will the initial effects of the structural measures. For the coming fiscal year 2015/16, Kapsch TrafficCom is striving for a level of profitability based on its Program 2020 that will enable an EBIT margin of 10 % even at current revenue levels. Notification. The report on the first half of fiscal year 2014/15: English , German