2013/14 H1: 1 April – 30 September 2013 2013/14 H1 +/- % 2012/13 H1 Revenues (in million EUR) 235.9 +16 % 203.4 EBIT (in million EUR) 7.6 - -5.6 Profit for the period (in million EUR) -0.7 +91 % -6.9 Earnings per share (in EUR) -0.36 +57 % -0.85 Vienna, November 27, 2013 – Kapsch TrafficCom AG (ISIN AT000KAPSCH9), listed in the Prime Market of the Vienna Stock Exchange, achieved considerable progress in its existing projects in the first half of the fiscal year 2013/14 and is also now engaged in new projects. Together with the ongoing operation of systems, this led to a revenue increase compared with the same period of the previous year, and the EBIT has now also seen positive development for three straight quarters. In Belarus, Kapsch TrafficCom achieved the first key milestone during the period under report, with the first stage of this major project entering into commercial operation on August 1st. Despite changing circumstances in some cases, the company also achieved good progress in the ongoing projects in France, Australia and Texas, for which implementation is expected to be largely completed by the end of the fiscal year. In Kazakhstan, weigh-in-motion systems were installed on two highways already in August, and a total of four projects in Russia were obtained in September – all successes in pursuing the ITS (intelligent transportation systems) strategy of expanding beyond toll collection systems. Following the successful commissioning of the first phase of the nationwide electronic truck toll collection system in Belarus, this system will now be further expanded in two additional phases. In South Africa, the law enabling the commissioning of the already completed toll collection system in the Gauteng province was signed and entered into force at the end of September. December 3, 2013, has now been announced as the toll commencement date. In Russia, in addition to the four new projects already under implementation, Kapsch TrafficCom also prequalified for participation in the invitation to tender for a nationwide toll collection system for heavy trucks together with the Russian telematics company JSC NIS. Revenue and earnings. The project progress and the ongoing operation of systems made it possible to increase revenue in the first half of 2013/14 by 16.0 % compared to the same period of the previous year, from EUR 203.4 million to EUR 235.9 million. The EBIT, which was negative in the previous year at EUR -5.6 million, amounted to EUR 7.6 million in the reporting period. This marks three straight quarters of positive results, even if these results still fall far short of the goal of a two-digit EBIT margin. The profit for the period is negative at EUR -0.7 million due to a decline in the financial results. “Looking back, we have achieved impressive developments in the past years despite operational volatilities. In 2011, the consistent revenue base of the ongoing operation of systems and the on-board units business was supported primarily by just two toll collection systems in Austria and the Czech Republic. In the past two years, we have expanded this base enormously. In North America, contracts with the E-ZPass Group and the Canadian toll authority Cantoll now make up part of this base, and in the meantime, we now also have significant operation projects in Poland and Belarus. At this time, we already have six projects contributing to our regular revenue base,” says Georg Kapsch, CEO of Kapsch TrafficCom AG, confirming the strategic progress of the group. This is also reflected in the segment Services, System Extensions, Components Sales (SEC), where revenue rose from EUR 144.7 million in the first half of the previous year to EUR 164.4 million in the reporting period, an increase of 13.6 %. The EBIT increased by 110.7 % from EUR 9.7 million to EUR 20.4 million. In the segment Road Solution Projects (RSP), revenue increased by 26.3 % from EUR 50.2 million to EUR 63.4 million, while the EBIT remained negative at EUR -13.1 million following EUR -15.7 million in the same period of the previous year. This outcome shows that the project business has developed more slowly than expected. The organizational structure of the Kapsch TrafficCom Group, which was reorganized roughly one year ago for further growth in the toll segment as well as other select segments in the ITS market, has therefore been adjusted somewhat during the period under report, particularly in terms of costs. The objective here was to achieve cost reductions in all areas without cutting back on the strategically essential resources for potential major projects in the future. Financial position and cash flows. The balance sheet of the Kapsch TrafficCom Group at the end of the first half of 2013/14 reflects the progress and the prefinancing of the project in Belarus. Receivables and financial liabilities increased relative to the balance sheet date of March 31, 2013, as did the net working capital. In line with the project progress, the free cash flow is negative at EUR -46.7 million, and the net debt was EUR 100.3 million at the end of the first half of the year. With the end of the first expansion stage, the customer will now begin making payments, while the next phase of the project will again be prefinanced by Kapsch TrafficCom. Outlook. The second half of the 2013/14 fiscal year will be marked by a continuation of the existing projects and by new projects. The major project in South Africa is now scheduled to enter into operation on December 3, 2013. In Belarus, Kapsch TrafficCom expects that the second expansion stage of the toll collection system will be able to enter operation partly yet this year and partly at the start of the next fiscal year. Thanks to the continued progress in the projects in France, Australia and Texas, corresponding project implementation revenues are expected. At the same time, the initiated cost-cutting measures should visibly impact the results in the second half of the year. Moreover, the tender documents for Russia are currently being prepared. In Slovenia, it is expected that the invitation to tender suspended at the start of the summer will be restarted. In parallel to this, Kapsch TrafficCom continues to actively contact potentially interested parties for toll collection systems, an approach that has already proved successful in Belarus. Overall, management views the prospects for the second half of the year positively in light of the organizational changes and successes to date. Notification. The report on the first half of fiscal year 2013/14: English , German