DGAP-News

init innovation in traffic systems AG: preliminary half-year financial key figures 2016

DGAP-News: init innovation in traffic systems AG / Key word(s): Half Year
Results/Half Year Results
init innovation in traffic systems AG: preliminary half-year financial key
figures 2016

05.08.2016 / 09:00
The issuer is solely responsible for the content of this announcement.

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Highest incoming orders of any first half-year in the company's history

- Figure of EUR 80m (previous year: EUR 41.3m) exceeds forecast for half-
year

- Revenues and operating profit within the target range

- E-ticketing and North American business stimulate growth

Karlsruhe, 5 August 2016. In the first six months of 2016, init innovation
in traffic systems AG (ISIN DE 0005759807) recorded the highest incoming
orders in its history. Their value totalled EUR 80m, up 93 per cent year-
on-year (from EUR 41.3m) and exceeding the planning for the half-year. This
increase was primarily due to the performance of multimodal fare management
systems (e-ticketing), in which major tenders in North America and Europe
were won. Despite a year-on-year decrease, revenues and earnings for the
half-year were in line with expectations.

As such, the init Group's business during the first half of 2016 developed
along lines reflecting the modest volume of orders received in the past
year, but also the growth potential that is emerging globally in e-
ticketing, as well as in the European and North American markets.

In the second quarter of 2016, init, the world leader in integrated
telematics and electronic payment systems for buses and trains, generated
revenues of EUR 22.4m (Q2 2015: EUR 23.6m). Revenues for the first six
months of 2016 were down year-on-year at EUR 41.8m (previous year: EUR
47.1m).

Income to rise in the second half - forecast raised

Earnings before interest and taxes (EBIT) decreased year-on-year to EUR
1.9m (previous year: EUR 3.7m). This was attributable not only to lower
revenues, but also to increased personnel and advisory costs as well as
sales expenses. The Managing Board emphasises that "This is in line with
our budget, and we expect a marked increase in revenue and earnings
starting in Q3."

The Managing Board recently raised its forecast for the full year in view
of the positive effects expected from the acquisition of an additional 25.5
per cent stake in the sensor specialist iris-GmbH. init now expects to
generate revenues of approximately EUR 106m (previous forecast: EUR 100m)
at Group level in 2016, resulting in EBIT of some EUR 12m (previously: EUR
8m).

The target for incoming orders has also been adjusted upwards. The Managing
Board now expects the Group, including iris-GmbH, to receive new orders
with a volume of some EUR 116m in 2016 (2015: EUR 67.2m). The order backlog
as at 30 June stood at approximately EUR 123m (previous year: EUR 121m) and
as such already covered more than one year's revenues.

In the current financial year, the main drivers of the init Group's growth
are again originating from outside Germany. In particular, the company has
been able to carve itself a position of international market leadership in
multimodal fare management systems. "We see a great deal of potential here
for our business growth to really take off from 2017 onwards. Major
ticketing tenders are also expected on other continents. The first results
from pilot projects in Asia are also highly promising, and could open up
potential for further opportunities in the medium term," comments the
Managing Board.

Looking further ahead, the Managing Board is encouraged by the large number
of tenders for public transport infrastructure and telematics and ticketing
systems worldwide, which init's many reference projects and its practical
experience around the world leave it well-equipped to win.

The half-year financial report for 2016 will be published on 11 August
2016.


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05.08.2016 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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Language: English
Company: init innovation in traffic systems AG
Käppelestraße 4-10
76131 Karlsruhe
Germany
Phone: [phone]
Fax: [phone]
E-mail: [e-mail]
Internet: www.initag.de
ISIN: DE0005759807
WKN: 575980
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich,
Stuttgart, Tradegate Exchange


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489631 05.08.2016