EANS-News

Kapsch TrafficCom AG - Strong increase in revenues and profit for the period in the first nine months of the 2016/17 fiscal year - Seite 2

year. The EBIT margin dropped by 2.5 percentage points to 8.9%.
Important reasons for this are the still negative profit contribution
of Kapsch TrafficCom Transportation and the integration costs
associated with this acquisition. It is currently anticipated that
the integration process will largely be completed over the course of
this fiscal year. However, we will likely also experience a number of
follow-on effects next year. In any case, we should then start to see
the synergies resulting from the acquisition being reflected in our
results.

Due to lower foreign exchange losses the financial result in Q1-Q3
2016/17 was better than in the same period of the previous year,
which even comprised a positive one-off effect. It was therefore
possible to record strong growth (+16%) in the profit for the period
to EUR 29.4 million.

Through the acquisition of the remaining 48% share in the Czech
Kapsch Telematic Services (the operating company of the toll project
in the Czech Republic), the profit for the period attributable to
equity holders increased by 41%. To the same extent, the earnings per
share grew to EUR 2.31 (Q1-Q3 2015/16: EUR 1.64).

The capital resources of Kapsch TrafficCom continue to be extremely
sound. In spite of the dividend payment of a total of EUR 19.5
million as well as payments in connection with the different
acquisitions - most recently for a conditional adjustment of the
purchase price of Kapsch TrafficCom Transportation of EUR 5 million -
Kapsch TrafficCom had a net credit of EUR 17.6 million as of December
31, 2016.

On the sales side, Kapsch TrafficCom achieved a range of notable
successes in the first nine months of this fiscal year. In the Czech
Republic, the contract on the operation of the nationwide toll system
for road haulage was extended by up to three more years. In Austria,
Kapsch TrafficCom was awarded the contract for the installation and
technical operation of the nationwide toll system for vehicles over
3.5 tons. After acceptance of the new system, Kapsch TrafficCom will
perform the technical operation for a duration of ten years, whereby
there is the possibility to extend by up to five years.

Kapsch TrafficCom also achieved numerous successes outside Europe.
North America is certainly the most important growth market for the
Group. Besides some larger projects, an increasing number of smaller
orders are to be accounted for there. Kapsch TrafficCom has been
active in North America for many years and has developed the market
with acquisitions and organic initiatives. In this region, the
company employs about 700 employees and possesses its own production