DGAP-News: init innovation in traffic systems SE / Key word(s): Final Results/Dividend init innovation in traffic systems SE plans further growth after record year 22.03.2018 / 15:47 The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- Revenues in 2017 at EUR 130.6m exceeded expectations (2016: EUR 108.6m) Further increase in operating earnings and EBIT margin planned for 2018 Incoming orders of EUR 140m to EUR 150m targeted for 2018 After a record year in 2017, init innovation in traffic systems SE (ISIN DE 0005759807) expects a further surge in revenues for the current financial year. This will be particularly reflected in the operating result (EBIT), which is projected to increase to a figure between EUR 10m and EUR 12m (2017: EUR 8.6m). The international leader in providing integrated planning, dispatching, telematics and ticketing solutions for buses and trains expects particularly strong growth in the area of mobile phone ticketing or smart ticketing as well as for intermodal planning and monitoring systems. For 2018, despite higher risks in the US, the Managing Board expects revenue growth of EUR 135m to EUR 145m (2017: EUR 130.6m). Incoming orders are expected to increase to a range of EUR 140m to EUR 150m, as announced at today's annual results press conference in Frankfurt. «We will have to strengthen our investments further in 2018 in order to maintain our technological edge and to fulfil the new requirements from our customers. The ongoing technological revolution in our market, as evident from the topics such as digitisation, electromobility and autonomous driving, however, provides us with new opportunities for sustainable growth», states the Managing Board in its outlook. «Our revenues forecast for 2018 is cautious in view of the significant increase in uncertainties in markets such as the US and the UK and settles at the lower edge of our long-term growth rate». Growth in core business and through acquisitions Given the new revenue record and year-on-year growth of over 20 per cent or EUR 22m, the Managing Board was satisfied with the 2017 financial year. Around EUR 10m was attributable to the traditional business and EUR 12m to the first-time full year consolidation of acquisitions. Over 72 per cent of the revenues was generated in international business. At EUR 8.6m at group level, EBIT also significantly exceeded the average of the EBIT forecast (EUR 5 - EUR 7m) by 43 per cent. Although this is below the previous-year figure of EUR 11.7m, it should be considered that in 2016 a one-off positive effect of around EUR 4.7m from the write-up of existing shares in iris-GmbH was recognized in accordance with the IFRSs requirement. Adjusted for one-off and currency effects, EBIT for 2017 even increased to EUR 11.9m compared to 2016 (EUR 6.7m). The adjusted EBIT margin stands at 9.1 per cent (2016: 6.2 per cent). Taking into account the one-off write-up effects recognized for 2016, the year-on-year net profit also decreased to EUR 3.6m (2016: EUR 8.6m). Earnings per share for 2017 come to EUR 0.37 (2016: EUR 0.86). «Considering our stable course of growth, we will propose an unchanged dividend of EUR 0.22 at the Annual General Meeting», communicated the Managing Board. The stable growth path of init is underlined by the development in incoming orders: at EUR 139.4m, the second-highest figure in the company's history, in 2017 it exceeds the previous-year figure (EUR 128.7m) by 8 per cent and is significantly higher than the revenues generated. According to the forecast of the Managing Board, this will continue in 2018 as well: this year, init will win contracts with a volume of EUR 140m to EUR 150m and thus continue the positive business development. «A clear improvement in the operational business was evident in the past financial year. The init group's improved earnings performance in the 2017 financial year means the company has a solid base to finance its growth targets in 2018», states the Managing Board in its overall view of the economic situation. Contact: Person making the notification: Simone Fritz Investor Relations [email protected] --------------------------------------------------------------------------- 22.03.2018 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. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de --------------------------------------------------------------------------- Language: English Company: init innovation in traffic systems SE Käppelestraße 4-10 76131 Karlsruhe Germany Phone: +49 (0)721 6100 0 Fax: +49 (0)721 6100 399 E-mail: [email protected] Internet: www.initse.com ISIN: DE0005759807 WKN: 575980 Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange End of News DGAP News Service --------------------------------------------------------------------------- 667739 22.03.2018