DGAP-News: init innovation in traffic systems AG / Key word(s): Final Results/Conference init innovation in traffic systems AG: init expects further growth in 2017 23.03.2016 / 16:02 The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- After two major contracts in the first quarter of 2016: init expects further growth in 2017 - Increasing demand for multi-modal fare collection system by transport companies worldwide - Revised target for 2015 achieved in revenues and profit - Conservative planning for 2016: 100 million mark in revenues is to keep init innovation in traffic systems AG (ISIN DE0005759807) expects 2017 higher growth rates. "We have won two major contracts with a total contract value of more than 30 million euros within a few weeks. This confirms our view that there is an increasing demand in particular for multimodal fare collection systems by public transport companies worldwide. Here we have already established a leading market position, which offers us appropriate growth opportunities", said init founder and CEO Dr. Gottfried Greschner today at the press/Analyst conference in Frankfurt am Main. E-ticketing and the entire process of the fare collection system are becoming increasingly important for the public transport. In this field init has already completed pioneering projects in Germany, Europe and North America and has now created a software base that is technologically very advanced. "In North America we have acquired new customers in the past year and expect further orders. Large ticketing tenders are also being published in other continents because transport companies have recognized across the board how this benefits them. If we also succeed in pushing forward the idea of integrated systems, i.e. operation control systems combined with ticketing, a new growth potential will open up for us", stressed Greschner in his outlook. Growth market - pilot project in Asia North America is therefore an important growth market for us. Looking ahead, as worldwide leading supplier of integrated planning, dispatching, ITS and ticketing systems for buses and trains, init invests in a new central headquarters for three US subsidiaries in Chesapeake, Virginia. The move into the building will take place in 2017. Also an "indispensable investment in the sustainable growth of our company" marked Greschner the gradual development of the Asian market. init is there currently in the pilot phase of a project and hopes for more orders in 2016. Greschner: "It is a hard and rocky road to success in Asia and for the time being there are no considerable revenues to offset the costs. If everything goes as planned, we expect a dynamic development similar to the one in North America, where our revenues have multiplied within a few years." Record revenues despite turmoil In its report on the fiscal year 2015, the Management Board stated that the init group has reached a new record in revenues of EUR 105.3m (previous year: EUR 103m) and achieved the revised target for revenues and profit from November 2015. Earnings before interest and taxes (EBIT) amounted to EUR 10.8m (updated forecast EUR 10-12m, 2014: EUR 18.7m). In the year-on-year comparison it should be noted that exchange rate volatility - in particular the collapse of the Canadian dollar -, expenses incurred for activities in the Asian market, partially declined profit margins and higher personnel costs impacted the result. Net profit after interest and taxes decreased accordingly to EUR 7.6m (2014: EUR 12.1m). Earnings per share amounts to EUR 0.75 (previous year: EUR 1.20) Incoming orders to be expected in 2016 of around EUR 110m During the general economic turmoil year 2015 init was also affected by the consequences of its customers' uncertainty. Tenders were postponed or re-issued, projects were delayed, which is why incoming orders at EUR 67.2m (previous year: EUR 78.1m) were significantly below plan. For 2016, however, the Management Board again expects incoming orders in the group of around EUR 110m. Given the deterioration in global economic conditions and expected further political and economic turmoil in many countries, we remain conservative in our planning. init therefore expects revenues of about EUR 100m with a slight decline in margins for 2016. This corresponds to an operating profit (EBIT) of approximately EUR 8m. "New technological developments contribute to the continued dynamic growth of our market. This also attracts new, local and regional competitors and increases pressure on prices and margins in economically uncertain times. With forward-looking investments we have created the foundations that will allow us to continue to assert our position and return init to a stable growth path in the medium term", said the Management Board in his outlook. The group status report of init innovation in traffic systems AG can be found online at www.initag.com as well as on the homepage of the German stock exchange. --------------------------------------------------------------------------- 23.03.2016 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. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------------- Language: English Company: init innovation in traffic systems AG Käppelestraße 4-6 76131 Karlsruhe Germany Phone: +49 (0)721 6100 0 Fax: +49 (0)721 6100 399 E-mail: [email protected] Internet: www.initag.de ISIN: DE0005759807 WKN: 575980 Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart End of News DGAP News Service --------------------------------------------------------------------------- 448421 23.03.2016