DGAP-News: init innovation in traffic systems AG / Key word(s): AGM/EGM init innovation in traffic systems AG becomes a Societas Europaea 21.07.2016 / 19:14 The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- - Annual General Meeting passes resolutions to change the company's legal form from AG to SE and to pay dividends of EUR 0.20 per share - Forecast for 2016 is raised, growth expectations for 2017 are confirmed - Authorisation is granted to issue warrant bonds and convertible bonds Karlsruhe, 21 July 2016. init innovation in traffic systems AG (ISIN DE 0005759807) generates almost three quarters of its revenue outside of Germany and is one of the world's leading providers of integrated telematics and electronic fare collection systems for buses and trains. The company's strong international focus emphasised the recent decision made by the shareholders to approve the conversion of the company from a public limited company under German law to a European Company (Societas Europaea, SE). The Managing Board expects this conversion to bring about better opportunities on the European market and a greater level of acceptance among international investors. This argument impressed the init shareholders, who approved the Board's conversion plan and the new articles of association by a large majority. The new legal form will not result in any changes for shareholders, as the company structures, participations and the assignment of responsibilities between the Annual General Meeting, the Managing Board and the Supervisory Board will remain the same. In addition, the company's registered office will still be in Karlsruhe. Conversion as a logical step in the further development of init "init AG has become more and more of a global player in recent years. In light of this, the conversion is a logical step in the further development of the company. This modern European legal form can help init to expand internationally over the next few years," said the Chairman of the Managing Board, Dr. Gottfried Greschner. The move to an SE company has already been made by DAX companies, such as Allianz, BASF and SAP. In order to also provide more leeway for corporate financing in international business, the Managing Board and the Supervisory Board proposed at the Annual General Meeting the authorisation - which shall be valid until 20 July 2021 - to issue warrant bonds and convertible bonds to a total nominal value of up to EUR 100 million as well as the creation of the associated conditional capital of up to EUR 5 million. This proposal was also passed by the shareholders by a majority of 93.1 percent. This authorisation will increase the number of options available to the company for financing its activities and shall open the way for the Managing Board, with the approval of the Supervisory Board, to obtain flexible and timely financing, which is in the interest of the company, particularly in the event of favourable capital market conditions. init's focus on international business was also referred to in Dr. Gottfried Greschner's report. On the basis of this, the Chairman of the Managing Board confirmed that the company is expecting incoming orders worth EUR 110 million in the current financial year. After receiving two major orders, incoming orders amounted to approximately EUR 35 million in the first quarter of 2016, which equates to a 39 percent year-on-year increase (1Q 2015: EUR 25.2 million). Huge potential in e-ticketing This rise in incoming orders was brought about in particular by the ever- increasing global demand for init's multimodal electronic fare management systems. Most recently, init won major tenders in the US (Tampa, Florida and Honolulu, Hawaii) and in the UK. "In this field, we have established a leading position on the international market and see huge potential here. This will give a further boost to company growth from 2017 onwards," said Greschner. The Managing Board recently revised the forecast for the current financial year upwards due to the positive effects following the acquisition of a further 25.5 percent holding in sensor specialist iris-GmbH infrared & intelligent sensors. As a result, init is now expecting at a group level to generate revenues of EUR 106 million (previous forecast: EUR 100 million) and an operating profit before interest and taxes (EBIT) of more than EUR 12 million (previous forecast: EUR 8 million) in the financial year 2016. init AG closed the financial year 2015 with a net profit of EUR 12.9 million, out of which a dividend of EUR 0.20 per dividend-bearing share will be paid out on 22 July 2016. The relevant proposal, made by the Managing Board and the Supervisory Board, was approved by the Annual General Meeting with 98.9 percent of the vote. The Annual General Meeting also approved the proposal regarding those being elected to the Supervisory Board. Dipl.-Kfm. Hans-Joachim Rühlig, the former Secretary General of the International Association of Public Transport (UITP) Dr. Hans Rat and Dr. Dipl.-Ing. Ulrich Sieg were all re- elected by an overwhelming majority. Prior to this, the Managing Board and the Supervisory Board were discharged for the financial year 2015, winning 98.2 percent and 97.6 percent of the votes, respectively. About init: As worldwide leading supplier of telematics and electronic fare collection systems for buses and trains, init has helped transport companies make public transport more attractive, faster and more efficient for over 30 years. Over 400 customers worldwide now rely on our innovative hardware and software solutions. init products bring an impressive profit thanks to their state-of-the-art technology. Their modular structure and high level of standardisation enable them to be used as standalone units or, depending on the transport company's requirements, to be integrated individually into an intelligent overall solution. It is also possible to extend systems gradually. The competitive advantage enjoyed by the integrated MOBILE telematics system is that it can handle all of the tasks required by transport companies - from planning & scheduling and operations management & passenger information, all the way to ticketing & electronic fare management and analysis & optimisation. --------------------------------------------------------------------------- 21.07.2016 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. Archive at www.dgap.de --------------------------------------------------------------------------- Language: English Company: init innovation in traffic systems AG Käppelestraße 4-10 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, Tradegate Exchange End of News DGAP News Service --------------------------------------------------------------------------- 484989 21.07.2016