init innovation in traffic systems SE

Quarterly Report • May 15, 2025

IMPORTANT BUSINESS TRANSACTIONS IN THE FIRST QUARTER 2025

Orders

Earnings position

Breakdown of revenues by region for the first three months:

in million EUR	01/01-31/03/2025	%	01/01-31/03/2024	%
Germany	22.5	32.0	18.6	36.8
Rest of Europe	17.7	25.1	10.7	21.2
North America	26.3	37.4	16.9	33.5
Other countries (Australia, UAE)	3.9	5.5	4.3	8.5
Total	70.4	100.0	50.5	100.0

Revenues based on customer's location.

Gross profit amounted to EUR 23.5m and is well above previous year's figure (Q1 2024: EUR 17.9m). At around 33 per cent, the gross margin has decreased compared to previous year (Q1 2024: around 35 per cent). This is mainly due to the business mix with a higher portion of large-scale projects, particularly in North America. In addition, effects from underutilisation of smaller entities had an impact on gross profit.

Sales and administrative expenses have increased by EUR 4.4m to EUR 17.1m compared to the previous year (Q1 2024: EUR 12.6m). About one third of the increase is caused by the consideration of the DILAX group. The additional costs are due to increased headcount, especially in sales, and to salary adjustments made in the previous year.

In total research and development expenses have increased to EUR 7.4m (previous year: EUR 5.3m), including the services for internally developed software of EUR 2.8m (previous year: EUR 2.2m) which were capitalised in line with the 2024 financial statements. Expenses of EUR 4.6m were recognised in the income statement (Q1 2024: EUR 3.1m). Thereof EUR 0.7m are contributed by DILAX group consolidated for the first time.

Foreign exchange losses increased in the reporting period (EUR 0.5m; previous year: foreign exchange gains EUR 0.8m). This position mainly includes unrealized gains and losses on the valuation of receivables and liabilities in foreign currencies, primarily in relation to the US Dollar.

Earnings before interest and taxes (EBIT) of EUR 2.0m was below the previous year's figure (Q1 2024: EUR 3.7m). In addition to the expected negative contribution from the DILAX group in the quarter, this is due to the developments described above. Main drivers are the under-proportional development of gross profit, the unfavourable foreign exchange results and the increase in research and development expenses.

Net interest income (balance of interest income and interest expense) amounted to EUR -0.7m and was below previous year's level (Q1 2024: EUR -0.3m). The increase is mainly caused by financing the acquisition of the DILAX group.

Consolidated net profit amounted to EUR 1.4m as of 31 March 2025 and is below the previous year's figure, mainly due to the lower operating earnings (Q1 2024: EUR 2.3m). Earnings per share amount to EUR 0.16 (Q1 2024: EUR 0.24).

Total comprehensive income amounted to EUR -0.6m (Q1 2024: EUR 3.5m). The decrease is a result of the lower consolidated net profit as well as from losses from currency translation.

Cash flow from operating activities amounted to EUR 15.5m (Q1 2024: EUR 7.5m) and was significantly higher than the previous year's figure. This was mainly due to a positive contribution from working capital items – primarily from an increase in contract liabilities as a result of the expected payments of large-scale projects in North America.

Personnel

	31/03/2025	31/03/2024
Germany	1,188	970
Rest of Europe	148	98
North America	172	152
Other countries	27	24
Total	1,535	1,244

Opportunities and risks

Forecast and outlook

Additional information

CONSOLIDATED INCOME STATEMENT

	01/01 to	01/01 to
	31/03/2025	31/03/2024
EUR '000
Revenues	70,407	50,453
Cost of sales	-46,878	-32,549
Gross profit	23,529	17,904
Sales and marketing expenses	-8,443	-6,838
General administrative expense	-8,619	-5,810
Research and development expenses	-4,608	-3,063
Other operating income	792	840
Other operating expenses	-157	-109
Foreign currency gains and losses	-503	755
Earnings before interest and taxes (EBIT)	1,991	3,679
Interest income	77	156
Interest expenses	-741	-485
Earnings before taxes (EBT)	1,327	3,350
Income taxes	51	-1,032
Net profit	1,378	2,318
thereof attributable to equity holders of parent company	1,563	2,402
thereof non-controlling interests	-185	-84
Earnings and diluted earnings per share in EUR	0.16	0.24
Average number of floating shares	9,881,804	9,844,993

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

EUR '000	01/01 to 31/03/2025	01/01/ bis 31/03/2024
Net profit	1,378	2,318
Items to be reclassified to the income statement:
Net gains (+) / net losses (-) on currency translation	-1,991	1,174
Total other comprehensive income	-1,991	1,174
Total comprehensive income	-613	3,492
Thereof attributable to equity holders of the parent company	-428	3,576
Thereof non-controlling interests	-185	-84

CONSOLIDATED BALANCE SHEET

EUR '000	31/03/2025	31/03/2024	31/12/2024
Cash and cash equivalents	26,058	39,108	23,523
Marketable securities and bonds	27	28	30
Trade accounts receivable	48,690	32,774	47,803
Future receivables from production orders from PoC method	43,952	28,558	39,929
Receivables from related parties	3	29	40
Inventories	54,974	54,271	57,213
Income tax receivable	2,183	0	2,753
Other assets	8,087	5,263	6,674
Current assets, total	183,974	160,031	177,965
	0
Property, plant and equipment	69,594	66,932	70,912
Investment property	1,122	1,349	1,124
Goodwill	13,326	12,488	13,326
Other intangible assets	45,528	26,844	44,105
Interests in associated companies	929	778	929
Deferred tax assets	3,622	4,738	2,538
Other assets	2,198	3,783	2,133
Non-current assets, total	136,319	116,912	135,067
Assets, total	320,293	276,943	313,032
Bank loans	34,445	29,722	39,418
Trade accounts payable	9,148	8,138	13,580
Accounts payable from PoC method	36,660	20,790	20,392
Advance payments received	5,312	5,233	1,597
Income tax payable	1,467	2,404	3,615
Provisions	3,853	4,191	4,319
Lease liabilities	5,232	4,095	5,020
Other liabilities	21,600	15,784	19,661
Current liabilities, total	117,717	90,357	107,602
Bank loans	28,151	23,479	29,973
Deferred tax liabilities	8,120	6,383	7,440
Pensions accrued and similar obligations	7,806	7,787	7,807
Provisions	1,938	1,679	1,748
Lease liabilities	23,210	23,174	24,150
Non-current liabilities, total	69,225	62,502	71,118
Liabilities, total	186,942	152,859	178,720
Attributable to equity holders of the parent company
Subscribed capital	10,040	10,040	10,040
Additional paid-in capital	6,144	5,949	7,734
Treasury stock	-2,262	-4,463	-4,463
Surplus reserves and consolidated unappropriated profit	116,401	108,539	115,798
Other reserves	3,086	3,694	5,076
	133,409	123,759	134,185
Non-controlling interests	-58	325	127
Shareholders' equity, total	133,351	124,084	134,312
Liabilities and shareholders' equity, total	320,293	276,943	313,032

CONSOLIDATED CASHFLOW STATEMENT

EUR '000		01/01 to 31/03/2025 01/01 to 31/03/2024
Cash flow from operating activities
Net income	1,378	2,318
Amortisation and depreciation	4,032	2,963
Gains on the disposal of fixed assets	-80	6
Change in provisions and accruals	-232	286
Change in inventories	1,412	-4,686
Change in trade accounts receivable and future receivables from production orders	-6,550	4,567
Change in other assets, not provided by / used in investing or financing activities	-1,023	821
Change in trade accounts payable	-4,097	-4,267
Change in advanced payments received and liabilities from PoC method	20,794	6,369
Change in other liabilities, not provided by / used in investing or financing activities	446	-1,604
Amount of other non-cash income and expenses	-537	730
Net cash from operating activities	15,543	7,503
Cash flow from investing activities
Payments received on disposal of property, plant and equipment	96	46
Investments in property, plant and equipment	-1,265	-484
Investments in other intangible assets	-2,898	-2,194
Cash paid/received for financial assets	0	9
Payments received on disposal of marketable securities	2	2
Capital contributions and loans to associated companies	0	-1
Net cash flows used in investing activities	-4,065	-2,622
Cash flow from financing activities
Payments received from bank loans incurred	7,603	10,728
Redemption of bank loans	-14,397	-2,871
Payment of principal on lease liabilities	-1,267	-1,015
Change in current and non-current lease liabilities	-129	-86
Net cash flows used in financing activities	-8,190	6,756
Net effects of currency translation and
consolidation changes in cash and cash equivalents	-753	168
Changes in cash and cash equivalents	2,535	11,805
Cash and cash equivalents at the beginning of the period	23,523	27,303
Cash and cash equivalents at the end of the period	26,058	39,108

IMPRINT

Contact:

init innovation in traffic systems SE Kaeppelestrasse 4-10 76131 Karlsruhe

Germany

PO Box 3380 76019 Karlsruhe

Germany

Ph.+49.721.6100.0 Fax +49 721 6100 399

ir@initse.com

www.initse.com

Disclaimer:

This distribution of our report does not represent and is not intended as an offer for trade in shares.

This report contains future-related statements, which are based on current estimates of the company with regard to future developments. Such statements are inherently subject to risks and un-certainties, as they may be affected by factors that are neither controllable nor foreseeable by init, such as on the development of the future market environment and economic conditions, the behaviour of other market participants and government measures. If one of these uncontrollable or unforeseeable factors occurs respectively changes or the assumptions on which these statements are based prove inaccurate, actual developments and results could differ materially from the results cited explicitly or contained implicitly in these statements.

FINANCIAL CALENDAR 2025

Q2 22 May

Q3 14 August

Publication Half-year Financial Report 2025

Shareholders' Meeting 2025 in Karlsruhe

Q4 13 November

Publication Quarterly Statement 3/2025

24-25 November

Equity Forum