Kapsch TrafficCom AG

Interim / Quarterly Report • Nov 19, 2025

Kapsch TrafficCom

First half year of 2025/26.

Half-year financial report pursuant to Sec. 125 Austrian Stock Exchange Act (BörseG) 2018.

Selected key data.

2024/25: Refers to the financial year (April 1 until March 31)

H1: First half of a financial year (April 1 until September 30)

PP: Percentage points

Unless otherwise stated, all values in EUR million.

Earnings data	2024/25	H1 2024/25	H1 2025/26	+/-
Revenues	530.3	274.8	200.0	-27.2%
Share of tolling segment	74.1%	74.7%	72.5%	-2.2 PP
Share of traffic management segment	25.9%	25.3%	27.5%	2.2 PP
EBITDA1)	29.0	7.1	17.0	>100%
EBITDA margin	5.5%	2.6%	8.5%	5.9 PP
EBIT	12.6	-0.7	10.4	—
EBIT margin	2.4%	-0.3%	5.2%	—
Result before income tax	-4.3	-8.8	0.6	—
Result for the period	-3.1	-6.4	2.2	—
Result for the period attributable to equity holders	-6.9	-10.5	2.1	—
Earnings per share in EUR	-0.48	-0.73	0.15	—
Business segments	2024/25	H1 2024/25	H1 2025/26	+/-
Tolling
Revenues	393.0	205.1	145.0	-29.3%
EBIT	12.0	2.6	13.3	>100%
EBIT margin	3.1%	1.2%	9.2%	7.9 PP
Traffic management
Revenues	137.3	69.6	55.1	-20.9%
EBIT	0.5	-3.3	-3.0	9.5%
EBIT margin	0.4%	-4.7%	-5.4%	-0.7 PP
Revenues by region	2024/25	H1 2024/25	H1 2025/26	+/-
EMEA	48.5%	49.3%	42.8%	-6.6 PP
Americas	47.0%	46.1%	52.2%	6.1 PP
APAC	4.5%	4.6%	5.1%	0.5 PP
Balance sheet data	March 31, 2025		Sept. 30, 2025	+/-
Total assets	454.4		418.8	-7.8%
Total equity2)	91.0		96.0	5.5%
Equity ratio2)	20.0%		22.9%	2.9 PP
Net debt3)	101.5		112.5	10.9%
Gearing4)	111.5%		117.2%	5.7 PP
Net working capital5)	72.0		85.7	19.0%
Cash flow	2024/25	H1 2024/25	H1 2025/26	+/-
Net capital expenditures6)	7.6	2.5	3.6	46.7%
Free cash flow7)	21.2	1.3	-4.5	—
Other information	2024/25	H1 2024/25	H1 2025/26	+/-
Employees, end of period	3,041	3,719	2,813	-24.4%
On-board units, in million units	7.91	4.39

¹⁾ Operating result before amortization, depreciation and impairment

²⁾ Including non-controlling interests

³⁾ Cash and cash equivalents + other current financial assets - financial liabilities - lease liabilities

⁴⁾ Net debt/equity

⁵⁾ Inventories + trade receivables and other current assets + current contract assets + current tax receivables - trade payables - current contract liabilities - current tax liabilities - current provisions - current other liabilities and deferred income

⁶⁾ Capital expenditure and proceeds from the disposal of property, plant and equipment and intangible assets

⁷⁾ Cash flow from operating activities + cash flow from investing activities

Headlines H1 2025/26.

EUR 200.0 million -27.2%

EUR 10.4 million —

Revenues H1 EBIT H1 Earnings per share H1

EUR 0.15 —

Revenue decline by 27% from EUR 275 million to EUR 200 million.

• Removal of two major operation projects in the EMEA region (Belarus and South Africa).
• Generally difficult market situation with project postponements and delayed project awards.
• Order intake of EUR 224 million below expectations.

Settlement agreement with the Federal Republic of Germany in June.

• Effect on earnings of EUR 23 million in EBIT in the first quarter.
• Cash inflow of EUR 27 million in the second quarter.

EBIT rose to EUR 10 million due to the Germany effect.

• Without the one-time effect, EBIT would have been significantly negative at EUR -13 million.
• Cost basis will be adjusted to current revenue levels.

Financial situation appears mixed.

• Equity ratio increased to 23%.
• Free cash flow negative at EUR -4 million.
• Gearing ratio rose to 117%.

Outlook for the full year 2025/26 adjusted.

• Revenue decline to EUR 450 million expected (previously: EUR 510 million expected).
• EBIT expected to be at EUR 25 million (previously: EUR 45 million).
• Increased focus on order intake and adjustments to the current revenue level.

Letter from the CEO.

Dear Shareholders,

The first half of the 2025/26 financial year was disappointing for the Kapsch TrafficCom Group. Revenue fell significantly short of our expectations. The fact that the causes are largely beyond our direct control does not change the fact that we must adjust costs to the lower revenue level. Nevertheless, the special effect from Germany enabled a positive result for the past six months.

Project postponements and delays led to a revenue decline.

Settlement agreement with Germany.

At the end of June, a settlement agreement was reached with the Federal Republic of Germany in connection with the termination of the contract for automatic control of the infrastructure charge (passenger car toll) in 2019. The effect on earnings was already evident in the first quarter at EUR 23 million, and the agreed payment of around EUR 27 million to the subsidiary MTS Maut & Telematik Services GmbH was made at the beginning of the second quarter in July.

Earnings development.

Revenue amounted to EUR 200 million in the reporting period, compared with EUR 275 million in the same period of the previous year, representing a decline of 27% or EUR 75 million. Of this, around EUR 40 million was related to the loss of two major tolling projects in the EMEA region: The termination of the tolling project in the South African province of Gauteng and the deconsolidation of the Belarusian company that operates the tolling system in Belarus. In North America, the relocation of manufacturing also led to a temporary interruption and a corresponding backlog in deliveries. The further decline reflects the absence of projects in almost all regions that we had expected.

We see the main reasons for this in the generally difficult market situation: Some large project tenders or their award have been delayed, and we have also failed to win a number of smaller projects that we had expected to secure. Our insight into the overall market shows us that

First half of 2025/26: Revenues: EUR 200 million (-27.2%) EBIT: EUR 10 million

not only Kapsch TrafficCom, but the entire industry is affected by these conditions. Despite infrastructure packages designed to stimulate the economy, the corresponding investments are still pending. Overall, public procurement has slowed down. Both our own and external market analyses predicted annual market growth of around 8%. I very much doubt that this expectation will be met this year.

In terms of costs, the first half of the year went according to plan, but our organization is geared up for the expected higher annual revenue level of EUR 510 million. As already mentioned, this means that adjustments will be necessary. EBIT reached EUR 10 million, compared with EUR -1 million in the previous year. This includes the special effect from the agreement with the Federal Republic of Germany in the first quarter, without which EBIT would have been significantly negative.

The result for the period attributable to equity holders amounted to EUR 2 million, compared with EUR -10 million in the first half of the previous year. At that time, deconsolidations had led to a one-time increase in the result for the period attributable to non-controlling interests. Earnings per share amounted to EUR 0.15 in the reporting period (previous year: EUR -0.73).

Balance sheet development.

The cash inflow from Germany occurred in the second quarter. We used a large portion of this to repay liabilities to suppliers and, as agreed, for an early special repayment of our financial liabilities. Free cash flow amounted to EUR -4 million in the reporting period, compared with EUR 1 million in the previous year.

Total assets decreased compared to the balance sheet date of March 31, 2025, with equity increasing slightly due to the positive result. The equity ratio therefore rose to 23% after 20% at the end of March. The gearing ratio was 117% after 111%.

Sustainable mobility of the future.

On the project side, the past six months have also been very encouraging. We were able to complete implementation projects and win new projects. Although order intake in the first half of the year was below expectations at EUR 224 million, the order backlog at the end of September amounted to EUR 1.2 billion.

I would like to share with you a milestone in our technological leadership. For more than 15 years, we have been investing in what we believe will be the mobility of the future: Connected vehicle (CV) communication, i.e., communication between vehicles and between vehicles and roadside infrastructure. Recently, one of our US customers

decided to introduce the world's first production-ready CV tolling system on an expressway. The project will integrate a conventional roadside tolling system with data from connected vehicles. This is a test project for largescale deployment. It is a technological milestone for Kapsch TrafficCom and the entire industry.

Technological milestone: The world's first production-ready CV tolling system.

Outlook.

Nevertheless, our focus is now on order intake and the necessary adjustments to the current revenue level. However, we will also ensure that we retain sufficient leeway for the subsequent market recovery.

Outlook for the full year 2025/26: Revenue decline expected.

Based on current developments, we have adjusted our outlook for the full year 2025/26: We now expect revenue to decline to EUR 450 million. Operating profit (EBIT) is expected to be at EUR 25 million, taking into account the income from the arbitration proceedings with the Federal Republic of Germany.

Sincerely,

Georg Kapsch Chief Executive Officer

Capital markets.

Share price development.

Price development in the first half of 2025/26.

The Kapsch TrafficCom share underperformed the overall market and the ATX Prime benchmark index in the first half of the 2025/26 financial year. The share price was characterized by several highs and lows, while the ATX Prime recorded a slight but steady increase. At the end of the half-year, the share price closed 2.0% above its opening value, while the ATX Prime index rose by 11.9% over the same period. Looking at performance since the beginning of 2025, Kapsch TrafficCom was able to keep pace with the index per-

formance of +26.9% with a gain of +25.0%.

Market cap at the end of H1 2025/26:

EUR 104.4 million

Based on a closing price of EUR 7.16 on March 31, Kapsch TrafficCom

initially experienced volatile trading, reaching a low for the reporting period of EUR 5.94 (intraday) on April 7. The share price then recovered to reach a high for the reporting half-year of EUR 7.88 (intraday) on May 20. This was followed by another sharp decline in June before the price stabilized again. At the end of the half-year on September 30, 2025, the share closed at EUR 7.30.

Development of the Kapsch TrafficCom share and ATX Prime in the current financial year.

Share indicators.

in EUR, unless otherwise stated	H1 2024/25	H1 2025/26
Earnings per share	-0.73	0.15
High (intraday)	9.28	7.88
Low (intraday)	7.64	5.94
Closing price on September 30	7.96	7.30
Share performance	-6.4%	+2.0%
Ø trading volume (shares, double counting)	7,550	14,846

Analysts.

In July 2025, the research firm Montega AG published its initial study on Kapsch TrafficCom. Since then, these three financial institutions have reported on the share (in alphabetical order):

• Erste Group Bank
• Montega
• Oddo BHF

Investor Relations activities in the first half of 2025/26.

Kapsch TrafficCom's Investor Relations team continued to be available for investor inquiries and actively took opportunities to intensify contact with capital market participants. In particular, the following activities took place in the first half of 2025/26:

• Investor conference Oddo BHF/Raiffeisen Bank International, Zürs
• Investor conference Erste Group Bank, Warsaw
• Investor conference Montega, Hamburg
• Numerous direct telephone calls and e-mails

Dividend.

In accordance with the financing restructuring agreement, the Executive Board proposed to the Annual General Meeting that no dividend be distributed for the financial year 2024/25. The Annual General Meeting approved this proposal.

Annual General Meeting 2025.

The Annual General Meeting of Kapsch TrafficCom AG took place on September 3, 2025. The following resolutions were adopted:

■ Resolution on the allocation of the balance sheet profit: No dividend payout for financial year 2024/25; retained profits to be carried forward to new account.

Valid votes: 10,105,918 (70.67%)

Approved by: 10,105,918 votes (no votes against, no abstentions)

■ Resolution on the formal approval of the actions of the members of the Executive Board for the financial year 2024/25.

Valid votes: 10,105,718 (70.67%)

Approved by: 10,105,718 votes (no votes against, abstentions: 200 votes)

■ Resolution on the formal approval of the actions of the members of the Supervisory Board for the financial year 2024/25.

Valid votes: 10,105,718 (70.67%)

Approved by: 10,105,718 votes (no votes against, abstentions: 200 votes)

■ Appointment of PwC Wirtschaftsprüfung GmbH, Vienna, as auditor, group auditor, and auditor of the sustainability statement for the 2025/26 financial year.

Valid votes: 10,105,605 (70.67%)

Approved by: 10,105,605 votes (no votes against, abstentions: 100 votes)

■ Resolution on the remuneration report 2024/25.

Valid votes: 10,071,087 (70.43%)

Approved by: 10,071,087 votes (no votes against, abstentions: 34,431 votes)

■ Election of Ms. Sonja Hammerschmid to the Supervisory Board until the end of the Annual General Meeting that decides on the discharge for the 2028/29 financial year.

Valid votes: 10,105,233 (70.67%)

Approved by: 10,105,233 votes (no votes against, abstentions: 200 votes)

■ Authorization of the Executive Board

• to purchase own shares in accordance with Section 65 (1) no. 8 as well as (1a) and (1b) AktG both via the stock exchange and over-the-counter of up to 10% of the share capital, also by excluding the shareholders' pro rata disposal rights, as well as
• in accordance with Section 65 (1b) AktG to resolve on the sale or appropriation of own shares in a different way than via the stock exchange or via a public offer and to exclude the shareholders' pro rata subscription rights (exclusion of subscription rights), and
• to decrease the share capital of the Company by a redemption of own shares without any further resolution by the Shareholders' Meeting.

Valid votes: 8,347,859 (58.38%)

Approved by: 8,312,712 votes (votes against: 35,147, abstentions: 1,757,674 votes)

Constituent meeting of the Supervisory Board.

Following the Annual General Meeting, the constituent meeting of the Supervisory Board took place with the following elections:

Supervisory Board.

Chairwoman: Sonja Hammerschmid Deputy Chairwoman: Monika Brodey

Audit Committee.

Chairwoman: Sonja Wallner (financial expert)

Deputy Chairwoman: Monika Brodey

Member: Christian Windisch

Remuneration Committee.

Chairwoman: Sonja Hammerschmid

Member: Sonja Wallner

Contact for investors.

Investor Relations team	Marcus Handl, Teresa Hartlieb
Shareholders' telephone line	+43 50 811 1122
E-mail	IR.kapschtraffic@kapsch.net
Website	www.kapsch.net

Management Report H1 2025/26.

1. Economic conditions impacting the Group.

Kapsch TrafficCom is a globally renowned provider of transportation solutions for sustainable mobility. Innovative solutions in the application areas of tolling and traffic management contribute to a healthier world without congestion.

Vision and mission.

Kapsch TrafficCom is a globally renowned provider of transportation solutions for sustainable mobility.

Kapsch TrafficCom's mission is to develop innovative transportation solutions for sustainable mobility. Road users should be able to arrive at their

destination conveniently, safely, efficiently, and on time with a minimal environmental impact.

Market.

Kapsch TrafficCom addresses the market for Intelligent Transportation Systems (ITS). These support and optimize traffic (including infrastructure, vehicles, users and industry) and use information and communication technologies for this purpose.

Grand View Research estimates the global market size in 2024 at EUR 30.6 billion (USD 31.79 billion, converted at an exchange rate of 0.9626 as of December 31, 2024) and expects a compound annual growth rate (CAGR) of 8.3% from 2025 to 2030.

Within the ITS market, Kapsch TrafficCom addresses the areas of tolling and traffic management. The core regions of its business activities are EMEA (Europe, Middle East, Africa), Americas (North, Central, and South America), and APAC (Asia-Pacific).

Addressable market for Kapsch TrafficCom.

The addressable market for the Company – all markets worldwide addressed by Kapsch in 2024/25 with all Kapsch products and solutions – had a market size of EUR 6.9 billion in the 2024/25 financial year according to internal calculations.

Market drivers.

Kapsch TrafficCom has identified the following market drivers:

• Environmental protection
• Need for traffic infrastructure and its maintenance
• Urbanization
• New means of transportation and services
• Connected vehicles
• Data and artificial intelligence
• Data security and data protection

Further information can be found in the consolidated management report 2024/25.

Fundamental changes in the business environment of Kapsch TrafficCom.

The aforementioned market drivers have already sparked the following trends:

• While the ITS industry relied heavily on hardware in the past, it is increasingly shifting towards software platforms. More and more, module solutions and cloud applications are playing a role.
• Offered services (anything-as-a-service) put the focus on the user.
• Payment options will be integrated into mobility solutions and new payment technologies will enter the market.
• Intelligent traffic infrastructure can be achieved with more affordable sensors, modules, and connection technologies. However, specific domain knowledge and the need for customer-specific solutions remain important.
• New solutions can increasingly be rolled out on a global scale.

2. Financial performance indicators.

2.1 Result of operations.

Revenues of Kapsch TrafficCom amounted to EUR 200.0 million in the first half of the current financial year, down 27.2% (EUR 74.7 million) compared to the same period of the previous year. Geographically, revenues changed as follows:

• EMEA region (Europe, Middle East, Africa): -36.9% to EUR 85.6 million
• Americas region (North, Central and South America): -17.6% to EUR 104.3 million
• APAC region (Asia-Pacific): -19.8% auf EUR 10.1 million

EBITDA and EBIT. Earnings before depreciation and amortization (EBITDA) amounted to EUR 17.0 million (previous year: EUR 7.1 million). The operating result (earnings before interest and taxes, EBIT) came to EUR 10.4 million (previous year: EUR -0.7 million). The EBIT margin thus reached 5.2% (previous year: -0.3%). This positive earnings development was primarily driven by a one-off effect of EUR 23.4 million resulting from the settlement with the Federal Republic of Germany regarding the termination of the contract for the automated enforcement of an infrastructure charge ("passenger car toll").

In the first half of 2025/26 EBITDA and EBIT were impacted by the following effects:

• Other operating income amounted to EUR 36.5 million in the first half of 2025/26, which was EUR 27.6 million higher than in the previous year. This increase was primarily due to the settlement with the Federal Republic of Germany.
• Cost of materials and other production services decreased by EUR 30.0 million compared to the previous year. This decline was due, on the one hand, to a lower volume of implementation projects across all regions and, on the other hand, to the termination of the operation project in the South African province of Gauteng as well as the deconsolidation of Kapsch Telematic Services IOOO, which operates the tolling project in Belarus.
• Personnel expenses decreased by EUR 14.5 million compared to the previous year, primarily due to the discontinuation of the two projects in South Africa and Belarus.
• Other operating expenses decreased by EUR 9.6 million or 18.9% to EUR 41.0 million in the first half of 2025/26. In the previous year, higher expenses were partly due to losses from the deconsolidation of subsidiaries amounting to EUR 8.6 million.
• The share of results from associated companies and joint ventures amounted to EUR 7.4 million (previous year: EUR 1.6 million) and largely originated from the project in Belarus, which is no longer fully consolidated, and from autoTicket GmbH, Germany.
• Operating foreign currency effects (net) had a negative impact on EBIT of EUR -3.3 million in the first half of the current financial year (previous year: EUR -3.2 million), mainly due to the strong US dollar against the Euro.

The financial result in the first half of the current financial year amounted to EUR -9.7 million (previous year: EUR -8.1 million). Although interest expenses decreased from EUR -4.8 million to EUR -3.9 million, hyperinflation adjustments of EUR -1.0 million (previous year: EUR -1.7 million) and negative effects from exchange rate fluctuations of EUR -5.3 million (previous year: EUR -1.6 million) had to be recognized again.

For the calculation of income taxes, a theoretical income tax rate of 23% was applied. The basis for the calculation of income taxes was the consolidated result before income tax, without factoring in the (already taxed) proportional result from associated companies and joint ventures. This and the change in deferred taxes on loss carry-forwards resulted in tax income of EUR 1.6 million (previous year: EUR 2.4 million).

The result for the period in the first half of the current financial year was EUR 2.2 million (previous year: EUR -6.4 million). The result for the period attributable to equity holders amounted to EUR 2.1 million (previous year: EUR -10.5 million). In the previous year, the deconsolidations had led to a one-off increase in the profit for the period attributable to non-controlling interests.

2.2 Result of operations by segment.

Tolling.

Revenues in the tolling segment decreased by 29.3% from EUR 205.1 million to EUR 145.0 million, contributing 72.5% (previous year: 74.7%) to total revenues.

In the EMEA region, Kapsch TrafficCom recorded a revenue decline of 41.8% (EUR 42.9 million) to EUR 59.6 million in the first half of the financial year. This development was primarily due to the discontinuation of two major operation projects: The tolling project in the South African province of Gauteng ended in March 2025. In addition, the deconsolidation of Kapsch Telematic Services IOOO in Belarus led to a significant loss of revenue. In the implementation business, projects in Switzerland, Poland, Bulgaria, and Norway contributed to revenue growth, although revenues in Sweden and Austria declined. In the components business, Kapsch TrafficCom experienced a revenue decrease due to lower customer demand in South Africa and France. The service business saw a sharp decline in the heavy goods vehicle segment, which had benefited from a one-off positive effect in the previous period.

In the Americas region, revenues in the tolling segment declined by 16.5% (EUR 15.2 million) to EUR 76.8 million. Despite this decline, the Americas region became the largest revenue contributor for Kapsch TrafficCom. In the implementation business, revenues decreased particularly in the USA, but also in Brazil and Chile. In contrast, the operations business recorded an increase. In the components business, the relocation of the manufacturing site in Canada and the associated production interruption over several weeks also led to a revenue decline.

The APAC region recorded a revenue decrease of 20.2% in the first half of 2025/26, generating total revenues of EUR 8.5 million. While the implementation business achieved growth, particularly in New Zealand and also in Australia, the operations and components businesses declined, partly due to intra-year volatility.

Segment tolling by business type.

in EUR million	H1 2024/25	H1 2025/26	+/-
Revenues	205.1	145.0	-29.3%
Implementation	57.0	52.0	-8.8%
Operations	110.3	63.9	-42.1%
Components	37.8	29.1	-23.2%
EBIT	2.6	13.3	>100%

EBIT. EBIT in the tolling segment amounted to EUR 13.3 million in the first half of 2025/26, representing an increase of EUR 10.8 million compared to the previous year (EUR 2.6 million). This positive development was driven by income of EUR 23.4 million from the settlement agreement with the Federal Republic of Germany in the first quarter of the financial year. Excluding this one-off effect, Kapsch TrafficCom recorded

a negative EBIT in the tolling segment, mainly due to the discontinuation of two operation projects and the associated revenue loss.

Tolling EBIT: EUR 13.3 million (>100%)

The operating result in the operations business declined by EUR 24.6 million compared to the previous year, and the components business also reported a decrease in earnings, primarily due to the relocation of the North American manufacturing facility and the associated short-term production downtime.

Expenses largely reflected revenue development: Cost of materials and other production services decreased by 33.6%, and personnel expenses fell by 10.7%.

Traffic management.

Revenues in the traffic management (TM) segment amounted to EUR 55.1 million in the first half of 2025/26, representing a decrease of 20.9% compared to the previous year (EUR 69.6 million). The segment contributed 27.5% to total revenues (previous year: 25.3%).

The developments in all regions were as follows:

■ EMEA Region: -21.5% ■ Americas Region: -20.4% ■ APAC Region: -17.4%

Revenues declined across all regions: In the EMEA region, revenues fell by 21.5% from EUR 33.1 million to EUR 26.0 million. In the Americas region, revenues decreased by 20.4% from EUR 34.6 million to EUR 27.6 million. In the APAC region, revenues declined by 17.4% from EUR 1.9 million to EUR 1.6 million.

Similar to the development in the tolling segment, the Americas region became the strongest contributor to revenues in the traffic management segment during the reporting period.

Performance across business areas was mixed. The implementation business recorded a revenue decline of 30.4% compared to the previous year, particularly affecting Brazil, Ireland, the USA, Chile, and Mexico. In contrast, Guatemala achieved a revenue increase. The components business reported a significant decline of 94.2%, while the operations business reflected developments in Argentina and the United Kingdom with a revenue decrease of 4.7%.

Segment traffic management by business type.

in EUR million	H1 2024/25	H1 2025/26	+/-
Revenues	69.6	55.1	-20.9%
Implementation	28.6	19.9	-30.4%
Operations	36.6	34.9	-4.7%
Components	4.4	0.3	-94.2%
EBIT	-3.3	-3.0	9.5%

EBIT. EBIT in the traffic management segment amounted to EUR -3.0 million in the first half of 2025/26, slightly above the previous year's figure of EUR -3.3 million, which had included a negative one-off effect of EUR -7.5 million from a deconsolidation. In line with the 20.9% decline in revenues, cost of materials and other production services decreased by 14.0%, personnel expenses by 13.5%, and other operating expenses by 38.7%. TM EBIT: EUR -3.0 million (+9%)

2.3 Net assets position.

The balance sheet total as of September 30, 2025 amounted to EUR 418.8 million (March 31, 2025: EUR 454.4 million).

Assets.

Non-current assets slightly decreased to EUR 151.8 million as of September 30, 2025 (March 31, 2025: EUR 152.2 million). The decline was mainly due to a reduction in property, plant, and equipment of EUR 4.2 million and other non-current assets of EUR 0.9 million. In contrast, shares in associated companies and joint ventures increased by EUR 1.6 million, non-current contract assets by EUR 0.8 million, and deferred tax assets by EUR 2.2 million.

Current assets decreased by EUR 35.3 million to EUR 267.0 million (March 31, 2025: EUR 302.2 million). The most significant changes related to inventories and current contract assets, which decreased by EUR 33.0 million. Trade receivables and other current assets increased by EUR 15.3 million. Cash and cash equivalents decreased by EUR 19.0 million compared to March 31, 2025, totaling EUR 28.8 million.

In total, assets held for sale under IFRS 5 amounted to EUR 6.3 million (March 31, 2025: EUR 4.9 million). In addition to property, plant, and equipment, this mainly included trade receivables and cash and cash equivalents.

Liabilities and equity.

As of September 30, 2025, equity amounted to EUR 96.0 million. The increase of EUR 5.0 million compared to the balance sheet date of March 31, 2025 mainly reflects the positive result for the period (EUR 2.2 million) and positive other comprehensive income from currency translation differences (EUR 2.8 million) in the first half of 2025/26.

The equity ratio as of September 30, 2025 increased to 22.9% (March 31, 2025: 20.0%).

Non-current financial liabilities decreased by EUR 11.8 million in the first half of 2025/26, primarily due to the reclassification to current financial liabilities in line with planned repayments and remaining maturities (EUR 11.7 million).

Current financial liabilities increased by a total of EUR 7.9 million. The main changes resulted from the reclassification due to maturities (EUR 11.7 million), repayments totaling EUR 9.7 million, and additions amounting to EUR 5.8 million.

2.4 Financial position.

Cash flow.

Cash flow from operating activities was negative in the first half of the current financial year at EUR -6.7 million (previous year: EUR 1.6 million). The change in net working capital amounted to EUR -7.8 million (previous year: EUR -14.2 million). This was due to the following effects: Inventories decreased by EUR 12.6 million (previous year: decrease of EUR 2.4 million). The sum of trade receivables, other assets, and contract assets decreased by EUR 2.9 million (previous year: decrease of EUR 1.5 million). The sum of trade payables, other current liabilities, and contract liabilities decreased by EUR 15.3 million (previous year: decrease of EUR 13.8 million). Current provisions also decreased by EUR 8.0 million (previous year: decrease of EUR 4.3 million).

Cash flow from investing activities amounted to EUR 2.3 million in the first half of 2025/26 (previous year: EUR -0.3 million). Investments in property, plant, and equipment totaled EUR -2.3 million (previous year: EUR -2.1 million). Payments for the purchase of securities, investments, and other non-current financial assets decreased to EUR -0.3 million (previous year: EUR -0.8 million), while proceeds from the sale of securities, investments, and other non-current financial assets decreased to EUR 0.5 million (previous year: EUR 1.0 million). Proceeds from dividends from companies consolidated at-equity related to profit distributions from the joint ventures Kapsch Telematic Services IOOO and Parat Ltd. amounted to EUR 5.5 million (previous year: EUR 2.5 million from autoTicket GmbH, Germany).

Free cash flow, defined as the sum of cash flow from operating and investing activities, amounted to EUR -4.5 million in the first half of 2025/26 (previous year: EUR 1.3 million).

Cash flow from financing activities amounted to EUR -12.7 million in the first half of the year (previous year: EUR -5.5 million). The change mainly resulted from the reclassification of existing financial liabilities and the increase in new short-term financing totaling EUR 5.8 million (previous year: EUR 7.4 million), the repayment of current financial liabilities amounting to EUR -9.7 million (previous year: EUR -2.3 million), the ongoing repayment of lease liabilities amounting to EUR -4.1 million (previous year: EUR -5.6 million), as well as interest paid amounting to EUR -4.7 million (previous year: EUR -5.0 million).

Cash and cash equivalents as of September 30, 2025 totaled EUR 28.8 million (March 31, 2025: EUR 47.8 million).

Key figures as of September 30, 2025.

Net debt amounted to EUR 112.5 million (March 31, 2025: EUR 101.5 million), which corresponds to a gearing ratio of 117.2% (March 31, 2025: 111.5%). The increase in net debt was mainly due to a decrease in financial liabilities (EUR -3.9 million) and lease liabilities (EUR -4.2 million), as well as a significantly lower level of cash and cash equivalents (EUR -19.0 million).

3. Information on major transactions with related parties and changes in the Group structure.

Apart from the transactions disclosed in the consolidated financial statements 2024/25 and the information provided in note 14 of this report, there were no other transactions with related parties that had a significant impact on the financial position or operating result during the first half of the financial year.

There were no changes in the scope of consolidation in the first half of 2025/26.

4. Significant events occurring after balance sheet date.

No significant events have occurred after September 30, 2025, that need to be reported.

5. Risk reporting.

The Kapsch TrafficCom Group has a Company-wide risk management system (Enterprise Risk Management, ERM). The aim of the system is to identify, evaluate, and control risks that could significantly impair the achievement of strategic, operational, and financial objectives at an early stage. The ERM thus makes a valuable contribution to corporate management and security. The focus is not on blanket risk avoidance, but on conscious, controlled risk management – including the exploitation of opportunities that arise.

Risks are regularly identified, assessed, aggregated, and documented in a structured process. The resulting risk report is prepared on a quarterly basis and made available to the Executive Board and the Audit Committee of the Supervisory Board.

Project-oriented risk management is embedded in all major customer and development projects and begins with a systematic risk analysis during the quotation phase. This ensures that a basis for decision-making is established at an early stage and that appropriate control measures can be planned.

The material risks of Kapsch TrafficCom are as follows:

• Strategic risks
• Market and industry risks
• Project and supply chain risks
• Technological and innovation risks
• ESG-related risks
• Financial risks: Foreign exchange risk, interest rate risk, liquidity risk, credit risk
• IT and cyber risks
• Legal and compliance risks
• Personnel risks

The major risks and opportunities faced by the Group are addressed in Section 2.2 of the consolidated management report 2024/25.

The Internal Control System (ICS) is an integral part of the governance structure of the Kapsch TrafficCom Group and is designed to ensure the regularity of accounting and compliance with legal and internal requirements. It comprises organizational regulations, control mechanisms at the process level, and technical measures within the IT systems. Through clear responsibilities, the dual control principle, automated system controls, and regular training, the ICS contributes to reducing operational risks and ensuring compliance with regulatory requirements. The ICS is presented in section 2.3 of the consolidated management report 2024/25.

6. Outlook to the second half of the current financial year.

Based on current developments, the outlook for the full year 2025/26 was adjusted on October 27: Kapsch Traffic-Com now expects revenues to decline to EUR 450 million. The main reasons for this remain the deconsolidation of several companies in the past financial year and the current difficult market environment. Operating profit (EBIT) is expected to be EUR 25 million, taking into account the income from the arbitration proceedings with the Federal Republic of Germany.

In the coming months, management will focus on order intake and adjusting costs to the current revenue level. The order backlog of EUR 1.2 billion continues to form a solid basis for growth, although some larger projects will only be reflected in revenue in the medium to long term.

Statement of all Members of the Executive Board.

Pursuant to § 125 subsection 1 Stock Exchange Act 2018.

We confirm to the best of our knowledge that the condensed consolidated interim financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group as required by the applicable accounting standards and that the consolidated management report gives a true and fair view of important events that have occurred during the first six months of the financial year and their impact on the condensed consolidated interim financial statements and of the principal risks and uncertainties for the remaining six months of the financial year.

Vienna, November 18, 2025

The Executive Board

Georg Kapsch Chief Executive Officer Alfredo Escribá Gallego Executive Board Member Samuel Kapsch Executive Board Member

Condensed Consolidated Interim Financial Information

as of September 30, 2025.*)

Kapsch TrafficCom – Consolidated statement of comprehensive income.

in EUR k	Note	H1 2024/25	H1 2025/26
Revenues	(2)	274,770	200,025
Other operating income	(3)	8,889	36,509
Changes in finished and unfinished goods		-421	-3,212
Cost of materials and other production services		-100,882	-70,872
Personnel expenses	(4)	-126,260	-111,799
Other operating expenses	(5)	-50,579	-41,011
Proportional result of associates and joint ventures	(8)	1,591	7,403
Operating result before amortization, depreciation and impairment (EBITDA)		7,109	17,043
Amortization and depreciation		-7,823	-6,678
Impairment charge and write-up from impairments		0	0
Operating result (EBIT)		-714	10,365
Finance income		2,291	2,600
Finance costs		-10,352	-12,345
Financial result		-8,061	-9,745
Result before income tax		-8,775	621
Income tax	(6)	2,384	1,560
Result for the period		-6,391	2,180
Equity holders of the company		-10,472	2,112
Non-controlling interests		4,081	69
Earnings per share from the result for the period attributable to the equity holders of the company (in EUR)1)		-0.73	0.15
Other comprehensive income for the period
Currency translation differences		7,951	6,519
Currency translation differences from net investments in foreign operations		-1,926	-4,824
Income tax relating to items subsequently to be reclassified to the result for the period		443	1,110
Total items subsequently to be reclassified to the result for the period		6,467	2,805
Total items subsequently not to be reclassified to the result for the period		-17	0
Other comprehensive income for the period net of tax		6,450	2,805
Total comprehensive income for the period		60	4,985
Equity holders of the company		-691	5,366
Non-controlling interests		751	-380

¹⁾ Earnings per share diluted = undiluted and relating to 14.3 million shares.

^*) The condensed consolidated interim financial information has neither been audited nor been reviewed by an auditor.

Kapsch TrafficCom – Consolidated balance sheet.

in EUR k	Note	March 31, 2025	Sept. 30, 2025
ASSETS
Property, plant and equipment	(7)	43,058	38,864
Intangible assets	(7)	27,136	27,269
Interests in associates and joint ventures	(8)	18,677	20,266
Other non-current financial assets and investments	(9)	3,419	3,439
Non-current contract assets		847	1,666
Other non-current assets1)	(9)	5,707	4,771
Deferred tax assets		53,359	55,542
Non-current assets		152,203	151,817
Inventories		49,032	36,437
Trade receivables and other current assets1)	(9)	120,559	135,906
Current contract assets	(9)	73,037	52,627
Current tax receivables		5,480	5,664
Other current financial assets	(9)	1,358	1,304
Cash and cash equivalents	(9)	47,806	28,762
Assets held for sale	(13)	4,948	6,251
Current assets		302,219	266,952
TOTAL ASSETS		454,422	418,770
EQUITY
Share capital		14,300	14,300
Capital reserve		127,686	127,686
Retained earnings and other reserves		-52,941	-47,576
Capital and reserves attributable to equity holders of the company		89,045	94,411
Non-controlling interests		1,971	1,591
TOTAL EQUITY		91,016	96,001
LIABILITIES
Non-current financial liabilities	(9,10)	96,413	84,662
Non-current lease liabilities	(9)	24,580	20,794
Liabilities from post-employment benefits to employees		21,253	20,427
Non-current provisions	(11)	1,565	2,640
Non-current contract liabilities		8,745	6,582
Other non-current liabilities	(9)	255	236
Deferred tax liabilities		1,358	1,736
Non-current liabilities		154,169	137,076
Current financial liabilities	(9,10)	21,977	29,866
Current lease liabilities	(9)	7,674	7,236
Trade payables	(9)	58,794	40,478
Current contract liabilities		43,569	47,532
Current provisions	(11)	20,388	11,168
Current tax liabilities		6,559	2,418
Other liabilities and deferred income	(9)	46,797	43,386
Liabilities held for sale Current liabilities	(13)	3,478 209,237	3,608 185,692
TOTAL LIABILITIES		363,406	322,768
TOTAL EQUITY AND LIABILITIES		454,422	418,770

¹⁾ Non-current and current lease receivables were reclassified and are not shown separately anymore due to immateriality but are included in other non-current assets and trade receivables and other current assets.

Kapsch TrafficCom – Consolidated statement of changes in equity.

in EUR k	Share capital	Capital reserve	Other reserves	Consoli dated retained earnings	Attribut able to equity holders of the com pany	Non controlling interests	Total equity
Carrying amount as of March 31, 2024	14,300	127,686	-45,926	-5,939	90,121	-6,698	83,423
Result for the period				-10,472	-10,472	4,081	-6,391
Other comprehensive income for the period:			9,781		9,781	-3,330	6,450
Currency translation differences			9,797		9,797	-3,330	6,467
Remeasurements of liabilities from post-employment benefits			-17		-17		-17
Transactions with the owners:						6,835	6,835
Effects from changes in the scope of consolidation						6,835	6,835
Carrying amount as of September 30, 2024	14,300	127,686	-36,146	-16,411	89,429	888	90,318
Carrying amount as of March 31, 2025	14,300	127,686	-47,002	-5,939	89,045	1,971	91,016
Result for the period				2,112	2,112	69	2,180
Other comprehensive income for the period:			3,254		3,254	-449	2,805
Currency translation differences			3,254		3,254	-449	2,805
Carrying amount as of September 30, 2025	14,300	127,686	-43,748	-3,828	94,411	1,591	96,001

The registered and fully paid in share capital of Kapsch TrafficCom AG amounts to EUR 14,300,000. The total number of ordinary shares issued is 14,300,000. The shares are ordinary bearer shares and have no par value. Each share entitles the holder to one vote. At the reporting date of September 30, 2025 Kapsch TrafficCom AG does not hold any treasury shares.

Kapsch TrafficCom – Consolidated cash flow statement.

in EUR k	Note	H1 2024/25	H1 2025/26
Operating result		-714	10,365
Scheduled depreciation and amortization		7,823	6,638
Change in obligations for post-employment benefits		-1,211	-826
Change in non-current receivables, non-current contract assets and other non-current assets		-1,568	84
Change in non-current trade payables, non-current contract liabilities and other non-current liabilities
and provisions		836	-2,303
Net payments of income taxes		47	-4,570
Interest received		510	737
Other (net)		10,002	-9,068
Cash flow from earnings		15,726	1,056
Change in net working capital:
Change in trade receivables, current contract assets and other current assets		1,481	2,866
Change in inventories		2,421	12,609
Change in trade payables, current contract liabilities and other current payables		-13,794	-15,284
Change in current provisions		-4,263	-7,960
Change in net working capital		-14,154	-7,770
Cash flow from operating activities		1,572	-6,714
Payments for the purchase of property, plant and equipment	(7)	-2,063	-2,300
Payments for the purchase of intangible assets	(7)	-479	-1,369
Payments for the purchase of securities, investments and other non-current financial assets		-804	-308
Payments for the acquisition of entities (less cash and cash equivalents of these entities)		-4	0
Payments from the disposal of shares and the liquidation of subsidiaries		-451	255
Proceeds from the disposal of property, plant and equipment		60	23
Proceeds from the disposal of intangible assets		0	3
Proceeds from the disposal of securities, investments and other non-current financial assets		971	453
Dividends from companies consolidated at-equity		2,500	5,495
Cash flow from investing activities		-270	2,253
Free cash flow1)		1,302	-4,461
Increase in current financial liabilities	(10)	7,437	5,819
Decrease in current financial liabilities	(10)	-2,345	-9,683
Lease payments		-5,623	-4,127
Interest paid		-4,999	-4,719
Cash flow from financing activities		-5,530	-12,711
Cash and cash equivalents at beginning of year		33,376	47,806
Changes in cash and cash equivalents2)		-4,228	-17,171
Exchange gains/losses		570	-1,233
Assets held for sale		0	-639

¹⁾ Cash flow from operating activities + cash flow from investing activities

²⁾ Free cash flow + cash flow from financing activities

Selected notes to the condensed consolidated interim financial statements.

Outline.

General information	22–23
1 – General information	22
Consolidated statement of comprehensive income	23–25
2 – Segment information 3 – Other operating income 4 – Personnel expenses 5 – Other operating expenses 6 – Income tax	23 24 24 24 25
Consolidated balance sheet	25–31
7 – Property, plant and equipment and intangible assets 8 – Interests in associates and joint ventures 9 – Financial instruments by category 10 – Financial liabilities 11 – Provisions 12 – Contingent liabilities and other commitments 13 – Assets and Liabilities held for sale	25 26 27 28 29 30 31
Other information 14 – Related party transactions	31–33 31
15 – Risk and capital management	32
16 – New and amended standards and interpretations	33
17 – Significant events occurring after September 30, 2025	33

1 General information.

Kapsch TrafficCom is a global supplier of superior technologies, solutions, and services in the market for Intelligent Transportation Systems (ITS). These support and optimize traffic and use information and communication technologies for this purpose.

Kapsch TrafficCom Group operates in two segments: Tolling and traffic management.

Tolling.

This segment comprises activities relating to the implementation and the technical and commercial operation of toll collection systems. Projects are generally awarded by public agencies or private concessionaires as part of tender procedures. Toll collection systems may comprise individual traffic lanes or road sections and nation-wide road networks. The manufacture and procurement of components both for the expansion and adaptation of the systems installed by Kapsch TrafficCom and on behalf of third parties complement the portfolio of Kapsch TrafficCom; toll services for business customers and private customers further enhance it.

Traffic management.

This segment primarily comprises activities relating to the implementation and operation of systems and solutions for controlling traffic and mobility behavior as well as the associated components business. The strategic focus is on the areas of traffic optimization, decision intelligence (analysis, simulation and prediction of traffic) and the operation of mobility platforms and services. One basis for this is the use of increasing amounts of data for analysis, simulation and intelligent control of traffic flows and mobility behavior. Although public authorities are the main customers in the traffic management segment, private companies are also involved.

1.1 Group structure and consolidated group.

The parent company (reporting entity) of this Group is Kapsch TrafficCom AG. The company is a joint stock corporation incorporated and domiciled in Vienna, Austria. The address of its registered office is 1120 Vienna, Am Europlatz 2.

Further information on the Group structure and the scope of consolidation can be found in the consolidated financial statements as of March 31, 2025.

1.2 Basis of preparation.

These condensed consolidated interim financial statements for the first half of the financial year ended September 30, 2025 have been prepared in accordance with the International Financial Reporting Standards (IFRS) issued by the IASB, as adopted by the EU, in accordance with IAS 34 Interim Financial Statements, and should only be read in conjunction with the annual consolidated financial statements for the year ended March 31, 2025.

The condensed consolidated interim financial statements have not been audited or reviewed by an auditor.

For ease of presentation, amounts have been rounded off and, unless indicated otherwise, are presented in thousands of Euro (EUR k). However, calculations are made using exact amounts, including the digits not shown, which may lead to rounding differences.

The accounting and valuation principles used in these condensed consolidated interim financial statements for the first half of the financial year ending September 30, 2025 are generally consistent with those applied in the consolidated financial statements as of March 31, 2025 (see note 35). An exemption is the new or amended IFRS and IFRIC disclosed in note 16.

1.3 Material accounting estimates and assumptions.

The preparation of the half-year financial report requires the use of estimates and assumptions regarding future developments. These influence the amount and disclosure of the assets and liabilities recognized on the balance sheet date and the income and expenses recognized during the reporting period. Estimates are made to the best of the Management Board's knowledge. Nevertheless, the actual values may differ from these estimates. All estimates and assessments are reassessed on an ongoing basis and are based on past experience and other factors, including expectations regarding future events that appear reasonable under the given circumstances. The resulting accounting estimates will generally deviate from the actual results.

The estimates and assumptions made by management are in line with those adopted in the consolidated financial statements for the year ended March 31, 2025 (note 1.4) and described therein. These have also been applied to the financial statements for the first half of 2025/26.

2 Segment information.

The segment results by business type, which also correspond to performance obligations pursuant to IFRS 15, are as follows:

Tolling 189,028	Traffic Manage ment	Total	Tolling	Traffic
				Manage	Total
				ment
	68,866	257,894	145,917	76,106	222,023
16,104	773	16,877	-952	-21,045	-21,998
205,131	69,639	274,770	144,965	55,060	200,025
57,010	28,610	85,620	52,021	19,905	71,926
110,286	36,612	146,899	63,879	34,899	98,777
37,835	4,416	42,252	29,065	257	29,322
5,244	3,645	8,889	34,876	1,633	36,509
-29	-391	-421	-3,721	509	-3,212
-81,229	-19,653	-100,882	-53,969	-16,904	-70,872
-90,958	-35,302	-126,260	-81,260	-30,539	-111,799
-30,314	-20,265	-50,579	-28,594	-12,417	-41,011
1,358	234	1,591	7,320	83	7,403
9,203	-2,094	7,109	19,618	-2,575	17,043
-6,650	-1,173	-7,823	-6,294	-383	-6,678
2,553	-3,267	-714	13,323	-2,958	10,365
1.2%	-4.7%	-0.3%	9.2%	-5.4%	5.2%

As in the previous year, no customer contributed more than 10% of revenues in the first half of 2025/26.

3 Other operating income.

	H1 2024/25	H1 2025/26
Compensation claim from the Federal Republic of Germany	0	23,365
Exchange rate gains from operating activities	2,678	5,319
Lease income from the rent of OBUs	0	4,807
Income from the proportional reimbursement of consulting costs	2,760	0
Income from the deconsolidation of subsidiaries	1,772	0
Sundry operating income	1,678	3,018
Total	8,889	36,509

At the end of June 2025, a settlement agreement was reached with the Federal Republic of Germany in connection with the termination of the contract for the automatic monitoring of the infrastructure charge (passenger car toll) in 2019. The resulting income of EUR 23.4 million was recognized under other operating income.

Foreign exchange gains from operating activities in the first half of 2025/26 and the comparative period 2024/25 mainly resulted from fluctuations in the US dollar (USD) against the Euro (EUR).

In addition, rental income of EUR 4,807 k from the leasing of on-board units was recognized under other operating income in the first half of 2025/26.

Sundry operating income includes various recharges and deferrals.

4 Personnel expenses.

Personnel expenses decreased by 11.5% to EUR 111,799 k in the first half of 2025/26, mainly due to the decrease in the number of employees.

As of September 30, 2025, the number of employees was 2,813, which is 7.5% fewer than at year end (March 31, 2025: 3,041).

5 Other operating expenses.

	H1 2024/25	H1 2025/26
Communication and IT expenses	-7,562	-9,558
Exchange rate losses from operating activities	-5,895	-8,576
Legal and consulting fees	-5,561	-5,150
Travel expenses	-3,733	-3,201
License and patent expenses	-3,106	-1,884
Automobile expenses	-1,992	-1,713
Insurance costs	-1,538	-1,608
Maintenance	-2,014	-1,446
Taxes and charges	-2,509	-1,312
Rental and other building expenses	-1,919	-1,160
Marketing and advertising expenses	-1,195	-773
Allowances on trade and other receivables	-25	-102
Losses from deconsolidation of entities	-8,645	0
Sundry operating expenses	-4,883	-4,529
Total	-50,579	-41,011

Communication and IT expenses increased by EUR 1,996 k compared to the previous year, mainly due to the implementation of a new ERP system in Austria.

Exchange rate losses from operating activities rose by EUR 2,680 k year-on-year, primarily due to fluctuations in the US dollar (USD) against the Euro (EUR). Legal and consulting expenses remained at the prior-year level.

In the previous year, losses from the deconsolidation of entities were recognized, mainly resulting from the sale of TMT Services and Supplies (Pty) Ltd., Cape Town, South Africa, as well as from the liquidation of entities in Russia and Austria.

Sundry operating expenses include various expense items, none of which exceeded EUR 1 million in the current reporting period or in the comparative period of the previous year.

6 Income tax.

Income tax relates to current taxes and to deferred tax assets and liabilities. The effective tax expense is not determined until the end of the financial year. During the financial year, Kapsch TrafficCom uses a theoretical tax rate. This rate is applied to Group earnings before tax adjusted for the already taxed proportional results from associates and joint ventures and before impairment of goodwill. At year-end, the effective tax rate may differ from the (theoretical) tax rate during the year. This may result from differences in taxation in various countries, the recognition or impairment of tax loss carry-forwards, tax allowances and permanent tax differences.

In the first half of 2025/26, a theoretical tax rate of 23% was applied (previous year: 23%). This tax rate is based on a revenue-weighted analysis of the nominal tax rates of the individual countries in which Kapsch TrafficCom operates.

7 Property, plant and equipment and intangible assets.

	H1 2024/25	H1 2025/26
Carrying amount as of March 31 of financial year	73,835	70,194
Additions	2,543	3,669
Additions of right-of-use assets from leases	5,466	2,392
Disposals	-14	-7
Disposals of right-of-use assets from leases	-703	-1,499
Depreciation, amortization and other movements	-2,867	-2,436
Depreciation on right-of-use assets from leases	-4,684	-4,201
Currency translation differences	-659	-1,321
Reclassification to assets held for sale	0	-658
Carrying amount as of September 30 of financial year	72,917	66,133

Additions in the first half of 2025/26 mainly resulted from the implementation of the new ERP system in Austria and investments related to the expansion of the leased manufacturing facility in Canada.

Additions of right-of-use assets from lease agreements in the first half of 2025/26 primarily related to a new lease for an office building in Melbourne, Australia. In the comparative period of the first half of 2024/25, right-of-use assets mainly concerned a new lease for an office building and a manufacturing facility in Canada, as well as the extension of the office lease in Duluth, USA.

As of September 30, 2025, property, plant and equipment includes right-of-use assets from lease agreements amounting to EUR 28,736 k (September 30, 2024: EUR 36,005 k).

As of September 30, 2025, there were no indications of impairment of the carrying amounts of cash-generating units, including goodwill. It is encouraging that the successful turnaround in the United States was confirmed in the first half of the financial year 2025/26. This business is largely allocated to the cash-generating unit "Tolling-Americas," which currently holds the highest goodwill.

<-- PDF CHUNK SEPARATOR -->

The downward revision of expected revenue for the full year to approximately EUR 450 million due to the generally challenging market environment is not expected to impact the recoverability of goodwill. The Group has defined and already begun implementing measures to adjust the global cost base to the lower revenue level.

For this reason, the current planning is being revised, targeting an EBIT margin of approximately 4%. Following the anticipated market recovery—mostly expected as a timing shift in project awards—the Group expects increasing revenues and significantly higher EBIT margins. Management considers this development to be sustainable.

8 Interests in associates and joint ventures.

Details of associates and joint ventures are shown in the consolidated financial statements as of March 31, 2025.

H1 2024/25	H1 2025/26
3,592	18,677
1,591	7,403
0	-298
-2,500	-5,495
-119	-21
2,564	20,266
0	18,012
2,564	2,253

As of September 30, 2025, and March 31, 2025, the shares in associated companies mainly related to Kapsch Telematic Services IOOO, Belarus, and Parat Ltd, Abu Dhabi.

As of September 30, 2025, as well as September 30, 2024, and March 31, 2025, interests in joint ventures mainly related to the joint ventures autoTicket GmbH, Germany, and Copiloto Colombia S.A.S., Colombia.

Proportional results from associates and joint ventures are split in the presentation in the income statement and are individually valued. Results from associates and joint ventures whose activities and strategic directions are part of the core business of Kapsch TrafficCom are reported in the operating result. Results from other associates and joint ventures are reported in the result before income tax.

9 Financial instruments by category.

Financial instruments by category		March 31, 2025		Sept. 30, 2025
	Fair Val ue Level	Carrying amount	Fair value	Carrying amount	Fair value
Trade receivables and other current and non-current assets		126,266	—	140,677	—
At amortized cost1)		89,784	—	90,971	—
Trade receivables (current and non-current)	Level 3	89,784	—	90,971	—
At fair value through profit or loss		0	—	0	—
Derivative financial instruments	Level 2	0	—	0	—
Other non-financial assets2)		36,482	—	49,706	—
Contract assets (non-current and current) at amortized cost1)	Level 3	73,884	—	54,293	—
Other financial assets and investments (non-current and current)		4,777	—	4,744	—
At fair value through profit or loss		2,473	2,473	2,500	2,500
Securities	Level 1	2,411	2,411	2,444	2,444
Investments	Level 3	62	62	56	56
Investments (with option to fair value through OCI)	Level 3	0	—	0	—
At amortized cost1)		2,304	—	2,244	—
Other financial assets and loans (non-current)	Level 3	946	—	939	—
Other financial assets and loans (current)	Level 3	1,358	—	1,304	—
Cash and cash equivalents at amortized cost1)	Level 3	47,806	—	28,762	—
Financial liabilities (non-current and cur rent) at amortized cost		118,390	107,463	114,528	106,855
Promissory note bond	Level 2	8,494	8,358	8,494	8,468
Project financing	Level 2	1,102	1,104	5,206	5,216
Operating loans	Level 2	100,440	89,643	91,777	84,119
Other financial liabilities	Level 2	8,354	8,358	9,051	9,053
Lease liabilities (non-current and current) at amortized cost		32,254	—	28,030	—
Lease liabilities (non-current and current)3)	—	32,254	—	28,030	—
Trade payables at amortized cost1)	Level 3	58,794	—	40,478	—
Other liabilities and deferred income (non-current and current)		47,052	—	43,622	—
At amortized cost1)		255	—	236	—
Other financial liabilities	Level 3	255	—	236	—
At fair value through profit or loss		319	319	331	331
Derivative financial instruments	Level 2	319	319	331	331
Other non-financial liabilities2)		46,478	—	43,055	—

¹⁾ No disclosure of fair value, as the carrying value of this item measured at amortized cost is a reasonable approximation in accordance with IFRS 7.29 a).

²⁾ Non-financial receivables and liabilities are only included for reconciliation with the respective balance sheet item.

³⁾ Lease liabilities belong to financial liabilities, but do not underly the disclosure requirements of IFRS 7.

Changes and fair value.

Details on the fair value hierarchies can be found in the consolidated financial statements as of March 31, 2025. No reclassifications between fair value hierarchy levels have been made since then. The introductory table in this note shows the carrying amounts.

As in the previous year, securities as of September 30, 2025 related to government bonds, bank bonds and shares in investment funds.

There were no adjustments in the first half of 2025/26 for investments measured according to Level 3.

The decrease in current contract assets of EUR 19,591 k is mainly attributable to the toll project in the province of Gauteng in South Africa and projects in Switzerland and Argentina. Trade payables decreased by EUR 18,316 k due to vendor payments.

10 Financial liabilities.

	March 31,	Sept. 30,	March 31,	Sept. 30,
	2024	2024	2025	2025
Non-current financial liabilities	91,906	74,715	96,413	84,662
Current financial liabilities	12,751	33,497	21,977	29,866
	104,657	108,213	118,390	114,528

Movements in financial liabilities are as follows:

	H1 2024/25
	Non current	Current	Total	Non current	Current	Total
Carrying amount as of March 31 of financial year	91,906	12,751	104,657	96,413	21,977	118,390
Reclassification	-16,000	16,000	0	-11,749	11,749	0
Additions	0	7,437	7,437	0	5,819	5,819
Repayments	0	-2,345	-2,345	0	-9,683	-9,683
Currency translation differences and other non-cash movements	-1,190	-346	-1,536	-3	5	2
Carrying amount as of Sep tember 30
of financial year	74,715	33,497	108,213	84,662	29,866	114,528

Additions and repayments are cash effective. Reclassifications between non-current and current financial liabilities are non-cash movements and relate to reclassifications due to repayment scheduled and remaining maturities.

The gross cash flows (including interest) of financial liabilities are as follows:

	March 31,	Sept. 30,	March 31,	Sept. 30,
	2024	2024	2025	2025
In the next 6 months	12,619	22,127	15,342	19,620
In the next 7 to 12 months	4,770	17,458	12,871	15,864
Total up to 1 year	17,390	39,585	28,213	35,484
Between 1 and 2 years	94,582	78,075	18,760	12,715
Between 2 and 3 years	0	0	10,032	10,211
Between 3 and 4 years	0	0	10,173	10,080
Between 4 and 5 years	0	0	62,274	57,995
More than 5 years	0	0	0	0
Total	111,971	117,661	129,452	126,486

11 Provisions.

	March 31, 2024	Sept. 30, 2024	March 31, 2025	Sept. 30, 2025
Non-current provisions	1,810	1,727	1,565	2,640
Current provisions	22,447	18,184	20,388	11,168
	24,257	19,910	21,953	13,808

	March 31, 2025	Addition and accu mulation	Utilization	Disposal	Reclassi fication to "liabilities held for sale"	Reclassi fication	Currency transla tion dif ferences	Sept. 30, 2025
Warranties	209	0	0	0	0	1,195	0	1,405
Provision for losses from
onerous contracts	105	0	0	0	0	-94	0	11
Projects (excl. impending losses)	0	0	0	0	0	0	0	0
Other non-current provisions	1,250	68	-38	-26	0	-20	-11	1,224
Non-current provisions	1,565	68	-38	-26	0	1,081	-11	2,640
Warranties	1,150	239	0	0	0	-1,195	-14	179
Provision for losses from
onerous contracts	15,408	1,270	0	-8,526	0	94	-169	8,077
Projects (excl. impending losses)	2,059	295	-25	-222	0	0	-227	1,880
Legal fees, costs of litigation
and contract risks	1,062	0	-383	0	0	0	0	679
Provision for restructuring costs	0	0	0	0	0	0	0	0
Other current provisions	710	237	-394	-127	-64	20	-27	353
Current provisions	20,388	2,041	-803	-8,875	-64	-1,081	-438	11,168
Total	21,953	2,109	-841	-8,901	-64	0	-448	13,808

Provision for losses from onerous contracts as of September 30, 2025, as well as of March 31, 2025, mainly relates to implementation projects of an American subsidiary that cannot be completed profitably.

	March 31, 2024	Addition and accumu- lation	Utiliza- tion	Disposal	Reclas- sification	Currency trans- lation differ- ences	Sept. 30, 2024
Warranties	323	0	0	0	-41	0	281
Projects (excl. impending losses)	25	0	0	0	-25	0	0
Provision for restructuring costs	6	0			-6	0	0
Other non-current provisions	1,456	40	0	0	45	-95	1,445
Non-current provisions	1,810	40	0	0	-28	-95	1,727
Warranties	1,303	0	0	0	41	-9	1,335
Provision for losses from onerous contracts	17,326	291	-300	-3,839	0	-148	13,330
Projects (excl. impending losses)	1,541	0	-25	0	25	4	1,545
Legal fees, costs of litigation and contract risks	1,145	0	-276	0	0	0	868
Provision for restructuring costs	2	0	-2	0	0	0	0
Other current provisions	1,131	1,199	-93	-981	-39	-113	1,105
Current provisions	22,447	1,491	-696	-4,820	28	-267	18,184
Total	24,257	1,531	-696	-4,820	0	-362	19,910

12 Contingent liabilities and other commitments.

The Group's contingent liabilities result primarily from major projects. In the case of major projects, operating activities require the issue of extensive bank guarantees as security for bid obligations (bid bonds) or to secure possible warranty claims (performance bonds). These are issued by banks and credit insurance companies. If Kapsch TrafficCom does not fulfill its contractual obligations, there is a risk of a claim being made. This in turn leads to a recourse claim by the bank or insurer against the Group.

The contingent liabilities and other commitments solely comprise obligations owed to third parties and are in line with standard industry practice. They detail as follows:

	March 31, 2025	Sept. 30, 2025
North America (toll collection systems)	38,671	35,621
Australia (toll collection systems)	8,378	23,204
Total	47,049	58,824

Further performance and warranty guarantees from banks or insurance companies, where an outflow of resources is also considered unlikely in the future, amounted to EUR 176,905 k (March 31, 2025: EUR 176,508 k) and are not recognized in the balance sheet or as contingent liabilities.

Assets of Kapsch TrafficCom AB, Sweden, totaling EUR 10,853 k (March 31, 2025: EUR 11,061 k), were pledged as collateral for contingent liabilities in favor of a Swedish bank.

13 Assets and liabilities held for sale.

The assets and liabilities held for sale as of September 30, 2025 and March 31, 2025, are attributable to the subsidiary tolltickets GmbH, Germany. The Group intends to sell 60% and thus the majority of its shares in tolltickets GmbH, Germany.

An overview of the assets and liabilities held for sale can be found in the following table:

	March 31, 2025	Sept. 30, 2025
Property, plant and equipment	753	1,412
Other non-current financial assets and investments	38	38
Inventory	15	0
Trade receivables and other current assets	3,877	3,898
Cash and cash equivalents	265	904
Assets held for sale	4,948	6,251
Non-current lease liabilities	87	31
Current lease liabilities	122	122
Trade payables	1,570	1,721
Current provisions	73	137
Current tax liabilities	1	1
Other liabilities and deferred income	1,626	1,596
Liabilities held for sale	3,478	3,608

14 Related party transactions.

The related entities and persons of Kapsch TrafficCom include, in particular, Kapsch Group companies, including their subsidiaries, joint ventures and associated companies, their executive bodies (Executive Board and Supervisory Board, if present) and close affiliates of the bodies and companies over which they have control or significant influence.

The direct parent company of the reporting entity is KAPSCH-Group Beteiligungs GmbH, Vienna. This company is a 100% subsidiary of DATAX HandelsgmbH, Vienna, which is the controlling entity of Kapsch TrafficCom AG and the ultimate parent of Kapsch Group. Subsidiaries of Kapsch Group are referred to as affiliated companies if they are not part of the Kapsch TrafficCom Group.

The following tables provide an overview of revenues and expenses as well as receivables and liabilities for related parties.

	H1 2024/25	H1 2025/26
Parent company
Revenues	35	38
Expenses	-50	-25
Affiliated companies
Revenues	103	12
Expenses	-1,537	-1,636
Joint ventures
Revenues	1,547	5,545
Other related parties
Expenses	-100	0
	March 31, 2025	Sept. 30, 2025
Parent company
Trade receivables and other assets	234	234
Trade payables and other liabilities	-3,788	-1,618
Affiliated companies
Trade receivables and other non-current and current assets	770	784
Trade payables and other liabilities	-6,243	-3,538
Associated companies
Trade receivables and other non-current and current assets	51	51
Joint ventures
Trade receivables and other non-current and current assets	182	4,880
Other related parties
Trade receivables and other non-current and current assets	1	1
Trade payables and other payables including pension benefits	-9,182	-8,734

Liabilities from trade payables and other liabilities to affiliated companies mainly related to trade payables owed to Kapsch Aktiengesellschaft.

A comprehensive presentation of the relationships with related parties is shown in note 32 of the consolidated financial statements as of March 31, 2025.

15 Risk and capital management.

The financial risks to which Kapsch TrafficCom is exposed are described in the consolidated financial statements as of March 31, 2025 (note 33) as well as the management report of the first half of 2025/26.

16 New and amended standards and interpretations.

	New/amended IFRS	Published by the IASB and adopted by the EU	Applicable to financial years beginning on or after	Material impact on Group's consolidated financial statement
	Amendments to IAS 21 The Effects of
	Changes in Foreign Exchange Rates:
IAS 21	Lack of Exchangeability	November 2024	January 1, 2025	None

The application of the new/amended standards has not had any impact on the condensed consolidated interim statements.

17 Significant events occurring after September 30, 2025.

No significant events have occurred after September 30, 2025, that need to be reported.

Vienna, November 18, 2025

The Executive Board

Georg Kapsch Chief Executive Officer Alfredo Escribá Gallego Executive Board Member Samuel Kapsch Executive Board Member

Financial calendar.

February 27, 2026	Results Q1–Q3 2025/26
June 17, 2026	Results FY 2025/26
August 26, 2026	Results Q1 2026/27
August 30, 2026	Record date: Annual General Meeting
September 9, 2026	Annual General Meeting
November 25, 2026	Results H1 2026/27
February 24, 2027	Results Q1–Q3 2026/27

Contact for investors.

Investor Relations team	Marcus Handl, Teresa Hartlieb
Shareholders' telephone line	+43 50 811 1122
E-mail	IR.kapschtraffic@kapsch.net
Website	www.kapsch.net

Disclaimer.

Certain statements in this report are forward-looking statements. They contain the words "believe", "intend", "expect", "plan", "assume", and terms of a similar meaning. Forward-looking statements reflect the beliefs and expectations of the Company. Actual events may deviate significantly from the expected developments, due to a range of factors. As a result, readers are cautioned not to place undue reliance on such forward-looking statements. Kapsch Traffic-Com is under no obligation to update forward-looking statements made herein, unless required by applicable law.

This report was created with care and all data has been checked conscientiously. Nevertheless, the possibility of layout and printing errors cannot be excluded. Differences in calculations may arise due to the rounding of individual items and percentages. The English translation is for convenience; only the German version is authentic.

When referring to people, the authors strive to use both the male and female forms as far as possible (for example: he or she). For readability reasons, occasionally only the masculine form is used. However, it always refers to people of all gender categories.

This report does not constitute a recommendation or invitation to purchase or sell securities of Kapsch TrafficCom.

Imprint.

Media owner and publisher: Kapsch TrafficCom AG

Place of publishing: Vienna, Austria Editorial deadline: November 18, 2025

Kapsch TrafficCom

Kapsch TrafficCom is a globally renowned provider of transportation solutions for sustainable mobility with successful projects in more than 50 countries. Innovative solutions in the areas of tolling and traffic management contribute to a healthier world without congestion.

With one-stop-shop solutions, the Company covers the entire value chain of customers, from components to design and implementation to the operation of systems.

Kapsch TrafficCom, headquartered in Vienna, has subsidiaries and branches in more than 25 countries and is listed in the Prime Market segment of the Vienna Stock Exchange (ticker symbol: KTCG). In its 2024/25 financial year, over 3,000 employees generated revenues of EUR 530 million.

www.kapsch.net