IVU Traffic Technologies AG — Interim / Quarterly Report 2015

Aug 26, 2015

IVU Traffic Technologies AG

Consolidated report for the first six months of the financial year 2015 in line with IFRS

Berlin, 26 August 2015

Key figures

	1/1 – 30/6/2015 in k€	1/1 – 30/6/2014 in k€	Change in k€
Revenues	21,458	16,739	+4,719
Gross profit	15,674	13,903	+1,771
Personnel expenses	12,720	11,986	+734
EBIT	‐914	‐1,413	+499
Consolidated loss	‐1,186	‐1,498	+312

Management report

Financial performance

IVU's revenues for the first six months of 2015 at € 21,458 k were higher than for the same period in 2014 (€ 16,739 k). At the same time, material costs increased to € 6,156 k (2014: € 3,307 k). The gross profit rose to € 15,674 k (2014: € 13,903 k).

Personnel expenses have increased to € 12,720 k (2014: € 11,986 k). Other operating expenses have grown by € 378 k to € 3,287 k (2014: € 2,909 k).

EBIT improved to ‐ € 914 k (2014: ‐ € 1,413 k). The negative EBIT in the first half year is in line with the seasonal business cycle familiar from previous years.

As of 30 June 2015 the level of orders for the current financial year accounts for more than 90 % of the planned annual revenues.

Key projects in the first half of 2015

Montreal. Resource planning for VIA Rail Canada

VIA Rail Canada is another major national railway to place its trust in the software solutions from IVU. The company operates passenger rail services in eight of Canada's ten provinces. Around 500 trains are operated on a weekly basis on a route network of over 12,500 kilometres. In the country with the second‐largest surface area in the world, the trains often have to cover considerable distances to reach their destination. In order to provide excellent service on board, the trains are usually staffed with several teams made up of drivers and train crew. IVU.rail will provide for efficient duty scheduling and dispatching of nearly 1,200 personnel.

Stuttgart. Sustainable mobility in the region

As part of the "NaMoReg" project (German abbreviation for "Sustainably Mobile Region Stuttgart"), a multi‐client, real‐time information system from IVU was installed by VVS, the transit and tariff association of Stuttgart. With the multi‐client IVU solution, VVS can now process current traffic data for a total of 26 small and mid‐sized companies centrally and transmit it to information systems. This guarantees more reliable connections for passengers switching between routes and cuts unnecessary waiting times. For this purpose, IVU engineers installed new on‐board computers in the approximately 500 vehicles belonging to the participating companies. The real‐time data is processed and distributed by IVU.fleet and IVU.realtime.

Milan. Appearance at the UITP World Congress

At this year's industry convention of the International Association of Public Transport (UITP) in June 2015, IVU presented a new app for mobile devices and improvements to its integrated systems IVU.suite and IVU.rail, and more. In a Focus Session, IVU Product Manager Dr Claus Dohmen offered insight into the development of the IVU.realtime.app. Based on the evaluation of real‐time data, a new, innovative route calculation will in the future only show users connections that actually exist at the time of their query. If a scheduled journey is cancelled, the app automatically searches for alternative routes – even if the passenger is already under way.

Basel. New office in Switzerland

IVU continues to expand. Prestigious customers of IVU like Swiss Federal Railways (SBB), PostBus Switzerland and Zurich Public Transport (VBZ) now have a locally‐based personal contact. In addition, IVU is boosting its sales activities in the tri‐border region of Switzerland, Germany and France with its office in Basel. Existing partnerships with Zurich‐based consultancy firm STI and provider of ticketing solutions Scheidt & Bachmann will also be expanded. IVU Italia, the first major branch office of IVU, celebrated its 15th anniversary in June. Today, IVU counts 14 offices in 12 countries.

Berlin. First dividend distribution approved

At the Annual General Meeting on 3 June 2015 in Berlin, for the first time since IVU's IPO in 2000 a large majority of the shareholders approved a dividend of € 0.05 per share. They thus followed a motion by the Management and Supervisory Boards after another very positive business performance in 2014. The dividend approval underscores the shareholders' confidence in the corporate strategy. The IVU Management Board expects the company's sustainable and substantial growth of recent years to continue into the future.

Personnel

	2015	2014	Change
Number of employees as of 30 June	435	404	+8 %
Personnel capacity * 1 January – 30 June (average)	345	335	+3 %

* Equivalent number of full‐time employees (FTE)

In the first half of 2015 we strengthened our team as planned. The personnel capacity has increased by 3 % in comparison with the same period in the previous year to 345.

Outlook

The good order‐book situation promises a continued positive business development. We therefore anticipate for 2015 revenue of € 50 million and a gross profit of € 39 million.

Risks

The risks are described on pages 20 and 21 of the Annual Report 2014. No new risks have arisen. Neither have there been any changes in risk management.

Transactions with related individuals

In the period covered by this report, there were no transactions with related individuals.

Declaration in line with WpHG Section 37w, Para. 5 Sentence 6

This six‐months report was not subjected to an auditor's inspection.

Consolidated income statement in line with IFRS for the period 1 January to 30 June 2015

	Q2 2015	Q2 2014	1st half 2015	1st half 2014
	k€	k€	k€	k€
Sales revenues	12,097	8,673	21,458	16,739
Other operating revenues	193	211	372	471
Material costs	‐3,951	‐1,633	‐6,156	‐3,307
Gross profit	8,339	7,251	15,674	13,903
Personnel expenses	‐6,404	‐6,099	‐12,720	‐11,986
Depreciation of non‐current assets	‐302	‐210	‐581	‐421
Other operating expenses	‐1,761	‐1,535	‐3,287	‐2,909
Earnings before interest and taxes (EBIT)	‐128	‐593	‐914	‐1,413
Financial revenues	1	1	1	1
Financial expenses	‐66	‐36	‐134	‐81
Earnings before taxes (EBT)	‐193	‐628	‐1,047	‐1,493
Income tax	‐138	‐5	‐139	‐5
Consolidated profit/loss	‐331	‐633	‐1,186	‐1,498
			€	€
Earnings pershare (undiluted and diluted)			‐0.07	‐0.08
Average number of shares in circulation
(in thousands)			17,719	17,719

Consolidated statement of comprehensive income for the period 1 January to 30 June 2015

	1st half 2015	1st half 2014
	k€	k€
Consolidated profit/loss	‐1,186	‐1,498
Currency translations	‐3	0
Other earnings aftertaxes	‐3	0
Total consolidated earnings aftertaxes	‐1,189	‐1,498

Consolidated balance sheet in line with IFRS as at 30 June 2015

ASSETS	30/06/2015	31/12/2014
	k€	k€
A. Current assets
1. Liquid funds	8,068	14,667
2. Current trade receivables	10,805	15,098
3. Current receivables from construction contracts	14,089	9,587
4. Inventories	3,363	3,296
5. Other current assets	4,398	4,652
Total current assets	40,723	47,300
B. Non‐current assets
1. Fixed assets	1,570	1,489
2. Intangible assets	12,332	12,289
3. Non‐current trade receivables	15	10
4. Deferred tax assets	3,009	3,009
Total non‐current assets	16,926	16,797
Total assets	57,649	64,097
LIABILITIES AND EQUITY	30/06/2015	31/12/2014
	k€	k€
A. Current liabilities
1. Current trade payables	1,968	5,111
2. Liabilities from construction contracts	8,601	9,417
3. Provisions	797	832
4. Tax accruals	174	373
5. Other current liabilities	6,889	6,828
Total current liabilities	18,429	22,561
B. Non‐current liabilities
1. Pension provisions	5,036	5,016
2. Others	73	335
Total non‐current liabilities	5,109	5,351
C. Equity
1. Subscribed capital	17,719	17,719
2. Capital reserves	3,696	3,696
3. Retained earnings	‐1,272	‐1,272

1. Consolidated balance sheet profit 13,923 15,995 5. Currency translations 44 47 Total equity 34,111 36,185 Total liabilities and equity 57,649 64,097

Consolidated statement of cash flows in line with IFRS for the period 1 January to 30 June 2015

	1st half 2015	1st half 2014
	k€	k€
1. Operating activities
Consolidated earnings before income and taxes of the period	‐1,047	‐1,493
Depreciation of fixed assets	581	421
Changes to provisions	‐15	37
Earnings from interest	134	80
Other non‐cash income and expenses	‐3	0
	‐350	‐955
Change of items of current assets and current borrowed funds
Inventories	‐67	‐600
Receivables and other assets	40	6,441
Liabilities (without provisions)	‐4,356	‐1,437
	‐4,733	3,449
Income tax payments	‐134	‐81
Interest payments	‐139	0
Cash flow from operating activities	‐5,006	3,368
2. Investing activities
Payments for investments in property, plant and equipment	‐708	‐284
Cash inflow from disposal of fixed assets	0	1
Interest received	1	0
Cash flow from investing activities	‐707	‐283
3. Financing activities
Dividend paid out	‐886	0
Cash flow from financing activities	‐886	0
4. Liquid funds
Effective change in liquid funds	‐6,599	3,085
Liquid funds at the beginning of the period	14,667	10,668
Liquid funds at the end of the period	8,068	13,753

(+ = cash inflow / ‐ = cash outflow)

Consolidated statement of changes in equity in line with IFRS for the period 1 January to 30 June 2015

	Subscribed Capital Retained capital reserves earnings		Currency translations	Balance sheet profit	Total
	k€	k€	k€	k€	k€	k€
As of 1 January 2014	17,719	3,696	‐450	46	11,630	32,641
Consolidated profit 2014	0	0	0	0	4,365	4,365
Other income after taxes	0	0	‐822	1	0	‐821
Total consolidated profit/loss aftertaxes	0	0	‐822	1	4,365	3,544
As of 31 December 2014	17,719	3,696	‐1,272	47	15,995	36,185
As of 1 January 2015	17,719	3,696	‐1,272	47	15,995	36,185
Consolidated loss 1 January ‐ 30 June 2015	0	0	0	0	‐1,186	‐1,186
Other income after taxes	0	0	0	‐3	0	‐3
Total consolidated loss after
taxes	0	0	0	‐3	‐1,186	‐1,189
Dividend paid out	0	0	0	0	‐886	‐886
As of 30 June 2015	17,719	3,696	‐1,272	44	13,923	34,111

Explanatory Notes

(1) Interim financial statements in accordance with IAS 34

The condensed consolidated interim financial statements meet the requirements in IAS 34. The consolidated interim financial statements do not include all of the information and explanatory notes required for complete financial statements for year‐end reporting purposes. They should be read in conjunction with the consolidated financial statements of the annual report 2014.

(2) Accounting and valuation principles

The accounting and valuation principles as applied in the consolidated interim financial statements correspond to those pertaining to the consolidated financial statements for the financial year 2014.

(3) Seasonality of business operations

The operative business dealings of the IVU Group, in particular in the Public Transport segment, are affected by seasonal effects. These relate both to the presentation of maintenance invoices in the first quarter and to the increased invoicing of project costs in the fourth quarter of the financial year.

Group segment reporting

Operating segments	Public Transport		Logistics		Central services		Consolidated
	1st half 2015	1st half 2014	1st half 2015	1st half 2014	1st half 2015	1st half 2014	1st half 2015	1st half 2014
	k€	k€	k€	k€	k€	k€	k€	k€
Total salesrevenues	19,233	12,350	2,146	4,337	83	52	21,462	16,739
Inter‐segmentsales	0	0	4	0	0	0	4	0
Sales to external
customers	19,233	12,350	2,142	4,337	83	52	21,458	16,739
Segment gross profit	19,233	12,350	2,146	4,337	83	52	21,462	16,739
Expenses	‐10,507	‐8,443	‐1,659	‐2,657	‐4,422	‐4,216	‐16,588	‐15,316
EBIT	8,726	3,907	487	1,680	‐4,339	‐4,164	4,874	1,423
Financial expenses, net	0	0	0	0	‐133	‐80	‐133	‐80
EBT	8,726	3,907	487	1,680	‐4,472	‐4,244	4,741	1,343
Income tax	0	0	0	0	‐139	‐5	‐139	‐5
Consolidated profit/loss	8,726	3,907	487	1,680	‐4,611	‐4,249	4,602	1,338
Segment assets	46,755	44,403	5,283	7,529	2,602	2,594	54,640	54,526
Investment expenditure	283	162	135	15	290	107	708	284
Impairments	134	240	29	30	418	151	581	421

Responsibility statement

To the best of our knowledge, and in accordance with the applicable reporting principles, the consolidated interim financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group. The Group interim management report includes a fair review of the development and performance of the business and the position of the Group, together with a description of the principal opportunities and risks associated with the expected development of the Group.

Berlin, in August 2015

The Executive Board

Martin Müller‐Elschner Dr Helmut Bergstein

Financial calendar 2015

25 March 2015	Annual Report 2014
29 May 2015	Three‐months report as at 31 March
3 June 2015	Annual General Meeting
26 August 2015	Six‐months report as at 30 June
18 November 2015	Nine‐months report as at 30 September
24 November 2015	German Equity Forum, analyst conference, Frankfurt

Contact

IVU Traffic Technologies AG Bundesallee 88 12161 Berlin, Germany Tel.: +49.30.85906‐0 Fax: +49.30.85906‐111 E‐Mail: ir@ivu.de Internet: www.ivu.com