init achieves double-digit growth of incoming orders in the first quarter 2021

• New orders acquired with a volume of EUR 50.4m (Q1 2020: EUR 44.0m), major contract with METRO Houston not included in this figure - contract has been signed in Q2 2021
• Revenues and earnings stable as forecast, despite expenses for integration of DResearch Fahrzeuglektronik Group
• Cash flow significantly increased to EUR 11.4m (Q1 2020: EUR 6.5m)

init innovation in traffic systems SE (ISIN DE 0005759807) has again reached its sustainable growth target of around 15 per cent in terms of incoming orders in the first quarter of 2021. The digitisation specialist in the bus and train sector recorded new orders with a total volume of EUR 50.4m (Q1 2020: EUR 44.0m), mainly due to the successful completion of small and medium-sized projects. The latest major order from METRO Houston, worth around USD 30m has not yet been included in the order intake, but will be for the second quarter.

"We are very satisfied with this increase of around 15 per cent in incoming orders compared to the previous year and continue to see sustainable improvement in our growth prospects due to digitalisation and new investment programmes for public transport," init's Managing Board reported.

In the first quarter of 2021, revenues of EUR 40.5m (Q1 2020: EUR 40.3m) were generated. "Revenues were slightly above the previous year's figure and in line with our expectations," init's Managing Board reported. North America accounted for the largest share, almost 40 per cent, a market for which init's Managing Board expects above-average growth opportunities in the coming years, thanks to the new US government's initiatives to develop a sustainable transport infrastructure.

At EUR 2.9m, earnings before interest and taxes (EBIT) remained slightly below the previous year's figure (Q1 2020: EUR 3.4m) due to common fluctuations in the project business and expenses incurred in the integration of the DResearch Fahrzeugelektronik Group which was acquired in 2020, but were at a stable level. Accordingly, the consolidated net income as of 31 March 2021 amounted to EUR 1.8m (Q1 2020: EUR 2.2m). The quarterly earnings per share amounted to EUR 0.19 (Q1 2020: EUR 0.22). Cash flow from operating activities at EUR 11.4m (Q1 2020: EUR 6.5m) was significantly higher than in the previous year. Accordingly, init's liquidity position grew to more than EUR 38m (Q1 2020: EUR 28.6m).

"The first three months of the 2021 financial year have shown that init is well on its way to achieving the targets set for the year as a whole. We are therefore standing by the existing forecast with regard to revenues of around EUR 180m and EBIT of EUR 18m to 20m," the Managing Board reported.

After the transition year 2021, the Managing Board continues to expect sustainable improvement in growth prospects. For example, digitalisation in public transport has received additional impetus due to the Corona crisis. In addition, there are extensive economic stimulus programmes in Germany, the EU and the USA, aimed at expanding public transport and, in particular, an intelligent transport infrastructure. In addition, init has brought digital innovations to market that can be used to open up new business areas, such as a control system for light rail and also for mainline trains. As early as 2022, init therefore aims to once again grow at its sustainable target rate of 15 per cent per year.

The quarterly statement will be available from 11 May 2021 on the init website.