PIERER Mobility confirms revenues and earnings in 2023

Corporate News

Ad hoc announcement pursuant to article 53 LR           

Wels, March 27, 2024

PIERER Mobility confirms revenues and earnings in 2023

• Revenues: EUR 2,661 million (+9.2 %)
• EBIT: EUR 160 million (previous year: EUR 235 million)
• EBITDA: EUR 323.5 million (-15.1 %)
• Unit sales: motorcycles 381,555 (+1.6 %)
• Unit sales: bicycles 157,358 (+33 %)
• Employees: 6,184 (+1.6 %)
• 2024 outlook

Revenues and earnings in the 2023 financial year

The PIERER Mobility Group increased group revenue by 9.2 % to € 2,661.2 million (previous year: € 2,437.2 million) in the 2023 financial year despite difficult economic conditions and upheaval in the bicycle industry. Earnings before interest and taxes (EBIT) fell by around 32 % to € 160.0 million (previous year: € 235.3 million). This corresponds to an EBIT margin of 6.0 %. At € 323.5 million, EBITDA was around 15 % below the previous year’s figure. The EBITDA margin is 12.2 %.

As already reported, the Executive Board, in agreement with the main shareholder Pierer Bajaj AG, will propose to the Supervisory Board and the Annual General Meeting a dividend of € 0.50 per dividend-bearing share for the 2023 financial year on the basis of the result achieved.

In the 2023 financial year, € 284.0 million was invested in further growth, of which around € 195.1 million was invested in product development & tools, € 88.9 million in plant & infrastructure. The research budget was 9.2 % of revenue in the year under review. As in previous years, significant investments were made mainly in development projects and the purchase of tools and equipment in 2023. As a result of measures such as supporting the dealer structure and stabilizing the financial situation of some critical suppliers, the negative free cash flow, which amounted to € -413.0 million (previous year: € -2.8 million) in 2023, was deliberately accepted. Thanks to the strong equity base and long-term financing, sufficient liquidity reserves are available on a sustainable basis. The equity ratio as at the reporting date was 30.8%.

As of December 31, 2023, the PIERER Mobility Group had a total of 6,184 employees (previous year: 6,088), thereof about 5,000 in Austria. Approximately 1,300 employees or around 21 % of the workforce are engaged in research & development. 2023, around € 3.9 million was invested in staff training and education. As of the balance sheet date, about 220 apprentices were employed and trained in 25 different professions.

Motorcycles unit sales: 381,555 (+2%)

The 2023 financial year was very much defined by a major model rollout with a total of 72 new and revised models from the three core brands: With 280,206 KTM motorcycles sold, 67,462 Husqvarna motorcycles sold and 29,532 GASGAS motorcycles sold in the 2023 financial year, plus the motorcycles sold by MV Agusta (1,852) and CFMOTO (2,503), PIERER Mobility achieved sales of 381,555 units (2022: 375,492 units). The motorcycle division thus achieved a 1.6 % increase in unit sales. In the European sales regions, unit sales were 140,214 units (+15%). At 241,341 units, two thirds of the motorcycles were sold in markets outside Europe: In India, sales rose particularly sharply (+29 %) with 66,426 motorcycles sold. Despite a slight decline in North America (-7.7 %), the subsidiary there managed to sell 101,277 units. While sales fell in South America with 27,671 units sold (-26.4 %) and in Asia with 23,129 motorcycles sold (-27.3 %), sales of 19,648 units in Australia were slightly above the previous year's level (previous year: 19,478 units) (+1 %).

Despite the difficult global economic conditions, motorcycle registrations in the core markets of Europe rose very strongly at a rate of +11 % and also displayed a significantly positive trend in North America (USA & Canada) at +4 %. In 2023, the market share of all three brands (KTM, Husqvarna, GASGAS) was therefore around 10.6 % in Europe and 12.6 % in North America. The Australian motorcycle market (including New Zealand) stagnated slightly with a 3 % decline in newly registered motorcycles. Nevertheless, the total market share of the three brands increased to 21 % overall. By contrast, as in the previous year, the relevant Indian motorcycle market is seeing a noticeable upswing (+22 %). Bajaj sold around 66,000 KTM and Husqvarna motorcycles in India, resulting in a market share of 5.3 %.

Bicycles unit sales: 157,358 (+33 %)

In the bicycle division, 157,358 bicycles were sold (previous year: 118,465), thereof 100,640 were e-bicycles (previous year: 74,479) in the 2023 financial year. Around 87 % of sales were in Europe and here in particular in the DACH region. A further 10 % were in the North American sales region and the remaining sales (around 3 %) were in Asia, South America and Australia.

Strategic projects

CFMOTO

The strategic cooperation witch CFMOTO was stepped up in the 2023 financial year. On the one hand, the subsidiary CFMOTO Motorcycles Distribution GmbH took over the distribution of CFMOTO motorcycles in five European countries in February 2023. On the other, the long-standing activities in relation to industrialization projects in the established joint venture with CFMOTO were promoted and the series production of mid-range KTM models was expanded further. In addition, production capacity will be doubled.

Takeover of majority stake in MV Agusta S.p.A.

An important milestone for the company was the acquisition of a majority stake in the Italian premium motorcycle manufacturer MV Agusta S.p.A., in which KTM AG acquired a 25.1 % stake back in November 2023. On March 15, 2024, the existing call option to acquire a majority stake in MV Agusta Motor S.p.A. was exercised early by KTM AG and the stake increased to 50.1 %.

2024 outlook

For the 2024 financial year, the Executive Board expects that the global economic environment will continue to be difficult, driven not least by ongoing high rates of inflation and wage and salary trends, with far-reaching effects on pricing worldwide. The PIERER Mobility Group will use 2024 as a year of consolidation to strengthen its core business as a result of the economic policy that is damaging the location and having a very negative impact on global competitiveness. The cost reduction measures already initiated in the 2023 financial year will be continued intensively and supported by further relocations of production and development capacities to the joint venture partners in India and China. The total cost savings will amount to tens of millions in the 2024 financial year.

Key figures 2023 of PIERER Mobility Group (consolidated)

¹⁾ Excluding lease additions (IFRS 16) in the amount of mEUR 32.5 (previous year: mEUR 25.9)

Der Annual Financial Report and the Sustainability Report for the 2023 financial year will be published on March 27, 2024, and will be available on the company’s website www.pierermobility.com under the following links

https://www.pierermobility.com/en/investor-relations/publications

https://www.pierermobility.com/en/sustainability/publications

About the Group

PIERER Mobility AG is the holding company of Europe’s leading manufacturer of powered two-wheelers, producing a full range of premium brands including KTM, GASGAS, Husqvarna and MV Agusta Motorcycles. With its innovative strength, PIERER Mobility is a pioneering technology leader in two-wheeled e-mobility through its motorcycle brands. Husqvarna and GASGAS E-Bicycles complement the two-wheeler range. The premium brand range also includes high-performance components under the WP brand and special KTM X-BOW high-performance sports cars.

Legal disclaimer

THIS ANNOUNCEMENT DOES NOT CONSTITUTE AN OFFER OF SECURITIES FOR SALE OR A SOLICITATION OF AN OFFER TO PURCHASE SECURITIES OF PIERER MOBILITY AG. IT IS NOT FOR DISTRIBUTION, TRANSMISSION OR PUBLICATION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, JAPAN OR SOUTH AFRICA OR ANY OTHER JURISDICTION IN WHICH THE DISTRIBUTION OF THIS ANNOUNCEMENT WOULD BE UNLAWFUL.

Contact:

Investor Relations

Melinda Busáné Bellér

Tel: +43 (0) 1 533 1 433 - 70

Email: ir@pierermobility.com

Website: www.pierermobility.com

ISIN: AT0000KTMI02; Swiss Valor Number (Switzerland): 41860974; Ticker Symbol: PKTM; Bloomberg: PKTM SW, PKTM AV; Reuters: PKTM.S; PKTM.VI