PIERER Mobility AG: Preliminary key figures 2020 - Active corona management leads to further record year

Corporate News
Wels, 1 February 2021

PIERER Mobility AG: Preliminary key figures 2020 - Active corona management leads to further record year

- Unit sales: 326,471 motorcycles and e-bicycles

- Revenues: € 1,530.3m (previous year: € 1,520.1m)

- EBIT: € 107.2m (previous year: € 131.7m)

- Free Cash Flow: € 166.0m (previous year: € 91.6m)

- Full integration of the e-bike division and GASGAS as the group's third brand

- Further market share gains in the key markets USA, Australia and Europe

- Staff expansion: +218 to 4,586 employees

Preliminary revenues and earnings in the business year 2019

With 326,471 motorcycles and e-bicycles in the business year 2020, PIERER Mobility delivered its 10^th record year in a row. A revenue of € 1,530.3m (previous year: € 1,520.1 m) was generated, with the e-bike division already contributing sales of € 112.5m to this total. The preliminary EBIT reached € 107.2m in this challenging year (previous year: € 131.7m), corresponding to an EBIT margin of 7%. The operating result before depreciation and amortization (EBITDA) of € 239.0m was at the level of the previous year (previous year: € 240.8m), corresponding to an EBITDA margin of 15.6%.
The Free Cash Flow was almost doubled to € 166.0m compared to € 91.6 m in 2019, corresponding to 10.8% of sales.
In the business year 2020, around € 117.2m was invested in product development and tools as well as € 39.3m in operating facilities & infrastructure and in the acquisition of the GASGAS brand.
In the closed business year, due to the worldwide demand for motorcycles and e-bicycles, 218 employees were added to the workforce, bringing the total number of employees to 4,586 at the end of 2020. 3,822 of these are employed in Austria.

Market shares further expanded

In the business year 2020, the PIERER Mobility Group with its three motorcycle brands KTM, Husqvarna and GASGAS further expanded its market presence in the key sales markets (Europe, North America, Australia) and recorded a market share of 12.7% in a growing market environment, with an increase in registrations of 21.6%.

In Europe, despite the tough national lockdown measures in some European countries, the motorcycle market grew above the high level of the previous year and stood at approximately 640,000 new registrations as of December 31, 2020, representing an increase of 4%. In the same period, new registrations of KTM, Husqvarna and GASGAS increased by around 15.0%, resulting in an expansion of its market share to 13.3%.

In the US market, as the largest singular motorcycle market for the PIERER Mobility Group, the motorcycle market, which had been in decline since 2015, turned positive with 6.5% growth and recorded a volume of approximately 398,000 motorcycles in 2020 (previous year: approximately 374,000). In the same period, the market share of KTM, Husqvarna and GASGAS increased to 11.6% (2019: 9.4%).

As a result of the 100 % acquisition of KTM Australia Holding in the previous year and the market efforts, the company succeeded in outperforming a strongly growing market (+17.9% to 62,000 motorcycles) with an increase of 46.5% in new registrations and by exceeding 20% of the market share (20.4%) for the first time.

India, the most important future market for KTM, was hit hardest by the COVID crisis. Bajaj nevertheless managed to sell over 60,000 motorcycles from the two brands KTM and Husqvarna Motorcycles and to outperform the Indian premium motorcycle market.

Unit sales of motorcycles & e-bicycles

With 212,713 KTM motorcycles, 49,046 HUSQVARNA motorcycles and already 8,648 GASGAS motorcycles sold in the 2020 financial year, sales of 270,407 motorcycles (2019: 280,099 units) were achieved. Due to the high demand, the second half of 2020 succeeded in largely making up for the lost production or sales volumes from the COVID-19 lockdown in the spring. In addition, the e-bike division delivered exceptional sales growth of more than 33% with the sale of 56,064 e-bikes (2019: 41,993 (non-consolidated)) of the HUSQVARNA and R RAYMON brands.

In Europe, sales to dealers were around 100,000 motorcycles and 56,064 e-bikes. Around two-thirds of the motorcycles (approximately 170,000) were sold to the dealer network in markets outside Europe, in particular in North America, India and Australia.

The 100 % acquisition of the shares in GASGAS Motorcycles GmbH in July 2020 will position GASGAS as the group's third brand in the offroad segment and as the global market leader in the trial segment. GASGAS also adds a sporty range of high-end e-mountain bikes to the product portfolio.

Increasing global brand awareness through sensational successes in the MotoGP

With three victories and five further podium finishes, KTM has achieved an exceptional result in its only fourth racing season. These successes in the premier class of motorcycling are a milestone in KTM's history and thus lead to a further increase in its global brand awareness.

Strategic initiatives 2021 - Full integration of the e-bikes division and GASGAS as the group's third brand

In the business year 2021, the PIERER Mobility Group will continue to focus on organic growth in all core areas. The objective is to further expand its market share in the motorcycle markets that are important for KTM, Husqvarna and GASGAS. The aim is thus to become the market leader in Europe.

In the important and rapidly growing e-bike division, the group will develop into a significant player in the medium term and has set itself the goal of generating annual sales of € 500m by 2025. As early as 2021, the distribution of e-bicycles outside the DACH region is to be rolled out in Europe, and from 2022 also in North America. In addition to specialist bicycle retailers, selected motorcycle dealers will also sell the e-bicycles.

In cooperation with Bajaj, the development of several electric two-wheeler models is being driven forward on the joint electric drive platform. The first Husqvarna branded e-scooter will be launched in 2022.

China is the world's fastest growing premium motorcycle market. In order to gain a further foothold in this important market, activities are being intensified together with the Chinese joint venture partner CFMOTO. Production of the first models will start in the second quarter of 2021.

Preliminary key figures 2020 of PIERER Mobility Group (consolidated)

¹⁾ excluding lease additions (IFRS 16)

The Annual Financial Report and the Sustainability Report of the Financial Year 2020 will published on March 30, 2021 and are available on the company's website www.pierermobility.com under the following links:
https://www.pierermobility.com/en/investor-relations/reports
https://www.pierermobility.com/en/sustainability/sustainability-reports

About the Group
The PIERER Mobility Group is Europe's leading manufacturer of "powered two-wheelers" (PTW). With its globally known motorcycle brands KTM, HUSQVARNA and GASGAS, it is one of the European technology and market leaders, especially for premium motorcycles. In addition to powered two-wheelers equipped with combustion engines or innovative electric drives, the product portfolio also includes e-bicycles. As a pioneer in electromobility for two-wheelers in the low-voltage range (48 volts) the group and its strategic partner Bajaj have the prerequisites to assume a leading global role. The acquisition of PEXCO's e-bicycle business was another important step in intensifying activities in the field of two-wheeled electromobility. E-bicycle activities will be promoted under the brands HUSQVARNA E-Bicycles, R Raymon and GASGAS E-Bicycles in order to participate in the attractive market growth of the e-bicycle segment and to become a major international player there. Thanks to our innovative strength, we see ourselves as the technology leader in the two-wheeler sector in Europe. The partnership with Bajaj, India's second largest motorcycle manufacturer, strengthens competitiveness in global markets.

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Contact:
Investor Relations
Mag. Michaela Friepeß
Tel.: +43 (0)7242 / 69402
Email: ir@pierermobility.com
Website: www.pierermobility.com