EQS-Adhoc: PIERER Mobility AG: Strong sales and revenue performance in the first half year 2023

EQS-Ad-hoc: PIERER Mobility AG / Key word(s): Half Year Results
   PIERER Mobility AG: Strong sales and revenue performance in the first half
   year 2023

   29-Aug-2023 / 06:58 CET/CEST
   Disclosure of an inside information acc. to Article 17 MAR of the
   Regulation (EU) No 596/2014, transmitted by EQS News - a service of EQS
   Group AG.
   The issuer is solely responsible for the content of this announcement.

   ══════════════════════════════════════════════════════════════════════════

   Ad hoc announcement pursuant to article 17 Regulation (EU) No 596/2014
   (MAR)

   Ad hoc announcement pursuant to article 53 LR

   Wels, 29 August 2023 

    

   PIERER Mobility AG: Strong sales and revenue performance in the first half
   year 2023

     • Revenue: € 1,387.6 million (+20,2% vs H1 2022)
     • EBIT: € 96.9 million (+4,3% vs H1 2022)
     • Sales: 190,293 motorcycles (+16,5% vs H1 2022)
     • Sales: 71,401 e-bicycles & bicycles (+38,9% vs H1 2022)
     • Headcount increase by 658 (+11,6%) employees to now 6,314 employees
     • Guidance – positive outlook for 2023 confirmed

    

   Sales, revenue and earnings development in the first half of 2023

   In the first half of 2023, the PIERER Mobility Group increased the group
   revenue by 20.2 % to a new record value of € 1,387.6 million (previous
   year: € 1,154.1 million), with the motorcycle segment (+19 %) and also the
   bicycle segment (+37 %) realising significant sales increases. Group-wide,
   about 59 % of the turnover was generated in Europe, 28 % in North America
   incl. Mexico and 13 % in the rest of the world.

   The operating result (EBIT) of € 96.9 million in the first half of 2023 is
   above the previous year's figure of € 92.8 million. The very strong
   operating result performance in the motorcycle segment (+16.6%)
   compensates for the negative deviation in the bicycle segment. The tight
   inventory situation at bicycle dealers increasingly led to discounts,
   which had a negative impact on the group EBIT. The bicycle market as a
   whole is characterized by major changes. The consolidation that has
   already begun and is expected will have profound effects on the entire
   bicycle industry.

   The operating result before depreciation and amortisation (EBITDA) of €
   178.9 million is also above the previous year's figure of € 162.3 million.
   The EBIT margin in the first half of 2023 is 7.0 %, the EBITDA margin is
   12.9 %.

   With 190,293 motorcycles sold in the first half of 2023 (previous year:
   163,334), the motorcycle segment  achieved a sales volume increase of 16.5
   %. The bicycle segment also achieved sales volume growth of around 39 %,
   selling 71,401 e-bicycles & bicycles (previous year: 51,417). The increase
   in units sold in both segments was particularly strong in Europe. Here,
   sales to dealers were 76,767 motorcycles (+25%) and 59,212 bicycles
   (+40%). Almost 60% of the motorcycles were sold in markets outside Europe,
   predominantly in North America with 50,472 units (+13%) and in India with
   33,029 units with a strong increase of 81% compared to the previous year.
   Declining growth rates were recorded in the markets of Latin America, Asia
   and Africa. In the bicycle segment, the DACH region continues to be the
   largest sales market with around 60% of total sales. In addition to
   Europe, growth in the bicycle segment was particularly pleasing in North
   America, where 9,184 units were sold in the first half of 2023, which
   corresponds to an increase of 33% compared to the same period of the
   previous year.

   In addition, the PIERER Mobility Group was able to further increase market
   shares with its motorcycle brands KTM, Husqvarna and GASGAS in the global
   motorcycle markets of Europe, North America, Australia and India, which
   are particularly important for the group, compared to the same period last
   year.

    

   Increasing market share in key motorcycle markets

   Despite the overall economic environment, which poses challenges for the
   motorcycle market, the market development in the first half of 2023 allows
   for a positive outlook for the remaining months of the 2023 financial
   year. The group was able to either maintain or increase existing market
   shares in the global markets.

   In Europe, the motorcycle market recorded a significant volume increase of
   11.1 % compared to the first half of 2022, reaching a volume of around
   470,000 newly registered motorcycles. The main drivers of this development
   can be seen in the German (+15 %), Italian (+14 %) and Spanish (+15 %)
   markets as well as KTM's home country Austria (+14 %). In addition, the
   PIERER Mobility Group with its motorcycle brands KTM, Husqvarna and GASGAS
   was able to surpass this development with an increase of 20% in
   registrations and achieved a market share of 10.2% (half-year 2022: 9.9%).

   In North America, one of the most important sales markets for the PIERER
   Mobility Group, the overall high market volume from the first half of 2022
   of around 290,000 newly registered motorcycles was maintained in the first
   half of 2023. At the same time, the KTM Group was able to expand its
   market position with a share of 12.3 % in the USA and 16.9 % in the
   Canadian market (both markets together: 12.9%; first half of 2022
   together: 10.6%).

   The Australian and New Zealand motorcycle market shows a slight decline of
   4% in the total market for the first half of 2023 compared to the same
   period last year. Nevertheless, the market shares of the KTM, Husqvarna
   and GASGAS brands are developing positively and now stand at 19.7% (Half
   Year 2022: 19.0%).

   Both the overall market (+9%) and the Indian motorcycle market relevant
   for KTM (S2/S3 segment, +32%) are clearly on the upswing in a direct
   year-on-year comparison. The S2/S3 market accounts for almost 600,000
   units in the first half of 2023. In this context, the strategic partner
   Bajaj sold more than 32,000 motorcycles of the KTM and Husqvarna brands in
   India, which corresponds to a market share of 5.7% (+1.6 percentage points
   compared to the first half of 2022).

    

   New Mobility market

   PIERER Mobility AG anticipates a decline in the overall market in 2023 and
   a challenging year in 2024. The expected market consolidation will
   accelerate significantly due to the current situation and will have a
   lasting impact on the competitive environment. However, contrary to the
   market development, revenue and volume growth is expected even in this
   tense environment. The bicycle segment, especially in e-bicycles,
   continues to be seen as an important strategic product and market area for
   PIERER Mobility AG. The strategic target of € 500 million turnover is
   still valid, but will probably only be reached two years later compared to
   the original target of 2025.

    

   Headcount increase by 658 employees to now 6,314 employees

   As of 30 June 2023, the PIERER Mobility Group had 6,314 employees, of
   which 5,146 were in Austria (81.5 %). Around 1,400 employees work in
   research & development.

   Since the beginning of the year, the number of employees has increased by
   226. Compared to 30 June 2022, the PIERER Mobility Group was even able to
   increase its headcount by 658 people and continues to look for new
   employees in various areas, especially in metalworking professions. In the
   course of the apprenticeship offensive, around 80 more apprentices will
   start their training in the new year. In total, the group is currently
   training over 200 apprentices.

    

   KTM and CFMOTO double production capacity from 50,000 to 100,000 vehicles

   The cooperation with CFMOTO was further intensified in the first half of
   2023. On the one hand, activities in the newly founded CFMOTO subsidiaries
   were started in February 2023, which will take over the distribution of
   CFMOTO motorbikes in Europe, especially in Germany, Austria, Switzerland,
   Spain and Great Britain. On the other hand, the long-standing cooperation
   in industrialization projects in the newly founded joint venture in China
   was further strengthened by the series production of the KTM mid-range
   models (790 Duke and 790 Adventure). The strategic cooperation now also
   includes model planning and the joint development of engines and vehicles.
   In addition, KTM and CFMOTO have decided to increase the production
   capacity of their joint ventures from 50,000 to 100,000 vehicles. As a
   sign of the strengthened cooperation, CFMOTO has also increased its share
   in PIERER Mobility AG to 2.0 %.

    

   Guidance – positive outlook for 2023 confirmed

   In the second half of 2023, the PIERER Mobility Group continues to focus
   on growth in its core areas, both motorcycles and (e-)bicycles. Despite
   the still noticeable challenges, especially in the bicycle market, the
   Executive Board confirms the outlook for the 2023 financial year and
   continues to expect revenue growth between 6 and 10 % with an EBIT margin
   of 8 to 10 %.

    

   Group figures H1 2023 of PIERER Mobility AG (consolidated)
    

   KEY FINANCIAL PERFORMANCE INDICATORS:                            
                                                                
   Earnings figures                         H1 2022    H1 2023  Chg.
   Revenue                          EURm    1,154.1    1,387.6 20.2%
   EBITDA                           EURm      162.3      178.9 10.3%
   EBITDA margin                              14.1%      12.9%      
   EBIT                             EURm       92.8       96.9  4.3%
   EBIT margin                                 8.0%       7.0%      
                                                                
                                                                
    
                                                                    
   OTHER FINANCIAL FIGURES:
                                                                
   Earnings and cash flow ratios            H1 2022    H1 2023  Chg.
   Earnings after taxes             EURm       68.2       53.0 -22.%
   Free cash flow                   EURm     -146.2      -96.0 34.3%
                                                                
   Balance sheet ratios                  31.12.2022 30.06.2023  Chg.
   Balance sheet total              EURm    2,550.6    2,675.5  4.9%
   Equity                           EURm      914.4      889.9 -2.7%
   Equity ratio                               35.8%      33.3%      
   Net debt                         EURm      256.5      442.9 72.6%
   Gearing                                    28.1%      49.8%      
                                                                    
   Others                                   H1 2022    H1 2023  Chg.
   Capex^1)                         EURm      102.5      133.1 29.8%
   Employees (headcount)                      5,656      6,314 11.6%

   ^1) excluding lease additions (IFRS 16) in the amount of EURm 18.6
   (previous year: EURm 10,2)

    

   The half-year report for 2023 is now available on the company website at
   at [1]https://www.pierermobility.com/en/investor-relations/reports. The
   current investor presentation can be found at
   [2]https://www.pierermobility.com/en/investor-relations/presentation.

    

   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 and Husqvarna Motorcycles. With key strengths in
   innovation, PIERER Mobility is a pioneering technology leader in
   two-wheeled e-mobility through its motorcycle brands. Its Husqvarna
   E-Bicycles, GASGAS Bicycles and FELT Bicycles complement the two-wheeler
   segment. Rounding out the premium brand offering are high-performance
   components produced under the WP brand and KTM X-BOW high-end sports cars.

    

   Legal Disclaimer

   THIS ANNOUNCEMENT DOES NEITHER CONSTITUTE AN OFFER TO SELL NOR AN
   /INVITATION TO SUBMIT A PROPOSAL FOR THE ACQUISITION OF SECURITIES OF
   PIERER MOBILITY AG. THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR
   DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, INTO OR WITHIN
   THE UNITED STATES, AUSTRALIA, CANADA, JAPAN OR SOUTH AFRICA OR ANY OTHER
   JURISDICTION WHERE IT IS UNLAWFUL TO DISTRIBUTE THIS ANNOUNCEMENT.

    

   Contact:

   Investor Relations
   Melinda Busáné Bellér
   Tel: +43 1 533 1 433 - 70
   Email: [email protected]
   Website: [3]www.pierermobility.com

   ISIN: AT0000KTMI02; Swiss Valor Number (Switzerland): 41860974; Ticker
   Symbol: PMAG; Bloomberg: PMAG SE; Reuters: PMAG.S

   End of Inside Information

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   29-Aug-2023 CET/CEST News transmitted by EQS Group AG. www.eqs.com

   ══════════════════════════════════════════════════════════════════════════

   Language:    English
   Company:     PIERER Mobility AG
                Edisonstrasse 1
                4600 Wels
                Austria
   Phone:       +43 (0) 7242 69 402
   E-mail:      [email protected]
   Internet:    www.pierermobility.com
   ISIN:        AT0000KTMI02
   WKN:         A2JKHY
   Listed:      SIX, Vienna Stock Exchange
   EQS News ID: 1713343

   Valorennummer (Schweiz): 41860974 Wertpapierkürzel: PMAG, Bloomberg: PMAG
   SE Reuters: PMAG.S

    
   End of Announcement EQS News Service


   1713343  29-Aug-2023 CET/CEST

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