EANS-Adhoc: KTM Power Sports AG / Press Release

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+++ Result 2009/10 +++

KTM back at the top - all expectations exceeded

  • EBIT: 30.0 million EUR1
  • Net result after taxes: +14.0 million EUR
  • Free cash flow: 50.7 million EUR
  • Turnover: 591.4 million EUR
  • Sales: 85,543 vehicles

Mattighofen, March 24, 2011

Change of the business year
Due to efficiency reasons and in order to improve comparability with official statistics on market shares, registration figures etc., the business year was changed in order to match the calendar year. Thus, the following data is comparable with prior year periods only to a limited extent.

Improvement of results at all levels
Significant improvement of turnover, sales and profit in comparison to business year 2008/2009, "which can be attributed to the quick adjustment to the changing market environment and the focus on Off Road Competition. Thus market shares could be doubled despite the declining market". This is how Stefan Pierer, Chairman of the Executive Board of KTM Power Sports AG explained the result of 2010. Turnover increased by EUR 591.4 million, sales rose to over
85,000 items mainly in the motocross segment. The EBIT also increased to EUR 30.0
million, which resulted in a net result of EUR 14.0 million.

Further improvement of financial key figures
The equity ratio per December 31, 2010 amounts to 39.7% (previous year 27.8%). In the year under review KTM managed to generate a free cash flow in the amount of EUR 50.7 million. As a result interest margins of the existing financing
structure were also significantly reduced as of January 1, 2011.

New market shares
Emphasizing the outstanding performance of more than 1,200 dealers worldwide, Stefan Pierer pointed out: "Without our dealers, this improvement would not have been possible." In the off road motor bike segment (Motocross and Enduro) more than 54,000 items were sold. "This makes us the world market leader", Hubert Trunkenpolz, Executive Board member responsible for sales and distribution proudly announced. With nine World Championship titles in different racing classes it was the most successful year in the racing history of KTM and also had a significant effect on sales. Furthermore, 18,000 items were sold in the street motorcycle segment.

As a result of the overall restructure of one of KTM´s core segments, the Enduro Competition family, a further increase in turnover and sales can be anticipated for the current business year. Moreover, with the launch of the motorcycle Duke 125ccm, KTM will refocus on a young target group. This small motorcycle is KTM´s first result from the co-operation with Bajaj Auto Ltd. and will be launched Europe wide as well as in the rapidly growing emerging markets, particularly in India, Brazil and Malaysia.

RESULT 2009/10 1)

in million EUR

01/09/2009 - 31/12/2010 (16 months) 01/09/2008 - 31/08/2009 (12 months) Turnover 591.4 454.6 EBITDA 72.8 6.5 EBIT 30.0 -65.1 Result after taxes 14.0 -81.4 Result per share2 (in EUR) undiluted 1.545 -11.253 EBITDA margin 12.3 % 1.4% EBIT margin 5.1% -14.3%

1) Change of the balance sheet date: Extension of the reporting period to 16 months from September 1, 2009 to December 31, 2010. Data is comparable with prior year periods only to a limited extent.

2) Calculated on the basis of average shares in the reporting period.


KTM Power Sports AG; Viktor Sigl MBA, Investor Relations
Tel: +43 7742 6000 144 E-mail: viktor.sigl@ktm.at

end of announcement euro adhoc

issuer: KTM Power Sports AG Stallhofnerstraße 3 A-5230 Mattighofen phone: +43(0)7742/6000-0 FAX: +43(0)7742/6000-5216 mail: ir@ktmpowersports.com WWW: www.ktm.com sector: Technology ISIN: AT0000645403 indexes: mid market

stockmarkets: official market: Wien
language: English

Rückfragen & Kontakt:

KTM Power Sports AG
Mag. Viktor Sigl MBA
Tel: +43 7742 6000 144
Mail to: viktor.sigl@ktm.at