KTM Industries AG: Strong growth in the first half year of 2017 continued

28.07.2017

Preliminary key figures for first half of 2017

• Revenues: 758.8 m€ / + 12% to previous year

• Motorcycle sales: 110,518 / + 11% to previous year

• EBIT: 65.8 m€ / - 5% to previous year

• Offensive investment program: 87.6 m€ / +33% to previous year

• 417 employees hired (+8%)

• Positive outlook for the end of the business year

Revenues, sales and earnings in the first half of 2017

With record sales of more than 110,000 motorcycles, KTM Industries Group achieved revenues in the amount of 758.8 m€ in the first half year of 2017 (+12%) after 676.9 m€ in the previous year. In this way KTM Industries Group further strengthened its leading position as largest European motorcycle producer.

The operating profit (EBIT) for the first half of 2017 exceeded the figures planned for the period, despite the budgeted burdens from starting up the drivetrain production plant at Pankl, and amounted to 65.8 m€ after 69.6 m€ in the previous year (-5%). The EBITDA is 105.8 m€ and above the figures of the previous year.

Despite the offensive investment program, the equity ratio increased to nearly 35%.

With 110,518 sold motorcycles (+11% to previous year) of the brands KTM and Husqvarna Motorcycles, KTM AG is again the number 1 in Europe (in terms of units) and therefore belongs to the fastest growing motorcycle brands worldwide. Especially to be emphasized is the disproportional growth in sales in India with 29% and USA/Canada with more than 15%, compared to the previous year.

The export ratio is over 95% sustainably, with more than 50% being sold outside of Europe. To strategically develop KTM's important sales market Oceania (Australia and New Zealand), KTM has participated in its Australian importer with 26%. Pankl Racing Systems AGcould report growth, both in the segment racing/high performance and in the segment aerospace. In the first half of 2017 the racing segment benefitted especially from changes in the racing regulations, which led to higher development expenditures of the teams. The high performance segment was dominated by the expansion of the new drivetrain production facility at the Kapfenberg location. The demand on the helicopter sector is still very dampened. In addition to the existing business with main and tail rotor shafts for helicopters, the engine business is currently established.

In the first half year 2017, WP Group could realize further growth as Tier 1 supplier in the slipstream of the KTM Group. For the future, the expansion of production capacities as well as the development of production technology and increase in capacity is of major importance.

Offensive investment program at the Austrian sites

In the first half year 2017 the investment program at the Austrian sites was continued in the amount of around 35 m€. The investments of the first half year, including product development, amounted to approximately 87.6 m€ in total.

At the high performance drivetrain production facility in Kapfenberg, the ramp-up phase has already been started successfully. In Mattighofen, the expansions of the research and development center and the logistics center are running accordingly to plan and each will be completed in December 2017.

Increase in the number of employees: + 417 employees

Due to the strong growth, additional 417 employees were hired in the first half year 2017. Thereof 401 in Austria. As of June 30, 2017, the number of employees within the group amounted to 5,486, thereof 4,317 in Austria. About 15% of the total number of employees within the group work in research and development.

Positive outlook for the end of the business year

For the second half of 2017, the Group expects a continuing positive growth trend as in the first half year.

About KTM Industries Group

The KTM Industries Group is a leading European vehicle group with a strategic focus on the global sports motorcycle segment and the automotive high tech components segment. With its worldwide renowned brands KTM, Husqvarna Motorcycles, WP and Pankl, the group is among the technology and market leaders. Within the group there is a high degree of technological network, which is, in this form, unique in Europe. Strategic partnerships at an operational level strengthen the competitiveness in our respective markets. All these factors are the basis for the high innovation level of KTM Industries Group and ensure the organic growth course sustainably.

Preliminary key figures H1 2017 of KTM Industries Group (consolidated)