Corporate News on the Financial Figures 2020, Wels, 30 March 2021

PIERER Mobility AG: Record result 2020 confirmed!
Active COVID-19 management and PTW boom lead to further record year

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

- Revenues: € 1,530.4m (previous year: € 1,520.1m)

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

- Free Cash Flow: € 165.8m (previous year: € 91.6m)

- Dividend payment of EUR 50 Cent per share

- Outlook (Guidance) for 2021

Revenues and earnings in the business year 2020

In the 2020 financial year, the PIERER Mobility Group generated record revenue of € 1,530.4 million (previous year: € 1,520.1 million), despite a two-month interruption in motorcycle production, with the e-bike division already contributing sales of € 112.5 million to this total. In this unusually challenging year, the result from operating activities (EBIT) reached € 107.2 million (previous year: 131.7 million), corresponding to an EBIT margin of 7%. The operating result before depreciation and amortization (EBITDA) of € 233.5 million was slightly below the previous year's level (previous year: EUR 240.8 million), corresponding to an EBITDA margin of 15.3%.

The Free Cash Flow was almost doubled to € 165.8 million compared to € 91.6 million in 2019, corresponding to 10.8% of sales. In the business year 2020, around € 110.9 million was invested in product development and tools as well as € 39.3 million in operating facilities & infrastructure and in the acquisition of the GASGAS brand. On December 31, 2020, the PIERER Mobility Group employed 4,586 people, 3,822 of them in Austria.

As the largest European manufacturer, with a broad product range of offroad and street motorcycle models, the very high demand for powered two-wheelers, both in the leisure and sports segments as well as in urban traffic in particular, was well covered. 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.

An equally important step on the path to growth was the full acquisition of the shares in GASGAS Motorcycles in July 2020, which was positioned as the third Group brand in the offroad segment (trial segment). In the 2020 business year, with its three motorcycle brands the Group further expanded its presence in the key motorcycle sales markets, increasing its market share to 12.7% (previous year: 11.0%).

Dividend payment of € 50 Cent per share

It will be proposed to the Annual General Meeting the payment of a dividend of € 0.50 per share for the 2020 financial year, that means this year's dividend will be 20 cents higher than the value of the last dividend payment before the COVID-19 crisis.

Outlook 2021

The objective of the PIERER Mobility Group is to continue to sustainably expand its market share in the global motorcycle markets in 2021, despite the COVID-19 crisis, and to achieve market leadership in Europe. This will be supported, among other things, by the full integration of GASGAS as a third brand and the further development of the network of dealers. The integration of the e-bike activities was successfully implemented in 2020. In the medium term, the intention is to become a major global player in this area as well. In addition to the core markets in the DACH region, expansion into other European markets and the addition of motorcycle dealers to the network of dealers are targeted for 2021.

In addition to the e-bike segment, a stronger focus will be placed on electric mobility in the scooter segment in the coming years. In addition to the joint electric two-wheeler platform with Bajaj, investments were made in an electric mobility center in Anif near Salzburg. In the future, up to 300 employees will work on electric mobility there.

In addition to safeguarding production capacities, the focus will continue to be on securing the supply chain as well as on increasing efficiency and productivity. For the first half of the year, challenges are expected in international supply chains, as capacity and delivery bottlenecks at individual suppliers and in international transport logistics could result in delays to deliveries. To protect the health and safety of employees, precautionary measures are taken on an ongoing basis, and they are constantly evolving and being integrated into the work process. In addition to the strong set up of testing capacities, work is underway to establish a vaccination line within the company.

For the 2021 financial year, the Executive Board expects revenues of between EUR 1,800 - 1,900 million, an EBIT margin of between 8 - 9% and an EBITDA margin of over 15%.


Group figures 2020 of PIERER Mobility AG (consolidated)
 

¹⁾ excluding lease additions (IFRS 16)
 

The Annual Financial Report, the Sustainability Report of the Financial Year 2020 and the Corporate Governance Report will published on March 30, 2021 and are available on the company's website under the following links:

About the Group
The PIERER Mobility Group is Europe's leading manufacturer of "powered two-wheelers" (PTW). With its 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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Mag. Michaela Friepeß
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