Corporate News                          
Wels, March 28, 2023

PIERER Mobility AG: Record Result 2022 confirmed

• Revenues: EUR 2,437 million (+19 %)
• EBIT: EUR 235 million (+22 %)
• EBITDA: EUR 381 million (+15 %)
• Sales volume: 375,492 motorcycles (+13 %)
• Sales volume: 118,465 E-bicycles & bicycles (+15 %)
• Number of employees increased by 839 (+16 %) to 6,088
• Outlook - positive guidance for 2023 confirmed

Revenues and earnings in the 2022 financial year

The PIERER Mobility Group increased its consolidated sales by 19.4 % to a new record of EUR 2,437 million (previous year: EUR 2,042 million) in the 2022 financial year despite severe supply chain challenges. The operating result (EBIT) improved by about 22 % to EUR 235 million (previous year: EUR 193 million), which corresponds to an EBIT margin of 9.7 %.  The operating result before depreciation and amortisation (EBITDA) of EUR 381 million is approximately EUR 50 million more than in the previous year. The EBITDA margin amounts to 15.6 %. As already reported, the Executive Board, in agreement with the main shareholder Pierer Bajaj AG, will propose to the Supervisory Board and the Annual General Meeting a dividend of EUR 2 per dividend-bearing share for the 2022 financial year on the basis of the record result achieved, which will lead to a doubling of the previous year's dividend.

In the 2022 financial year, about EUR 268 million were invested in growth initiatives, of which approximately EUR 161 million in product development & tools and EUR 62 million in plant & infrastructure. One of the most significant single investments in infrastructure (property, plant and equipment) in the 2022 financial year was the continued construction and completion of the new headquarters of KTM North America in Murrieta, California. Company premises have been constructed over an area of approx. 14,000 m² and comprise office and motorsport buildings as well as storage areas. The total investment for the construction of the building was around USD 53 million. Due to the continued high levels of investment and an increase in working capital, the free cash flow was slightly negative at EUR -3 million in 2022. In the last three financial years, we generated average free cash flows of 5.6 % of sales, which is above the sustainable target range of 3 to 5 % of revenues.

In the past financial year, the number of employees increased by 839. As of December 31, 2022, the PIERER Mobility Group had a total of 6,088 employees, thereof about 5,000 in Austria. Approximately 1,200 employees or 20 % of the workforce are engaged in research & development. Last year, around EUR 2.8 million was invested in staff training. In addition, the new training centre for apprentices was opened at the main location in Mattighofen in September. As of the balance sheet date, about 200 apprentices were employed and trained in 20 different professions.

Motorcycle sales volume: 375,492 (+13 %)

With 268,575 KTM motorcycles, 75,266 Husqvarna motorcycles and 31,651 GASGAS motorcycles sold in the 2022 financial year, a sales volume of 375,492 motorcycles (2021: 332,881 units) was achieved. The motorcycles segment thus achieved an increase in sales volumes of 13 %. In the sales regions in Europe, unit sales were around 122,000 motorcycles (+2 %) and around two-thirds of the motorcycles (approx. 253,000) were sold in the markets outside Europe. Growth was particularly strong in North America, where almost 110,000 motorcycles were sold, an increase of 67 % compared to the previous year. Sales also developed well in South America with 37,600 (+16 %) and in Asia with about 32,000 (+7 %) motorcycles sold. Sales in Australia were roughly at the previous year's level (-6 %) with around 19,500 motorcycles sold.

After a strong increase in global demand for motorcycles in the previous year, both the European motorcycle market (-3 %) with a volume of about 730,000 units, and the North American motorcycle market (-6 %) with a size of about 470,000 units have slightly decreased and stabilised at a high level in 2022. The market share of all three brands was about 10 % in Europe and 12 % in North America in 2022. The Australian (including New Zealand) motorcycle market also declined slightly, with a 10 % drop to 60,000 new motorcycles registered. Nevertheless, the market share of the three brands in total increased to 21 % in this market. The relevant Indian motorcycle market, on the other hand, is clearly on the upswing (+23 %). Bajaj sold almost 50,000 KTM and Husqvarna motorcycles in India, resulting in a market share of 5 %. The one millionth motorbike - a KTM Adventure 390 - has rolled off the production line at Bajaj's Chakan plant in Pune. This Bajaj Auto Limited plant has been co-developing and producing motorcycles for global distribution since 2011.

Bicycles sales volume: 118,465 (+15 %)

Despite massive supply problems, the new mobility division with the brands Husqvarna, R Raymon, GASGAS and FELT achieved sales volume growth of more than 15 % and sold 118,465 bicycles (previous year: 102,753), of which 74,479 were e-bicycles (previous year: 76,916). In the bicycle division, the DACH region (Germany, Austria and Switzerland) continues to be the largest sales market with around 67 %. In 2022, the share of sales in North America could be increased from just under 1 % to around 11 % in the bicycle division.

Strategic cooperation with MV Agusta & takeover of European distribution for CFMOTO motorcycles

An important milestone for the company was the conclusion of a strategic cooperation with the Italian premium motorbike manufacturer MV Agusta. In November 2022, KTM AG acquired a stake of 25.1 % in MV Agusta Motor S.p.A., based in Varese (Italy), by ways of a capital increase. As part of this strategic partnership between the two European motorcycle manufacturers, KTM will provide supply chain support to MV Agusta SpA and will take over the sourcing of components. Furthermore, through this cooperation, MV Agusta SpA will partly distribute its product range through the worldwide distribution network of PIERER Mobility.

The cooperation with CFMOTO will intensify with the launch of the newly founded KTM Group subsidiary CFMOTO Motorcycles Distribution GmbH, Munderfing (Austria). This company will take over the distribution of CFMOTO motorcycles in Europe, especially in Germany, Austria, Switzerland, Spain and Great Britain.

Outlook - positive guidance for 2023 confirmed

PIERER Mobility confirms its earnings forecast for the 2023 financial year announced on January 9, 2023, continuing to focus on growth in both motorcycles and (e-)bicycles in the 2023 financial year. The Executive Board expects sales growth of between 6 and 10 % with an EBIT margin of 8 to 10 %.

Key figures 2022 of PIERER Mobility Group (consolidated)

¹⁾ Excluding lease additions (IFRS 16) in the amount of EUR 25.9m

The annual financial report and the sustainability report for the 2022 financial year will be published on March 28, 2023, and be made 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

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, FELT Bicycles and R Raymon 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 INTIMATION 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.

For further information:

Investor Relations

Melinda Busáné Bellér

Tel.: +43 (0) 1 533 1 433 – 70

Email: ir@pierermobility.com

Website: www.pierermobility.com