EQS-Adhoc: PIERER Mobility AG: Economically volatile and difficult conditions led to negative result in H1 2024, outlook for the full year confirmed
   EQS-Ad-hoc: PIERER Mobility AG / Key word(s): Half Year Results
   PIERER Mobility AG: Economically volatile and difficult conditions led to
   negative result in H1 2024, outlook for the full year confirmed

   23-Aug-2024 / 17:58 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 notification pursuant to Article 17 of Regulation (EU) No 596/2014
   (MAR)

   Ad hoc announcement pursuant to Art. 53 LR

                      Wels, August 23, 2024

    

    PIERER Mobility AG: Economically volatile and difficult conditions led to
   negative result in H1 2024, outlook for the full year confirmed

     • Results in H1 2024 negative, but in line with the current outlook for
       the 2024 financial year
     • Significant improvement expected in H2
     • Working capital remains at a high level, significant improvements
       expected at the end of 2024 and in 2025
     • Increased net debt but solid financing structure
     • Motorcycle market: Challenging market environment - Europe slightly
       positive, North America, Australia and China declining, India positive
     • MV Agusta integration process going according to plan
     • Bicycle market: persistent oversupply on the market necessitated value
       adjustments, focus on the premium segment
     • Full-year outlook for 2024 confirmed

    

    

    

   Earnings performance in the first half of 2024

    

                                  H1 2023 H1 2024
   Revenue                  in €m   1,388   1,007
   EBITDA                   in €m     179    -102
   EBIT                     in €m      97    -195
   Employees as of June 30 People   6,314   6,024

    

   The PIERER Mobility Group generated revenue of € 1,007 million (-27%) in
   H1 2024. Around 93% of this was attributable to the Motorcycles segment
   and 7% to the Bicycles segment. Around 61% of revenue was generated in
   Europe, 27% in North America (USA, Canada, Mexico) and 12% in other
   countries.

    

   At € -195 million, the operating result (EBIT) in H1 2024 was
   significantly below the previous year's figure of € 97 million. The main
   factor behind the negative result was the Bicycles
   segment at € -117 million, of which around € -75 million was attributable
   to special write-offs/effects. The result in the Motorcycles segment
   amounted to € -78 million. The Executive Board expects that the second
   half of the year - primarily driven by a higher-margin product mix - will
   turn the overall result into positive territory.

    

   The operating result before depreciation and amortization (EBITDA) of
   € -102 million (previous year: € 179 million) corresponds to an EBITDA
   margin of -10%.

    

   The result for the period amounted to € -172 million (previous year: € 53
   million).

    

   The main drivers behind the results for the first half of the year were
   the decline in sales due to the economic environment (particularly in the
   USA), expenses in connection with the restructuring of the Bicycle segment
   as well as the production and personnel costs in Europe.

    

   Working capital and net debt

    

   The increased net debt of € 1,469 million is due to the negative result as
   well as the increased capital commitment. One of the main reasons for this
   is the necessary support for the global dealer network. As a result of the
   packages of measures, working capital and thus net debt will return to a
   significantly lower level by the end of 2025. The necessary financing
   requirements have been secured.

    

    

   Significant improvements expected in H2 2024 - measures to improve
   earnings

    

   The following measures were taken to improve the result in the second half
   of the year:

    

     • A further significant cost reduction will take place in the third
       quarter through the reduction of an additional 200 employees in the
       overhead area. Together with the cost reductions and personnel
       adjustments already made in the first half of the year, this will
       secure and strengthen the competitiveness of PIERER Mobility AG in the
       long term.
     • The reduction in production volumes by around 25% in 2024 is intended
       to relieve pressure on the product pipeline and dealer warehouses.
       This will lead to a significant reduction in capital commitment and
       therefore also in net debt.
     • Another focus is on increasing efficiency in product development. The
       focus is on aligning and prioritizing activities as part of the
       Group's premium brand strategy as well as streamlining and
       accelerating development processes. Following on from this, we are
       leveraging further synergies in research and development with our
       strategic partners.
     • The loss-making bicycle division will be systematically restructured.
       The realignment already initiated in the 2023 financial year with a
       focus on the premium segment will be implemented and completed in
       2024.

    

   Motorcycles segment

    

                          H1 2023 H1 2024 Change
   External revenue in €m   1,277     936   -27%
   EBITDA           in €m     196      11   -94%
   EBIT             in €m     117     -78   n.m.

    

   In H1 2024, revenue in the Motorcycles segment fell by 27% to € 936
   million. EBITDA reached € 11 million (previous year: € 196 million) and
   EBIT amounted to € -78 million (previous year: € 117 million).

    

   The macroeconomic environment remained challenging in H1 2024. In
   particular, high interest rates in the USA, inflation in many European
   countries and a slowdown in global economic growth had a negative impact
   on PIERER Mobility's motorcycle sales in H1 2024, which fell by 21.2% to a
   total of 147,496 units. Around 44% of motorcycles were sold in Europe, 21%
   in North America including Mexico, 22% in India and Indonesia and 13% in
   the rest of the world. In H1 2024, PIERER Mobility acquired a majority
   stake in MV Agusta. The integration of the Italian luxury motorcycle
   manufacturer is going according to plan.

    

   The development of motorcycle registrations in PIERER Mobility's core
   markets presented a mixed picture in the first half of the year: a
   slightly positive trend in overall demand in Europe, driven primarily by
   the low-price segment (Chinese imports), was offset by a decline in demand
   in North America as well as in Asia, Australia and New Zealand. In this
   environment, PIERER Mobility succeeded in maintaining or achieving a
   market share of over 10% in each of the key markets of Europe, the USA and
   China.

    

    

   Bicycles segment

    

                          H1 2023 H1 2024   Change
   External revenue in €m     108      69     -36%
   EBITDA           in €m     -14    -115 > -100 %
   EBIT             in €m     -16    -117 > -100 %

    

   At € 69 million, revenue in H1 2024 was 36% lower than in H1 2023. EBITDA
   amounted to € -115 million (previous year: € -14 million) and EBIT to
   € -117 million (previous year: € -16 million).

    

   As part of the restructuring of the bicycle business, the R Raymon brand
   was sold as a first step in 2023. In the first half of the previous
   financial year, this brand had a sales share of 51% for e-bicycles and 61%
   for bicycles. Strong sales increases for the Husqvarna, GASGAS and Felt
   brands in H1 2024 meant that sales of e-bicycles only fell by 26% to
   28,771 units and sales of bicycles by 19% to 25,049 units. The special
   effects in connection with the restructuring of the bicycle business
   amounted to around € -75 million in H1 2024. PIERER Mobility is also
   focusing on premium brands in this segment. The Group therefore increased
   its stake in the bicycle manufacturer Felt and has been the majority
   shareholder since July 1, 2024.

    

   Employees

    

   As at June 30, 2024, the PIERER Mobility Group employed 6,024 people,
   4,712 of whom were based in Austria (78%). In total, the Group's headcount
   has fallen by 160 employees since December 31, 2023. This was due to the
   reduction of 373 employees in H1 2024, 309 of whom were in Austria. In
   contrast, the first-time full consolidation of MV Agusta (Italy) added an
   additional 213 employees to the Group.

    

   Outlook for the 2024 financial year confirmed

    

   In a persistently challenging environment, the Executive Board expects a
   significantly better second half of the year, supported by a higher-margin
   product mix, particularly in the offroad segment. For 2024 as a whole, it
   is forecasting a decline in revenue of 10% to 15% compared to the previous
   year.

   In the Motorcycles segment, the Executive Board assumes that the cost
   savings introduced will be able to compensate for the negative effects of
   declining sales to such an extent that a balanced to slightly positive
   EBIT can be generated in the 2024 financial year. The development of
   existing dealers and the further expansion of the dealer network to
   support the brand strategy will be key issues in the 2024 financial year.

   In the Bicycle division, however, the Executive Board expects a
   significantly negative EBIT of € -110 to € -130 million, which is mainly
   due to extraordinary impairment and restructuring requirements. Valuation
   measures amounting to € -75 million have already been recognized in the
   half-year results.

    

    

   Group key figures H1 2024 of PIERER Mobility AG

    

                                       H1 2023       H1 2024   Change
   Revenue                  in €m        1,388         1,007   -27.4%
   EBITDA                   in €m          179          -102 > -100 %
      EBITDA margin                      12.9%        -10.1%  -23.0pp
   EBIT                     in €m           97          -195 > -100 %
      EBIT margin                         7.0%        -19.4%  -26.4pp
   Profit for the period    in €m           53          -172 > -100 %
   Earnings per share        in €            2            -5 > -100 %
                                                                     
                                  Dec 31, 2023 June 30, 2024   Change
   Balance sheet total      in €m        2,953         3,269    10.7%
   Equity                   in €m          909           722   -20.6%
      Equity ratio                       30.8%         22.1%   -8.7pp
   Working capital employed in €m          531           809    52.2%
   Net debt                 in €m          776         1,469    89.3%
      Gearing                            85.3%        203.4%  118.1pp

    

    

   The Half-Year Financial Report 2024 of PIERER Mobility AG and the current
   investor presentation will be available on the company's website at
   (1)https://www.pierermobility.com/en/investor-relations/publications
   before the market opens on Monday, August 26, 2024.

    

   Legal notice

   THIS ANNOUNCEMENT DOES NOT CONSTITUTE AN OFFER OF SECURITIES FOR SALE OR A
   SOLICITATION OF AN OFFER TO PURCHASE SECURITIES OF PIERER MOBILITY AG. IT
   IS NOT FOR DISTRIBUTION, TRANSMISSION OR PUBLICATION, DIRECTLY OR
   INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES, AUSTRALIA,
   CANADA, JAPAN OR SOUTH AFRICA OR ANY OTHER JURISDICTION IN WHICH THE
   DISTRIBUTION OF THIS ANNOUNCEMENT WOULD BE UNLAWFUL.

    

   For further information:

   Investor Relations

   Hans Lang & Melinda Busáné Bellér

   Tel: +43 676 4140945 and +43 676 4093711, respectively

   Email: ir@pierermobility.com

   Website: (2)https://www.pierermobility.com

    

   ISIN: AT0000KTMI02; security number (Switzerland): 41860974; securities
   code: PKTM;

   Bloomberg: PKTM SW, PKTM AV; Reuters: PKTM.S, PKTM.VI

    

    

   End of Inside Information

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

   23-Aug-2024 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:      ir@pierermobility.com
   Internet:    www.pierermobility.com
   ISIN:        AT0000KTMI02
   WKN:         A2JKHY
   Listed:      SIX, Vienna Stock Exchange
   EQS News ID: 1974321

   Valorennummer (Schweiz): 41860974 Wertpapierkürzel: PKTM Bloomberg: PKTM
   SW; PKTM AV Reuters: PKTM.S; PKTM.VI

    
   End of Announcement EQS News Service


   1974321  23-Aug-2024 CET/CEST

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