EQS-Ad-hoc: PIERER Mobility AG / Key word(s): Strategic Company
Decision/Change in Forecast
PIERER Mobility: Strategy sharpening and guidance adjustment
05-Dec-2023 / 17:51 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.
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Ad hoc announcement pursuant to article 17 Regulation (EU) No 596/2014
(MAR)
Ad hoc announcement pursuant to article 53 LR
Wels, December 5, 2023
PIERER Mobility: Strategy sharpening and guidance adjustment
• Focus on the core brands KTM, GASGAS, Husqvarna and MVAgusta
• Divestment of the Raymon and FELT brands and the non-e-bicycle
division
• Partial relocation of production and R&D activities to China (CFMOTO)
and India (Bajaj Auto)
• Adjustment of the 2023 guidance and outlook for 2024
Focus on the core brands KTM, GASGAS, Husqvarna and MVAgusta
The Board of Directors has taken the strategic decision to focus even more
strongly on the core powered two-wheelers business (motorcycles and
e-bicycles) and to concentrate on the premium brands KTM, GASGAS and
Husqvarna as well as MVAgusta.
As a result of this decision, the Board of Directors initiated the sale of
the Raymon and FELT brands and the divestment of the non-e-bike division.
The sale of the R Raymon brand has now been signed. The closing will take
place by the end of 2023. The R Raymon bicycle brand, which was founded in
2017, will continue to be managed by Susanne and Felix Puello in a new,
independent set-up. In addition, the process of selling the FELT bicycle
brand to a consortium led by Florian Burguet has also been initiated and
is expected to be closed in the first half of 2024. Florian Burguet will
step down from the Management Board of PIERER Mobility AG at the end of
December.
Electric bicycles (e-bicycles) from the Husqvarna and GASGAS brands are
being promoted and expanded in order to further strengthen activities in
the field of electromobility. As of the 2024 financial year, the segment
reporting will be newly structured. In future, it will be reported in the
segments “Motorcycles” and “E-Mobility”. In addition to e-bicycles, the
new “E-Mobility” segment will in future include all electrically powered
two-wheelers such as e-motorcycles, e-minis and stand-up scooters.
The corresponding resolutions will be presented to the Supervisory Board
at the next meeting.
Partial relocation of production and R&D activities to China (CFMOTO) and
India (Bajaj Auto)
The unfavourable economic conditions in Europe have led to the decision to
relocate parts of production for individual mid-range models and certain
R&D activities to strategic partner Bajaj Auto, India, and CFMOTO, China.
Among other things, this is intended to exploit cost advantages in these
regions and accelerate development and industrialisation processes.
This strategic decision is associated with a necessary reduction in staff
of up to 300 employees at the Austrian locations in 2024.
Adjustment of the 2023 guidance
In the motorcycle business the cost of dealer inventories has risen
sharply due to significantly higher interest rates despite good market
demand. PIERER Mobility is strengthening its dealer structure by extending
payment terms and offering higher discounts.
Due to the sufficient liquidity reserves available, PIERER Mobility AG
supports not only its dealers but also its suppliers in order to cushion
the significantly increased financial burdens caused by the rise in
interest rates and improve their liquidity situation.
This planned measure will lead to a significant reduction in total assets
and thus to a higher equity ratio for the group. The associated negative
impact on the company’s cash flow for the 2023 financial year is being
consciously accepted.
With the motorcycle business remaining at the guidance level, the
reorientation of the bicycle business that has been initiated will have a
significant negative impact on the overall result in 2023.
For these reasons, the guidance for the 2023 financial year has been
adjusted. The Board of Directors expects sales growth for the 2023
financial year of 7 % to 9 % with an EBIT margin of between 5 % and 7 %.
Outlook for the 2024 financial year
We expect the global economic environment to be difficult in the 2024
financial year. For the PIERER Mobility Group, 2024 will be a year of
consolidation, which will be used to strengthen the core business.
In order to secure the group’s profitability, the management will
implement cost-cutting measures in the double-digit million range in the
2024 financial year.
The Board of Directors expects sales to remain almost unchanged and an
EBIT margin of 5 % – 7 %.
About the PIERER Mobility 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 its innovative
strength, PIERER Mobility is a pioneering technology leader in two-wheeled
e-mobility through its motorcycle brands. The premium brand range also
includes high-performance components under the WP brand and special KTM
X-BOW high-performance sports cars.
Disclaimer
THIS ANNOUNCEMENT DOES NEITHER CONSTITUTE AN OFFER TO SELL NOR AN
/INVITATION 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.
Contact:
Investor Relations
Melinda Busáné Bellér
Tel: +43 (0) 1 533 1 433 – 70
Email: ir@pierermobility.com
Website: (1) www.pierermobility.com
ISIN: AT0000KTMI02; Swiss Valor Number (Switzerland): 41860974; Ticker
Symbol: PKTM; Bloomberg: PKTM SW, PKTM AV; Reuters: PKTM.S; PKTM.VI
End of Inside Information
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05-Dec-2023 CET/CEST News transmitted by EQS Group AG. www.eqs.com
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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: 1789925
Valorennummer (Schweiz): 41860974 Wertpapierkürzel: PKTM Bloomberg: PKTM
SW; PKTM AV Reuters: PKTM.S; PKTM.VI
End of Announcement EQS News Service
1789925 05-Dec-2023 CET/CEST
References