EQS News: PIERER Mobility AG / Keyword(s): Change in Forecast/Strategic Company Decision PIERER Mobility reacts to the more stringent global conditions and adjusts guidance June 14, 2024 / 5:55 p.m. CET/CEST The issuer/publisher is responsible for the content of the announcement . ════════════════════════════════════════ ══════════ ════════════════════════ Corporate News Wels, June 14, 2024 PIERER Mobility reacts to the stricter global conditions and adjusts guidance • Sales below expectations due to the persistently high interest rates in the USA and the volatile market environment in Europe • Extensive package of measures being implemented: • Tightened cost management and reduction of production volumes in Austria • Expansion of the supply chain in India and China • Realignment of the bicycle division • Adjustment of the guidance for the 2024 financial year Sales behind expectations due to the persistently high interest rates in the USA and the volatile market environment in Europe. In the current financial year, the dynamics in PIERER Mobility’s core motorcycle markets in the USA and Europe have slowed significantly. Due to the latest interest rate decisions in the USA, interest rates are expected to remain high, which will weigh on sales expectations for the American market. Likewise, sales figures in Europe continue to be volatile. Overall, after three above-average successful years, PIERER Mobility’s sales figures will be below expectations this year. This means that dealers will reduce their inventory levels and thus continue to tie up considerable capital. The PIERER Mobility Group is therefore continuing its efforts to strengthen its dealer structure through extended payment terms and higher discounts. These measures have already led to a sharp increase in working capital in the past financial year. For 2024, management expects consistently high working capital and the associated capital commitment. As a result, a significant burden on EBIT and the financial result is to be expected in the current financial year. Stricter cost management and reduction in production volumes in Austria The production costs of motorcycles in Europe have increased due to high wage agreements and increasing costs associated with regulations and bureaucracy and are putting a strain on competitiveness. Therefore, production volumes at the production site in Mattighofen will be significantly reduced. At the same time, the company is tightening cost management throughout the group. With the growth in sales figures over the last ten years, the number of employees at the motorcycle subsidiary KTM AG has more than doubled. In view of the changed location and market situation, the number of employees now had to be adjusted. This workforce reduction after years of increasing employment is painful, but necessary to maintain and secure the competitiveness of the production location. Expansion of the supply chain in India and China Another focus in 2024 is increasing efficiency in product development. The focus is on aligning and prioritizing activities in accordance with the Group’s premium brand strategy and streamlining development processes. Following on from this, joint research and development will be expanded with the strategic partner Bajaj Auto in India and the JV partner CFMOTO in China. Due to the increasingly fragile supply industry in Europe, the PIERER Mobility Group uses the advantageous economic conditions in these regions to ensure competitiveness. An efficient and high-quality supply industry is being built there. Realignment of the bicycle sector During the Corona pandemic, demand for bicycles rose rapidly, which led to overheating in the bicycle market and disruptions throughout the entire supply chain. As a result, the company’s own inventories and those of suppliers and dealers reached record highs. The return of these inventories to normal levels continues, with massive pressure on sales prices at the same time. Due to the developments described above, the extraordinary need for devaluation and restructuring in 2024 will lead to a significantly negative result in the Bicycle segment. The realignment of the bicycle division, which was initiated in the 2023 financial year with a focus on the premium segment, will be consistently implemented and completed in 2024. Adjustment of the guidance for the 2024 financial year For the 2024 financial year, the Management Board expects a decline in sales of 10% to 15% for the two segments of motorcycle and bicycle due to market developments. In the motorcycle sector, the Management Board assumes for the current financial year that the cost savings introduced can compensate for the negative effects of declining sales to the extent that a balanced to slightly positive EBIT can be generated. The development of existing dealers as well as the further expansion of the dealer network to support the brand strategy is the core topic in 2024. In the bicycle sector, however, the management board expects a significantly negative EBIT of € -110 to € -130 million for the 2024 financial year, which is This is essentially due to the extraordinary need for devaluation and restructuring mentioned above. This completes the restructuring of the bicycle area. About the Group PIERER Mobility AG is the umbrella company for Europe’s leading manufacturer of motorized two-wheelers and produces a full premium brand range of KTM, GASGAS, Husqvarna and MV Agusta Motorcycles. With its innovative strength, PIERER Mobility is a pioneering technology leader for two-wheeled e-mobility through its motorcycle brands. The focus in the bicycle sector is on the premium segment. The premium brand range also offers high-performance components from the WP brand as well as special KTM X-BOW high-performance sports cars. Legal notice THIS NOTIFICATION CONSTITUTES NEITHER AN OFFER TO SELL SECURITIES NOR A REQUEST TO MAKE AN OFFER TO PURCHASE SECURITIES OF PIERER MOBILITY AG. IT IS NOT INTENDED FOR DISTRIBUTION, TRANSMISSION OR PUBLICATION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN THE UNITED STATES, AUSTRALIA, CANADA, JAPAN OR SOUTH AFRICA OR ANY OTHER COUNTRY WHERE DISTRIBUTION OF THIS ANNOUNCEMENT IS UNLAWFUL. For further information: Investor Relations Mag. Melinda Busáné Bellér Tel.: +43 (0) 1 533 1 433 – 70 Email: (1)ir@pierermobility.com
Website: (2) www.pierermobility.com
ISIN: AT0000KTMI02; Valor number (Switzerland) 41860974; Securities symbol: PKTM; Bloomberg: PKTM SW, PKTM AV; Reuters: PKTM.S, PKTM.VI ══════════════════════════════════ ═══════ ═════════════════════════════════ June 14, 2024 CET/CEST Publication of a corporate news/ Financial message transmitted by EQS Group AG. www.eqs.com
════════════════════════════════════════ ══════════ ════════════════════════ Language: German Company: PIERER Mobility AG Edisonstrasse 1 4600 Wels Austria Telephone: +43 (0) 7242 69 402 Email :ir@pierermobility.com
Internet: www.pierermobility.com
ISIN: AT0000KTMI02 WKN: A2JKHY Exchanges: SIX, Vienna Stock Exchange EQS News ID: 1925903 Security number (Switzerland): 41860974 Securities code: PKTM Bloomberg: PKTM SW; PKTM AV Reuters: PKTM.S; PKTM.VI End of message EQS News Service 1925903 June 14, 2024 CET/CEST References Visible links 1. ir@pierermobility.com
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