PIERER Mobility adjusts guidance and responds to tougher global conditions

EQS-News: PIERER Mobility AG / Key word(s): Change in Forecast/Strategic
Company Decision
PIERER Mobility adjusts guidance and responds to tougher global conditions

14.06.2024 / 17:55 CET/CEST
The issuer is solely responsible for the content of this announcement.

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Corporate News

Wels, June 14, 2024

PIERER Mobility adjusts guidance and responds to tougher global conditions

  * Sales fall short of expectations due to persistently high interest rates
    in the USA and volatile market environment in Europe

* Comprehensive package of measures being implemented:

      * Tighter 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 guidance for the 2024 financial year

Sales fall short of expectations due to persistently high interest rates in
the USA and the volatile market environment in Europe

In the current financial year, momentum in PIERER Mobility's core motorbike
markets in the USA and Europe has slowed significantly. Due to the latest
interest rate decisions in the USA, interest rates are expected to remain
high, which will have a negative impact on sales expectations for the
American market. Sales figures in Europe are also still volatile. Overall,
PIERER Mobility's sales figures will fall short of expectations this year
after three years of above-average success.

This means that dealers will have to reduce their inventories 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.
Management expects working capital and the associated capital commitment to
remain high in 2024. This is expected to have a significant negative impact
on EBIT and the financial result in the current financial year.

Tighter cost management and reduction of production volumes in Austria

The production costs of motorbikes in Europe have risen due to high wage
settlements and increasing costs in connection with regulations and
bureaucracy, putting a strain on competitiveness. Production volumes are
therefore being significantly reduced at the production site in Mattighofen.
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 motorbike subsidiary KTM AG has more than doubled. In view
of the changed location and market situation, the number of employees has
now had to be adjusted. This reduction in personnel after years of rising
employment is painful, but necessary in order to maintain and secure the
competitiveness of the production site.

Expansion of the supply chain in India and China

Another priority in 2024 is to increase efficiency in product development.
The focus will be on aligning and prioritizing activities in line with the
Group's premium brand strategy and streamlining development processes.
Following on from this, joint research and development with the strategic
partner Bajaj Auto in India and the JV partner CFMOTO in China will be
expanded at the respective locations.

Due to the increasingly fragile supplier industry in Europe, the PIERER
Mobility Group is utilizing the favorable economic conditions in these
regions to secure its competitiveness. An efficient and high-quality
supplier industry is being established there.

Realignment of the bicycle division

During the coronavirus pandemic, demand for bicycles rose rapidly, leading
to overheating in the bicycle market and disruptions throughout the entire
supply chain. As a result, our own stocks and those of suppliers and dealers
reached record levels. The reduction of these inventories to a normal level
is continuing, while at the same time massive pressure is being exerted on
sales prices.

Due to the developments described above, the extraordinary impairment and
restructuring requirements in 2024 will lead to a significantly negative
result in the Bicycles segment.

The realignment of the Bicycles segment initiated in the 2023 financial year
with a focus on the premium segment will be systematically implemented and
completed in 2024.

Adjustment of the guidance for the 2024 financial year

For the 2024 financial year, the Executive Board expects a decline in sales
of 10% to 15% for both the motorcycles and bicycle divisions due to the
current market developments.

In the Motorcycles segment, the Executive Board assumes that the cost
savings introduced in the current financial year 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. The development of
existing dealers and the further expansion of the dealer network to support
the brand strategy will be key issues in 2024.

In the Bicycle division, however, the Executive Board anticipates a
significantly negative EBIT of EUR-110 to EUR-130 million for the 2024 financial
year, which is essentially due to the above-mentioned extraordinary
impairment and restructuring requirements. The restructuring of the Bicycle
division is therefore complete.

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, Husqvarna and MV Agusta Motorcycles. With its innovative
strength, PIERER Mobility is a pioneering technology leader in two-wheeled
e-mobility through its motorcycle brands. In the bicycle sector, the focus
is on the premium segment. In the bicycle sector, the focus is on the
premium segment. The premium brand range also includes high-performance
components under the WP brand and special KTM X-BOW high-performance sports
cars.

Legal disclaimer

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.

Contact:

Investor Relations

Melinda Busáné Bellér

Tel: +43 (0) 1 533 1 433 - 70

Email: ir@pierermobility.com

Website: www.pierermobility.com

ISIN: AT0000KTMI02; Swiss Valor Number (Switzerland): 41860974; Ticker
Symbol: PKTM; Bloomberg: PKTM SW, PKTM AV; Reuters: PKTM.S; PKTM.VI


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14.06.2024 CET/CEST This Corporate News was distributed 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:    1925903

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

End of News EQS News Service
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1925903 14.06.2024 CET/CEST