KTM Industries AG

Earnings Forecast for 2018 confirmed - Eighth record result in a row! - Seite 2

Outlook 2019
KTM anticipates the European market growth to slow down. A further market decline is expected for North America. KTM expects the highest relative growth rates above all in the ASEAN region and in India.

Despite a still volatile and very challenging market environment, the development strategy of the KTM Industries Group continues to focus on organic growth. Among other things, this will be achieved by expanding the existing dealer network and introducing new products. Overall, a positive outlook can be provided for the 2019 financial year. The goal is to maintain the EBIT margin and increase the free cash flow potential to 3-5 % of revenue (p.a.).

With the transfer of the production of Husqvarna road motorcycles up to 400 cm3 to the strategic partner Bajaj planned in Q4 2019, KTM expects a continuation of its growth course. KTM expects further sales increases in the emerging markets due to the competitive manufacturing costs. The relocation to India also creates additional free production capacities in Mattighofen.

KTM Industries AG confirms its sales target of 400,000 motorcycles for 2022. In addition, KTM has set itself the goal of developing Husqvarna Motorcycles into the third largest European motorcycle manufacturer.

About KTM Industries-Group
The KTM Industries Group is a leading European vehicle group with a strategic focus on the global sports motorcycle segment. With its worldwide renowned brands KTM, Husqvarna Motorcycles and WP is among the technology and market leaders. Within the group there is a high degree of technological network, which is, in this form, unique in Europe. Strategic partnerships at an operational level strengthen the competitiveness in its respective markets. All these factors are the basis for the high innovation level of KTM Industries Group and ensure the organic growth course sustainably. Further information can be found at www.ktm-industries.com, www.ktmgroup.com and www.wp-group.com.

Key figures 2018 of KTM Industries Group (consolidated)

Earnings figures		2017	2018		Chg. in %
Revenues	mEur	1,533.0	1,559.6		2%
EBITDA	mEur	218.9	252.5		15%
EBIT	mEur	132.5	161.2		22%
Earnings after taxes	mEur	83.9	114.2		36%
Earnings after minorities	mEur	44.7	67.5		51%
EBITDA margin		14.3%	16.2%
EBIT margin		8.6%	10.3%
Balance sheet ratios		12/31/2017	12/31/2018		Chg. in %
Balance sheet total	mEur	1,465.2	1,353.9		-8%
Equity	mEur	528.6	550.8		4%
Equity ratio	in %	36.1%	40.7%
Net debt	mEur	375.0	323.3		-14%
Gearing	in %	70.9%	58.7%
Net debt / EBITDA		1,71x	1,28x
Capex	mEur	-178.6	-183.6		3%
Employees (reporting date) *)	Headcount	5,887	4,303
*) in 2018 without Pankl Group
Cash-Flow figures		2017	2018
Cash-Flow from operating activities	mEur	161.3	85.5		-47%

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