KTM Industries AG

Strong growth in the first half year of 2017 continued

Business news for the stock market

Wels (pta005/28.07.2017/07:00) - * Revenues: 758.8 mEur / + 12% to previous year
* Motorcycle sales: 110,518 / + 11% to previous year
* EBIT: 65.8 mEur / - 5% to previous year
* Offensive investment program: 87.6 mEur / +33% to previous year
* 417 employees hired (+8%)
* Positive outlook for the end of the business year

Revenues, sales and earnings in the first half of 2017
With record sales of more than 110,000 motorcycles, KTM Industries Group achieved revenues in the amount of 758.8 mEur in the first half year of 2017 (+12%) after 676.9 mEur in the previous year. In this way KTM Industries Group further strengthened its leading position as largest European motorcycle producer.

The operating profit (EBIT) for the first half of 2017 exceeded the figures planned for the period, despite the budgeted burdens from starting up the drivetrain production plant at Pankl, and amounted to 65.8 mEur after 69.6 mEur in the previous year (-5%). The EBITDA is 105.8 mEur and above the figures of the previous year.

Despite the offensive investment program, the equity ratio increased to nearly 35%.

With 110,518 sold motorcycles (+11% to previous year) of the brands KTM and Husqvarna Motorcycles, KTM AG is again the number 1 in Europe (in terms of units) and therefore belongs to the fastest growing motorcycle brands worldwide. Especially to be emphasized is the disproportional growth in sales in India with 29% and USA/Canada with more than 15%, compared to the previous year.

The export ratio is over 95% sustainably, with more than 50% being sold outside of Europe. To strategically develop KTM's important sales market Oceania (Australia and New Zealand), KTM has participated in its Australian importer with 26%.

Pankl Racing Systems AG could report growth, both in the segment racing/high performance and in the segment aerospace. In the first half of 2017 the racing segment benefitted especially from changes in the racing regulations, which led to higher development expenditures of the teams. The high performance segment was dominated by the expansion of the new drivetrain production facility at the Kapfenberg location. The demand on the helicopter sector is still very dampened. In addition to the existing business with main and tail rotor shafts for helicopters, the engine business is currently established.