3 Contents Group figures Group structure Interim consolidated management report Interim consolidated financial statements Condensed notes to the consolidated financial statements Financial calendar Imprint 4 6 9 23 33 47 47 3 2 0 2 1 H _ t r o p e R
Report_H1 2023 Group figures Group Figures Download KE Y FINANCIAL PERFORMANCE INDICATORS: EARNINGS RATIOS Revenue EBITDA EBIT EBITDA margin EBIT margin OTHER FINANCIAL FIGURES: EARNINGS RATIOS Earnings after taxes Earnings after minorities BALANCE SHEET RATIOS Balance sheet total Equity Equity ratio Working capital employed 1) Net debt 2) Gearing 3) CASH-FLOW AND CAPEX Cash flow from operating activities Cash flow from investing activities Free cash flow 4) Cash flow from financing activities Capital expenditure 5) VALUE CREATION ROCE (Return on capital employed) 6) ROE (Return on equity) 7) ROIC (Return on invested capital) 8) STOCK EXCHANGE RATIOS 9) Share price as of June 30; SIX Swiss Exchange Number of shares Market capitalization Earnings per share Book value per share 10) in m€ in m€ in m€ in percent in percent H1 2022 1,154.1 162.3 92.8 14.1% 8.0% H1 2023 1,387.6 178.9 96.9 12.9% 7.0% Change 20.2% 10.3% 4.3% H1 2022 H1 2023 in m€ in m€ 68.2 67.6 53.0 55.0 Change -22.2% -18.6% 12/31/2022 06/30/2023 Change in m€ in m€ in percent in m€ in m€ in percent in m€ in m€ in m€ in m€ in m€ in percent in percent in percent in CHF in m shares in m CHF in € in € 2,550.6 914.4 35.8% 186.7 256.5 28.1% 2,675.5 889.9 33.3% 262.6 442.9 49.8% H1 2022 H1 2023 52.,4 -148.4 -96.0 68.1 -24.2 -122.0 -146.2 -38.5 102.5 4.9% -2.7% 40.6% 72.6% Change > 100% -21.7% 34.3% > 100% 133.1 29.8% 12/31/2022 06/30/2023 19.2% 20.3% 15.5% 17.5% 18.3% 14.7% 06/30/2022 06/30/2023 64.0 33.8 2,163.0 2.0 27.1 76.4 33.8 2,582.1 1.6 26.3 Change 19.4% 19.4% -18.6% -2.7%
5 NON-FINANCIAL KE Y PERFORMANCE INDICATORS: Employees 11) Unit sales motorcycles 12) Unit sales e-bicycles 13) Unit sales Powered Two-Wheelers (PTWs) Unit sales bicycles (without electric drive) Unit sales total: motorcycles and (e)-bicycles OTHER NON-FINANCIAL FIGURES: Production motorcycles worldwide 14) Production motorcycles in Mattighofen 15) Employees in R&D as % of total employees R&D expenses from revenue Female share H1 2022 H1 2023 Change Headcount Number of units Number of units Number of units Number of units Number of units Number of units Number of units in percent in percent in percent 5,656 163,334 34,829 198,163 16,588 214,751 H1 2022 169,991 91,019 21.0% 8.4% 25.0% 6,314 190,293 40,401 230,694 31,000 261,694 H1 2023 205,796 111,940 21.4% 8.5% 26.1% 11.6% 16.5% 16.0% 16.4% 86.9% 21.9% Change 21.1% 23.0% 1) Working capital employed = inventories + trade receivables - trade payables 2) Net debt = financial liabilities (current, non-current) - cash 3) Gearing = net debt / equity 4) Free cash flow = cash flow from operating activities + cash flow from investing activities 5) Additions to property, plant and equipment and intangible assets according to the schedule of investments, excluding lease additions (IFRS 16) 6) ROCE = EBIT / average capital employed Capital employed = Property, plant and equipment + goodwill + intangible assets + working capital employed 7) ROE = earnings after taxes / average equity 8) ROIC = NOPAT / average capital employed; NOPAT = EBIT - taxes 9) Since November 14th, 2016 listing on SIX Swiss Exchange 10) Equity / number of shares 11) Number of employees on the reporting day (including temporary staff) 12) Including motorcycles sold by partner Bajaj 13) Excluding bicycles without electric drive 14) Includes all produced motorcycles in Austria, India, China and Spain 15) Half-year production units at the headquarter in Austria
Report_H1 2023 Group Structure S I M P L I F I E D PRESENTATION BY ARE AS AS OF JUNE 2023 2) 1) 1) 100 % shareholdings: KTM AG, Husqvarna Motorcycles GmbH, GASGAS Motorcycles GmbH, WP Suspension GmbH; PIERER New Mobility GmbH (with the brands Husqvarna E-Bicycles, GASGAS and FELT); PIERER Innovation GmbH, Avocodo GmbH; KTM Forschungs & Entwicklungs GmbH; KTM Informatics GmbH; KTM Racing GmbH; 50 % shareholdings: KISKA GmbH; CERO Design Studio S.L. Other shareholdings: ACstyria Mobilitätscluster GmbH 12.3 %; Platin 1483. GmbH 100 %, Pierer E-Commerce GmbH 100 % 1) Newly founded in July 2023 2) In this presentation, stands for KTM AG, which, as the owner of the KTM brand, manufactures and/or distributes motorbikes and motorbike accessories under this brand. To be distinguished from this is KTM Fahrrad GmbH, which, as the exclusive licensee, manufactures and/or sells bicycles and bicycle accessories under the KTM brand. KTM AG and KTM Fahrrad GmbH are neither affiliated with each other under corporate law nor intertwined with each other in terms of capital or otherwise. Consequently, PIERER Mobility Group, does not produce or distribute bicycles and bicycle accessories under the KTM brand but under brands such as Husqvarna, GASGAS or FELT.
9 Interim consolidated management report for the first half of 2023 for PIERER Mobility AG, Wels Development of the PIERER Mobility Group Economic environment and market development Business development and analysis of earnings ratios Statement of financial position analysis Liquidity analysis Investments Employees Risk report Related party disclosures Events after the reporting date Outlook 10 13 15 17 18 18 19 19 20 20 20 3 2 0 2 1 H _ t r o p e r t n e m e g a n a m d e t a d i l o s n o C
Consolidated management report_H1 2023 D E VELOPMENT OF THE PIERER MOBILIT Y GROUP PIERER Mobility AG is the parent company for Europe's leading manufacturer of powered two-wheelers in the sport motorcycles and e-bikes segment. The motorcycles segment comprises the full range of premium products under the KTM, GASGAS and Husqvarna Motorcycles brands. The group’s innovative strength makes it a pioneering leader in technology for sustainable combustion concepts and electric mobility through its motorcycle brands. The Husqvarna E-Bicycles, GASGAS Bicycles, FELT Bicycles and R Raymon brands complement the two-wheeler range. The premium brand range also includes high-performance components from the WP brand and, in the four-wheel segment, the KTM X-BOW high-performance sports car. By engaging in strategic partnerships, the company has been able to diversify its production capacities in recent years and to increase its competitiveness in the global market. In this context, the very successful alliance with Bajaj in India, which has now been in place for 16 years, deserves special mention. In addition, the cooperation arrangements with CFMOTO in China and the joint venture with Maxcom in Bulgaria will boost both bicycle and motorcycle production over the long term. With its leading technology in the field of low-voltage electric mobility, PIERER Mobility aims to become the global market leader for electric two-wheelers in the power range from 250 W to 15 kW. DE VELOPMENT OF SALES AND RE VENUE IN THE FIRST HALF OF 2023 In the first half of 2023, the PIERER Mobility Group increased group revenue by 20.2 % to a new record figure of 1,387.6 million (previous year: € 1,154.1 million). With 190,293 motorcycles sold (previous year: 163,334), the Motorcycle Division increased its sales by 16.5 % in the first half of 2023. The Bicycle Division also grew its sales by around 39 %, selling 71,401 e-bicycles and bicycles (previous year: 51,417). The PIERER Mobility Group also managed to further increase its market shares with its KTM, Husqvarna and GASGAS motorcycle brands compared to the same period last year in the Group’s extremely important global motorcycle markets in Europe, North America, Australia and India. The increase in sales was very strong in both divisions, especially in Europe. In Europe, unit sales to dealers were 76,767 motorcycles (+25 %) and 59,212 bicycles (+40 %). Almost 60 % of the motorcycles were sold in the markets outside Europe – particularly in North America with 50,472 units (+13 %) and in India with 33,029 units – with a solid increase of 81 % compared to the previous year. The markets in Latin America, Asia and Africa recorded declining rates of growth. In the bicycle segment, the DACH region is still the biggest sales market, accounting for around 60 % of total sales. In addition to Europe, it was also particularly pleasing to see the level of growth in the bicycle segment in North America, where 9,184 units were sold in the first half of 2023, representing an increase of 33 % compared to the same period last year. STR ATEGIC PROJECT S The cooperation with CFMOTO was stepped up further in the first half of 2023. Firstly, February 2023 saw the start of activities in the subsidiary of the KTM Group, CFMOTO Motorcycles Distribution GmbH, Munderfing, Austria, which was established in the 2022 financial year. The company oversees the distribution of CFMOTO motorcycles in Europe, in particular in Germany, Austria, Switzerland, Spain and the UK. Secondly, the long-standing cooperation on indus- trialization projects in the established joint venture Zhejiang CFMOTO-KTMR2R Motorcycles Co., Ltd. in Zhejian, China was also stepped up a level with series production of the KTM 790 Duke and 790 Adventure models starting in China. The same applied to the CFMOTO 800NK and 800MT models, which are based on KTM platforms. These activities emphasize the fact that the strategic cooperation now also includes model planning and the joint development of engines and vehicles. KTM and CFMOTO have also decided to double the production capacity of their joint ventures from 50,000 to 100,000 vehicles. As a sign of increased cooperation, CFMOTO has also increased its stake in PIERER Mobility AG to 2.0 %. Furthermore, in September 2022 the KTM Group entered into a cooperation agreement with the established Italian manufacturer MV Agusta, based in Varese, Italy. In this context, the KTM Group established three more new companies, namely MV Agusta Motorcycles GmbH, Mattighofen, Austria, MV Agusta Motorcycles North America, Inc. in Murrieta, CA, USA, and MV Agusta Services S.r.l. in Meran, Italy. The KTM Group uses the first two companies to handle the sales, marketing and customer service for MV Agusta motorcycles on behalf of MV Agusta. The third company is responsible for MV Agusta procurement and thus supports the supply chain. All the MV Agusta companies in the KTM Group listed above started operating in the first half of 2023. PIERER New Mobility consistently pursues the strategic goal of playing a leading role in the area of electric mobility and sees itself as a driver of the sustainable transformation of mobility to create a model that is viable for the future. In the first half of 2023, as part of focusing its expansion efforts, PIERER New Mobility also took over the production and distribution of e-cargo New Mobility products in the Swedish design of the Johansson brand, which was acquired from PIERER 2 Radbeteiligungs GmbH, Wels in April 2023. ACTIVITIES AND SUCCESSES IN R ACING MOTORSPORT The MotoGP™ started the 2023 season with a new race format. In
11 addition to the regular Grand Prix race on the Sunday, a SPRINT race over a shorter distance is also staged on the Saturday for the MotoGP™ class. The Red Bull KTM Factory Racing team started the season with Brad Binder and Jack Miller. Following a number of victories and podium finishes, KTM was second in the MotoGP™ manufacturers’ standings (correct as of 07/2023). GASGAS Factory Racing Tech3 competed with Pol Espargaro and the reigning Moto2™ world champion Augusto Fernandez. In the Moto2™ world championship, Red Bull KTM Ajo rider Pedro Acosta ranked second overall. The Spaniard has been one of the best performers in his class for years and has already claimed six podium finishes, including four race victories, in the eight races of the season so far. For the GASGAS Aspar team, Jake Dixon topped the podium for the GASGAS brand in Moto2™. The 2023 season is also the first time Husqvarna Motorcycles has been represented in the Moto2™ class. Darryn Binder and Lukas Tulovic are riding for the LIQUI MOLY Husqvarna Intact GP team. The 2023 Moto3™ season started with a victory for Daniel Holgado (Red Bull KTM Tech3) in the opening race in Portugal. After two more wins in France and Italy, he now tops the Moto3™ world champi- onship. Ayumu Sasaki (LIQUI MOLY Husqvarna Intact GP) is in third place behind him in the overall standings. For GASGAS Aspar, David Alonso made it on to the podium in his rookie season, finishing second in Spain. In the world championship, 18 of the 28 Moto3™ riders currently rely on RC4 technology from the KTM, Husqvarna Motorcycles, GASGAS and CFMOTO brands. Just like in the last two years, Billy Bolt from Husqvarna Factory Racing performed sensationally over the season and won the title in the 2023 FIM SuperEnduro World Championship for the third time in a row. Six of the top ten places in the overall standings were dominated by KTM and GASGAS, with Taddy Blazusiak from GASGAS Factory Racing in third place. In addition, GASGAS won the FIM SuperEnduro manufacturers’ world championship title in 2023. In the 2023 FIM Hard Enduro World Championship, Manuel Letten- bichler of Red Bull KTM Factory Racing secured two victories, including winning the legendary Red Bull Erzbergrodeo in Styria. Jaime Busto has already had some success in TrialGP and is fighting to win the world championship title for GASGAS. KTM again claimed victory in the 45th Dakar Rally in 2023: Kevin Benavides won the rally – a rally very much steeped in tradition – ahead of his KTM team-mate Toby Price for the second time in his career. The KTM Group thus continued its winning streak with a total of 20 overall titles over 22 years. Skyler Howes (Husqvarna Factory Racing) finished third on the podium. Josep Garcia from Red Bull KTM Factory Racing is currently in fourth place in the 2023 FIM EnduroGP World Championship, while Andrea Verona from GASGAS Factory Racing is third in the EnduroGP overall standings. Jorge Prado from Red Bull GASGAS Factory Racing is currently in first place in the 2023 FIM MXGP. Jeffrey Herling of Red Bull KTM Factory Racing is placed seventh and has had to miss a few races due to injury. CYCLING In 2023, the GASGAS Bicycles brand entered the E-Enduro Pro World Cup of the UCI Mountain Bike World Series for the first time. Johannes Fischbach and Alex Marin competed for GASGAS SRAM Racing, and Simon Carlsson and Alexandre Fayolle competed for GASGAS MOTOREX Racing. Alex Marin achieved second place in the overall standings and secured his first podium finish in the World Cup for GASGAS SRAM Racing. He is ranked third in the current ranking. The FELT brand wants to build on winning the 2022 Women’s Ironman World Championship and achieve further racing successes, particularly in the triathlon discipline and especially in the Ironman World Championship in fall 2023. In June 2023, Daniela Ryf set a new world record over the women's Ironman distance (Challenge Roth in a record time of 8:08:21 hours). NE W MODELS Following its success in 2021, the KTM 1290 SUPER DUKE RR returned as a limited-edition special model in the first quarter of 2023. In 2022, the partnership between KTM and BRABUS was sealed with the presentation of the BRABUS 1300 R to enable BRABUS to compete in the world of motorcycle racing. This cooperation continued with the introduction of the BRABUS 1300 R Edition 2023. The KTM Enduro range for the 2024 model year bears testament to many years at the pinnacle of Enduro motorsport and is a dynamic blend of racing performance, ergonomics and the leading technology in the industry. The KTM Motorcross series for 2024 features a brand-new look for riders of all ages and skill levels, and also includes revised suspension settings for a better cornering experience and greater comfort. KTM celebrated the rebirth of an icon with the 890 SMT 2023. The
Tour stage victories and gold medals. In 2023, FELT will focus on its two core products, the Breed Carbon Gravel Race and the triath- lon-specific IA 2.0. In June 2023, PIERER New Mobility displayed more new models along with product developments in the bicycle and New Mobility segments at EUROBIKE in Frankfurt. Alongside a new model from the Grand City series for urban and all-road mobility from Husqvarna E-Bicycles, GASGAS Bicycles unveiled the MOTO Urban Cruiser, a beach cruiser designed with a Supermoto look. At the bicycle fair, FELT gave a taste of what to expect from the FR and VR road platforms, which will be equipped with light carbon and aluminum frames and are set to be launched on the market in 2024. IMPACT OF THE RUSSIAN-UKR AINIAN WAR The PIERER Mobility Group has not identified any significant reason to materially change its estimates and expectations as of June 30, 2023, on the basis of the war in Ukraine. The Group does not have any investments, other assets or other material business relationships in Ukraine, Russia or Belarus, nor does the Group have any material business relationships with suppliers or dealers in these countries. With this in mind, the Group does not expect any material impact on the expected future cash flows. Similarly, the Group has not suffered and does not expect any loss of control, joint control or the ability to exercise significant influence over a company as a result of the war or the sanctions imposed. In summary, as of June 30, 2023, there were no significant changes to the assessment of the impact of the Russian-Ukrainian war in comparison to the end of 2022. Consolidated management report_H1 2023 m o t o r c y c l e with the overhauled KTM 890 LC8c platform was developed to be the very best in the Supermoto Touring segment in terms of power, torque and weight. This model is positioned between the KTM ADVENTURE and KTM street product series. The KTM 450 SMR 2024 was also unveiled in the second quarter of 2023. The motorcycle boasts many technical highlights and sets the benchmark in the Supermoto competition sector. In March 2023, Husqvarna Motorcycles presented the NORDEN 901 Expedition, a powerful touring motorcycle equipped with an array of convenient functions, designed for use both on the road and off-road. With the Supermoto FS 450 2024 featuring a new design, Husqvarna Motorcycles continues to set the standards in the premium segment. In the Motocross series for model year 2024, Husqvarna Motorcycles presented five bikes that boast the latest technology and advanced electronics. A variety of technical accessories and apparel added the finishing touch to the market launch of the current 2- and 4-stroke Motocross series. The Enduro model range has also been completely redesigned and sets new standards in the off-road sector. The first half of 2023 also saw the release of a series of redesigned products and a number of technical innovations in the bicycle division. Husqvarna E-Bicycles focuses on innovative electric mobility solutions to tap into promising new markets worldwide. The Mountain Cross 6 (MC6), which was unveiled in 2022, is the template for future product innovations and strengthens the position that Husqvarna E-Bicycles occupies in the e-MTB sector. The new Light Cross 6 (LC6) expands the range of models in the off-road segment. Specific PG&A items and several new product lines complete the Urban Range and Allroad model segment. A digital market launch is planned for the new MY24 Husqvarna E-MTBs in October 2023. GASGAS E-Bicycles is building on the success of the GASGAS brand in the motorcycle segment. With its powerful E-MTBs for off-road routes, the brand was also able to expand its reach worldwide in the first quarter of 2023, following a successful financial year in 2022. The experience gained from off-road motorsport along with the knowledge of technologies and materials will play an even greater role in the development of new electrified New Mobility products. The new GASGAS ECC Race prototype was presented at the Sea Otter Festival in Monterey, California. It is an e-mountain bike that features lots of new specifications and components. FELT aims to develop the fastest products in its class, which is why it is focused on speed and competition. Over the course of its history, the brand has helped many athletes win world championships, Grand
13 ECONOMIC ENVIRONMENT AND MARKE T DE VELOPMENT In the last financial year 2022, the pace of growth in the global economy slowed down significantly as a result of the Russian- Ukrainian war, leading to a significant downturn in the economic outlook. In the first half of the 2023 financial year, the initially gloomy economic situation and the outlook improved somewhat. Economic and consumer sentiment is beginning to improve, commodity prices in general and for specific goods are falling, and in particular the full reopening of China following its zero-COVID-19 policy is leading to a strong economic recovery. At the same time, disruptions to supply chains seen over the last financial year are largely abating. While both overall inflation and core inflation, which excludes the volatile energy and food components, are declining, both are likely to remain high at least in the short and medium term, with core inflation likely to decline more gradually than overall inflation. Given that economic risks have generally become slightly more balanced but are still displaying a downward trend, the main concerns are the level of uncertainty, particularly regarding the course of the war in Ukraine, its wider consequences and the recent turbulence seen in the financial sector from March 2023 onwards, and this shows the vulnerability of the global economy. Against this background, the global economy remains in a precarious position due to the lingering effects of the overlapping negative shocks from the past and their consequences, as well as current political measures. Ultimately, the situation described above means that the forecasts of the leading organizations in this field, such as the International Monetary Fund (IMF), the Organisation for Economic Cooperation and Development (OECD) and the World Bank, for global growth are even more uncertain than usual and are constantly being updated. The IMF's latest estimates suggest that the projections of global economic growth, of 3.0 % in 2023 and 3.0 % in 2024, have been raised slightly compared to the previous estimates made in April 2023. On the one hand, this reflects the inherent dynamics and volatility of economic development; on the other hand, this slight increase in growth forecasts indicates a stabilization of global economic risks and inflation rates, a monetary and fiscal policy that is working, and confirms good economic prospects amid all the problems outlined above. The estimates published are based on numerous assumptions about a wide range of macroeconomic factors, in particular the trend in the prices of fossil fuels and other resources and the general level of interest rates. The IMF forecasts a global overall inflation rate of 6.8 % in 2023 and 5.2 % in 2024, which means that the IMF estimates of future inflation rates are about 0.9 percentage points above the recent expectations of the OECD and the World Bank. The IMF notes that the risks for the global economic outlook remain higher than usual, though these risks have declined since the last economic outlook in April 2023. The future development of the global economy will depend in particular on the successful calibration of monetary policy, taking into account the cumulative effects of previous interest rate hikes, which could otherwise have serious detrimental effects for the financial sector. Moreover, the course of the war in Ukraine and, not least, the economic recovery in and demand from China are key factors that will impact the future development of the global economy. This assessment is largely shared by the OECD and the World Bank. In summary, the projections of the major organizations suggest low to moderate global economic growth amid the challenges that were highlighted in the introduction. With the IMF’s projection for global growth being broadly unchanged, no major global economic downturn is expected, even though all projections for global economic development are still subject to significant uncertainty. The first half of 2023 indicates a very positive outlook for the global motorcycle market and business in 2023 as a whole. In Europe, the motorcycle market recorded a significant increase in volume of 11.1 % compared to the first half of 2022, reaching a volume of around 470,000 newly registered motorcycles. The markets of Germany (+15 %), Italy (+14 %), Spain (+15 %) and KTM's home country of Austria (+14 %) can be regarded as the main drivers of this trend. In addition, the PIERER Mobility Group, with its KTM, Husqvarna and GASGAS motorcycle brands, was able to exceed this trend with a 20 % increase in registrations and achieved a market share of 10.2 % (half-year 2022: 9.9 %). In North America, one of the most important sales markets for the PIERER Mobility Group, the overall high market volume from the first half of 2022 was maintained with around 290,000 newly registered motorcycles in the first half of 2023. At the same time, the KTM Group was able to expand its market position with a share of 12.3 % in the USA and 16.9 % in the Canadian market (both markets together: 12.9 %; half-year 2022 combined: 10.6 %). For the advanced economies, the IMF expects growth of 1.5 % in 2023 and 1.4 % in 2024. For the euro zone, growth of 0.9 % is forecast for 2023. For 2024, the IMF expects growth of 1.5 % for the euro zone, with negative and below-average growth of -0.3 % in 2023 and positive growth of 1.3 % in 2024, for Germany in particular. The Australian and New Zealand motorcycle markets recorded a slight decline in the overall market of 4 % for the first half of 2023 compared to the same period last year. Nevertheless, the market shares of the KTM, Husqvarna and GASGAS brands displayed a positive trend and are now at 19.7 % (half-year 2022: 19.0 %). The IMF forecasts economic growth of 4.0 % in 2023 and 4.1 % in 2024 for emerging and developing countries. China is forecast to grow by 5.2 % in 2023 and 4.5 % in 2024. India's economic output is forecast to increase by 6.6 % in 2023 and by 5.8 % in 2024. Both the overall market (+9 %) and the Indian motorcycle market which is relevant to KTM (S2/S3 segment, +32 %) are clearly on the rise compared to the first half of 2022. In the first half of 2023, the S2/S3 market accounted for almost 600,000 units. In this context,
Consolidated management report_H1 2023 the strategic partner Bajaj in India sold more than 32,000 KTM and Husqvarna motorcycles, representing a market share of 5.7 % (+1.6 percentage points compared to the first half of 2022). compared to the previous year. According to the ZIV, sales increased significantly from mid-May to June with the persistent change in the weather. The latest 2023 report from the Confederation of the European Bicycle Industry (CONEBI) shows a 2022 sales volume for Europe of around 20.2 million New Mobility products – EPACs in the CONEBI terminology, generating total revenue of EUR 21.2 billion. While total sales decreased by -9 %, revenue increased by +7.4 % compared to 2021, showing that sales of electrified products again outpaced the market as a whole, increasing by 8.6 % compared to 2021 to a total of 5.5 million electrified products sold. According to the report, the main countries for sales volume are still Germany (4.6 million units), France (2.6 million units) and the United Kingdom (2.0 million units). The market for “New Mobility” offers great potential for growth. It is anticipated that high-quality products will be produced to meet this demand. Increased awareness of quality and of environmental issues among consumers is leading directly to higher demand in the relevant market – this trend is particularly evident from the data for the German sales market which, according to the latest scientific findings, is heavily influenced by a changing population structure with a higher level of environmental awareness among people. At the same time, it should be noted that the current macroeconomic uncer- tainties that have been discussed as well as the effects on consumer prices, not least due to high rates of inflation, can have unpredictable effects on the level of demand. According to the German Two-Wheeler Industry Association (ZIV), around 4.6 million New Mobility products were sold in Germany in 2022, which is roughly the same number as in 2021 and represents a decline of around 5 % compared to the record-breaking year of 2020. This means that sales have stabilized at a significantly higher level compared to the period before the COVID-19 pandemic. While the sales figures for 2022 and 2021 are roughly the same, the trend of increased sales of electrified products, which was identified in the previous years, has continued, with sales of non-electrified two-wheelers also continuing to fall in 2022: 48 % of the products sold were electrified (previous year: 43 %). In its report for 2022 as a whole, the ZIV confirms the extremely positive forecasts that were made previously for the relevant market, with record revenue of EUR 7.36 billion (+12 % compared to the previous year) being achieved in 2022 from the sale of New Mobility products. In terms of their market share, 2023 would be the first year in which more electrified products than non-electrified ones are sold, increasing the expectations for total revenue. The ZIV has also confirmed that electric mobility products are one of the fastest-growing product segments because many people view the support provided by the motor as a reason for using these products. In addition, in relation to electrified New Mobility products, the ZIV views New Mobility trailers as a new product category offering great potential for growth, and this is evident from the fact that in 2022 the number of bicycle trailers sold actually exceeded e-cargo New Mobility products. In its latest indication for 2023, which relates to the first five months of the year, the ZIV states that the known economic circumstances, as have already been described, together with poor weather have led to significantly lower sales figures for the German market than in the same period last year. For the first five months of 2023, the ZIV forecasts sales of electrified New Mobility products of around 850,000 units, which equates to a drop of 12 % compared to the same period last year. And it forecasts sales of non-electrified New Mobility products of around 830,000 units, representing a drop of 20 %
15 BUSINESS DE VELOPMENT AND ANALYSIS OF E ARNINGS R ATIOS In the first half of 2023, the PIERER Mobility Group generated record revenue of € 1,387.6 million, up from € 1,154.1 million in the previous year, representing an increase in revenue of around 20.2 %. Approxi- mately 94 % of revenue was earned outside Austria. From a regional point of view, some 59 % of the revenue was attributable to Europe (+6 percentage points compared to the previous year), 28 % to North America including Mexico (-2 percentage points compared to the previous year) and 13 % to the rest of the world (-4 percentage points compared to the previous year). Despite ongoing challenges in the supply chains, the operating result (EBIT) for the first half of 2023 was € 96.9 million and this was higher than the previous year's figure of € 92.8 million. The earnings before interest, taxes, depreciation, and amortization (EBITDA) of € 178.9 million also exceeded the previous year's figure of € 162.3 million. The EBIT margin for the first half of 2023 was 7.0 %, and the EBITDA margin was 12.9 %. The net result after tax in the first half of the year was € 53.0 million (previous year: € 68.2 million). The overall sales figures of the PIERER Mobility Group as well as the sales of PTWs (motorcycles and e-bicycles) in the first half of the year are as follows: Unit sales total (Number of units) the first half of 2023, a total of 190,293 motorcycles (previous year: 163,334) were sold (taking into account the motorcycles sold in India and Indonesia by partner Bajaj). In spite of the macroeconomic climate, which presents challenges for the motorcycle market, the market development in the first half of 2023 provides hope that the rest of the 2023 financial year will be positive. The KTM Group was able to either maintain or expand its market shares in the global markets. Unit sales H1 2023 Motorcycles (Number of units)* 190,293 H1 2023 * includes 3,135 units electric balance bikes Unit sales H1 2022 Motorcycles (Number of units)* 163,334 146,526 32,540 9,594 1,099 534 114,159 34,737 14,438 H1 2023 H1 2022 230,694 261,694 198,163 214,751 H1 2022 PTWs Bicycles The two segments “Motorcycles” and “Bicycles” represent the main operating areas of the PIERER Mobility Group, the development of which is discussed below. * includes 8,112 units electric balance bikes KTM CFMOTO Husqvarna Mororcyles MV Agusta GASGAS Around 40 % of motorcycles were sold in Europe (+2 percentage points on the previous year), 27 % in North America including Mexico (the same as the previous year) and 17 % in India and Indonesia via partner Bajaj (+6 percentage points on the previous year). Another 16 % were sold in the rest of the world (-8 percentage points on the previous year). MOTORCYCLES In the first half of 2023, the Motorcycle Division achieved a revenue of € 1,276.8 million (previous year: € 1,072.8 million). Driven by the sustained high global demand for powered two-wheelers, an increase of 19.0 % was recorded compared to the same period last year. The EBITDA of € 196.2 million (previous year: € 167.1 million) and EBIT of € 117.3 million (previous year: € 100.6 million) were slightly above the previous year’s figures in the first half of the year. This equates to an EBITDA margin of 15.4 % (previous year: 15.6 %) and an EBIT margin of 9.2 % (previous year: 9.4 %). Despite ongoing challenges in the supply chain, unit sales generated from motorcycles in the first half of 2023 rose by +16.5 % compared to the same period last year. With 146,526 KTM motorcycles sold, 32,540 Husqvarna motorcycles, 9,594 GASGAS motorcycles sold, 1,099 CFMOTO motorcycles and 534 MV Agusta motorcycles sold in
Consolidated management report_H1 2023 Unit sales by region H1 2023 40.3% Europe 26.5% North America (incl. Meciko) 17.4% India / Indonesia (by Bajaj) 15.8% remaining global region Revenue by region H1 2023 56.8% Europe 28.9% North America (incl. Mexico) 14.3% remaining global region of +38.9 %, selling a total of 71,401 units (previous year: 51,417). Of the e-bicycles sold in the first half of 2023, 38.3 % were sold under the Husqvarna E-Bicycles brand, 49.4 % under the R Raymon brand, and 9.5 % under the GASGAS brand. The R Raymon brand accounted for 61.5 % of bicycle sales and the FELT brand 38.5 %. From a regional perspective, the DACH region continues to represent the largest sales market. Unit sales H1 2023 (E-)Bicycles (Number of units) 71,401 H1 2023 Unit sales H1 2022 (E-)Bicycles (Number of units) 51,417 H1 2022 (E-)Bicycles Bicycles 40,401 31,000 34,829 16,588 BICYCLES In the Bicycle Division, the establishment and expansion of all four “Husqvarna E-Bicycles”, “GASGAS Bicycles”, “FELT Bicycles” and “R Raymon” brands is well underway. The visibility of all brands is increasing strongly with launch events, trade shows and the new round of orders for the 2023 model year. PIERER New Mobility consistently pursues the strategic goal of playing a leading role in the area of electric mobility and sees itself as a driver of the sustainable transformation of mobility to create a model that is both viable and sustainable for the future. In the first half of 2023, as part of focusing its expansion efforts, the bicycle division also took over the production and distribution of e-cargo New Mobility products in the Swedish design of the Johansson brand, which was acquired by PIERER New Mobility GmbH from PIERER 2 Radbeteiligungs GmbH, Wels in April 2023. Revenue in the first half of 2023 was € 107.5 million, which was much higher than in the first half of 2022 (+37.1 %). The EBITDA in the first half of 2023 was € -14.2 million (previous year: € -1.5 million) and the EBIT was € -16.4 million (previous year: -3.7 million). The amount of storage space at the dealers is tight owing to the big changes and challenges being seen throughout the bicycle market and this is leading to more discounts. This is having an impact on the EBIT trend. With 40,401 e-bicycles (+16.0 %) and 31,000 bicycles (+86.9 %), the Bicycle Division recorded a significant total increase in sales Unit sales by region H1 2023 59.3% DACH region 23.6% remaining Europe 17.1% remaining global region Revenue by region H1 2023 66.0% DACH region 23.3% remaining Europe 10.7% remaining global region
17 STATEMENT OF FINANCIAL POSITION ANALYSIS The balance sheet structure of the PIERER Mobility Group is as follows: Non-current assets Current assets Assets Equity Non-current liabilities Current liabilities Equity and liabilities 12/31/2022 06/30/2023 EUR million in % EUR million in % 1,195.8 1,354.8 2,550.6 914.4 625.6 1,010.6 2,550.6 46.9% 53.1% 100.0% 35.8% 24.5% 39.6% 100.0% 1,266.0 1,409.4 2,675.5 889.9 803.8 981.7 47.3% 52.7% 100.0% 33.3% 30.0% 36.7% 2,675.5 100.0% value as of December 31, 2022 of 35.8 % due to the balance sheet increase described above. The statement of financial position total of the PIERER Mobility Group increased by 4.9 % from € 2,550.6 million to € 2,675.5 million compared to the consolidated financial statements as of December 31, 2022. Similar to previous years, the increase in non-current assets from € 1,195.8 million to € 1,266.0 million was in particular in the area of development projects, which was above the level of amortization and resulted in an increase in intangible assets in the first half of 2023. In addition, property, plant and equipment also increased, mainly as a result of investments in the PIERER MAXCOM Mobility OOD production site in Bulgaria. Within current assets, inventories in particular increased by € 112.2 million. The other changes involved firstly the reduction in trade receivables as well as cash totaling € 76.5 million and secondly the increase in other assets of € 19.0 million. Overall, this resulted in an increase in current assets of 4.0 % to € 1,409.4 million. Current liabilities fell slightly by 2.9 % to € 981.7 million. Non-current liabilities increased by € 178.2 million (+28.5 %) compared to December 31, 2022. The increase is largely attributable to the financial liabilities. Equity decreased by € 24.5 million from € 914.4 million to € 889.9 million in the first six months of the year. On the one hand, equity was boosted by a net result after tax of € 53.0 million. On the other hand, dividend payments of € 68.0 million led to a reduction in equity. The other effects of € -9.4 million essentially concern the recognition of foreign currency differences with no effect on profit or loss, the measurement of financial instruments and the revaluation of net debt from defined benefit plans. At 33.3 %, the equity ratio is below the
Consolidated management report_H1 2023 LIQUIDIT Y ANALYSIS Cash flow from operating activities was € 52.4 million in the first half of 2023 and was therefore significantly higher than the previous year's figure of € -24.2 million. This improvement was primarily due to the reduction in working capital. The cash outflow from investments was € -148.4 million and is higher than the previous year's figure of € -122.0 million. Free cash flow thus improved by around € 50 million or 34.3 % compared to the previous year’s figure and was € -96.0 million, following € -146.2 million in the same period last year. After taking the cash flow from financing activities of € 68.1 million into account, liquid funds decreased by € 33.4 million (including foreign currency effects of € -5.5 million) to € 245.3 million compared to December 31, 2022. Thanks to the strong equity base and long-term financing, sufficient liquidity reserves are available on a sustainable basis. INVESTMENTS In the first half of 2023, total investments of € 151.7 million were made in the PIERER Mobility Group (previous year: € 112.8 million) including IFRS 16 lease additions of € 18.6 million (previous year: € 10.2 million). The investments excluding leasing projects were divided between development projects (incl. tools), property, plant and equipment and intangible assets as follows: H1 2023 133.1 in EUR million H1 2022 102.5 in EUR million 14.8 intangible assets 25.8 property, plant and equipment 92.5 R&D (incl. tools) 9.2 intangible assets 16.0 property, plant and equipment 77.3 F&E (incl. tools) The investments in development projects (incl. tools) as a percentage of total investments were 69 %, which was under the previous year's level (previous year: 75 %). The consistently high investments in series product development represent one of the key success factors of the PIERER Mobility Group. At 19 %, investments in infrastructure (property, plant and equipment) were also above the previous year's level of 16 %. Another 11 % (previous year: 9 %) was attributable to intangible assets (IT and licenses). The investments made in recent years have safeguarded the production capacities required for the years ahead. The focus of the investments has been, and therefore still is, on other types of projects, in particular on the (further) development of existing and new models, electric mobility and high-tech modernization. These are currently and will continue to be the PIERER Mobility Group's top priority for investments. In line with strategic goals, expenditure on investments in research and development will remain at the already high level of the last few years. One of the most significant single investments in the 2022 financial year was the continued construction and completion of the new headquarters of KTM North America in Murrieta, California. The company site has been built over an area of approximately 14,000 m² and houses office and motorsport buildings as well as warehouse space. The opening ceremony took place in Murrieta on March 28, 2023. With a total level of investment of around USD 55 million, this represents one of the largest single investments that the PIERER Mobility Group has ever made. As in previous years, major investment projects in the first half of 2023 were primarily development projects and the purchase of tools and equipment. In the first half of 2023, further investments were made in the joint venture with MAXCOM Ltd. in Bulgaria. The new factory will handle the supply chain, warehousing and logistics activities and will start operating in the fourth quarter of 2023.
19 EMPLOYEES As of June 30, 2023, the PIERER Mobility Group employed 6,314 people, 5,146 of them in Austria (81.5 %). Around 1,400 of the Group’s employees work in research and development. Since the start of the year, the number of employees has increased by 226 and, compared to June 30, 2022, the PIERER Mobility Group has actually increased its headcount by 658 and continues to seek new employees in various areas, especially in metalworking professions. As part of an apprentice drive, around 80 more apprentices will begin their training this year. In total, the Group is currently training around 200 apprentices. RISK REPORT For information on the risk report, please refer to the consolidated financial statements as of December 31, 2022. The following statements update the risks that are already described therein and result in particular from the repercussions of supply chain bottlenecks and rising rates of inflation. PRO CUREMENT RISKS AND OTHER RISKS The current economic situation gives rise to an ongoing procurement risk and sales risk for the global economy, and this also affects the PIERER Mobility Group. The main issues are the rising costs of raw materials and supplies, which are being driven by the global shortage of goods and resources as a result of the COVID-19 pandemic, and the increased production overheads, in particular and in general when it comes to energy prices, transport and personnel costs. This is having a particular impact on companies that are engaged in the energy-intensive production of raw materials such as aluminum and steel. In many respects, the first half of the 2023 financial year saw an easing of the procurement situation that was still under great strain in the previous year. The Group's procurement risk has therefore reduced further alongside the measures that were taken in previous years, in particular because of the improvement in the overall availa- bility of required semiconductors and related components, as well as the prices of raw materials and energy starting to come down. This means that the Group’s level of exposure to price rises in procurement caused by energy prices is more predictable. The measures that were taken in previous years are now having an impact because regular and index-based price adjustments that reflect the price reductions in the procurement market were agreed. Looking at the Group, the company's own production and assembly processes are not very energy-intensive, which means the Group is able to absorb even rising energy costs. The situation described above for the 2023 financial year was in line with the basic forecasts made at the end of 2022. This was anticipated because prices and product availability have eased as expected. The situation is expected to continue to improve in the second half of 2023. The area of "New Mobility" is also expected to see a marked and sustained recovery in delivery times, which have been sluggish on occasions, in the second half of the 2023 financial year. For example, the current delivery times are expected to come down from almost 24 months at present to a normal level of around 8-12 months. However, the significant backlog in processing orders for certain components from third parties, such as frames and brake systems, will also lead to procurement delays in the second half of the 2023 financial year. The PIERER Mobility Group has largely stabilized and made allowance for the supply chain bottlenecks in the case of the afore- mentioned electronic components and other specific components – which previously resulted in delays in procurement – by regularly coordinating with the suppliers and approving all procurement and production measures at an early stage. This will allow the Group to cover the demand for resources at the individual production sites over the longer term. The strong cooperation that has been established is stabilizing the Group's supply chain and also providing additional opportunities. The Group's procurement strategy is regularly updated and adapted to reflect the current challenges it faces. The crises of the last few years in particular have shown that, in addition to the effective measures that have already been taken, such as cost engineering and the market intelligence system implemented for electronic components, developing different sources of supply (multiple sourcing) can also offer significant business opportunities. Focusing on those procurement markets that have proven to be the most reliable really helps to reduce the procurement risks. Ultimately, the defined procurement strategy also reflects the Group's aspiration to adapt its logistical procurement structure in order to shorten transport routes and minimize the associated costs. Just like the economy as a whole, the PIERER Mobility Group is also affected by the impact of the current trend in interest rates. The interest rate risk in the Group is regularly assessed by calculating interest rate sensitivities and interest rate scenarios based on the current interest rate forecasts. The Group maintains close contact
Consolidated management report_H1 2023 w i th its main banks to stay abreast of current developments and to continuously review the accuracy of risk assessments in relation to interest rates. In addition, measures have been taken to manage the interest rate risk, for example by utilizing interest rate swaps and regularly calculating the interest rate risk (net interest rate position). Although the effects of the current interest rate trend are clearly evident in the financial result, the Group expects that interest rates will drop from their currently high level in the medium term. REL ATED PART Y DISCLOSURES Please refer to the notes to the interim financial statements for information. E VENTS AF TER THE REPORTING DATE Please refer to the notes to the interim financial statements for information. OUTLOOK In the second half of 2023, the PIERER Mobility Group will continue to focus on growth in its core areas, both motorcycles and (e-)bicycles. Despite the challenges that are still having an impact in the bicycle market in particular, the Executive Board confirms the outlook for the 2023 financial year and still expects to record sales growth of between 6 and 10 % with an EBIT margin of 8 to 10 %. half of 2023. In addition, the PIERER Mobility Group expects the motorcycle market to grow in the medium to long term. The growth in motorcycle sales is being driven primarily by continued high demand in North America and Australia. In terms of sales figures, the Group expects the motorcycle market to display a positive trend overall for the high-quality premium products that it sells. The challenges that arose in the 2022 financial year in the PIERER Mobility Group's international supply chains eased considerably in the first half of 2023 and are not expected to cause any major disruption for the PIERER Mobility Group in the 2023 financial year. The measures that the PIERER Mobility Group has put in place are thus having an effect as the consequences of last year's situation have been largely mitigated with the supplier risk assessment. In addition to other measures and the reasons identified for problems in the supply chain in the past, the procurement strategy has been adapted and the procurement risk has been reduced, particularly by having direct access to the Asian market and continuing to focus on the European market. Following the trend from 2022, the KTM, Husqvarna Motorcycles and GASGAS motorcycle brands were also largely able to expand or maintain their market shares in the relevant sales markets in the first The cooperation arrangements with CFMOTO and MV Agusta will expand the range of motorcycles that the PIERER Mobility Group offers by integrating CFMOTO and MV Agusta products into the distribution network in the 2023 financial year. Sales of both CFMOTO and MV Agusta products started in the first half of 2023. While sales of CFMOTO products will focus on specific countries in Europe, the intention is to sell MV Agusta motorcycles worldwide through newly established companies. The MV Agusta motorcycles will be integrated into the distribution network gradually and this process will probably be completed in the second half of 2023. In the area of New Mobility, the market for electric mobility generally offers great potential for growth in the medium and long term. New mobility concepts form part of this market and represent a healthy, sustainable and individual form of transport. With a wide range of innovative products from the Husqvarna E-Bicycles, GASGAS and
21 FELT brands, PIERER New Mobility is confident and very keen to expand its market share even more. The goal of the brand strategy being followed and the focus on new product developments is to further boost revenue. Similar to the situation with motorcycles, the Group expects the market to grow in the medium to long term, but here too demand is expected to become weaker in the short term as a result of current developments. The bicycle market is experiencing great changes and challenges. The consolidation that has already begun will have a profound impact on the whole of the bicycle industry. As part of this trend, the Executive Board expects revenue in the New Mobility segment to increase to around EUR 500 million in the 2027 financial year. Australian and South African markets in the second half of 2023. Independent and differentiated sales channels are the mainstays of the Group's successful New Mobility strategy. The cooperation with MAXCOM Ltd. was stepped up further in the 2023 financial year with PIERER New Mobility Bulgaria OOD taking over the supply chain, warehousing and logistics tasks from the second half of 2023. The current liquidity reserves combined with a balanced mix of different financial instruments will enable the Group to continue to operate flexibly and decisively in a volatile market environment throughout the rest of 2023. In this regard, the available liquidity reserves were increased significantly for the short and long term. The PIERER New Mobility product range has been further expanded and improved by integrating Johansson e-cargo New Mobility products. By making this expansion to its product range, PIERER New Mobility is continuing to pursue its philosophy of offering sustainable mobility solutions for the future. The next steps in the international expansion of PIERER New Mobility GmbH are to get into the The PIERER Mobility Group is also affected by the consequences of the current trend in interest rates. The interest rate risk is evaluated regularly, and close contact is maintained with our core banks. Measures were also taken to manage the interest rate risk. The Group expects to see interest rates fall from their currently high level in the medium term. Wels, August 29, 2023 The Executive Board of PIERER Mobility AG Stefan Pierer (CEO) Viktor Sigl, MBA (CFO) Florian Burguet Florian Kecht Alex Pierer Hubert Trunkenpolz Rudolf Wiesbeck
Consolidated management report_H1 2023 G ASGAS Bicycles MY22,23
23 Interim consolidated financial statements Consolidated statement of financial position Consolidated income statement Consolidated statement of comprehensive income Consolidated statement of cash flows Consolidated statement of changes in equity 24 26 27 28 30 Consolidated financial statement Download 3 2 0 2 1 H _ s t n e m e t a t s l a i c n a n fi d e t a d i l o s n o C
Consolidated financial statements_H1 2023 C O N SOLIDATED STATEMENT OF FINANCIAL POSITION as at June 30, 2023 EURk Assets: Non-current assets: Goodwill Intangible assets Property, plant, and equipment Investments accounted for using the equity method Deferred tax assets Other non-current assets Current assets: Inventories Trade receivables Receivables and other assets Tax refund claims Cash and cash equivalents 06/30/2023 12/31/2022 130,065 616,973 464,647 35,826 12,925 5,603 130,655 570,356 443,712 33,341 13,782 3,999 1,266,039 1,195,845 766,081 227,326 149,941 20,754 245,343 1,409,445 2,675,485 653,928 270,422 137,616 14,087 278,738 1,354,790 2,550,635
EURk Equity and liabilities: Equity: Share capital Capital reserves Other reserves including retained earnings Equity of the owners of the parent company Non-controlling interests Non-current liabilities: Financial liabilities Liabilities for employee benefits Deferred tax liabilities Other non-current liabilities Current liabilities: Financial liabilities Trade payables Provisions Tax liabilities Other current liabilities 25 06/30/2023 12/31/2022 33,797 9,949 839,454 883,200 6,746 889,946 625,555 27,325 133,126 17,813 803,819 62,647 730,769 34,062 9,151 145,090 981,720 2,675,485 33,797 9,949 863,989 907,735 6,661 914,396 458,620 26,154 124,428 16,407 625,609 76,635 737,602 44,037 5,203 147,152 1,010,630 2,550,635
Consolidated financial statements_H1 2023 CONSOLIDATED INCOME STATEMENT for the half financial year from 1/1/2023 through 06/30/2023 EURk Revenue Production costs of the services provided to generate the revenue Gross profit from sales Selling and racing expenses Research and development expenses Administration expenses Other operating expenses and income Earnings from at-equity holdings Result from operating activities Interest income Interest expenses Other financial and investment income (expenses) Result before taxes Income taxes Profit or loss for the period thereof owners of the parent company thereof non-controlling shareholders H1 2023 H1 2022 1,387,598 -1,026,105 361,493 -144,833 -30,615 -92,471 -520 3,801 96,855 4,869 -29,417 -5,290 67,017 -13,979 53,038 55,010 -1,972 1,154,053 -841,731 312,322 -124,361 -22,319 -73,809 22 969 92,824 1,238 -7,132 2,657 89,587 -21,404 68,183 67,576 607 Undiluted (=diluted) earnings per share (EUR) 1.63 2.00
27 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME for the half financial year from 1/1/2023 through 06/30/2023 EURk H1 2023 H1 2022 Profit or loss for the period 53,038 68,183 Items reclassified to profit or loss or which can be subsequently reclassified Foreign currency translation Valuation of cash flow hedges Deferred tax on valuation of cash flow hedges Items not reclassified to profit or loss Revaluation of net debt from defined benefit plans Tax effect Other net result after tax Total comprehensive income thereof owners of the parent company thereof non-controlling shareholders -4,220 -6,080 1,459 -8,841 -476 114 -362 -9,203 43,835 45,807 -1,972 6,370 9,203 -2,301 13,272 2,915 -729 2,186 15,458 83,641 83,034 607
Consolidated financial statements_H1 2023 CONSOLIDATED STATEMENT OF CASH FLOWS for the half financial year 1/1/2023 through 06/30/2023 EURk Operations Profit or loss for the period + (-) Interest expenses / interest income + Tax expenses + Depreciation/amortization of property, plant and equipment and intangible assets + (-) Other non-cash expenses (income) + Interest received - - Interest payments Tax payments Gross cash flow - (+) Increase (decrease) in the net current assets Cash flow from operations H1 2023 H1 2022 53,038 24,548 13,979 82,048 -5,343 4,846 -28,234 -3,068 141,814 -89,416 52,398 68,183 5,894 21,404 69,438 -3,569 1,219 -7,955 -20,915 133,699 -157,937 -24,238
29 EURk Investing activity H1 2023 H1 2022 Payments for the acquisition of intangible assets and property, plant and equipment -151,090 -108,686 46 932 1,712 -148,400 85 0 -13,350 -121,951 - + + Receipts from the sale of intangible assets and property, plant and equipment Receipts from the disposal of investments accounted for using the equity method and other financial assets + (-) Payments from other assets Cash flow from investing activity Free cash flow -96,002 -146,189 Financing activity - Dividend payments to third parties + (-) Disposal/acquisition of non-controlling interests + Taking out non-current interest-bearing liabilities - - Repayment of lease liability Repayment of non-current interest-bearing liabilities + (-) Change in other current financial liabilities + (-) Change from other financing activities Cash flow from financing activity Total cash flow + Opening balance of liquid funds within the Group + Effect of foreign currency fluctuations Closing balance of liquid funds within the Group -67,843 -206 162,457 -12,784 -25,210 9,134 2,556 68,104 -27,898 278,738 -5,497 245,343 -34,297 -5,055 0 -11,185 -9,970 22,015 0 -38,492 -184,681 373,509 2,521 191,350
Consolidated financial statements_H1 2023 CONSOLIDATED STATEMENT OF CHANGES IN EQUIT Y for the half financial year 1/1/2023 through 06/30/2023 EURk Balance as of January 1, 2023 Profit or loss for the period Other comprehensive income Total comprehensive income Transactions with shareholders Dividends to third parties Acquisition/disposal of shares to subsidiaries Capital measures Miscellaneous Balance as of June 30, 2023 EURk Balance as of January 1, 2022 Profit or loss for the period Other comprehensive income Total comprehensive income Transactions with shareholders Dividends to third parties Acquisition/disposal of shares to subsidiaries Miscellaneous Balance as of June 30, 2022
Equity of the owners of the parent company Share capital Capital reserves Reserves including total earnings Reserve in accordance with IFRS 9 Adjustment items currency translation Reserves for own shares Total Shares of non- controlling shareholders 33,797 9,949 845,432 16,255 0 0 0 0 0 0 0 0 0 0 0 0 0 0 55,010 -362 54,648 -67,593 -206 -2,185 -49 33,797 9,949 830,047 0 -4,621 -4,621 0 0 0 -309 11,325 2,302 0 -4,220 -4,220 0 0 0 0 -1,918 0 0 0 0 0 0 0 0 0 907,735 55,010 -9,203 45,807 -67,593 -206 -2,185 -358 6,661 -1,972 0 -1,972 -500 0 2,556 1 31 Total consoli- dated equity 914,396 53,038 -9,203 43,835 -68,093 -206 371 -357 883,200 6,746 889,946 Equity of the owners of the parent company Share capital Capital reserves Reserves including total earnings Reserve in accordance with IFRS 9 Adjustment items currency translation Reserves for own shares Total Shares of non- controlling shareholders Total consoli- dated equity 33,797 9,949 714,154 0 0 0 0 0 0 0 0 0 0 0 0 67,576 2,186 69,762 -33,797 -3,298 -164 1,369 0 6,902 6,902 0 0 0 873 0 6,370 6,370 0 0 0 33,797 9,949 746,657 8,271 7,243 0 0 0 0 0 0 0 0 760,142 67,576 15,458 83,034 -33,797 -3,298 -164 5,409 765,551 607 0 607 -500 -1,757 0 68,183 15,458 83,641 -34,297 -5,055 -164 805,917 3,759 809,676
33 Condensed notes to the consolidated financial statements FOR THE FIRST HALF OF 2023 34 34 35 35 36 36 36 37 38 Company information Principles of financial reporting Newly applied standards and interpretations Estimate uncertainties and judgments Impact of the Russian-Ukrainian war Seasonality Scope of consolidation Segment reporting Notes to the consolidated income statement Notes to the consolidated statement of comprehensive income Notes to the consolidated statement of financial position and consolidated statement of changes in equity 39 40 Notes to the statement of cash flows Disclosures relating to financial instruments 40 Explanations regarding related companies and individuals Events after the reporting date June 30, 2023 Declaration of the Executive Board pursuant to section 87 para. 1 no. 3 of the Austrian Stock Exchange Act (§ 87 ABS 1 z 3 Börsegesetz) 39 46 46 46 3 2 0 2 1 H _ s t n e m e t a t s l a i c n a n fi d e t a d i l o s n o c e h t o t s e t o N
Notes to the consolidated financial statements_H1 2023 COMPANY INFORMATION PIERER Mobility AG is the umbrella company for Europe's leading manufacturer of powered two-wheelers, and manufactures a full range of premium products under the KTM, GASGAS and Husqvarna Motorcycles brands. The group’s innovative strength makes it a pioneering leader in technology for two-wheeled electric mobility through its motorcycle brands. Husqvarna E-Bicycles, GASGAS Bicycles, FELT Bicycles and R Raymon complement the two-wheeler range. The brand range also includes premium components from the WP brand and special KTM X-BOW high-performance sports cars. Following the strategic partnership with Bajaj in India, the company has been able to diversify its production capacities in recent years and increase its competitiveness in the global market. The cooperation with CFMOTO in China and the joint venture with Maxcom in Bulgaria will boost both bicycle and motorcycle production over the long term. With its leading technology in the field of low-voltage electric mobility, PIERER Mobility aims to become the global market leader for electric two-wheelers in the power range from 250 W to 15 kW. PIERER Mobility AG has its registered office at Edisonstraße 1, 4600 Wels, and is registered in the commercial register at the Provincial Court of Wels in its capacity as Commercial Court under the regis- tration number FN 78112 x. The shares of PIERER Mobility AG have a primary listing in the “Swiss Performance Index (SPI)” of the SIX Swiss Exchange in Zurich and, as of March 1, 2022, trading was additionally admitted to the Prime Market of the Vienna Stock Exchange, which means that the shares of PIERER Mobility AG are listed in the top segment of the Vienna Stock Exchange. PRINCIPLES OF FINANCIAL REPORTING The condensed interim consolidated financial statements for the reporting period from January 1 to June 30, 2023, of PIERER Mobility AG were prepared in accordance with the International Financial Reporting Standards (IFRS), as applied in the EU, applying IAS 34 (Interim Financial Reporting). These condensed interim consolidated financial statements for the first half of 2023 have not been audited or reviewed by an auditor. mandatory from January 1, 2023. The financial reporting of the companies included in the condensed interim consolidated financial statements is subject to uniform accounting principles. These provisions were applied by all consolidated entities. Pursuant to IAS 34, income tax expenses for the interim consolidated financial statements have been calculated using the average annual tax rate expected for the financial year as a whole. The condensed interim consolidated financial statements do not include all of the notes and disclosures required for year-end consoli- dated financial statements and should therefore be read in conjunction with the consolidated financial statements as of December 31, 2022. The interim consolidated financial statements are prepared in euros, which is the functional currency of the parent company. Unless otherwise specifically indicated, all amounts are rounded to the nearest 1,000 euros (EURk), which may give rise to rounding differences. The use of automated calculating tools may result in rounding differences with accumulation of rounded figures and with percentages. The accounting policies applied as at December 31, 2022 were unchanged, with the exception of the IFRS, the use of which is The transfer price concept is reviewed on an ongoing basis, with appropriate adjustments being made in accordance with OECD principles and the functions and risks within the group. The provisions for obligations for severance pay and anniversary bonuses were measured according to the years of service method (projected unit credit method). Actuarial reports for the measurement are generated as of the end of the reporting period. These values are adjusted for the interim consolidated financial statements. If significant changes to the parameters occur during the year, a revaluation of the net debt is carried out. As of June 30, 2023, the interest rate was reduced from 4.17 % to 4.02 %. There were no significant changes to the consolidated interim financial information presented for the first half of 2023.
35 NE WLY APPLIED STANDARDS AND INTERPRE TATIONS The table below shows the standards and interpretations mandatorily applied for the first time that had also already been endorsed by the European Commission: First-time application January 1, 2023 January 1, 2024 New or amended standards and interpretations Published by the IASB Amendments to IAS 1 and IFRS Practice Statement 2 – Disclosure of Accounting Policies Amendments to IAS 8 Accounting Policies, Changes in Estimates and Errors – Definition of Accounting Estimates Amendments to IAS 12 Income Taxes – Deferred Taxes related to Assets and Liabilities arising from a Single Transaction IFRS 17 Insurance Contracts Amendments to IFRS 17 – Initial Application of IFRS 17 and IFRS 9 – Comparative Information Amendments to IAS 12 Income Taxes: International Tax Reform – Pillar Two Model Rules Amendments to IFRS 16 Leases – Lease Liability in a Sale and Leaseback Transaction Amendments to IAS 1 Presentation of Financial Statements – Classification of Liabilities as Current or Non-current (Including Deferral of the Effective Date and Non-current Liabilities with Covenants) February 12, 2021 February 12, 2021 May 7, 2021 May 18, 2017 December 9, 2021 May 23, 2023 September 22, 2022 October 31, 2022 Amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instru- ments: Disclosures: Finance Arrangements with Suppliers May 25, 2023 The PIERER Mobility Group assumes that there will be no material effects on the consolidated financial statements due to the standards to be newly applied in the future. ESTIMATE UNCERTAINTIES AND JUDGMENTS To a certain extent, estimates and judgments must be made in the consolidated financial statements. These influence the recognized assets and liabilities, the disclosure of contingent liabilities as at the reporting date and the presentation of income and expenses for the respective financial year. Estimates are generally based on the experience of the Executive Board and are based on the circum- stances at the reporting date. The amounts actually arising may differ from the estimates if assumed parameters develop contrary to expec- tations. If new conditions become known, they are duly taken into account and previous assumptions are revised. Estimates and judgments are explained in the consolidated financial statements of PIERER Mobility AG as of December 31, 2022 under Note 5. “Estimates and judgments”.
Notes to the consolidated financial statements_H1 2023 IMPACT OF THE RUSSIAN-UKR AINIAN WAR Analogous to the statements made on December 31, 2022, the Group does not have any investments, other assets or other material business relationships in Ukraine, Russia or Belarus, nor does the Group have any material business relationships with suppliers or dealers in these countries. With this in mind, the Group does not expect any material impact on the expected future cash flows. Similarly, the Group has not suffered and does not expect any loss of control, joint control or the ability to exercise significant influence over a company as a result of the war or the sanctions imposed. In summary, as of June 30, 2023, there were no significant changes to the assessment of the impact of the Russian-Ukrainian war in comparison to the end of 2022. SE ASONALIT Y Seasonal effects occur due to the different seasonality of offroad and street motorcycles. In the street segment, there are higher revenues in the first half of the year, whereas in the offroad segment, the main focus is on the second half of the year. Due to the increasing importance of the street segment in total revenues, seasonal effects are to a large extent smoothed out over the year. The management therefore does not expect a high degree of seasonal dependency. SCOPE OF CONSOLIDATION All subsidiaries that are either legally or de facto under the control of PIERER Mobility AG are included in the present interim consolidated financial statements as of June 30, 2023. The number of companies included in the scope of consolidation changed in the first half of 2023 as shown below: Balance as at December 31, 2022 Additions to the scope of consolidation Eliminations from the scope of consolidation Balance as at June 30, 2023 thereof foreign companies Fully consolidated companies At-equity companies 76 2 0 78 55 5 0 -1 4 3 PIERER Mobility AG, as the parent company of the PIERER Mobility Group, has not been included in this list. CHANGES IN THE SCOPE OF CONSOLIDATION shares in Vöcklabrucker Metallgieserei Dambauer GmbH through KTM AG, which was included in the consolidated financial statements using the equity method. On March 31, 2023, KTM AG sold these shares to PB Invest GmbH, Wels, a subsidiary of PIERER Industrie AG, Wels. On March 30, 2023, PIERER New Mobility Bulgaria OOD, Plovdiv, Bulgaria was newly founded and fully consolidated. On June 16, 2023, KTM Racing North America Inc. with its registered office in Murrieta, CA, USA, was newly founded and fully consolidated. In the past year, the PIERER Mobility Group acquired 23 % of the
37 SEGMENT REPORTING The business activities of PIERER Mobility AG are managed on the basis of the two “Motorcycles” and “Bicycles” divisions. The individual company divisions are managed separately and report to the Executive Board of PIERER Mobility AG in accordance with IFRS accounting regulations. The main decision-maker for the segment report is the overall Executive Board of PIERER Mobility AG. The segment reporting is done in line with the internal reports with the Motorcycles, Bicycles and Others segments. MOTORCYCLES: The “Motorcycles” segment comprises the development, production and distribution of motorcycles under the KTM, Husqvarna Motorcycles and GASGAS brands as well as components of the WP brand. As of June 30, 2023, the Motorcycles segment included 58 subsidiaries, located in Austria, the United States, Japan, South Africa, Mexico, India, Australia and New Zealand and in various other European and Asian countries, which are included within the consoli- dated financial statements. In addition, the”Motorcycles” segment holds interests in assembly companies in the Philippines and China and, since the 2022 financial year, in MV Agusta Motor S.p.A in Italy. BICYCLES: PIERER New Mobility GmbH together with its subsidiaries forms the “Bicycles” segment of the PIERER Mobility Group. With the Husqvarna E-Bicycles, GASGAS Bicycles, FELT Bicycles and R Raymon brands, the focus is on developing, manufacturing and trading e-bicycles and bicycles. In total, the segment comprises 14 fully consolidated companies. OTHERS: The “Others” segment encompasses PIERER Mobility AG, PIERER E-Commerce GmbH, PIERER E-Commerce North America Inc., PIERER Innovation GmbH, Avocodo GmbH, DealerCenter Digital GmbH and Platin 1483. GmbH. Segment information for the first half of 2023 and 2022 is as follows: H1 2023 EUR million Motorcycles Bicycles Others Consolida- tion Total Revenues (including revenues within the segments) External revenues Result from operating activities Investments 1) Depreciation and amortization 1,276.8 1,276.8 117.3 119.1 78.9 107.5 107.5 -16.4 13.8 2.2 Share in the result of companies accounted for using the equity method 3.6 0.0 31.3 3.4 -4.3 0.3 1.7 0.0 -27.9 0.0 0.2 0.0 -0.8 0.2 1,387.6 1,387.6 96.9 133.1 82.0 3.8 Balance sheet total Equity 2,487.8 878.3 249.9 26.0 210.1 246.9 -272.3 -261.2 2,675.5 889.9
Notes to the consolidated financial statements_H1 2023 H1 2022 EUR million Motorcycles Bicycles Others Consolida- tion Revenues (including revenues within the segments) External revenues Result from operating activities Investments 1) Depreciation and amortization Share in the result of companies accounted for using the equity method 1,072.8 1,072.8 100.6 100.9 66.5 1.1 78.4 78.4 -3.7 1.1 2.2 0.0 25.0 2.9 -3.9 0.5 1.5 0.0 -22.1 0.0 -0.2 0.0 -0.7 -0.2 Total 1,154.1 1,154.1 92.8 102.5 69.4 1.0 Balance sheet total Equity 2,012.8 769.4 210.4 37.2 311.9 264.1 -278.3 -261.0 2,256.8 809.7 1) Excluding lease additions according to IFRS 16 of € 18.6 million (previous year: € 10.2 million). NOTES TO THE CONSOLIDATED INCOME STATEMENT In the first half of 2023, the PIERER Mobility Group generated revenues of € 1,387.6 million and, thanks to the continued high demand for PTWs, this was 20.2 % higher than the previous year's figure of € 1,154.1 million. Around 94 % of revenues were generated outside Austria. The breakdown by geographical area of external revenues is based on the location of the customers. Revenue by geographical region is made up as follows: EUR million Europe North America (incl. Mexico) Other The EBIT of € 96.9 million in the first half of 2023 was above the previous year's figure of € 92.8 million, resulting in an EBIT margin of 7.0 % (previous year: 8.0 %). At € 178.9 million, the EBITDA is 10.3 % above the previous year’s level. The result for the period was € 53.0 million (previous year: € 68.2 million). The earnings per share were € 1.63 in the first half of 2023 (previous year: € 2.00). H1 2023 H1 2022 824.6 379.7 183.3 613.6 342.6 197.8 1,387.6 1,154.1
39 NOTES TO THE CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME In the reporting period, the cash flow hedge reserve reduced the equity by € 4.6 million (previous year: increased by € 6.9 million). Furthermore, changes to the foreign currency translation reserve resulting from currency translation of € -4.2 million (previous year: € 6.4 million) were also recorded. Actuarial losses of € -0.4 million were recognized as a result of the reduction in the interest rate applicable for the measurement of the obligations for employee benefits (previous year: gains of € 2.2 million). All values are inclusive of non-controlling interests. NOTES TO THE CONSOLIDATED STATEMENT OF FINANCIAL POSITION AND CONSOLIDATED STATEMENT OF CHANGES IN EQUIT Y Non-current assets increased in the first half of the year by 5.9 %. The increase is mainly due to the intangible assets where, especially in the area of development projects, the level of investment is higher than the level of amortization. In addition, property, plant and equipment also increased, mainly as a result of investments in the PIERER MAXCOM Mobility OOD production site in Bulgaria as well as ongoing investments in tools. Overall, current assets were 4.0 % higher than on December 31, 2022. On the one hand inventories rose by 17.2 %, and on the other trade receivables decreased by 15.9 %. On the liabilities side, current liabilities decreased by 2.9 % in the first half of the year, mainly due to the repayment of bank liabilities and the decrease in provisions. The 28.5 % increase in non-current liabilities was specifically due to taking out non-current financial liabilities. This mainly involved taking out investment loans of € +68.8 million. In addition, the research loans increased by € +92.9 million, mainly as a result of a loan that was taken out with the European Investment Bank. In the first six months of the year, consolidated equity decreased by € 24.5 million to € 889.9 million. On the one hand, equity was strengthened by net income for the period of € 53.0 million, and on the other hand dividend payments of € 68.1 million led to a reduction in equity. The other effects essentially concern the recognition of foreign currency differences with no effect on profit or loss, the measurement of financial instruments and the revaluation of net debt from defined benefit plans. As of the reporting date, the equity ratio was 33.3 % (December 31, 2022: 35.8 %). For the “PIERER New Mobility” cash-generating unit (CGU), an indication of an impairment loss was identified due to deviations from the planned budget in the first half of 2023. The recoverable amount was determined on the basis of the value in use. The methodology is the same as that used on December 31, 2022. The forecast for cash flows is based on the forecasts most recently approved by management, taking account of the medium-term strategy objectives. The discount rate used was a weighted average cost of capital (WACC) before taxes of 10.9 % (December 31, 2022: 11.3 %). All other conditions being equal, for the “PIERER New Mobility” cash-generating unit any increase in input tax for WACC to 20.8 % (December 31, 2022: 34.3 %) or decline in budgeted future EBITs by 57.2 % (December 31, 2022: 68.4 %) would result in the carrying amount of the CGU corresponding to the recoverable amount. On the reporting date of June 30, 2023, property, plant and equipment amounting to € 103.5 million (December 31, 2022: € 42.0 million) was secured by registered and deposited pledge agreements, primarily for liabilities owed to credit institutions.
Notes to the consolidated financial statements_H1 2023 NOTES TO THE STATEMENT OF CASH FLOWS In the first half of 2023, the liquid funds of the Group decreased by € 33.4 million to € 245.3 million. The change consists of the cash flow from operating activities of € 52.4 million, the cash flow from investing activities of € -148.4 million and the cash flow from financing activities of € 68.1 million. Foreign exchange effects of € -5.5 million also resulted. Free cash flow improved by around € 50 million or 34.3 % compared to the previous year, in particular due to the reduction in net working capital, and amounted to € -96.0 million in the first half of 2023 (H1 2022: € -146.2 million). The cash flow from financing activities of € 68.1 million mainly includes long-term loans of € 162.5 million and dividend payments of € -67.8 million, which mainly involve dividends paid by PIERER Mobility AG to its shareholders. DISCLOSURES REL ATING TO FINANCIAL INSTRUMENTS The measurement categories of IFRS 9 were used to classify and measure the assets side. The fair value of a financial instrument is determined by means of quoted market prices for identical instruments in active markets (Level 1). If no quoted market prices in active markets are available for the instrument, the fair value is determined by means of valuation techniques for which the material inputs are based exclusively on observable market data (Level 2). In all other cases, the fair value is determined on the basis of measurement techniques for which at least one input is not based on observable market data (Level 3).
Notes to the consolidated financial statements_H1 2023 The table below shows the carrying amounts and fair values of financial assets (financial instruments shown on the assets side), broken down by class and IFRS 9 measurement category. However, it does not provide any information in relation to financial assets not measured at fair value where the carrying amount is a reasonable approximation of fair value. EURk Financial assets measured at fair value Other current assets - derivatives with positive market value that are already assigned to receivables (Fair value hedge) Other current assets - derivatives with positive market value (cash flow hedge) Trade receivables Other financial assets Total Financial assets not measured at fair value Cash and cash equivalents Trade receivables Other financial assets Total Total EURk Financial assets measured at fair value Other current assets - derivatives with positive market value that are already assigned to receivables (Fair value hedge) Other current assets - derivatives with positive market value (cash flow hedge) Trade receivables Other financial assets Total Financial assets not measured at fair value Cash and cash equivalents Trade receivables Other financial assets Total Total Carrying amount 06/30/2023 Fair value 06/30/2023 15,013 15,013 13,990 13,990 17,447 17,447 216 216 42,781 245,343 209,879 41,467 496,688 543,354 - - - Carrying amount 12/31/2022 Fair value 12/31/2022 17,281 17,281 18,519 6,765 216 42,781 18,519 6,765 216 - - - 278,738 263,657 34,349 576,744 619,525
Notes to the consolidated financial statements_H1 2023 The table below shows the carrying amounts and fair values of financial liabilities (financial instruments shown on the liabilities side), broken down by class and IFRS 9 measurement category. However, it does not provide any information in relation to financial liabilities not EURk measured at fair value where the carrying amount is a reasonable approximation of fair value. Carrying amount 06/30/2023 Classification under IFRS 9 Fair value 06/30/2023 Financial liabilities measured at fair value Fair value - hedging instruments Other financial liabilities - derivatives with negative market value that have already been assigned to receivables 295 FVPL 295 Other financial liabilities - derivatives with negative market value (cash flow hedge) 2,533 FVOCI 2,533 Total Financial liabilities not measured at fair value At amortized cost Interest-bearing liabilities Trade payables Other financial liabilities (current and non-current) Total Total EURk 2,828 614,956 730,769 71,003 1,416,728 1,419,556 AC AC AC 598,904 - - Carrying amount 12/31/2022 Classification under IFRS 9 Fair value 12/31/2022 Financial liabilities measured at fair value Fair value - hedging instruments Other financial liabilities - derivatives with negative market value that have already been assigned to receivables Other financial liabilities - derivatives with negative market value (cash flow hedge) Total 394 FVPL 394 254 648 FVOCI 254 Financial liabilities not measured at fair value At amortized cost Interest-bearing liabilities Trade payables Other financial liabilities (current and non-current) Total Total 467,365 737,602 87,294 1,292,261 1,292,909 AC AC AC 449,181 - - Fair value determination: In relation to the valuation technique, please refer to Note 43 (Classification and Fair Value) of the consoli- dated financial statements of PIERER Mobility as of December 31, 2022.
45 Fair value Carrying amount 06/30/2023 Level 1 Level 2 Level 3 Total AC Amortised Cost FVOCI Fair Value through OCI FVOCI Fair Value through OCI (excluding recycling) FVPL Fair Value through P&L Fair Value - Hedging Instruments - 295 - 295 - 2,533 - 2,533 - - - - - - - - 598,904 598,904 614,956 - - - - 730,769 71,003 - - - - - - - - - - - 295 - 2,533 - - - - - - Fair value Carrying amount 12/31/2022 Level 1 Level 2 Level 3 Total AC Amortised Cost FVOCI Fair Value through OCI FVOCI Fair Value through OCI (excluding recycling) FVPL Fair Value through P&L Fair Value - Hedging Instruments - - - - - 394 254 - - 394 254 - - - - - 449,181 449,181 - - - - 467,365 737,602 87,294 - - - - - - - - - - - - - - - 394 254 - - -
Notes to the consolidated financial statements_H1 2023 E XPL ANATIONS REGARDING REL ATED COMPANIES AND INDIVIDUALS In June 2023, the PIERER Mobility Group concluded a factoring program with Pierer Konzerngesellschaft mbH, the ultimate parent company of the PIERER Mobility Group. The volume of receivables sold amounted to € 97.0 million, of which € 79.8 million were outstanding on June 30. All business transactions with related companies and individuals, as stated in the consolidated financial statements as of December 31, 2022, were carried out at arm’s length. As of June 30, 2023, there were no further significant changes in the related companies and individuals and the nature of the transactions with them. E VENTS AF TER THE REPORTING DATE JUNE 30, 2023 Events that occurred after June 30, 2023 and are material for the measurement of the assets and liabilities have either been reflected in these financial statements or are not known. DECL AR ATION OF THE E XECUTIVE BOARD PURSUANT TO SECTION 87 PAR A . 1 NO. 3 OF THE AUSTRIAN STOCK E XCHANGE ACT (§ 87 ABS 1 Z 3 BÖRSEGESE T Z ) important events that occurred during the first six months of the financial year and their impact on the condensed interim consolidated financial statements in relation to the principal risks and uncertainties for the remaining six months of the financial year and in relation to material transactions with related parties requiring disclosure. We confirm that, to the best of our knowledge, the condensed interim consolidated financial statements, which have been prepared in accordance with the applicable accounting standards, give a true and fair view of the assets, liabilities, financial position, and profit or loss of the PIERER Mobility Group. Furthermore, that the interim group management report gives a true and fair view of the assets, liabilities, financial position and earnings position of the group in relation to the Wels, August 29, 2023 The Executive Board of PIERER Mobility AG Stefan Pierer (CEO) Viktor Sigl, MBA (CFO) Florian Burguet Florian Kecht Alex Pierer Hubert Trunkenpolz Rudolf Wiesbeck
47 Financial calendar January 30, 2024 March 27, 2024 April 9, 2024 April 19, 2024 April 24, 2024 April 25, 2024 April 29, 2024 August 27, 2024 Announcement of preliminary annual results 2023 Publication of annual financial statements 2023 Record date annual general meeting 27th annual general meeting Ex-dividend date Record date „dividends“ Dividend payment date Report on the 1st half-year 2024 IMPRINT Owner and publisher PIERER Mobility AG Edisonstrasse 1 4600 Wels, Austria FN 78112 x / Wels Provincial and Commercial Court CONTACT Melinda Busáné Bellér Investor Relations, Sustainability Telefon: +43 1 533 1 433 - 70 E-Mail: email@example.com Website: www.pierermobility.com CI-Conzept: LX media GmbH, 4600 Wels, www.lx-media.at‚ Design: Grafik-Buero Elena Gratzer, 4600 Wels, www.grafik-buero.at Photos: KTM archive, Husqvarna Motorcycles archive, GASGAS archive, FELT archive, CFMOTO archive The present report has been prepared with the utmost care and the correctness of the data was checked. Nevertheless, slight differences in the calculations may arise as result of the summation of rounded amounts and percentages, and typographical and printing errors cannot be ruled out. References to persons such as “employees” or “staff members” are intended to be gender-neutral and insofar as the contrary appears this is solely for purposes of legibility. This half-year report and the forward-looking statements it contains were prepared on the basis of all the data and information available at the time of going to press. However, we are must point out that various factors may cause the actual results to deviate from the forward-looking statements given in the report. This report is published in German and English. In case of doubt, the German version shall prevail.