Earnings Release • Jan 29, 2018
Earnings Release
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publication: 29.01.2018 17:33 source: http://adhoc.pressetext.com/news/1517243580375 keywords: KTM Industries AG / Record result / Preliminary result
Public disclosure of inside information according to article 17 MAR
Wels (pta036/29.01.2018/17:33) - * Revenues: 1,533.4 mEur / + 14% compared to the previous year
According to preliminary results, the KTM Industries Group in the business year 2017 achieved record revenues in the amount of 1,533.4 mEur (+14%). This corresponds to an increase of 190.4 mEur. The preliminary EBIT improved to 132.5 mEur (+8%) after 122.3 mEur in the previous year. The preliminary result before taxes increased to 117.0 mEur after 108.9 mEur in the previous year.
With 238,334 sold motorcycles of the brands KTM and Husqvarna in the business year 2017, KTM AG has further strengthened its number 1 position as the biggest motorcycle producer in Europe. Sales increased by more than 17% compared to the previous year.
To support further growth, 92 mEur were invested in product development (including tools and machines) in the past year. Investments in plant and infrastructure investments focused on the new high-performance drivetrain production facility and the investment in additive manufacturing at Pankl in Kapfenberg, as well as the expansion of the research and development department at KTM in Mattighofen.
The entire investment program amounting to 179.6 mEur was financed from the own cash flow and the KTM Industries Group generated a positive free cash flow of approx. 5.8 mEur.
Due to the growth of the group, 818 additional employees could be hired in the business year 2017; thereof 652 in Austria. On December 31, 2017 the number of employees within the group amounted to 5,887, thereof 4,568 in Austria.
In order to safeguard the further growth of the KTM Industries Group and to realize synergy potential, the WP Group, as the most important supplier of motorcycle production in Mattighofen, was fully integrated into KTM AG.
The Pankl Racing Systems Group increased its sales by 5% to 195.4 mEur and achieved an EBIT of 11.9 mEur. The Pankl business year was dominated by the successful commissioning of the modern special gear factory in Kapfenberg, the so far largest investment in the company's history.
In January 2018, the delisting of the Pankl-shares from the Vienna Stock Exchange has been initiated by KTM Industries and a takeover bid to the shareholders of Pankl Racing Systems AG will be published.
For the business year 2018, KTM Industries Group expects further organic growth in its core areas. With the market launch of Husqvarna's first street motorcycles (Vitpilen and Svartpilen) and the KTM twin-cylinder models (790 Duke), management expects to remain on track to continue on the growth path and anticipates a positive business performance for 2018.
| Guidance | 2018 (new) | 2021 (new) | 2021 (old) |
|---|---|---|---|
| Revenue growth | 9 - 11% | 9 - 11% CAGR 2018-21 | 7 - 9% CAGR 2018-21 |
| Number of motorcyles sold 1) |
- | > 360,000 units | > 300,000 units |
| EBIT margin | 8 - 10% | 8 - 10% | 8 - 10% |
| Capex / sales | 8 - 10% | 8 - 10% | 9 - 11% |
| Net debt / EBITDA | 1.6 - 1.7x | < 1.3 x | < 1.5 x |
| ROIC | - | 10 - 12% | 9 - 11% |
| Dividend policy | Stable and conservative | Stable and conservative | Stable and conservative |
| payout level | payout level | payout level |
KTM Industries AG aims to sell annually 400,000 motorcycles by the business year 2022.
1) Including units sold by Bajaj Auto Ltd.
In order to further increase trading liquidity of the shares on the SIX Swiss Exchange, the main shareholder, Stefan Pierer, is considering placing a limited portion of his stake with qualified and institutional investors in a prospectus-exempted offer in February 2018 via his affiliated companies. Stefan Pierer will continue to hold a clear majority of the shares of KTM Industries AG (at least 60%). Bank Vontobel AG has been entrusted with the execution of the international private placement.
The KTM Industries Group is a leading European vehicle group with a strategic focus on the global sports motorcycle segment and the automotive high tech components segment. With its worldwide renowned brands KTM, Husqvarna Motorcycles, WP and Pankl the group 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.
| Preliminary | |||||
|---|---|---|---|---|---|
| Earnings figures | 2016 | 2017 | Chg. in % | ||
| Revenues | mEur | 1,343.0 | 1,533.4 | 14% | |
| EBITDA | mEur | 198.4 | 219.0 | 10% | |
| EBIT | mEur | 122.3 | 132.5 | 8% | |
| Earnings after | mEur | 89.0 | 84.0 | -6% | |
| taxes | |||||
| Earnings after | mEur | 52.1 | 44.7 | -14% | |
| minorities | |||||
| EBITDA margin | 14.8% | 14.3% | |||
| EBIT margin | 9.1% | 8.6% | |||
| Balance sheet figures |
31.12.2016 | 31.12.2017 | Chg. in % |
| Balance sheet total |
mEur | 1,423.8 | 1,470.8 | 3% | |
|---|---|---|---|---|---|
| Equity | mEur | 454.9 | 528.7 | 16% | |
| Equity Ratio | in % | 32.0% | 36.0% | ||
| Net debt | mEur | 364.6 | 375.0 | 3% | |
| Gearing | in % | 80.1% | 70.9% | ||
| Net debt / | 1.8x | 1.7x | |||
| EBITDA | |||||
| Capex | mEur | -144.4 | -179.6 | ||
| Employees | Headcount | 5,069 | 5,887 | 16% | |
| Cash flow | 2016 | 2017 | |||
| figures | |||||
| Cash flow from operating activities |
mEur | 167.8 | 164.3 | -2% |
The annual financial report 2017 will be available on the company's website www.ktm-industries.com from March 20, 2018 under the following link: http://www.ktm-industries.com/index.php/en/ir/berichte/annualfinancialreports
This announcement does constitute neither an offer to sell nor an intimation to submit a proposal for the acquisition of securities of KTM Industries AG.
| emitter: | KTM Industries AG Edisonstraße 1 4600 Wels Austria |
|---|---|
| contact person: | Mag. Michaela Friepeß |
| phone: | +43 7242 69402 |
| e-mail: | [email protected] |
| website: | www.ktm-industries.com |
| ISIN(s): | AT0000500913 (bond), AT0000820659 (share), AT0000A0WQ66 (bond), AT0000A1MBL8 (bond) |
| stock exchanges: | official trade in Vienna; open market (free market) in Frankfurt |
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