Quarterly Report • Nov 11, 2016
Quarterly Report
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| MANAGEMENT REPORT 4 |
|
|---|---|
| Company4 | |
| Employees 5 | |
| Economic environment 5 | |
| Revenues and earnings6 | |
| Balance sheet and financial position7 | |
| Cash flow7 | |
| Development of the KTM Industries share 7 | |
| Risk report 8 | |
| Related party transactions 8 | |
| Significant events after the period under review 8 | |
| Outlook8 | |
| Group-Structure 10 | |
| KTM AG (51.7%)12 | |
|---|---|
| WP AG (88.3%)14 | |
| Pankl Racing Systems AG (92.6%)16 |
| Company24 | |
|---|---|
| Accounting principles24 | |
| Accounting rules25 | |
| Scope of consolidation 25 | |
| Estimates26 | |
| Seasonality26 | |
| Notes to the consolidated income statement26 | |
| Notes to the consolidated statement of comprehensive income 26 | |
| Earnings per share27 | |
| Notes to the consolidated balance sheet27 | |
| Contingencies, lien rights and responsibilities27 | |
| Notes to the consolidated cash flow statement 27 | |
| Disclosures on financial instruments28 | |
| Fair value determination30 | |
| Segment reporting31 | |
| Related party transactions 32 | |
| Significant events after the balance sheet date32 | |
| Sanjira | n. | ||
|---|---|---|---|
| Earnings Figures | Q1-3 2015 | Q1-3 2016 | Change in % | |
|---|---|---|---|---|
| Revenues | in m€ | 912.8 | 1,001.0 | 10 |
| EBITDA | in m€ | 134.8 | 149.2 | 11 |
| EBIT | in m€ | 89.7 | 95.8 | 7 |
| Earnings for the period | in m€ | 50.7 | 61.4 | 21 |
| EBITDA margin | 14.8% | 14.9% | - | |
| EBIT margin | 9.8% | 9.6% | - |
| Balance Sheet Figures | Dec. 31, 2015 | Sep. 30, 2016 | Change in % | |
|---|---|---|---|---|
| Balance sheet total | in m€ | 1,177.6 | 1,342.9 | 14 |
| Equity | in m€ | 386.6 | 409.9 | 6 |
| Equity ratio | 32.8% | 30.5% | - | |
| Net debt | in m€ | 387,4 | 444,3 | 15 |
| Gearing | 100.2% | 108.4% | - | |
| Employees | Dec. 31, 2015 | Sep. 30, 2016 | Change in % | |
| Number of employees as of reporting date (incl. contract workers and externals) |
4,553 | 4,996 | 10 |
for the first three quarters of 2016
The KTM Industries Group is a leading Austrian vehicle group with a strategic focus on the global automotive niche segment. With its worldwide renowned brands KTM, Husqvarna Motorcycles, WP and Pankl the group is among the technology and market leaders in each niche. 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 the respective markets. All these factors are the basis for the high innovation level of KTM Industries Group and ensure the organic growth course sustainably.
In the course of an extraordinary shareholders meeting in July 2016 the renaming of the company from CROSS Industries AG to "KTM Industries AG" was resolved and registered with the company register on July 29, 2016.
KTM Industries Group continues its successful course in its current financial year. In the first nine months 2016 record revenues in the amount of EUR 1 billion could be achieved. The growth in revenues was primarily driven by the positive development of the operating companies KTM AG, WP AG and Pankl Racing Systems AG. In the first three quarters 2016 they were above the previous year's level concerning revenues and EBIT.
In addition, the current business year was characterized by additional acquisitions of shares in Pankl Racing Systems AG, which thereby strengthens its strategic position effectively within the KTM Industries Group. In the first nine months KTM Industries AG increased its current share in Pankl Racing Systems AG from previous 55.9% to 92.6%.
In its capital market activities, the KTM Industries Group will intensify the focus on the stock exchange listing of KTM Industries AG. A delisting of the two subsidiaries KTM AG and WP AG was conducted in order to establish a leaner capital market structure. The free float in both entities was considerably below the threshold of one per cent. To the free float shareholders of KTM AG and WP AG tender offers had been submitted as accompanying measures in order to enable an exit from the companies. Shareholders, who did not accept the tender offers, are still shareholders of KTM AG and WP AG.
Effective as of the end of June 10, 2016 the WP-share was withdrawn from the Regulated Market (Geregelter Freiverkehr) of the Vienna Stock Exchange. Effective as of the end of June 24, 2016 the KTM-share was withdrawn from the Third Market (Dritter Markt) of the Vienna Stock Exchange. After completion of the delistings of KTM AG and WP AG a conversion from bearer shares into registered shares is in progress. The necessary resolutions were passed during the extraordinary shareholders meetings of the companies in July 2016. The corresponding information has already been published on the websites of KTM AG and WP AG and distributed through the custodian banks. The registration of the shareholders in the share register of both companies is in progress.
The shares of KTM Industries AG are listed in the Official Market (Amtlicher Handel) (Segment prime market) of the Vienna Stock Exchange. KTM Industries AG intends a further listing of its issued shares at the Stock Exchange in Zurich, Switzerland. The respective preparation activities in accordance with the capital market requirements are currently being undertaken. The shares of KTM Industries AG are expected to be listed on November 14, 2016 on the SIX Swiss Exchange. Through the listing on SIX, KTM Industries expects a better access to Swiss and international institutional investors.
The employee development within the group is very positive. In the first three quarters 2016 additional 443 employees could be hired, thereof 374 in Austria. As of September 30, 2016 the number of employees amounted to 4,996.
According to the report of the International Monetary Fund (IMF) as of October 2016, the global economic growth will increase by 3.1% in 2016, unchanged to the prognosis of July 2016. However, the prognosis of April 2016 showed a growth rate of 3.2% and the prognosis of January 2016 showed 3.4%.
For advanced economies, a growth rate of 1.6% is projected for the current year and 1.8% for the next year. For the Euro area, a development of 1.7% is projected for 2016. For the year 2017, the IMF anticipates a global economic growth of 3.4% and for the Euro area a moderate growth of 1.5%.
For emerging markets and developing economies, a growth in economic output of 4.2 % is projected for the year 2016 and 4.6 % for the year 2017. For China, a growth rate of 6.6 % for the year 2016 and 6.2 % for the year 2017 is projected. The highest growth rate is expected for India, with 7.6 % for the current and the next year.
Brad Binder KTM RC 250 GP Phillip Island 2016
In the first three quarters of 2016 the KTM Industries Group achieved revenues in the amount of 1,001.0 m€ (previous year: 912.8 m€) and an EBIT in the amount of 95.8 m€, which increased by approximately 7% compared to the same period in the previous year (previous year: 89.7 m€).
The WP Group increased revenues in the first three quarters of 2016 by around 14% from 106.2 m€ in the comparison period of the previous year to a total of 121.1 m€. The increase in revenues was noted in almost all business segments and product groups. As a consequence of the higher revenues, the operating EBIT before extraordinary business transactions increased by approximately 5% compared to the previous year and amounted to 7.7 m€ in the first three quarters (previous year: 7.3 m€). Due to the disposal of a non-operating property and various other fixed assets, an extraordinary income in the amount of 3.3 m€ was achieved. Also, extraordinary expenditures in the amount of 1.6 m€ were recorded. In total, this led to an EBIT of 9.4 m€. Therefore, the EBIT margin increased from 6.9% to 7.8%. Adjusted for the extraordinary result an operating EBIT margin of 6.4% could be achieved. Purchase prices, especially within Asia, are still under pressure and lead to a burden of the operating margin.
The Pankl Group achieved revenues in the amount of 138.6 m€ in the nine months of the business year 2016 and could therefore increase its revenues by 7.0% compared to the previous year's period (previous year: 129.6 m€). The racing business of the Racing/ High Performance Segment grew strongly and also the high performance business continued to grow. The market environment in the Aerospace Segment continued to be very difficult. Compared to the previous year, the EBIT increased by 27.4% from 8.0 m€ in the first nine months 2015 to 10.2 m€ in the first nine months of the business year 2016. The EBIT margin amounted to 7.4% (previous year: 6.2%).,
The balance sheet total of the KTM Industries Group increased from 1,177.6 m€ to 1,342.9 m€ compared to the consolidated financial statements of December 31, 2015 which is mainly attributable to the growth-related increase in trade receivables and advance payments to suppliers. As of balance sheet date September 30, 2016 equity increased to 409.9 m€ compared to 386.6 m€ as of December 31, 2015. In the first three quarters 2016 the acquisitions of shares in companies in the amount of 57.2 m€ reduced the equity. This was, however, largely compensated by the issuance of a perpetual bond in the amount of 40.0 m€, which is recognized in equity. Due to the positive result for the period in the amount of 61.4 m€ less dividends in the amount of 18.0 m€, the equity developed overall positive in the first nine months 2016. The net debt amounted to 444.3 m€ at the end of September 2016.
Cash flow from operating activities amounted to 67.4 m€ in the first three quarters 2016 and was above the previous year's level of 16.7 m€. The improvement of the cash flow from operating activities is attributable to the positive group results as well as to the various measures of improving the working capital, compared to the previous year's development. The cash flow from investing activities amounted to -96.3 m€ in the first nine months of the current business year. Taking into account the cash flow from financing activities in the amount of 98.1 m€, the liquid funds increased by 69.2 m€ (including foreign currency effects in the amount of -0.1 m€) to 204.3 m€ in the first three quarters of 2016 compared to December 31, 2015.
The KTM Industries share showed a very gratifying development during the last twelve months. During the first three quarters the share price rose almost steadily and closed at € 3.95 on the last trading day (September 30, 2016). As of September 30, 2016 the market capitalization for 225,386,742 shares admitted for trading amounted to 890.3 m€. The highest closing price during the first nine months 2016 was € 4.05; the lowest was € 3.15.
| 74.89% Pierer Industrie AG | |
|---|---|
| 0.01% Treasury shares | |
| 25.10% Free float |
In this context we refer to the information given in the consolidated financial statements of December 31, 2015. Since then there have been no changes in evaluation of risks.
In this context we refer to the notes of the interim financial statements.
In this context we refer to the notes of the interim financial statements.
In the business year 2016 the KTM Industries Group still continues to focus on organic growth in its core areas through further expansion of market share and global growth, whereby the focus is on emerging markets. Within the corporate divisions the focus is on the mutual utilization of synergy potentials and on the further development of cooperative projects.
In the view of the current order situation the Management's assessment predicts a further positive development for the remaining business year 2016. As in the previous years the markets on the different continents will develop differently in the future. Therefore, continuous assessment and critical evaluation of the market-, production- and cost situation is emphasized in order to take immediate action for stabilizing the striven profit situation if necessary. For the business year 2016 the group expects revenues of about 1.3 bn€ and an EBIT between 115 and 120 m€.
Within the KTM Group the planned investments for 2016 remain at a high level. In 2016 work began on the construction of the KTM Experience World in Mattighofen, which will include a museum and an demonstration workshop. Furthermore, KTM is investing around 25.0 m€ at the location in Mattighofen for the expansion of the research and development activities. In the medium-term, there will be 100 new, high qualified workplaces at the location in Mattighofen due to this expansion investment. The total investment should be completed until the end of 2017. KTM will make its debut in the MotoGP racing series in 2017. The team was unveiled in August 2016 at the Austrian Grand Prix, which was held at the Red Bull Ring in Spielberg.
For the business year 2016 the WP Group expects a significant increase in revenues compared to the previous year. Due to the extraordinary effect on earnings resulting from the sale of property and various other fixed assets in the first three quarters 2016, a better result than in the previous year is expected for 2016. In order to enable the planned growth process of the WP Group, the expansion of the manufacturing capacities is of central significance. In this context, the construction of a new exhaust manufacturing, a development center for exhaust and framework systems and the WP motorsports center started in 2015. The exhaust manufacturing was completed as scheduled in July. The completion of the development and motorsports center is planned in stages until November 2016.
Due to the current order situation for the remaining months of the business year 2016 and despite increasing volatility in the high performance segment and an ongoing adverse market environment in the civil helicopter business, Pankl Group expects a solid result for the fourth quarter 2016. Preparations for the 2017 start of production at the new high performance drivetrain facility are running at full speed according to plan.
Wels, on November 11, 2016
Stefan Pierer, CEO Friedrich Roithner, CFO Alfred Hörtenhuber Wolfgang Plasser
Simplified presentation, September 30, 2016
The implementation of the global product strategy as well as the expansion into further Asian and South American markets has been consistently pursued in the first nine months of 2016. In the first three quarters 2016 KTM reported a pleasing business performance and thus achieved consolidated revenues amounting to 850.2 m€ (+12.0% compared to the previous year). Taking into account the 200 Duke, 390 Duke, RC 200 and RC 390 sold by the partner Bajaj in India, 151,621 vehicles were sold worldwide in the first nine months 2016 (+12.0% compared to previous year). In the first nine months of 2016 KTM showed an EBITDA of 118.3 m€ (+10.8% compared to previous year) and an EBIT of 78.9 m€ (+3.7% compared to previous year).
Shareholder structure KTM AG (September 30, 2016)
In June 2016 a promissory note loan with a volume amounting to 120 m€ and a duration of five, seven and ten years was issued.
As of September 30, 2016 the number of employees amounted to 2,869.
K KraftFahrZeug Holding GmbH (formerly: CROSS KraftFahrZeug Holding GmbH) submitted a public purchase offer to all shareholders of free float shares of KTM as accompanying measure to the delisting of the shares of KTM AG from the Third Market (MTF) of the Vienna Stock Exchange. The offer price amounted to € 122.5 per share. Until the end of the Acceptance Period on June 10, 2016, there have been 22,490 shares of KTM AG submitted for sale; this equals to approximately 0.21% of the share capital of KTM AG. Effective as of the end of June 24, 2016 the KTM-share was withdrawn from the Third Market (Dritter Markt) of the Vienna Stock Exchange.
Although KTM expects the North American motorcycle market to enjoy significant growth in the current year and is also relatively bullish with regard to Europe, the emerging markets in South America and Asia are marked by numerous uncertainties. Asian markets are regarded to represent the biggest growth opportunities over the medium-term.
| Earnings figures | Q1-3 2015 | Q1-3 2016 | Chg. in % | |
|---|---|---|---|---|
| Revenues | in m€ | 759.1 | 850.2 | 12% |
| EBITDA | in m€ | 106.8 | 118.3 | 11% |
| EBIT | in m€ | 76.1 | 78.9 | 4% |
| Earnings after taxes | in m€ | 50.8 | 54.2 | 7% |
| Balance sheet figures | Dec. 31, 2015 | Sep. 30, 2016 | Chg. in % |
|---|---|---|---|
| Balance sheet total in m€ |
848.9 | 996.3 | 17% |
| Equity in m€ |
379.8 | 411.2 | 8% |
| Equity ratio | 44.7% | 41.3% | - |
| Net debt in m€ |
97.2 | 148.8 | 53% |
| Gearing | 25.6% | 36.2% | - |
| Stock exchange figures | Dec. 31, 2015 | Sep. 30, 2016 | Chg. in % | |
|---|---|---|---|---|
| Number of shares | share | 10,845,000 | 10,845,000 | - |
| Market capitalization | in m€ | 1,323.1 | *) | - |
| Closing price | in € | 122.0 | *) | - |
*) last trading day of the KTM AG-share on the Vienna Stock Exchange was June 24, 2016
The WP Group's operating business developed very successful in the first three quarters 2016. Compared to the record year 2015, revenues increased again by 14% to a new peak value in the amount of 121.1 m€. This increase in revenues could be realized in almost all business segments and product groups. In total, the EBIT of WP AG amounted to about 9.4 m€ in the first nine months 2016. Prior consideration of extraordinary business transactions in the amount of 1.7 m€, an operating EBIT of 7.7 m€ was achieved. This extraordinary result includes, among others, the disposal of a non-operating property.
In July 2016 the segments research & development and factory racing were taken over by KTM Group for strategic reasons. Since then, a project group has been implemented, which is responsible for a smooth integration of the mentioned segments into the KTM Group.
As of September 30, 2016 the number of employees amounted to 640.
KTM Industries AG (formerly: CROSS Industries AG) submitted a voluntary public takeover offer to all shareholders of WP AG as accompanying measure to the delisting of the shares of WP AG from the Regulated Market (Geregelter Freiverkehr) of the Vienna Stock Exchange. The offer price amounted to € 18.0 per share. Until the end of the Acceptance Period on 25 May 2016, there have been 5,945 shares of WP AG submitted for sale; this equals to approximately 0.12% of the share capital of WP AG. Effective as of the end of June 10, 2016 the WP-share was withdrawn from the Regulated Market (Geregelter Freiverkehr) of the Vienna Stock Exchange.
For the business year 2016 a significant increase in revenues across almost all segments of the group, compared to the previous year, is anticipated. This increase is expected across almost all segments of the group. Due to the extraordinary effect on earnings, a better result than in the previous year is expected for 2016.
| Earnings figures | Q1-3 2015 | Q1-3 2016 | Chg. in % | |
|---|---|---|---|---|
| Revenues | in m€ | 106.2 | 121.1 | 14% |
| EBITDA | in m€ | 10.2 | 12.6 | 24% |
| EBIT | in m€ | 7.3 | 9.4 | 29% |
| Earnings after taxes | in m€ | 5.5 | 7.8 | 42% |
| Balance sheet figures | Dec. 31, 2015 | Sep. 30, 2016 | Chg. in % |
|---|---|---|---|
| Balance sheet total | in m€ 99.6 |
106.6 | 7% |
| Equity | in m€ 42.3 |
47.0 | 11% |
| Equity ratio | 42.4% | 44.1% | - |
| Net debt | in m€ 20.0 |
30.7 | 53% |
| Gearing | 47.3% | 65.3% | - |
| Stock exchange figures | Dec. 31, 2015 | Sep. 30, 2016 | Chg. in % | |
|---|---|---|---|---|
| Number of shares | share | 5,000,000 | 5,000,000 | - |
| Market capitalization | in m€ | 70.5 | *) | - |
| Closing price | in € | 14.1 | *) | - |
*last trading day of the WP AG-share on the Vienna Stock Exchange was June 10, 2016
In the first nine months of 2016, Pankl Group achieved record revenues in the amount of 138.6 m€, which was an increase of 7.0%. The group achieved a significant improvement in operating earnings (EBIT). In the first three quarters of the business year 2016, EBIT increased by 27.4% from 8.0 m€to 10.2 m€, which corresponds to an EBIT margin of 7.4%. This was due to ongoing good utilization in the high performance business and a stable motor racing business. The market environment in the aerospace segment continued to be difficult.
In the first nine months 2016 in the segment racing/high performance, revenues increased by 7.5% to 120.4 m€. The operating earnings (EBIT) increased by 42.7% to 9.3 m€€in the first nine months 2016, compared to the previous year's level. Due to ongoing adverse market environment for helicopters, aerospace segment orders remained at weak levels. Nevertheless, revenues increased by 5.9% to 18.7 m€ in the first nine months 2016. The operating earnings (EBIT) amounted to 0.6 m€€ (previous year: 0.5 m).
As of September 30, 2016 the number of employees amounted to 1,476.
During the nine-month period under review the highest closing price was € 35.0; the lowest was € 26.5. As of September 30, 2016 the Pankl share closed at € 33.5. The market capitalization for 3,150,000 shares admitted for trading amounted to € 105.5 m.
Profitability improved over proportionally due to a more favorable product mix and significant productivity improvements in the first nine months. The helicopter market, which was extremely difficult, seems to have reached a bottom and started to stabilize at low levels. Due to current order situation Pankl expects solid results in the fourth quarter.
| Earnings figures | Q1-3 2015 | Q1-3 2016 | Chg. in % | |
|---|---|---|---|---|
| Revenues | in m€ | 129.6 | 138.6 | 7% |
| EBITDA | in m€ | 18.0 | 19.9 | 11% |
| EBIT | in m€ | 8.0 | 10.2 | 27% |
| Earnings after taxes | in m€ | 5.0 | 6.8 | 35% |
| Dec. 31, 2015 | Sep. 30, 2016 | Chg. in % | |
|---|---|---|---|
| in m€ | 182.3 | 187.5 | 3% |
| in m€ | 82.9 | 76.3 | -8% |
| 45.4% | 40.7% | - | |
| in m€ | 69.1 | 69.1 | 0% |
| 83.4% | 90.5% | - | |
| Stock exchange figures | Dec. 31, 2015 | Sep. 30, 2016 | Chg. in % | |
|---|---|---|---|---|
| Number of shares | share | 3,150,000 | 3,150,000 | - |
| Market capitalization | in m€ | 86.6 | 105.5 | 22% |
| Closing price | in € | 27.5 | 33.5 | 22% |
Shareholder structure Pankl Racing Systems AG (September 30, 2016)
for the first nine month of 2016 of KTM Industries AG (formerly: CROSS Industries AG), Wels (condensed)
| Consolidated balance sheet as at September 30, 2016 | Sep. 30, 2016 | Dec. 31, 2015 |
|---|---|---|
| Assets in k€ | ||
| Non-current assets: | ||
| Property, plant and equipment | 293,036 | 276,093 |
| Goodwill | 117,458 | 117,724 |
| Intangible assets | 234,422 | 207,805 |
| Financial assets accounted for using the equity method | 3,674 | 3,968 |
| Deferred tax assets | 5,577 | 7,160 |
| Receivables from affiliated companies | 245 | 105 |
| Other non-current assets | 28,703 | 26,360 |
| 683,115 | 639,215 | |
| Current assets: | ||
| Inventories | 224,595 | 242,678 |
| Trade receivables | 142,976 | 110,831 |
| Receivables from affiliated companies | 3,494 | 6,084 |
| Receivables and other assets | 84,447 | 42,797 |
| Cash and cash equivalents | 204,276 | 135,124 |
| Assets held for sale | 0 | 855 |
| 659,788 | 538,369 | |
| 1,342,903 | 1,177,584 |
| Consolidated balance sheet as at September 30, 2016 | Sep. 30, 2016 | Dec. 31, 2015 |
|---|---|---|
| Consolidated equity and liabilities in k€ | ||
| Consolidated equity: | ||
| Share capital | 225,387 | 225,387 |
| Capital reserves | 9,798 | 9,798 |
| Perpetual bond | 40,000 | 0 |
| Other reserves including retained earnings | -38,246 | -38,516 |
| Equity of the owner of the parent company | 236,938 | 196,669 |
| Non-controlling interests | 172,964 | 189,947 |
| 409,902 | 386,616 | |
| Non-current liabilities: | ||
| Financial liabilities | 490,669 | 465,224 |
| Employee benefits | 23,239 | 20,905 |
| Deferred tax liabilities | 39,584 | 38,313 |
| Other non-current liabilities | 11,127 | 8,471 |
| 564,619 | 532,913 | |
| Current liabilities: | ||
| Financial liabilities | 157,939 | 57,343 |
| Trade liabilities | 106,767 | 111,399 |
| Liabilities to affilited companies | 841 | 2,158 |
| Provisions | 11,817 | 10,226 |
| Tax liabilities | 4,919 | 1,643 |
| Other current liabilities | 86,099 | 75,286 |
| 368,382 | 258,055 | |
| 1,342,903 | 1,177,584 | |
| Q3 2016 | Q3 2015 | Q1-Q3 2016 | Q1-Q3 2015 | |
|---|---|---|---|---|
| from January 1, 2016 until September 30, 2016 in k€ | ||||
| Revenues | 324,117 | 288,290 | 1,001,025 | 912,799 |
| Cost of goods sold | -220,730 | -194,639 | -688,250 | -630,476 |
| Gross profit | 103,387 | 93,651 | 312,775 | 282,323 |
| Sales and racing expenses | -42,673 | -38,818 | -124,665 | -114,578 |
| Research and development expenses | -7,784 | -4,304 | -19,899 | -12,177 |
| Administration expenses | -19,139 | -17,301 | -57,379 | -52,780 |
| Other operating expenses | -8,146 | -5,856 | -20,396 | -15,711 |
| Other operating income | 550 | 726 | 5,402 | 2,648 |
| Earnings from operating activities | 26,195 | 28,098 | 95,838 | 89,725 |
| Interest income | 475 | 451 | 1,233 | 1,028 |
| Interest expenses | -5,251 | -4,807 | -14,500 | -13,216 |
| Earnings from at-equity holdings | 56 | -1,732 | 185 | -2,327 |
| Other financial and investment income | -225 | -1,469 | -1,990 | -3,378 |
| Earnings before taxes | 21,250 | 20,541 | 80,766 | 71,832 |
| Income taxes | -5,664 | -7,533 | -19,381 | -21,169 |
| Earnings for the period | 15,587 | 13,008 | 61,385 | 50,663 |
| thereof owner of the parent company | 8,553 | 4,565 | 33,862 | 23,682 |
| thereof non-controlling interests | 7,034 | 8,443 | 27,523 | 26,981 |
| Undiluted (=diluted) earnings per share (EUR) | 0.04 | 0.02 | 0.15 | 0.11 |
| Consolidated statement of comprehensive income for the first nine months 2016 |
Q3 2016 | Q3 2015 | Q1-Q3 2016 | Q1-Q3 2015 |
| from January 1, 2016 until September 30, 2016 in k€ | ||||
| Other income | ||||
| Items that were reclassified into the income statement or that can be reclassified afterwards |
||||
| Currency translation of foreign subsidiaries | -1,323 | -1,070 | -3,015 | 2,039 |
| Valuation of cash flow hedges | -476 | 4,832 | 1,065 | 5,591 |
| Deferred tax on the valuation of cash flow hedges | 119 | -1,208 | -266 | -1,398 |
| -1,680 | 2,554 | -2,216 | 6,232 | |
| Items that can not be reclassified into the income | ||||
| statement | ||||
| Revaluation of the net debt from defined benefit plans | 103 | -7 | -1,160 | -20 |
| Tax effect | -26 | 2 | 290 | 5 |
| 77 | -5 | -870 | -15 | |
| Other income after taxes | -1,603 | 2,549 | -3,086 | 6,217 |
| Comprehensive income | 13,984 | 15,557 | 58,299 | 56,880 |
| thereof owner of the parent company | 6,369 | 5,840 | ||
| 30,623 | 26,682 |
| Condensed consolidated cash flow statement as at September 30, 2016 | Q1-Q3 2016 | Q1-Q3 2015 |
|---|---|---|
| in TEUR | ||
| Operating activities | ||
| Earnings for the period | 61,385 | 50,663 |
| +/- Interest expenses / interest income |
13,267 | 12,188 |
| + Tax expenses |
19,381 | 21,169 |
| +/- Depreciation / amortization of property, plant and equipment and intangible assets |
53,312 | 46,493 |
| +/- Other non-cash expenses (income) |
-5,726 | 2,660 |
| + Interest received |
1,121 | 1,014 |
| - Interest paid |
-11,146 | -9,094 |
| - Tax payments |
-9,604 | -6,932 |
| Gross cash flow | 121,990 | 118,161 |
| -/+ Increase (decrease) of the net current assets |
-54,594 | -101,495 |
| Cash flow from operating activities | 67,396 | 16,666 |
| Investing activities | ||
| - Payments made for the acquisition of intangible assets and property, plant and equipment |
-103,153 | -83,901 |
| + Payments received from the disposal of intangible assets and property, |
6,074 | 1,457 |
| plant and equipment | ||
| +/- Payments received/made from other assets |
801 | 3,329 |
| Cash flow from investing activities | -96,278 | -79,115 |
| Financing activities | ||
| - Dividend payments to third parties |
-17,950 | -14,676 |
| +/- Disposal/acquisition on non-controlling interests |
-47,273 | -12,152 |
| + Raise of a promissory note loan |
119,540 | 56,500 |
| + Raise of a research loan |
0 | 45,000 |
| + Raise of a perpetual bond |
40,000 | 0 |
| - Repayment perpetual bond |
-1,010 | -58,990 |
| - Repurchase of own bonds |
-7,100 | 0 |
| +/- Increase (decrease) in other financing activities |
11,915 | 27,368 |
| Cash flow from financing activities | 98,122 | 43,050 |
| Total cash flow | 69,240 | -19,399 |
| + Opening balance of liquid funds within the group |
135,124 | 89,404 |
| + Effect of foreign currency fluctuations |
-88 | -1,933 |
| Closing balance of liquid funds within the group | 204,276 | 68,072 |
| Consolidated statement of changes in equity | ||||
|---|---|---|---|---|
| in k€ | Share | Capital | Perpetual | Reserves including |
| capital | reserves | Bond | retained earnings | |
| As at January 1, 2016 | ||||
| Comprehensive income | 225,387 | 9,798 | 0 | -36,789 |
| Earnings for the period | 0 | 0 | 0 | 33,862 |
| Other income | 0 | 0 | 0 | 0 |
| Comprehensive income | 0 | 0 | 0 | 33,862 |
| Transactions with shareholders | ||||
| Dividends to third parties | 0 | 0 | 0 | -6,760 |
| Acquisition/disposal of shares in subsidiaries | 0 | 0 | 0 | -23,740 |
| Perpetual bond | 0 | 0 | 40,000 | 0 |
| Treasury shares | 0 | 0 | 0 | 80 |
| As at September 30, 2016 | 225,387 | 9,798 | 40,000 | -33,347 |
| As at January 1, 2015 | ||||
| Comprehensive income | 1,332 | 137,825 | 58,987 | 11,425 |
| Earnings for the period | 0 | 0 | 0 | 23,682 |
| Other income | 0 | 0 | 0 | 0 |
| Comprehensive income | 0 | 0 | 0 | 23,682 |
| Transactions with shareholders | ||||
| Dividends to third parties | 0 | 0 | 0 | -5,313 |
| Merger into BF HOLDING AG | 224,055 | -128,027 | 0 | -70,805 |
| Acquisition/disposal of shares in subsidiaries | 0 | 0 | 0 | -2,600 |
| Repurchase perpetual bond | 0 | 0 | -57,994 | -996 |
| Treasury shares | 0 | 0 | 0 | 0 |
| As at September 30, 2015 | 225,387 | 9,798 | 993 | -44,607 |
| Consolidated | Non-controlling | Total | Reserve | Currency | IAS 19 reserve | IAS 39 |
|---|---|---|---|---|---|---|
| equity | interests | for treasury | translation | for actuarial | reserve | |
| total | shares | adjustments | losses | |||
| 386,616 | 189,947 | 196,669 | -101 | 1,761 | -3,401 | 14 |
| 61,385 | 27,523 | 33,862 | 0 | 0 | 0 | 0 |
| -3,086 | 153 | -3,239 | 0 | -3,055 | -582 | 398 |
| 58,299 | 27,676 | 30,623 | 0 | -3,055 | -582 | 398 |
| -17,950 | -11,190 | -6,760 | 0 | 0 | 0 | 0 |
| -57,209 | -33,469 | -23,740 | 0 | 0 | 0 | 0 |
| 40,000 | 0 | 40,000 | 0 | 0 | 0 | 0 |
| 146 | 0 | 146 | 66 | 0 | 0 | 0 |
| 409,902 | 172,964 | 236,938 | -35 | -1,294 | -3,983 | 412 |
| 370,928 | 166,601 | 204,327 | 0 | 605 | -3,544 | -2,303 |
| 50,663 | 26,981 | 23,682 | 0 | 0 | 0 | 0 |
| 6,217 | 3,217 | 3,000 | 0 | 838 | -10 | 2,172 |
| 56,880 | 30,198 | 26,682 | 0 | 838 | -10 | 2,172 |
| -14,677 | -9,364 | -5,313 | 0 | 0 | 0 | 0 |
| 23,709 | -1,514 | 25,223 | 0 | 0 | 0 | 0 |
| -12,152 | -9,552 | -2,600 | 0 | 0 | 0 | 0 |
| -58,990 | 0 | -58,990 | 0 | 0 | 0 | 0 |
| -118 | 0 | -118 | -118 | 0 | 0 | 0 |
| 365,580 | 176,369 | 189,211 | -118 | 1,443 | -3,554 | -131 |
to the consolidated financial statements for the first three quarters 2016
KTM Industries AG (formerly: CROSS Industries AG) has its headquarter in 4600 Wels, Edisonstraße 1, and is registered with the commercial register at the regional court Wels as commercial court, under the registration number FN 78112 x.
KTM Industries Group is a leading Austrian vehicle group with a strategic focus on the global automotive niche segment. With its worldwide renowned brands KTM, Husqvarna Motorcycles, WP and Pankl the group is among the technology and market leaders in each niche.
During the first three quarters 2016 KTM Industries AG increased its share in Pankl Racing Systems AG by 36.8% and in KTM AG by 0.4%. The share in WP AG decreased by 1.2%.
As of September 30, 2016 the major shareholdings are
The condensed interim consolidated financial statements for the reporting period from January 1 until September 30, 2016 of KTM Industries AG were prepared in accordance with the International Financial Reporting Standards (IFRS), to the extent used in the EU, applying IAS 34 (interim reporting).
These condensed interim consolidated financial statements for the first nine months 2016 were neither audited nor reviewed by an auditor.
The condensed interim consolidated financial statements do not include all of the notes and disclosures required for year-end consolidated financial statements and should therefore be read in conjunction with the consolidated financial statements as of December 31, 2015.
The interim consolidated financial statements are prepared in Euros, which is the functional currency of the parent company. Unless otherwise indicated, all amounts are given in 1,000,000 Euros (m€) rounded to one decimal place, whereby rounding differences can occur.
Through the application of automated calculating tools rounding differences can occur with accumulation of rounded figures and with percentages.
The balancing and valuation methods of the consolidated financial statements of December 31, 2015 remain fundamentally unchanged. For further information on balancing and valuation methods, please refer to the consolidated financial statements of the business year 2015, which form the basis for this interim consolidated financial statements of the first three quarters 2016.
The accounts of the companies included in the condensed interim consolidated financial statements, are subject to uniform accounting principles. These principles were applied by all companies included in the consolidated financial statements. 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 business year as a whole.
The following revised IFRS standards were to be applied in the reporting period for the first time:
The new, revised or adjusted standards and interpretations that will be effective for the first time in the business year 2016 have no or no significant impact on the presentation of the assets, financial and earnings position of these interim consolidated financial statements.
All major subsidiaries that are either legally or factually under the control of KTM Industries AG are included in the interim consolidated financial statements as of September 30, 2016.
The number of companies included in the scope of consolidation has developed in the first nine months 2016 as follows:
| Fully consolidated companies |
At equity companies |
|
|---|---|---|
| As at December 31, 2015 | 62 | 5 |
| Additions to the scope of consolidation | 1 | 0 |
| Disposals from the scope of consolidation | -3 | -2 |
| As at September 30, 2016 | 60 | 3 |
| thereof foreign companies | 39 | 2 |
KTM Industries AG – as the parent company of the KTM Industries Group – was not considered in the above table.
So far, KTM AG held a participation of 10% in Oberbank Mattigtal Immobilienleasing GmbH, Linz. In September 2016, KTM acquired further 84% of the company. The name has been changed to KTM Logistikzentrum GmbH and the registered office has been relocated to Mattighofen. As a result, KTM AG holds 94% of shares and the company is included in the group financial statements by full consolidation.
As of January 4, 2016 Pankl Holdings, Inc. increased its share in CP-CARRILLO, Inc. (formerly: CP-CARRILLO, LLC) and in Performance Equipment Company, LLC from 70% to 100%. Subsequently all assets and liabilities of the Performance Equipment Company, LLC were taken over by CP-CARRILLO, Inc. The company was subsequently liquidated. Furthermore, during the current business year all assets and liabilities of Pankl Engine Systems Inc. and Carrillo Acquisitions Inc. were taken over by CP-CARRILLO Inc. and both companies were also liquidated subsequently.
On May 2, 2016 Pankl Aerospace Systems Europe GmbH acquired 100% of S-Beschichtungstechnik GmbH. This company was merged with Pankl Aerospace Systems Europe GmbH retroactively to January 1, 2016.
The two disposals of the companies that are included at equity, relate to the companies of Wethje Group, in which KTM Industries AG holds about 18.0% of the shares at September 30, 2016 (Dec. 31, 2015: 49.0%).
To a certain extent, estimates and assumptions have to be made in the consolidated financial statements. These estimates have an impact on the balance sheet assets and liabilities, the disclosure of contingent liabilities at the balance sheet date, and the reporting of expenses and income in the business year. The management refers to empirical data that is considered adequate. The subsequent actual amounts may then differ from such estimates, if parameters do not develop according to expectations. New conditions will be considered when arising and assumptions will be adjusted.
Estimates and uncertainties with regard to discretionary decisions are explained in the consolidated financial statements of KTM Industries AG (formerly: CROSS Industries AG) as of December 31, 2015 under item (6) accounting policies.
At KTM AG seasonality effects occur due to a different seasonality of offroad- and street motorcycles. In the street segment, there are higher sales in the first half of the year, whereas in the offroad division, 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 straightened over the year to a great extent. At Pankl Racing Systems AG seasonal fluctuations exist in the segments Racing/High Performance because the racing season for the essential racing categories starts in spring and is due in autumn. Consequently the first quarter tends to be the strongest one.
In the first three quarters 2016 the consolidated revenues amounted to 1,001.0 m€. This corresponds to an increase of 88.2 m€ respectively 9.7% compared to the same period of the previous year. The KTM Group (+12.0%), the WP Group (+14.0%) as well as the Pankl Group (+7.0%) achieved growth in revenues. Within the KTM Industries Group the EBIT for the first three quarters 2016 increased by 6.8% to 95.8 m€ compared to the previous year. This corresponds to an EBIT margin of 9.6% (previous year: 9.8%). The EBIT includes an income deriving from the sale of a non-operating property and various other fixed assets in the amount of 3.3 m€.
The earnings after taxes amounted to 61.4 m€ (+21.2% to the previous year). Thereof KTM Group achieved a result in the amount of 54.2 m€, WP Group 7.8 m€ and Pankl Group 6.8 m€. The other companies (incl. consolidation effects) achieved a result in the amount of -7.4 m€.
The currency-translation differences that have no effect on income, in the amount of -3.0 m€ in the reporting period (including non-controlling interests) result mainly from the US Dollar as well as the British Pound. In the reporting period the cash flow hedge reserve increased the equity by 0.8 m€. Furthermore, actuarial losses in the amount of -0.9 m€ are recorded in equity.
The number of shares of KTM Industries AG amounts to 225,386,742. As of September 30, 2016 the company held 21,000 treasury shares (September 30, 2015: 71,038 shares). In the first three quarters 2016 the earnings per share amounted to € 0.15 (previous year: € 0.11).
The balance sheet total increased significantly by 14.0% compared to December 31, 2015 from 1,177.6 m€ to 1,342.9 m€. The investment level that is higher than the appreciations led to an increase in property, plant and equipment as well as intangible assets in the first nine months. Furthermore, the growth related increase in trade receivables as well as advance payments for inventories led to an increase in current assets. In June 2016 KTM AG placed a promissory note loan with a total issue volume of 120 m€ and maturities of five, seven and ten years in order to refinance the bond, which expires in April 2017. This led to a higher amount of cash and cash equivalents.
As of the reporting date the equity amounts to 409.9 m€ and increased by 23.3 m€ compared to December 31, 2015. On the one hand, due to the result for the period in the amount of 61.4 m€ and the emission of a perpetual bond in the amount of 40.0 m€, the equity increased; on the other hand, acquisitions of non-controlling interests in subsidiaries in the amount of 57.2 m€ and dividends in the amount of 18.0 m€ led to a decrease in the consolidated equity. As of the reporting date the equity ratio amounts 30.5% (Dec. 31, 2015: 32.8%).
The declarations of surety and liability guarantees that existed at December 31, 2015 towards Wethje Group and AGM Durmont Austria GmbH (formerly: Durmont Teppichbodenfabrik GmbH) in the amount of 14.0 m€, expired in the first three quarters 2016 without being claimed.
As of September 30, 2016 there have been no further significant changes compared to December 31, 2015.
In the first nine months the group liquid funds increased by 69.2 m€ to 204.3 m€. The change is comprised of the cash flow from operating activities in the amount of +67.4 m€, the cash flow from investing activities in the amount of -96.3 m€ as well as the cash flow from financing activities in the amount of +98.1 m€. The impact of exchange rate changes amounted to -0.1 m€.
The improvement of the cash flow from operating activities is caused by the positive consolidated results as well as by various measures in order to improve the working capital. Due to the increase in investments the cash flow from investing activities changed by -17.2 m€ compared to the previous year's period. The significant positive cash flow from financing activities resulted mainly from the promissory note load, placed by KTM AG in June 2016, in the amount of 120 m€. In addition, a perpetual bond in the amount of 40 m€ was placed by KTM Industries in order to finance the acquisitions made in 2016.
The time value (fair value) of a financial instrument is based on quoted market prices for an identical financial instrument in an active market (step 1). If there are no quoted market prices available on active markets for the financial instrument, then the time value shall be based on valuation methods with the major parameters being derived from observed market data only (step 2). In any other event, the time value shall be derived from valuation methods with at least one parameter not being based on observed market data (step 3).
The following table shows the carrying amounts and fair values of the financial assets (financial instruments shown on the assets side), broken down by class or measurement category according to IAS 39. But it does not provide information on financial instruments not measured at fair value where the carrying amount is a reasonable approximation of fair value.
| Book value Sep. 30, 2016 |
Fair Value Sep. 30, 2016 |
Fair value | ||||
|---|---|---|---|---|---|---|
| in m€ | Level 1 | Level 2 | Level 3 | Total | ||
| Loans and receivables | ||||||
| Cash and cash equivalents | 204.3 | |||||
| Trade receivables | 143.0 | |||||
| Receivabels from affiliated companies | 3.7 | |||||
| Other financial assets (current and non-current) | 27.9 | |||||
| Financial assets - loans | 1.9 | |||||
| Total | 380.8 | |||||
| Available for sale | ||||||
| Other non-current financial assets | 20.3 | |||||
| Total | 20.3 | |||||
| Held for trading | ||||||
| Other current assets - securities | 1.8 | 1.8 | 1.8 | 0.0 | 0.0 | 1.8 |
| Total | 1.8 | |||||
| Fair value - hedging instruments | ||||||
| Other current assets - derivatives with | ||||||
| positive market value | 5.8 | 5.8 | 0.0 | 5.8 | 0.0 | 5.8 |
| Total | 5.8 | |||||
| Total | 408.7 |
| Book value Dec. 31, 2015 |
Fair Value Dec. 31, 2015 |
Fair value | ||||
|---|---|---|---|---|---|---|
| in m€ | Level 1 | Level 2 | Level 3 | Level | ||
| Loans and receivables | ||||||
| Cash and cash equivalents | 135.1 | |||||
| Trade receivables | 110.8 | |||||
| Receivabels from affiliated companies | 6.2 | |||||
| Other financial assets (current and non-current) | 26.2 | |||||
| Financial assets - loans | 2.0 | |||||
| Total | 280.4 | |||||
| Available for sale | ||||||
| Other non-current financial assets | 17.9 | |||||
| Total | 17.9 | |||||
| Held for trading | ||||||
| Other current assets - securities | 1.6 | 1.6 | 1.6 | 0.0 | 0.0 | 1.6 |
| Total | 1.6 | |||||
| Fair value - hedging instruments | ||||||
| Other current assets - derivatives with positive | ||||||
| market value | 3.6 | 3.6 | 0.0 | 3.6 | 0.0 | 3.6 |
| Total | 3.6 | |||||
| Total | 303.5 |
The following table shows the carrying amounts and fair values of the financial liabilities (financial instruments shown on the liabilities side), broken down by class or measurement category according to IAS 39. But it does not provide information on financial liabilities not measured at fair value where the carrying amount is a reasonable approximation of fair value.
| Book value Sep. 30, 2016 |
Fair Value Sep. 30, 2016 |
Fair value | ||||
|---|---|---|---|---|---|---|
| in m€ | Level 1 | Level 2 | Level 3 | Total | ||
| At amortized cost | ||||||
| Interest bearing liabilities | 485.6 | 508.6 | 0.0 | 0.0 | 508.6 | 508.6 |
| Bonds | 162.6 | 168.9 | 158.5 | 0.0 | 10.3 | 168.9 |
| Liabilities finance lease | 0.5 | |||||
| Trade liabilities | 106.8 | |||||
| Liabilities to affiliated companies | 0.8 | |||||
| Other financial liabilities (current and non-current) | 49.3 | |||||
| Total | 805.5 |
| Book value Sep. 30, 2016 |
Fair Value Sep. 30, 2016 |
Fair value | ||||
|---|---|---|---|---|---|---|
| in m€ | Level 1 | Level 2 | Level 3 | Total | ||
| Held for trading | ||||||
| Other financial liabilities - derivatives with | 0.2 | 0.2 | 0.0 | 0.2 | 0.0 | 0.2 |
| negative market value | ||||||
| Total | 0.2 | |||||
| Fair value - heding instruments | ||||||
| Other financial liabilities - | 2.0 | 2.0 | 0.0 | 2.0 | 0.0 | 2.0 |
| derivatives with negative | ||||||
| market value (cash flow hedge) | ||||||
| Total | 2.0 | |||||
| Total | 807.7 |
| Book value Dec. 31, 2015 |
Fair Value Dec. 31, 2015 |
Fair value | ||||
|---|---|---|---|---|---|---|
| in m€ | Level 1 | Level 2 | Level 3 | Total | ||
| At amortized cost Interest bearing liabilities |
329.6 | 342.2 | 0.0 | 0.0 | 342.2 | 342.2 |
| Bonds | 170.5 | 178.5 | 167.9 | 0.0 | 10.6 | 178.5 |
| Liabilities finance lease | 22.5 | |||||
| Trade liabilities | 111.4 | |||||
| Liabilities to affiliated companies | 2.2 | |||||
| Other financial liabilities (current and non-current) |
41.3 | |||||
| Total | 677.5 | |||||
| Held for trading | ||||||
| Other financial liabilities - derivatives with negative market value |
0.6 | 0.6 | 0.0 | 0.6 | 0.0 | 0.6 |
| Total | 0.6 | |||||
| Fair value - heding instruments | ||||||
| Other financial liabilities - derivatives with negative | 2.9 | 2.9 | 0.0 | 2.9 | 0.0 | 2.9 |
| market value (cash flow hedge) | ||||||
| Total | 2.9 | |||||
| Total | 681.0 |
Concerning the valuation technique reference is made to the consolidated financial statements of KTM Industries AG (formerly: CROSS Industries AG) as of December 31, 2015, pointed out in 34.2 (Classification and fair value).
KTM Industries AG comprises the segments KTM, WP, PANKL as well as Other and are explained below:
KTM Group handles the development, production and the distribution of motorized leisure devices (power sports), especially under the brands "KTM" and "Husqvarna" and holds shares in enterprises in development, production and distribution of such devices.
WP Group operates in the motorcycle supplier sector. The WP Group develops, produces and distributes suspension elements, frames, radiators as well as exhaust systems at its headquarter in Munderfing, Austria.
Pankl Group is specialized in the production of high-strength lightweight components for special niche markets such as the international racing industry, the international luxury and high performance street vehicle industry as well as the aviation industry. Pankl mainly concentrates on developing, improving and testing of products.
In the segment "Other" KTM Industries AG and K KraftFahrZeug Holding GmbH (formerly: CROSS KraftFahrZeug Holding GmbH) are presented. In the previous year's period AGM Durmont Austria GmbH (formerly: Durmont Teppichbodenfabrik GmbH) was included, which was deconsolidated in April 2015.
Revenues, operating earnings, investments and depreciations can be divided into the described segments as follows:
| Segment reporting Q1-3 2016 | ||||||
|---|---|---|---|---|---|---|
| in m€ | KTM | WP | PANKL | Other | Consoli dation |
GROUP |
| Revenues (including retained earnings within | ||||||
| the segments) | 850.2 | 121.1 | 138.6 | 4.7 | -113.7 | 1.001.0 |
| Revenues external | 849.9 | 20.8 | 130.0 | 0.3 | 0.0 | 1.001.0 |
| Earnings from operating activities | 78.9 | 9.4 | 10.2 | -2.8 | 0.1 | 95.8 |
| Investments | 75.2 | 9.6 | 15.3 | 0.1 | 0.0 | 100.3 |
| Depreciation | 39.5 | 3.2 | 9.7 | 1.0 | 0.0 | 53.3 |
| Segment reporting Q1-3 2015 | ||||||
| in m€ | KTM | WP | PANKL | Other | Consoli dation |
GROUP |
| Revenues (including retained earnings within | ||||||
| the segments) | 759.1 | 106.2 | 129.6 | 15.2 | -97.2 | 912.8 |
| Revenues external | 758.7 | 18.3 | 123.8 | 12.0 | 0.0 | 912.8 |
| Earnings from operating activities | 76.1 | 7.3 | 8.0 | -1.7 | 0.0 | 89.7 |
| Investments | 84.1 | 6.2 | 9.0 | 0.2 | 0.0 | 99.5 |
| Depreciation | 30.7 | 2.9 | 10.0 | 1.5 | 0.0 | 45.1 |
In the first nine months of the business year 2016 KTM Industries AG purchased 36.6% of shares in Pankl Racing Systems AG in the amount of 34.2 m€ from Pierer Industrie AG and Pierer Konzerngesellschaft mbH. Therefore the share from KTM Industries AG in Pankl Racing Systems AG increased from 55.9% (Dec. 31, 2015) to 92.6% (Sep. 30, 2016). Due to this significant increase Pankl Group's strategic position within the KTM Industries Group will be sustainably strengthened.
Furthermore, in July 2016, 24% of the shares in WP AG were sold within the group from KTM Industries AG to KTM AG. Due to this transaction and considering the acquisition of WP-shares in the amount of 10.4% from third parties, the share (direct and indirect) of KTM Industries AG in WP AG slightly reduced from 89.5% (Dec. 31, 2015) to 88.3% (Sep. 30, 2016).
In the first three quarters of the business year 2016 a non-operating property was sold to PIERER IMMOREAL GmbH for 4.7 m€. The purchase price was paid in April 2016.
In order to strengthen the equity and for financing the acquisitions of shares in the core holdings KTM, Pankl and WP made in 2016, with a total investment volume of 57.2 m€, KTM Industries AG issued a subordinated 5.00% bond without a fixed maturity (perpetual bond) in the amount of 40 m€. This perpetual bond was purchased from Pierer Industrie AG, it is not subject to the obligation to publish a prospectus and is presented in the consolidated equity in the IFRS consolidated financial statements.
KTM Industries AG and WP AG sold in total 6% of the shares in WP Immobilien GmbH to P Immobilienverwaltung GmbH.
Due to the strategic orientation of the KTM Industries Group towards the automotive niche sector, the Network Performance Channel GmbH, Germany was sold to Pierer Industrie AG.
All products and services rendered and received from related companies and individuals as stated in the consolidated financial statements as of December 31, 2015 are carried out at arm's lengths. As of September 30, 2016 there have been no material changes.
The shares of KTM Industries AG are currently listed in the Regulated Market (Amtlicher Handel) (segment prime market) of the Vienna Stock Exchange (ISIN AT0000820659). The company intends a further listing of its issued shares at the Stock Exchange in Zürich, Switzerland (SIX Swiss Exchange). The respective preparation activities in accordance with the capital market requirements are currently being undertaken. The shares of KTM Industries AG are expected to be listed on November 14, 2016 on the SIX Swiss Exchange.
Further events after September 30, 2016 that are material for the valuation of assets and liabilities were either taken into account in the present interim financial statements or are unknown.
We confirm to the best of our knowledge that the condensed consolidated interim financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the KTM Industries Group as required by the applicable accounting standards and that the interim consolidated management report gives a true and fair view of important events that have occurred during the first nine months of the business year and their impact on the condensed consolidated interim financial statements, of the principal risks and uncertainties for the remaining three months of the business year and of the major related party transactions to be disclosed.
Wels, on November 11, 2016
Stefan Pierer, CEO Friedrich Roithner, CFO Alfred Hörtenhuber Wolfgang Plasser
| January 27, 2017 | Announcement of preliminary annual results 2016 |
|---|---|
| March 21, 2017 | Publication of annual financial statements 2016 |
| April 17, 2017 | Record date annual general meeting |
| April 27, 2017 | 20th annual general meeting |
| May 2, 2017 | Ex-dividend day |
| May 3, 2017 | Record date dividends |
| May 4, 2017 | Dividend payment day |
| May 9, 2017 | Report on the 1st quarter 2017 |
| August 29, 2017 | Report on the 1st half year 2017 |
| November 14, 2017 | Report on the 3rd quarter 2017 |
Michaela Friepeß KTM Industries AG 4600 Wels, Edisonstraße 1 Phone: +43 7242 69402 e-mail: [email protected] Internet: www.ktm-industries.com
| ISIN: | AT0000820659 |
|---|---|
| Wiener Börse: | KTMI |
| Reuters: | KTMI:VI |
| Bloomberg: | KTMI:AV |
| Class of share: | No-par-value ordinary bearer shares |
Owner and publisher KTM Industries AG Edisonstraße 1 4600 Wels, Austria FN 78112 x / Landes- und Handelsgericht Wels
Graphic realization: Grafik-Buero Elena Gratzer, 4600 Wels
While every care was taken in compiling this financial report and checking that the date it contains is correct, slight differences in totals from adding up rounded amounts and percentages, typographical errors and misprints cannot be excluded.
This 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. We wish to point out, however, that various factors may cause the actual results to deviate from forward-looking statements given in the report.
Edisonstraße 1, 4600 Wels Telefon: +43 (0)7242 / 69402 Fax: +43 (0)7242 / 69402 / 109 [email protected] www.ktm-industries.com
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