INTERIM FINANCIAL STATEMENTS 1 st HY 2012

Transcription

1 INTERIM FINANCIAL STATEMENTS 1 st HY 2012

2 CONTENT Condensed Group Management Report 1 st HY KTM Share...5 Condensed Consolidated Interim Financial Statements 1 st HY Condensed Notes to the Interim Financial Statements 1 st HY Statement by the Authorized Representatives...14

3 CONDENSED GROUP MANAGEMENT REPORT 1 st HY 2012 Business development In the first half of 2012 KTM managed to increase turnover by EUR 32.3 million to EUR million compared to previous year and sales to 45,400 vehicles (+23.2 % compared to previous year). Including the Duke 200 units sold by our partner Bajaj in India for the first time, KTM achieved record sales of 50,233 motorcycles (+36.5 % compared to previous year) sold worldwide in the first half of With the sales agreement of December 22 nd, 2011 effective January 1 st, 2012 KTM-Sportmotorcycle AG sold the branch companies for exhaust pipe manufacturing and frame production to WP Components GmbH (former: WP Radiator GmbH) and WP Performance Systems GmbH (former: WP Suspension Austria GmbH). Consequently the KTM staff was reduced by 186 employees. The 24 th Ordinary General Meeting on April 20 th, 2012 passed among others the resolution to change the company name of KTM Power Sports AG to. With the short and concise company name the focus on the brand KTM is increased. The new company name was registered in the commercial register on May 4th, Market trend Compared to previous year, the overall European market 1 dropped by 12.8 % to 276,478 vehicles registered in the first half of The decrease is primarily related to the downward trend in the largest European markets such as Italy (-30.3 %), Spain (-29.9 %), and France (-8.7 %). For the first time KTM s European market share increased to 7.0 % which is a 40.9 % increase compared to previous year. In the overall US market 2, registrations in the first half year 2012 slightly increased by 1.2 % compared to previous year to 224,167 vehicles. KTM succeeded in increasing its share in the overall US market by 0.6 percentage points to 3.1 %. Sales per unit trend In the first half of 2012 we sold 43,158 Fullsize 3 motorcycles (+9,114 motorcycles compared to previous year) out of which 21,563 motorcycles (+1,919 motorcycles compared to previous year) were sold in the offroad segment and 21,595 motorcycles (+7,195 motorcycles compared to previous year) in the street segment. Sales in the sportminicycle segment decreased to motorcycles (-507 units compared to last year). In the first half of 2012 we sold 303 ATVs (-72 ATVs compared to last year) and 54 X-Bows (+25 X- Bows compared to previous year). By region, sales in North America (USA and Canada) our largest single market increased to 8,535 vehicles (+3,263 vehicles compared to prior year). 1 Motorcycles >120 ccm, excluding Motocross, Scooters and ATVs 2 Motorcycles >120 ccm, including Motocross, excluding Scooters and ATVs 3 Motorcycles >120 ccm

4 Revenue trend Due to a higher demand for Enduro 2-stroke models (+2,088 motorcycles compared to previous year) sales in the offroad segment increased to EUR million (+13.5 % compared to previous year). Sales of sportminicycles decreased to EUR 4.9 million (-24.1 % compared to previous year). Sales in the street segment increased to EUR million (+20.9 % compared to previous year) especially due to the successful sale of the Duke 125 and Duke 200 developed in cooperation with Bajaj (+4,099 motorcycles in the first half of 2012) and the successful launch of the Duke 690 (+3,366 motorcycles in the first half of 2012). Sales of ATVs dropped to EUR 1.7 million (-19.1 % compared to previous year) and sales in the segment Related Products remained stable by EUR 51.6 million (-1.7 % compared to previous year). By region, sales in Europe increased slightly to EUR million (+1.6 % compared to previous year). In the US sales increased to EUR 62.1 million (+68.9 % compared to previous year). In the rest of the world sales increased by 9.3 % to EUR 45.0 million due to higher sales in Asia, Australia and Africa. Outlook Due to the Euro crisis the declining development on the European market is expected to continue. In contrast, the US market shows a stable respectively slightly positive development. By launching new models KTM consequently follows a global product strategy and expansion into Asian markets. Under these circumstances KTM expects further increases in sales and turnover for 2012.

5 KTM SHARE The KTM share developed positive in the first half year 2012 closing at EUR on the last trading day (June 29 th, 2012). Compared to previous year the market price rose from EUR (June 29 th, 2011) by 4.26 %. The highest closing price in a period of twelve months was EUR 44.00; the lowest closing price was EUR As of June 30 th, 2012 the market capitalization for 10,845,000 shares admitted for trading amounted to EUR million. Shareholder structure by shareholder rights (by share capital) Number of shares: 10,845,000 Freefloat and others < 2 % Bajaj Auto Ltd % CROSS Industries AG 51.6%

6 Contact Viktor Sigl, MBA Betriebsgebiet Süd Stallhofnerstraße Mattighofen Tel.: ir@ktm.com Website:

7 CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS 1 st HY 2012

8 CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS 1 st HY 2012

9 CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS 1 st HY 2012

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11 CONDENSED NOTES TO THE INTERIM FINANCIAL STATEMENTS 1 st HY 2012 Accounting Principles The Interim Financial Statements of (former: KTM Power Sports AG) as of June 30 th, 2012 were prepared in accordance with the International Financial Reporting Standards (IFRS) as adopted by the EU considering IAS 34 Interim Financial Reporting. The Interim Financial Statements were neither audited nor reviewed by a certified public accountant. The accounting and valuation methods used for the Consolidated Financial Statements as of December 31 st, 2011 were applied unchanged. For further information regarding the accounting and valuation methods please see the Notes to the Consolidated Financial Statements for the reporting period ended December 31 st, The accounting and valuation methods applied therein constitute the basis for the present Interim Financial Statements. The accounting principles of the companies included in the condensed Consolidated Financial Statements are based on standard accounting principles. These principles were fully applied by all consolidated companies. Consolidation Scope All key subsidiaries that are under the legal or constructive control of are included in the present Interim Financial Statements. In addition to the parent company, 14 companies, of which nine are foreign and five Austrian, have been fully consolidated as of June 30 th, In June 2012 the newly founded company KTM-Sportmotorcycle India Private Limited, Pune, India, was consolidated for the first time. The company s main business is quality control of motorcycles produced in India. The negative goodwill in the amount of TEUR 13 is reported as other operating income in the Consolidated Income Statement. Estimates To a certain extent, estimates and assumptions have to be made in the Consolidated Financial Statements. These estimates have an impact on assets and liabilities, the disclosure of contingent liabilities at the balance sheet date and the expenses and income in the reporting period. The subsequent actual amounts may then differ from such estimates. Seasonality The KTM group s sales are subject to seasonality and thus sales are more likely to be lower in the first and last quarter than in the middle of the business year.

12 Notes to the Consolidated Income Statement In the first half of 2012 the gross operating profit rose by 6.0 % to EUR 77.5 million compared to previous year due to an increased business volume resulting in a gross margin ratio of 26.2 %. Overhead costs increased from EUR million in the previous year to EUR million (+13.6 % compared to previous year). Earnings before interest and taxes (EBIT) decreased from EUR 13.5 million to EUR 9.8 million. The financial result improved slightly by EUR 0.1 million to EUR -5.3 million. Net income decreased from EUR 7.9 million in the previous year to EUR 3.8 million. Notes to the Consolidated Statement of Comprehensive Income The cash flow hedge reserve reduced the group s equity by EUR 0.4 million net. Net income increased the group s equity in the first six months by EUR 3.8 million. The comprehensive income after taxes resulted in an increase of the group s equity by EUR 2.5 million. Notes to the Condensed Consolidated Balance Sheet Compared to December 31 st, 2011 total assets increased by 7.0 % from EUR million to EUR million. Trade accounts receivable increased by EUR 29.6 million to EUR 79.5 million; taking into account the receivables sold by the end of the first half year 2012 in the framework of the ABS transaction, the increase amounts to EUR 29.5 million. Inventories decreased by EUR 15.9 million to EUR 98.1 million compared to December 31 st, Other current assets increased by EUR 4.7 million to EUR 14.5 million, due to higher accounts receivables from taxes. Funding The net debt decreased by EUR 0.3 million to EUR million in the first half of The gearing ratio is 54.2 % (56.9 % as of December 31 st, 2011). By the end of April 2012 a EUR 85.0 million bond with a 5 year term was issued successfully. Due to the high demand the originally planned volume of EUR 75.0 million was increased by EUR 10.0 million to EUR 85.0 million. The bond is listed for trading on the Regulated Market of the Vienna Stock Exchange in a denomination of EUR and an interest rate of %. The proceeds were used exclusively for the partial early repayment of bank loans granted to group companies in In combination with the capital increase in the amount of EUR 8.4 million a solid long-term recapitalization could be assured for the next five years. Notes to the Consolidated Cash Flow Statement Compared to the previous year the free cash flow decreased from EUR 14.0 million to EUR -7.9 million. This development can be primarily attributed to higher investments and lower payables.

13 Notes to the Condensed Consolidated Statement of Changes in Equity Equity increased from EUR million to EUR million. In accordance with the Management Board resolution of May 11 th, 2012 under partial utilization of the authorization according to article 4.4. of the Articles of Association the share capital was increased against contribution in kind by TEUR 336 to TEUR according to article 150 para 1 of the Austrian Public Companies Act (AktG) by issuing 336,000 new bearer shares at a nominal value of EUR 1.00 each and an issuing price of EUR per share. The shares issued are qualifying shares from January 1 st, The shareholders legal subscription rights were eliminated according to article 170 para 2 of the Austrian Public Companies Act (AktG). CROSS Industries AG took over all new shares contributing its claim to at a nominal value of EUR 8.4 million. The capital increase was registered on June 6 th, Related Parties Transactions All products and services rendered and received from related companies and individuals as stated in the Consolidated Financial Statements as of December 31 st, 2011 are carried out at arm s lengths. In the first half of 2012 there have been no material changes. Events after June 30 th, 2012 There have been no reportable events after June 30 th, 2012.

14 Statement by the Authorized Representatives We, the management board of, confirm to the best of our knowledge that the condensed interim financial statements for the first six months of 2012 give a true and fair view of the assets, liabilities, financial position and profit or loss of the group as required by the applicable accounting standards and that the group management report gives a true and fair view of important events that have occurred during the first six months of the financial year and their impact on the condensed interim financial statements, of the principal risks and uncertainties for the remaining six months of the financial year and of the major related party transactions to be disclosed. The Management Board of August 2012 Stefan Pierer, CEO Harald Plöckinger, Board Member Friedrich Roithner, Board Member Viktor Sigl, MBA, Board Member Hubert Trunkenpolz, Board Member Press date: August 28 th, 2012 While every care was taken in compiling this report and checking that the data 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 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 the forward-looking statements given in the report.