KTM Power Sports AG

euro adhoc: KTM Power Sports AG
Financial Figures/Balance Sheet
US market and economic crisis depress results

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annual report


Fiscal 2007-08 >> Sales: EUR 605.7 million (+7.0% from previous year) >> EBIT: EUR 20.1 million (-49.4% from previous year) >> Equity ratio: 35.2% >> Vehicle sales: 92,385 >> X-Bow start of production, product expansion

Mattighofen, Nov. 13, 2008 - KTM Power Sports AG, Stallhofnerstrasse 3, 5230 Mattighofen, Austria (ISIN 0000645403), one of the world's leading manufacturers of off-road and street motorcycles, ATVs and the X-Bow premium sports car, succeeded in defying the difficult economic situation to increase sales by 7.0% over the previous year to EUR 605.7 million (exchange rate adjusted +10.4%). EBIT was however down 49.4% from the previous year to EUR 20.1 million due the drop in the US dollar exchange rate to 1.60 against the euro.

Growth drivers The higher figures are primarily due to the change in model mix with the focus on the higher selling models in the LC4 and LC8 series, increased turnover in ATVs (+404.4% from the previous year) and improved sales in Related Products.

X-Bow rolls off the assembly line Following the decision to manufacture the premium sports car, the X-Bow, at a separate facility in Graz, production started towards the end of the business year.

Joint project with Bajaj running to schedule Cooperation with Bajaj Auto Ltd. in developing engine and vehicle platforms for new 125 cc and 250 cc street motorcycles is going very well. The first models will be produced at Bajaj in India in 2010 and initially sold through the KTM sales network in Europe and the Bajaj sales network in India. One advantage of the joint project is that the complete vehicles can be purchased in US dollars in India, which will therefore provide a potential natural hedge.

Other events Rajiv Bajaj, managing director of Bajaj Auto Ltd., was elected to the Supervisory Board at the annual general meeting in December 2007. In addition, since signing the cooperation agreement, Bajaj Auto Ltd. has successively acquired shares in KTM Power Sports AG, currently holding 25.86%, and has expressed an interest in increasing to up to 30%.

Outlook As the risk of a recession has become greater, we have to assume that the relevant sales markets for KTM will become smaller. We therefore plan to reduce volume by around 10% for the 2008-09 business year. Given the premium strategy and action taken to optimize capacity utilization, KTM is prepared to cope with sustained difficult market conditions. The successful start of X-Bow production and the anticipated sales revenue from the Sportcar Division will partially compensate for the drop in sales in the Sportmotorcycle Division. Further, the measures we started implementing last year to optimize capacity utilization and increase efficiency will begin to bear fruit in business year 2008-09. We have also hedged the foreign currency exposure to a great extent for the current fiscal year. Above all, the US dollar exposure is secured at worst at an average exchange rate against the euro of 1.42. In view of the action we have taken to optimize operations and the stronger USD/EUR exchange rate compared with the previous business year, we can assume that if the recession is slight, we will be able to marginally increase the operating result despite the planned reduction in volume and achieve break-even free cash flow.


The 2007-08 annual report and annual financial report are available for downloading on our website at www.ktm.com under Investor Relations > Investor Relations > Reports.


EUR million (IFRS)                  2007/08          2006/07        Change
Sales                                          605.7              566.1          7.0%
EBIT                                              20.1                39.8        -49.4%
Equity ratio                                 35.2%              40.5%            -
Earnings per share                        0.88                3.57        -75.4%
EBIT margin                                    3.3%                7.0%
Employees (average)                    1,964              1,778          +186


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ots Originaltext: KTM Power Sports AG
Im Internet recherchierbar: http://www.presseportal.ch

Further inquiry note:
KTM Power Sports AG
Mag. Wilfried Stock
Tel.: +43(0)7742/6000-216

Branche: Technology
ISIN:      AT0000645403
Börsen:  Wiener Börse AG / official dealing

Weitere Meldungen: KTM Power Sports AG

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