Bajaj Mobility Ag · SIX:BMAG

Bajaj Mobility — PIERER Mobility — H1 2021 Earnings Presentation

47 slides from Bajaj Mobility's earnings presentation, Aug 31, 2021

  1. Slide 1: PIERER Mobility AG Company Presentation Half Year 2021

    PIERER MOBILITY AG THE LEADING EUROPEAN POWERED TWO-WHEELER COMPANY. COMPANY PRESENTATION | HALF YEAR 2021

  2. Slide 2: Disclaimer

    D IS C L A IME R This document is for information purposes only and shall not be treated as giving any investment advice and/or recommendation whatsoever. This presentation and any information (written or oral) provided to you does not constitute an offer of securities, nor a solicitation for an off

  3. Slide 3: Table of Content

    TABL E OF CON T EN T FIRST HALF YEAR 2021 04 Business Highlights 04 Motorcycle Business 06 Bicycle Business 11 Financials 14 OUTLOOK SECOND HALF YEAR 2021 18 Financial Guidance 18 Strategic Initiatives 19 Investments in Electric Mobility 21 T h e E l e c t r i c P o w e r e d Tw o - W h e e l e r V

  4. Slide 4: Business Highlights

    B U S IN E S S H IGH L IGH T S FIRST HALF YEAR 2021 . H I G H E S T R E S U LT S E V E R : THE BUSINESS DOUBLED VS. H1 2020  MOTORCYCLES SALES: Extremely strong global growth & market share gains 176,045 units sold (+95% vs. H1 2020)  BICYCLE SALES: High-performing E-Bike business 53,378 E-Bikes a

  5. Slide 5: Twenty-Eight Years of Successful Track Record

    T WE N T Y-E IGH T Y E A R S OF S U C C E SS F UL T R A C K R E C OR D POWERED TWO-WHEELERS (PTW) UNIT SALES ~400k Motorcycle Guidance since 2018 400 000 Sales units CAGR incl. Bajaj 92-20: ~15.3% 350 000 Units KTM Sales units CAGR incl. Bajaj 09-20: ~15.9%  215,646 PTWs sold in first half Units HQ

  6. Slide 6: Motorcycle Business: Relevant Market Registrations

    MOTOR C Y C L E B U S IN E S S F I R S T H A L F Y E A R 2 0 2 1 – R E L E VA N T M A R K E T R E G I S T R AT I O N S > 1 2 0 C C NORTH AMERICA EUROPE 285,000 REGISTRATIONS +16% dif. to PY 427,000 REGISTRATIONS . +25% dif. to PY 32,100 (+20%) KTM, HQV, GG 48,300 (+21%) KTM, HQV, GG AR/BR/CO CHINA 6

  7. Slide 7: Motorcycle Business: Retails by Region

    MOTOR C Y C L E B U S IN E S S F I R S T H A L F Y E A R 2 0 2 1 – R E TA I L S B Y R E G I O N H1 2021 COMPARED TO H1 2020 EUROPE 59,296 +17% (+8,809) NORTH AMERICA 38,088 +15% (+5,092) LATAM 13,990 +85% (+6,445) AFRICA/MIDDLE EAST 2,164 +19% (+338) ASIA 10,379 +52% (+3,542) 160,723 AUS/NZ 7,854 +1

  8. Slide 8: Motorcycle Business: Global Market Development

    MOTOR C Y C L E B U S IN E S S FIRST HALF YEAR 2021 – GLOBAL MARKET DEVELOPMENT 900 000 15% Registrations MARKET SHARE KTM AG US R12 EUROPE: 12.7% 13% S T R O N G A N D S U S TA I N A B L E 800 000 REBOUND OF US POWERED TWO-WHEELER MARKET 11% 700 000 Registrations MARKET SHARE KTM AG US: 11.7% EUROP

  9. Slide 9: Motorcycle Business: Wholesales by Regions

    MOTOR C Y C L E B U S IN E S S FIRST HALF YEAR 2021 – WHOLESALES BY REGIONS H1 2021 COMPARED TO H1 2020 EUROPE 71,910 +75% (+30,865) NORTH AMERICA 30,419 +160% (+18,736) LATAM 18,483 +300% (+13,862) AFRICA/MIDDLE EAST 1,519 +68% (+614) ASIA 15,281 +173% (+9,683) 176,045 AUS/NZ 7,872 +25% (+1,553) WH

  10. Slide 10: Motorcycle Business First Half Year 2021

    MOTOR C Y C L E B U S IN E S S FIRST HALF YEAR 2021 H1 2021 H1 2020 H1 2019 WHOLESALES 176,045 (+95%) 90,331 135,719 RETAILS 160,723 (+26%) 127,796 133,469 PG&A REVENUE (k€) 157,483 (+34%) 112,010 121,466 Source: PIERER Mobility AG Wholesale and PG&A (B2B): Sale to Dealer Network reflected in P&L 10

  11. Slide 11: Bicycle Business

    B IC Y C L E B U S IN E S S FIRST HALF YEAR 2021 H1 2021 H1 2020 HUSQVARNA 15,732 (+7%) 14,636 GASGAS 2,245 (- %) 0 R RAYMON 34,637 (+24%) 27,999 BIKES&WHEELS STORES 764 (+156%) 298 Ʃ UNIT WHOLESALES 53,378 (+25%) 42,843 E-BIKES 39,601 (+15%) 34,351 BICYCLES 13,777 (+62%) 8,492 REVENUES (k€) 83,645

  12. Slide 12: Bicycle Business: Wholesales by Regions

    B IC Y C L E B U S IN E S S FIRST HALF YEAR 2021 – WHOLESALES BY REGIONS H1 2021 COMPARED TO H1 2020 DACH 40,273 +7% (+2,739) EUROPE REST 12,701 +151% (+7,636) REST OF THE WORLD 404 +66% (+160) 53,378 WHOLESALES +25% (+10,535) Source: PIERER Mobility AG | DACH = Germany, Austria and Switzerland 12

  13. Slide 13: Global E-Bike Market Potential

    GL OB A L E -B IK E MA R K E T P OT E N T IA L 2 0 2 5 M A R K E T V O L U M E L E AV E S S I G N I F I C A N T R O O M F O R G R O W T H Sales H1 2021: EUROPE  39,601 E-Bikes (H1 2020: 34,351) Market volume 2020: ~4,500,000 units 2021 Key activities: EST. MARKET BY 2025: ~6,000,000 UNITS  Pan-Eur

  14. Slide 14: Financials: Consolidated Profit & Loss

    F IN A N C IA L S C O N S O L I D AT E D P R O F I T & L O S S F I G U R E S U N D E R I F R S in EURm H1 2020 H1 2021 ∆ 2020/21 Revenues 600.0 1,078.0 +79.7% 1 1  Sales of 215,646 motorcycles and E-Bikes (+73%)  Despite ongoing challenges in the supply chains, revenues EBITDA 61.6 171.2 > 100% 2

  15. Slide 15: Financials: Business Segments under IFRS

    F IN A N C IA L S BUSINESS SEGMENTS UNDER IFRS MOTOR- in EURm GROUP CYCLES E-BIKES OTHERS Revenues 1,078.0 992.4 83.6 2.0 1 1  Sales of 176,045 KTM, Husqvarna and GASGAS motorcycles (+95%) and 39,601 Husqvarna and EBITDA 171.2 165.1 7.3 -1.2 2 R Raymon E-Bikes (+15%)  Motorcycle business segment i

  16. Slide 16: Financials: Consolidated Balance Sheet and Cash Flow

    F IN A N C IA L S C O N S O L I D AT E D B A L A N C E S H E E T A N D C A S H F L O W F I G U R E S U N D E R I F R S in EURm 12/31/2020 6/30/2021 ∆ 2020/21 1  Growth-related increase in trade receivables Balance sheet total 1,686.0 1,937.3 +14.9% 1  Liquidity strengthening Equity 654.1 725.5 +10

  17. Slide 17: Free Cash Flow and Net Debt Analysis

    F IN A N C IA L S F R E E C A S H F L O W A N D N E T D E B T A N A LY S I S in EURm H1 2020 H1 2021 ∆ 2020/21 EBITDA 61.6 171.2 109.6 Net debt Net debt 12/31/2020 06/30/2021 (+) Interest receipts and (-) payments -8.3 -5.7 2.6 (-) Taxes 0.0 -5.7 -5.7 (+) Non cash expenses and (-) income -28.2 1.6 2

  18. Slide 18: Financial Guidance

    F IN A N C IA L GU ID A N C E 202 1 FINANCIAL OUTLOOK GUIDANCE KEY FIGURES KEY FIGURES 2021 2020 2019 Revenues 1,900 – 2,000 1,530.4 1520.1 in m€ EBIT margin 8 – 9% 7.0% 8.7% EBITDA margin >15% 15.3% 15.8% Source: PIERER Mobility AG Previous BY 2021 revenues guidance announced in April 2021: EUR 1,8

  19. Slide 19: Simplification of the Shareholding Structure with Bajaj Started

    SIMPLIFICATION OF THE SHAREHOLDING STRUCTURE WITH BAJAJ STARTED SECOND HALF YEAR 2021  Contribution of the Bajaj shares of 46.5% in KTM AG to PIERER Mobility AG  Capital increase through contribution in kind from the existing authorized capital of the company under exclusion of subscription rights

  20. Slide 20: Joint Venture with Maxcom in Bulgaria

    JOIN T V E N T U R E W IT H MA X C OM IN B U L GA R IA SECOND HALF YEAR 2021  Both partners hold a 50% interest  Investment volume 40 m€  Our goal: expansion of the bicycle and E-Bike production capacity in Europe  Production facility on an area of 130,000 m²  Annual production capacity around

  21. Slide 21: Investments in Electric Mobility

    IN V E S T ME N T S IN E L E C T R IC MOB IL IT Y NEW E-MOBILITY RESEARCH & DEVELOPMENT CENTER ( A N I F, A U S T R I A )  7,780 m² floor space  150 employees  Implemented right next to KISKA design studio 20 MIO. € INVESTMENT Source: PIERER Mobility AG 21

  22. Slide 22: The Electric Powered Two-Wheeler Vision

    T H E E L E C T R IC P OW E R E D T WO-WH E E L E R V IS ION BECOME THE GLOBAL LEADER OF ELECTRIC POWERED TWO-WHEELERS IN THE POWER RANGE 250W TO 11KW Source: PIERER Mobility AG 22

  23. Slide 23: PIERER Mobility AG at a Glimpse

    P IE R E R MOB ILIT Y A G AT A GLIMP S E 23

  24. Slide 24: The Leading European Powered Two-Wheeler Group

    THE LEADING EUROPEAN POWERED TWO-WHEELER GROUP 3 P I L L A R S O F VA L U E C R E AT I O N KTM AG DESIGN, CONCEPT DEVELOPMENT & E-BIKES DIGITALIZATION Source: PIERER Mobility AG 24

  25. Slide 25: Cooperation with Bajaj

    C OOP E R AT ION WIT H KEY MILESTONE: 850,000 UNITS PRODUCED I N I N D I A S I N C E 2 0 11  Development of a common 48-volt electric two-wheeler platform for planned serial production in India in 2022  Ongoing production of Husqvarna model line 125cc to 401cc  Ongoing production of KTM model lin

  26. Slide 26: Joint Venture with CFMOTO

    JOIN T V E N T U R E W IT H THE HIGH-END CHINESE MOTORCYCLE MARKET GREW BY 85% IN H1 2021 VS. 2020  CFMOTO is sole distributor for KTM in China  Production capacity of around 50k motorcycles  Sales H1 2021: 5,374 units (vs. H1 2020: 2,278 units)  Started production of twin-cylinder platform in Q

  27. Slide 27: Global Motorcycle Production Facilities

    GL OB A L MOTOR C Y C L E P R OD U C T ION FA C IL IT IE S FIRST HALF YEAR 2021 SPAIN Girona AUSTRIA Mattighofen (HQ) PRODUCTION SITES 2,163 UNITS 85,315 UNITS  3 production sites  5 CKD/CBU facilities CKD/CBU PRODUCTION CHINA Hangzhou (CFMOTO)  125/200/250/390/790 DUKE COLOMBIA (JV – CBU/CKD) 

  28. Slide 28: Business Growth Driver: Dealers & Showrooms

    B U S IN E S S GR OWT H D R IV E R – D E A L E R S & S H OWR OOMS MORE THAN 4,100 MOTORCYCLE DEALERS & 1,400 BICYCLE DEALERS 4 , 11 0 M O T O R C Y C L E D E A L E R S 1,446 BICYCLE DEALERS  more than 300 dual brand dealers  1,185 independent bicycle dealers  Europe: ~1,500 Dealers  261 motorcyc

  29. Slide 29: Development of Employees

    D E V E L OP ME N T OF E MP L OY E E S AS OF 30.06.2021 K E Y FA C T S  4,888 employees, incl. around 200 apprentices  Increase by 559 staff in H1 2021 (compared to H1 2020)  High-quality approach in Apprentice Training – Investment of 2.5 m€ in our training workshop  37 years average age, ~24%

  30. Slide 30: Sustainability Activities (1/2)

    S U S TA IN A B IL IT Y A C T IV IT IE S (1 /2 ) MAIN TOPICS AND CURRENT MEASURES  Reporting in accordance with “GRI Standards”: “Core” option, achieved for the first time  External assurance for the first time (conformity with the International Standard on Assurance Engagements ISAE 3000)  Ident

  31. Slide 31: Sustainability Activities (2/2)

    S U S TA IN A B IL IT Y A C T IV IT IE S (2 /2 ) MAIN TOPICS AND CURRENT MEASURES  Successful series transition to the new Euro 5 emissions standard  Construction of a photovoltaic system on the roof of the KTM logistics center (electricity for the public grid, total area 40,000 m², in 2021 commis

  32. Slide 32: Management Team & Contact Details

    MA N A GE ME N T T E A M & C ON TA C T D E TA IL S PIERER MOBILITY AG C O N TA C T D E TA I L S Stefan Pierer PIERER Mobility AG CEO Edisonstrasse 1 4600 Wels Friedrich Roithner Austria CFO www.pierermobility.com Hubert Trunkenpolz Member of the Executive Board Michaela Friepess, IR E-Mail: ir@piere

  33. Slide 33: Appendix

    PIERER [ituunacan APPENDIX

  34. Slide 34: Simplified Group Structure as of 30.06.2021

    T H E L E A D IN G E U R OP E A N P OWE R E D T WO-WH E E L E R GR OU P SIMPLIFIED GROUP STRUCTURE AS OF 30.06.2021 Other shareholdings: ACstyria Mobilitätscluster GmbH 12.3%; Platin 1483. GmbH 100% Source: PIERER Mobility AG | DC.DIGITAL already increased to 75.5% 34

  35. Slide 35: Our Brands Provide Customers the Power of Choice

    OU R B R A N DS P R OV ID E C U S TOME R S T H E P OWE R OF C H OIC E P I E R E R M O B I L I T Y C O V E R S T H E E N T I R E VA L U E C H A I N O F P T W E N T H U S I A S T S PURITY | PERFORMANCE READY TO RACE ADVENTURE | EXTREME SMART | PROGRESSIVE DYNAMIC | PURE DESIGN DARING | CAPABLE VIBRANT

  36. Slide 36: KTM Product Portfolio

    K T M P R OD U C T P OR T F OL IO 136,950 UNITS IN H1 2021 36

  37. Slide 37: Husqvarna Motorcycle Product Portfolio

    H U S QVA R N A MOTOR C Y C L E P R OD U C T P OR T F OL IO 30,589 UNITS IN H1 2021 37

  38. Slide 38: GASGAS Motorcycle Product Portfolio

    GA S GA S MOTOR C Y C L E P R OD U C T P OR T F OL IO 8,506 UNITS IN H1 2021 38

  39. Slide 39: Market and Competitive Environment 2021

    MA R K E T A N D C OMP E T IT IV E E N V IR ON ME N T 0 6 /2 0 2 1 (C U MU L AT E D ) P O S I T I O N I N G ( M C > = 1 2 0 C C W I T H O U T AT V S A N D S C O O T E R S ) BRAND PERFORMANCE R E L AT I V E M A R K E T P O S I T I O N A N D M O M E N T U M PERFORMANCE RANKING BY BRAND UNITS RANKING B

  40. Slide 40: Registrations June Cumulated

    R E GIS T R AT ION S JU N E C TOTAL REGISTRATIONS KTM AG REGISTRATIONS KTM AG MARKET SHARE 2020 2021 Diff. to PY 2020 2021 Diff. to PY 2020 2021 DE 82,879 87,306 5.3% 12,572 12,808 1.9% 15.2% 14.7% FR 62,586 80,134 28.0% 5,257 7,235 37.6% 8.4% 9.0% IT 48,305 73,978 53.1% 4,141 6,227 50.4% 8.6% 8.4%

  41. Slide 41: Electrification of Urban Mobility

    E L E C T R IF IC AT ION OF U R B A N MOB IL IT Y SHORT DISTANCE MOBILITY D I S T R I B U T I O N O F PA S S E N G E R - K I L O M E T E R S T R AV E L E D I N M U N I C H SHARE IS FORECASTED TO GROW FROM 5-10% TO Shared & private short ~5-10 ~20-30 distance mobility 20-30% BY 2030 IN URBAN (incl. E

  42. Slide 42: Electrification: Offroad & Urban E-Mobility

    E L E C T R IF IC AT ION – OF F R OA D & U R B A N E -MOB IL IT Y N E W E - M O B I L I T Y S T R AT E G Y S E R V E S A L L C U S T O M E R G R O U P S W I T H L E A D I N G E L E C T R I C MARKET SHARE ELECTRIC MOTORBIKES ELECTRIC BICYCLES  KTM is the pioneer in the industry with the only success

  43. Slide 43: Sustainability at the Center

    S U S TA IN A B IL IT Y AT T H E C E N T E R WITH OUR BUSINESS ACTIVITIES, WE CONTRIBUTE TO THE ACHIEVEMENT OF THE GLOBAL S U S TA I N A B L E D E V E L O P M E N T G O A L S . RELIABLE EMPLOYER S U S TA I N A B L E M O B I L I T Y E N V I R O N M E N TA L LY FA I R B U S I N E S S P R A C T I C E O

  44. Slide 44: Sustainability Highlights

    S U S TA IN A B IL IT Y H IGH L IGH T S 2 02 0 KEY FIGURES 27,225 111 M€ 78.44 -16.7% 9% HOURS OF INVESTED IN G/KM R&D EXPENSES FURTHER EMISSIONS PRODUCT FLEET TRAINING PER VEHICLE FROM REVENUE DEVELOPMENT E M I S S I O N S 1) OF EMPLOYEES IN AUSTRIA DESPITE S O L D 2) COVID-19 COMPLIANCE EMPLOYEES

  45. Slide 45: Electric Powered Two-Wheelers: Legal Classification

    E L E C T R IC P OW E R E D T W O-WH E E L E R S L E G A L C L A S S I F I C AT I O N LOW VOLTAGE (48 Volt) HIGH VOLTAGE Category Electric L1eA L1eC* L1e-B L3e-A1 L3e-A2, L3e-A3 (Technical & Bicycle S-Pedelec S-Pedelec Moped up to 50cc Motorcycle/Scooter Motorcycle/Scooter Performance) up to 125cc M

  46. Slide 46: Safety & Digital Innovation at the Core

    S A F E T Y & D IGITA L IN N OVAT ION AT T H E C OR E F OR S U S TA IN A B L E T W O-W H E E L T R A N S P OR TAT ION SAFETY TECHNOLOGY  Technology will remain a dominant differentiating factor for the foreseeable future  As for cars, the drivetrain Trend and Connectivity in traffic Electronic ass

  47. Slide 47: Data Sources for Motorcycles Market Information

    A P P E N D IX D ATA S O U R C E S F O R M O T O R C Y C L E S M A R K E T I N F O R M AT I O N A N D I N T E L L I G E N C E Sources by market Europe Reported countries: DE, FR, IT, ES, UK, SE, BE, NL, AT, CH, FI, NO, BALTIC Data source: National data providers Motorcycles: >120cc & electric, no MX

PIERER Mobility — H1 2021 Earnings Presentation on 6ix