EANS-Adhoc: KTM Power Sports AG / Restructuring Completed in Fiscal Year 2008-09 - Capacities Adjusted to Future Market Environment

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annual report

19.11.2009

Fiscal 2008-09
>> Turnover: EUR 454.6 million
>> Vehicle sales: 64,080
>> Earnings after restructuring costs: EUR -81.4 million
>> Equity ratio: 27.8%
>> Positive operating result expected in fiscal 2009-10

Tough restructuring completed in fiscal year 2008-09 The past fiscal
year proved to be the most difficult in KTM's recent history.
However, KTM responded with strong restructuring measures. In fact,
one-off restructuring costs account for 80% of the negative EBIT.
Despite the slump in the markets, above all in North America and
Europe, KTM succeeded in maintaining its market position and
increasing market shares.

Capacities adjusted to future market environment Capacities and
overheads have been realigned to the reduced market level. In the
past fiscal year, KTM had to axe over 450 jobs and used the existing
short time working schemes in the period from May through September.

X-Bow to remain in KTM product portfolio, investment completely
written down Due to the economic crisis, the original business model
of X-Bow serial production was no longer feasible. Marketing and
sales activities are now therefore integrated in the Mattighofen
plant. KTM has written down all the serial production development
costs and production tools totaling EUR 33.1 million. In X-Bow
production, KTM has opted for a model often used in the high-end
sports car sector, namely manufacture to order and customization on
request. This has resulted in a shift from serial production to
building cars to each individual customer's specifications.

Outlook: positive operating result in fiscal year 2009-10 KTM is
still expecting the motorcycle market in general to decline in the
2009-10 fiscal year. Thanks to new product developments, particularly
in the profitable core segment of off-road competition, a slight
increase in sales can however be anticipated. A completely new
motocross generation will be rolled out at the end of the 2009-10
fiscal year. The new street models from the cooperation with Bajaj
Auto Ltd. were presented to the public at the beginning of November.
Given the cost cutting and optimization program, the Management Board
is expecting a positive operating result and a substantial
improvement in free cash flow.

The 2008-09 annual report, 2008-09 financial statements and 2008-09
corporate governance report are available for downloading on our
website at www.ktm.com under Investor Relations > Investor Relations
> Reports.

end of announcement euro adhoc
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ots Originaltext: Cross Holding AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

KTM Power Sports AG

Mag. Wilfried Stock

Tel.: +43(0)7742/6000-216

mailto:wilfried.stock@ktm.com

Branche: Technology
ISIN: AT0000645403
WKN:
Index: mid market
Börsen: Wien / official market