EANS-Adhoc: KTM Power Sports AG / Strong growth in 1st mid-year

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6-month report

28.07.2011

+++ interim announcement HY1 2011 +++

KTM - Strong growth in 1st mid-year

• Turnover: 263.0 million EUR / +24%
• EBIT: 13.5 million EUR / +18%
• Net profit 7.9 million / + 56%
• Equity ratio increased to 43%
• DUKE 125 #1 in June in Europe

Mattighofen, 28.7.2011

Significant increase in turnover and sales Despite a volatile
motorcycle market in Europe and the USA, KTM managed to increase
turnover to 263.0 million EUR (+24%) and sales to 36,840 motorcycles
(+41%) in the first half of 2011. Mr. Stefan Pierer, Chairman of the
Executive Board of KTM Power Sports AG announced that the market
launch of the Duke 125 and the new Enduro Competition generation
significantly contributed to the satisfactory business performance.

Income development In the first half of 2011 an EBITDA of 30.0
million EUR and an EBIT of 13.5 million EUR were generated. The
income development was supported by an increase in productivity as
well as cost cuts in all areas. Due to the favorable performance as
well as the capital increase, which was completed in 2011, an equity
ratio of almost 43% will be shown as of June 30, 2011.

Successful product launch of the Duke 125 an the Enduro Competition -
increase in capacity in Mattighofen In the first half of 2011 KTM
successfully launched the first model of the street motorcycle Duke
125, which was developed in cooperation with our Indian partner
Bajaj. Since June the Duke 125 has been ranked on #1 in European
registration statistics. In doing so, KTM now reaches its new target
group of young people and beginners.

Moreover, a new model family was launched in the Enduro Competition
segment, the most important product segment of KTM. In this segment
KTM is the global leader with over 30,000 sold motorcycles p.a.

In the first half of 2011 the production capacity at the production
facility in Mattighofen was enlarged by a third production line. The
apprentices´ training shop with almost 80 apprentices was enriched by
the CAD-design engineer training. Hence, 24 apprentices will start
their apprenticeship with KTM in 2011. Further positions, in
particular in the areas of research & development as well as in the
area of distribution will also be filled.

Outlook New projects regarding the so called emerging markets shall
be tackled in cooperation with our Indian partner Bajaj. These
markets shall strengthen the result development in the long term and
contribute to the extension of KTM´s position on the global market.

After signing the cooperation agreement it is planned to implement
the Brazil project in the second half of 2011.

For the current business year KTM is expecting an increase in
turnover and sales despite the challenging market environment
compared to the 12-months reference period of the previous year.
Hence, the debt equity ratio will be further significantly reduced
compared to the previous year.

+++

Further inquiry note:
KTM Power Sports AG
Mag. Viktor Sigl MBA
Tel: +43 7742 6000 144
Mail to: viktor.sigl@ktm.at

end of announcement euro adhoc
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issuer: KTM Power Sports AG
Stallhofnerstraße 3
A-5230 Mattighofen
phone: +43(0)7742/6000-0
FAX: +43(0)7742/6000-5216
mail: ir@ktmpowersports.com
WWW: www.ktm.com
sector: Technology
ISIN: AT0000645403
indexes: mid market
stockmarkets: official market: Wien
language: English